Italy’s Logistics Sector

Italy’s Logistics Sector

Introduction

For centuries, Italy has been an important gateway between the mineral resource-rich African continent and the commerce-oriented European and Asian continents. Consequently, the development of its logistics and transportation sector is an integral part of the country’s economic and social growth priorities. Notably, some of the biggest names in the industry are Schenker, DHL, Walmart Group, Fedex, and Maersk Group (Mordor Intelligence, 2017). This essay provides an insight into Italy’s logistics sector using numerical and factual information covering air, land, and sea transportation facilities which combine into one of Europe’s , and indeed, the world’s most important logistics network.

How big is Italy’s Logistics Network?

Italy’s logistics network is a large combination of ports, transportation modes, and skilled personnel. Logistics networks comprise of a combination of ports, goods and services, modes of transport, and personnel involved in the generalized but systematic movement of merchandise and expertise from one port to another (Antoine, Sillig, & Ghiara, 2016). Ideally, Italy’s road network is one of the most important components of its logistics network. As of 2015, Italy had more than 6700kilometers of tarmacked roads usable in a logistical sense (Statista, 2018). These roads are used by a wide variety of logistics companies which transports millions of tons of cargo each year. Numerically, speaking, Italy’s road-based logistics is a big enterprise employing more than 2million people. The volumes of cargo dealt with between 2006 and 2014 using Italy’s road network ranged between 100 million and 155 million tons of cargo on an annual basis (Statista, 2018). Such a huge logistical undertaking is made possible by Italy’s relatively advanced road logistics industry which comprises of more than 3000 road-based companies as at 2015.

Railways are another integral part of Italy’s logistics network whereby the country has more than 17000 kilometers of usable railway line as of 2015. These lines are usually divided into light rail, standard gauge rail, high-speed rail, and cargo lines used primarily for the haulage of cargo and merchandise (Antoine, Sillig, & Ghiara, 2016). Looking at the volumes such a developed railways system handles from the logistics perspective reveals it to be the largest mover in Italy. Between 2006 and 2014, logistics companies relying solely on railways in Italy moved between 400 and 550 million tons of cargo on an annual basis (Statista, 2018). Additionally, these companies form an inter-connected network that shifts between merchandise, skilled and semi-skilled laborers, and raw materials.

Depending on the raw definition of logistics, railway is the most crucial part of the Italian logistics network. First, it moves raw materials from ports of entry such as the waterways or sea ports towards their industrial destinations (Mariotti, 2014). Such logistics work almost seamlessly or in tandem with road-based logistics. Additionally, the same rail-based logistics move skilled and semi-skilled labor between their homes and places of work, or between actual places of work. Using three of the most important stations as examples, Torino Porta, Roma, and Milano Centrale, these three rail stations handled more than 356 million passenger combined in 2016 alone. Labor movement is an important part of the logistics network because smooth networks themselves depend on skilled and experiences technicians and drivers. As at 2014, Italy had 11925 kilometers of electrified railway that primarily serves its workforce every morning and evening between work and home (Statista, 2018). Additionally, part of the rail-based logistics network in Italy moves finished goods from industries to wholesale and retail points or even warehouses.

The aviation sector in Europe is an important part of its logistics network. Italy’s aviation sector is relatively advanced and contributes immensely to the economy. The country enjoys annual revenues in excess of 8 billion Euro from its aviation industry and a large part of the same is from logistics. The sector employs more than 40000 employees including freight handlers, pallet truck drivers, technicians, engineers, pilots, and other support personnel. The annual amount of cargo the aviation industry in Italy handles lies between 100million tons and 125 million tons (Mordor Intelligence, 2017). Additionally, the country has dozens of full-fledged air cargo and logistics companies operating out of more than 30 airports (Antoine, Sillig, & Ghiara, 2016). Coupled with its network of international airports such as Fiumicino which handles more than 19million passengers annually, to regional and local airports, Italy’s aviation industry continues to grow.

Waterways and sea ports form another important factor of Italy’s logistics network. Italy’s sea cargo and passenger sectors are divided into two main parts; inland and sea-based systems. Stakeholders project that by 2020, the revenues from their investment in inland waterway-based logistics networks will be at 38.7million US dollars on an annual basis. However, coastal logistics systems are slated to make the most money and enjoy more development as they form a large part of the country’s import-export infrastructure (Mariotti, 2014). Italy has enjoyed revenues ranging between 9billion and 6billion US dollars from its coastal logistics network of ports, ships, docks, container termini,  and harbors on an annual basis from 2008 t0 2017 (Statista, 2018). The sector also employs more than 2million workers on a full-time basis making it an integral part of the economy.

Conclusion

An investigation of Italy’s logistical network cannot be accomplished using the limits provided for in this essay. Combined with the length of time they have been in development and existence, as well as their current and future potential, the exercise would need far more space and time provisions. However, this essay demonstrated the extent to which Italy has developed her road, railway, aviation, and water-based logistics sectors to form one of Europe’s best and most efficient logistics network.