1. Where Logistics comes together
KAUNAS REGION
Where Logistics comes together

2. Welcome to Kaunas Region, Lithuania!
Where Logistics comes together
Lithuania is at the center of three of large consumer markets:
Western Europe
Baltic Sea Region
Russia and former Soviet States (CIS)
LITHUANIA stats
Size
65,300 km2
Population
2.97 million
Capital
Vilnius
Official language
Lithuanian
Currency
Lithuanian Litas (LTL)
Pegged to Euro since 2002
1 Euro = 3.45 LTL
Real GDP growth
2013: 3.2%
2012: 3.7%
2011: 6.0%
FDI growth
8.1 %
Annual inflation
1.2%
KAUNAS REGION stats
Regional capital
Kaunas City
Population
593,000
Labour pool
289,000
Unemployment
31,300 (10.1%)
FDI growth
11.4%
Kaunas Region
Source: Statistics Lithuania, VRM , Invest Lithuania 2014
Buck Consultants International

3. Lithuania, a gateway to the EU and CIS
KAUNAS REGION
Lithuania, a gateway to the EU and CIS
Where Logistics comes together
Lithuania allows access to main markets*:
Member of the European Union
Member of the Schengen Agreement (free trade and travel)
Member of NATO
Member of the Nordic Investment Bank, and part of Nordic-Baltic cooperation of Northern European countries
Lithuania is ranked 17th of the world on the Ease of Doing Business Index (higher than e.g. Germany, Latvia or Poland) *
Lithuania is a low risk country in the Central and Eastern Europe region, making it an excellent alternative for nearby high risk countries as Russia or Belarus
European Union is the largest single market in the world (almost double the GDP of China) with over 500 million consumers
(source: IMF)
Risk rating of Lithuania compared to other countries
(100= most risky)
Source: * World Bank, Invest Lithuania 2014
Buck Consultants International
Source: Economist Intelligence Unit Q2 2014

4. Logistics sector Lithuania
KAUNAS REGION
Logistics sector Lithuania
Where Logistics comes together
With approximately 80% of freight which is transported through international transport corridors passing through Lithuania, the country has become one of the most important transport centres in the European Union, linking the EU with the East (Source: Datamonitor)
The North-South highway, the railway route connecting Scandinavia with Central Europe, and the East-West route that connects vast Eastern markets with the rest of Europe, all figure among the 10 principal freight routes in Europe. The expansive network of central motorways and European railroads, along with the ice-free port of Klaipėda and 4 international airports comprise the key infrastructure of the Lithuanian transport network
The largest warehouse in Lithuania is situated in Kaunas. “Senukai Logistics Park” and measures 70,000 m2
The greatest supply of modern warehousing facilities in 2010 remained in Vilnius ( m2), with Kaunas following in the 2nd place ( m2). Kaunas is a dynamic, upcoming location
Two of Lithuania’s five largest logistics centers are in Kaunas
Major logistics FDI in Lithuania
Largest Logistics Centres
Area, m2
City
Senukai Logistics Park
70,000
Kaunas
Laistai International Trade Center
32,000
Klaipėda
Tromina
30,000
Vilnius
Kaunas Terminal
Business Park E67
28,000
Panevėžys
AutoLogic Group
Rhenus Logistics
Schenker
Maersk Line
Msc
DHL
DPD
Gefco
UPS
DSV
TNT
Source: Invest Lithuania 2014
Source: Invest Lithuania 2013, Colliers 2013
Buck Consultants International

5. Real Estate availability International accessibility
The Kaunas Region provides an unmatched mix of cost-effective talent and high class infrastructure
KAUNAS REGION
Where Logistics come together
Location
Cost attractiveness
The right connection to: EU
CIS
Baltics
Russia In
KAUNAS REGION
it all comes together
The right labor cost savings
The right tax scheme
Real Estate availability
International accessibility
The right industrial parks
The right cost advantages
The right location
The right logistics

6. Location
KAUNAS REGION
Where Logistics comes together
The international competitiveness of Lithuania in the transport and logistics sector is to a large extent determined by its geographical position
Many companies see Lithuania as a springboard from which to penetrate the vast markets of the EU and the Russia-Kazakhstan-Belarus Customs Union and other CIS countries. The latter is increasingly important now that Russia has joined the World Trade Organization*
Kaunas is connected to Poland (and rest of Europe), Belarus and Russia by rail and road
Kaunas connected to Poland (and rest of Europe), Belarus and Russia by rail and road*
Baltics, Russia, CIS, CEE and Germany are reached within two truck days*
Buck Consultants International
* Source: Invest in Lithuania,, 2013

