Warehousing & 3PL in Sweden, Norway, Finland or Denmark

Thomas | Posted on 06/11/2024 |

The Nordic region, comprising Sweden, Norway, Denmark, and Finland, offers a robust and sophisticated logistics market for businesses seeking expansion. This guide provides a strategic overview of the region’s warehousing and 3PL landscape, focusing on key regional hubs, country-specific market dynamics, prevalent trends, and crucial considerations for market entry.

Understanding the Nordic Logistics Landscape

The region benefits from high digitalization, advanced infrastructure, including the crucial “Nordic Trade Triangle” connecting capital cities, and a strategic European location. However, operational costs tend to be higher than in many other European areas. This necessitates careful planning, talking to the right people and understanding of each market’s nuances. One thing is certain: The Nordic countries offer affluent consumer bases, stable business environments, and attract substantial international investment in logistics, signaling confidence in the region’s long-term potential (Savills Research, 2023; CBRE reports).

Key Logistics Hubs and Regions in the Nordics

Sweden

Stockholm North: The largest logistics hub in Sweden (14% market share in 2023). Benefits from proximity to the capital and Arlanda Airport. High demand but increasing vacancy rates warrant careful site selection according to CBRE.
Gothenburg Region: Major port city and second largest logistics hub (12% market share). Focus on maritime logistics and access to western Sweden. Maintaining low vacancy rates compared to other regions.
Jönköping Region: Central location within the Nordic Trade Triangle (12% market share). Offers good connectivity to all Nordic countries. Experiencing higher vacancy rates due to recent speculative development.
Helsingborg Region: Southern hub (9% market share). Gateway to continental Europe via ferry connections. Offers strategic positioning for businesses targeting both Nordic and European markets.
Malmö Region: Growing logistics hub in southern Sweden, benefitting from the Öresund Bridge connection to Denmark and mainland Europe. Focus on cross-border trade.

Read more about doing business in Sweden in our Country Guide on Sweden and check out Business Sweden’s Site Finder to find industrial and warehousing areas in Sweden.

Norway

Norway’s logistics landscape is heavily influenced by its unique geography, dispersed population, and historical ties to the oil and gas industry. While Oslo dominates as the main consumption and distribution center, other regional hubs cater to specific industries and geographic areas. The increasing focus on sustainability and the rise of e-commerce are also shaping the market.

Oslo Region: Undeniably the heart of Norwegian logistics, the Oslo region benefits from its high population density, strong consumer market, and position as the country’s primary import/export gateway.
- Strengths: Modern facilities are in high demand, driven by e-commerce growth and the need for efficient distribution. Excellent transport connections by road, rail, air (Oslo Airport, Gardermoen), and sea.
- Weaknesses: Limited land availability and high real estate costs. Rising vacancy rates, particularly in older, less efficient properties (CBRE, H1 2024), highlight the importance of securing modern spaces.
- Opportunities: Growth in e-commerce and the increasing demand for sustainable logistics solutions present opportunities for specialized 3PL providers and developers of green warehousing.
Bergen Area: Serving as Western Norway’s main logistics hub, Bergen holds a strategic position for maritime logistics, supported by its large port and historical ties to the shipping industry.
- Strengths: Specialized expertise in maritime logistics, including handling of offshore equipment and goods. Growing focus on renewable energy and aquaculture creates new logistics demands.
- Weaknesses: Less developed infrastructure compared to Oslo. Distance from the main population centers can pose logistical challenges.
- Opportunities: The energy transition and growth in aquaculture create significant opportunities for logistics providers with expertise in these sectors.
Stavanger Region: This region’s logistics activities are heavily intertwined with the oil and gas industry. Stavanger boasts specialized infrastructure and a highly skilled workforce catering to this sector.
- Strengths: Deep expertise in handling complex and demanding logistics operations for the oil and gas industry. Well-established supply chains and specialized infrastructure, including the Port of Stavanger.
- Weaknesses: Dependence on the oil and gas sector makes the region vulnerable to fluctuations in energy markets. Limited diversification into other logistics segments.
- Opportunities: While remaining a niche market, the Stavanger region could see opportunities in supporting offshore wind farm development and other renewable energy projects.
Trondheim Region: Central Norway’s largest city and an important logistics hub serving the region’s population and industries.
- Strengths: Strategic location with good road and rail connections. Growing industrial base and consumer market. Trondheim Airport, Værnes, provides airfreight capacity.
- Weaknesses: Smaller market size compared to Oslo and Bergen. Limited specialization in specific logistics segments.
- Opportunities: Growth in e-commerce and the need for regional distribution centers present opportunities for logistics providers.
Eastern Norway (around the Swedish border): This area, including regions like Østfold and Hedmark, benefits from its proximity to Sweden and offers potential for cross-border logistics operations.
- Strengths: Lower operating costs compared to Oslo. Strategic location for serving both Norwegian and Swedish markets. Good road and rail connections to Sweden.
- Weaknesses: Less developed warehousing infrastructure compared to the main hubs. Dependence on cross-border trade flows.
- Opportunities: Growing cross-border e-commerce and the need for efficient and sustainable logistics solutions could create opportunities for specialized 3PL providers.

Mapping Norway’s Logistics Hubs

This interactive map reveals Norway’s warehousing and 3PL landscape. The map identifies several distinct logistics regions, each serving different market needs. The Greater Oslo Region dominates as the primary warehousing cluster, offering modern facilities but facing high costs and land scarcity. The Eastern Border Zone leverages lower operating costs and Swedish proximity, making it attractive for cross-border operations. Meanwhile, specialized hubs in Bergen, Stavanger, and Trondheim serve regional markets and specific industries like maritime, energy, and aquaculture. The transport network connecting these hubs includes major road corridors, rail lines, and shipping routes, enabling both domestic distribution and international trade connections through key ports and border crossings.

