Month: January 2020

The industrial sector out-performed all other UK property asset classes, partly driven by very strong rental growth in London and key South East locations, according to Colliers International’s annual Industrial and Logistics report. As a result, strong market fundamentals are expected to push the sector forward in 2020 as occupiers focus on streamlining supply chains, it claims.

The report reveals that the sector has witnessed strong rental growth for several years now and, consequently, this is expected to moderate in 2020, although logistics units located in densely populated areas will reach above average returns.

Andrea Ferranti, Head of Industrial and Logistics Research at Colliers International commented: “Supply has increased and now stands at around 36 million sq ft. However, looking at 2019, in which 9 million sq ft of new-build space was completed, the market remains well-balanced in terms of supply and demand, with developers seemingly unfazed by the current economic jitters. In this respect, Colliers’ records show that around 5.6 million sq ft of new supply is currently under construction in January 2020.”

Demand for Industrial & Logistics space in 2019 remained strong with take-up reaching 30 million sq ft for the year, exceeding the 10 year annual average by 17 per cent, but 14 per cent below the record breaking 2018.
In terms of take-up by type of unit, design and build accounted for a 53 per cent share of total, followed by second-hand units at 27 per cent, the lowest share on record, with take-up for speculative distribution warehouses at 20 per cent.

When analysing take-up by deal count and size band, most deals occurred within the 100,000-199,000 sq ft size band. However, over the past three years, we’ve seen the return of the mega box as active retailers and 3PLs seek to capitalise on the growth of ecommerce while reaching greater economies of scale. There has been eight large distribution warehouses in excess of 500,000 sq ft speculatively delivered, or under construction since 2017 and this trend is set to persist.

Based on current market dynamics, total space under offer, and the wider consumer and technological landscape, Colliers predicts that 2020 will witness the release of pent up demand which could translate into a total take-up close to the record-breaking activity of 34.6m sq ft witnessed in 2018.

Len Rosso, Head of Industrial and Logistics at Colliers International said: “2019 was a very challenging year for business planning. Political uncertainty and exchange rate volatility made it extremely difficult for businesses to commit to large capital expenditures. Nevertheless, the sector has been supported by strong occupational demand driven by retail occupier’s requirements to future-proof supply chain operations. In this regard, provisional take-up figures for large distribution warehouses greater than 100,000 sq ft topped 30m sq ft, in line with the five-year average.”

Andrea Ferranti, Head of Industrial and Logistics Research at Colliers International added: “Looking forward, investors will continue to search for yields in a low-rate environment, driving further capital growth for the sector in 2020. We expect London assets to capture most of this upside and the market will see more UK wide portfolio transactions as international buyers look for ways to enter the UK industrial sector.”

DP World London Gateway welcomed the Maritime Minister Nusrat Ghani MP on a visit to the port and logistics trade hub.

During her visit, the Minister met with Ernst Schulze, DP World UK CEO and members of the senior management team. The visit was a very useful opportunity for the Minister to see first-hand how DP World London Gateway plays a significant key role in supporting the UK economy as global trading hub.

The Minister was particularly keen to get an understanding of the sustainability initiatives employed at the terminal including the environmentally friendly infrastructure and equipment employed at London Gateway. This environmentally conscious approach enables DP Word London Gateway as an integral part of global trade, to help make global supply chains sustainable.

At the London Gateway Logistics Park, the Minister was also shown warehousing that has achieved BREEAM accreditation and meets the world-leading sustainability standards for buildings and infrastructure.

Ernst Schulze, UK CEO, DP World, said: “We were delighted to welcome the Maritime Minister. It was a great opportunity to show her the operations here, DP World London Gateway sits at the heart of the largest consumer market in Europe with robust network connections into the hinterland. DP World is the only operator in the country to have two deep-sea terminals generating significant national economic benefit. We were able to show the Minister the scale of investment we are making here in the UK.”

 

Large intralogistics projects for airports, parcel centres, high-bay warehouses or other warehouse logistics facilities must reconcile several competing requirements. With the LogiDrive concept for drive technology, NORD DRIVESYSTEMS takes a comprehensive TCO approach that combines energy efficiency and the reduction of variants with optimal system solutions for intralogistics.

Conveyor belts in intralogistics installations for airports, warehouses and parcel centres are often designed for the expected maximum load and with corresponding safety factors. This often results in drives that are oversized for the application. However, in real operation, such systems achieve the maximum load only with a small proportion of the conveyed items. As a result of such design, the drives only operate in the inefficient partial load range for most of the time. With the LogiDrive concept, NORD counteracts this trend with a specific reduction of variants using modern synchronous motors. In comparison with conventional asynchronous technology, these have an improved energy consumption performance in the partial load and partial speed ranges. Therefore, they are more energy efficient in these operating points and also keep efficiencies at a high level, even in case of overdimensioning through a reduction of variants. This results in a low total cost of ownership (TCO).

Four of five drive variants not required
NORD frequency inverters can control the output speed via a frequency range of 25 to 100 Hz. Thanks to their high overload capacity modern synchronous motors have a single motor type that can be used instead of different motor sizes. Dependent on the performance requirement, it is operated by its inverter with different frequencies. As an example, in a NORD project for baggage transport at an airport with 700 drive units, the number of variants could be reduced by about 80%. Eight variants of the 11 used drive configurations related to a standard system solution, the NORD LogiDrive. Proven standard solutions are tested and can be safely used.

