What is the best country to invest in logistics business?

What is the best country to invest in logistics business?

When considering the best country to set up a logistics business, Bahrain, Singapore and the Netherlands all have impressive stories to tell. And don't forget about logistics potential of Ukraine

Logistics is a consistently expanding, globally critical sector. The pull to attract companies to start up or expand in this field continues to be competitive, with many countries emerging as genuine challengers to established logistic hub locations.

With a global value of about $9.9trn per annum, it is a high-value sector for investors. Though geography and established economies can be seen as leading factors, new contenders are emerging when it comes to deciding where is the best country to set up a logistics company.


As one of the emerging Middle Eastern economies, alongside established nations such as the United Arab Emirates, Bahrain has become a strong draw to investors across many sectors and industries.

Though a major part of the Bahrain economy is based on the export of oil and gas, it has been investing heavily and attracting major investment in other industries over the past two decades. These include financial services, banking and tourism, diversifying its economy and opening major market potential.

In a report by industry market experts, the Bahrain logistics industry is forecast to reach a value of $520m by the end of 2023. This includes a compound annual growth rate between 2023 and 2027 of 1.72%, resulting in a projected market volume of $560m by 2027.

With a logistically beneficial location in the region and short sea links throughout the Gulf, as well as a direct connection to all major road networks of the Arabian Peninsula, Bahrain is often a contender when looking for the best country to set up a logistics business.

A range of multinational corporations has commenced or expanded operations in Bahrain, taking advantage of the practical commercial environment afforded by the convenient position between the eastern and western time zones.

In addition, the Bahraini government has moved to lessen unnecessary trade restrictions and offer some of the most attractive and low-tax value operating costs in the region when it comes to setting up a business.


Singapore is home to a highly developed free-market economy with diverse commercial interests. Located in a strategic part of the world, the country represents something of a natural hub for transportation services, international freight forwarding and other economic operations relating to global logistics.

Consistently considered one of the most business-friendly and stable economic landscapes in the world, Singapore offers both geographic and financial benefits when considering where the best country is to set up a logistics business.

Singapore’s transport and logistics industry moves approximately S$1.2trn-worth of trade per annum, a figure that is continuing to rise with sustained investment in the industry.

With ongoing projects in the country including the building modern roads and highways, bridges, airports, harbours and other transportation networks, Singapore could well be considered the best country to set up a logistics company, especially in south-east Asia.

The Asia-Pacific Economic Cooperation is headquartered in Singapore, making it an accessible and vibrant global marketplace for the global industry.

Singapore is in a very strategic area that makes it a great hub for transportation services, international freight forwarding and other economic activities. In addition, the Singapore government has invested, and committed to investing even more, in the nation’s logistic industry infrastructure and ecosystem.

With ongoing projects in the country including the building modern roads and highways, bridges, airports, harbours and other transportation networks, Singapore could well be considered the best country to set up a logistics company, especially in south-east Asia.


Located at the heart of northern Europe, the Netherlands enjoys a prosperous, business-friendly, and diverse economy. Significantly, much of this prosperity is reliant on foreign trade.

According to the latest Forbes economic statistics, the Netherlands has the world’s 15th largest economy in GDP terms, standing at about $68,572 per capita.

With an established reputation as an important European transportation hub, the Netherlands is home to both Rotterdam, the biggest port in Europe, and Schiphol Airport in Amsterdam is one of the biggest airports in the world.

In fiscal terms, the existing logistics business in the Netherlands generates approximately €55bn per year and is, directly and indirectly, responsible for about 800,000 jobs.

When potential investors ask what is the best country to set up a logistics business, the earning potential, staff recruitment pool and overall business prosperity are all positive attributes of the Netherlands.

Setting up a logistics business in the Netherlands offers the potential to work across numerous industries that have a strong presence in the country. These include food processing, chemicals, petroleum refining, high-tech, financial services, the creative sector and electrical machinery, with logistical expertise required across each.