Key Considerations for Choosing a Norwegian Logistics Hub:

Industry Focus: Aligning your chosen hub with your industry’s specific needs is paramount. Oil & Gas? Stavanger. Maritime or Aquaculture? Bergen. General distribution/consumer goods? Oslo or Trondheim.
Cost vs. Access: Balance the lower operating costs of regional hubs with the superior access and infrastructure of the Oslo region.
Sustainability: Consider the availability of green warehousing and sustainable logistics solutions, which are increasingly important in Norway.
Future Growth Potential: Assess the long-term growth potential of each region, factoring in industry trends and demographic shifts.

Denmark

Greater Copenhagen: Primary hub with a strong pharmaceutical and e-commerce focus, serving as a Nordic distribution center. Limited land availability necessitates careful planning (CBRE, Q2 2024).
Jutland Triangle: Manufacturing-oriented region with excellent access to the German market via robust transport links. Suitable for businesses involved in industrial production and distribution.
Aarhus Region: Denmark’s second-largest city, growing logistics hub with focus on e-commerce and retail distribution.

To find a warehousing location in Denmark you can contact us (leave your details in the contact form at the bottom of this page). Another great way is the platform lokaleportalen.dk. You can filter out the right warehouse providers. We recommend you to work with a lessor that is established and has 10+ years in the business.

Finland

Helsinki Metropolitan Area: The country’s main logistics hub with port access and international connections. Benefits from improving I&L sector sentiment (CBRE, Q2 2024).
Tampere Region: Central location with an industrial focus, serving as a key center for domestic distribution. Attractive for businesses targeting the Finnish market.
Turku Region: Important port city with growing logistics activity. Focus on maritime logistics and connections to Southwest Finland.

Choosing the Right Location in the Nordics

Several factors should influence your location choice within the Nordics:

Target Market: Which countries are your primary focus? Consider proximity to your customer base and the efficiency of distribution networks.
Industry Focus: Certain hubs specialize in particular industries (e.g., pharmaceuticals in Copenhagen, maritime logistics in Gothenburg/Bergen). Align your location with your industry’s needs.
Cost Sensitivity: Operating costs vary considerably across the region. Balance infrastructure advantages with cost considerations. Norway generally has the highest operating costs.
Labor Market: Labor availability and costs are key factors. Research the labor market dynamics of each region and assess potential challenges.
Brexit Impact: Consider potential impacts of Brexit on supply chains and access to European markets, especially for Denmark.
E-commerce Strategy: If e-commerce is a significant part of your business, prioritize locations with strong e-commerce infrastructure and last-mile delivery capabilities (PostNord, 2024).
Sustainability Goals: Align your location choice with your company’s sustainability goals. The Nordic region offers numerous opportunities for green logistics operations, particularly in Norway and Finland.
Data Center Needs: If your business requires significant data storage, consider Iceland or other Nordic countries with plentiful green energy resources and favorable climates for data centers (Infrastructure Investor, 2023).

Market Entry Checklist:

Regional Selection: Based on the strategic considerations above, narrow down your potential locations.
Infrastructure Assessment: Evaluate the transportation network, warehousing facilities, and other logistical resources available in your chosen region.
Cost Analysis: Conduct a thorough cost analysis, including labor, rent, utilities, transportation, and taxes.
Regulatory Compliance: Understand and comply with local regulations regarding building permits, environmental certificates, safety documentation, and labor laws.
Local Expertise: Engage local experts for guidance on market entry, regulatory compliance, and operational best practices.

Market Trends Shaping the Future:

The Nordic logistics market is dynamic and evolving. Key trends to consider include:

Sustainability: Stringent environmental regulations and consumer demand are driving sustainable logistics practices, including green building certifications and carbon reduction targets.
Automation: Continued adoption of automation technologies will reshape warehouse operations and address labor market challenges.
E-commerce Growth: E-commerce will remain a key driver of warehousing demand and influence location preferences (PostNord, 2024).
Data Center Boom: The Nordic region, with its abundant renewable energy resources and suitable climate, is expected to see significant growth in the data center industry (Infrastructure Investor, 2023).

By understanding the diverse characteristics of the Nordic logistics market, businesses can make informed decisions about their expansion strategies, select the optimal locations for their warehousing and 3PL operations, and capitalize on the region’s numerous opportunities. Careful planning and a deep understanding of local market dynamics are crucial for success in this sophisticated and evolving landscape.

Common Warehouse Types in Scandinavia

Modern Warehouse Facilities

Automated Storage and Retrieval Systems (AS/RS)
Temperature-controlled facilities
E-commerce fulfillment centers
Cross-dock facilities
Bonded warehouses

Industry-Specific Solutions

Pharmaceutical storage (GDP compliant)
Food grade facilities
Automotive logistics centers
High-tech storage facilities

Compliance and Regulations

Regional Considerations

EU regulations (Denmark, Sweden, Finland)
EEA regulations (Norway)
Environmental standards
Work safety requirements
Quality certifications

Documentation Requirements

Import/export documentation
Customs declarations
Safety certificates
Environmental compliance
Labor regulations

Market Players

Major 3PL Providers

DSV AS
PostNord Logistics
DB Schenker Nordic
Bring
DFDS Logistics

Real Estate Developers

Logicor
Prologis Nordic
NLP (Nordic Logistics Properties)
Sagax
Castellum
CBRE