Invest in Spain Aragón

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Green Energy

Pontegadea joins forces with Repsol and invests 245 million in a wind farm in Aragon

The project comprises 89 wind turbines, with a capacity of 335 megawatts, all located in the Zaragoza province
The Delta wind project keeps up the investment euphoria in renewable energies in Aragon

The business of renewable energies in Aragon maintains its steady growth with Pontegadea Inversiones acquiring 49% of Repsol’s Delta Wind Park, which operates 89 wind turbines in the region.

Repsol has reached an agreement with one of the main private investment groups in the world – the fund that manages the personal fortune of Zara owner Amancio Ortega – to partner in the Delta wind project, made up of eight wind farms located in the province of Zaragoza. Its 89 wind turbines, all of them fully operational since last March, add up to 335 megawatts (MW) of installed power, .

Under the agreement, Pontegadea invests 245 million euros to take a 49% stake in Delta, which means valuing these assets at 500 million, that is, 5.6 million for each windmill. This operation is Pontgadea’s first foray in the renewable energy sector, following in the footsteps of other great fortunes and multinationals that have been seduced by the green energies of Aragon, such as Amazon.

The parks are located in the surroundings of the Zaragoza towns of Villar de los Navarros (in the county of Campo de Daroca), where 236 MW are located; and Fuentes de Ebro (Ribera Baja de Ebro), with almost 100 MW. 

These facilities began operating in tests a year ago. Construction involved the investment of 300 million euros, and works were completed in less than 12 months with tips of up to 600 workers involved. Delta will produce 992 gigawatt hours (GWh) of energy per year, equivalent to the average annual consumption of 300,000 homes, preventing the emission of one million tons of CO2 into the atmosphere per year.

Thanks to its favorable wind conditions and orographic features, Aragon has become one of the epicenters in the deployment of wind farms in Spain.

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Doing Business in Aragon Logistics

DHL Express invests 4.7 million euros in its Zaragoza facilities

The project includes the implementation of a new international transport center in Aragon
E-commerce in Aragon has grown by 60% in two years, and traditional businesses are recovering pre-pandemic activity levels
DHL Express will expand its presence in Zaragoza Logistics Platform (PLAZA) with a new 1,995-square-meter center for operations related to international transport. These new fully mechanized facilities, built on an area of 8,900 square meters and incorporating the latest technology, have already been in operation for a few weeks. The total investment for the expansion is 4,739,000 euros.

The objective of this investment is to respond to the registered growth of more than 50% both in the volume of import and export shipments in the Zaragoza facilities. “Industrial development is being strong and the companies we are providing services to are growing,” says Miguel Borrás, Managing Director of DHL Express Spain and Portugal.

Growth in B2B and B2C trade led the company to delopy five additional delivery routes between 2006 and 2021. Retail, fashion and engineering are the main sectors that concentrate shipments and deliveries in Zaragoza, followed by professional services, consumer goods and the automotive industry. Regarding the origin of shipments to the Zaragoza facilities, the “top” countries are China, Italy and Germany, while Mexico, France, the United Kingdom and Italy are the main destinations for the merchandise.

Due to this expansion, DHL’s workforce in Zaragoza has increased by 15%, mainly to carry out work related to routes and customs, among others. In fact, chances are DHL will be able to incorporate more professionals according to the growth and development macroeconomic trends for this year.

In Zaragoza, DHL Express has also committed to sustainability acquiring 12 small electric aircraft  and it is expected that, by 2025, the company will have replaced all its fleet to be electric, with the exception of long-haul vehicles.

Future growth and expansion

By maintaining the existing facilities focused on domestic transport operations, DHL Express expects to continue growing because e-commerce in the area of Zaragoza and Aragon has grown by 60% in two years, even during the pandemic, and traditional businesses are recovering, reaching pre-pandemic activity levels.

DHL’s growth forecasts within Aragon are currently focused on Zaragoza and Teruel, although the company does not rule out opening another facility in the third Aragonese province, Huesca, in the longer term. The company has a market share of around 53%, although “in Zaragoza, it may be higher and above the Spanish average.”