Cost reduction thanks to standardisation
The LogiDrive systems from NORD are highly efficient, extremely easy to maintain and install thanks to plug-and-play technology, and result in a considerable reduction of spare part stocks during operation. The whole concept is designed for easy planning and commissioning. The standardised geared motor variants are specially designed for intralogistics, parcel logistics and airport technology, and are particularly suitable for reducing the number of variants. The compact design saves space and the lightweight aluminium housing enables weight savings of up to 25%. LogiDrive drive units comprise an IE4 synchronous motor with rated powers of up to 5.5 kW, a 2-stage helical bevel gear unit and a NORDAC LINK frequency inverter to be installed close to the motor. With class IE4 motor efficiency and system efficiency to class IES2, the drive units achieve excellent overall efficiencies – especially in the partial load and speed range.

Shipping container innovator CakeBoxx Technologies has launched ‘ThermoBoxx’ refrigerated containers. It follows on the heels of both their 12’ wide hi-cube refrigerated two-piece CakeBoxx containers delivered to a US Government agency early last year and their purpose-built CoilBoxx rolled out to the steel and aluminum coil industry last Spring.

CakeBoxx Technologies designed these new models as a time saving, cost-effective solution for the movement of temperature-sensitive cargos that would normally be difficult to load and unload through conventional reefer container doors due to their size, shape or weight. The side and top loading capability is a key differentiation from conventional containers and provides a strong value proposition for speed of loading, product safety, security and loss prevention.

The ThermoBoxx line of refrigerated containers incorporates the company’s unique two-piece deck and lid design and will initially be available in both 20’ and 40’ hi-cube versions. As with all CakeBoxx models, fully customized versions of the ThermoBoxx are expected to follow shortly, including both 45’ and 53’ hi-cube models. The new ThermoBoxx containers combine the industry standard cargo loading doors on the rear end with the removable CakeBoxx lid. This combination of loading options will enable shippers to load cargos from the top or side by removing the CakeBoxx lid (with full 360° access to the deck) or through the rear doors as with conventional reefer containers.

 

Paragon Software Systems has introduced a zoning tool in the latest version of its routing and scheduling software. Using Zone Editor, transport operations will now be able to further streamline planning processes by automatically factoring in geographic restrictions such as Low Emission Zones.

The new functionality will allow geographic zones to be specified and stored within Paragon’s routing and scheduling software to help manage the increasing complexity of urban distribution plans. For example, transport planners will have the ability to create areas where low emission vehicles must be used for all deliveries. The tool includes pre-configured zones for London’s Congestion Charge, Ultra Low Emissions Zone (ULEZ), London Lorry Control Scheme (LLCS) and all red routes to support deliveries within the capital.

Zone Editor will also simplify planning for regions where transport requirements are handled by a subcontracted logistics partner. By placing a zone around these areas, it will enable any deliveries that fall within them to be automatically allocated to appropriate third-party vehicles, without the need for these requirements to be manually managed.

William Salter, Managing Director of Paragon Software Systems commented: “Our customers are faced with ever more complicated transport planning requirements. Paragon’s software development roadmap aims to provide solutions that simplify the planning process, making life easier. The latest functionality means that bespoke zones, of all shapes and sizes, can be drawn, stored and then displayed over the maps within the routing and scheduling software, giving customers another layer to their transport planning. This will help reduce planning time and create the most accurate and achievable routes possible.”

The Zone Editor functionality is available in Version 6.15 of Paragon’s routing and scheduling software. It includes a number of enhancements that will help Paragon customers to further streamline the transport planning process; make use of resource usage data such as driver hours worked; and gain added visibility of vehicle and driver performance.

Logistics automation specialist, Cimcorp, has established an office in Spain in response to growing interest in its robotic automation solutions, and has appointed Jarkko Hakkarainen as General Manager. The manufacturer and integrator of turnkey robotic handling solutions has also formed a new subsidiary – Cimcorp Iberia, S.L., based in Madrid – in order to serve the Spanish market better.

“Our decision to expand our presence into Spain is a logical step at this point,” commented Tero Peltomäki, Cimcorp’s Executive Vice President, Operations and Technology, “and supports our growth strategy. We have a well-established customer base in Spain and our material handling systems are in high demand there.”

In spring 2019, Cimcorp secured an order worth over €120 million to automate the distribution of fresh food at four new distribution centres for the Spanish supermarket chain, Mercadona. “With this being Cimcorp’s largest ever order in the intralogistics market,” explained Peltomäki, “this is the right time to establish a base in Spain, to ensure that we meet the evolving needs of Mercadona and other customers, and that we allocate our resources in the best possible way.” Cimcorp has previously supplied automation to Mercadona, to another Spanish supermarket chain (Eroski) and to several of its tyre-manufacturing customers in Spain, including Michelin.

Tero Peltomäki commented: “Local presence in Spain will enable Cimcorp to strengthen relationships with our existing customers, as well as to create new partnerships. The central location of our Madrid office and its excellent transport connections to all our customer sites will mean smooth project management and timely response to requests for customer support.”

Cimcorp has appointed Jarkko Hakkarainen (above) as General Manager of Cimcorp Iberia. “Jarkko Hakkarainen has over 20 years’ extensive experience in international business,” said Tero Peltomäki. “In addition to responsibility for project implementation, he has worked successfully in new technology development, sales and service, and is praised for his leadership skills. Hakkarainen is target-oriented, committed to Cimcorp’s growth strategy and has a strong track record of business results. He is also fluent in both Spanish and Portuguese, so I cannot imagine a better person to lead Cimcorp Iberia.”