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Old Posted Nov 15, 2009, 4:25 AM
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Central & Eastern Europe: the next logistics hotspot?

Central & Eastern Europe: the next logistics hotspot?

A fast-improving transport infrastructure could help the Central and Eastern European region become a hub for the logistics industry.

The logistics industry in Central and Eastern Europe and Russia is set to experience substantial growth over the next five years. Datamonitor predicts that nominal spend on logistics and storage in the region will grow from around €184 billion in 2008 to just under €250 billion by 2012. This will primarily be derived from fast growing domestic country-markets, as well as increasing merchandise exports.

The overall Central and Eastern Europe (CEE) economy is estimated to grow at an average growth rate of five percent during 2007-2012, with strong contribution from the automotive, consumer goods, electronics and machinery, retail and telecom industries. This is also paving the way forward for increased development and outsourcing of contract logistics in the region.

On the whole, CEE has a relatively under-developed transportation network but is attracting increasing amounts of investment flows from the EU, local government and large foreign and domestic private players in the logistics sector. Praveen Ojha, Senior Logistics Analyst with Datamonitor, says: “The lenient tax policies and moves for privatisation have also helped attract a good amount of foreign direct investment funds into the region. With rising private consumption and fast-growing external and internal trade, the CEE region has displayed high-potential for the sustained growth of the transportation and logistics market.”
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