European Logistics Operations

Melanie Veness:  PCB CEO

Recently I had the pleasure of meeting the Minister-President of Flanders at a reception hosted by the Belgian Consul General. I observed him interacting with business people in the room, and I was impressed with the ease with which he interacted and with his down-to-earth approach – a great ambassador for his country.

Flanders is of course the Dutch-speaking part of Belgium, and I was amazed at how close the Flemish language is to Afrikaans, even closer than Nederlands Dutch is. As he spoke, I thought about the potential international trade opportunities for South Africa, and I realized that we could also benefit greatly from knowledge sharing, particularly in the area of logistics.

Flanders is ranked as the number one logistics location in Europe, and is set to retain that position until 2019. It is also rated as the number two region in Europe for foreign direct investment. 

It is clear that there is a very focused approach to the country’s positioning, and they have used the competitive advantage of centrality to full effect, by developing one of Europe’s densest road and rail networks. Not only have they developed the necessary infrastructure, but there is dedicated and ongoing attention and support from government. Flanders offers a beneficial tax environment, and their development vision for Flanders translates into several strategic themes that range from focusing on capacity utilization of existing infrastructure to streamlining regulation, providing bespoke training courses and the fostering of innovative logistics.

Companies that have set up their logistics operations in Flanders list various reasons for doings so, and I was interested to note their reasons.  Investors indicated that the government is said to be very active in clearing land for logistical purposes and also offers attractive subsidies for expansion and for training personnel. Some companies chose Flanders because traffic jams are less frequent than in surrounding countries, railroad connections with the port are excellent, and because of the efficiency and speed with which ships are unloaded.

The country also boasts specialized service providers that have developed advanced expertise. Companies indicated that the workforce is highly educated, speaking several languages, and that they are flexible and willing to offer a very high level of service. These company representatives went on to say that, although the majority of people employed in this sector are low-skilled workers, a great deal is expected of them, in that they work with state-of-the-art IT systems and employers expect them to not only work with the hi-tech equipment, but to also understand the underlying logic.

It is clear, that putting the infrastructure in place is only a step in the right direction – we need to support that infrastructure with policy that removes red tape and translates into action, and that fosters development and innovation and we need to offer the expertise and efficient service. Flanders' Investment and Trade pay-off line says it all: “The right place, the right platform, the right expertise, the right infrastructure – an ideal base for sustainable European logistics operations”.

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