Regional Market Outlook on  Port-based Warehousing

  • The port-centric warehousing market is quite matured in Antwerp and Amsterdam compared to Italian port locations
  • The warehousing market in Antwerp and Italian port locations (Genova, Savona, and Taranto) is stable, and the client can expect cost in these markets to be stable or increase marginally. The Amsterdam market is facing a space constraint and buyers may feel cost pressure from 2019
  • Engaging on a flat rate contract will help to maintain cost levels

Port of Antwerp, Belgium

  • The total volume handled in 2017 increased by 4.44% from 2016, making Antwerp the second biggest port in Europe, in terms of container throughput
  • Petroleum products, which constitute to 72% of liquid bulk throughput, had a marginal increase of 3.2% in 2017 from 2016 
  • In 2017, food bulk freight volume had a significant decrease of 27% from the previous year

Port of Amsterdam, Netherlands

Port of Amsterdam being the world’s largest importer of cocoa beans and with import increasing at a rate of 6% Y-o-Y, client can expect a higher demand for cocoa storage in this market.

  • Port of Amsterdam is the world’s largest import port for cocoa and second largest coal and agribulk transhipment port in Europe. The port area has well-established facilities for cocoa, such as warehousing, transshipment, and processing facilities
  • Also, the port is a top player in dry bulk compared to other freight type. Total volume handled in 2017 increased by 3.95% from 2016
  • Import of cocoa in the Netherlands has increased significantly in the last three years. Between 2012 and 2016, imports grew at an annual average of 6.0%. In 2016, the port handled 861 thousand tons of cocoa beans

Ports of Genoa, Savona & Taranto, Italy

With growing volume in Ports of Genoa and Savona, client can expect high demand for storage services. In case of Port of Taranto, buyers can expect demand to stabilize, as total volume handled has seen a gradual decline

Ports of Genoa

  • These act as gateway ports serving the industrial and consumer centers of Northern Italy and Southern Europe. They contribute to lower percentage of transhipment traffic (13% of total), hence, cater mainly to domestic trade requirements
  • Total volume handled in 2017 increased by 8.75% from 2016 with a rapid increase in container traffic (~10–15%). Liquid bulk mainly constitutes to petroleum and chemical products

Port of Taranto

  • The total tonnage handled in Taranto has slumped by ~12% in 2017 with no change in container volume handled for the past two years

Supply vs. Demand Analysis: Antwerp, Belgium

With relatively lower demand and stable rents for the last two years, client can expect the cost for storage services to remain stable in the Antwerp market

  • Flanders market, which includes Antwerp, has been witnessing subdued logistics demand since 2017. Belgium is facing high competition from neighboring countries for positioning as logistics hub. Also, road congestion and decreasing land availability in key areas are having unfavorable repercussions, which translates to less demand
  • Most demand in the market is for turnkey developments with logistics companies constituting to ~60–70% of demand
  • However, the rental rates have remained stable at €45/sq. m./year and is expected to continue same in the next 12 months

Supply vs. Demand Analysis: Amsterdam, Netherlands

Client can expect medium–lower negotiation power for storage space in the Amsterdam port region, as the demand continues to dominate the market, with decreasing quality space, cost pressure for buyers is expected to increase in 2018–2019

  • The Netherlands market is witnessing high demand for logistics and warehousing space requirements with limited supply of high quality space, which is reflected in the Amsterdam port region
  • Main challenge is outdated infrastructure and supply growing in wrong locations, hence distinct lack of suitable existing supply. E.g., Approx. 45% of the supply in 2017 was outdated and not suitable for existing requirement
  • Amsterdam, especially is under pressure, due to the growing residential need, as most of the industrial sites are being transformed into home
  • Rental rates, which have been mostly stable for the last five years (Five year CAGR = 0.9%) is expected to witness higher pressure in the forthcoming years