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Logistics Hub Potentials in Cyprus

Logistics Hub Potentials in Cyprus

Cyprus Geographical Location

Cyprus fulfils the role of a hub for a number of key trading areas of world significance. Cyprus is a natural transhipment centre for Europe-Far East trade. The various shipping markets situated along the coasts of the Levant, North Adriatic and Black Sea can easily accessed from Cyprus and with minimum diversion from the main arterial route. Equally, Cyprus is a logical hub for other main-line deep sea trades traversing the Mediterranean and for inter-regional maritime traffic.

Recently the government of Cyprus has come to an agreement for the building of the new airport. The agreement calls for a completion of the new airport by 2009. Such development will attract more transhipment business and will add an integral part in the country’s logistics infrastructure. Larnaca airport has connecting flights to Europe and to the Middle East on a daily basis.

 

Transforming Interesting Ideas into practical operational plans

Eurofreight Logistics has put into use the strategic advantages of the geographical position of Cyprus by establishing a logistics hub for Intervet Middle East, an Akzo Nobel company. The Third Party Logistics agreement between Eurofreight and Intervet Middle East has been into effect since Jan 2005 and during these first eight months Intervet has achieved a 20% increase in Total Sales. The project calls for the following services:

  • Handling of all Imports of Veterinary Pharmaceuticals and transport to Eurofreight Warehouse facility
  • Storing as per Intervet ME instructions. Eurofreight has set up three divisions of storage; Ambient, Chill Storage, and Dangerous Goods storage
  • Inventory Control
  • Picking and Packing
  • Export to 18 countries in the Middle East. On an average we export 30 tones per month.

The project can serve as a case study of how a European based company can penetrate the Middle East market by using Cyprus as a Hub reaping the benefits of

  • Reduced lead times. Goods can be shipped within 24hrs whereas the lead time for order completion was between 5 to 8 weeks. A good example is an order for Amman-Jordan. Customer may place his order by 10:00 hrs and order can be picked, packed and shipped the same day arriving at Amman at 23:15hrs
  • Keeping safety inventory levels.
  • Adding value to their product
  • Increased customer satisfaction

The feedback from Internet is that business has grown in double digits for the current year and it is anticipated this growth rate will last for the remaining of the year. Already talks for an expansion in the Hub facility are under way and expected to be finalised in December of this year.