September 11, 2019
Portugal Logistics and Warehousing Industry Revenue is Expected to Reach Around EUR 30 Billion by the Year Ending 2024.
Portugal logistics and warehousing market has witnessed positive growth over the past few years owing to increase in investment by the government for development of logistics infrastructure, growing E-commerce and rising exports.
The investment in the logistics sector is one of the key initiatives which will bolster the growth of the sector during the forecast period 2019-2024, including the development of transportation infrastructure, the increase in the capacity of the major Portuguese ports such as expansion of the container terminal at the port of Leixões and the expansion of a container terminal in Sines, and the modernization of the rail freight sector.
Portugal government has planned to invest across strategic sectors. Several projects have been planned to work on infrastructure related projects such as seaports, airports, roads and railways. The government has outlined 72 different programs and projects with the transport and mobility sector receiving the largest slice, at EUR 12.7 billion for a total of 44 projects which will create a positive impact in future.
Rise in exports will affect the logistics market in the country in a positive manner.
Portugal’s principal exports for the year 2018 are vehicles worth 11.1%, electrical machinery and equipment worth 9%, and mineral worth 7.3% of total exports value.
The “last mile” delivery step to the consumer will gain more importance in future due to the rising share of B2C parcel logistics in the market. With same-day delivery, orders are delivered within a few hours after purchasing them, or in a chosen time window on the same day, thus driving the demand for express logistics services in the country. For instance, TNT Express has launched a new and efficient terrestrial distribution solution called Direct Express. This new solution offers customers, who send multiple parcel parcels a faster, more flexible and reliable service through a direct connection to TNT’s home network in the country of destination.
The growing prominence of E-commerce in Portugal.
The E-commerce industry GMV in Portugal is estimated to increase by around 11.0% y-o-y in next 5 year, so total online sales of goods and services in the Southern European country could be worth EUR 9.5 billion in future. The express delivery has simplified the process of transporting goods by allowing the sender to access the information from pick-up to delivery and also provides the proof of delivery. The logistics companies are expected to invest on advanced technologies solutions such as autonomous logistics, real-time tracking, automation and robotics in order to provide an improved customer service. With the growing international trade, incorporation of advanced technology based solutions will help in an efficient delivery of products by the logistics providers.