Logistic Centers and Warehouses

As stated previously the great of Odessa is it statically location in regards to world trade. Some of the key factors contributing to his are:

• Ideal trade route between the countries of Northern, Central and the Eastern Europe with the countries of Western Asia, Russia, the Middle East and Northern Africa;
• Since the Port of Odessa is situation on the Danube River it serves to connect Northern and Central Europe with the Balkan region and the Near East;
• Advanced overland transport infrastructure serves to connect Russia and Central Asia to Turkey and the Balkan countries;
• Thus there is a great opportunity to use the Odessa region as a large trading and storage terminal for Europe, Asia and Africa.

The presence of the Suez Canal greatly expands Odessa's trade zone to allow it to influence the trade and economies the entire region. The Ukrainian Parliament has taken action and continues to take action to drop trade barriers and increase economic visibility to enhance the develop the Port of Odessa and the Odessa Region as a whole.

All of the factors stated above have created a great need for the development of logistic centers and warehouse space. The volume of goods through ports Illichivsk, Odessa and Yuzhnyi is already at a very high level; however, there are very few modern logistical center in the region. Currently Class C and lower warehouse facilities lease for about $2.50 per square meter. Class B facilities rent for about $5 to $6 per square meter.

There our few if any Class A logistics centers in operation. Market forecast predict that a Class A Logistic Center would command a price of $9 to $12 per square meter. Today most companies that require Class A facilities transport their goods from the port to Poland or Hungry.

The reason that there is such storage of Class A facilities in the Odessa region is threefold:

• The absence of experience and construction standards to build such facilities;
• Lack of knowledge on what specifications international companies require;
• The absence of Ukrainian companies that are capable to operate such facilities.

These issues can be resolved if international companies and investors are willing to bring their own team of experts to oversee construction and operation of the logistic center while training local workers. Large global corporations such as IKEA have already announce their intentions to enter the Ukrainian market. Many such as IKEA will first start with the Odessa Region to build its infrastructure then expand through the rest of the Ukraine. In the future Ukraine will reclaim its important role in the world economy. The path to that bright future starts with the ports in the Odessa region.

Current Offering of Lands for Logistic Centers

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