Luxembourg: The European Gatewaymadrid vienna TriesTe barceLona vaLencia eebrugge Paris London bordeaux miLan rom baseL urich duisburg marseiLLe Lon ... the logistics sector is a key

MUNICH

WARSAWBERLIN

COPENHAGEN

HAMBOURG

MALMÖ

GÖTEBORG

BUDAPEST

MADRID

VIENNA

TRIESTE

BARCELONA

VALENCIA

ZEEBRUGGE

PARIS

LONDON

BORDEAUXMILAN

ROM

BASEL

ZURICH

DUISBURG

MARSEILLE

LYON

ANTWERP

ROTTERDAM

LUXEMBOURG FRANKFURT

Luxembourg: The European Gateway

Global logistics. Tailor-made solutions.

“The efficient mobility of people and goods is essential for modern economic success. Globalization is the process of increased interconnection among countries. The transportation of goods and logistics play a major role in a country’s ability to compete in the global marketplace. Ideally located in the heart of Europe and less than 300 kilometers (186 miles) from three world-leading ports: Rotterdam (the Netherlands), Antwerp (Belgium) and Hamburg (Germany). The Grand Duchy of Luxembourg offers privileged access to an over-average wealthy market of 450 million over-average wealthy consumers.

In order to diversify its economy, the Luxembourg Government adopted several laws that are beneficial for Luxembourg as a logistics hub. These were chiefly the law to promote research and development instruments, the law on intellectual property, the special tax regime for expatriates. The law on the VAT regime and the implementation of a free trade zone near the airport facilitate the trading and handling of valuable goods. More recently, the Luxembourg government has been developing the Eurohub South site as a logistics platform of choice in Europe, taking advantage of multimodal transport as well as creating services to new destinations. The site offers efficient access to cargo railways and highways connecting through Europe. The goal is to ensure the connection of Luxembourg by combined transport to the ports of the North Sea, the Baltic and the Mediterranean, as well as major European industrial centres. Moreover, Luxembourg’s government is committed to a transport policy that focuses not only on the economic strength, but also on the ecological impact of transportation. Ongoing efforts to achieve a further reduction of CO2 emissions is one of the nation’s ambitious climate change objectives.

Today, the logistics sector is a key pillar of the Luxembourg economy. The openness, the attractiveness and its localisation make Luxembourg not only a door to Europe, but also a place where new business flows are generated. In order to better anticipate the ongoing needs of the logistic actors in Luxembourg, the Cluster for Logistics has launched a prospective study under the name Futur4Log. The main targets are to identify the actions to be undertaken to constantly improve competitiveness of the logistic services, identify the future markets and services and create a common marketing policy to keep Luxembourg ahead.

This brochure highlights the many opportunities that Luxembourg offers to investors in the field of logistics. Logistics made in Luxembourg ensures a sustainable and competitive position in international competition.”

WeLcome in Luxembourg

Pierre gramegna,President of the Cluster for Logistics

The cLusTer for LogisTics and iTs members

Logistics is one of the sectors that the Government aims to develop within the framework of its economic development policy and therefore encourages all initiatives that strengthen Luxembourg’s position as intercontinental logistics hub in Europe. The Cluster for Logistics Luxembourg asbl fits perfectly into the Government logistics action plan.

To reach these objectives, the Cluster has federated all institutional actors and private enterprises around different axes of competence. The Cluster does not only focus on logistics companies but also welcomes enterprises making use of logistics services. The Cluster for Logistics brings together representatives from logistic companies, shippers, public research centers and institutions. They pursue the aim to strengthen Luxembourg’s position as a major European logistics hub – especially for high added value services. The Cluster for Logistics is member of the European Logistics Association along with twenty other national logistic associations from all quarters of Europe.

The Cluster for Logistics’ actions are focusing on the improvement of a competitive tool by providing decision makers with advice and accurate information in order to secure a positive global framework. At the same time, the cluster backs up the actions of its members to expand the level of current services by new innovating services, with a special focus on niche markets with very high quality standards and added value services.

