Connecting Gateways? The Netherlands and Italy

Eveline van den BoschSenior Manager Supply Chain Solutions

Verona, May 28 2013

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Overview

Introduction to HIDC

The Netherlands: best practices

Changes in European Supply Chains, opportunities for Northern Italy

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

HIDC: 27 years of Experience

General introduction Private, not for profit organization representing 400 members Founded by the Dutch logistics industry in 1987 Ministry of Economic Affairs Unique position within Europe 3 traveling ambassadors In close cooperation with the NFIA Supporting approx 200 companies on an annual basis (60% is US) All services are Free of Charge and without any obligation

LSP

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Our Services and Focus Advisory role to US companies in setting up or re-structuring their European Supply Chain Small- and Medium Sized companies Covering multiple industries (High Tech, Life Sciences, Life Style, E-Commerce) Promotion of the Netherlands as “The Logistics Gateway to the European market” Logistics partner selection Organize Customized Fact Finding visits to the Netherlands Stimulating research and innovation Raise public and political support for the logistics industry, provide input for governmental bodies

HIDC: 27 years of Experience

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

The Netherlands, since long the Gateway for Europe

Dutch history in trade First EDCs in 16th century Central location within Europe Access to European markets and beyond Gateway to Europe 170 million consumers within 500 km Excellent sea- and airport facilities Superior logistics infrastructure Excellent and well developed logistics

industry Taxation advantages Internationally oriented business

community

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Major importer of goods and services

Import value in billions of US dollars (2013)

Import - export in The Netherlands

World’s sixth largest exporter of goods

Export value in billions of US dollars (2013)

THE NETHERLANDS, YOUR GATEWAY TO EUROPE Source: Port of Rotterdam 2013

x 1,000 TEUS (Twenty-Feet – Equivalent x 1,000 TEUS (Twenty-Feet – Equivalent Units)Units)

Top 10 Container Ports worldwide

market leader European container ports

Port of Rotterdam: Europe's largest and most important port

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Amsterdam Airport Schiphol: Europe's best airport for cargo and passenger transport

72,36257,9

51,439,738,535,935,435,2

52,5

LHR

CDG

FRA

AMS

IST

MAD

MUC

FCO

LGW

BCN

No. of passengers in millions 20161877

1423886717674619561422

1531

FRA

CDG

AMS

LHR

LEJ

CGN

LUX

LGG

IST

BRU

Freight volume x 1,000 tonnes

472470466

385362333298276247

426

CDG

LHR

FRA

AMS

IST

MUC

MAD

FCO

BCN

ZRH

No. of air transport movements x 1000

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Home to many logistics hubs

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Excellent and well developed logistics industry

2013 GDP € 43 billion 750,000 jobs Top ranking in supply chain benchmarks Large number of international logistics

services providers Full range of related services Excellent logistics expertise Mature market – control towers

Ambition The Netherlands # 1 logistics hub in Europe in 2020

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Tax & customs advantages

Taxes have large impact on company’s profitability

Business oriented customs & tax authority

Highly automated customs procedures

Bonded warehousing possibilities

The Netherlands provides VAT deferment: NO advanced payment of import VAT = cash flow benefit!

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Services hub – Easy of doing business

4th best place in the world to do business

Country Rank / 160 Score

Germany 1 4.12Netherlands 2 4.05Belgium 3 4.04United Kingdom 4 4.01

Singapore 5 4.00Sweden 6 3.96Norway 7 3.96Luxembourg 8 3.95United States 9 3.92Japan 10 3.91

The Netherlands 2nd in Logistics Performance Index World Bank (LPI 2014)

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Europe, an interesting market

Source: CIA World Factbook 2011

USA China EU

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Challenges in Europe

Various differences exist between European countries:

Economics

Market size Buying power Unions Innovation Etc.

Finance

Corp taxes Currencies Incentives Etc.

Legislation

Labor laws Patents Export/import Etc.

Culture

Language Business practices International orientation Etc.

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Drivers for change in Trade and Logistics in the European Union (EU)

Expansion of the European Union - 75 million customers in 10 countries (2004) to 480 million customers in 27 countries

Increased globalization of production and sourcing

Market developments

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Market developments

Product variety

Product life cycles

Customer order lead time

Delivery restrictions

Working Capital

INTERNET

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Supply chain configuration – new European logistics structures

BDC

EDCEDC

X-dockX-dock

X-dockX-dock

RDC

RDCRDC

RDCRDC

RDCRDC

Traditional EDCTraditional EDC

BDC + SatellitesBDC + Satellites

RDC’sRDC’s

EDC: European Distribution CenterEDC: European Distribution CenterBDC: Bulk Distribution Center, often acting as RDC for the regionBDC: Bulk Distribution Center, often acting as RDC for the regionRDC: Regional Distribution CenterRDC: Regional Distribution Center

RDCRDC

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Position of Verona as Gateway to South & Eastern-Europe

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

How to become a RDC or satellite?

If you want to become a “Gateway” you really need to excel on a verybroad range of logistics activities:

Quantative• Serving a large part of the European manufacturing and consumer markets• Large market share in imports / exports and containers• High number of Logistics Centers• High number of transportation companies and supporting activities

Qualitative• Level of professionalism of the supporting activities (customs, banks, insurance, …)• Trade services• Level of professionalism of the logistics industry (transportation, warehousing, Value Added

Logistics, …)• Knowledge development – people & IT• Flexibility (easiness of doing business)

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

Considerations - Northern Italy Gateway to South Europe ?

Position in infrastructure to rest of Europe Position and capacity in Interporto and its network Capacity of Logistic Service providers Hinterland strategy to enlarge catchment area Connections sea-road-rail Investment climate for foreign investors Tax and customs climate Flexibility and availability of the workforce Support of government Stability of the economical environment Promotion of the region

THE NETHERLANDS, YOUR GATEWAY TO EUROPE

NDL/HIDC - Holland OfficeEveline van den BoschSenior Manager Supply Chain SolutionsNorth-America and Europe

E: e.vandenbosch@hidc.nlI: www.hidc.nl

T: +31 79 343 81 10M: +31 6 204 15 032