How Romania is connecting continents across the Black Sea
‘Nearshoring’ and ‘reshoring’ trends have changed the face of global trade in recent years, shortening supply chains in a move customers hope will increase resilience against economic headwinds and geopolitical tensions.
Specifically, in recent years, major businesses have relocated or expanded manufacturing facilities in Romania and the surrounding region, as shown by the increase in greenfield foreign direct investment (FDI) into factories in locations close to western Europe. Over $82 billion has been invested between 2022 and 2023 to manufacturing projects in 15 nearshoring destinations – with Eastern European countries seen as the most palatable.
To put this into perspective, according to the 2023 Nearshoring study by Inverto, 57% of companies surveyed said they already source goods from the region, while 32% plan to relocate their activities to Eastern Europe in the coming years.
Manufacturers worldwide are increasing their presence in Europe, with acquisitions and leases of industrial space rising by 29% (to 9.6million square feet of industrial space) in 2022, driven by concerns over geopolitics and supply chain resilience.
In looking at the sub-themes within this wider re-shoring and nearshoring trend, we would be remiss not to mention the impact of the automotive sector. Automotive manufacturing has also risen across the region, pushing automotive OEMs (Original equipment manufacturer) and customers alike to relocate their manufacturing facilities in strategic locations, such as Romania, Hungary, Poland and Türkiye.
In Turkey, the total automotive market grew by 24% in the first quarter of 2024, while in Hungary, the . According to a report by PZPM and KPMG in Poland, automotive production in 2023 was 26.7% higher than in 2022.
Connecting East and West
Automotive manufacturing increased rapidly in the region in recent years and is expected to grow further. Automotive already makes up 13% of Romanian GDP, with Mercedes-Benz, Renault-owned Dacia and Ford all manufacturing in the country. Automotive firms are also increasingly investing in neighbouring Hungary and Poland and nearby Türkiye, making robust supply chains and logistics infrastructure increasingly essential not just for Romania, but for the surrounding region .
Just recently DP World invested €115 million in the port of Constanta. The investment will fund a new 5 hectares ‘project' cargo terminal for heavy, large and complex cargo. A new multi-transport platform will open in 2025 with a new ‘roll-on, roll-off’ (RO-RO) terminal that will handle 80,000 vehicles per year at its peak. With continued investment, the port’s surface area has increased from 322,000 sqm in 2004 to an expected 810,000 sqm by the end of 2025.
The terminal’s strategic location has enabled DP World to establish unparalleled connections with Central and Eastern Europe, positioning Constanta as a pivotal gateway for trade between East and West. DP World’s investments in the terminal – totalling €130 million – have led to a remarkable fivefold increase in container volumes, transforming Constanta Port into a bustling hub of activity.
In 2004, when DP World first signed the contract to develop and operate the container terminal in Constanta South Port, it operated zero volumes. Over three short years later, in November 2007, DP World handled the first million TEUs (twenty-foot equivalent units) and in 2008 it set the volume record – almost 1.2 million TEUs. Since then, DP World has processed almost 13 million TEUs.
To put these numbers into perspective, before DP World operations began, Constanta Port handled circa 250,000 TEUs annually – now operating circa 700,000.
Smarter logistics
DP World's commitment to enhancing trade connectivity in and through Romania extends beyond our operations in Constanta.
We recently announced a new intermodal terminal in Aiud. Located in the industrial heartland of Romania, Aiud is now home to a new, 82,000 sqm state-of-the-art intermodal logistics hub following DP World’s €21 million investment.
The terminal will have direct access to the A10 motorway and will have its own rail infrastructure on Romania’s electrified rail network, which directly connects to major hubs across Europe. It will also provide electrified rail and truck loading/unloading, stripping/stuffing, office spaces, and static storage capacity of 3,000 TEU and generate 30 direct job opportunities for the local workforce over the next five years.
The state-of-the-art Aiud intermodal terminal will link an area that contributes 50% of Romania’s industrial GDP directly with rail connections across Europe and all the way to China, providing regional exporters and importers with direct and faster access to major transport hubs across Europe and beyond.
There is a bright future ahead for the trade sector in Romania and that will have direct benefits on the economy and the people within the country. We are proud to be playing a part in that future.