Typical actions of the Clusters in a nutshell:

• IncreasingtherecognitionoflogisticsinLuxembourg

• Managingworkgroupstoimprovethecompetitivenessofthelogistics sector

• Communicatingrecommendationstogovernmentalauthorities

• Organisingeventstoallownetworkingforthemembers

• Meetingotherinternationallogisticsorganizationstosharecommon experience

• Representingthenationallogisticssectorininternationalorganisations

• Arranginginternationalmatchmakingsforthememberswithin conferences and fares

Even though Luxembourg is a landlocked country, this fact doesn’t stand in the way as the country is linked via a dense railway network and the Rhine-Moselle waterway to several huge European ports such as Rotterdam, Antwerp and Zeebrugge, for which ports we are a natural hinterland. Thanks to the international airport, the Eurohub South site and the inland Port of Mertert, Luxembourg has the required infrastructure to play a leading role in multimodal freight transportation, as hinterland port and as distribution center.

Moreover, two main freight corridors intersect in Luxembourg:

Great-Britain - Benelux - Luxembourg Switzerland - Italy - Austria - Turkey

Poland - Scandinavia - Luxembourg - France - Spain - Portugal

Over the years, Luxembourg has become an attractive location for high added value logistics and shipping activities, thanks to the logistics focused Government strategy and the overall favorable business climate. A broad range of companies have already established offices in Luxembourg and have developed the Grand Duchy into a major European logistics hub.

Luxembourg : When LocaTion maTTers

Portugal

espagne

france

suisse

monacoitalie

grèce

bulgarie

roumaniehongrie

slovaquie

Pologne

Lituanie

Lettonie

estonie

rép.Tchèque

autriche

belgique

irlanderoyaume-uni

Pays-bas

danemark

Luxembourg

• 80%oftheEuropeanUnionGDPcanbeservicedfromLuxembourg in one day

• Competitiveairfreightcargocenter

• State-of-the-artmultimodalhub

• Highlyskilled,multilingualworkforce

• NoVATpre-financingrequirement

• Anexceptionalbusinessfriendlyenvironment

• Socialandpoliticalstability

• StrongsupportoftheGovernment

• World-classlogisticplayersandmanufacturers

• Well-connectedsectorsthroughdedicatedclusters

10 good reasons To oPeraTe from Luxembourg

CargoluxRanked at position 11 worldwide, Cargolux is Europe’s leading all-cargo airline with a fleet of modern Boeing 747-400 and 747-8 freighters. The company was launch customer and the world’s first operator of both aircraft types. Cargolux has more than 85 offices in over 50 countries. Thanks to its proven expertise and experience of over 43 years, Cargolux has established itself as an air cargo carrier of choice for the transportation of live animals, temperature-sensitive goods or outsized freight benefit.

Cargolux is based at Luxembourg Findel airport, where its handling agent, LuxairCargo, operates one of the most advanced cargo centers in Europe. It was recently extended with a dedicated, 3,000 m2 pharma and healthcare center.

Cargolux’s Maintenance & Engineering Division (M&E) delivers technical support for the Boeing 747 freighters of the airline. In addition, M&E offers third-party maintenance services for outside customers at its modern two-bay maintenance hangar in Luxembourg. The division is specialized in 747 line and hangar maintenance up to and including C Checks. It also offers a range of specialized maintenance services and holds approvals for other aircraft types, including the 737, 757 and 767.

Following the first deliveries in late 2010, the Boeing 747-8 freighter is gradually replacing the 747-400F in Cargolux services. This technically and economically advanced aircraft offers superior operational performance, higher payloads and lower fuel consumption than any other freighter in its class.

Cargolux is a major employer with close to 1,200 staff at its Luxembourg headquarters and another 400 staff worldwide. In2011,revenuesreachedUS$1.9billionandthecompanycarriedabout660,000tonnes of freight on its international network that covers 66 flight destinations. That sameyear,theCargoluxfleetflew77,294blockhourswhilethedailyutilizationofits aircraft was above 15 hours, one of the highest figures in the air freight industry. In addition to its scheduled flights, Cargolux also offers charter services.

For more information, please visit : www.cargolux.com

air freighT

CargocenterLuxairCARGO is the leading air freight handling agent at Luxembourg airport, making it one of the largest air freight platform in Europe. LuxairCARGO caters for all categories of cargo and aircraft and has a capacity of 1,200,000 tons per year, with further possibilities for expansion. Integrated processes from aircraft to truck and vice versa are a unique and valued benefit offered by LuxairCARGO.

