SCANDINAVIAN LOGISTICS SPONSORED EDITION Expert: Larger depots brings bright future despite current corona-pressure The crisis is having a big impact on Danish transport but the trend for larger terminals will bring long-term benefits, says industry boss. By Ebbe Fischer Michael Svane, CEO of the Federation of Danish Transport, remains concerned about the industry but is feeling positive about its future - once the coronavirus pandemic passes. In recent years, the freight transport industry has seen a trend towards housing larger depots in northern Europe, as well as in Denmark. Mr Svane thinks these giant warehouses, often located close to motorways, will help the sector recover more quickly. If I look five or six years ahead, I believe we will see an even stronger focus on larger warehouses, and also bigger regional depots. I believe we will see higher productivity in Europe since the advantage of low-cost labour in Asia is diminishing with rising wages and with the increased use of robots, he says, and emphasises that a crisis like the one we are nies will start bringing production closer to home and they will also hold more stock to be better prepared to meet any future crisis. The climate comeback Mr Svane also predicts environmental benefits for the industry in the long term. The larger depots will have a much higher degree of automation in the future, and there will be a return to focusing on environmental issues, he said. Since we will be handling greater volumes, these large depots will be an important part of this trend in reducing CO2 emissions. The downturn in the Danish economy as a result of the coronavirus has hit many haulage firms with the lorry-based freight sector looking at an overall 3-4 per cent fall in volume since the quarantine restrictions to fight coronavirus were imposed. An increase in online grocery shopping during the pandemic has given the transport sector linked to food retail a welcome lift, and Mr Svane said there are reasons to look I think many companies will start bringing production closer to home and they will also hold more stock to be better prepared to meet any future crisis Michael Svane, CEO of the Federation of Danish Transport living now is a problem for companies having their products manufactured in Asia. Therefore, I think many compa- on the bright side. Weve actually recorded an index of 140 (index of 100 being normal) with only minor hoarding, revealed the trans- port chief. So, it seems that panic buying has not been a big problem since the lockdown with the larger supermarkets chains already having stocked their warehouses with extra food and goods, having anticipated a higher demand from their customers. A Chinese challenge Taking an overall view of the Danish transport sector, Mr Svane sees it benefiting from the still functioning supply chain in Europe. This has been a priority in the EU, however, there have been restrictions in place, he said. For instance when a truck crosses a national border, the driver is often required by law to go into quarantine for 14 days, which obviously limits the amount of drivers available and slows down the supply chain. In countries like Italy and Spain, which have been hit very hard by COVID-19, their governments have imposed harsh sanctions and closed borders. Mr Svane points to what the industry calls the Chinese challenge. Exports from China have been blocked almost entirely, lamented Mr Svane. And this has had a knock-on effect on international container shipping, of course, as well as other industries with many Danish companies depending on components from China. He added: Now, China has begun manufacturing again, we have started to see more shipments from Asia but since many stores have closed, we now have a stockpiling of containers in harbours across Europe and even on ships. As a result, the amount of containers and other goods reaching us from China is still significantly lower than normal. With the Danish government making its first moves to ease quarantine restrictions and children aged 11 and younger are being allowed to return to school - Svane thinks 2020 will be a particularly tough year financially for some shipping and delivery firms. Certain sectors within the transport industry will be able to make a profit, for example some of those who handle e-trade (online orders). And now we are beginning to see some governments allowing businesses to open up again with caution. Slowly but surely we will see things get back to normal and there will be more and more volumes coming into Denmark. Tunnel creates activity Mr Svane figures how businesses will cope will depend very much on what effect the government stimulus packages have. He said: The Danish economy is open and thus we are very much depending on how things unfold in other countries, especially in Norway, Sweden and Germany. A welcome boost for the Danish transport industry will be the construction of the Fehmarn Belt high-speed railroad link. It is set to become worlds longest road and rail tunnel connecting the Danish island of Lolland and the German island of Fehmarn with a double track railway and four-lane motorway bringing Copenhagen, the island of Zealand and Sweden even closer to central Europe. The project is due to be completed in 2028. 3 Scandinavian Logistics NMInsights. The trend for larger terminals will bring long-term benefits, says CEO Industrial park attracts more businesses New terminal in Greve focus on environmental friendly solutions SPONSORED EDITION 2 SCANDINAVIAN LOGISTICS SPONSORED EDITION If I look five or six years ahead, I believe we will see an even stronger focus on larger warehouses, and also bigger regional depots Michael Svane, CEO of the Federation of Danish Transport SCANDINAVIAN LOGISTICS SPONSORED EDITION Expert: Larger depots brings bright future despite current corona-pressure The crisis is having a big impact on Danish transport but the trend for larger terminals will bring long-term benefits, says industry boss. By Ebbe Fischer Michael Svane, CEO of the 4 SCANDINAVIAN LOGISTICS SPONSORED EDITION Industrial park bids to attract more businesses after DHL moves in Verdion iPark Copenhagen entices new occupiers with a specialist facility and excellent transport links to the region. By Ebbe Fischer International freight handler DHLs decision to leas SCANDINAVIAN LOGISTICS SPONSORED EDITION This is an opportunity for businesses to start with the advantages of a blank canvas and work with Verdion to create a facility that precisely meets their needs John Clements, executive director in Verdion that is temperature or humidity-controlled or sim 6 SCANDINAVIAN LOGISTICS SPONSORED EDITION Safezone Nordic helps secure new terminal near Copenhagen International freight courier Bring is continuing to grow its business with the construction of a modern and safe terminal in Greve. By Ebbe Fischer Bring - the logistics and parcel delivery firm SCANDINAVIAN LOGISTICS SPONSORED EDITION A view of Brings new terminal. Photo: Safezone. vehicle access around the site as well as at some junctions where there is a higher risk of accidents. And 20 high visibility yellow-coloured protective railings have been placed around the terminal to protec