Basics 6/6: Enabling infrastructure

German economy relies on enabling infrastructure.

The German economy is based upon a reliable and well-functioning infrastructure, including strongly developed logistics. It has a very well-developed logistics infrastructure. In 2014, the German logistics market generated a turnover of 290 billion euros, which makes it by far the largest in Europe.1

With its central location in the middle of Europe and surrounded by nine neighbouring countries, Germany experiences more goods pass through it than any other European country. In the north, the seaports, with Hamburg in particular, play an important role in maritime transportation (although recently critics claimed the Hamburg port might not meet global standards).

A wide network of roads, railway links and inland waterways spans the entire country. Road traffic is the most dominant with 71 percent of traffic volume in terms of tonne-kilometres being transported on road, followed by rail, accounting for 17 percent.2 According to the Logistics Performance Index (LPI) compiled by the World Bank, Germany ranks first worldwide.

Moreover, Germany ranks first on the sub-index measuring infrastructure.3 To keep this outstanding position, Germany needs continuous investments in the logistics infrastructure, due to the high load on German roads, but also due to changing demands on e.g. seaports (see Hamburg). Other important enabling infrastructures are energy and digital infrastructure.

About the author: Mark Pfeiffer is a German based retail professional, piloting nonfood consumer goods of international companies into German retail.

1 Deutsche Bank Research: Logistik in Deutschland – Vorerst nur geringe Dynamik, 2015
2 Deutsche Bank Research: Logistik in Deutschland – Vorerst nur geringe Dynamik, 2015
3 World Bank: International LPI Global Ranking, 2016

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