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Regional Governments Put Th LOGISTICS I MARKET & TRENDS I Regional governments put th Both of Belgium’s two major regions – Flanders and Wallonia – have realised the major advantages the country has to offer for logistics services providers. These include skilled personnel and government sponsored training courses, land and rental prices and the availability of sites – not to mention Belgium’s renowned multi-lingual character – all of which complement a geographical location at the heart of Europe’s most densely populated consumer zone. Flanders: a logistics ments. Best practices are published as exam- heavyweight ples for other players in the logistics market. Flanders has a long-stand- The highly-skilled personnel form an addi- ing tradition of logistics tional asset. The majority of Flemish workers activities that goes back are able to speak a second language (usually centuries at the North Sea harbours. The English or French). In Flanders, the long- good hinterland connections ensure that term unemployed who wish to do so are able logistics zones are now increasingly being to retrain to become logistics workers. The developed away from the harbours, closer to government does this through its unemploy- the end user. This effect is further com- ment benefit system, whilst temping agencies pounded in Flanders through governmental have also developed high-quality training support. The Flemish Government has res- courses for a whole variety of logistics jobs. olutely opted for logistics as one of the future The employment market in Flanders will still areas of economic growth in Flanders. This is be able to offer sufficient possibilities for the very much a natural choice due to the num- foreseeable future to enable logistics activities ber of advantages that Flanders has at its dis- to grow. posal, including the four Flemish seaports, the dense road and motorway network, the Highest level of activity in Belgium railway network, the canals and the inland It was evident during the economic crisis of waterway terminals, and especially the highly 2009 that the Flemish Government’s skilled personnel and the companies that approach is paying off. Although the econo- have such extensive logistics experience. The my experienced some major blows, Flanders strategy for supporting logistics is an integral continued to do relatively well. The logistics part of the Flemish coalition agreement and real estate market shrank by only 5.3% com- known as VIA (Vlaanderen In Actie – pared to the years preceding the economic Flanders In Action). The Flemish crisis which were peak years. Compared to Government relies on the VIL (Vlaams Brussels and Wallonia, Flanders continues to Instituut voor Logistiek – Flanders Institute do well. This can be seen in the so-called for Logistics), which is a think-tank that scru- "Golden logistics triangle" which lies between tinizes the logistics streams and processes Antwerp, Brussels and Ghent. The best sites and makes recommendations for improve- are between the A12 and the E19 motor- 44 Belgium Real Estate Showcase 2010 e accent on logistics Stock, take-up and rental prices Flanders Take-up (m2) Rent EUR/m2/year Stock (m2) Q42009 Warehousing Logistics Antwerp 6,944,000 11,273 50 52 Mechelen 2,056,000 26,132 50 41 Scheldeland 1,575,000 49,274 48 43 Kempen 1,310,000 15,441 56 40 Limburg 1,939,000 44,679 45 35 East Flanders 1,622,000 4,168 47 40 West Flanders 1,069,000 0 48 35 Wallonia Take-up (m2) Rent EUR/m2/year Stock (m2) Q42009 Warehousing Logistics Liège 1,437,000 8,405 45 35 Hainaut 1,499,000 2,718 36 32 Namur 90 3 40 n.a. Ardennes 290 1,8 40 30 Source: DTZ Property Times Belgium Industrial Q4 2009. The full report is available at www.pro-realestate.be/library on the page introducing this article. It can easily be found: • either via the date they were put on line (10 March 2010) – articles are classified by date • or by instigating a search using the title of this article in the site’s search window ways, with the Brussels-Willebroek canal and planned for the road network around Stable prices the railway connections between Antwerp Antwerp, it is expected that these sites will Although there are fewer available sites in and Brussels close by. This region has a high see a sharp increase in interest in the near Flanders than in Wallonia, the Flemish mar- concentration of companies involved in logis- future. This is evident from the logistics com- ket for industrial real estate enjoys stable and tics activities for the pharmaceutical sector, panies within the harbour of Antwerp who relatively low prices, particularly when com- and it is very much a logistics hotspot for the did not lose any time in being the first to pared to Belgium’s neighbouring countries. Low Countries. Thanks to the central loca- invest. The prices are logically highest in the harbour