site wsa

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Study on an integrated and flexible conversion plan for the progressive establishment of a logistics park on the former WSA site in Bettembourg/Dudelange

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Government Declaration of August 4th, 2004 Logistics is among the 7 focus areas for economic development in Luxembourg Initial statement: - Increased globalization and exchange flows - Performing airport infrastructures and considerable growth of air freight (~ 800.000 t/year; growth of 6%/year) - Lack of transformation / added value of air freight at the depature and the arrival

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Objectives of the PWC study (1) Study launched at the beginning of 2005 Characterizing the major trends in logistics at an international and European level : - Nature and direction of freight flows Transport forms Structural trends

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Objectives of the PWC study (2) Characterizing the situation and the environnment in Luxembourg in the logistics sector, particularly in the air freight domain Industrial structure / specialization Major actors SWOT analysis Identify and evaluate potentials

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Results of the PWC study (1) Major trends: Decrease of Europe’s « market share » in international industrial production « Relocalization » of production to emerging markets in Asia, Latin America Increasing need of dispatching integrated transport and shipping solutions to solvent markets (EU and USA) Increasing costs and complexities of flows

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Results of the PWC study (2) Major trends: Outsourcing/specialization of logistics functions Expected growth of 10%/year Increasing share of logistics in sales (from 7,8% in 2003 to 8,5% in 2008) Increasing share of value added services (1,7% in 2003 to 2,6% in 2008) Reducing time gap between order and delivery to the client (1987=100 days / 2008= 44 days)

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Results of the PWC study (3) Current industrial structure in Luxembourg 5th freight airport in Europe 806.000 tons in 2006 – regular growth Operational hub of Cargolux, the 1st all cargo carrier in Europe More than 680 logistics operators 9.000 jobs (3% of total workforce) 22 companies with more than 100 employees

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Results of the PWC study (4) - SWOT analysis Strenghts Geographic location in the center of the logistical banana « Birmingham – Bruxelles – Bale – Barcelona - Madrid » Air traffic between continents Additional bordering infrastructures (land spaces, container terminals, airports) High quality services offered by logistics operatores Accessibility of and direct dialogue with public administrations VAT (rates, no need to prefinance, customs applications) Technical certification infrastructures

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Results of the PWC study (5) - SWOT analysis Weaknesses Image as « road transportation sector » No proactive positioning Limited supply and relatively high cost of land Operational costs: wages, office rental costs Limited freight handling capacities at the airport Workforce: qualification, flexibility

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Results of the PWC study (6) - SWOT analysis Weaknesses Administrative and regulatory aspects Absence of fiscal representation for VAT purposes Flexibility – Limited office hours of customs office Importance of paper documents and limited use of paperless exchanges

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Results of the PWC study (7) - SWOT analysis Threats Competition from neighbouring airports Risk of loss of sovereignty on landing rights issues Volatility of flows Economic risks (fuel prices, landing rights issues, …)

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Results of the PWC study (8) - SWOT analysis Opportunities Existing demand for development of land for logistics Demand of producers/distributers for centralized logistics in the EU Demand of the hi-tech, automotive components and pharmaceutical products sectors Demand for value added services (preparation of orders, administration, invoicing, counseling, IT services) Synergies with other Luxembourg or bordering logistical centres (rail, water, …)

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Objectives of the Gouvernement Create new value added and growth potentials Create new jobs Instruments: 1. Promote the Grand Duchy as an intercontinental logistics hub in Europe 2. Promote the Grand Duchy as as a major North- East/South-West and North/South corridor for rail connections

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Action plan (1) 1. Promote Luxembourg as a logistics hub 2. Develop smoother regulatory and administrative procedures 3. Facilitate the establishment of new activities: develop or open up industrial parks 4. Develop skills and competences

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Action plan (2) Facilitate the establishment of new activities by providing access to industrial parks - Enable access of new logistics activities to the business parks of - Contern - Dudelange/Bettembourg - Findel aiport - Develop a global concept for the conversion of the former WSA site into a state-of-the-art logistics park

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Conversion of the WSA site (Dornier- Consulting study) - Characterize the type of logisitcs activities to be promoted while considering the general business environment in Luxembourg - Elaborate a masterplan in order to establish progressively a state-of-the-art logistics park - Improve existing infrastructures on site - Propose operation and management models for the WSA logistics park

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Characterize the type of logisitcs activities to be promoted while considering the general business environment in Luxembourg - 3 PL activities (third party logistics): warehousing, handling, packaging, processing and shipping operations - 4 PL activities (fourth party logistics): organization of production and distribution flows, supply chain management, invoicing services - Reverse logistics: handling of overstocks, recovery, recycling and reselling of non-sold products - Counseling and training

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The future logistics park in Dudelange/Bettembourg (1) Land surface of 50ha Road and rail interconnections - Direct connection to major highways - Proximity to rail highways Bettembourg-Perpignan - Proximity to the airport (12 km)

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The future logistics park in Dudelange/Bettembourg (2)

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The future logistics park in Dudelange/Bettembourg (3) Services Training Conference rooms Food and catering - Customs operations Utilities

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The future logistics park in Dudelange/Bettembourg (4) Maintenance of trucks - Repair facility for trucks - Storage of tires and spare parts Fuel station - Resting and recreation area for truck drivers and residing employees - Customs - Truck waste - Parking lots

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The future logistics park in Dudelange/Bettembourg (5) Phase 1 - Surface 123.500 m2 Construction time 3-5 years after approval - Central road connection

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The future logistics park in Dudelange/Bettembourg (6) Phase 2 - Surface 29.000 m2 Construction time 1-2 years after approval - Connection to existant road infrastructure

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The future logistics park in Dudelange/Bettembourg (7) Phase 3 - Surface 62.000 m2 Construction time 3-5 years after approval - New road connection

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General container handling centre - Terminal with 3 rail junctions - Container repair station - Storage of special containers and container washing and cleaning - Administrative services The future logistics park in Dudelange/Bettembourg (8) Container Service Center

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The future logistics park in Dudelange/Bettembourg (9)

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Economic promotion policy Targeted companies: - International logistics operators in order to organize and consolidate their service offer - Industrial and commcercial companies in value added sectors whishing to establish a European organization and distribution centre - Logistics service operators already present in Luxembourg

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Schedule - Detailed planning - Consultation with municipalities of Bettembourg and Dudelange Initial commodo-incommodo authorization procedure Promotion and marketing Creation and progressive development of public infrastructures (roads, utilities...) - Progressive elimination of current infrastructures