The state-of-the art 80.000 sqm Cargocenter has automated stacking, retrieval and loading for up to 1,640 unitloaddevices(ULD).Adedicated90,000sqmramparea,locatednexttothecargocenterareasupportssimultaneous handling of up to eight wide-body aircraft. This set-up results in average transit times for cargo of only eight hours, while a fully loaded B747 freighter can be turned-around in as little as two hours.

It is no surprise that LuxairCARGO has developed a major distribution hub for high-tech goods, perishables, livestock, pharmaceuticals and consumer products. The facilities and handling processes are additionally designed to handle off-size, heavy, or high-value cargo. A sophisticated infrastructure is also available in regard to the landside access. Being adjacent to major pan-European motorway networks enables goods to be deliveredwithinonebusinessdaytothemajorityoftheEUeconomiccenters.

Infrastructure and integrated services make LuxairCARGO, the leading independent cargo handling agent in Europe.

- Warehouse: 85.500 sqm(Including Pharma & Healthcare Center 3.000 sqm)

• Warehousecapacity2°to8°C:350pallets(Europallets)

• Warehousecapacity15°Cto25°C:1,270pallets(Europallets)

- Outsized cargo: 7,400 sqm covered

- Cargo A/C positions: 8 Widebody

- ULD storage capacity: 1,664

- Build-up/break down stations: 100

- Truck docks: 113

- Capacity: 1,200,000 tons/year

- TAPA-A certified

- A neutral “road feeder” network

...is owned and operated exclusively by LuxairCARGOFor more information, please visit : www.luxaircargo.lu

Luxembourg’s rail freight activities are concentrated in Bettembourg and Dudelange, right next to the Eurohub South logistics park. This strategic geographic location connects CFL cargo’s marshalling yard and CFL Multimodal’s terminal and warehousing facilities to the main European transport networks. Together with the CFL cargo subsidiaries in Denmark, Germany, France and Sweden, the two companies are able to service Europe’s main industrial areas and ports.

CFL CargoSpecialized in cross-border transport and logistics solutions, CFL cargo provides its customers with truly pan-European door-to-door rail freight services.By listening to the customer’s needs and finding flexible solutions, CFL cargo is able to offer a large portfolio of services, ranging from the issuing of waybills and local shunting activities to the assembly of international trains and the management of oversize load transportation. Thanks to its multilingual workforce and multi-system locomotive fleet, CFL cargo can offer its international customers a single-point-of-contact for their transportation needs.

raiL freighT

CFL CARGO:

Rail freight volume: 1207 Mtkm

Multimodal TerminalBy developing new destinations for its combined transport activity and continuously improving the existing infrastructure, CFL Multimodal contributes to the modal shift from road to rail. This modal shift is a priority as well on the national as on the international level, in order to reduce CO2 emissions in the transportation sector.

CFL Multimodal operates the Bettembourg multimodal terminal and the rail motorway platform which connect Bettembourg with Le Boulou (Southern France).The new terminal on the Eurohub South site, slated to be operational by 2015, will be endowed with 4 combined tracks and 2 rail motorway platforms, each 700 m long. This new facility will significantly increase the attractiveness of Luxembourg as a hub for combined transport. In addition to this project, the construction of a future multifunctional warehouse on the Eurohub South site will enable CFL Multimodal to bring together all its high-added value logistics activities on one single site.

CO2 emissions savings multiplied by 3 between 2015 and 2025.

For more information, please visit : www.cfl-cargo.lu www.cfl-mm.lu

MULTIMODAL TERMINAL: 2012 2025

Containershandled 90,000 300,000

Trailers handled 40,000 300,000

road TransPorT

Luxembourg is very well ranked in the field of international road transportation. The economic activity in Luxembourg contributes to the development ofhighly specialized road haulage operators who are recognized in Europe for their professionalism. About 800 transport companies are established in Luxembourg and 400 operators are specialized in international transport. These companies run about 5,000 trucks and employ 7,000 drivers. Due to the small size of the country, all companies have developed international competences and can be seen on all roads in the EuropeanUnion.The rangeofofferedservices is largelydiversifiedand includes:

•Roadtransportsolutions

•Rail-Roadtransportsolutions

•Flowmanagement

•Distributionofpalletizedgoods

•Distributionofparcels

•Expresstransport

The road transport sector can provide solutions for all transport requirements, flows and volumes. The trained and responsible drivers can meet all transport needs, with a state-of-the-art vehicle fleet that complies with the latest standards. The offered transport solutions take in consideration all constraints linked to environmental costs and alargepartoftheglobalfleetareEURO5trucks.

