France - Transport and Logistics: Government initiatives driving growth (Strategy, Performance and Risk Analysis)
France boasts an extensive transportation network. Roadways registered a CAGR of 0.7%, rising from 1,053,939.0km in 2012 to 1,092,844.3km in 2017. The country is a major international transportation hub with Charles De Gaulle airport in Paris among the busiest in Europe. The presence of extensive transportation infrastructure is a major strength as it facilitates the development of new transportation and logistics facilities. In October 2016, FedEx Express announced plans to expand its distribution hub at Charles De Gaulle airport with a capital investment of US$221.2m (EUR200m).
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Increasing passenger volumes to catalyze GVA growth over forecast period
Rail transport GVA registered a CAGR of -0.8%, falling from US$14.0bn in 2012 to US$13.5bn in 2017 due to a decline in freight traffic. However, GVA is anticipated to post a CAGR of 2.7%, from US$13.8bn in 2018 to US$15.4bn in 2022 as the volume of rail passengers rises over the forecast period due to the development of a high-speed rail link between Paris, Bordeaux, and Rennes.
Capacity reductions to lead to a decline in air freight
Air freight traffic recorded a CAGR of -2.9%, falling from 4.6 billion ton kms in 2012 to 4.0 billion ton kms in 2017, and is anticipated to post a CAGR of -2.0%, from 3.9 billion ton kms in 2018 to 3.6 billion ton kms in 2022. The major reason for the decline is anticipated to be the removal of freighter aircraft from active service by Air France in an attempt to reduce operating losses.
Warehousing and storage GVA to increase over the forecast period
Warehousing and storage GVA registered a CAGR of -1.5%, from US$40.5bn in 2012 to US$37.5bn in 2017. However, as a result of investment in the construction and modernization of warehouses by major freight forwarders such as Bollore SA, and ecommerce retailers such as Amazon, due to the increased scope of services provided by modern warehouses, GVA is anticipated to post a CAGR of 1.8%, from US$38.1bn in 2018 to US$40.9bn in 2022.
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