Elsewhere: Europe’s Crossroads

While the capital of Russia, Moscow, has lately been one of the European cities with best prospects for acquisition of retail space, Italy has long held the lead in their construction. Before 2008, the northern Italy alone is to witness construction or refurbishment of nearly 1.6 million square meters of shops. Some 30 projects are currently underway in central Italy, and 50 retail complexes are developed in the south.

If There Are Goods, There Will Be Storages

A sustained development of retail chains is impossible without an adequate supply of warehouse properties. Given the accelerated growth of the retail sector in central and northern Italy, those regions are the best for development of logistics facilities.

Lazio, the region where Rome is situated, is under the colossal load. Regional administration reports that each year 100 million tons of freight are transported through Lazio, excluding oil refinery products and oil proper. Remarkabley, some 54% of goods are transported inside the regions, while 37% are dispatched to other parts of Italy and only 9% are exported abroad. Lazio’s major trade partners are Germany, France, UK, Belgium, The Netherlands and Luxembourg, central and northern African states, far-eastern national and North America. The global tendency towards shipments by road (87% of goods are transported by cars, 10% by sea and only 3% by rail) predetermines development of Italy’s logistics sector. For the time being, trucking companies account for only 65% in Italy.

The Region of Lazio’s transport capacity stands at 1.5 million tons per year n intermodal transportation , and 8.1 million tons per year in the segment of conventional transport. Christiana Pace, regional marketing consultant at Sviluppo Lazio, notes that as year in near future, in 5 to 7 years, the demand for intermodal transportation services will reach 5 to 6 million tons per year. Transition from traditional transportation modes to intermodal services hinges largely on the development of infrastructure of "interporto” – the most modern logistics centers. This is why the general plan for development of transport infrastructure in Italy provides conditions for creation of 30 new interports across the country, she says. Three of them are t o be built in Lazio, namely in Civitavecchia, Fronsinone and Ort.

Civitavecchia logistics center, owned by АО Interporto di Civitavecchia Piattaforma Logistica, covers a territory of 50 ha. The complex is situated at 2 km distance from the port of Civitavecchia, 1.5 km away from highway A12 and 65 km from Rome Fiumicino Airport. The complex comprises an automobile transport and intermodal terminals, customs stations and warehouse facilities, shops, hotel rooms, post office, bank branch and public catering outlets.

The company AIG Lincoln Italy has launched construction of its first logistics park, Fiano Logistics Park, near Rome, 15 kilometers from the outer ring road. The choice of location is explained by real demand for equipped warehouses in the area. In the very near future the regional market will see the arrival of some 0.5 million square meters of retail space while warehouse capacities will remain t he same, says Miles Jones, managing director at AIG Lincoln Italy. He believes that the location chosen for construction of Fiano Logistics Park is perfect, as the complex will serve as a gateway both to Rome and Naples. The 60,000sqm project is estimated to be worth 50 million euros. It will provide space for manufacturers and offices for logistics operators.

But then, AIG Lincoln is not the only company active in central Italy. ASP Finance has launched construction of what is to become the largest logistics park in central Italy - Multimodal Logistics System. The project underway in Colleferro near Rome is to provide a total of 400,000sqm of space with a capacity of up to 2.5 million tons.

No less interesting is the project in Fronsinone, the capital of the province of Lazio. In the framework of this project, reconstruction works are underway at Fronsinone Airport, and construction of a logistics center Interporto Selva dei Muli, situated 84 km from Rome and 74.5 km from Rome Ciampino Airport, nears completion The total projected area of the complex is 602,000sqm, including logistics facilities, intermodal terminals and public amenities. The logistics section will provide 58,000sqm of storages, offices for services companies (6,157sqm) and warehouse territories (206,000sqm).

The plan to rebuild Fronsinone Airport envisages overhaul of airport facilities. Once redeveloped, the airport will service civil and commercial flights and helicopter transport services. The airport is 4 kilometers away from Fronsinone, 84 km from Rome Termini train station and 70 km from Ciampino Airport.

