Serbia is expanding its rail infrastructure. The railway subsidiary DB supports Engineering & Consulting. GTAI spoke with the chairman of the management board Niko Warbanoff.
The railway subsidiary DB Engineering & Consulting plans and implements infrastructure projects worldwide for freight and passenger transport. In Serbia, the company is involved in sections of almost all major rail projects. And also participates in the planning of the first subway in the region, the Belgrade Metro.
Niko Warbanoff is Chairman of the Management Board of DB Engineering & Consulting and CEO of the superior DB E.C.O. Group. Niko Warbanoff is thus responsible for a good 7,000 employees. GTAI spoke with the native of Stuttgart about foreign business and current projects in Serbia.
Mr. Warbanoff, how did the decision to go to Serbia?
Serbia is a central hub for important railway corridors. The traffic axes run through the country in the direction of Istanbul, in the direction of the ports of Thessaloniki and Piraeus as well as to the Adriatic Sea. These are important routes that are also interesting for Deutsche Bahn. The country is currently investing in the modernization and expansion of these routes, Belgrade also in the expansion of public transport. Whenever such corridors are in development, we take a close look at it.
What size are we currently talking about in Serbia?
We are at the start in Serbia with around 50 employees and are taking a good development here. There are some exciting projects, such as the mentioned construction of the Belgrade Metro or the Budapest-Belgrade high-speed line. The order backlog is in the double-digit million range.
Is it decisive for you who finances these projects?
No, for us it is not decisive whether this is a private or state project or whether donor banks are involved. It is important to us that the tenders run cleanly. The procedures in Serbia are now very professional. The degree of professionalization has increased significantly in recent years.
How do you actually find out about the projects? Is it important to have a partner on site?
Absolutely. Local presence is very important. In this way, we can understand the local conditions, but also learn about projects at an early stage. In Serbia, we are also represented with a branch. This gives us an ear to all developments on site, hearing what is currently in the pipeline. Subcontractors can also be an important factor. Often there is a lot of experience and competence locally from which we can benefit. That’s why it’s always very individual decisions about how we deny projects. Sometimes with a subcontractor, sometimes in a project joint venture. This allows us to make the best possible offer.
In the end, this is also a strategic consideration. Example Metro in Belgrade: The first subway project in the Western Balkans has a lot of attention with its effects on integrated traffic in a city of millions. We need a great clout for this project. There we start with Systra, a partner from France. This is how we can bundle our know-how.
What about the competition?
Serbia has strongly promoted competition in infrastructure expansion. This is exactly what we have seen in the rail sector. Once a section went to a Russian provider, then China financed again, then the EU. At the moment, we see this above all as a competition, as a competition for projects – nothing else. How this will develop in the future will become clear. However, it is clear that the global situation of interests does not stop at Serbia either.
DB Engineering & Consulting is internationally active. How do you select the markets?
We operate worldwide, currently in almost 50 countries. In total, however, we have already implemented projects in over 100 countries. For us, first of all, every country that plans sustainable investments in the rail mode of transport is interesting. And then it goes into the details. We do country analyses and check all possible criteria. This includes aspects such as market access, compliance or employee availability, but also details such as taxes or insurance. This is very comprehensive. Of course, we also look at the business potential of the country. If we see long-term opportunities, then we will start in some countries with our own branches.
We know DB mainly from Germany. How important is foreign business for your company at all?
We actually do our main business domestically. The combination with foreign business is exciting for us. Through projects, we have built up branches and established competencies there. We have a design center in Bucharest or also in Bangalore. There we employ highly qualified engineers. They work for projects abroad and also significantly support projects in Germany. Without the foreign projects, this would never have happened.
In addition, we experience a technology transfer through our foreign business. There are projects such as the construction of the Belgrade Metro, in which we provide technology transfer, make our skills and know-how available. But – and this pays off on a strong track in the home market – it also happens the other way around. There are some technological developments that take place outside Germany. There we can learn through our participations and use these impulses in turn in Germany. This is not a one-way street.
Source: Gtai.de
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