Freight Forwarding in Austria - Bridging East and West By Stephen Willis At Isnare.com Ezine Articles

The land-locked country of Austria has an important position at the centre of Europe where it is a significant hub between East and West. The freight transport industry has evolved and developed in response to this increasingly important role, with new streamlined freight services available to facilitate trade between Austria and its trading partners in Eastern Europe.

Until the late 1980s, the government and its state owned industries played an important role in the Austrian economy but since the early 1990s. most of these state owned firms have been privatised either wholly or partially. Austria now has a well developed economy and is one of the richest countries in the European Union, fourth after Luxemburg, Ireland and the Netherlands.

In fact, Vienna is the fifth richest region in Europe, just behind Inner London, Luxemburg, Brussels and Hamburg. The sophistication and efficiency of the shipping companies and freight companies operating in Austria reflect the high standards that would be expected of such a rich and well developed country.

The economy of Austria is heavily integrated with neighbouring Germany and increasingly with the countries to its east. The freight transport industry has established connections and networks to ensure that freight transport is effective within these regions.

The economy in Austria has been growing well, with growth of around 1% per annum during 2001-2003 but then accelerating to nearly 3% in 2004 and 2005.This was fuelled by booming exports and primarily higher growth in Central and Eastern Europe.

Having joined the European Union in 1995, and adopted the Euro in 2002, the effects of European integration on the economy of Austria have been highly positive. Trade with other European Union countries accounts for nearly three quarters of Austrian imports and exports, dominating the country's international freight.

Expanding trade and freight forwarding with the new EU members of central and eastern Europe that joined the EU in May 2004 and January 2007 make up a major element of Austrian economic activity and account for 14% of all trade activity. In addition, Austrian firms have made sizeable investments in these countries and there is a trend towards moving labour intensive low tech production to these countries of central and eastern Europe. In fact, about half of Austria's foreign direct investment is in the countries of central and eastern Europe. The focus of development in the freight services sector has mirrored this trend.

Although the boom years have now passed, Austria still has the potential to attract international firms seeking convenient access to developing markets in eastern and central Europe and the Balkan countries. Approximately 350 United States companies have made investments in Austria, most with this in mind, and there is scope for considerable further expansion of Austria's role as a bridge between east and west.

Apart from within the European Union, there is significant trade with the United States and so there are also many shipping companies serving this sector of the international freight market. The total value of trade with the United States is 13 billion dollars. Imports from the United States total over 5 billion and exports to the United States were nearly 8 billion in 2007.

Although there are some large iron and steel producers, chemical plants and oil corporations, most enterprises in Austria are relatively small.

The service sector is very important in Austria and generates the majority of its Gross Domestic Product. This includes, for example, finance, consulting and law firms in Vienna which also operate in central and eastern Europe. Very well known Austrian firms include AKG Acoustics, Wienerberger, Red Bull, Swarovski and Doppelmayer. The freight transport industry has evolved to serve the needs of this diverse market, connecting producers with markets in the east and west.

Austria has a unique position as an East-West hub. It also has a unique position as a moderator between industrialised and developing nations and has been active in bridge building to the east, increasing contacts at all levels with Eastern Europe and the states of the former Soviet Union.

In this way the role of Austria as hub between East and West is about more than simply its geographical position and its tradition of neutrality has allowed the country to develop a role as broker and moderator between the developed counties of the West and the emerging economies of the East. The combination of these factors create perfect conditions for the growth of the freight services industry in Austria as the importance of its hub position consolidates in future.

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