Road Infrastructure Development: Key to Romania's Logistics Sector

A robust and well-developed road infrastructure is a vital element for the economic development and prosperity of a country. In the case of Romania, a nation with a rapidly growing economy and a strong industrial sector, investments in road infrastructure have become an imperative necessity. Improving and expanding the network of roads and highways not only facilitate the transportation of goods and raw materials but also have a significant impact on the efficiency, competitiveness, and growth of the industrial and logistics sectors, especially.

Enhancing Efficiency in Logistics and Transportation

A well-developed road system is essential to ensure efficient logistics. Good roads and highways facilitate fast and safe transportation of goods and raw materials, thereby reducing delivery times and associated costs. Rapid access to markets, ports, and production centers across the country allows companies to manage their supply chains more efficiently and deliver products to customers in a shorter time. Therefore, the development of road infrastructure improves the competitiveness of Romanian enterprises and enhances their ability to compete in both domestic and international markets. "The better the access to road infrastructure, the lower the transport costs - thus, the final consumer will pay a lower price for the purchased products," says Cosmin Dinu, Head of Industrial at Activ Property Services, one of Romania's leading real estate consulting companies.

Increasing Accessibility and Connectivity

An extended and modernized road network provides industrial companies with easier access to new markets and customers, both domestically and internationally. Connecting different regions of the country through highways and expressways reduces geographic barriers and facilitates commercial exchanges between rural and urban areas, as well as between industrial and agricultural regions. This connectivity encourages the development of regional industrial centers, attracting investments, jobs, and economic growth to less developed areas.

Therefore, road infrastructure plays a crucial role in reducing regional disparities and promoting balanced development across the entire country. "Given Romania's strategic geographical position, the better and faster our road infrastructure, the more companies in the logistics sector will move / store more goods, thus enabling us to compete with countries like Poland," emphasized the Activ Property Services representative.

Stimulating Investments and Attracting New Industrial Projects

A solid and well-developed road infrastructure is a crucial factor in companies' decisions to invest in a specific area or country. Industrial companies are attracted to regions with modern infrastructure that allows them to quickly connect with other regions and access necessary resources for their operations. By investing in the development of roads and highways, Romania becomes more attractive to foreign investors, which can lead to the creation of new jobs, technology transfer, and sustainable economic growth. Additionally, public transport infrastructure is directly dependent on road infrastructure - thus, we can say that the attractiveness of industrial buildings dedicated to production also depends on access to this type of transport. "In the industrial sector, access to public transport infrastructure plays a very important role in choosing the location for future production facilities, with the ease and speed with which the workforce can reach the location being a decisive criterion in the quality of recruitments," adds Cosmin Dinu.

Reducing Costs and Environmental Impact

A well-developed road system contributes not only to reducing transport costs but also to reducing environmental impact. Modern roads and highways enable vehicles to operate more efficiently, reducing fuel consumption and greenhouse gas emissions. Reducing travel times and traffic congestion also helps companies save costs by reducing fuel and vehicle maintenance expenses. Moreover, an efficient road system can contribute to reducing the risk of road accidents and improving safety for all traffic participants.

Influence on Demand and Supply of Industrial Spaces

The development of road infrastructure significantly influences the demand and supply of industrial spaces in a complex manner. Here are a few ways in which the development of road infrastructure can impact the industrial space sector:

• Accessibility and Connectivity: Well-developed road infrastructure facilitates rapid and convenient access to industrial spaces. Companies looking to lease or purchase industrial spaces will be attracted to locations that are easily accessible via well-connected roads and highways. Easy access to the main road network reduces the costs and transportation time of goods and raw materials, making these locations more attractive for business.

• Logistics Efficiency: The development of road infrastructure improves logistics efficiency and facilitates supply chain operations. Industrial spaces located near main roads or highways benefit from better connections to marketplaces and distribution networks. This can reduce transportation costs and increase efficiency in product delivery, making these spaces more attractive for companies.

• Attraction of Investments: Well-developed road infrastructure can attract investments to a specific area. Companies planning to expand their operations or open new production facilities will evaluate the existing road infrastructure before making a decision. Weak or outdated road infrastructure can discourage investors, while modern and well-connected infrastructure can provide a competitive advantage and stimulate demand for industrial spaces in that area.

• Development of Industrial Zones: The development of road infrastructure can contribute to the creation of new industrial zones or the expansion of existing ones. By creating new roads and highways, new development opportunities are opened up, and access and connectivity conditions in industrial zones are improved. This can lead to an increase in the supply of industrial spaces in those areas and attract more companies to establish themselves there.

• Land Valorization: The development of road infrastructure can increase the value of land located near new roads. This can lead to increased demand for industrial land and stimulate the development of new industrial parks or logistics centers in those locations.

In conclusion, a well-developed and connected road infrastructure attracts investors, supports efficient logistics, and increases the attractiveness of certain industrial zones. Therefore, investments in roads and highways not only facilitate efficient transportation of goods and raw materials but also stimulate investments, attract new industrial projects, and reduce transportation costs.

If you are looking for an industrial space for production, storage, and logistics well connected to infrastructure, Activ Property Services' industrial properties division can offer you the best options available in its real estate portfolio!