Over the past seven years, container transport at the Port of Rotterdam has increased by 27% to 142.6 million metric tons. This has a major impact on the demand for logistics real estate metric tons in Rotterdam and beyond. For every five containers that enter the port, storage is required for one container in the surrounding region. With an expected growth of another 15 million metric tons until 2020, a minimum of 250,000 square meters of new logistics real estate is needed.The strong growth is mainly due to the increasing number of products being shipped from Asia. China chooses the Port of Rotterdam for 40% of its container trade with Europe. Growing exports from Asia, and especially China, are therefore leading to rising demand for logistics facilities.
Great shortage of space
The existing supply of logistics space is historically low with 259,000 sqm. In addition, 85% of this property does not meet the wishes of logistics companies. For example, surface areas are too small, or there is insufficient height, for instance. As a result, only 40,000 sqm of good-quality logistics space is available on the Rotterdam market. At the same time, more and more space is being rented by companies. In the first quarter alone, the take-up volume was almost 98,000 m², which was 60% of the total volume of 2017. This makes the shortage increasingly acute.
Opportunities for Maasvlakte 2 or Kickersbloem 3
It is expected that the container shipping volume will continue to rise and that the total volume in 2020 will almost reach 158 million metric tons. Based on this forecast, at least 250,000 square meters of new logistics real estate is needed. On average, 60% of the land is built on. This means 40 hectares of land is needed for the construction of additional logistics real estate. To make this possible, green fields are available in the Rotterdam region where logistics centers can be built. This concerns, for example, Distripark Maasvlakte West of 100 hectares and business park Kickersbloem 3, where 50 hectares of land can be allocated. These locations offer sufficient space to meet the extra demand. It is now up to municipalities, developers and investors to pick up the gauntlet. By building new logistics real estate, expanding logistics companies in the region can be accommodated.