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Investment Ideas: establishment of multimodal logistics center Grodno in FEZ Grodnoinvest

In a time of pandemic, economic activity slowdown in most countries, logistics plays an important role in maintaining industrial relations, financial and economic stability, and restoring business activity. Attractive terms for the development of logistics have been formed in Grodno region. The article describes the advantages of the region and a promising investment project on establishment of a multimodal logistics center on the border of the European and Eurasian Economic Unions.

Transport and logistics are one of the promising directions for the development of Grodno region. The region is an important transit link in the international system of commodity flows due to the location on the border of two large economic formations, the European and Eurasian Economic Unions, between Europe and Asia. World experience shows that the most successful and largest logistic hubs are located on the border of states, at the intersection of water and air routes.

There are several components of logistics development. The first one is infrastructure. In Grodno region 15 thousand kilometers of roads have been laid. The railway communication system has access to western and eastern gauge, which reduces the cost of cargo movement, regardless the destination.

The major European transport corridors pass nearby, including the Pan-European highways, Via Carpatia, Via Baltica, Rail Baltica, etc. There are 5 international airports and 4 major seaports within a radius of 400 kilometers. The region has its own airport, which provides international flights, has customs, border and sanitary control services, as well as a warehouse system.

The second one is traffic flows. Business activity of Grodno region in transport and logistics sector is ahead of the national average. Since 2010, freight turnover and export of transport services in the region has doubled, and the industry’s contribution to the gross regional product exceeded 5 % and amounted to 494 million rubles. Among cities and districts, the leaders are Grodno and Grodno region, where 36% of the region's automobile freight turnover is formed, Lida district - 10%, Smorgon district - 8%.

Third is the investment climate. In Grodno region free economic zone Grodnoinvest is operating. Within its borders, a special legal preferential regime is applied for residents. Investors are granted tax and customs preferences, including exemption from profit tax, real estate tax, rent for land plots, that are provided without an auction.

Additional conditions for logistics companies have been created within the boundaries of FEZ Grodnoinvest. Investment sites have been formed on the border with the Republic of Poland in Svisloch and Grodno (Bruzgi) districts, as well as on the territory of Grodno International Airport, which has the status of logistics and port FEZ:

  • Sector 1 (Obukhovo district) with an area of ​​290.53 ha, site No. 5 of FEZ Grodnoinvest. The boundaries of the sector include the land of the airport, available for arrival and departure of aircraft performing international flights.
  • Sector 2 with an area of ​​245 ha, site No. 5 of FEZ Grodnoinvest. Bruzgi-1 railway republican customs clearance point is included in the sector’s borders.
  • Sector 3 with an area of ​​210 ha, site No. 5 of FEZ Grodnoinvest. Bruzgi-2 automobile republican customs clearance point is included in the sector’s borders.
  • Site No. 12 (Svisloch) with an area of ​​421.83 ha. Railway republican customs clearance point Svisloch is located within the boundaries of the site.

Residents are granted preferences in the form of the possibility of non-declaration of goods and only operations related to the arrival of goods, and declaration of goods by non-resident based on the agreement with FEZ resident.

Potential investors are invited to implement a project on establishment of multimodal logistics center Grodno with processing 10 train pairs per day at the border of the Republic of Belarus and the Republic of Poland in Grodno region. The project includes a number of infrastructural subprojects: construction of a road, connecting track and rail siding, engineering networks. Pre-design documentation has been developed, approvals of all competent authorities have been obtained, the calculation of minimum investment costs has been performed, the necessary technical calculations have been done.

The project on establishment of multimodal logistics center Grodno

Since 2018, 5 companies with investments from Belarus, the Netherlands, the United Arab Emirates, and China have become residents of FEZ Grodnoinvest in logistics sphere. Investors are attracted by favorable geographical position of the region, developed industry with a high share of export, and special legal regime in FEZ Grodnoinvest.

FEZ Grodnoinvest administration is ready to provide the necessary support. E-mail: invest@grodnoinvest.by, tel.: +375 (152) 41-23-17, skype: gronoinvest. Other investment projects in logistics, industry and industrial cooperation spheres are introduced in a special section of FEZ Grodnoinvest official website.