(IMD, 2020)
Supply Chain and Logistics
Denmark's well-developed infrastructure and central location give your logistics and distribution activities the fastest and smoothest access to Europe.
Send next-day deliveries to 65% of Europe’s heartland – more than 500 million consumers – using Denmark’s well-developed distribution infrastructure by land, air and sea. That makes Denmark the logical base for your next logistics and distribution adventure.
PLACE LOGISTICS & DISTRIBUTION ACTIVITIES IN DENMARK, AND GET ACCESS TO:
- Resilient and flexible infrastructure with world-class transportation by land, air and sea.
- Attractive location at the gateway to Scandinavia and with close links to Northern Europe.
- Next-day delivery to more than 500 million consumers.
- Home to leading logistics service providers such as Maersk and DSV
- Copenhagen Airport, continuously rated the most efficient in Europe
- Excellent shipping opportunities, including 25 ports with frequent international shipments.
- One of the highest IT penetrations in the world and a world-class digital infrastructure, enabling technologically advanced logistics and distribution services.
Download white paper Mitigate risks and the likelihood of disruption of supply chains
Become part of the most resilient business climate in the World with easy access to 500 million customers. If you want to develop your supply chain in a more resilient and sustainable way Denmark offers some of the most attractive framework conditions. In this white paper you will get an overview of the sector, investment insights and how to start your supply activities in Denmark.Denmark is #1 in the world on distribution infrastructure
By land…
Since the opening of the Great Belt Bridge in 1998 and the Øresund Bridge between Denmark and Sweden in 2000, Denmark has been the natural gateway to Northern Europe, Scandinavia and the Baltic region. The well-developed rail and road network with toll-free highways gives swift and easy access to these markets.
The construction of the Fehmarn Belt Bridge, connecting Germany to Denmark, is planned to start in 2020. With Denmark as your distribution hub, this will bring even greater opportunities to reach Central and Northern European markets.
Two interlinked logistics clusters in east and west Denmark offer an extensive range of logistics facilities, value-added services and service providers.
By air…
The core of the Danish distribution hub is our four international airports with some of the fastest clearing times in Europe, including a cargo transport time of just three hours. In addition to Copenhagen Airport, Denmark has three airports in Jutland: Aalborg, Aarhus and Billund. In addition to Copenhagen Airport, Billund Airport’s Cargo Center is a large air freight hub, located in the middle of the Danish industry, that offers direct access to several overseas destinations, including China.
In 2019, Copenhagen Airport was rated most efficient airport in Europe for the 14th time in the past sixteen years, serving more than 184 destinations (per January 2020). This makes it by far the biggest airport and distribution hub in Scandinavia.
By sea…
Some 75 percent of Danish exports are shipped by sea from around 25 ports. More than 64 million tonnes of international goods are loaded and unloaded at Danish ports every year.
The major industrial ports offer daily connections to overseas destinations and regular connections to major ports in Europe. Freeport and bonded warehousing and roll-on, roll-off / load-on, load-off facilities are available.
At the major Danish ports with international routes you can expect 24-hour service, and some of shortest turnaround times plus some of the most competitive rates in Europe. With Denmark’s strategical sea location in Northern Europe Danish ports serve as the gateway to the entire Baltic Region and the European continent.
The Danish logistics industrial properties market is expanding rapidly
Increase in demand for warehousing, logistics and production properties in Denmark
There is an increasing demand for warehousing, logistics and production properties in Denmark. This has consequently caused the market prices to rise while abating the economic idleness in the industry due to the high demand of companies searching for space to utilise warehousing, e-commerce and production.
As a result, yields on logistics properties are evidently higher in Denmark compared to countries in the Nordics and Northern Europe. The driving force behind the development is to a large extent caused by the growth of e-commerce and its demand for fast delivery times, which entails that logistics facilities are moving closer to the consumers. In addition, there are low interest rates and a lack of accumulated modern facilities which further feeds the interest on the demand side. In total, Denmark has 69.1 million square meters of premises for warehousing, logistics and production facilities, and in the beginning of the fourth quarter of 2020, almost 1.9 million square meters was offered for rental or sale purposes. Thus, the increasing demand and the scarcity of modern logistics and industrial facilities are triggering new significant construction projects in several places within the country.
Global supply chain and logistics trends
Prior to the covid-19 pandemic, the prognosis had shown a sharp increase in the turnover effects of international goods and therefore the expectation is coherently suggesting that goods in the transport and trading industry will return to its rising curve after a relative short time period. However, it is notable that whole corona crisis has put pressure on commodity production; this is also apparent with the international and intercontinental supply chains where post-corona disruptions have caused further delays in the general supply of goods.
When aiming for shorter and safer supply chains, with increased lead time and the avoidance of traffic bottlenecks, it is also expected that a regionalisation of production and supply chains will take place as an addition to the growing demand. Hence, the growth in the e-commerce sector and the stable economic conditions will push the long-term needs for warehousing facilities in Denmark. At the same time, there is also an increasing trend when it comes to new players in the logistics market, including; BigBox logistics, Last Mile logistics, City logistics and Small Business Units.
The e-commerce industry changes the demand for logistics facilities
As noted earlier, the logistics and industrial market is characterised by a high demand within the market which is driven by the rapid growth of the e-commerce industry and the disproportionately small supply side. At the same time, the design of warehousing and industrial facilities (the way in which we build logistics facilities) are affected by the process of automation and the use of robots. Furthermore, a general pattern can be seen when it comes to the placement of new logistics properties. The placement of storage facilities should be close to the consumers, so a short lead time is guaranteed and delays are avoided. In doing so, the so-called last mile delivery therefore suggest certain requirements to the interior design and location of the utilised properties.
Source: BBR (Bygnings- og Boligregistret, Byens Ejendom 2021, Estate Media, 2020)
Contact How can we help your company?
For more information about the logistics and distribution opportunities in Denmark, please do not hesitate to reach out to our dedicated advisors:
Loading...