
WINHUB: The Future of Ukraine's Logistics Infrastructure
02.07.2024
The demand for high-level logistics infrastructure is growing in Ukraine. TERWIN Corporation, with its long and successful experience in organizing logistics processes through EVA and VARUS companies, is launching the $700 million WINHUB investment project to build Class A warehouses in four regions of the country. This represents the highest standard of warehouse storage, covering over 1 million square meters in the Lviv, Dnipropetrovsk, Odesa, and Kyiv regions. Our plans go beyond just building warehouses; we aim to develop comprehensive infrastructure for business. The hub is designed based on principles of energy efficiency, environmental friendliness, and ergonomics. Energy efficiency means the most rational use of resources and energy-saving technologies. Environmental friendliness involves the use of alternative energy sources and wastewater management, a complete waste, packaging, and container management cycle. Ergonomics ensures the most efficient use of all hub spaces.
It might seem that such large-scale investments during wartime carry significant risks. However, the decision is well-considered and calculated because there is demand for such logistics infrastructure in Ukraine. For comparison, there are currently only 1.5 million square meters of appropriate class warehouse space in our country, while neighboring Poland has 30 million square meters.
What exactly is so appealing about the innovative logistics infrastructure that developers promise? An obvious advantage for businesses is the reduction of operational costs by increasing the efficiency of warehouse space use, thus speeding up delivery. We promise to implement advanced global logistics practices at our facilities and train high-class personnel from the student bench. To achieve this, we will open an R&D center and establish partnerships with specialized universities in Ukraine and worldwide.
The new warehouse facilities will be designed to meet the widest range of customer needs. WINHUB will handle export and import operations based on the hub’s customs-licensed warehouses and related customs services. It will combine road and rail transport in one place, enabling intermodality that allows handling various types of cargo and operating large batches of goods. In the end, we will provide different types of warehouses at all locations to meet the needs of potential tenants.
The Ministry of Economy of Ukraine has included WINHUB in the list of the most promising investment projects presented at the Ukraine Recovery Conference in Berlin in June. Meanwhile, we are already negotiating with Western investors who are considering joining the project.
Safety comes first. Even at the design stage of the logistics hub, we are planning fully equipped shelters for 100% of the personnel. Moreover, the project is expected to create up to 25,000 jobs! Additionally, for projects of this scale, the multiplier effect must be considered: one job directly in the logistics hub will create two to three new jobs in related businesses. These include hostels, supermarkets, truck service stations, kindergartens, gyms, food courts, waste reception and processing enterprises, and even car and electric vehicle sharing services.
It is clear that such business activity will flourish in the communities where WINHUB is present. They will have more financial resources and ideas for developing social infrastructure, not to mention the direct improvement of local workers' well-being and professional skills.
Therefore, the WINHUB project has emerged at the intersection of corporate business needs and the Ukrainian market as a whole. This combination gives hope that investors will be found and the four regions will receive modern logistics infrastructure. Along with it, local business activity and the social sphere will be revitalized. Furthermore, the project's implementation will give an impulse to the entire economy. WINHUB will increase the amount of Class A warehouse space in Ukraine by over 75%, making it more likely for large foreign suppliers and retailers accustomed to European service to enter our market. Ukraine will become more prominent on the global logistics map.