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Logistics in Central and Eastern Europe: The Next Hot-Spot for Logistics Industry
Region set for period of high growth as domestic markets continue rapid growth, merchandize exports increase, Datamonitor reports
London — February 6, 2008 — The logistics industry in Central and Eastern Europe (CEE) and Russia is set to experience a period of high growth over the next five years, going by market analyst Datamonitor's latest research.
The report, "CEE Logistics Outlook 2008," predicts the nominal spend on logistics and storage in the region will grow from an estimated $272.3 billion today to $369.4 billion by 2012. This will primarily be derived from the fast-growing domestic country-markets, as well as the increasing merchandise exports.
The overall CEE economy is estimated to grow at an average growth rate of 5 percent during 2007-12, 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 underdeveloped transportation network but is attracting increasing amounts of investment flows from the European Union, local government and large foreign and domestic private players in the logistics sector, Datamonitor reported.
"The lenient tax policies and moves for privatization have also helped attract a good amount of foreign direct investment funds into the region," said Praveen Ojha, senior logistics analyst with Datamonitor and coauthor of the study. "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."
The report, "CEE Logistics Outlook 2008," predicts the nominal spend on logistics and storage in the region will grow from an estimated $272.3 billion today to $369.4 billion by 2012. This will primarily be derived from the fast-growing domestic country-markets, as well as the increasing merchandise exports.
The overall CEE economy is estimated to grow at an average growth rate of 5 percent during 2007-12, 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 underdeveloped transportation network but is attracting increasing amounts of investment flows from the European Union, local government and large foreign and domestic private players in the logistics sector, Datamonitor reported.
"The lenient tax policies and moves for privatization have also helped attract a good amount of foreign direct investment funds into the region," said Praveen Ojha, senior logistics analyst with Datamonitor and coauthor of the study. "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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