Romania Ranks Third In Europe’s Best Locations For Logistics Facilities

The overall ranking analyzes the cost/benefit ratio and includes factors such as rents, labor costs, congestion, the size of freight markets by type, proximity to key markets and population densities.

The factors which place Romania in the middle of the hierarchy are low rents and reduced personnel costs. On the other hand, slow pace in developing transport infrastructure network and implicitly the small volume of merchandise transiting the country hinder Romania’s access to a higher position, according to a statement of the Romanian office of Cushman & Wakefield.

In Romania, the number of logistic and storage facilities is estimated to double this year, due to the retail development caused by the increasing number of commercial centers.

“Developing Constanta and the Danube harbors can maintain the rising rhythm of the industrial/logistics market. The Danube is the only transportation route which connects us to Central Europe and which is too little exploited,” said Gabriel Sfetcu, manager of the industrial department of Cushman & Wakefield Activ Consulting.

He added road transport is used for 65% of the merchandise transiting Romania, while only 10% is transported by sea and on rivers. In the last three years, Constanta harbor saw a 277% increase in merchandise volume, the largest in Europe.

"Despite this, Constanta is ranking nearly at the bottom in the hierarchy of the main European harbors,” Sfetcu said.

Three out of Europe’s top five markets with the best location for industrial/logistics facilities are in Central and Eastern Europe.

“It comes as no surprise that the Central and Eastern European countries have risen up the ranking featured in the European Distribution Report. We are seeing these CEE markets steadily mature as distribution hubs and lines are developed to supply the growing local markets as well as business continuing to seek a cheaper cost base,” Ferdinand Hlobil, Head of Industrial for Cushman & Wakefield in Central Europe said.

The top position in this year’s ranking is retained by Belgium. In second place is the Netherlands, followed by Hungary, the Czech Republic and Poland in fifth place, while Romania ranks 13.

The UK, Belgium, the Netherlands, France and Germany, continue to be the focus of economic activity, as well as home to Europe’s key ports and airports for freight, and hence in terms of overall size still dominate the European industrial and logistics market.

The top five prime industrial rents are also all in Western European locations – London (Heathrow), Dublin, Barcelona, Stockholm and Amsterdam.

Romania outranks in opportunities countries such as Portugal, Spain, Turkey, Finland, Russia, Ireland and Bulgaria.

The report also revealed how, across the greater European region, occupiers are showing a preference for locating in regional cities in order to escape problems of land shortages and traffic congestion in the capital cities, as well as being attracted by lower rental levels.

"In Romania we witness the opposite, as the high competition in Bucharest brings about lower prices than in the rest of the country,” Sfetcu said.

The European Distribution Report 2008 includes 25 countries, compared with 15 in previous editions. Most new entries are along Europe’s eastern boundaries.