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SECTORSTRANSPORT


Transport and Warehousing Cities of the Future 2020/21 Winners


HONG KONG HAS BEEN AWARDED FIRST PLACE IN THE INAUGURAL TRANSPORT AND WAREHOUSING CITIES OF THE FUTURE RANKING, WITH SINGAPORE IN SECOND PLACE AND LONDON IN THIRD. AIDEEN DUFFY REPORTS


essential items and long delivery delays, Covid-19 has disrupted the globe’s transport, warehousing and logistics sectors beyond what many governments and companies could have expected. Our new ranking comes at a time when efficient and reliable supply chains are more important thanever,withmany coun- tries re-evaluating their dependence oncomplex globalised networks. The pandemic has unveiled the


W


risks and hidden consequences of globalisation, and has certainly been a blow to the supremacy of ‘just-in- time’ logistics. Countries may begin to rethink their supply dependency on other countries, perhaps moving more towards a ‘just-in-case’ produc- tion strategy with a focus on supply chain resilience. There are signs that the trend in offshoring production may be reversing, particularly in the


FDI PROJECTS IN THE TRANSPORTAND WAREHOUSING SECTORBY REGION, 2019AND2020


ith most traditional in-store retailing shut in the spring of 2020, with shortages of


US and Europe. The graph below, based on data derived from fDi Markets, compares total FDI Transport and Warehousing projects in 2019 and 2020, with the Asia- Pacific region seeing the largest drop in project numbers. The pandemic has also fuelled


more interest in sustainability, with many countries viewing the virus’s economic disruption as both a wake- up call and an opportunity for impact investment into the emerging green economy. While Covid-19 is cer- tainly different from other natural disasters caused by climate change, it exposes how vulnerable the world’s supply chains are to natural events. The shipping industry has shown


Source: fDi Markets 112


impressive resilience over the past year, as many airports ground to a halt for a significant portion of 2020. The Financial Times recently reported that the composite index of the Shanghai Containerised Freight Index hit an eight-year high in 2020. The top three winners all have sub- stantial stakes in the shipping indus- try, with deep-water ports connect- ing their cities to the world’s water- ways. It is interesting to note that despite the possibility of near-shor- ing and fears about complex supply chains, four of five of the top Transport and Warehousing winners are in Asia. This suggests that the region’s longstanding reputation within the Transport and Warehousing sector, in addition to years of investment in facilities and capacity,may protect locations in the


www.fDiIntelligence.com December 2020/January 2021


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