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Logistics

Inditex invests 80 million in the expansion of its facilities in Plaza

The apparel giant will expand its main logistics center, located in Aragon, starting in 2022
Zaragoza Logistics Platform, Plaza, proves to be an attractive location for investment

Inditex will expand, from 2022, its facilities in the Zaragoza Logistics Platform, Plaza, with an investment of 80 million euros and will create 250 new direct jobs. These facilities are expected to be functioning by 2023. The project includes the acquisition of new plots with a total surface of more than 63,500 square meters located in Plaza, close to the existing 180,000-square-meter facilities, which will allow them to connect all the centers it has in the logistics area.

“The purpose is to be able to provide the ‘Zara’ fashion chain with the logistics necessary for the export of its products, thus consolidating Plataforma Europa in Zaragoza as one of the logistics points of reference in the Inditex Group at an international level”, they have pointed out.

Established in 2003, Plataforma Europa has been one of the main logistics centers of Inditex and, therefore, an object of constant investment, with important expansions in 2010 and 2021. In addition, the Inditex group has highlighted that the presence of these facilities in PLAZA “has not only been a showcase for the city as a logistics hub, but has also represented a notable attraction of investment by third parties willing to develop auxiliar services for this center and for other companies in the Community, which thus benefit from the driving effect of this activity”. In 2020, it has reported a turnover of 120 million euros, a workforce of almost 1,800 people and positive results of 4.2 million euros.

On average, 1,750 indefinite jobs were created, and around 2,000 people were hired at peak times, with quality pay and social conditions. Due to this expansion, more job placements, ranging from specialist operators to production supervisors, logistics technicians, customs, administration or systems, among others, have been offered. Likewise, it is estimated that the indirect job creation factor will remain above two jobs for each direct job generated, which translates into about 750 new jobs in Aragon, between direct and indirect, associated with the expansion project.

This major investment made in PLAZA has been generating from its inception a remarkable driving effect in the economic and social environment, both in the area of activity of associated infrastructures – Zaragoza airport – as well as auxiliary companies – transport, maintenance, textile re-operations. In fact, the Zaragoza airport has become, since 2019, AENA’s second largest cargo airport, with 182,659 tons of transported materials, 90 percent of which are shipped by Inditex.

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Logistics

Amazon continues to invest in Aragón with a new logistics center and a logistics station in Zaragoza

Amazon today reinforced its commitment to Aragon with the announcement of its first Operations facilities in the region, a logistics center and a logistics station. The company is making progress in its investment in the Community with two new centers that will be located in the city of Zaragoza -in the Plaza industrial estate-, to serve Amazon customers and support Spanish and European demand.

The logistics center, of more than 52,000m2 and expected to start operating in 2022, will be used by Amazon to store and manage small and large products. These products will then be processed and shipped to other fulfillment centers, supporting Amazon’s operations throughout Europe.

“We are delighted to continue investing in Aragon with a new logistics center in Zaragoza, which will play a key role for our operations in Spain and, ultimately, in Europe. Furthermore, sustainability has been a fundamental pillar for the construction of this center, ensuring a low carbon footprint ”, said Fred Pattje, Director of Amazon Customer Fulfillment in France, Italy and Spain. The president of Aragon, Javier Lambán, pointed out that “the arrival of Amazon to PLAZA is a before and after for Aragon, being the greatest support for the take-off of Aragón Logistics Platform, which currently has more than 20,000 employees in more than 500 companies, to which the direct and indirect jobs will be added after the landing of Amazon ”. Lambán added, “the Amazon logistics center is the confirmation of the great logistics commitment in Aragon and the beginning of a long journey of excellent collaboration with a strategic company that will bring positive consequences, such as more employment and innovation.” Amazon has also announced a new logistics station of more than 6,600m2 that is expected to start operating this year. This last-mile hub will be located near the new logistics center, and will help speed deliveries to customers in the Aragon region. Fulfillment stations power the last mile of Amazon’s ordering process and help improve the delivery experience for customers. Packages are shipped to a fulfillment station from nearby Amazon fulfillment and distribution centers, loaded onto delivery vehicles, and delivered to customers.

