Given its accessible location and proximity to two of the world’s great port cities – Amsterdam and Rotterdam– the Netherlands has historically been a center of commerce and trade.
A new study, High Quality, Competitive Costs: Benchmarking the Netherlands as a Gateway to Europe, suggests the country’s reputation for cargo distribution – in terms of cost, quality, and supply chain sustainability – remains intact. The report, prepared by the Holland International Distribution Council and partners Buck Consultants International and Ernst & Young, explores different European logistics hot spots and compares their site selection appeal for distribution center operations.
Because of the Netherlands’ position as a gateway to Europe, and the large volume of intercontinental sea and air freight into the country, transport tariffs are generally competitive, notes the report. The Netherlands is also a leader in Europe in terms of labor flexibility – crucial for scaling logistics operations – and its tax and customs authorities are among the most efficient in the world.
Mode accessibility and centrality to Europe’s consumer populations make the country an ideal location for sustainable development, the report suggests.
But what the study doesn’t overtly acknowledge is the looming specter of congestion in and around the Netherlands’ biggest cities, one of Europe’s most densely populated areas. Efforts to “green” industry and commerce are magnified, making sustainable development a necessary target for further growth.
Traffic has become such a problem that the Dutch cabinet recently passed legislation to tax drivers by the miles they drive, akin to plans discussed and debated in North Carolina, Oregon, Massachusetts, and Texas, among others. Nearby countries facing similar issues – notably Germany and Belgium – will likely keep a close watch on how these proceedings develop.
The government expects to implement the tax in 2012, with a goal of eventually cutting traffic jams in the country by 50 percent. All revenue would go toward improving road and rail infrastructure.
Critics of the tariff suggest authorities would be better served investing more time and capital into building better linkages between roadway systems to alleviate congestion.