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St. Modwen Logistics Bolsters Teams

Posted on by David Priestman

St. Modwen Logistics (“St. Modwen”), one of the UK’s leading logistics developers and managers and a Blackstone portfolio company, has bolstered its Portfolio and Development teams after a series of new hires and senior promotions.

Following several acquisitions in the North West, St. Modwen has appointed Howard Hill as Director of Asset Management for the region. Howard joins from Harbert Management Corporation, a US-based alternative asset manager, having previously spent nine years in CBRE’s Asset Management team. As well as managing St. Modwen’s existing portfolio of assets, Howard will also work closely with the Transactions team to identify and execute opportunities to expand its portfolio in the North West.

Howard will be supported by James Berry who joins St. Modwen as an Asset Manager for the North West. James has spent the past five years specialising in Industrial and Logistics Agency, most recently as a Senior Surveyor at CBRE based in Manchester. In his new role, James will oversee the business plans for several of St. Modwen’s assets in the North West, optimising their operations and liaising closely with customers to improve asset performance.

Elsewhere, St. Modwen has promoted two members of its Development team as the company looks to realise a c.21m sq ft pipeline of modern, sustainable warehousing as part of its growth strategy.

Hollie Howe becomes Planning Director having played a key role in bringing forward a number of strategic sites. These include St. Modwen Park Gatwick, where planning consent is in place to deliver 115,000 sq ft of Grade A warehouse space close to the airport. Hollie is also leading on planning promotion of the 120-hectare site at Burnt Mills in Basildon as well as the planning application for the development of 1.2m sq ft at Brentwood Enterprise Park. Hollie joined St. Modwen in 2021 having spent the previous 10 years working for national housebuilders and Savills.

Meanwhile, Carys Allen is promoted to Senior Development Manager and will lead on projects in the South West. Carys, who joined St. Modwen in January 2022, plays a key role in sourcing and securing new sites for development and is leading the delivery of a 342,000 sq ft unit in Chippenham – the company’s largest speculative unit development to date – on a 72-acre site in the established South West logistics triangle.

Lee Nash, Head of Development at St. Modwen Logistics, said: “We have ambitious plans to expand our portfolio over the next three years, and we are continuing to invest in our development and asset management capability to support our growth strategy. Hollie and Carys both have a key role to play as we navigate the current challenges around planning and development, and the arrivals of Howard and James further bolster our asset management team in the North West where we are supporting businesses at all stages of the supply chain.”

DTZ Investors Acquires Logistics Park

Posted on by David Priestman

DTZ Investors has completed the acquisition of Coventry Logistics Park for £140,415,000, one of the highest quality multi-let logistics schemes in the UK.

Coventry Logistics Park comprises three newly constructed logistics units with a total GIA of 784,989 sq. ft on a site extending to 43 acres. The Property is fully let to three tenants; DHL, Geodis and Viad, with a weighted average unexpired lease term (WAULT) of 11.81 years and was fully pre-let during construction. The asset generates a rent of £6,540,132 per annum and is secured against strong tenant covenants with all three leases comprising attractive rent review mechanisms capturing the higher of open market value or CPI index linked increases.

The property has achieved one of the highest BREEAM ‘Outstanding’ ratings in the UK and all three units have A EPC ratings. Other key sustainability credentials include photovoltaic panels situated on all three roofs, air source heat pumps used as the primary source of heating for the warehouse areas, a high provision of electric vehicle charging points and both communal and demised cycle storage across the site. The asset recently won Best Overall Scheme in the Logistics Park category at the IAS Awards 2023.

Coventry Logistics Park is located to the north east of Coventry city centre, a core logistics location within the context of the ‘Golden Triangle’. The site is strategically situated 0.7 miles from Junction 2 of the M6 motorway which provides excellent connectivity to the M69, M42 and M1 motorways. The core nature of the location is supported by the strong tenant line up.

