LOGISTICS IN BELGIUM

Logistics Belgium is disappearing from the scene, or so it is often claimed. It is a fact that the number of foreign companies that want to establish new European distribution centres (EDCs) in our country in recent years is melting away like snow in the sun. In this 'Logistics in Belgium' edition we thought it would be interesting to take stock of the situation and to investigate whether Belgium has really lost its appeal in terms of logistics. However, this provides a nuanced picture. Perhaps the loss of appeal is nothing more than an impression… I do indeed believe that we should first and foremost make a distinction between the fulfilment centres for e-commerce, which are springing up like mushrooms in the Netherlands and Germany, and the EDCs. These are two very separate entities, both in terms of infrastructure and personnel requirements. The e-commerce platforms are B2C-oriented, while the EDCs usually work B2B. This is an important distinction: in the former centres the emphasis is on flexibility (an area in which Belgian legislation or employees do not exactly excel); in the second, professionalism and quality are central. And it is precisely on these points that Belgium scores high. But why do we attract fewer EDCs than 20 or 25 years ago, when multinationals built one distribution centre after another? To find out, we have to go back to the context at the time. The single market was established in 1993 and freed the logistics structures from the strict national (and customs) straitjackets. At the time, the consultants agreed that the core of what was then called 'the blue banana' (and is still called that) was the Benelux. An epicentre located close to the most important economic regions and the ports of Antwerp and Rotterdam. During those golden years, Belgium and the Netherlands divided the cake among themselves, because a good location was paramount. Other aspects played a lesser role. A major difference with then is that today, in general, fewer EDCs are created in Europe. Globalisation has indeed encouraged the relocation of production to the Far East, which has increased the need for EDCs for the distribution of products imported from those countries. However, it is fundamentally the same companies that import, which does not create a new need for EDCs, but does require the expansion of existing infrastructures. The examples of Nike or Skechers speak for themselves. The new multinationals that are emerging in China or India are not yet that numerous and often sell by addressing the consumer directly (via e-commerce). Their distribution centres are located in Asia. Not only are fewer EDCs being started in our country, this is also the case in the Netherlands. However, we do not need to fool ourselves. Our country is struggling with structural problems, including wage costs and corporate tax, which amounts to 34%.The multinationals that are already present in Belgium know that this is compensated by the high productivity. But for the newcomers these are things that inspire fear. This makes it harder for us to appear in the 'shortlists'. So there is still work to be done, both in terms of politics and marketing .