Investors’ perspective on development of Záhony region By Vincent van den Bosch Based on experiences with Port of Rotterdam and shipping and logistics companies investing in Western and Eastern Europe

Starting-point Area can function as a springboard for distribution of cargo to a significant ‘hinterland’; It does not matter whether location is in the centre of the market or not – experts hold very different views on this – more important is whether location is in or close to a natural point of transshipment of large volumes of cargo; Connection to a good infrastructural network; Creation of possibility of ‘Value-added-logistics” (VAL). Van steun aan achtergebleven gebieden naar backing winners; keuze voor kansrijke gebieden (technologisch of regionaal)

The Záhony region The Záhony region seems to comply with these criteria: Railway: Russian wide gauge meets European gauge: transfer of cargo is necessary; Location along 5th pan European corridor; Middle Europe is a market of growing importance; Area is of growing importance as well because of lack of container capacity in the deep sea trade Asia – Europe; railway services South-East Asia through Russia and Ukraine to Europe could function as additional capacity to deep sea traffic; Therefore large cargo flows and transshipment capacity expected.

Conclusion Záhony is a natural threshold between Asia and Eastern Europe on the one side and West and Middle Europe on the other. Capacity needed for warehouses, distribution centers, transshipment facilities, administration offices etc.

Facilities Like Port of Rotterdam for distribution of deep sea cargo to the European hinterland; Cold stores, warehouses for electronics, shoes, textiles, houseware etc, storage space for cars Ancillary facilities like: Workshops for lorries, forklift trucks, cranes, reach stackers, straddle carriers etc. Customs administration offices ICT support offices Testing and quality control services Invoicing services Packing and make-to-measure services

Port of Rotterdam How does the Port of Rotterdam attract customers in the field of logistics/distribution? Providing reduction of the ground lease/rent. Providing suprastructure like pavement, electricity, water supply, communications infrastructure etc. and distribute the costs among the sums for ground rent. Public private partnership, government thinks alongside the investing companies, but more important: In her ‘Distripark concept’ the Port provides capacity for storage, distribution and VAL of containerised cargo, customs services for quick handling of import and export documents. Setting up of security measures like uniform gate controls, access measures.

Examples Distripark Eemhaven for high-quality products 65 hectares 200,000 m2 covered storage capacity Direct link to terminals and road, rail, barge link Highly qualified logistics service providers available like Maersk, Nippon Express, VAT, Eurofrigo, Geodis etc. Distripark Botlek for chemicals 104 hectares 300,000 m2 covered storage capacity Direct link to terminals Logistics service providers like Schenker, De Rijke, Damco, DHL Exel

Examples (2) Distripark Maasvlakte for containers Over 100 hectares Dedicated for European Distribution Centers, mega distributors, export hub service providers Kloosterboer, DHL Exel, Reebok, ADM, Hankook, Nippon Express etc.

Investors’ needs What do investors need from the Záhony region? Market Proof of purchasing power of consumer and business market in Middle Europe in various product selections (to be attractive in the first place, but of course this is mainly investor’s own responsibility) Transfer facilities Terminal facilities Russian/European railway gauge, Good infrastructural network road, railway, direct access to it The right and motivated people Not necessarily highly trained people, but people with specific skills (‘moving boxes’, but also specific skills in administration, RFID tagging, internal transport)

Investors’ needs Solution to present relative disadvantages (compared to inland terminals elsewhere) Facilities to avoid the crowdedness inherent in a border area Facilities to reduce criminality (fences, modern gates with video control, only access by key cards, guards etc. Quick customs procedures Bonus: Government willing to participate in the setting up of Storage and distribution capacity, Security measures etc.

Questions? Please ask! Or mail: Vincent.vandenbosch@pnoconsultants.nl