According to Jones Lang LaSalle's latest research, demand in Europe's seaport real estate market has risen substantially reflecting an increase in sea freight throughput in the region during the last decade.
Container ports have developed into important gateway locations serving extensive inland networks proving critical in logistics supply chains. Chris Staveley, Head of the European Cross-Border team at Jones Lang LaSalle commented, "European container ports have recorded a substantial increase of freight throughput over the last decade, with several ports recording double digit growth in recent years. Total freight transportation in Europe increased by 9% to 100m Twenty Feet Equivalent Unit (TEU) containers in 2007 and despite the more difficult economic situation today, growth rates in freight throughput in Europe's ports are still expected to remain strong." This steady increase in container trade has resulted in capacity stress and has place operational constraints in Europe's main existing container ports.
Other key findings of Jones Lang LaSalle's European Seaports: Future Logistics Hotspots research paper are as follows:
Chris concluded, "Although we see interesting growth potential in some of the smaller port locations, Europe's main gateway ports are expected to continue to be the leading logistics locations in terms of maritime transport. Already established logistics markets are expected to be favoured locations for logistics operators, developers and investors. They will, however, increasingly suffer from land constraints and the logistics market will move away from direct seaport submarkets into the wider metropolitan areas. Our research concludes that this trend will be encouraged by improved infrastructure networks. Higher land availability along with lower land prices will provide occupiers with less expensive logistics facilities further away from seaports providing development potential for those in the logistics real estate market.
Source: Jones Lang LaSalle