Why the centre of gravity in European logistics is shifting East

It has been a tumultuous few years for the European logistics industry. Amidst intense disruption – from COVID-19 to the war in Ukraine, inflation and supply chain volatility – it has sometimes been difficult to step back and identify the trends which are quietly reshaping the sector long-term.

One such trend is the steady reorientation of international trade and logistics towards Central & Eastern Europe (CEE) – a transition that has accelerated significantly since the pandemic.

Let’s look at the numbers.

Between 2019 and 2024, seven EU countries recorded a 35%+ increase in both imports and exports. Six of those countries are in CEE (Slovenia, Croatia, Greece, Poland, Bulgaria and Romania). Cyprus also saw imports rise by over 50% in that period, while Turkish exports reached an all-time high in 2024.

The trend is visible in road freight volumes too. Over the same five-year period, road freight volumes increased by 3% across the EU, but eight countries registered growth of more than 10%. Six of them were in CEE (the Czech Republic, Bulgaria, Cyprus, Lithuania, Croatia and Romania). In Türkiye, road freight grew by approximately 25% over that time.

What is driving this shift?

Several structural factors are converging to drive this eastward momentum, but two are particularly noteworthy:

1. Nearshoring to enhance supply chain resilience and cost efficiency

Eastern Europe offers a compelling combination of cost efficiency, geographic proximity to Western Europe and existing deep integration into global supply chains. These qualities have made it a natural destination for companies pursuing nearshoring strategies.

Take Romania, for example. Last year, it saw a 54% increase in FDI projects, rising four places to rank 13th in EY’s European FDI Attractiveness Index.

2. Investment in transport infrastructure

The EU’s Connecting Europe Facility has allocated €11.29 billion for 2021-2027 to support transport infrastructure, with over €7 billion committed last year to 134 projects – ranging from railways and roads to inland waterways.

Outside the EU, Türkiye’s plans are even more extensive. The Turkish government has budgeted approximately €8.5 billion for transport infrastructure in 2025 – a 37% increase on 2024.

Private sector catalysts

The private sector has a key role to play in helping accelerate this shift eastward – and ensuring that the region reaps the economic rewards.

DP World is an example of how this can be done.

In 2023, we announced a €130 million investment programme in Romania. This included the launch of a new intermodal terminal in Aiud, in the industrial heartland of Transylvania. Its location – close to key road and rail links – has already made it a vital logistics node for Romania.

Earlier this year, in Bucharest, we then opened the Operational Control Tower for our integrated, end-to-end logistics service across Europe.

In Türkiye, where our six freight forwarding hubs are strategically placed near key manufacturing clusters, we are also expanding our logistics footprint rapidly. We recently launched a dedicated truck fleet and are investing in new warehousing capacity to meet rising demand.

Challenges remain – but collaboration can help overcome them

Needless to say, this transformation does not come without obstacles.

While inflation has eased in most of Eastern Europe, it remains persistently high in some countries – eroding some of the region’s cost advantages.

Moreover, particularly outside the EU Single Market, customs and border complexity can be stubbornly difficult for companies to navigate.

And despite impressive infrastructure investments, intermodal integration is still patchy and requires further attention to match the highest Western European standards.

These are barriers to growth, but focused collaboration between governments and the private sector can help overcome them. The closer we work together, the more likely it is that the correct issues will be prioritised – and the right solutions will be found.

The good news for the logistics industry in this region is that the economic case for supporting international trade has never been clearer to policy-makers across Eastern Europe. It is broadly understood that few other sectors offer the same potential to stimulate local economies, and that is fuelling an appetite to partner with businesses to scale the industry.

With political will and commercial ambition in alignment, there is nothing stopping Eastern Europe becoming the backbone of a more resilient European supply chain – and the logistics sector driving economic growth across the region for decades to come.