Tom Royston, Director at DTZ Investors commented: “Coventry Logistics Park is a high quality multi-let logistics asset that is well aligned to the fund’s investment strategy. The property benefits from an excellent specification and is market leading in terms of its sustainability credentials. The low average passing rent, in conjunction with reversionary potential and the attractive rent review mechanisms, results in the asset forecast to deliver an attractive risk-adjusted return.”

James Fairweather, Head of Industrial & Logistics Investment at BNP Paribas Real Estate added: “We are delighted to have advised DTZ Investors on this prime logistics transaction which reinforces the desirability of ‘best-in-class’, sustainable, logistics property in a market constricted in supply. Coventry is a premier logistics location as demonstrated by the depth in occupational demand and continued rental growth, particularly for the highest quality units which this property offers.”

BNP Paribas Real Estate advised DTZ Investors on the purchase whilst DTRE acted for Bericote and institutional investors advised by J.P. Morgan Global Alternatives.

Silo with Automated Pallet Shuttle Storage

Posted on by David Priestman

Dematra is a pioneering logistics services company renowned for its commitment to excellence in the industry. Its state-of-the-art, highly advanced 46-meter-tall stow Silo is the result of a highly successful project with the stow Group and demonstrates the future of warehousing and distribution. For this project, unlike most other automated warehouses, Dematra decided to work with shuttles instead of cranes.

The ground-breaking project showcases the pinnacle of automated technology in warehousing: the awe-inspiring 46-meter-tall stow Silo boasts the capacity to house nearly 80,000 pallets effortlessly and is equipped to handle 12,000 pallet movements within a 24-hour timeframe – an international first. Such a level of automation and productivity sets this warehouse apart from conventional counterparts and is set to revolutionise the logistics landscape.

Partnering with the world-renowned stow and the company’s stow Robotics business unit, Dematra has taken warehousing to unprecedented heights with the implementation of the stow Atlas® 2D pallet shuttle system. This cutting-edge automation technology is the backbone of the Silo, ensuring optimal efficiency, speed, and precision in the handling of goods. Dematra specialises in the fast and accurate distribution of various goods within Benelux in addition to operating several modern warehouses, where it manages the entire logistics chain of its customers. This new fully automatic high-bay warehouse on the De Prijkels industrial estate in Nazareth, a town in the Belgian province of East Flanders, cost 50 million Euros.

At the heart of this impressive warehouse are the stow Atlas® 2D shuttles, ingeniously designed to move and organise pallets with unrivaled proficiency. The Atlas® 2D pallet shuttle system consists of a number of Atlas shuttles, the specially designed stow Shuttle-rack system and the local controlling system (STC). The stow Atlas® 2D is a self-powered pallet carrier, which can transport pallets on both the rails of the storage lanes and the rails of the main lanes that run across the storage lanes. The so-called crossings or intersections between the storage lanes and the main lanes are designed for a smooth transition of the stow Atlas® 2D shuttle, either unloaded or loaded.

The automatically controlled shuttles can move pallets horizontally in a fully automatic way and without interfering with each other. The unparalleled flexibility offered by the stow Atlas® 2D shuttles is one of the unique selling points (USPs) of this astounding facility. The dynamic capabilities of the shuttle system means the client can swiftly adapt to the ever-changing logistics requirements of its valued customers, ensuring their goods are efficiently stored and easily accessible.

Meeting the design challenge

Construction of the Silo commenced in early November 2021 and on 1 April this year it officially entered operation. Dematra relied on the knowledge and experience of qualitative and reliable partners that together built this high profile project. The challenge for stow was to be able to deliver a fully scalable, flexible and reactive in-and-out storage system with high throughput, using about 40 Atlas 2D pallet shuttles in a 46 meter Silo.

In designing a compact, extremely stable and flexible in-out storage system with Atlas® 2D shuttles, stow has accomplished two key things: on the one hand the company has built a very large Silo for 80,000 pallet positions that, at 46 metre high, is a significant achievement in itself. In addition, the Silo was built on a very erratic site, resulting in the building an irregular shape rather than a standard rectangle or square building, which means cranes could not be used.

So the second achievement for stow was to install Dematra’s choice of the Atlas® 2D pallet shuttle system for storing and retrieving pallets in deep lanes. Shuttles are much more flexible than cranes, which need a lot of space and are unwieldy.