The logistic real estate market of Ukraine has been seriously damaged during the military aggression on the part of the Russian Federation. Warehouses are subjected to targeted attacks, as they are regarded by the aggressor as strategic objects, providing logistics, delivery of food and essential goods. On the territory of the Kyiv region, warehouse and logistics complexes with a total area of about 382,000 square meters were destroyed.

Almost 340,000 sqm of net warehouse space was either wholly or partially destroyed, comprising 22% of the total stock of warehousing space in the Greater Kyiv area (1.6 million sqm as of the end of 2021).

Among the storage facilities that were completely destroyed due to missile attacks and fires: Mirazh 1 (GBA 29,800 sqm), the main tenant of which was an electronics retailer, Komodor Logistics Park (GBA 68,900 sqm), a warehouse complex for Kuehne + Nagel (GBA 19,000 sqm), a distribution centre on the left bank of Kyiv (GBA 24,000 sqm), owned by the largest Ukrainian food retailer ATB; Prologistic Services complex (GBA 10,250 sqm), which housed the Lipton tea factory, Unilever, warehouse facility UTA Service (GBA 23,000 sqm), vegetable warehouse Vegi Trade (GBA 20,000 sqm), warehouse complex Vorzel Terminal (GBA 12,100 sqm) and Andakta (GBA 6,300), whose tenant was a pharmaceutical distributor. At the same time, a distribution centre in Kopylov village (GBA 30,460 sqm), owned by ATB network, one of the largest cold storage facilities in the region RLC (GBA 63,000 sqm), warehouse complexes West Gate Logistic (GBA 97,000 sqm) and Terminal II in Bucha (GBA 32,000 sqm), owned by Dragon Capital investment company, and pharmaceutical warehouse Trans West (GBA 9,500 sqm), located in Milaya village were partially destroyed. Among the main tenants of the warehouse West Gate Logistic were Bohnenkamp Ukraine, Good Wine, Ekol Logistics Ukraine, Logistic Plus, Watsons, SAVService, DC Ukraine and Mary Kay. The total area of the above-mentioned warehouses subjected to partial destruction is 164,000 sqm.

The storage facilities located along the M-06 highway suffered most of all. Warehouses and logistics complexes that were located along the Warsaw highway (M-07) near the towns of Bucha, Gostomel and the Vorzel settlement in the Buchan district also suffered significant damage. Zhytomyr direction (M-06) was the most popular for warehouse construction and by the end of 2021, the total area of warehouses in this direction was over 290,000 sqm, while for Warsaw direction (M-07) the total area of warehouses located along this route was approximately 90,000 sqm. Comparatively less destruction of warehouse facilities occurred in the Chernigov direction (M-01).

The analysis of the destruction of storage and logistics facilities in the Kyiv region indicates that this was deliberate destruction by the Russian army to cut off Ukraine's most important logistics chains.

In recent years, the demand for warehousing space remained at a fairly high level. Thus, the destruction of 22% of warehouse space only in the Kyiv region is evidence of the forced relocation of logistics and warehousing hubs to other areas of Ukraine, where there is a competitive quality supply, infrastructure for accommodation, and prices that match the quality of real estate, as well as local authorities that encourage and promote tenants to relocate. Since the Kyiv region has lost sufficient supply due to military action to provide accommodation for all players who plan to return to the de-occupied region, Vynnitsa, Khmelnytskyi, Ternopil and other regions are becoming popular locations as a counterweight to the western region.

Under normal market conditions for the recovery of the sector in the regions that have suffered significant losses as a result of the Russian aggression will take 1.5-2 years.

We see a big potential for logistics business growth after the war and nowadays we see prospective projects that are already underway. Zammler to build a 60,000 m2 class "A" logistics complex in the Kyiv region for $34 million. EBRD to invest $24.5 million in the construction of the industrial park M10 Lviv Industrial Park (Western Ukraine).

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