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France: The logistic hub of Europe
France has remarkable advantages and can offer numerous development opportunities for companies in the logistics sector. The country has an extremely favourable geographical location that offers a natural gateway into Europe

THE LOGISTICS sector has become a full-blown economic sector in its own right. The sector has been exhibiting consistent positive market growth since a long time.

The logistics sector represents over one million companies that employ approximately five million people in Europe (1,516,000 jobs in the logistics sector in France) and allows an economy to function on a continental scale that is open to the entire world.

Various factors are at the root of this expansion - globalisation, development of the container sector, a high performance road and rail network, highly efficient port and airport platforms and combination of various types of maritime and land transport, information technology and telecommunications networks that enable optimal management of transport and storage.

France has been a pioneer in the logistics revolution that began in the 1980s. The growth in the number of operators is likely to increase with the development of outsourcing. Alongside, major French specialist groups such as Norbert Dentressangle, Stef-TFE, Géodis, FM Logistics, various international companies also operate in France - Fedex, DHL, Kuehne & Nagel, Arvato Services, Schenker, Ziegler, Kaoten Natie, Wincanton, Nippon Express, NYK Logistics and make major and repeated investments to set up logistics platforms all over France.

Recent investments have confirmed the attractiveness of France in 2007. For example, IKEA has just opened its European logistics centre at Fos-sur-Mer, creating 500 jobs and Amazon has set up a second distribution centre in the Loiret region, creating 200 jobs.

As Philippe Favre, the president of Invest in France Agency, points out, “France has remarkable advantages and can offer numerous development opportunities for companies in this sector - an extremely favourable geographical location that offers a natural gateway into Europe, with easy access to a market of 450 million consumers; a modern, high performance and safe transport network that is fully interconnected with the main countries in Europe; a mature market that is open to competition and transparent for new arrivals, offering the expertise of players throughout the entire logistics chain; a real estate park managed by local municipal authorities that provides an attractive offer in terms of warehouse rental. Rental costs are very competitive: €53/m² in Paris and €50 in Lyon, compared to €179/m² in London, €109 in Barcelona, €63 in Rotterdam and €70 in Munich.”

Recent changes will further improve the attractiveness of France: reform of autonomous ports and their manpower, based on the principle of the transfer of equipment to private operators, concerning both equipment and salaried worker employment contracts; opening up of airport concessions to private operators; deregulation of railway freight transport in Europe and the creation of corridors with improved width and opening up of canal networks to the wide-berth European network (Seine Nord project).

Invest in France Agency (IFA) promotes and facilitates international investment in France. The IFA network operates worldwide. IFA works in partnership with regional development agencies to offer international investors, business opportunities and customised services all over France.

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