Southeast Europe attracts logistics investment despite infrastructure gaps

At the same time, congested roads, weak rail networks, border delays and shortages of skilled labour continue to constrain development, even as the number of planned infrastructure projects grows.

A GTAI market analysis examined plans to upgrade ports, railways, terminals and logistics centres across the region. It also emphasised that the countries covered do not constitute a single, uniform logistics market.

Instead, individual countries are developing distinct roles within a wider network of ports, manufacturing locations and transit corridors.

GTAI valued planned projects across the 10 countries at about €144.2 billion. However, the projects are at different stages of development, approval and financing, and the total should not be interpreted as funding that has already been committed or disbursed.

Italy accounted for the largest share, with projects valued at €76.6 billion, followed by Romania with €33.3 billion.

GTAI also identified smaller but locally significant project pipelines in Bulgaria, Hungary, Serbia, Croatia, Slovenia, North Macedonia, Bosnia and Herzegovina and Albania.

A network of specialised logistics locations

Southeast Europe is not developing around a single dominant logistics hub. Instead, it is becoming a network of locations with different functions.

Italy, Slovenia and Croatia form the core of the northern Adriatic gateway. Hungary serves as a major inland and intermodal connection point. Romania and Bulgaria link Central Europe with the Black Sea and Turkey.

Serbia, North Macedonia and Bosnia and Herzegovina are becoming more closely integrated into industrial supply chains as manufacturing and transit markets, while Albania is concentrating on the development of its ports.

This specialisation creates additional routing and sourcing options for shippers and logistics providers. It also makes planning more complex because infrastructure quality, border procedures, permitting times and digital standards vary considerably between countries.

Northern Adriatic strengthens links with Central Europe

The northern Adriatic is the most developed part of the area examined by GTAI. Italy, Slovenia and Croatia are investing in ports, rail capacity and inland connections to handle more cargo moving between maritime gateways and Central Europe.

GTAI identified planned Italian projects worth €76.6 billion. Italy is already an important intermodal market, particularly in the north, where rail and road links connect industrial areas with Central European destinations.

The analysis identified further potential in intermodal transport, lower-emission logistics, automation and digital systems.

Conditions differ significantly between northern and southern Italy. The north is more closely integrated with road and rail corridors serving Central Europe, while southern regions depend more heavily on road haulage and Mediterranean ports.

Complex permitting and regulatory procedures can delay infrastructure projects in both parts of the country.

Slovenia’s planned investments were valued at €3.2 billion, with rail and port expansion among the main priorities. The Port of Koper plays a disproportionately important regional role because of its relatively short connections with Austria, southern Germany, Hungary, Czechia and Slovakia.

GTAI also reported strong demand for highly automated logistics systems from Slovenia’s export-oriented industrial sector.

However, the country faces several constraints. Its motorway network is heavily congested, shortages of labour and specialist skills persist, and higher energy and toll costs are adding pressure. Lengthy construction procedures create further delays.

Croatia was associated with planned projects worth €5.8 billion. Investment is focused on rail routes and seaports, with support from EU funding. Further financing may also be available through the Three Seas Initiative.

GTAI said future EU trade agreements, including possible agreements with India or Mercosur countries, could generate additional cargo flows through Adriatic ports.

The extent of any increase will depend on rail performance and the availability of sufficient inland transport capacity.

Romania offers scale, but rail remains a constraint

Romania was the second-largest project market in GTAI’s analysis, with planned investment of €33.3 billion. Its position between Central Europe, the Black Sea, Moldova and Ukraine makes it increasingly important for transit, warehousing, cargo consolidation and distribution.

However, GTAI said road and rail improvements were advancing slowly. Underinvestment in rail infrastructure was limiting the effectiveness of intermodal terminals, leaving road haulage as the more reliable option on many routes.

Romania is also an important sourcing market for German freight forwarders seeking road transport capacity.

At the same time, GTAI identified fraud risks, including the use of so-called phantom carriers, in which criminals pose as legitimate transport operators. This is increasing demand for systems that verify company identities, insurance coverage and freight documentation.

The Romanian market also requires improved route planning, real-time tracking, digital administrative systems and modern logistics centres. Where public transport infrastructure remains limited, decentralised warehousing and cargo-handling facilities may be more attractive to companies.

Over the longer term, the reconstruction of Ukraine could further increase Romania’s importance as a transit, storage and distribution base for construction materials, machinery and industrial goods. That outlook will depend on the course of the war, the financing of reconstruction and the development of border infrastructure.

Bulgaria links the Danube, Black Sea and Turkey

GTAI valued Bulgaria’s planned investments at €7.6 billion. The country has a strong road haulage sector and remains an important transit market on routes towards Turkey.

Its potential extends beyond road freight. Access to the Danube and the Black Sea, together with its location between Romania, Greece and Turkey, creates opportunities for combined transport services.

Over time, more freight could move westwards along the Danube, supported by closer integration between ports, railways and road transport.

Progress is being limited by political instability and slow administrative and procurement procedures.

Although Bulgarian and Romanian shipping companies compete with one another, GTAI also identified potential for joint services and better co-ordinated links between the Danube and the Black Sea.

Hungary remains a major inland connector

Hungary benefits from its location between Western, Central and Southeast Europe. A developed road network, modern logistics parks and a strong manufacturing base make it an important centre for distribution, warehousing and cross-border freight. GTAI listed planned projects worth €7.5 billion.

New industrial investment is expected to generate additional freight volumes, bringing rail expansion back onto the policy agenda. The release of EU funding could help restart projects that had previously stalled.