7. Location
KAUNAS REGION
Where Logistics comes together
Some of the major logistics centres in Lithuania are in Kaunas Region
The Kaunas region has a highly developed railway infrastructure. Three railway lines cross the region: Moscow-Minsk-Kaliningrad, Vilnius-Kaunas-Klaipeda and Kaunas- Siauliai-Riga. The “Rail Baltica” or “Baltic” rail (standard European gauge) section between the Lithuanian-Polish border and the Marijampole-Kaunas line is under development. It will connect Kaunas Region to Warsaw and the Western EU markets.
Kaunas Region is conveniently located on crossroads of modalities
The Kaunas Region interconnects the Nordics and Western Europe with Russia and CIS
Buck Consultants International
Source: BCI,, 2014
Source: Invest in Lithuania, 2013

8. 50% of the tax rate (subsequent 10 years)
Cost attractiveness
KAUNAS REGION
Where Logistics comes together
In general labour costs in Lithuania are less than half compared to Western European countries and the USA
Truck operating costs in Lithuania are among the lowest in Europe and % lower than Western Europe
Labour costs in Kaunas Region are approximately 10% lower than in Vilnius and 25-40% lower than in Poland and Slovakia
Standard income tax rate is one of the lowest in Europe at 15%. If established in a Free Economic Zone (FEZ), property and dividend tax is at 0% and income tax is at 0% for the first 6 years and 7.5% for the following 10 years
Source: Invest Lithuania 2013, PwC 2013
Annual full employers cost warehouse employee
Tax rates
Tax
General
Free Economic Zone
Income tax
15 %
0 % (first 6 years)
50% of the tax rate (subsequent 10 years)
Property tax
1 %
0 %
Dividend tax
Source: Invest Lithuania, FEZ Kaunas, FEZ Kėdainiai 2014
1 Employer cost are based on the following expenses: gross salary, social security, medical and pension costs in addition to social security and performance bonuses
Source: National/Regional Statistical Offices, IMD, UBS, 2014
Buck Consultants International

9. International accessibility
KAUNAS REGION
Where Logistics comes together
Kaunas Region is situated at the geographical centre of Lithuania and is further developing and strengthening its transport infrastructure
Kaunas Region is well connected by road to Vilnius, Klaipeda, Riga and Poland
Kaunas airport, which is the second largest airport in Lithuania, serves 8 international destinations (incl. London, Birmingham, Dublin, Oslo and Frankfurt) throughout the year on a weekly basis
Vilnius International Airport is located within a one hour drive providing 2-3 flights per hour and more daily direct flights to major European capitals and cities
Buck Consultants International

10. Real Estate Availability
KAUNAS REGION
Where Logistics comes together
The two Free Economic Zones of Kaunas Region are good locations for the setting up of logistics facilities. The zones provide favourable and lower taxes for investors investing at least Euro 1 million
Kaunas Free Economic Zone (FEZ) offers a total of 294 hectares for logistics and manufacturing. Logistics companies are already present. Direct foreign investments in Kaunas FEZ account for 76% of all investments
The Kėdainiai FEZ offers 9 plots for investors, with already installed water supply, sewage, surface waste water, pipeline and road infrastructure. The size of the proposed plots varies from 6,26 to 20,86 ha. Targeted activities are industrial and logistics/warehouwing
The Kaunas FEZ provides 294 hectares of logistics and production area
The Kėdainiai FEZ provides 9 ‘ plug-and-play’ plots
Buck Consultants International
Source: Kėdainiai FEZ, FEZ Kaunas, 2014

11. National incentives support program
KAUNAS REGION
National incentives support program
Where Logistics comes together
Foreign investors interested in locating a business in Lithuania as well as foreign companies already operating in the Lithuanian market but eager to further expand may apply for Invest in Lithuania’s financial investment support of up to Euro 3.5 million per investment project
Invest in Lithuania provides financial support to cover personnel training costs (up to Euro 2 million) as well as eligible construction, infrastructure and salary costs (up to Euro 1.5 million), incurred by foreign investors establishing a services business unit in Lithuania
The financial support tool is designed to support foreign businesses investing into the production of export-oriented high-quality services as well as establishment of qualified jobs on the market
Financial support available per FDI project in the field of services
Construction, Infrastructure, Salary costs
Personnel training costs
Up to Euro 1.5 million
Up to Euro 2 million
Max. possible support
3.5 million Euro
Source: Invest Lithuania, 2014
Buck Consultants International

12. Contact us TBD One stop shop
KAUNAS REGION
Contact us
Where Logistics comes together
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