Yevgen Savchenko, Director of the Investment and Development Department at TERWIN Group

July 4, 2024

Demand for high-quality logistics infrastructure is growing in Ukraine. TERWIN Corporation, which has extensive and successful experience in organizing logistics processes through its subsidiaries EVA and VARUS, is launching the $700 million WINHUB investment project to build Class A warehouses in four regions of the country. This represents the highest standard of warehouse storage across more than 1 million square meters in four regions—Lviv, Dnipropetrovsk, Odesa, and Kyiv. Our plans go beyond simply building warehouses; we aim to deploy a comprehensive infrastructure for business. The hub is designed based on the principles of energy efficiency, environmental sustainability, and ergonomics. Energy efficiency means making the most intelligent use of resources and energy-saving technologies. Environmental sustainability involves using alternative energy sources and treating wastewater, as well as managing the full cycle of waste, containers, and packaging. Ergonomics ensures the most efficient use of all the hub’s spaces.

It might seem that an investment of this scale and scope during wartime poses a significant risk. However, the decision is actually well-considered and carefully calculated, as there is demand for such logistics infrastructure in Ukraine. By way of comparison, there are currently only 1.5 million square meters of warehouse space of this class in our country, while in neighboring Poland there are 30 million square meters.

What exactly is so appealing about the cutting-edge logistics infrastructure promised by the developers? An obvious benefit for businesses is the reduction in operating costs thanks to more efficient use of warehouse space and, consequently, faster delivery. We promise to implement cutting-edge global logistics best practices at our facilities and to train high-caliber personnel starting from the university level. To this end, we will open an R&D center and establish partnerships with specialized universities in Ukraine and around the world.

The project’s state-of-the-art warehouse facilities will be designed to serve the widest possible range of customers. WINHUB will handle exports and imports using the hub’s bonded warehouses and related customs services. It will be able to combine road and rail transport in a single location—this intermodality will allow us to handle various types of cargo and manage large shipments of goods. Ultimately, we will provide different types of warehouses at all locations to meet the requirements of potential tenants.

The Ministry of Economy of Ukraine has included WINHUB in the list of the most promising investment projects, which were presented in June at the Ukraine Recovery Conference in Berlin. For our part, we are already in talks with Western investors who are considering joining the project.

Safety comes first. Even at the design stage of the logistics hub, we’re planning to provide fully equipped storage facilities for 100% of our staff. And we plan to create up to 25,000 jobs! Furthermore, for projects of this scale, it’s important to consider the multiplier effect: for every job created directly at the logistics hub, two to three new jobs will be created in related industries. These include hostels, supermarkets, truck service stations, daycare centers, gyms, food courts, waste collection and recycling facilities, and even car-sharing and electric vehicle services.

It’s clear that this kind of business activity will thrive in the communities where WINHUB operates. These communities will gain more financial resources and ideas for developing social infrastructure, not to mention the direct improvement in the well-being and professional skills of local workers.

Thus, the WINHUB project has emerged at the intersection of the needs of corporate businesses and the Ukrainian market as a whole. It is precisely this combination that gives hope that investors will come forward and the four regions will receive state-of-the-art logistics infrastructure. And with it will come a revival of local business activity and the social sector. Moreover, the project’s implementation will provide a boost to the entire economy. WINHUB will increase the volume of Class A warehouse space in Ukraine by more than 75%, meaning that large foreign suppliers and retailers accustomed to European-level service will be more likely to enter our market. Ukraine will become a prominent player on the global logistics map.