Source: www.aragonhoy.es, www.amazon-prensa.es

Categories
Logistics

ZLC’s Master in Logistics named #1 Global SCM Program

The Supply Chain Management master’s programs offered through the MIT Global Supply Chain and Logistics (SCALE) Network have been ranked #1 Supply Chain Management graduate programs in the world for the fifth consecutive year by Paris-based EdUniversal. The organization evaluates thousands of specialty master’s and MBA programs each year on criteria including overall program reputation, career and salary outcomes of recent graduates, international reach, and feedback from students and alumni.

MIT’s Center for Transportation and Logistics formed the SCALE Network in 2003 with the founding of the Zaragoza Logistics Center (ZLC) in Zaragoza, Spain, and has since expanded the network to include six education and research centers on four continents. The #1-ranked SCM master’s programs offered at SCALE centers in China, Luxembourg, and Malaysia, as well as Spain, are closely modeled on the program taught at MIT CTL, which has been educating supply chain professionals since 1998. Other SCALE Network educational offerings include a low-residency Graduate Certificate program for students pursuing master’s degrees in related fields at top universities in Latin America, as well as executive education courses, part-time master’s programs, and PhD programs.

 

More information at zlc.edu.es

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Logistics

Green light for rolling highway between Zaragoza and Algeciras

The Spanish Minister for Transport and Mobility, José Luis Ábalos, and the president of state-owned railway infrastructure manager ADIF, Isabel Pardo de Vera, today announced large investments to adapt the Zaragoza-Algeciras railway line as a rolling highway for piggyback transportation. The project is the result of a joint initiative of the Autonomous Regions of Aragon and Andalusia, following an agreement signed in 2017.

The new railway connection will be a gateway to African markets for companies from the South of Europe, and vice versa. Morocco already is one of Aragon’s most important trade partners.

It will also consolidate Aragon’s position as the main hinterland port in Spain, as the region will be connected by train to all main ports of the Iberian peninsula.

Piggybacking of semi-trailers by rail offers important economic and environmental benefits. Ferroutage services are already working on several European transit routes.

The 100-million-euro investment announced today will allow to increase the loading gauge height of the railway line to AF 4.2 standard, which is crucial for the accommodation of double stack convoys.

Further information

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Logistics Sin categoría

Monzón Intermodal Terminal (TIM) handled 8% more containers in 2020

10 years after its inauguration, the Monzón Intermodal Terminal (TIM), which belongs to aragonese SAMCA group with a participation of Logirail, keeps growing steadily despite the pandemic. In 2020, TIM handled 67.705 containers, an 8.3% increase compared with 2019. 55% of handled containers were for export, many of them being reefers to transport fresh products like pork meat. The terminal’s new agrifood bulk division handled 34.730 tons of cereal in its first full year of service. 1,096 trains were dispatched in the terminal in 2020, with substantial environmental benefits as this number equals 20.000 truck loads or 3,750 tons of CO2. See full article in Spanish
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Sin categoría

Study shows Aragón’s potential as a logistics hub for pharmaceutics

The current Covid crisis has revealed the criticality of location for the global pharmaceutical industry. Aragon reveals to be an attractive option for pharma distribution thanks to its connectivity, competitive costs and other factors.

Spain is the world´s 10th Scientific power and Europe´s 5th. Its integrated Healthcare System consists of a network of 800 health centers, both public and private.

Aragón is at the heart of the country’s pharma industry: 89% of Spain´s Pharma & Biotech Industry is concentrated within 300 km of the region.

Zaragoza Logistics Center (MIT Global Scale Network) has created an ‘Aragon Pharmaceutical Cluster Map’. This reveals the region to have a strong offer across the board, from levels of government and regulatory support, through university and research centre activity, to relevant ‘clusters’ of companies in the chemical, biotech, packaging and other sectors.

The region scores expecially high in the six key indicators for distribution location decisions, benchmarking against other regions in Europe with a strong presence of pharma companies like Liege in Belgium and Basel in Switzerland.

