Shifting logistical landscape sees Europe tilt to the east

The rise of e-commerce and structural developments in logistics and distribution are moving Europe's centre of gravity from the west to CEE, Colliers International claims in its latest research paper.

The further development of trade, technology, infrastructure and operating models, coupled with an increase in manufacturing running north to south, are driving distribution channels eastwards, according to Damian Harrington, Regional Director of Research.

'The confluence of shifting global trade routes, new infrastructure in Europe, the rapid emergence of e-commerce, growing CEE market demand and improvements in supply chain efficiencies all have their part to play in this evolution,'says Harrington. 'Things don’t stop here: the emergence of, and need for, multi-modal freight capacity and energy efficient transportation and supply chains will continue to transform the hub and spoke model, significantly impacting the logistics landscape and our towns and cities in future.'

Colliers International’s review of Europe’s main ports shows there have been significant changes in trade since 2010, in terms of the volume of TEU (20-foot equivalent unit or 6.1m) containers handled. Ports servicing northern Poland and Germany have been at the top of the pile, helping to drive logistics demand across northern Germany into Poland and the core CEE markets. Gdansk (Tricity) has seen trade volumes increase by 133% since 2010, putting it on a par with Marseille in France, the report shows.

This growth story is second only to the best performer, Piraeus port in Athens, which has seen trade increase by 276%, putting it on a par with Felixstowe, the primary UK port. Harrington said the growth in trade in Greece, Turkey and also in Constanta, Romania, reinforces the shift in trade via the Mediterranean up through southeastern Europe, which is running in tandem with a significant shift in manufacturing growth in southeast Europe. This growth is being driven by low labour and operational costs, highly skilled workforce and increasing pan-European - and global - connectivity, he added.

The other main growth ports since 2010 have been Marseille, Genoa and Algecira, demonstrating further the shift in Mediterranean trade servicing Europe. Over the same peiod, the traditional North Sea ports of Le Havre, Antwerp, Zebrugge and Rotterdam have seen TEU volumes remain stagnant or decline. In the UK, London has been the biggest growth port, whilst Felixstowe, Southampton and Liverpool have seen activity decline.

Tim Davies, Head of Industrial and Logistics for Colliers International EMEA, says: 'It’s interesting to see just how quickly trade patterns can change, reinforcing our thinking.'

In the UK, Colliers International advised the London Gateway Port on behalf of DP World which, Davies claims, is one of the leading transport hubs in Europe. 'A major advantage of this facility is the very high-level technical capability and infrastructure in place, including genuine multi-modal capacity,' he says. 'This will be the future for large, modern hub facilities in Europe going forward.'

Modern retail is also being reinvented, Davies says, pointing to an urban evolution in terms of the demand for modern industrial space. 'This is being driven by e-commerce and new forms of urban transportation and technology, which are influencing our business-to-business and business-to-consumer driven clients. This is one of the most dynamic and exciting sectors to be engaged in.'