Road freight transport in Luxembourg 2013

Road haulage operators carrying out international carriage of goods by road 377

Number of trucks 5,262

Numberofdrivers 7,179

source: mddi, 18.04.2013

Road freight transport operated byhauliers registered in Luxembourg bytype of operation 2011

Total 8,835 million tkm

source: eurostat, clc

fLuviaL freighT

The Port of Mertert is designed to meet the needs of the development of the economy of Luxembourg. Connections by river, rail and road contribute to its proper insertion in the trans-European transport networks.

In front of the backdrop of the ideal strategic location of the Port of Mertert representing a unique site in Luxembourg comprising the three transportation modes and allowing a transshipment from river, rail and road, the company of the port with the support of the Ministry of Sustainable Development and Infrastructure, together with their handlers, expends every means at its disposal to ensure the sustainability of the Port of Mertert. In a nutshell, the Port of Mertert is designed to meet the needs of the development of the economy of Luxembourg. Connections by river, rail and road contribute to its proper insertion in the trans-European transport networks.

The fluvial freight at a glance

Located on the municipalities of Mertert and Grevenmacher on the left bank of the Moselle, the Port of Mertert has a total area of 65 hectares.

Both docks along the port basin, on which are installed 10 rolling cranes with a lifting force of 12 to 35 tons, have a total length of 1,600 meters.

For more information, please visit : www.portmertert.lu www.luxport.lu

Created in 2008 as a non-profit organization, the Luxembourg Maritime Cluster (CML) brings the Blue Economy of the Grand-Duchy to the fore. Forty-two companies and institutions represent proudly and convincingly the local maritime business community, nationally as well as internationally. Members of the Cluster offer together a wide variety of maritime business experience and expertise: shipping, dredging, classification, ship brokerage, banking, law, consultancy & audit, insurance, security and safety, railway and maritime logistics.

It is estimated that about 1,000 jobs in Luxembourg are linked directly or indirectly to the maritime sector. Indeed the ship owners established in the Grand-Duchy provide jobs to some 400 highly-skilled employees on shore and around 4,000 at sea; and a further (approx.) 600 maritime related jobs are located in insurance companies, banks, law firms, consultancy groups and last but not least maritime logistics operators, i.e. the “flagship sectors” of the Grand-Duchy. In other words, revenues created by the maritime activity go far beyond the registration fees paid by ship-owners and the overall benefits for the country are considerable in terms of job creation and wealth production.

Since 2011, the CML holds the Vice-Presidency and the General Secretary of the European Network of Maritime Clusters, a confederation of Clusters or equivalent cross-industry organizations.

The mariTime secTor

The maritime sector at a glance

Luxembourg Maritime Authority: a customer-minded one-stop shopISO9001certified,Technicalexpertise

The ship register is a success-storyContinuously increasing number of ships; currently 250 registered ships, grossTonnageofthefleet:1,294,417;MajorshippingcompaniesestablishedinLuxembourg, 335 certified shipping companies; Mostly state-of-the-art vessels, average age of the fleet: 6.3 yearsWell-knownqualityflag:WhiteListParisMemorandumofUnderstandingonPort State Control (one of the main international instruments in the continuous fightagainstsub-standardvessels),theSTCWwhitelist.

Luxembourg Maritime Cluster: A Strong Shipping CommunityEasy networking and sharing of knowledge

For more information, please visit : www.cluster-maritime.lu

The prime location at the airport and the rail-road hub offer logistics and freight forwarding companies fast and cost-effective cargo movements. Safety, security, efficiency, innovation and cost-effectiveness are all priorities. Local companies and subsidiaries of international logistics groups benefit from this dedicated business environment and have developed their services in Luxembourg. The wide range of services includes classic 3PL activities, but has extended to highly specialized contract logistics solutions.

The logistics and transport companies located in Luxembourg are specialized in international air freight (transport, air cargo, airplane container, etc.), international sea freight forwarding, and land transportation. In this specific area, companies offer transport solutions in inland waterways, road transport, rail carriage and combined rail-road services. Many of these companies have extended their offer to warehousing and value added logistics services offering full supply-chain solutions to their customers.

