Report: Europe’s logistics continues to move eastward

Report: EuropeÆs logistics continues to move eastward The booming express and logistics markets in Central and Eastern Europe is set to continue, especially with the accession of Bulgaria and Romania to the European Union in January, although it will bring security implications, U.K.-based Transport Intelligence said in a new report.
   The 'Central & Eastern Europe Logistics 2007' report said the combination of growing consumer demand due to increasing standards of living, and the rise of 'near-sourcing' by multinational manufacturers has driven logistics market growth rates of about 20 percent a year in the region.
   'The removal of customs barriers and the extension of the single European market to the region has had a transforming effect on the logistics market. Express and contract logistics markets have invested heavily in facilities, either piggybacking with existing multinational clients, or speculatively developing operations themselves,' said David Bagshaw, senior analyst at Transport Intelligence.
   'Although relatively small markets, the accession of Bulgaria and Romania is an important step forward. Many manufacturers, especially automotive and textile, have already been attracted to these low-cost countries, and they will now more easily be assimilated into European supply chains. Europe’s centre of logistics gravity will move once again eastwards,' Bagshaw said.
   He warned that the shift eastwards will also bring with it extra security issues. 'Not only do these countries themselves have a recent turbulent past, they border nations which are highly insecure. Organized crime, especially as it effects the movement and storage of goods, can not be underestimated,' Bagshaw said.