The Atlas 2D shuttles at heart of the system carry pallets to and from any of the 80,000 storage locations through a total of six main entry points per floor. In this way, the shuttle can change between storage lanes without intervention of an operator or any other means of transportation. There are about 40 shuttles operational here continuously, transporting pallets in large numbers between the front zone of the building and the actual storage area.

These shuttles, which are controlled automatically and can be used 24 hours a day, do no less than 12,000 pallet movements in an 24-hour period – far beyond the capabilities of a conventional warehouse. If there is a lot of work, additional shuttles can be rented if necessary to speed up the throughput even more.

stow is the first, and currently only, company in the world that can manufacture and install this 2D shuttle system. Adding a further unique aspect to the project is the fact that project is the first time stow 2D shuttles are operating in a Silo of this size.

Dematra wanted a very large system that would deliver high density storage of a large number of pallets. Stow’s design was able to accommodate 80,000 pallets on a surface area that is not only relatively very small but one that is also very erratic. Thanks to its height, the building barely takes up 10,000 square meters. Without the height, 5 to 6 hectares would be required, so the ecological footprint is a lot smaller.

Dematra also wanted a very flexible and scaleable system. The throughput of the system is very high due to the number of shuttles that are operational. Throughput can be increased if necessary, simply by adding more shuttles to the system, making it a very flexible system. Finally, Dematra wanted a very reactive system: pallets are only taken out of the system when trucks arrive at the loading dock.

In summary, the key benefits of the stow Silo solution are:
• Proving Dematra with ability to house nearly 80,000 pallets effortlessly
• Providing leading performance, handling 12,000 pallet movements within a 24-hour timeframe, which could not be achieved conventionally
• Providing the required density of storage within a limited compromised footprint
• Providing a system that is flexible and scaleable, allowing adaptation to ever-changing logistics requirements
• Providing a reactive system that moves pallets only when required for greater efficiency
• Provides fast, accurate and efficient handling of goods

Dematra’s 46-meter-tall stow Silo is a true marvel of automation and is set to redefine the concept of warehousing, embracing automation, efficiency, and adaptability like never before. With the stow Atlas® 2D pallet shuttle implementation, this fully automated wonder will undoubtedly set new industry standards, placing Dematra at the forefront of innovation in warehousing and distribution.

Logistics Real Estate Cycles to be less Volatile

Posted on by Keith McKinley

Prologis, a global leader in logistics real estate, today released new research findings, “What’s next: Four forces shaping the logistics real estate cycle”.

Businesses moving goods across the globe are still digesting and trying to cope with the rapid changes in economies, supply chains and logistics real estate affected from the past three years. In
this report, Prologis Research updates our views on demand, supply and the long-term outlook for logistics real estate.

Prologis Research finds four forces shaping the logistics real estate cycle at a global scale:

• Future logistics real estate cycles will be less volatile because of the multiplier effect on demand (20%+ more logistics space needed for every unit of GDP vs. pre-pandemic) and structural discipline in supply.
• Service levels are fuelling demand again. Customer network expansion needs are rooted in offering the speed and choice demanded by the end consumer to compete for revenue.
• The future of supply chain is resilience to persistent disruption through higher inventory carry, diversification of sourcing and near-shoring. We are now past the pandemic bullwhip, but long-range planning is subject to economic headwinds.
• New building deliveries will contract by 35% or more in the U.S. and Europe in 2024, creating a window for positive demand to take market vacancies further below historic norms in late 2024 and 2025.

The research underscores Prologis Europe’s ability to support business growth and supply chain expansion by being where their customers need them to be — and leveraging access, healthy balance sheet and scale to support them at every step of their warehouse journey, be it built-to-suit developments, energy efficiency solutions or operational optimisations.

Read the full report here.

Warehouse Portfolio in Southeast Europe

Posted on by David Priestman

As one of the leading transport and logistics providers in Southeast Europe, cargo-partner has traditionally placed a strategic focus on this region. In recent months, the company has upgraded its warehouse facilities in Croatia, Slovenia and Türkiye.

