Tailor Your Business in Lodz 2023

OVERVIEW 3 TAKE-AWAY REELS

NEARSHORING AND THE NEW SILK ROAD Nearshoring, reshoring and friendshoring. Several new terms have been recently coined for more or less the same process - the relocation of an assembly or manufacturing plant closer to the final production place or consumer markets. More importantly, these definitions are no longer just empty buzzwords in commercial reports but a real phenomenon which is expected to gain traction on the Polish warehouse market. Thanks to its central location, educated workforce and successful construction of production lines from scratch, the Łódź province is likely to play a key role in the transfer of business from the Far East or the Western Hemisphere. This process could be substantially facilitated by land available in the region and a wide range of government grants and tax exemptions. Łódź is part of the New Silk Road, which - despite many headwinds - is still an important, safe and stable transcontinental route for both China and Europe, while the Central Multimodal Terminal at Zduńska Wola-Karsznice railway station is expected to have a TEU capacity of up to 220,000 per year when it is fully built out. Projects in the pipeline include a warehouse for cargo consolidation and deconsolidation in the Olechów area in Łódź and a compact terminal in the Industrial Teofilów district. As a result, the region is likely to see further growth of its potential to handle and inject cargo into international supply chains of Western countries.

LOCATION, LOCATION, LOCATION Theoretically, this is the basic principle applicable to real estate that defines the three key criteria impacting property values. It is common knowledge that the Łódź province boasts a prime central location near the interchange of two motorways that makes for improved transport connectivity, shorter lead times and optimized supply chains. So much has been said about it that many would smile indulgently at analyses focusing on this matter. Recently, however, Łódź has been in the news again on account of the just over 100 km orbital route around the city , which was completed following the opening of the last section of the S14 expressway - it is formed by stretches of the A1 and A2 motorways and the S8 and S14 expressways. It is the first large metropolitan area with a complete orbital route of fast roads that has also significantly improved e-commerce logistics. It takes less than an hour to drive the entire route within the speed limit, while it has long been known that it is last-mile logistics that generates the highest costs in a supply chain. According to Cushman & Wakefield’s Last Link: Quantifying the Cost report, the last link of the e-commerce supply chain can account for 50% or more of total supply chain spend. This is why location is still one of the key competitive advantages of the region and there is hardly any other space than that available in Central Poland that would meet the requirements of modern logistics.

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