The first girder of the Hi Logistics distribution center in Oosterhout is up, and the 51,500 square-meter building will reach completion in the next eight months. Major logistical construction projects such as this one are a rarity today, making it a great reason for a celebration involving Hi Logistics, Prologis, the BOM, DTZ Zadelhoff and contractor ASK Romein.

The fact that Hi Logistics - a full subsidiary of the Korean electronics and domestic appliance manufacturer LG - opted to set up shop in Oosterhout was largely due to the location of the two current distribution centers the company wanted to merge. The one distribution center, a 17,000 m2 building that distributes to the Benelux region, is located in Ridderkerk, while the other 24,000 m2 warehouse is in Tilburg and acts as European Distribution Center. Hi Logistics endeavored to retain as much of the personnel as possible, and this seems to have worked thanks to the choice of Oosterhout.

Scarcity of good locations
Another important reason for choosing Oosterhout is the fact that there is a scarcity of good locations for a building as large as the one presently under construction. Or, as the president of Hi Logistics Europe, Jae Sun Lee, put it in his speech: "We are very pleased that we have been able to find a great location for our new distribution center, where we can integrate both the present warehouses in 2010. I also definitely expect us to further expand over time to 90,000 square meters." And this further growth is certainly possible on the Energieweg site on the Weststad industrial estate in Oosterhout. "Because Hi Logistics was looking for a suitable location for what was already a major distribution center, but with the option of even further expansion, there were not many locations available," says Eelko Brinkhoff of the Brabant Development Agency (BOM). "While Waalwijk and Moerdijk were both options, Oosterhout turned out to be an even better choice. Moreover, there are excellent rail-links here, and access to inland shipping is a mere 200 meters away. That makes it perfect for a logistical company that aspires to operate in a sustainable manner."

Opportunities for modality on the Oosterhout site
Brinkhoff, who is project director for investment promotion at the BOM, says that the Oosterhout site offers as yet unutilized opportunities for modality. "Hi Logistics has a factory in Poland that is connected to the railway, making it a simple task to transport goods to it. That link easily means ten less trucks on the road every day. In terms of costs, rail is becoming ever-more attractive. That holds especially true for the inbound flow in this distribution center. The outbound flow to Germany, for example, consists primarily of packages, making road haulage a better option, as it is for the flow of goods to France." 

‘The property market is weak, but it's healthier than it was two years ago'
This combination of modalities was also the biggest reason for property developer Prologis when it came to settling on Oosterhout. "Thanks to the on-site rail, shipping 200 meters away and the nearby Oosterhout Container Terminal (OCT) as well as the two highways located close by, this is quite simply a good location," says Bram Verhoeven, the Netherlands Prologis marketing officer. He is visibly pleased with the project, but admits that the start of construction in Oosterhout could be a unique experience for the next few months. "On one side of the market, the scope for new projects is small, while on the other side there are sufficient relatively new warehouses in the 20,000 to 30,000 m2 category available, also in the West Brabant region. As far as I'm concerned, the primary focus is on first filling those buildings - let's call it addressing the extant supply." That is why he says the current condition of the property market is "not particularly healthy. Two years ago you saw quite a large number of companies terminate their leases and opt to construct their own premises. That was naturally not a normal situation either, as that option costs a great deal of money. Today the situation is completely different, with the economy once again witnessing more normal and healthier proportions." 

The municipality of Oosterhout aims for sustainable logistical operations
The fact that real estate broker DTZ Zadelhoff, property developer Prologis, the BOM and tenant Hi Logistics all chose Oosterhout, also brought a smile to the face of the alderman for urban development Yves de Boer. In his speech, on occasion of the official first girder being raised, De Boer referred to the continuation of West Brabant as the logistics hotspot of the Netherlands. The alderman said that the site is perfect, thanks to the close proximity of various modalities. "And because we as a municipality want to operate in a sustainable manner, we worked out how much CO2 Hi Logistics will cut out by transporting goods by means other than road and rail," he said. "In short, we certainly want to promote shipping as a means of transport." Unfortunately, De Boer did not have the figures of the calculation at hand.

Source: http://www.logistiek.nl/, 11 September 2009
http://www.logistiek.nl/nieuws/id8841-Bouw_distributiecentrum_Hi_Logistics_Oosterhout_gestart.html