KAUNAS REGION
Where Logistics comes together
Welcome to Kaunas Region, Lithuania!
KAUNAS REGION
Where Logistics comes together
LITHUANIA stats
Lithuania is at the center of three of large consumer
markets:
• Western Europe
• Baltic Sea Region
• Russia and former Soviet States (CIS)
Size
65,300 km2
Population
2.97 million
Capital
Vilnius
Official language
Lithuanian
Currency
Lithuanian Litas (LTL)
Pegged to Euro since 2002
1 Euro = 3.45 LTL
Real GDP growth
2013: 3.2%
2012: 3.7%
2011: 6.0%
FDI growth
8.1 %
Annual inflation
1.2%
KAUNAS REGION stats
Kaunas Region
Source: Statistics Lithuania, VRM , Invest Lithuania 2014
Regional capital
Kaunas City
Population
593,000
Labour pool
289,000
Unemployment
31,300 (10.1%)
FDI growth
11.4%
Lithuania, a gateway to the EU and CIS
•
•
•
KAUNAS REGION
Where Logistics comes together
Lithuania allows access to main
markets*:
–
Member of the European Union
–
Member of the Schengen Agreement
(free trade and travel)
–
Member of NATO
–
Member of the Nordic Investment
Bank, and part of Nordic-Baltic
cooperation of Northern European
countries
Lithuania is ranked 17th of the
world on the Ease of Doing
Business Index (higher than e.g.
Germany, Latvia or Poland) *
Lithuania is a low risk country in
the Central and Eastern Europe
region, making it an excellent
alternative for nearby high risk
countries as Russia or Belarus
European Union is
the largest single
market in the world
(almost double the
GDP of China) with
over 500 million
consumers
(source: IMF)
Risk rating of Lithuania compared to other countries
(100= most risky)
100
80
60
40
20
0
Lithuania
Poland
Hungary
Russia
Belarus
Source: * World Bank, Invest Lithuania 2014
Source: Economist Intelligence Unit Q2 2014
KAUNAS REGION
Logistics sector Lithuania
•
•
•
•
Where Logistics comes together
With approximately 80% of freight which is transported through international transport corridors
passing through Lithuania, the country has become one of the most important transport centres in the
European Union, linking the EU with the East (Source: Datamonitor)
The North-South highway, the railway route connecting Scandinavia with Central Europe, and the EastWest route that connects vast Eastern markets with the rest of Europe, all figure among the 10
principal freight routes in Europe. The expansive network of central motorways and European
railroads, along with the ice-free port of Klaipėda and 4 international airports comprise the key
infrastructure of the Lithuanian transport network
The largest warehouse in Lithuania is situated in Kaunas. “Senukai Logistics Park” and measures 70,000
m2
The greatest supply of modern warehousing facilities in 2010 remained in Vilnius (334.400 m2), with
Kaunas following in the 2nd place (184.300 m2). Kaunas is a dynamic, upcoming location
Major logistics FDI in Lithuania
AutoLogic
Group
Rhenus
Logistics
Schenker
Maersk Line
Msc
DHL
DPD
Gefco
UPS
DSV
TNT
Source: Invest Lithuania 2013, Colliers 2013
Two of Lithuania’s five largest logistics
centers are in Kaunas
Largest Logistics Centres
Area, m2
City
Senukai Logistics Park
70,000
Kaunas
Laistai International Trade
Center
32,000
Klaipėda
Tromina
30,000
Vilnius
Kaunas Terminal
30,000
Kaunas
Source:
Business
ParkInvest
E67 Lithuania 2014
28,000
Panevėžys
The Kaunas Region provides an
unmatched mix of cost-effective talent
and high class infrastructure
Cost attractiveness
Location
• The right connection to:
• EU
• CIS
• Baltics
• Russia
Real Estate availability
• The right industrial parks
• The right cost advantages
KAUNAS REGION
Where Logistics come together
In
KAUNAS REGION
it all comes
together
• The right labor cost savings
• The right tax scheme
International accessibility
• The right location
• The right logistics
Location
•
•
•
KAUNAS REGION
Where Logistics comes together
The international competitiveness of Lithuania in the transport and logistics sector is to a
large extent determined by its geographical position
Many companies see Lithuania as a springboard from which to penetrate the vast markets of
the EU and the Russia-Kazakhstan-Belarus Customs Union and other CIS countries. The latter
is increasingly important now that Russia has joined the World Trade Organization*
Kaunas is connected to Poland (and rest of Europe), Belarus and Russia by rail and road
Kaunas connected to Poland (and
rest of Europe), Belarus and Russia
by rail and road*
* Source: Invest in Lithuania,, 2013
Baltics, Russia, CIS, CEE and Germany are reached within
two truck days*
KAUNAS REGION
Location
•
•
Where Logistics comes together
Some of the major logistics centres in Lithuania are in Kaunas Region
The Kaunas region has a highly developed railway infrastructure. Three railway lines cross the
region: Moscow-Minsk-Kaliningrad, Vilnius-Kaunas-Klaipeda and Kaunas- Siauliai-Riga. The
“Rail Baltica” or “Baltic” rail (standard European gauge) section between the Lithuanian-Polish
border and the Marijampole-Kaunas line is under development. It will connect Kaunas Region
to Warsaw and the Western EU markets.