Expansion in Zagreb: from 12,900 to 17,500 m²

In late August 2023, cargo-partner expanded its warehouse in Zagreb by 4,600 m² due to rapidly growing customer demand in Croatia. The warehouse was opened in June 2022 and is located ten minutes from the international airport in Zagreb. The latest expansion brings the logistics center’s capacity from the previous 12,900 m² to a total of 17,500 m². The modern facility now includes 20,000 pallet slots as well as a 900 m² mezzanine where the local team provides e-fulfillment and value added services. In addition to short- and long-term storage, the Zagreb warehouse offers daily pallet and parcel distribution to EU- and non-EU countries, a customs bonded area and customs brokerage services. Following the expansion, the warehouse now contains 28 truck docks and three drive-in gates for oversized shipments.

“As we celebrate 40 remarkable years of cargo-partner, it is important to recognize the invaluable role Southeast Europe has played in shaping our company’s enduring success. This expansion is a testament to the extraordinary journey we’ve embarked on together with our customers and our expert teams throughout the region,” said Stefan Krauter, CEO & Founder of cargo-partner.

Zoran Starcevic, Managing Director of cargo-partner in Croatia, stated: “The added storage capacity in Zagreb will allow us to stock a wider range of products – from foodstuffs to pharmaceuticals and a variety of other goods – and respond promptly to market fluctuations and customer needs. Thus, the expansion not only strengthens our market position, but also reinforces our promise to deliver top-notch products and services to our customers.”

Otto Zsivkovits, Regional Director SEE, added: “Our expansion in Zagreb is part of our strategic plan to strengthen our footprint in Southeast Europe, as this region holds immense importance for cargo-partner. In this context, Zagreb serves as a gateway connecting Eastern and Western Europe. As we continue to expand our network, we benefit from growing synergies between our logistics centers in Croatia, Slovenia, Türkiye, Bulgaria, Serbia, and Bosnia and Herzegovina.”

Rooftop delivers clean energy in Ljubljana

Earlier in August, cargo-partner installed a photovoltaic system with 1,192 panels on the roof of its iLogistics Center Ljubljana. The system will produce an estimated 575 MWh of energy per year, covering 34 percent of cargo-partner’s energy consumption in Slovenia. In addition, the solar power plant will save 146 tons of CO₂ annually, which is equivalent to planting 6,698 trees. The iLogistics Center Ljubljana was opened in 2019 and expanded in 2022, bringing its total capacity from 25,000 m² up to 39,100 m².

New iLogistics Center in Istanbul

In July 2023, cargo-partner opened a new iLogistics Center with 20,000 m² of warehouse space in Istanbul. With 25,000 pallet slots and 17 loading docks, the facility provides ideal conditions for customs bonded warehousing, handling of oversized goods and high-tech products, fast trans-shipment and distribution as well as comprehensive e-fulfilment services, including a parcel pickup and return point. In addition to the warehouse facility, the building also contains modern office spaces, providing the new base of operations for cargo-partner’s head office in Türkiye.

Strong warehouse network in Southeast Europe

Aside from these recent expansions, cargo-partner has long had a solid warehouse network in Southeast Europe. In Bulgaria, the logistics provider’s iLogistics Center Sofia offers 22,000 pallet slots on 16,700 m². In Serbia, cargo-partner maintains a strategically located warehouse near the Belgrade airport with 8,000 m² of storage space. In Bosnia and Herzegovina, cargo-partner operates a 1,000 m² warehouse, to which the company has recently added a separate 300 m² area for temporary customs bonded storage.

Line Marking and Floor Tags in new Healthcare DC

Posted on by David Priestman

The new DSV distribution centre (DC) at Brackmills Gateway is an important milestone in DSV’s ambitious growth plans within the pharmaceutical and healthcare sector in the UK and Europe. The facility, a 380,000 sq. ft. temperature controlled DC, is BREEAM (Building Research Establishment Environmental Assessment Method) ‘Outstanding’ certified and is located in the prestigious Midlands ‘Golden Logistics Triangle.’

