Logistics local policies

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Making logistics hotspots more sustainable is high on the Netherlands’ local political agenda

This blog was written by Douglas van Oers, Co-Head Logistics & Industrial at Savills in the Netherlands, based on data analysis by Win Yan Lam, Research Consultant at Savills.

 

Mandatory green rooves for new sheds, making urban logistics more sustainable and business parks ‘greener’: these are just a few of the party programmes for the municipal elections in March in the Dutch logistics hotspots. Sustainability appears to be high on the agenda: for almost all eleven logistics hotspots in the Netherlands, making (logistics) business parks more sustainable is mentioned in the election manifesto of at least one of the three largest political parties. Of course, election manifestos are not copied one-to-one in the final coalition agreements. Nevertheless, this analysis provides insight into the sentiment within municipal politics and a first indication of what may be coming in the municipalities.

 

What do local politicians want?

Some political parties mainly talk about sustainability through collaboration with companies and other stakeholders. Others go a step further: for example, in Tilburg-Waalwijk, they are discussing setting sustainability requirements for releasing land for development. This fits in with the tendency within local politics towards a more restrictive land policy for transport and logistics, as shown in the map below.

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Map: positions of three largest municipal parties on land policy for transport and logistics in logistics hotspots

 

However, party programmes often turn out to be not very concrete: they often only talk about the desire to 'make something more sustainable' or 'greener'. How all this is to be achieved is usually not specified. And if concrete measures are mentioned, then it usually refers to solar panels, rooves and green walls, the E (Environmental) of ESG.

Green is not black and white

It is good to see that making logistics real estate more sustainable is being included in the party programmes and that politicians have an opinion on the matter. I also prefer not to see sheds popping up in apparently random locations across the country. However, I do believe that we should not go overboard. In some municipalities the policy is very black and white.

On the one hand, we are all used to ordering packages to be delivered to our  homes. We also want to have these packages arrive faster and faster. The result is that demand for logistics space is at an all time high. On the other hand, there are also understandable concerns about the impact of the growth of the logistics sector on the landscape and environment. A balance will have to be found here.

I am also shocked by expressions of doubt in the media as to whether the Netherlands’ positioning as a distribution country still has added value. It is evident that we are an optimal transit / gateway country, given our strategic location and having the largest port in Europe.

If yes, then how?

There are also very successful examples of the integration of logistics into the landscape. I think Tradeport Venlo is a good example. In the development of this business park, the necessary infrastructure for large-scale logistics developments has been taken into account from day one. This includes that the trucks don’t travel through residential areas, that the activity does not cause congestion, etc.

This integration is easier to achieve with 'green fields'. There is a greater challenge for brownfields. But here too, there are solutions to consider. For example, this includes the visual appearance of business parks, such as the creation of strips of woodland, rows of trees, nature-friendly banks, ponds etc. Combined with recreational opportunities such as green areas and cycling and walking paths, business parks can add value for local residents.

It not only improves the spatial quality for local residents, but also for employees. Savills’ research report What Warehouse Workers Want (2020) shows that logistics employees highly value a healthy working environment. Making an environment green, blue and improving biodiversity, makes it more attractive. These are just some of the ways to increase the S in ESG.

Making industrial areas more sustainable may in the short term cause delays in logistics (re)development, but it is the sustainable long-term solution. It is therefore a good thing that it is high on the local political agenda. No is not always an option, given the increasing demand. If yes, then how, is a question that politicians can answer in consultation with developers, occcupiers and advisers. From building (re)development to area (re)development.

You can read more about the latest developments within the logistics real estate sector in our research report 'Spotlight: Logistics 2022'.

Sources: Savills Research and the Knowledge portal Climate Adaptation

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