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VIL©2009 São Paolo, 15 april 2009

Flanders:A unique value

proposition to reach 500 million European

customersProf. Dr. Francis Rome

Brussels, February 9

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VIL©2009

Flanders: A Unique Value

Proposition Proximity Attractiveness Know How & EDC’s Socio Economic Environment Gateways & Infrastructure / Flanders

Port Area Security Major Supply Chain Trends and

Postponement Unique Value Proposition – Extended

Gateway

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FLANDERS

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500 km1000 km

LondonAmsterdam

CologneBrussels

ParisFrankfurt

Dublin

Munich

Milan

Prague

Vienna

60% of EU purchasing power within 500 km of Flanders

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Source : European Distribution Report, Cushman & Wakefield, 2008

Attractiveness2008 2006 2004 2002

BELGIUM 1 1 1 1

NETHERLANDS 2 3 4 2

HUNGARY 3 7 9 9

CZECH REPUBLIC 4 4 5 5

POLAND 5 5 6 7

FRANCE 6 2 2 4

AUSTRIA 7 9 7 8

GERMANY 8 6 3 3

SLOVAKIA 9 - - -

ITALY 10 8 8 6

UK 11 10 10 10

DENMARK 12 - - -

ROMANIA 13 - - -

LITHUANIA 14 - - -

PORTUGAL 15 12 11 11

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In 2006 and 2008 C&WH&B ranked Flanders in pole position for European logistics operations

Source: Cushman & Wakefield Healey & Baker, 2008

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Know-how

Logistics know-how and innovation

Industrial know-how (strategic sectors, assembly,…)

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Sustainable Logistics - The Nike EMEA Logistics Centre

Know-how & Innovation

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More than 700 European Logistics Centres

EDC’s

Source: VIL, 2008

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Socio-Economic Environment

Availability of Productive and Skilled workers: No. 2 Ranking in Bureau of Labour Statistics Report ( USA, 2007)

Labour flexibility is embedded in Social Legislation

Fiscal rulings (Income Tax, TVA and Customs) can be obtained within 3 to 6 months via a dedicated fiscal rulings office

Foreign nationals working in Belgium can benefit from expatriate tax status

Notional Interest Deduction on own assets only in Belgium

No. 1 in KOF Globalization Index (2009)

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Major rail freight flows Major road freight flows Major freight flows via inland waterways

European hinterland

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Short SeaShipping lines

European wealth

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Gateways and infrastructure

4 Seaports: Antwerp, Ghent, Zeebrugge, Ostend (Flanders Port Area) inland ports: Genk, Brussels

1 International Airport: Zaventem (Brussels) Regional airports: Antwerp, Kortrijk, Ostend

Numerous multi-modal and logistics platforms

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Ostend

Zeebrugge

Antwerp

Ghent

BRUSSELS

80 km

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Four modern deep sea ports within a range of just 80 km

Congestion-free operations Excellent nautical accessibility Dedicated state-of-the-art

terminals for all types of cargo Free handling capacity

We Offer

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Over 10,000,000 m²of greenfield land for industrial and logistics development

The largest warehousing capacity in Europe: over 5,000,000 m²

We Offer

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Multimodal distribution network reaching most European destinations within 24 hours

Every possible European destination through Trans European Networks and Motorways of the Sea

We Serve

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Multifunctional ports

Cargo handling

Indu

stry

Logistics

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Antwerp

Largest breakbulk port in Europe n° 1 in steel n° 1 in fruit n° 1 in forest products

European hub for steel, project cargo, ...

Fully automated fruit storage

Second largest petrochemical cluster in the world

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Zeebrugge

Largest hub port for new cars in the world: 2.2 Mio units in 2008

Large forest products terminal

European production center for TROPICANA products (part of European FOOD center)

LNG terminal looks after 15% of the European gas distribution

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Ghent

Largest fruit juice import port in the world. Brasil is the FIRST trade partner for port of Ghent (20% of maritime traffic)

Largest agribulk storage port in Europe

Largest biofuels R&D and production cluster in Europe

Largest integrated steelmill in the world (Arcelor Mittal).

Largest newsprint papermill in the world (Stora Enso)

‘Brazilian’ dry bulk port ( ores, cereals, soybeann salt)

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Congestion free Free capacity available:

Antwerp: Deurganck Dock: 5 mio TEU

Zeebrugge: King Albert II Dock: 2 mio

TEU Ghent: Kluizen Dock: 1000 acres of greenfield for EDC’s and industry

Ostend: 400 acres for EDC’s and industry

Free Capacity

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Antwerp: Saeftinghe Development Area: 

2,500 acres of space to be developed for cargo handling, industry or logistics

Zeebrugge: King Albert II Dock and Inner

Port Area expansion: 1250 acres

Ghent: Rieme Noord & Nest: 625 acres

Free Capacity – Future Developments

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Secure Trade Lanes Mutual recognition C-Tpat / AEO :

• Agreement on roadmap with EU• Already some achievements e.g. exchange of

best practices and training programs with Belgium (Caterpillar, Nike)

Use of Container Security Devices :• Be - Customs involved in pilot projects : • Smart_CM (chaperoned by European Commission)

Velp : Flemish Government pilot project

Flanders Port Area = Safe Port Area

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Major Supply Chain trends

Globalisation Supply Chain Management: a strategic domain

with a high potential for creating a competitive business advantage

Mass-customization and postponement

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Preparing products for European markets

A high product variety based on a limited number of generic models

Options, colors, components are added as close as possible to the end-consumer, i.e. in the distribution centre (DC)

Requires broad know-how in DC

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Postponement

Ford T: 1 model, 1 colour

Lancia Y: 555 different versions

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ICT platform

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Unique Value

PropositionProximity

Flanders Port Area

EDC know-how

Broad know-how

Preparing products for European markets