“This advanced DC will add key capacity to our healthcare offering and ensure a more robust supply of healthcare and pharmaceutical products to the sector,” enthuses DSV Brackmills’ assistant general manager, Tom Oake. He continues, “Not only will it provide a more flexible, high quality service, but it also incorporates best practices in waste management and energy conservation to improve the facility’s carbon footprint and environmental impact.

“Both health & safety and operational efficiency are mission critical to the business. It was vital, therefore, that all the DC signage and line marking – both internal and external – was first class. DSV had not used inotec before, however, in previous roles I had experienced excellent results working with them and so felt it would be advantageous to see what they could offer. As a relative newcomer to DSV, I wanted to ensure we signed up with the best possible partner to deliver our line marking and signage.

“Consequently, we put the contract out to tender to three companies, including inotec and the incumbent supplier. The team here at DSV were impressed with the professional way inotec approached the project. All the people at inotec have a massive amount of experience in the logistics market and their professional, almost understated approach is very refreshing.”

A partnership based on trust

“After due consideration, the decision was made to partner with inotec. We felt we could trust them to work with us to deliver the best possible solution for the Brackmills site. Whilst competitive, their price wasn’t the cheapest, but inotec’s solutions are first class and you have the peace of mind that they are durable and will stand the test of time.

“It was great to have their knowledge and experience to fall back on when planning the line marking and signage. With a large DC like our Brackmills site, it can be challenging to visualise how all the walkways, forklift truck lanes, meeting areas and signage will work together. The guys at inotec were able to add clarity to our initial plans and their installation team flagged up any issues they felt needed attention, they didn’t just blindly follow instructions.

“With regard to inotec’s floor tags, they are a big bonus. My experience is that other suppliers tend to use stickers on the floor, but they just get ripped up almost immediately. Back in 2007, at a previous company, I had inotec install floor tags and those original tags are still working perfectly today. Shortly after inotec installed the 36 floor tags in the Brackmills site, we had visitors over from Belgium. They were so impressed with these tags they took pictures to get their supplier to install something similar in their own warehouse.“

Branded as Floortags®, inotec’s floor tags are constructed using an extremely durable aluminium plate with the barcode or readable text photocomposed into the metal. During installation, the plate is recessed slightly below the floor surface and sealed with a tough polyester resin. The strong materials make the Floortags® extremely resistant to damage from heavy truck movements, foot traffic and industrial cleaning products.

A professional approach with quality products

Oake added, ”Over the years I have built up a strong working relationship with inotec’s sales manager in the south, Steve Towler. He has a no nonsense approach; he takes the brief, provides a quote and then is happy to answer any questions you may have. There’s no hard sell, no hassling, just straightforward advice, facts and figures to help you make the right decision. In terms of line marking, inotec uses its ‘Rapidshield’ paint system which is designed to withstand heavy traffic over a projected lifespan of five years. The benefit of the system is the ultraviolet topcoat which cures instantly, reducing downtime to under two hours. That means painted areas can be handed back within a working day for immediate use. All in all, here at DSV we are delighted with the work inotec has done in the Brackmills DC. There is no doubt we will be working with them on future sites as we expand our network of healthcare DCs in the UK and Europe” concludes Oake.

Customers Fuel Logistics Property Growth

Posted on by David Priestman

Potter Space, a market leader in the small to mid-box (sub 100k sq. ft.) industrial and logistics property sector, has recently welcomed a new customer to its Ely business park in Cambridgeshire, UK.

Moving into Unit 24 at the Cambridgeshire business park, MLH Transport is a leading transport operator delivering freight services throughout the UK and Europe, and will occupy a warehouse housing expanded pallet and vehicle storage operations. The move continues the growth of Ely as a strategic location for Potter Space, alongside its four other business parks nationally.

Alongside MLH, Potter Space has also agreed a five-year lease extension for longstanding customer, International Decorative Surfaces (IDS), formerly part of Saint Gobain. The UK’s largest distributor of decorative surfaces such as flooring and worktops, IDS already occupies over 85,000 sq. ft. of industrial space at the Ely business park, with a new agreement in place to expand their footprint, taking their space close to 100,000 sq. ft.

