During the year 2023 SMART HUB Logistics will conduct a feasibility study into setting up a SMART HUB in Moldava, a country in Eastern Europe bordering Romania and Ukraine. At the end of 2022 we received a government subsidy for this from the RVO (Rijksdient voor Ondernemend Nederland – Netherlands Enterprise Agency).
Suppliers closer to home
Many European companies are looking for suppliers in Central and Eastern Europe, replacing their current suppliers in Asia. The main reasons for this are:
- Transportation costs from Asia have quadrupled since the corona crisis.
- Lead times have become longer and more unreliable due to the closure of factories and ports because of corona outbreaks.
- Because of the corona pandemic it was not possible to travel from the Netherlands to China to conduct quality inspections at supplier sites.
- Import tariffs for Asian products have increased, while within the European Union and a number of associated countries no import duties apply.
- More and more companies are actively working on reducing their ecological footprint. Long distance transport from Asia does not match with these sustainability plans.
The advantages of Moldova
In Western Europe there is a lot of interest in finding suppliers or setting up production lines in Moldova. Not just because of the country’s low labour costs but also because of the high expertise in working with metal, timber, and textiles. In addition, it is currently of course impossible to set up activities in neighbouring Ukraine due to the ongoing war. Therefore, Moldava could be a good alternative.
A first fact-finding trip and market-research have shown that logistics in Moldava is still in its developing phase. As an example, there are no modern storage facilities from which groupage can be carried out efficiently. And it is precisely this way of transport that makes it attractive and more cost efficient for companies to ship their part loads.
By applying the SMART HUB concept, we can meet this challenge. With this concept we can offer customers suitable logistics space, and a wide range of logistics and customs services. From small to large, from temporary to structural or any other variation thereof. The market-research demonstrates this is exactly what is lacking in the Moldavan logistics industry. While at the same time there is an increasing need for this, due to the expanding export flows.
Declaration of intent
In our subsidy application we have expressed the intention to realise a SMART HUB Moldava, together with our local logistics partner Damidor, that consists of:
- Docking stations for the inbound and outbound flow of goods
- Warehousing facility for multi-user storage
- Cross-dock facilities
- Customs facilities
- Office space
- Accommodation for associated companies
At the end of 2023 we will publish the results of this feasibility study on this website. Further updates will be shared with you on this website through blogs.
Are you interested in setting up business with Moldova? Please contact us and we can review the opportunities together.