Citadele bank granted a loan of €3.8 million to cargoGO Group, which will use the funds for the development of a new driver training centre and providing room and board to the drivers. 1.2 million from the financing provided by the bank will be used for leasing new trucks.
“The logistics sector is one of the pillars supporting the economy of the country. At the same time, it is a very complex business. Therefore, we are happy about cargoGO, which has been successfully dealing with the challenges of this sector for 20 years. I am sure that our financing will provide more opportunities for the company to strengthen its market position and develop the business,” said Vaidas Žagūnis, Member of the Board of Citadele bank and Director of the Business Banking Service.
cargoGO used the loan provided by the bank to purchase the 7,000 m2 premises on Minsko road in Vilnius, where a new training centre will be established and other services provided to drivers: room and board, parking. This will help ensure quality rest and preparation for work for the drivers.
“Although the transaction was concluded before the state of emergency was declared in Lithuania and the world, we are ready for the challenge and implementing this project. We have a highly performing team and clear processes. This allows us to make bold decisions faster and adapt to changes in the market. Just like in many other logistics companies, the majority of our drivers are not residents of Lithuania. Therefore, every week, when sending our drivers out on their routes, we must ensure both that their knowledge and skills are up to date and that they are well-rested and ready for work. Having noticed a direct correlation with the quality of work of the drivers, we decided to take steps to ensure that all necessary conditions are provided to the essential link of our business to do their jobs properly. Experience shows that investment in improving the quality of work of the drivers and ensuring the best working conditions for them pays off. Therefore, I am sure that this decision will help to successfully develop the business. Part of the funding received will be used to upgrade our vehicle fleet in order to optimise costs and use more environmentally-friendly trucks,” said Donatas Butinavičius, CEO of cargoGO Logistics, the largest company in the group.
cargoGO, a group with more than 20 years of experience in the logistics sector, has created more than 750 jobs and holds a fleet of 350 trucks, 200 tent and hard-top trailers and 100 minibuses. The list of customers of cargoGO includes the TOP20 logistics companies of Europe. 99% of orders come from Western Europe. The central office is located in Vilnius. cargoGO also has a local distribution transport centre in Kaunas.
About Citadele Group
The mission of Citadele is modernising the banking sector and providing more opportunities for individuals and businesses in the Baltic states. In addition to traditional banking services, Citadele offers its clients a number of services based on new-generation financial technology, including a modern mobile application, contactless and flash payment, opening an account with a selfie and making payments to a mobile phone number.
Citadele is the third largest bank in Latvia by number of clients and second by number of business clients. Citadele Group is managed from Latvia, while its subsidiaries and branches operate in Latvia, Lithuania and Estonia.
In 2019, Dive, one of the leading customer service assessment and improvement companies in Central and Eastern Europe, recognized that customer service provided by Citadele bank was the best among banks in Latvia and second best in Lithuania.
cargoGO Group is engaged in local and international freight transport by road in Lithuania and also provides parcel delivery services. The history of the Group began in 2000 with a local parcel delivery business and the cargoGO brand appeared on the market in 2006.
High quality standards, excellent customer service, modern technologies, a motivated team and quick problem solving allows the company to ensure quality transport services in Europe, be an attractive employer in the logistics sector and develop under difficult market conditions in Europe.