Investment in logistics via Hungary

Two logistics companies from Hungary, Rewico Logistics Kft and Delog Debrecen Logistic Center & Industrial Park Kft, have decided to expand their activities to include Romania. The move comes shortly after Rynart, a Dutch logistics company with a strong position on the Hungarian market, made a similar announcement, making Romania a natural step of expansion in the field of logistics after Hungary.

“Rewico Logistic Kft plans to expand its activities by setting up new logistics centres in Romania and Ukraine,” said Thomas Schleife, co-owner of the Hungarian Rewico Logistic Kft, as quoted by Budapest Business Journal.

Rewico wants to run its own companies in countries neighbouring Hungary, such as Romania, and not merely establish business relationships with local companies, continued Schleife.

Rewico representatives added that the necessary investment funds would be secured by the Reqico Logistik International parent company, which has headquarters in Germany.

Delog, a Hungarian company that runs the largest logistics centre outside the Hungarian capital, also plans to expand its activities to Romania. Delog has already established a presence in Romania through its 2,000 square metre warehouse in Oradea and an office in Timisoara, representing investment of 300,000 euros.

The investment announced by Rynart is likely to be the most significant by an international company that comes via Hungary. The Dutch company, which had a turnover last year of 60 million euros and boosted by good results on the Hungarian market, announced it would build a 35,000 square metre distribution centre in Romania to be financed with a loan of 11 million euros from Netherlands Development Finance Company (FMO).

According to analysts, logistics services will attract significant investment to the Romanian market in the coming period. It is the year-by-year development of multinational-run businesses in Romania that is creating the demand for high-quality logistics services, and major players on the logistics market are expected to appear on the Romanian market in the coming years.

The best-known logistics operators currently doing business in Romania include Geodis Calberson and Tibbett & Britten Delamode, running logistics operations for the largest retail network on the market, Metro Cash & Carry Romania SRL.
ionut.bonoiu@zf.ro