Kaunas Region is conveniently
located on crossroads of modalities
Source: BCI,, 2014
The Kaunas Region interconnects the Nordics and
Western Europe with Russia and CIS
Source: Invest in Lithuania, 2013
KAUNAS REGION
Cost attractiveness
•
Where Logistics comes together
In general labour costs in Lithuania are less than half compared to Western European countries
and the USA
Truck operating costs in Lithuania are among the lowest in Europe and 20-25% lower than
Western Europe
Labour costs in Kaunas Region are approximately 10% lower than in Vilnius and 25-40% lower
than in Poland and Slovakia
Standard income tax rate is one of the lowest in Europe at 15%. If established in a Free Economic
Zone (FEZ), property and dividend tax is at 0% and income tax is at 0% for the first 6 years and
7.5% for the following 10 years
•
•
•
Source: Invest Lithuania 2013, PwC 2013
Annual full employers cost warehouse employee
Tax rates
Tax
16,000
14,000
General
Free Economic Zone
0 % (first 6 years)
50% of the tax rate
(subsequent 10 years)
Income tax
15 %
Property tax
1%
0%
Dividend tax
15 %
0%
12,000
10,000
8,000
6,000
4,000
2,000
Kosice - Sk Katowice - Tallinn - Gdansk - PlGyor - Hun Vilnius Pl
Est
Lith
1
Kaunas Lith
Employer cost are based on the following expenses: gross salary, social security, medical and pension costs in
addition to social security and performance bonuses
Source: National/Regional Statistical Offices, IMD, UBS, 2014
Source: Invest Lithuania, FEZ Kaunas, FEZ Kėdainiai 2014
International accessibility
•
•
•
•
KAUNAS REGION
Where Logistics comes together
Kaunas Region is situated at the geographical centre of Lithuania and is further developing
and strengthening its transport infrastructure
Kaunas Region is well connected by road to Vilnius, Klaipeda, Riga and Poland
Kaunas airport, which is the second largest airport in Lithuania, serves 8 international
destinations (incl. London, Birmingham, Dublin, Oslo and Frankfurt) throughout the year on a
weekly basis
Vilnius International Airport is located within a one hour drive providing 2-3 flights per hour
and more daily direct flights to major European capitals and cities
Real Estate Availability
•
The two Free Economic Zones of Kaunas
Region are good locations for the setting
up of logistics facilities. The zones provide
favourable and lower taxes for investors
investing at least Euro 1 million
•
Kaunas Free Economic Zone (FEZ) offers a
total of 294 hectares for logistics and
manufacturing. Logistics companies are
already present. Direct foreign
investments in Kaunas FEZ account for
76% of all investments
•
The Kėdainiai FEZ offers 9 plots for
investors, with already installed water
supply, sewage, surface waste water,
pipeline and road infrastructure. The size
of the proposed plots varies from 6,26 to
20,86 ha. Targeted activities are industrial
and logistics/warehouwing
Source: Kėdainiai FEZ, FEZ Kaunas, 2014
KAUNAS REGION
Where Logistics comes together
The Kaunas FEZ provides 294 hectares of
logistics and production area
The Kėdainiai FEZ provides 9 ‘ plug-andplay’ plots
KAUNAS REGION
National incentives support program
•
•
•
Where Logistics comes together
Foreign investors interested in locating a business in Lithuania as well as foreign companies
already operating in the Lithuanian market but eager to further expand may apply for Invest in
Lithuania’s financial investment support of up to Euro 3.5 million per investment project
Invest in Lithuania provides financial support to cover personnel training costs (up to Euro 2
million) as well as eligible construction, infrastructure and salary costs (up to Euro 1.5 million),
incurred by foreign investors establishing a services business unit in Lithuania
The financial support tool is designed to support foreign businesses investing into the
production of export-oriented high-quality services as well as establishment of qualified jobs on
the market
Financial support available per FDI project in the
field of services
Construction, Infrastructure, Salary costs
Personnel training costs
Up to Euro 1.5 million
Up to Euro 2 million
Max. possible support
3.5 million Euro
Source: Invest Lithuania, 2014
Contact us
KAUNAS REGION
Where Logistics comes together
TBD
One stop shop
•
•
•
•
•
•
•
•
Information
Consultancy
Analysis
Search
Guidance
Networking
Assistance
Aftercare
Contact Information:
+370 ….
@
www