Having both excellent road and rail links and being close to both the ports of Harwich and Felixstowe, Potter Space Ely is within easy reach of Northampton, Norwich, London, Cambridge, Newmarket and Peterborough. Stretching over 70 acres, the industrial units vary in space from 3,000 sq. ft. to 83,000 sq. ft., providing homes for a wide range of businesses.

Chris Collins, head of asset management at Potter Space, said: “It’s always exciting to welcome new customers to our parks, but it’s even better when we can extend our long-term relationship with another at the same time. At all of our sites, we strive to provide a home for business for our customers and we can’t wait to both welcome MLH Transport, and see IDS develop even further.”

Debbie Davis, general manager at International Decorative Surfaces Ely, said: “Renewing the lease for our units and increasing our occupied space at Potter Space Ely has been a crucial part of our growth plan. The business park provides all the space and security that we need to carry out our operations, safe in the knowledge that we are in good hands. Potter Space is a supportive partner, which goes above and beyond, all the time.”

Potter Space has invested £18 million into growing its nationwide property portfolio over the next five years to meet the demand for small to mid-box warehousing space across the country and is currently developing 250 acres of land. Potter Space’s five business parks occupy a total of 1.6 million sq. ft. across a range of commercial properties, including industrial units and offices, and are located in Ely, Ripon, Droitwich, Selby and Knowsley.

Potter Space owns, develops, and operates five business parks in Ripon, Droitwich, Knowsley, Selby, and Ely. The business manages more than 1.6m square feet of existing commercial space at close to 100% occupancy and with many long-standing customers. Knowsley, Selby and Ely business parks also have successful rail terminals, fully utilised by Potter Space customers.  Potter Space continues to aim for a minimum BREEAM ‘Very Good’ accreditation on all future buildings, prioritising sustainability, biodiversity, health and wellbeing across all 5 business parks. Providing customers with a ‘Home for Business’ is the number one priority for Potter Space.

Prologis adds 700,000 sq.ft. UK Warehousing

Posted on by David Priestman

Prologis UK, owner and developer of logistics property, has completed a £240m portfolio of development across London and the Midlands, bringing 627,724 sq. ft. of prime new UK warehousing space to the market across three strategically located sites, with a further 62,537 sq. ft. comprehensively refurbished in Birmingham’s strongest market.

The construction projects at Prologis Park Midpoint and Prologis Park Bromford Gate, both located in Birmingham, and at Prologis Park West London and Prologis Park Brooklands in Weybridge exemplify the business’ continued commitment to providing market-leading logistics property.

The new 163,754 sq. ft. unit, DC6 at Prologis Park Midpoint, has brought the total floor space of one of the UK’s most successful logistics parks to over 1.6 million sq. ft. and is located within the logistics “Golden Triangle” in the Midlands. Net zero carbon in construction, and with a BREAAM ‘Excellent’ rating and EPC A+, the new unit is located just eight miles from central Birmingham and has access to 11 motorway junctions within five miles, making it perfectly situated to support growing supply chain needs.

Similarly, the recently refurbished unit DC1 (62,537 sq. ft.) at Prologis Park Bromford Gate is situated just over three miles from Birmingham City Centre and as one of Birmingham’s most prominent and recognisable parks is easily accessible from the M6 from both junctions 5 and 6. The unit’s comprehensive refurbishment included enhancing the employee amenity and shower facilities, installing LED lighting throughout and providing EV charging provision to achieve an EPC A rating.

Turning attention to the London market, there has been an increased focus on the need for more high-density urban hubs to provide greater last-mile capabilities. In response to the growing needs of the industry, Prologis UK has broken ground on two key development areas within Greater London.

Strategically positioned to ensure access to the major consumer markets within West and Central London as well as the Thames Valley, two new units have reached completion at Prologis Park West London.

