Advantages of Essex for logistics businesses serving European & international markets

UK multimodal gateway Essex

A European distribution hub needs to be located in continental Europe, right? Well, maybe not. When the full range of advantages offered by Essex, UK, are considered, the UK begins to look like a highly viable option.

The UK: a great place to do business…

DP World London GatewayThe UK is Europe’s best major location for ease of doing business according to a recent World Bank assessment [1].  There are low levels of bureaucracy, the joint lowest corporation tax rate in the G20 countries and one of the lowest-cost [2] and most flexible [3] labour forces in Western Europe. English is the common language of international business, so for global companies there are added benefits to be gained from operating in an English-speaking environment.  These are just some of the reasons why leading international businesses, including DP World, have invested millions in providing Essex, and the UK, with world-class, multimodal ports and logistics infrastructure.

With commercial advantages for logistics businesses…

London is the business capital of Europe, and London and the South East represent one of the continent’s largest and highest value consumer markets. Essex provides the logistics gateway to and from that market, with 3 deep sea ports located less than 20 miles from central London.

Locating in Essex UK can provide logistics businesses with cost advantages, too. Labour costs are considerably lower than in other major Western European port locations such as Antwerp, Rotterdam and Zeebrugge [4] (see chart).  And Essex can be a highly cost-effective location for distribution to European markets - because the UK is a net importer, container capacity from the UK to continental ports is significantly under-utilised, and therefore competitively priced.

A leading European Multimodal Logistics Hub…

Essex is the UK’s Multimodal Gateway, and one of Europe’s leading centres of port logistics. As a major multimodal freight transport hub, the county provides businesses with global connectivity that’s amongst the most comprehensive available in Europe, including:

  • 4 Sea Ports, providing high-capacity deep sea and short-sea services, and handling all cargo types
  • 6 Port-Linked Rail Freight Terminals, connecting businesses directly to UK and European markets (via the Channel Tunnel)
  • 3 Tri-modal, Portcentric Distribution Sites, totalling over 1,000 acres of developable land, with the capacity to accommodate the largest distribution units
  • 6 London Airports accessible within 1 hour 30 minutes, including London Heathrow (the UK’s no.1 Air Freight Hub) and London Stansted (the UK’s no.3 Air Freight Hub)
  • Fast Market Access by Road,, via the M25 London Orbital Motorway, to key UK and European markets

A sound business case for your European logistics operation…

Port of Tilbury multimodal freight transport hub

In addition to the UK’s recognised business climate benefits, locating at Essex’s Multimodal Hub can enable logistics businesses to increase supply chain efficiency, reduce costs, reduce emissions and reduce business risks. Speak to the Invest Essex team to find out how the Essex business case stacks up for your European logistics operations… 

FIND OUT MORE

Contact INVEST Essex to find out more about sites, people and support for your expanding logistics business in Essex, UK.

Sources:
[1] Ernst and Young, ‘Staying Ahead of the Game’ Report, 2012
[2] Eurostat 2014. News release: labour costs in the EU 28
[3] World Bank’s Rigidity of Employment Index (2013), Doing Business 2012: fDi Intelligence, from the Financial Times Ltd (2013)
[4] WAVTEQ, 2014

Robert Edge
Robert Edge

Inward Investment Manager (UK Multimodal Gateway:Essex and Life Sciences & Healthcare Cluster)

+44 (0) 7740 179497

Biography

Following a ten year career with a major Colchester freight forwarder shipping everything from confectionery to oxygen plants, Robert has spent almost 15 years in inward investment promotion. Having had experience in China, India and the Middle East, Robert leads on the logistics and renewables sector.