Mr. Patrick Daly:

We were asked to outline the projects we would like to see being developed. Despite the challenges, we have some great opportunities, one of which is in the development of logistics clusters. These are areas where logistics activities are incentivised and concentrated and they provide many advantages for a country, for industry and for employment. They tend to replace lost manufacturing jobs in developed economies. A number of years ago, for example, Dell left Limerick with the loss of a considerable number of manufacturing jobs. Such jobs can be replaced by logistics hubs, which provide value-added activities such as localisation, product assembly and configuration and potentially, 3D printing. They are less susceptible to off-shoring because a lot of the technology and economics of transport and distribution make them more immune. They also serve as infrastructure to other industries that require specific logistics capabilities. Ireland, for example, has a high concentration of medical devices and pharmaceutical companies. We could develop logistics hubs around those industries that could be based on either sea or air transport. In terms of sea transport, we are talking about the south of the country and I would not lose sight of Cork, which is a particular hub for medical devices, chemicals and pharmaceuticals. In terms of logistics hubs in the air freight industry, Shannon is probably the only airport that has a runway of the required length to service a fully loaded Boeing 7470-400. Such aircraft require a runway of between 9,000 and 11,000 feet. Shannon's runway is 10,500 feet whereas the runways at Dublin Airport are only 8,600 and 6,800 feet, although I understand the proposed new runway in Dublin will be 10,200 feet.

Logistics clusters do not depend on a single industry vertical. They serve multiple industries which makes them more immune to shocks in the economy. They favour social mobility because the logistics industry values deep operational experience on the floor. They create broad based employment because they need warehouse operatives, drivers, customer service personnel, mechanics, technicians, engineers, IT managers and supervisors. They also create a sustainable tax base that would at least defray or offset some of the cost of developing them in the first place. They can be a stimulus for regional development which makes for a more balanced spatial strategy.

Examples of logistics hubs include places like Rotterdam, Singapore and Panama. Plaza Zaragoza in Spain is of particular interest because some of the factors contributing to its success are, or can be, replicated here. They include favourable geography which we also have; supporting infrastructure which we can develop; and a supportive and efficient Government, in terms of creating a business friendly environment, on which we also score highly. We can build education, research and innovation into these logistics hubs. The National Institute for Transport and Logistics which sits in the DIT in Aungier Street is developing degree courses in supply chain logistics and is an example of the type of institution that could set up a branch in a logistics hub. Logistics clusters also give rise to quite a lot of collaboration and value-added services.