An important number of qualified players (i.e. handling agents, forwarding agents and logistics technology providers) provide quality services allowing just-in-time access to all European countries. As a result, numerous international companies are shipping their products through Luxembourg to tap the European market.

TransPorT & LogisTics services

The prime location at the airport and the rail-road hub offer logistics and freight forwarding companies fast and cost-effective cargo movements. Safety, security, efficiency, innovation and cost-effectiveness are all priorities. Local companies and subsidiaries of international logistics groups benefit from this dedicated business environment and have developed their services in Luxembourg. The wide range of services includes classic 3PL activities, but has extended to highly specialized contract logistics solutions.

The logistics and transport companies located in Luxembourg are specialized in international air freight (transport, air cargo, airplane container, etc.), international sea freight forwarding, and land transportation. In this specific area, companies offer transport solutions in inland waterways, road transport, rail carriage and combined rail-road services. Many of these companies have extended their offer to warehousing and value added logistics services offering full supply-chain solutions to their customers.

An important number of qualified players (i.e. handling agents, forwarding agents and logistics technology providers) provide quality services allowing just-in-time access to all European countries. As a result, numerous international companies are shipping their products through Luxembourg to tap the European market.

funding services

In order to facilitate the establishment of new logistics activities, the logistics action plan of the Luxembourg government made land available to companies planning to implement a value added logistics project.

For this purpose, the activity zones Eurohub Center in Contern and Eurohub South in Bettembourg/Dudelange have been designated as dedicated logistics parks.WhileEurohubCenterhosts foremost logistics activities related to airfreight, Eurohub South will be dedicated to railway logistics.

Eurohub Center has already been operational for several years, hosting well-known international logistics service providers. It is well located on the crossing ofthemainfreightcorridorsfromNorth-WesttoSouthEastEuropeandfromNorth-EasttoSouth-WestEurope.EurohubSouthwillbeanextendedgatewayof the main European sea ports. Indeed, Eurohub South has a direct railway connection to the main European sea ports, a direct access to the major highways and is neighboured to the container terminal, the marshalling yard as well as the rail-motorway terminal.

An investment of over 200 million Euro has being allocated to build up state of the art infrastructures. The construction works are currently ongoing and Eurohub South will be fully operational by 2015.

The new logistics parks will be one of the top 10 locations for European transport and logistics services. The unique combination of a multimodal terminal beside a dedicated logistics park will offer to forwarders and shippers a large range of business potentials. The close connection with research institutes and innovation agencies will allow to operate innovative logistics solutions to develop Luxembourg as :

•Gatewayfrom/toandthroughEurope

•Cross-dockhubforEuropeanlandtransport

•Europeanandregionaldistributioncentre

•Logisticscentreforvalueaddedservices

•Trafficflowmanagementcenter

LogisTics Parks

The Luxembourg Freeport will offer storage facilities and safes of various sizes to store in optimal conditions your works of art, precious metals, wines, antiques, jewels, documents and other valuables.

•GoodscanbeimportedintotheLuxembourgFreeportfreeofVATand customs duties.

•StoragefeesarealsoVATexempt.

•GoodscanbeshippedtotheLFPfromanywhereintheworldbyroadorbyair.

•TheLFPisexpectedtobeoperationalin3Q2014.

For more information, please visit : www.luxfreeport.lu

Luxembourg freePorT

AFRICA

MIDDLE EAST

MUNICH

BERLIN

COPENHAGEN MALMÖ

BUDAPEST

MADRID

VIENNA

BARCELONA

VALENCIA

ZEEBRUGGE

PARIS

LONDON

SOUTH AMERICA

INDIA

ASIA

NORTH AMERICA

BORDEAUX MILAN

ANTWERP

ROTTERDAM

LUXEMBOURG

Luxembourg : when location mattersLogistics Business ForumApril 17th, 2012

Global logistics. Tailor-made solutions.

Global logistics. Tailor-made solutions.

cluster for Logistics Luxembourg

Alain Krecké7, rue Alcide de Gasperi

L-1615 Luxembourg

(+352)423939849

[email protected]

www.clusterforlogistics.lu