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In Slovenia there are many Forwarding, Logistics and Transport Companies but only a few are adequately prepared for the new market demands that will come with EU accession. Competition between companies is tough, which has led to lower prices for their services. The government is aggravating the situation with an unsuitable approach to the problem of the assignment of international licences for the transport of consignments. Companies In Slovenia the biggest and most ambitious transport and forwarding company is Viator & Vektor Group. In the past two years they have developed a strong group of more than five hundred vehicles and a widespread network of contractors, that places them among the medium-size transport companies in the EU. The Viator & Vektor Group consists of 26 companies, including TIB Postojna, Alpetour Forwarding and Transport Skofja Loka, Transavto Postojna, Integral Lendava and Avtoprevoz Postojna.The Group is becoming one of the most important providersof complete logistics services in Southeastern Europe. More than 2000 employees generated approximately28 billion SIT of revenue. The Viator & Vektor Group is preparing itself intensively for Slovenia's imminent accession into the European Union. There will be no lay offs in the Group but some employees in individual companies have already been redeployed to other posts. Due to accession the Viator & Vektor Group has increased its warehouse area, placed greater importance on the group's traffic activities, and its IT system has also been modernized. Among the key business challenges for 2004 remains the expansion of the logistics network. Within a year the group will need to expand into the new markets of the EU, as Slovene companies move their production. Consequently a special emphasis must be placed on the development of new services to support a complete and expanded logistics service. The situation in the logistics business is very similar for the biggest logistics company Intereuropa Group - Global Logistics Service, the leading logistics provider in Southeastern Europe with 2,498 employees and 365 trucks and other delivery vehicles. Other logistics companies include: Intertrans, Fersped, Eurosped 2001, Kolisped, BTC Logistic Centre, Forwarding Goja and some other foreign forwarders. Advantages And Disadvatages Of EU Accession For Slovenian forwarders the main disadvantages of accession to the EU will be the expected loss of revenue from the customs clearing services as well as increased competition. Whilst the advantages of the new market conditions will be less transport and customs regulations which should have a positive impact on the speed of transportation and a simplification of operations. Readiness For The New Market Demands The large and medium- sized forwarding companies will probably benefit most (or suffer less ) from Slovenia's membership of the EU since they have been preparing for this for several years. The biggest logistics company Intereuropa Group - Global Logistic Service is, in the words of the company's marketing president Robert Pavletic, well prepared for the new challenges. They have sufficient logistics infrastructure, knowledge and experience for further expansion of their logistics network in Southeastern Europe. Intertrans, the second biggest logistics company has reduced its income from customs clearing services to 35 percent and is planning to lower this further by another ten percent. Rok Svetek, President of Intertrans, stated that by putting into place planned measures, such as the training of staff, and the reduction of the workforce by a quarter (approximately 160 employees). Forwarding Goja (82 employees) doesn't seem to be concerned about the demands of the EU market since they began their preparation for entry very early. They are not planning to dismiss more than five employees but hope, in their best case scenario, to employ an additional ten employees. Smaller forwarding companies are in a much more uncertain situation. In order to survive they need to join together and try to compensate for the loss of their income from customs clearing services. According to the Chamber of Commerce and Industry of Slovenia (CCIS), new logistics and transport market demands will, inevitably lead to high unemployment among forwarders. According to a study by the CCIS, after accession to the EU more than 1600 forwarders (around 39 percent of all employees in the forwarding business) are expected to lose their jobs. The estimated unemployment of forwarders will have a strong impact on the national unemployment rate, which will rise by 1.4 percent. For the government and forwarders this will lead to additional costs of 55.2 million Euros. There is not much time left to prevent such pessimistic projections from coming true. So far few of these smaller forwarders and logistics companies have chosen to handle their difficulties together through collaboration and cooperation. Development of FLT companies Directive Two of the main ways in which Slovene Forwarding, Logistics and Transport Companies can enhance growth and the value-added per worker are through the modernization of their logistics capacities and by taking over and acquiring companies in Central and Southeast Europe. In addition FLT companies should also adapt their operations to new market conditions by transforming the existing services of a conventional forwarder into a company that offers a complete range of logisitic services. Finally the development of information technologies is one of the major conditions for the growth of modern companies and FLT companies should focus on the application of advanced information technologies in all operating processes to ensure reliability, speed, safety and an economy of logistic services. In order to deal with the lack of expertise in logistics the University of Maribor will open a Faculty of Logistics in Celje. The Faculty will begin taking students (approximately 220 places will be available) in academic year 2005/06.