 

  • Infrastructure
    The Zaragoza Logistics Platform (PLAZA), at over 13 M square metres, is the largest in Southern Europe and ranked fifth (out of ninety) in a recent study. Land purchase prices are just one fifth of those in Basel, and prices in Liege are more competitive, supply is quite limited. (Aragon has high occupation rates, but further land close to existing logistics parks is readily available). Rental costs are below those of Belgium, and significantly below Switzerland.
  • Workforce
    With an unemployment rate high by European standards (although below that of Spain as a whole), workforce availability is good, while employment costs for both higher and lower grades also reflect a lower cost of living – for higher grade positions, salaries are two to three times lower than in Switzerland. On the other side of the coin, the region is a recognised centre for higher level logistics education and study through the doctorate, masters, graduate and executive education programmes of ZLC, University of Zaragoza and others, as well as research collaboration between pharmaceutical companies and the Instituto de Investigacion Sanitaria, and with ZLC on hospital logistics.
  • Technology and regulation
    Digital technologies are a core of Aragon’s strategic agenda, through the regional government, the transport industry’s federation, and with the universities and other research institutes and companies. Regulatory authorities are supportive, and among the many international freight and distribution companies with a substantial presence in Aragon are several that already hold appropriate training and certification for pharmaceutical activity.
  • Transport and logistics capabilities
    Aragon has well developed and modally balanced transport links with the rest of Iberia and, through France, to North West Europe and beyond.
    Zaragoza Airport is a significant hub, hosting some 15 air freight lines. Most of these offer a pharma solution, and the airport has extensive cold chain warehousing and infrastructure.
  • Transport and logistics costs, ease of global shipment
    Air freight rates in and out of Zaragoza are competitive with those to Belgium and Switzerland, and inland transport can be significantly cheaper, whether by road, rail, or bi-modal. For ‘air freight plus last mile’ from New York, Zaragoza’s advantage over other European locations is pronounced.
    Customs and related procedures are efficient.
  • Taxes
    Fees for Customs documentation are generally below those of the comparator locations, and VAT deferral is possible on imports.

Taking all these indicators into account, along with the existing pharmaceutical research nucleus, the existence of industry-relevant clusters of supporting suppliers and service providers, and the regional government’s commitment to technology-led development, ZLC concludes that Aragon makes a strong case as a location for a pharmaceutical company’s gateway into Europe.

Contact us for more information on Aragon’s offer for pharma investments.

Categories
Green Energy

In 2020, Aragón covered all its local energy consumption with renewables

Aragón's production of renewable energy exceeded local energy consumption by 22% in 2020, following a boom in green investments likely to continue in 2021.

Substantial investments have been made in the last years by both national and international groups, especially in the provinces of Zaragoza and Teruel. Proof of this are the almost 1,000 megawatts (MW) of wind and photovoltaic parks put into service last year, according to provisional data provided by Red Eléctrica de España (REE). In 2019, Aragón connected a total of 1.931 MW to the grid.

The largest source of energy in the region is the wind, accounting for 44.6% of total production, or 4,075 MW, in 2020. 14.6% and 12.2% of production came from hydraulic and photovoltaic plants, respectively.

Having doubled its capacity in only two years, Aragón is now the second Spanish region in terms of wind energy production, up from the fifth place it occupied in the same ranking only a year earlier.

Regional administration has played a key role in the recent investment boom, speeding up the approval process for new projects.  The tailwind for renewable energy in Aragón will persist in the near future: More than 400 new projects, totalling 12,500 MW, have been requested already for 2021.

Categories
Aerospace

Teruel, the airport with most aircraft grounded in Europe

Teruel airport, dedicated exclusively to MRO and other industrial activities, has been reuniting the biggest number of grounded planes in Europe for the last months. More than 130 airplanes, from the smaller Boeing 737 to a dozen  impressive A-380, are sitting in the Teruel plains like a group of big white birds patiently waiting for their journey to continue.

The company behind this success story is Tarmac Aragón, an Airbus subsidiary that has been operating here since 2012. Tarmac provides storage, maintenance and recycling services for aircraft, a business that requires high precision, fast logistics – a grounded airplane is a costly issue for its owner – and sustainability. In the long files of planes parked at LETL airport, you can see the logos of some of the world’s biggest airlines, who trust in Tarmac to maintain their airplanes in perfect conditions. Some of the aircraft will be recycled by Tarmac, dismantling the machines piece by piece as most parts can be reused.

The dry climate of the Teruel region, with ist altitude of more than 1.000 meters above sea level, is perfect for the storage of aircraft. The strategic decision of the Government of Aragon to install an industrial airport here has brought, through Tarmac and other companies based at the airport, over 400 new jobs to the area.