Is there still room for new distribution centers in the Netherlands, or are there already enough logistics halls in the limited space available?
The logistics and transport industry is having a hard time with it. The sector, which in 2020 over 4 percent of the Dutch economy has only grown since the corona crisis. No country in Western Europe has as many square meters of logistics business space per capita as the Netherlands.
Resistance to new ‘block boxes’, as the large windowless distribution centers are jokingly referred to, has grown in recent years. ‘Dozing’ was an important election theme in various provinces during the Provincial Council elections in March. Rules have already been introduced in Noord-Brabant to cluster distribution centres. These types of measures are also being considered nationally.
All parties gathered in Culemborg on Friday for a debate on the future of logistics in the Netherlands. The meeting was organized by the Board of Government Advisors – an advisory body to the government – and Dilas, a partnership of companies in the logistics sector.
Uncomfortable grimace
Although the diversity at the meeting leaves something to be desired in some areas (more than 90 percent is male), the variety of participating parties is remarkable. In addition to the business community, project developers and users of distribution centers, there are also representatives from the Ministries of the Interior and Economic Affairs, and from provinces and municipalities. “Logistics and government – we are not each other’s enemies,” says urban planner Wouter Veldhuis of the Board of Government Advisors prior to the debate.
During the afternoon, the word ‘dozing’ is uttered by almost every speaker with a somewhat uncomfortable grimace. The loaded term, which refers to the rapid rise of distribution centers, has become so established that even the logistics sector can no longer ignore it.
Logistics real estate has been in recent years booming. Although investors are a lot more cautious now that interest rates are rising, logistics real estate has been the most popular property type to invest in for the past two years – even more desirable than residential properties.
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What followed was the rapid emergence of distribution halls in Dutch municipalities near highways. The logistics centers are all about maximum efficiency of what happens inside the walls, which was often at the expense of the outside of the halls: they were gray, windowless and ten to twelve meters high.
The market parties in the room frankly acknowledge their role in the dosing problem. “There are centers that we have built in the port of Rotterdam that I am not proud of,” admits Sander Breugelmans of project developer Prologis. “You can build a bit more industrially in that place. But here there was very little attention for the outside. There was also no own energy generation.”
There are more examples like this. “The Bol.com distribution center in Waalwijk is bright blue,” smiles real estate advisor Olaf Vogelaar, who has the webshop as a customer. Laughter erupts from the room. “We would never do that again – the center that is now under construction is well integrated into the landscape.”
Nevertheless, the consensus is that the large halls are useful and necessary. Logistics is the ‘blood through the veins’ of the Dutch economy, that is the starting point. It becomes more noticeable as the afternoon progresses: the participants in Culemborg, from market parties to government, seem to broadly agree with each other. New distribution halls must be built emission-free, more thought must be given to combining functions – so that people can also live on industrial sites. More money must also be made available for the redevelopment of old business parks and logistics centers must contribute to a ‘better Netherlands’.
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In the closing panel there is still criticism: everyone seems to agree, but why does so little change when push comes to shove? How is it possible that new buildings are still being built while so many old logistics industrial sites can still be redeveloped?
And where is the voice of those who give the word ‘dose’ the emotional charge? The local residents protesting against the construction of a hall in the meadow behind their village, or the small and medium-sized companies that have to move when industrial estates are rearranged?
The reality is that the logistics industry is waiting for national rules for distribution centers. Minister Hugo de Jonge (Public Housing and Spatial Planning, CDA) is working with the provinces on an approach that must determine where a distribution center may be located in the future, which sustainability requirements it must meet and what the consequences are for the immediate environment.
There was no lack of good intentions from the audience. But whether the word ‘verdozing’ will ever be replaced by ‘logistics for a more beautiful Netherlands’, as suggested on stage, remains to be seen.