With a combined footprint of 339,569 sq. ft., units DC5 (195,720 sq. ft.) and DC6 (143,849 sq. ft.) stand as testament to Prologis UK’s commitment to setting standards in the industry. Beyond net zero in construction and EPC ‘A’-rated, both units also boast solar photovoltaics (PV) and will serve to help alleviate the increased need for high-density urban hubs that can provide greater last-mile capabilities. Both DC5 and DC6 are available immediately on flexible short term leases, a unique proposition in a competitive market.

Likewise, Prologis Park Brooklands DC1, achieved – BREEAM ‘Excellent ‘and EPC A+, is situated in a proven last-mile delivery location, serving Central and South London, with easy access to the M25, M3 and A3. The new 124,401 sq. ft. logistics facility draws upon a large and skilled labour pool from Weybridge and surrounding areas. Both Prologis Park West London and Prologis Park Brooklands are designed and built to meet the demands of high-performance operations.

Paul Weston, Regional Head at Prologis UK, said: “Our investment into such an extensive development programme goes to show the lengths to which we are prepared to go to service the market, and our customers. After listening to the market, we’re excited to be completing our new units that push the boundaries of what is achievable in the industrial and logistics sector. Having led the charge for sustainable and innovation in logistics property developments, we’re proud to continue our legacy of providing spaces that truly add value to our customers and communities.”

Nefab Opens Large Branch in Poland

Posted on by David Priestman

CTP, Europe’s largest listed developer, owner, and manager of industrial and logistics properties by gross lettable area (GLA), has leased nearly 11,000 sqm of industrial and warehouse space on a five-year agreement to NEFAB Packaging Poland, a provider of comprehensive
packaging and logistics solutions, at CTPark Gdańsk Port, a major new sustainable logistics park that CTP is developing in Gdańsk, Poland.

This move strengthens the company’s presence in the Pomerania region, doubling its warehouse space and significantly expanding its production facility in northern Poland. Within CTP’s building, NEFAB will manufacture various types of packaging, offer cleaning services, and store finished products and semifinished goods. The lease transaction was facilitated by the Querco Property agency.

By Q4 2024 CTPark Gdańsk Port will comprise 117,000 sqm of Grade A, environmentally friendly industrial and logistics space across two buildings, within attractive landscaped spaces. The scheme is named CTPark Gdańsk Port because of its location close to Gdańsk Port, the largest trans-shipment port on the Baltic Sea.

In a strategically important location for production, NEFAB Packaging Poland will establish its largest branch in Poland, taking a five-year lease on approximately 10,300 sqm of industrial and warehouse space and almost 600 sqm of office space. CTPark Gdańsk Port’s proximity to sea, air, road, and rail transport will support the company’s logistics processes and streamline goods distribution. Deliveries will primarily be made within Poland, notably to Northvolt, a company producing energy storage systems and battery modules in Gdańsk, replacing internal combustion engines in industrial machines.

The excellent location, in close proximity to NEFAB’s main client, Northvolt, was a key factor in selecting CTPark Gdańsk Port for further expansion in the Pomeranian region. The multi-stage packaging logistics, transport time, and rapid response capability in unexpected situations also contributed to this decision. According to Artur Karnecki, Managing Director at NEFAB, “Analyzing various offers, we concluded that the chosen location is strategic for the development of our company due to the potential new customers in that area. The decision to select this new location was also influenced by the signing of a contract with our strategic business partner, Northvolt.”

NEFAB Packaging Poland’s dynamic growth is tied to the continuous development of innovative packaging and logistics solutions. The company’s offerings cater to industries such as telecommunications, energy, automotive, datacom, healthcare, and the lithium-ion battery technology sector. The launch of production at CTP Gdańsk Port involves adapting the facility for the assembly of specialized machinery needed to implement innovative packaging solutions that meet customer demands and environmental requirements. The installed machinery will enable NEFAB Packaging Poland to meet strict cleanliness standards for both packaging and products and provide specialized
technologies and machines for new projects.

