Spain transport integration boosts logistics investment

Investment opportunities in the Spanish logistics sector are around the key cities of Madrid, Barcelona, and Valencia with the latter two being part of the so-called ‘Golden Banana’ logistics corridor, which stretches along the Mediterranean coast from Valencia to Genoa. 

The cities of Zaragoza, Bilbao, Valencia and Malaga offer further logistics opportunities as they are located along international infrastructure corridors and are the largest cities in terms of population size after Madrid and Barcelona. These locations offer access to transport links and a large consumer base as the speed of delivery and reliability matter more than ever.

Decarbonising logistics industry 

As road transport is by far the easiest mode for last-mile delivery because it can reach nearly all end consumers, investors are targeting logistics facilities in urban locations and conurbations where industrial land is constrained and demand from occupiers is high. But since the transport of goods is a major contributor to carbon emissions and more logistics operators and corporates are committing to net zero, more sustainable modes of transport are becoming increasingly more important for the logistics industry.

The push for more decarbonisation policies is encouraging large-scale infrastructure projects in Spain and across Europe.

High-speed rail link

Last year it was announced that Spain aims to complete the Mediterranean Corridor high-speed rail link by 2026, which will bring high-speed rail lines to four regions – Catalonia, Valencia, Murcia, and Andalusia.

According to the plans, the train line will connect Almeria in Andalusia with France, move more freight traffic from road to rail and make more urban areas along this corridor more accessible. Spain is also being further integrated into the trans-European transport (TEN-T) core network aiming to improve freight travel time. With €14.75 billion of planned investment in 2021-30, according to the European Commission, Spain is among the top five recipients of TEN-T funding.

For long distances freight transport by rail and inland waterways will increasingly provide an alternative to road transport but low-carbon intermodal links are crucial for goods to reach their destination. This will offer opportunities for logistics investors and developers alike as there is a need for new multi-modal warehouse facilities accessible by different transport modes around existing and emerging infrastructure hubs.

Investment volumes

In addition to infrastructure expansion, the availability of workers and the relatively lower minimum wage offer a favourable environment for logistics operators to expand in Spain all of which provide a driver for investment demand. Industrial investment volumes in Spain totalled €3 billion in 2021, the highest level on record, according to RCA. Demand for Spanish logistics space remains strong as the country is taking advantage of structural changes and benefitting from infrastructure investments.

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