Why Logistics Giant DP World is Betting big on Romania
DP World has long been committed to enhancing the movement of goods between mainland Europe through to the Black, North and Adriatic Seas.
It’s why the logistics giant chose Romania as the first European country in which to expand back in 2004.
Since then, the company has grown its Romanian operation considerably, contributing to the impressive growth of Constanta, the largest container port on the Black Sea.
As DP World marks the 20th anniversary of its initial investment, it has opened three major new sites in Romania, providing a significant boost to the country’s growing status as a key hub of European trade and enabling economic growth throughout the region.
Enhancing the movement of goods
DP World’s latest trio of investments in Romania totals €136m (US$148m), with the largest – worth €65m (US$70m) – coming at Constanta.
The port is now home to a five-hectare project cargo terminal for heavy, large and complex cargo, in addition to a roll-on, roll-off (RO-RO) terminal that will handle up to 80,000 vehicles per year at its peak.
Meanwhile, a further €50m is being invested in a new multi-transport platform in Constanta, due to open in 2025.
DP World’s third new facility is in Aiud – the industrial heartland of Romania – which is now home to an eight-hectare intermodal logistics hub connecting rail and road following a €21m (US$23n) investment.
These facilities are anticipated to improve connectivity between DP World’s existing sea, rail, barge and truck services across Romania, and will further enhance the movement of goods in this key region.
“Romania is a dynamic economy and well positioned to benefit from the rise in nearshoring and manufacturing,” comments Rashid Abdulla, CEO and Managing Director at DP World Europe, who started his career as Manager for Constanta in 2004.
“DP World looks forward to building on our long-standing relationship with Romania and deploying our investments to support the country as it plays an increasingly important role in trade and economic growth in the region.”
DP World investment in Romania reaches €250m
Over the course of two decades, DP World has now invested more than €250m (US$271m) in Romania, including grants from the European Union.
The organisation anticipates that its latest investments will encourage and enable major businesses to relocate or expand manufacturing facilities in the region. This practice of nearshoring and reshoring has become increasingly prevalent in Europe in recent years amid a rise in geopolitical tension.
An example of this can be seen in automotive manufacturing, which has increased rapidly in the region and is expected to grow further. Automotive already makes up 13% of Romanian GDP, with Mercedes-Benz, Renault-owned Dacia and Ford all manufacturing in the country.
Automotive firms are also investing heavily in neighbouring Hungary and Poland and nearby Turkey, making robust supply chains and logistics infrastructure such as the RO-RO terminal increasingly essential not just for Romania, but for the surrounding region.
Cosmin Carstea, CEO DP World Romania: “DP World’s latest investments in Romania will increase cargo flows by around two million tonnes per annum through the country.
“We believe that, with this investment, DP World in Constanta will significantly strengthen its position as one of the most important container and RO-RO hubs in Central and Eastern Europe.
“To aid this, we also plan to open a centre of excellence for services in the Balkans to facilitate trade for the countries around Romania.”
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