“Establishing production lines near markets has been a trend that we have been observing for months, which we have responded to by constructing speculative facilities in Poland. We deliver infrastructure that adapts to changing market needs and economic environments, available for immediate occupancy by tenants. This is how we contribute to the growth of national industry and the economy, which is
becoming increasingly independent from production and supplies from other countries, and competing with global export powers. The commercial success of our first business park in Pomerania confirms the success of our investment strategy, and we congratulate NEFAB Packaging Poland on its dynamic growth and the launch of its first production facility in Gdańsk,” says Bogi Gabrovic, Deputy Country Head at CTP Poland.

The first building at CTPark Gdańsk Port, with a total area of 37,000 sqm, is already nearly 70% leased. In May 2023, CTP announced that an international renewable energy developer, distributor, and service provider for the energy industry would occupy 25,400 sqm of space. Now, NEFAB Packaging Poland joins the list of tenants and will launch its operations in the second building, which will be ready for use in the
first quarter of 2024.

“We are pleased that despite the challenging market situation during the initial search phase, we ultimately managed to secure the space in a strategic location, such as the vicinity of the Gdansk port. The key factor in negotiations was not only NEFAB’s current development needs in Poland but also securing the space with potential for further growth in the coming years. We thank NEFAB for their trust and are glad that we could be a part of such significant changes,” explained Marek Boczula, COO at Querco Property agency, which facilitated the leasing process.

CTP’s two-stage investment, providing a total of approximately 117,000 sqm of leasable space, is located between the only deep-water terminal in the Baltic Sea region – Baltic Hub – and the A1 motorway. The high level of transport accessibility, combined with regional investment support of 30% for large enterprises, continues to attract new branches of production to the region.

Largest Music and Video Warehouse Opens

Posted on by David Priestman

DP World, a leading provider of global end-to-end supply chain solutions, will this month open the UK’s largest distribution warehouse for physical music and video. Located in Bicester, Oxfordshire, the facility is being launched in partnership with Utopia Distribution Services, who entered into a £100 million deal with DP World to provide warehousing and logistics for physical music goods in the UK earlier this year.

The 25,000 sq. metre site will now become the de-facto centre for music and home entertainment distribution in the UK, handling 70% of physical music and 35% of home entertainment products sold in the UK annually – approximately 30 million units, including vinyl records, DVDs and CDs. It will service retailers across the UK, including Amazon, HMV, industry wholesalers and over 400 independent record stores.

The warehouse will have a daily handling capacity of over 100,000 units, increasing to over 250,000 during peak periods, driven by 80+ state of the art pick robots designed by US manufacturer Locus Robotics. The warehouse will employ 240 workers, and will significantly expand DP World’s unit handling capacity across its UK operations – facilitating new growth opportunities in the warehousing sector.

The warehouse opening follows ongoing demand for physical music and video in the UK, with 17.3m physical albums sold in 2022, with CDs comprising the majority of purchases (55.2%). Selling more than 5.5m units last year, vinyl also continues its rise and currently remains on track for a 16th consecutive year of growth. The video physical retail market also boasted a £209m value in 2022, with sales of formats like Blu-ray and 4k UHD rising by 7% to £91.7m YOY.

Jonathan Himsworth, Vice President Sales at DP World Logistics, said: “DP World brings together an unparalleled combination of assets and expertise to build creative solutions to the hardest problems in logistics, and this is why so many of the world’s largest and most recognisable brands trust us to deliver on their supply chain needs. To this end, we are very excited about working with Utopia Music to support the renaissance of physical music in the UK.”

Drew Hill, MD Utopia Distribution Services and VP Distribution Services, Utopia Music, added: “We’re pleased to be working closely with DP World on a smooth transition to our brand new state-of-the-art facility. With UDS distributing for over 50% of the UK’s combined music and video market, our investment in this infrastructure marks a bright and exciting future for physical entertainment.”

In addition to its UK hubs at London Gateway and Southampton, DP World’s offer includes the P&O Ferries and P&O Ferrymasters subsidiaries, and contract logistics businesses respectively, all of which are being integrated into the company’s global network. Operating in 78 countries, DP World now handles 10 per cent of world trade.

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