Market Trends of Czech Republic Third-Party Logistics Industry
Development in the Czech Republic's Transportation Network
The Czech Republic is in the middle of Europe, so improving its infrastructure is very important for both the country and the rest of the world.The country is planning various investments in terms of the expansion of the transportation and railroad networks, as well as innovations in the field of e-mobility. Currently, it still lacks some 800 kilometers of highways, which, as per the original plans, should be completed by 2030.
In July 2022, OBB Rail Cargo Group set up a new direct route between Melnik, Czech Republic, and Wilhelmshaven, Germany.The TransFER service will go from the Czech Republic to Germany once a week on the Melnik-Dn-Maschen-Hude-Wilhelmshaven route. Rail Cargo Group says that the TRANSFER service is made for ISO containers and may deliver dangerous items.BB Rail Cargo Group transports commodities throughout the Eurasian continent via over 60 networks. This new route adds to the company's digital TransNET network, which shows all links between ports and industrial hubs on a smart map.
The European Union has come up with the project known as C-ROADS as an attempt to interconnect the public, private, and academic domains with the most important international partners and multinational companies in their field. The aim of this international project, which is part of the European C-ROADS platform, is to create a functional, technically and organizationally harmonized system for cross-border use of services of cooperative intelligent transport systems (C-ITS) between individual European countries. This project is part of the European C-ROADS Platform, which aims to create a technically harmonized functional system among particular European projects for cross-border use of services of cooperative intelligent transport systems (C-ITS), thus creating an environment for the arrival of cooperative and, in the near future, automated vehicles. The use of new technologies will contribute to higher safety for road users, smoother and more efficient transport, and noticeable emission reduction. Changes will have a positive impact on the European economy, which needs a safe, reliable, and efficient transport system.
Increasing Demand for Storage from E-commerce sector
With e-commerce becoming more popular and customers wanting their goods to be delivered quickly and safely, e-retailers are pushing for better connections within cities to keep costs down and provide better service.Not only the retail sector, but also the manufacturing and automobile industries, prefer warehouse capacities that are fully automated and can have huge capacities while providing seamless service at the same time.
In Q1 2022, in the Czech Republic, 22 buildings were built, providing 306,600 sq m of modern industrial space to the area. This result is 71% higher than the 5-year average for first-quarter completions and a 106 percent increase year on year. In Q1 2022, gross take-up totaled 724,300 sq m, barely short of the record number set in Q1 2021. Although net take-up climbed year on year, it fell by 15% quarter on quarter to 384,100 sq ft. The Greater Prague region was the busiest, followed by the Pilsen region. This quarter's leases were dominated by logistics and production tenants, indicating that e-commerce tenants played a less important role than in the first quarter. The Czech Republic's development appears to be catching up with the market's desire for extra space.