tion within the ‘blue banana’, the dense road The jackpot in East Flanders is traditionally of Antwerp, which is still an important centre network and the good accessibility, all studies held to be the Ghent canal zone (Ghent- of logistics growth. The same prices are also indicate that this is still ‘the place to be’. This Terneuzen). Sites are also being developed on charged within the golden triangle. Taking will also remain the case for the foreseeable the axis between Ghent and Zeebrugge, the locations, accessibility and the other future, largely because of the expected infra- which will also make use of the E34 between assets into consideration, it would be fair to structure improvements and the further Antwerp and the harbour of Zeebrugge. say that Flanders offers real value for money. expansion of Zaventem-Brucargo as a cargo West Flanders is the province that has the airport. most distinct maritime access thanks to the Wallonia: Excellent Many logistics activities are also found closer harbours of Ostend and Zeebrugge. Several location, to Antwerp in the areas next to the E313 large new companies are currently being low prices, smart (Antwerp – Hasselt - Liège) and the E34 established in the Zeebrugge harbour hinter- investment (Antwerp - Venlo). The corridor to the Ruhr land. The same is also occurring in Ostend, opportunities area (heading towards Liège) is particularly which is increasingly shedding its past as a Wallonia is trying hard to play a more impor- popular with logistics service providers. A lot ferry port and attracting more diverse activi- tant role in the logistics sector. These efforts of development is currently going on in areas ties. West Flanders is also making the most of complement a number of important assets within Limburg, along both sides of the E313 the strong growth that has been experienced that this French-speaking region of Belgium and the E314. There is also much develop- in the north of France over the past few years. has to offer. The good location and more than ment taking place in the harbour of Antwerp The upgrading of Lille as a metropolis has led reasonable real estate prices are just a few of within the new harbour sites on the left bank to a significant increase in the demand for these benefits. of the River Scheldt. This is as a result of the logistics services in this area. This is being felt The situation in Wallonia means that there Deurganckdok development, which will in Mouscron as well as Kortrijk, which is sit- are a large number of well-trained and moti- serve as a hub for container shipment. These uated very close to Lille. Ypres and Roeselare vated workers within the employment mar- sites are very close to the golden triangle. are also benefiting from the growth in north- ket. The Walloon Government is making the As significant investments are currently being ern France. most of the opportunities available in the Belgium Real Estate Showcase 2010 45 LOGISTICS I MARKET & TRENDS I region. A ‘Marshall plan’ was drawn up to been made possible through the availability rienced significant growth. The major trans- prepare and adapt the Walloon economy for of plots of land and sites, providing sufficient actions in 2009 were in and around Liège, the future with logistics activities forming an space for new developments. with the purchase of a 3,500 m2 warehouse important supporting element. On top of in Loncin and a rental contract of 2,500 m2 in this, the government takes a very positive line Continued growth Alleur. This contrasts sharply with the with investors who wish to develop logistics The important centres of growth in Wallonia 33,000 m2 that is normally traded in the activities in Wallonia. are mainly found in the region surrounding Walloon region. There are numerous studies carried by Liège, where transactions have continued Industrial real estate in Wallonia presents a renowned consulting firms which shed light despite the economic crisis. Other important good opportunity for investment due to its on Wallonia's assets. The availability and areas of development include Courcelles and excellent location and good accessibility. This prices of logistics real estate are naturally Nivelles. The Neufchâteau region has also has also been evident over the past few deciding factors in the decisions taken by received much interest from logistics service months as the prices have barely come under logistics service providers. There are also providers and investors. These areas are firm- any pressure. The rental price was 38 EUR opportunities offered by the very dense ly positioned within the heart of the so-called per square metre in 2008, compared to an motorway infrastructure. The railway net- "blue banana", the highest concentration of average of 35 EUR at the lowest point of the work is also one of the densest in the world.
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