PFA and ADP to construct a logistics center for DLG in Fredericia
Denmark's largest agribusiness company DLG gathers its warehouse and distribution activities in a new 28,385 m2 logistics center in Taulov Dry Port - only 5 km from the headquarters in Fredericia. The logistics center for bulk bag and pallet products is erected and financed by a joint venture between the pension company PFA and the port company ADP with DLG as the tenant.
The investment in a new logistics center is part of PFA and ADP's strategy to develop logistics facilities in Taulov Dry Port, which is centrally located in relation to motorways, port and railways in the Region of Southern Denmark. PFA and ADP entered into a joint venture in 2017, where the two parties over the next 10 years will invest 1.5 to 2.0 billion in the development of Taulov Dry Port that is to become Denmark's multimodal transport and logistics center.
Strategically important project
"The construction of DLG's logistics center is an important project in the development of Taulov Dry Port. The investment is part of our strategy to enter larger projects in logistics properties at an early stage, making it possible for us to further influence development. The international megatrends point towards multifunctional logistic centers located at key hubs, and we believe that the investment will be very positive for DLG and for the development in Fredericia, while contributing to attractive return of investments for our pension customers”, says Michael Bruhn, Managing Director, PFA Real Estate. Establishing the logistics center with DLG as a tenant is the first major investment in the joint venture cooperation, where both parties are responsible for the purchase of land and investment in construction.
Optimizing the supply chain for the agribusiness
"For many years, we have had a great desire to gather our activities centrally in Jutland. At the moment, we are distributing bulk bag and pallet products to our farmer customers from many different locations. By gathering this in Taulov, we can offer better service to our owners and customers and overall optimize our business and reduce costs. Therefore, the rental agreement with PFA and ADP is fully in line with our development and strategy”, says Vagn Hundebøll, Group Vice President, Production & Logistics, DLG.
"The new distribution center makes Taulov an important hub for us. Our warehouse activities are centrally located in Denmark in relation to the motorway network and the Port of Fredericia. This gives us the best conditions for eventually connecting import and export of agribusiness products with storage facilities and redistribution to our customers. It will become a coherent logistics chain, which means that we can provide our customers with even better service and efficient logistics that are important factors for our competitiveness”, concludes Vagn Hundebøll.
Connecting port and dry port
DLG's consolidation of warehouse and distribution activities in Taulov Dry Port will strengthen the area's position as a hub for the Danish agribusiness industry.
"We are looking forward to building a modern and future-proof logistics center for one of Europe's largest agribusiness companies, and we also expect that in the long term, it will create a positive development for import and export of grain and feed through the Port of Fredericia, which is already one of Denmark's largest port for the Danish agribusiness sector”, says Nils Skeby, CEO, ADP.
About the new DLG logistics center
The logistics center will be a total of 28,385 m2 and will contain several warehouses for storing and distributing dry goods, including a silo with associated warehouse facilities. Construction is expected to start in the autumn of 2018 and is expected to be ready in spring of 2020.