Gothenburg is the pre-eminent location for a distribution centre in Scandinavia, particularly for import companies with large volumes passing through the Port of Gothenburg. This was revealed in a new study published by the consultancy company SWECO.
According to a report published by SWECO, Gothenburg is the best location for the establishment of a distribution centre if the customer base is in Sweden, Norway or Denmark. The report demonstrates how the cost of freight transport and distribution can vary markedly between different logistics locations throughout Scandinavia.
“Gothenburg has emerged as an attractive option for enterprises with large import volumes,” said Maria Johansson of SWECO.
The study compared costs for transporting freight from port to warehouse as well as palletised distribution to the consignee. The study also highlights differences in rent, wage costs, customs duties, land, incoming land transport from the continent and lead times.
Comparison of established logistics locations
The comparison was made between four established logistics locations: Gothenburg, Stockholm, Jönköping and Vestby (Oslo). From a transport and distribution cost point of view, both Vestby and Gothenburg came out favourably. But once rent and wage costs were factored into the equation, Gothenburg was shown to be the most cost-effective solution.
“Companies can of course vary considerably. There are differing requirements and conditions when it comes to establishing warehousing and distribution facilities. Setting up operations in Gothenburg is particularly advantageous for enterprises with large volumes entering via the port. The conclusion is that we should avoid looking purely at the price per square metre when siting a warehouse,” said Maria Johansson.
Geographical location and proximity to the port are important
The reason why Gothenburg comes out well in the study is its closeness to the port, which offers direct, oceangoing services and extensive European traffic. The geographical and demographic situation – proximity to consumers and the market – are other factors that weigh heavily.
About the study
The study compares the geographical location of a number of warehousing facilities from a transport cost point of view and where account is taken of both transport and distribution costs. The comparison is based on four warehouse locations: Gothenburg, Jönköping, Stockholm and Vestby (Oslo). The locations were chosen as they are all good logistics locations for operators on the Scandinavian market. The freight volumes that were compared arrive largely (60%) in containers via the Port of Gothenburg and are then transported to the towns and cities in question.
Fact file: Port of Gothenburg
The Port of Gothenburg is the largest port in the Nordic region. 30 per cent of Swedish foreign trade passes through the Port of Gothenburg as well as 60 per cent of all container traffic.
The Port of Gothenburg is the only port in Sweden with the capacity to receive the world's largest container vessels and has the broadest range of shipping routes within and outside Europe. The 25 rail shuttles that depart each day mean that companies throughout Sweden and Norway have a direct, environmentally smart link to the largest port in the Nordic region. The Port of Gothenburg has terminals for oil, cars, ro-ro, containers and passengers.