“Linas Agro”: Logistics Solves Not Space, but Business Efficiency Challenges
In the agricultural business, logistics has long ceased to be merely a supporting function - it directly determines whether goods reach the customer on time. In March this year, the company Linas Agro, which established operations in the modern logistics park “SIRIN Park Kumpiai,” reports that it has doubled its truck loading speed, along with overall business efficiency, according to a press release.
“Priorities in agricultural logistics have remained unchanged for many years - the most important factor is timely delivery of goods, especially during the season. The nature of the sector is such that peak periods are often concentrated within a short timeframe, when everyone requires logistics services simultaneously. The biggest challenge is managing these flows while maintaining service quality,” says Arūnas Strazdas, Logistics and Infrastructure Director at Linas Agro. According to him, the company has already nearly doubled the speed of vehicle loading and expects to accelerate it even further.
A Strong Location Drives Value
A year ago, Linas Agro operated two central warehouses and was looking for a convenient location that would allow fast access to all clients. Practical considerations were also important - easy access, avoidance of traffic congestion that could disrupt cargo movement.
“When selecting a new warehouse location, the primary factor for us was geography. In addition, we assessed other aspects - compliance of engineering systems, smart building management solutions, the possibility of using green energy, and reducing operating costs,” says A. Strazdas.
Linas Agro also considered alternative options. The so-called 3PL model, where warehousing, transportation, and order fulfillment are outsourced to an external partner, proved to be a more expensive solution.
“Our final decision was driven by the ability to launch operations very quickly. Due to the seasonality of agricultural activities, the warehouse had to be ready by March 1. We started work in early January and completed everything in about a month and a half,” explains A. Strazdas.
“During peak periods, we need to load up to 30 trucks per hour, so all arrivals are scheduled with minute-level precision. Reservation systems are used, and the team prepares for operations even before the vehicles arrive,” he adds.
Additional solutions have also been implemented - for example, vans can be loaded inside the warehouse. Although processes are still being optimized, according to A. Strazdas, the loading pace is already nearly twice as fast as before.
Market Perspective Is Changing
Laurynas Kuzavas, CEO of SIRIN Development, notes that companies choose the Kumpiai logistics park for specific reasons - an uncongested environment, well-developed road infrastructure, and convenient connections in all directions. “SIRIN Park Kumpiai” is located near the Kaunas bypass and the main A1 motorway. An airport is located nearby, and there is easy access to the Klaipėda seaport. These advantages have already been recognized not only by Linas Agro, but also by Venipak Lietuva, Jumbo Transport, and others.
“Companies are increasingly choosing warehousing solutions based on speed, security, and lower investment risk. The market perspective is changing - today, a warehouse is seen as part of the supply chain, a tool for inventory management, and a mechanism that enables businesses to respond to seasonality and fluctuations in demand,” says L. Kuzavas.
According to him, clients today care not only about who builds or manages warehouses, but also whether the infrastructure can adapt to the pace of their business. In 2024, SIRIN Development already built more than 25,000 square meters of warehouse space in Kumpiai, and the site is expected to grow into a 95,000-square-meter logistics park in the future.
“Businesses are no longer looking for square meters - they are looking for flexibility and the assurance that they will be able to expand as they grow. For our part, we can offer a clear development vision - we continue to develop projects using our own funds and can guarantee both speed and quality,” L. Kuzavas emphasizes.
SIRIN Development is the largest developer of logistics real estate in the Baltic States, having already built 11 modern logistics facilities in Kaunas, Vilnius, Riga, and Tallinn. The company currently manages 500,000 square meters of space and aims to expand its portfolio to 1 million square meters across the Baltics by 2030.