Mapping of Logistics Infrastructure of Central and Eastern Europe for Automotive Industry

Abstract

Central and Eastern Europe as an emerging market has become very attractive for automotive OEMs, which are expanding rapidly in the region. Consequently, they are followed by the logistics service providers. However, poor logistics infrastructure including transport networks and logistics services has become the biggest challenge. LSPs and OEMs are concerned by the situation as their activities and performance are hampered by undeveloped infrastructure and its consequences. The governments are trying to upgrade and expand national logistics infrastructure through numerous intensive investment plans with the help of different funds. This thesis work is conducted on behalf of Volvo Logistics Corporation, which is the lead LSP of Volvo Group and some other external major OEMs, with the purpose of investigating and analysing the actual and future logistics and transport infrastructure aspects in CEE on regional and national levels. The research has been carried out for 16 countries under three main headings: transport infrastructure, logistics market and transport policy. In addition, the region’s integration and connection links with the neighboring countries and other important emerging markets, in particular Russia and China, are presented. The study covers road and rail transport modes and to some extent inland waterways which are the primary modes to move vehicles and parts within the region. In order to analyse CEE’s attractiveness for the automotive industry, the country-cluster matrix is developed. Research results indicate 4 clusters of countries with different potentials from the automotive and logistics industry perspectives. Finally, the findings, conclusions and recommendations are elaborated with respect to Volvo Logistics Corporation’s future operations and plans within the CEE region.