This project is one of the few which has strong government backing. Shareholders in Aeroporto di Frosinone are the administration of the province of Fronsinone, Fronsinone municipality, consortium of industrial development and the chamber of commerce and industry of Fronsinone. Following reconstruction, estimated to be worth 100 million euro, the total area of the airport will have grown to 300 ha (including 73 ha for helicopters).

Italy’s logistics sector is attractive also for investors from other countries. Not long ago ING Real Estate acquired three warehouse complexes - America, Europe and Oceania, measuring a total of 50,300sqm at Milano Logistic Center near Milan. The deal is estimated at 40 million euros.

Commercial Gateway

One of the largest cities in Veneto Region, Padua, is often dubbed "new commercial gateway". This is hardly fortuitous as the city's favorable location has turned it into the logistics center of Europe. Industrial territories take up 10% of Padua. For over 50 years now the zone is overseen by consortium Zone Industriale di Padova (ZIP), a public body that has pledged its commitment to promote better environment and preserve the historical heritage within the zone. In 1957, the first to preside over ZIP Consortium was Cesare Crescente, the then-mayor of Padua. Today, fifty years on, ZIP, backed by Padua's authorities, is working on ambitious plans of regenerating industrial zones. The project Viridis based on the Harvard School of Design study, is aimed at regenerating a territory measuring 2.5 million square meters, stretching along the banks of Roncajette River, between the city and the industrial estate. The project, estimated at 1 million euros, will provide 200,000sqm of shops, 120,000sqm of offices, 50,000sqm of residential spapce and leisure facilities, as well as 100,000sqm of research labs for a local university. Designers have proposed state-of-the-art environmental solutions featuring solar energy and rainwater collectors, etc. Water treatment systems will be used to prevent pollution of Roncajette. The district will be linked to the city with a network of cycling lanes and pedestrian alleys.

Today, the industrial zone of Padua comprises Magazzini Generali (general-purpose warehouses), customs facilities, a farmers' market, center for mechanization of main correspondence and Interporto (logistics center) of Padua. Interporto is has a 4-km link to the national and international raiways of Italy. This road links the container terminal with Trieste, Venice, Verona, Milan, Turin, Bologna and Rome. Interport offers logistics consulting , warehousing and other services offered both by tenants – logistics operators and the logistics department that rents offices in the newly built complex Distripark. The area measuring 50,000sqm provides warehouses with rail links to the main transportation hubs and major European ports.

Only a couple of miles away from the historic center of Padua lies Centro Grossisti di Padova , the largest wholesale distribution complex in northeastern Italy. Market property market operators note that the project meets all requirements of globalization. Situated on a territory of 160,000sqm the complex comprises 80,000sqm of offices and shops, car parks, bars and restaurants, conference facilities and a gigantic hall used as a venue for fashion shows. A large variety of manufacturers of textiles, shoes and accessories rent properties at the center. In total, over 50 companies have their presence there.

Contemporary of Logistics

Warehouse technologies have made great progress in recent years, especially in terms of storage equipment. A warehouse is no loner a damped property full of junk but a state-of-the-art logistics complex that meets requirements of retailers and freight companies.

Technological novelties and new lines of communications ensure easy access to key markets. Developments by Italy’s Magazzini Generali di Padova, with 70 years of expertise behind it, as early as today are widely used by logistics services providers. Not long ago the holding successfully tested a new radio frequency technology for identification and monitoring of shipments.

Remarkably, Magazzini Generali actively campaigns for introduction of energy-saving technologies and use of alternative energy sources, as well as leads an international campaign for nature protection. Today, the holding comprises two companies, Log System and MG Logistica. Log System carries out daily checks of the state of the holding’s warehouse facilities, while MG Logistica files documents in digital format. These archiving methods help save time needed for checks and simplifies the transfer of data.