Freight Forwarding in Austria - The Bridging of East and West

The land-locked country of Austria has an importantabout half of Austria's foreign direct investment is in
position at the centre of Europe where it is athe countries of central and eastern Europe. The
significant hub between East and West. The freightfocus of development in the freight services sector
transport industry has evolved and developed inhas mirrored this trend.
response to this increasingly important role, with newAlthough the boom years have now passed, Austria
streamlined freight services available to facilitatestill has the potential to attract international firms
trade between Austria and its trading partners inseeking convenient access to developing markets in
Eastern Europe.eastern and central Europe and the Balkan countries.
Until the late 1980s, the government and its stateApproximately 350 United States companies have
owned industries played an important role in themade investments in Austria, most with this in mind,
Austrian economy but since the early 1990s. most ofand there is scope for considerable further expansion
these state owned firms have been privatised eitherof Austria's role as a bridge between east and west.
wholly or partially. Austria now has a well developedApart from within the European Union, there is
economy and is one of the richest countries in thesignificant trade with the United States and so there
European Union, fourth after Luxemburg, Ireland andare also many shipping companies serving this sector
the Netherlands.of the international freight market. The total value of
In fact, Vienna is the fifth richest region in Europe,trade with the United States is 13 billion dollars.
just behind Inner London, Luxemburg, Brussels andImports from the United States total over 5 billion
Hamburg. The sophistication and efficiency of theand exports to the United States were nearly 8 billion
shipping companies and freight companies operating inin 2007.
Austria reflect the high standards that would beAlthough there are some large iron and steel
expected of such a rich and well developed country.producers, chemical plants and oil corporations, most
The economy of Austria is heavily integrated withenterprises in Austria are relatively small.
neighbouring Germany and increasingly with theThe service sector is very important in Austria and
countries to its east. The freight transport industrygenerates the majority of its Gross Domestic
has established connections and networks to ensureProduct. This includes, for example, finance, consulting
that freight transport is effective within theseand law firms in Vienna which also operate in central
regions.and eastern Europe. Very well known Austrian firms
The economy in Austria has been growing well, withinclude AKG Acoustics, Wienerberger, Red Bull,
growth of around 1% per annum during 2001-2003Swarovski and Doppelmayer. The freight transport
but then accelerating to nearly 3% in 2004 andindustry has evolved to serve the needs of this
2005.This was fueled by booming exports anddiverse market, connecting producers with markets in
primarily higher growth in Central and Eastern Europe.the east and west.
Having joined the European Union in 1995, andAustria has a unique position as an East-West hub. It
adopted the Euro in 2002, the effects of Europeanalso has a unique position as a moderator between
integration on the economy of Austria have beenindustrialised and developing nations and has been
highly positive. Trade with other European Unionactive in bridge building to the east, increasing
countries accounts for nearly three quarters ofcontacts at all levels with Eastern Europe and the
Austrian imports and exports, dominating thestates of the former Soviet Union.
country's international freight.In this way the role of Austria as hub between East
Expanding trade and freight forwarding with the newand West is about more than simply its geographical
EU members of central and eastern Europe thatposition and its tradition of neutrality has allowed the
joined the EU in May 2004 and January 2007 makecountry to develop a role as broker and moderator
up a major element of Austrian economic activity andbetween the developed counties of the West and
account for 14% of all trade activity. In addition,the emerging economies of the East. The
Austrian firms have made sizeable investments incombination of these factors create perfect
these countries and there is a trend towards movingconditions for the growth of the freight services
labour intensive low tech production to theseindustry in Austria as the importance of its hub
countries of central and eastern Europe. In fact,position consolidates in future.