Horgos to get agricultural logistics-distribution center on 22 ha - The Kanjiza Municipality in search for partner for implementation of project totaling USD 3,8 mil

Agricultural production in the north of our country has a long tradition. In order to have bright future as well, the Kanjiza municipality is planning to build a logistics-distribution center on 22 ha on the territory of the Industrial park Horgos. A total of USD 1,3 mil has been invested in land and infrastructure while it is essential to set aside additional USD 2, 5 mil for the project implementation which can be provided through public-private-partnership.

Kornelia Fejstamer, the Senior Investment and Economic Development Expert, says for eKapija that the logistics center would definitely be a safe and sustainable purchasing place i.e. market for agricultural producers.

- The logistics center is necessary so that producers could maintain appropriate and stable quality of primary agricultural products and to deliver them to this kind of a logistics center where these products would be sorted, washed, packed and sold. In order to implement this, it is necessary to build appropriate facilities, i.e. cold storage and potentially, set up of a smaller processing section. The investment with these features helps joining of producers and contributes to creation of a new, modern, cooperative – a agricultural producers’ cluster - Fejstamer explains.

It is very important to point out, our collocutor added, that Kanjiza, Sombor and Subotica entered into strategic partnership which should result in efficient products placement of to the market since the same or similar cultures are grown in all three towns.

The advantage of Kanjiza is its geographical position - border region in the north of Vojvodina, at the right coast of the Tisa river,Corridor EGK 4, which represents a potential international waterway.

- The freight ships dock is only 25 km far from the municipal headquarters. The fact is also that a part of Kanjiza municipality is a gate towards the European Union - a border crossing Horgos towards the Republic of Hungary where a small airport is located only 30 km from here, in Segedin. This is another good reason the logistics-distribution center should be at the border with EU. Good connection with the environment provides favorable geo-traffic municipal position: it is next to the Corridor 10 as well as next to the parts of the international road E-75, main roads M-22 and M-24 and a number of regional roads.

Partnership and cooperation

Our collocutor stresses out that partnership with private investor results from the fact that the Kanjiza municipality does not have sufficient financial capacity to invest into this kind of a center. Apart from that, land where the construction should start is owned by the municipality and, at the same time, in the industrial zone, so there is no trouble spot for this kind of an investment.

- Since both agricultural and food industry represent traditionally strong fields in the Kanjiza municipality, a logistics-distribution center which would function efficiently and which would provide stable purchase of agricultural producers’ products from the municipal territory, would require additional responsibility and motivation of producers to continue with investing in the maintenance and increase in the quality of their products as well as in the quality and responsible production.

In order to implement this, it is essential to increase the area of cultivated land and thus hire new staff. Since the logistics- distribution center has not been planned to be just a warehouse but also to be purchasing (and potentially processing) place for local agricultural producers, there is a need to hire staff within the center itself. This way, opening and functioning of the center becomes justified when it comes to the unemployed number decrease.

Construction can start

Fejstamer says that in 2009, the Kanjiza municipality started activities in development of territory which comprised 24 ha and which was called the Industrial park Horgos.

- The first important step which the municipality took with respect to this land which is located next to the highway, at the border with Hungary, was adoption of the Detailed Regulation Plan for the Industrial park Horgos which contains a description of all potential types of facilities which can be built there as well as their purpose. It also contains a detailed description of possible investments in infrastructure.

When it comes to property-legal status of the Industrial park, itis owned by the Kanjiza municipality.

- Thanks to “clear” legal situation, within the shortest period possible, in the procedure governed by the law, and with participation of the private partner and private capital, investment activities can continue with fast tempo.

The overall project budget totals USD 3,8 mil. The Kanjiza municipality has invested some USD 1, 3 mil while 570.000 of the amount was invested in infrastructure equipping while the estimated market value totals some USD 730.000.

The Agricultural logistics-distribution center Kanjiza project was selected as one out of eight the best at the competition “Public –privatepartnership as developmental potential” which is carried out by the National Alliance for Local Economic Development (NALED) and supported by USAID sustainable local development project.

M.K.