Logistics

Luxembourg ranks second best performing country in terms of logistics

The World Bank's Logistics Performance Index confirms the Grand Duchy's good results

01-logistique_hDue to its excellent strategic location, Luxembourg has established itself as an ideal intercontinental logistics operations hub for value-added logistics activities. And this is no news for a country that has been promoting the logistics sector for years. However, a recent World Bank study underpins Luxembourg's great achievements in this domain. While Luxembourg honorably ranked in eighth place in 2014, it arrives in second today. 

According to the World Bank's Logistics Performance Index (LPI), the Grand Duchy ranks second of the countries with the best logistics performance. The International LPI ranking is led by Germany (4,23), very closely followed by Luxembourg (4,22) and Sweden (4,20). Our neighbors were slightly lower ranked with the Netherlands 4th (4,19), Belgium 6th (4,11) and France 16th (3,90).

The first edition of the Logistics Performance Index (LPI) dates back to 2007, when Luxembourg ranked 23rd. In the following studies, the ranking improved. In 2012, the Grand Duchy ranked 15th, in 2014 it ranked 8th and in 2010 even 5th. If the result in 2016 is excellent, this is largely due to the considerable efforts made in this sector with the support of the Luxembourgish government.

The three pillars of Luxembourg's logistics

Luxembourg's logistics sector rests on three pillars: air cargo, through Cargolux company, rail cargo, with CFL Cargo and CFL Multimodal, as well as river freight.

All in all, Luxembourg benefits from the good connectivity and its attractive economic environment. Thus, a host of world class players from the logistics sector have opted for Luxembourg as operational basis for their value-added logistics activities: Cargolux, China Airlines, Cobelfret, DB Schenker, DHL, Kühne + Nagel, Morrisson Express, Nippon Express, Panalpina, TNT, Yangtze River and Yusen Air & Sea, to name just a few.

The entirety of the logistics sector is headed by the Cluster for Logistics, a network designed to support the logistics sector's players in their Luxembourg activities, through the development of synergies and the inclusion of new national and international partners.

It is noteworthy that since September 2014, Luxembourg has a freezone, Le Freeport, a VAT-free area to be used for the storage of valuable goods. And which gave an extra boost to the logistics sector.

(Article written by the editorial team of the portal www.luxembourg.lu)

  • Updated 01-10-2016