Infrastructure is only one part of the market opportunity. Labour shortages and cost pressures are encouraging companies to invest in warehouse automation, digital control systems and more efficient cargo-handling processes.

This makes Hungary one of the region’s more developed markets for robotics, warehouse technology, transport management systems and yard management software.

Risks remain. Higher energy costs, exchange-rate volatility and disruption to international supply chains make transport pricing and long-term investment planning more difficult.

Serbia combines strategic location with border delays

Serbia was the largest Western Balkan investment market in GTAI’s review, with planned projects worth €6.7 billion. The country connects Central Europe with Bulgaria, North Macedonia, Greece and Turkey, giving it an important transit role.

New roads, upgraded railways and multimodal terminals are intended to strengthen this position. GTAI also described Serbia as one of the more advanced markets in the region for warehouse and intralogistics systems.

However, growth in export-oriented nearshoring investment is slowing, while Serbia is becoming more dependent on Chinese involvement in road and rail infrastructure.

The largest operational constraint is at the EU border. Customs controls, queues and entry procedures make journey times less predictable.

GTAI expects tighter EU border procedures to increase interest in multimodal transport, because freight can be consolidated and longer sections of a journey transferred to rail.

Even with new terminals, freight forwarders will continue to require additional time in schedules and alternative route options. New infrastructure may reduce delays, but it is unlikely to eliminate them.

North Macedonia has an important automotive role

North Macedonia had planned projects worth €1.5 billion in GTAI’s overview.

Although the investment total is relatively small, the country has an important logistics role because many export-oriented automotive suppliers serve customers in Germany and elsewhere in Europe.

This creates demand for reliable and time-sensitive transport. GTAI identified further potential for North Macedonia as a regional transit location, provided multimodal terminals are modernised and cross-border connections improve.

Warehouse systems and internal logistics remain relatively underdeveloped, while gaps in public-sector digitalisation can result in manual procedures and longer customs clearance times. These weaknesses also create opportunities for suppliers of digital customs systems, document-management tools and transport software.

Bosnia and Herzegovina sees rising demand for automation

GTAI identified planned investments worth €1.2 billion in Bosnia and Herzegovina. Major road and rail projects are advancing slowly, while logistics activity is concentrated in a limited number of regional centres.

Border and customs controls at the EU’s external frontier occupy transport capacity and make transit times more difficult to predict. Tighter entry procedures also create additional pressure for regional hauliers.

Despite these constraints, demand for automation is increasing. Companies are using warehouse systems, digital planning and standardised processes to address labour shortages and inefficient workflows.

The pattern is visible across several Southeast European markets: companies can often modernise processes inside a logistics facility more quickly than governments can improve roads, railways or border procedures.

Albania focuses investment on ports

Albania had the smallest planned project pipeline in GTAI’s overview, at €0.8 billion. Investment is concentrated on port infrastructure and modern logistics centres.

The main constraint is weak inland connectivity. Additional port-handling capacity can generate value only when freight can move efficiently into the interior and onwards to neighbouring countries.

Other risks include the strong role of state port operators, shortages of skilled labour and the absence of a widely established dual vocational education system.

For foreign suppliers, these conditions increase the importance of local partners and internal training programmes.

Road freight remains indispensable

Despite the planned investment in ports, railways and terminals, road freight continues to underpin the regional transport system. Many rail routes remain slow, have not been consistently modernised or are poorly connected with transhipment facilities.

Rail freight is also constrained by different technical standards, customs procedures and limited border capacity. Some ports still lack effective inland connections.

Intermodal growth is therefore likely to be concentrated initially on a small number of relatively well-developed corridors. A broad regional shift from road to rail is not expected in the near term.

Road transport is also becoming more difficult. Congested motorways, higher tolls, rising energy costs, driver shortages and lengthy waiting times are reducing margins and making delivery schedules less reliable.

Demand for digital logistics systems grows

GTAI’s analysis indicates that modernisation is not limited to physical infrastructure. Demand for digital logistics systems is rising in almost all of the countries covered.

Priority areas include transport and warehouse management systems, route planning, real-time tracking, digital freight documents, customs software and systems for managing terminals, yards and vehicle fleets.

In Romania, there is particular demand for systems that verify hauliers, insurance coverage and transport documentation.

In Italy, Slovenia, Croatia and Hungary, the focus is more heavily on automation, robotics and the integration of existing systems.

Across the Western Balkans, many organisations are still digitising basic processes.

This creates demand for document management, customs processing and shipment-visibility tools that can deliver relatively rapid operational improvements.

€144.2 billion represents potential, not certainty

The €144.2 billion project pipeline demonstrates the scale of the modernisation plans being considered across the region. It does not guarantee that projects will be delivered quickly or that every country will follow the same development path.

Italy and the northern Adriatic already have established logistics centres. Hungary remains a major inland platform. Romania and Bulgaria could strengthen connections between the Black Sea and Central Europe.

Serbia, North Macedonia and Bosnia and Herzegovina are becoming more important through their roles in industrial supply chains, while Albania is seeking to integrate its ports more closely with regional freight routes.

For freight forwarders, shippers and technology providers, the opportunity does not lie in adopting a uniform strategy for Southeast Europe. Success will depend on selecting the right corridors, locations and local partners.

Southeast Europe is not yet an integrated logistics hub. It is, however, developing into a network of specialised manufacturing, port and transhipment locations that are likely to play a growing role in freight flows between the Mediterranean, the Black Sea and Central Europe.