Sector in Eastern Poland
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Project co-financed from the European Regional Development Fund within the Operational Programme Development of Eastern Poland 2007-2013 Logistic sector in Eastern Poland 4 size and structure 4 development centres 4 success story 4 sector potential 4 Logistic sector in Eastern Poland 1. Potential of Eastern Poland 3 1. Potential of Eastern Poland Eastern Poland is a macroregion that covers 31.7% MaP 1 Eastern Poland Voivodeships (99,037 km²) of Poland’s area and is home to 21.4% (8,238,200 people) of the country’s population. It con- sists of five voivodeships: Lubelskie, Podkarpackie, Lithuania Podlaskie, Świętokrzyskie and Warmińsko-Mazurskie. Due to its location along Poland’s eastern border, this macroregion is particularly unique and attractive to in- vestors. Actually, it is the most eastern part of the Eu- Russia ropean Union which borders directly with Russia, Bela- rus and Ukraine. Thanks to the excellent geographical Warmińsko-Mazurskie location in the trans-border zone and the long-standing close economic relations between the enterprises and Podlaskie local governments from Eastern Poland and the en- Belarus terprises and local governments from Russia, Ukraine and Belarus, this macroregion may become the plat- form for cooperation between companies from the Eu- ropean Union and the former Soviet Union countries. Eastern Poland is a macroregion of young (more Lubelskie than 29% of its population are under 25 years of age) and educated (there are 76 higher education Świętokrzyskie institutions with over 306 thousand students) people. Considering the fact that wages in Eastern Poland Podkarpackie are 15% lower compared with other parts of Poland, Ukraine it is this region that creates excellent climate for in- vestors to set up businesses and make investments. Eastern Poland’s investment potential is additionally Slovakia strengthened by the business infrastructure. There are five Special Economic Zones in this macroregion, which offer income tax exemptions for potential in- vestors. Science and technology parks help promote cooperation between business and scientific circles. Equally important is a system of investment incen- Source: Own compilation on the basis of the administrative division of Poland tives. Investors can count not only on additional funds from government subsidies (so-called multiannual programmes) but also on support available though Due to the region’s location, resources, natural con- national and regional operational programmes, and ditions and tradition, the particularly strongly in Eastern local tax reliefs. Potential investors can also obtain Poland: BPO, construction, chemical, wood and furni- funds under the Operational Programme ‘Develop- ture, renewable energy sources, logistic, aviation, en- ment of Eastern Poland’, which is specifically aimed gineering, metallurgical, clothing, food, and business at the 5 voivodeships of Eastern Poland. tourism industries. TaBLE 1 The structure of local government in Eastern Poland Podkarpackie Podlaskie Warmińsko-Mazurskie Voivodeship: Lubelskie Voivodeship Świętokrzyskie Voivodeship Voivodeship Voivodeship Voivodeship poviats 24 25 17 14 21 rural gmina 171 114 82 71 67 urban gmina 42 45 36 31 49 towns with poviat rights 4 4 3 1 2 Lublin, Rzeszów, Kielce, Olsztyn, biggest towns Białystok, Łomża, Chełm, Przemyśl, Ostrowiec Świętokrzyski, Elbląg, (by population) Suwałki Zamość Stalowa Wola Starachowice Ełk Source: Own compilation on the basis of the administrative division of Poland 4 LOGISTIC SECTOR 2. Logistic sector in Poland The logistics sector is an important section of the As for passenger transport, 538.6 million passen- Polish economy. Average employment under employ- gers were transported in the first three quarters of ment contracts in the entire logistics sector (transport 2012 – a decrease of 9.0% compared to the same and warehousing) in the first three quarters of 2012 period of 2011. Of that number, 328.1 million passen- stood at 483,100 – an increase of 2.7% compared to gers were transported by road – a decrease of 16.2%. the same period of 2011. The average gross monthly On the other hand, there has been an increase in the wage of employees employed under employment number of passengers transported by air (5.5 million contracts in the entire sector amounted to PLN passengers, an increase of 9.2%) and by rail (204.3 3,434.26 in the first three quarters of 2012 and was million passengers, an increase of 4.8%,). 