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Low rents and still cheap labor force, main attractions for logistics operators

Romania is more attractive than Ukraine and Bulgaria for industrial parks and logistics operators, but lags way behind Hungary in a classification of 25 European markets, made by real estate consultancy Cushman & Wakefield, Ziarul financiar daily reports in its Wednesday issue.

This year, Romania entered as a first in the classification of best 25 markets for industrial-logistics spaces, on the 13th spot directly. Of the neighboring countries Hungary holds the best position in the said classification, ranking third, after Belgium and The Netherlands. This top is drawn on the basis of some factors related to the rapport between costs and benefits, including rents level, labor force costs, market dimension, proximity degree to key markets or population's density. 'Favorable factors for Romania are low rents and reduced staff costs, whereas the diminished development pace of the road transport network and, implicitly, the low transit goods volume are aspects which hinder the ranking of Romania on a higher spot among Europe's industrial-logistics markets', says the European Distribution 2008 report, published by Cushman & Wakefield. Real estate consultants think that a decisive role in boosting Romanian market's attractiveness is played by retail upsurge, as well as by the development of Constanta Port (south-east, on the Black Sea shore) and of the Danube ports. In the past three years, Constanta Port recorded the biggest growth in goods volume in Europe, 277 percent. Despite that, Constanta is still ranked at the low-end of this classification (17 of 20) of the main ports in Europe according to the volume of goods, said the quoted source. Sursa: http://www.rompress.ro

Tags: logistics rents

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