Logistics Sector

With our logistical capabilities, we can transport a wide variety of goods

Breakdown of the logistics and transportation sector by turnover (%)

The logistics sector in Estonia L

ogistics has been a strategically important and comprehensive sector in Estonia throughout the years. The significant role played by this sector is due to the favourable geographical location that Estonia has – the border with Russia and proximity to the CEE, Scandinavian countries and Western Europe, which has enabled Estonia to become one of the most important transit corridors in the Baltic Sea region.

Estonia has a well-developed infrastructure network, with different modes of transportation: railway, road, sea and air transport. Its location in the Baltic Sea region has enabled Estonia to enhance its sea transport capabilities, and Estonian ports are used as hubs for transit on eastern-western routes.

land passengers transport

3% transport via railways air transport

3% supporting activities

55%

Source: Statistics Estonia

3% water transport

11% freight transport by road

23%

T

he logistics sector employed nearly 38,600 people in 2007. The majority of the people are engaged in road transportation, including passenger transport.

Total turnover of the sector has increased rapidly over the past five years. In 2007 the turnover totalled 4.4 billion EUR of which exports formed 47%.

Examples of companies in the sector: AS Tallink Group (largest ferry company in the Baltic Sea area), Port of Tallinn (port), Port of Sillamäe (cargo port), Baltic Scandinavian Lines (ro-ro ferries), Mediterranean Shipping Company (shipping agency), Eurolines Baltic (express coach), DSV Transport (transport and logistics services), Itella Logistics (transport and logistics services), Schenker (transport and logistics services), CF&S Estonia (shipping agency), Estonian Air (airways), Sky Partners (air cargo agency), Cargo Handling AS (airfreight cargo handling), Arco Transport (dispatching), DHL Eesti (postal services), FedEx (postal services), DPD Estonia (postal services), Eesti Post (postal services), Meta-Eks SP (cistern rental), Allando Trailways (international road transport) and many more.

Estonia has in total 12 airports of which 5 are open for international traffic.

In total there are more than 30 ports – the biggest of these are Port of Tallinn with its 5 harbours, Port of Sillamäe, and Port of Pärnu.

The Estonian railway is a key link in cargo transport between Russia and Western Europe.

Main advantages and strengths of the Estonian logistics sector Well-developed infrastructure with great location that supports the development of the logistics sector

Good geographical location Highly developed infrastructure Openess to the Baltic Sea Year-round deepwater ports Capabilities of accommodating large vessels Feeder opportunities to neighbouring countries

Pre-developed industrial parks at ports Biggest port on the shores of the Baltic Sea Tax-free zones Logistics centres High geographical coverage with newly renovated airports Constant increase in air traffic Well-developed railway network with the same tracking beam (gauge standard) as in Russia

High know-how and skilled and low cost labour in logistics services offer profitable business opportunities

Long history in logistics Increasing labour productivity High level education in logistics Competent labour force Competencies for over-capacity transport Low cost labour Stable environment and sector regulations Transparent strategic development in the sector Clear regulatory system Transparency in government leadership Good language skills