2.7% higher than in the same period of 2011. In the Before the economic slowdown in 2008, Poland had period from January till September 2012, a total of been reporting annual growth figures of 12-14%. The 341.9 million tonnes of cargo were shipped in Poland, logistics industry was one of the first to be affected by that is 2.0% less than in the same period of the pre- the economic downturn which started in 2008. It was vious year. In September this year, 40.4 million tonnes most acutely felt by the Polish transport sector – ac- of cargo was transported – a decrease of 1.5% com- cording to the estimates of the Shipping Companies pared to September 2011. a decline in the amount association, it shrank by about 40% between autumn of cargo carried has been reported for all modes of 2008 and autumn 2009. Despite these adverse circum- transport except for road transport. stances, since 2010 the logistics sector has been back on a rising tide, with many companies performing bet- Financial performance of the logistics sector ter than before the general economic slowdown. This is especially true of the warehousing sector: at the end In 2011, gross profit earned by businesses with a headcount of over 49 people amounted of the first half of 2012 total warehouse space in Poland to PLN 1,913.0 million compared to PLN 1,823.1 million in 2010. It was mainly due to amounted to 7.12 million m2. From January to Septem- the improved financial result on the sale of goods, products and materials. The net profit ber, approx 290,000 m2 of modern warehouse space increased from PLN 1,136.0 million in 2010 to PLN 1,365.3 million in 2011. was made available. Thus, Poland’s logistics sector is capable of meeting the needs of modern business. 3. Logistic sector in Eastern Poland 5 3. Logistic sector in Eastern Poland TaBLE 2. Capital expenditure and cumulative value of fixed assets within the logistics infrastructure in Eastern olandP in Q3 2012 Capital expenditure Gross fixed assets Description Total (in PLN Transport, warehousing Transport, warehou- Total (in PLN Transport equipment Transport equipment millions) (in PLN millions) sing (in %) millions) (in PLN millions) (in %) Warmińsko-Mazurskie 769.5 10.1 1.31% 52.9 52.9 6.87% Podlaskie 822.7 7.9 0.9% 822.7 45.5 5.53% Lubelskie 2 231.8 159.4 7.14% 2 228.1 179.7 8.06% Podkarpackie 2 008.0 58.4 2.9% 2 007.4 115.6 5.75% Świętokrzyskie 1 257.9 28.3 2.24% 1 257.4 77.7 6.17% Eastern Poland 7 089.9 264.1 3.72% 6 368.5 471.4 7.4% Source: Own compilation based on: Statistical Bulletins of Voivodeships, Central Statistical Office, Warsaw Q3 2012 were in good technical condition. The Macroregion 3.1. Size, structure and has the lowest number of roads in need of urgent re- characteristics of the sector pair [table 4]. Modernisation of the road infrastructure in East- 3.1.1. Road infrastructure ern Poland Macroregion accelerated rapidly upon The road system in Eastern Poland Macroregion Poland’s accession to the EU. It is expected that the meets the needs of investment and economic activ- decade of 2011–2020 will see an unprecedented de- ity in terms of capacity, surface strength, and load- velopment of the road infrastructure in Eastern Po- bearing capacity of bridges and flyovers (measured land and by 2020 it will not be much different from by reference to the gross vehicle weight rating of road the average EU standard. It will be possible, in the haulage vehicles). In the Macroregion, there are an first place, due to the EU assistance programmes average of 116 km of roads per 100 km2. These are (within the framework of the cohesion policy) under predominantly gmina (commune) and poviat (district) which almost PLN 10 billion will be allocated to roads, which account for nearly 86% of all the roads modernise transport infrastructure in Eastern Poland. in the region. The voivodeship with the most extensive The most important programmes utilized to finance road network in Eastern Poland is the Świętokrzyskie the development of road (and other) infrastructure in Voivodeship [table 3]. Eastern Poland Macroregion are: the Infrastructure The existing roads are being modernised to im- and Environment Operational Programme, which has prove their quality. according to the General Directo- been the largest investment programme in Poland to rate for National Roads and Motorways, as at the end date (more than EUR 11.4 billion allocated to road of 2012 national roads in Eastern Poland Macroregion transport across Poland), the Development of Eastern Poland Operational Programme (EUR 776.9 million allocated to broadly defined transport infrastructure), TaBLE 3. Total public roads in Eastern Poland by road and Regional Operational Programmes implemented category, as of 31.12.2011 by individual voivodeships in the Macroregion. So far, the primary objective has been to mod- Total ernise gmina and poviat roads. However, over the Region In absolute Per 100 km2 next few years, the network of major arterial roads in numbers the Macroregion is going to be modernised as well. Warmińsko-Mazurskie 23 081.5 95.4 In the spring of 2012 the entire a4 motorway was Podlaskie 25 583.5 126.8 Lubelskie 34 598.6 137.8 completed, including its section running through the Podkarpackie 18 924.4 105.6 Podkarpackie Voivodship up to the border crossing Świętokrzyskie 17 105.1 146.3 point in Korczowa.