ProLogis presents the findings of its study on logistics news

These are some of the conclusions of the study on logistics currently carried out by ProLogis, owner, Manager and developer of distribution facilities of world-wide, which was presented in the framework of the 2008 Sil - international logistics.

ProLogis MdC consultant commissioned an opinion poll, conducted in May 2008, on topical logistics in order to ascertain the trends of the market in Spain. The poll, conducted among more than 100 directors of logistics of companies already established in different parts of Spain, was intended to meet the trends in the sector and analyse the current situation of logistics in Spain.

The poll presented by ProLogis also analyses the results obtained by the logistics industry and makes a comparison with the European logistics. 43 Per cent of Directors of logistics considers that distribution in Spain is growing at greater pace than in the rest of Europe while and up 27 per cent considered that it is growing at an equal rate. However, Spain is still far from the major logistical powers, Germany, Holland, France and United Kingdom, according to experts, in regards to volume and quality of the logistics. The study also reveals that the experts of the sector consider that Poland and the countries of the East offer poor quality logistical services.

In general terms, on the current and future situation, up to 93 per cent of experts ensured that this year has been good or very good for the sector and 70 per cent of them dares to ensure the same positive results for this year.

With regard to the future of the sector, the experts predict that in 2010 it will be over the slight slowdown in the sector and 89 per cent considered that by then the results will be good or very good.

Source: ProLogis.

The questions of the survey indagaban on topics such as the autonomous communities with greater growth and attractive for the introduction, the State of infrastructure in Spain, the growth of Spanish logistics sector with regard to Europe or the policies of sustainability in the sector. Gustavo Cardozo, Vice President of ProLogis in Spain said the results.

Thus, in the first block, dedicated to logistics management, he remarked the trend towards the rent versus purchase, focusing on the fact that "the large international logistics operators understand the sector only in lease (...)" "they are not patrimonialistas as the majority of Spanish companies." According to Cardozo, "This explains also the growth of the activity of ProLogis in Spain".

As for the block II, on the 'best communities for investment', included questions on what features should be an area to locate a logistical centre or if Madrid is cattle ground to Catalonia in terms of investment. Responses point with 45,70 per cent, that effectively Madrid leads investment in logistics. In this regard, Cardozo said that "in Madrid have been the factors necessary for developing recent logistics projects, ahead of Barcelona and other cities that, recently, it seemed that they had a strong thrust (...)." "Also explained by the offering in terms of infrastructure and communications, something that Madrid has strongly promoted".

Barcelona, Madrid, Valencia, Aragon and Castile La Mancha are the best communities for setting up a centre of logistics distribution according to the experts. Logistics managers evaluated the situation of the communities, their infrastructure and value for money of the facilities offered there.

Although Catalonia is still one of the communities preferred for the installation of distribution centers, 82 percent of experts States that increasingly more Madrid it is gaining ground in attracting investment in the sector. In fact, 55 per cent of logistics experts considered that Madrid is a very good area for logistics investment, something they only think of Barcelona a 32 per cent of Directors of logistics. In addition, up to 27 percent of them considers that this region has become a bad area to invest.

On the other hand, Aragon and Castile La Mancha have been the two major revelations of the ranking, beating Andalusia or the Basque country in the votes of the experts, 20 and 23 per cent of them believed them good areas for investmentrespectively.

Valencia continues to rise, and was chosen as the third most attractive community to the establishment of a logistics centre.

The results should be also noted the question on what value when it comes to locate a distribution center. In them, respondents gave little importance the existence of a stopping place of train, something that Cardozo said "I think that what they don't appreciate because they do not, but it is also true that in Britain it is a 15 per cent of the total transport"", even taking into account the good road infrastructure which have". Also, the most remote areas appear as the most attractive to locate a distribution, although in the view of Gustavo Cardozo Centre "this can be explained by the lack of soil in major metropolitan areas". "The trend", explained, "is moving away from big cities provided that they comply with two factors: good communications and labour force".

91 Percent of the directors of logistics ensures that communications and infrastructure are a very important aspect when deciding the location of a distribution center. In this regard stresses the fact that up to 72 percent considered sustainability as the second key factor in the decision. Although this is not surprising if you consider that the survey shows that 62 per cent of the surveyed companies carried out some kind of policy of sustainability. In addition, a 64 per cent recognized that rent a center built under sustainability criteria improves its policy of corporate social responsibility. The quality of the facilities, considered by a 71 per cent of Directors as a very important factor, is well above the proximity to the airport or to customers, and even beyond the availability of laboura very important aspect for 58 per cent of Directors of logistics.

In management, outsourcing and the road transport continue to be the formulas choice in Spain, according to experts in the sector. Up to 70 per cent of the directors of logistics is the best formula of management partial outsourcing, against 22 percent who prefer the total and 7 percent opted for not outsource any activity. With respect to the ownership of distribution centers 66% of logistics managers would prefer to rent, compared to 27 percent who prefer the ownership in property. Only 7 percent opt for financial ownership. Among other data, the fact that only 8 per cent of distribution companies has received some kind of subsidy by the civil service is outstanding. On the other hand, 85 percent of the companies considered that road transport is the means of transfer of goods most important in Spain, compared to 10% by sea, the air 3 percent and 2 percent rail.

Other highlights of the study are:

• Madrid gaining ground to Catalonia to attract logistics investment

• Only 8 percent of Spanish companies has received subsidies from the Administration for the implementation of logistic facilities

• 2 of every 3 logistics directors preferred ownership of rental from property, by which opts a 27 per cent of them

• Up to 22 per cent of the experts considered the total outsourcing as the best formula of logistics management; 70 percent prefer partial outsourcing

• The distribution and logistics in Spain industry is growing at greater pace than in the rest of Europe, according to 43 per cent of experts