No green industry without logistics: everything the sector contributes to the economy and the environment

For Industry Minister Roland Lescure, there is no doubt about it : “the destinies of logistics and industry are inextricably linked.” Announcements of public action plans and initiatives aimed at maintaining—or even strengthening—industrial activity in France have multiplied in recent years : the France 2030 plan, Territoires d’industrie, projects of the Industry Committees of the National Industry Council, the Green Industry bill… And these efforts appear to be having an effect, as industrial sites are opening every year in France, such as Siemens Gamesa’s renewable-energy facility in Le Havre, FashionCube’s jeans factory in Neuville-en-Ferrain (Nord), and that of Smilers, a subsidiary of the French Biotech Dental group specializing in dental aligners, in Salon-de-Provence. However, these production activities could not exist without reliable support functions. Transport and logistics are essential to industrial operations, if only to deliver raw materials and components to factories and ship finished products throughout France and internationally.

Although the Industry Minister reiterated this undeniable link at the SITL opening conference, another roundtable held a few hours later suggested that the logistics sector’s importance to the country’s reindustrialization was not being recognized. According to Paulo Ferreira, Afilog vice president and public affairs associate director at Virtuo Industrial Property, “the role of logistics seems to have been forgotten by everyone: the general public, the government, and industry itself.” Over the years, manufacturers have outsourced their logistics to focus on their core business, and that is only natural. Logistics has become more professionalized and a sector in its own right—complementary, yet clearly distinct. Lucile Audièvre, project manager at Logistique Seine Normandie, believes that logistics, including industrial logistics, has not been forgotten but rejected because “it was oversold in terms of jobs created, particularly by the e-commerce sector, and ultimately disappointed local authorities, which no longer want it today.” However, elected officials and the public alike have failed to grasp how the sector has evolved. According to Olivier Poncelet, managing director of Union TLF, “there is a gap between the logistics sector’s low profile and its real positive impact: it accounts for 10 % of national GDP and nearly 2 million jobs!” Even though it contributes only 1 % of land development.

Outsourcing and the professionalization of logistics enable industry to focus on its core business while optimizing this essential link. “Logistics is a competitiveness tool,” recalls Olivier Storch, deputy chief executive officer of Ceva Logistics. “But we have a land-availability problem in France” for this activity. At the same time, the space issue facing logistics is also an issue for industry. “I have in mind the example of one of our industrial clients,” Paulo Ferreira illustrates. “It wanted to expand its production capacity and move logistics off its site in the Pays de la Loire region. That was not possible because of a lack of available land and willingness on the part of local elected officials. Logistics’ current challenge will be industry’s challenge tomorrow.”

In his view, while the fundamentals of passenger mobility have been considered at the national level, freight mobility has not been organized by the government. Lucile Audièvre reaches the same conclusion: a comprehensive strategy that takes both industrial and logistics development into account is essential. To that end, work is underway on a regional logistics-coherence plan under the auspices of the government and the Normandy Region. “When you look at Belgium and the Netherlands, land reserves are located at the foot of ports, ready to accommodate developments,” adds Jean-Olivier Lhuissier, agricultural trading director at Vivescia, an agricultural and food cooperative group. “France needs a comprehensive approach.”

To win acceptance from elected officials and the public, logistics has nevertheless been undergoing transformation for some time : solar panels on warehouse roofs, LEDs to reduce energy consumption, careful landscape integration, reversible buildings… “We are a long way from the ugly shoebox that creates nuisances in the middle of fields!” Olivier Storch emphasizes. “Logistics will also play a fundamental role in decarbonizing our economy through the widespread adoption of the circular economy: goods will have to be brought back to warehouses for repair or recycling.”

When it comes to energy efficiency, logistics is not only a model student, but also supports companies’ environmental efforts… when it is given the opportunity. For manufacturer Vivescia, the lack of a national logistics strategy has a direct impact on the carbon footprint of its flows. “In France, if you want to be listed by certain retailers, you need to have a favorable carbon footprint,” explains Jean-Oliver Lhuissier. “We therefore seek to prioritize sea and rail transport. But whereas we previously had 40 full-train loading points, we now have only 16. And in that case, road transport takes over…”

Beyond developing a relevant inland-waterway and rail network, the key obstacle remains land. “Logistics must be allowed to establish itself where it can and where it wants,” Paulo Ferreira recommends. “By making that choice, the network will be optimized and will therefore reduce the environmental impact of freight flows. But today, the vacancy rate for prime warehouses is just 3 %… which is to say we are already facing a shortage.” Enough to slow France’s green reindustrialization. Will the Green Industry Act be able to close the gap between pro-industry announcements and reality ?