Czech Business & Trade 3/2018

CZECH BUSINESS AND TRADE
Wherein can you see opportunities or
dangers in logistics?
Logistics is currently experiencing good
times, because the economy is growing and
so is demand for the management of material
flows into production and the physical
transfer of products to consumers. Global
trading opportunities open up great opportunities
to firms whose business it is to
provide courier, express and parcel delivery
services. In distribution, logistics is directly
influenced by the depth of assortment, i.e.
the number of different products in the particular
sector. The customer has the choice
of buying similar products from different
manufacturers. In the case of natural persons,
the volume of goods ordered from
e-shops is increasing and their deliveries
to consumers are partly responsible for the
growth of road transport.
Logistics is negatively influenced by an inadequate
transport infrastructure. This is probably
the greatest threat. The basic motorway
network and the corridors are not completed.
Neglected maintenance during the past
20 years has led to various traffic restrictions
due to repairs and the modernisation of the
infrastructure. Detours are becoming more
frequent and are often in a bad condition,
so that the full loading weight of the vehicles
cannot be used, speed must be limited,
etc. All this incurs additional costs to haulers.
This situation can be described as business
restriction, not to mention the increase in
fuel prices and the envisaged introduction
of toll payment on certain up to now free
first-class highways used in long-distance
and interstate haulage.
The latest trend is the growing requirements
for storage halls by their renters.
What is currently most in demand?
In the case of industrial property – new
logistics centres – renters are increasingly
calling for built-to-suit projects, realised so
as to precisely meet clients’ needs. Developers
select localities in the Czech Republic
for domestic and foreign clients, precisely
meeting their requirements, and build
logistic centres there ready for use. In the
case of these projects, the client designs
the structure to precisely meet his specific
requirements, including the technological
equipment and construction modifications
of the interiors of the halls. In 2017, the
largest area of completed surfaces, approximately
696 000 sq. m, was offered for immediate
use in the industrial property market
since the 2008 economic crisis. In spite of
the large number of completed surface areas,
the vacancy rate at the end of the year
showed a decline, dropping to 4.1 %, i.e.
0.6 % less than in 2016. At the end of 2017,
the total volume of modern A-class industrial
property in the Czech Republic designed
for rent increased to 6.98 million sq. m.
There was a very good start to the year 2018
and there have been no signs of any slowdown.
However, as a result of the situation
where demand surpasses supply, rentals are
expected to increase.
Do you observe any trends influencing
logistics services in the Czech Republic?
Modern technologies are being introduced
much more readily than before. For
example, as regards picking operations,
the aim is to get the information before
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