Belgium - the European distribution country
Once more, in 2008, Belgium has become the location of choice for investors who wish to reach the main European markets. What are the deciding criteria? The answers are in The European Distribution Report 2008 presented by a representative of Cushman & Wakefield, and commented by the Office of Foreign Investors, the Walloon Export Agency’s Foreign Investments Department.
 |
Jef Van Doorslaer, Associate Cushmann & Wakefield |
The aim of the European Distribution Report 2008 is to identify the best European locations for distribution centres and logistics companies. Belgium has forged ahead of the Netherlands in this domain. Its main assets: accessibility, workforce, low real estate costs and numerous available industrial sites.
A skilled workforce is key
Cushman & Wakefield, the biggest international real estate advisory office for industry, has compiled the European Distribution Report 2008, a macro-economic study based on criteria of choice which are reviewed with each new issue. “The importance of a skilled workforce, for example, has been increased fivefold”, said Jef Van Doorslaer, Associate Head of Research at C&W. “The Walloon region has a relatively high unemployment rate making it an opportunity for investors. In addition, reconversion and job flexibility is good”, he adds. Jean-Pierre Marcelle, Head of American Investment and Marketing at the OFI: “Logistics have arrived just at the right time for Wallonia’s economic redeployment. The sector is increasingly specialised and a Masters in Logistics can now be obtained in several universities.”
“You have to be where your markets are”. In one day Wallonia covers 65% of markets.
“Location is a strategic decision, an investor calculates how many local markets he can reach in one day”, explains Jef Van Doorslaer. Road haulage is still preferred for most freight, even if multi-modal solutions are becoming increasingly developed with water and rail networks being less congested and more ecological. “We have to be realistic, flexibility is crucial, hauliers think in terms of minutes when gauging if their distribution centre is close enough to a motorway network.” The rise in oil prices has had an impact on contract viability for hauliers and further reinforces the importance of proximity.
Belgium is an all out winner when it comes to the cost/benefit ratio
The “Location Comparison Matrix” analyses criteria such as rent, labour costs, traffic density, market sizes for each type of freight, proximity to the markets and population density.
Best European locations for industrial/logistic infrastructure
Country |
Order of precedence 2008 | Score 2008 |
Belgium |
1 |
8,45 |
The Netherlands |
2 |
9,54 |
Hungary |
3 |
9,56 |
The Czech Republic |
4 |
9,57 |
Poland |
5 |
9,76 |
France |
6 |
10,25 |
Austria |
7 |
10,81 |
Germany |
8 |
10,82 |
Slovakia |
9 |
10,85 |
Italy |
10 |
11,37 |
| The United Kingdom | 11 |
12,25 |
Denmark |
12 |
12,31 |
Romania |
13 |
12,49 |
Lithuania |
14 |
12,56 |
Portugal |
15 |
13,11 |
Latvia |
16 |
13,24 |
Spain |
17 |
13,44 |
Estonia |
18 |
13,81 |
Turkey |
19 |
13,91 |
The Ukraine |
20 |
14,44 |
Finland |
21 |
14,93 |
Russia |
22 |
15,27 |
Bulgaria |
23 |
15,7 |
Ireland |
24 |
16,41 |
Sweden |
25 |
16,49 |
“Bierset can easily be reached within the hour whereas for Zaventem there are no guarantees.”
Everywhere in Europe decentralised locations are increasingly favoured by investors. In Belgium the most efficient secondary sites are in Wallonia. Van Doorslaer: “Liege is superbly located from a strategic point of view. In addition to the airport at Bierset, its waterways provide easy, fast access to Antwerp and Rotterdam. In Flanders, both Antwerp and Brussels have to be bypassed with roads to Rotterdam equally congested.”
In Liege, warehouse space costs between 22 and 40 euro/year per square metre, in Antwerp it is between 37 and 47 euro.
In the Provinces of Liege and Hainaut, there are still several thousand hectares of available industrial space: the additional 5.000 hectares recently allocated to industry by the government guarantee a further ten years of development with no risk of saturation.
 |
In Wallonia, we also speak Italian…
Logistics contracts are expanding their services. Call-centres are being set up near city centres and languages are crucially important. Van Doorslaer: “In Liege, we work in an international environment. We not only speak French and Dutch, but also Italian… Families are larger and the population is less threatened by ageing.”
A few big names have changed Wallonia’s image: Johnson & Johnson, H&M, Federal Express, Google…
“Wallonia is a force to be reckoned with. Our rivals have tried to saddle the region with an image of frequent industrial action but that in no way corresponds with the daily reality of the companies who have invested here”, comments Jean-Pierre Marcelle. He adds: “At J&J, management is more than happy with the quality of collaboration.” Van Doorslaer also confides: “I’m very optimistic, I can feel Wallonia’s dynamism: there was a shift in the right direction ten to fifteen years ago.”
“Netherlands, distribution land”, is a renowned slogan but it now belongs to another era. Wallonia has forged ahead. Marcelle: “Let’s take the C&W report, it was issued by the private sector. Thanks to its neutrality and its international view-point, it is a reference for potential investors.” Van Doorslaer adds: “If we take a look at another sector, that of IT, Google has set up in the province of Hainaut. It is a good thing. The company is young, it needs skilled workers, and it is ready to redevelop the region.”
“For every direct job created in logistics, 1.5 indirect jobs are created, either beforehand or afterwards”, analyses Jean-Pierre Marcelle.
Logistics is a sector with a future, and above all a huge employment opportunity for Wallonia. The figures speak for themselves: 1 project in 8 concluded by the OFI concerns this sector, 1 job in 7, 10% of the total sum invested by foreign investors… Logistics generate annex services such as splitting or regrouping goods, transporting them to their end destination… and all the hotel services created in the immediate vicinity of industrial parks.
Distribution of highest rents per sub-market (€/m2/year)
Order of precedence |
Sub-market |
Country |
€/m²/year |
1 |
Londron (Heathrow) |
UK |
165 |
2 |
Dublin |
Ireland |
118 |
3 |
Barcelona |
Spain |
102 |
4 |
Stockholm |
Sweden |
100 |
5 |
Amsterdam (Schiphol) |
The Netherlands |
95 |
6 |
St. Petersburg |
Russia |
94 |
7 |
Riga |
Latvia |
90 |
8 |
Kiev |
The Ukraine |
88 |
9 |
Moscow |
Russia |
87 |
10 |
Madrid |
Spain |
87 |
|
|
|
From 27 to 29/01/2009
Networks as a source of economic development and competitiveness
