Fasten your seatbelts... we're in the EU
Already last year a research firm published a report indicating that distributors have started moving east. And the trend, experts say, is set to continue.
But while private logistics operators are gearing up for a bright future, their growth is restricted by insufficient infrastructure and the depressed condition of the railways segment of the market.
"Every European country needs a diversified transport infrastructure," says Tadeusz Syryjczyk, director at the European Bank of Reconstruction and Development. Without healthy railways and an extensive network of highways, the country's growth risks being crippled by artificial constraints. Road and rail networks are complimentary, he says, and operators should ideally have a choice between those modes of transport.
But the poor conditions of Poland's roads are proverbial, while the Infrastructure Ministry is widely seen as one of the most inefficient and bureaucratic institutions in the country. And the poor state of the country's transport infrastructure - which was highlighted when it was cited by Hyundai as one of the reasons it opted to locate its KIA production facility in Slovakia - is also plaguing logistics companies. And last quarter PKP Cargo, the only healthy part of the railway sector, had its first-ever quarterly loss, as it was forced to write off its loans to other state-owned railway companies.
Despite that, the country has moved up to sixth place in Cushman & Wakefield Healy & Baker's ranking of Europe's most attractive destinations in which to locate a logistics center. The country's strategic location at the heart of the continent and on the EU's eastern frontier means that it is well poised to benefit from the booming Russian economy and growing trade volumes between the eastern giant and the EU.
Moreover, Rafał Jakubowski of Ikea Hanim Poland says that freighting between the EU's ten new members has also been on the up. At the same time, even as demand increases, the easing of customs procedures and expanding volumes will allow cost-cutting and thus reduce prices for international transport, say industry insiders.
Domestic transport, on the other hand, is expected to see rising prices.
"When I tell a German that here the cost of sending a package is just e2 [zł.9], they just faint out of awe," says Jan Tkaczow, chief executive of MS Stolica, a courier firm. He envisages a convergence with EU prices in the domestic sector, though, adding that the effect will only be felt in the medium to long term.
In all, the industry is looking at a bright road ahead. And if EU structural funds help to overcome official insolence and improve the infrastructure, then they could really enjoy the ride.
But while private logistics operators are gearing up for a bright future, their growth is restricted by insufficient infrastructure and the depressed condition of the railways segment of the market.
"Every European country needs a diversified transport infrastructure," says Tadeusz Syryjczyk, director at the European Bank of Reconstruction and Development. Without healthy railways and an extensive network of highways, the country's growth risks being crippled by artificial constraints. Road and rail networks are complimentary, he says, and operators should ideally have a choice between those modes of transport.
But the poor conditions of Poland's roads are proverbial, while the Infrastructure Ministry is widely seen as one of the most inefficient and bureaucratic institutions in the country. And the poor state of the country's transport infrastructure - which was highlighted when it was cited by Hyundai as one of the reasons it opted to locate its KIA production facility in Slovakia - is also plaguing logistics companies. And last quarter PKP Cargo, the only healthy part of the railway sector, had its first-ever quarterly loss, as it was forced to write off its loans to other state-owned railway companies.
Despite that, the country has moved up to sixth place in Cushman & Wakefield Healy & Baker's ranking of Europe's most attractive destinations in which to locate a logistics center. The country's strategic location at the heart of the continent and on the EU's eastern frontier means that it is well poised to benefit from the booming Russian economy and growing trade volumes between the eastern giant and the EU.
Moreover, Rafał Jakubowski of Ikea Hanim Poland says that freighting between the EU's ten new members has also been on the up. At the same time, even as demand increases, the easing of customs procedures and expanding volumes will allow cost-cutting and thus reduce prices for international transport, say industry insiders.
Domestic transport, on the other hand, is expected to see rising prices.
"When I tell a German that here the cost of sending a package is just e2 [zł.9], they just faint out of awe," says Jan Tkaczow, chief executive of MS Stolica, a courier firm. He envisages a convergence with EU prices in the domestic sector, though, adding that the effect will only be felt in the medium to long term.
In all, the industry is looking at a bright road ahead. And if EU structural funds help to overcome official insolence and improve the infrastructure, then they could really enjoy the ride.
