According to the IFC, the proposed project aims to enhance the logistics and warehousing sector in Ukraine, Moldova, Serbia and Albania by improving the regulatory environment, strengthening private sector capacity and facilitating investments in green and digital logistics. Specifically, the project will engage in the following activities:

1. Support the adoption of policy and regulatory reforms (such as: regulations around road worthiness of cargo vehicles and technical standards related to warehousing in Ukraine; develop a legal framework for the operation of private warehouses in Moldova, and the licenses for national and international cargo transport in Serbia) to reduce direct compliance costs by $5m within 2 years after implementation completion.

2. Enhance the operational capacity of 80 logistics firms through targeted training program, leading to measurable improvements within 2 years after implementation completion.

3. Identify investment opportunities and engage at least 100 high potential firms upon implementation completion, facilitating $50m in private sector investment in green and digital logistics within 2 years after implementation completion (contributes to WBG Corporate Scorecard Outcome Area 15 “More Private Investment”).

The proposed work will be carried out in consultation and collaboration with other IFC advisory projects, IFC investment teams, and relevant WB advisory and lending operations, and in complementarity with initiatives carried out by other donor partners. Other Western Balkans countries may be engaged opportunistically depending on stakeholder interest and available resources.

To achieve its objectives, advisory work derived from the findings of the pre-implementation research work and in alignment with stakeholders priorities will be carried out in Ukraine, Moldova, Serbia, and Albania.

Component 1. Creating a favorable regulatory and policy environment for the sector
The project will work with Ministries of Infrastructure and other relevant government agencies to implement reforms identified during pre-implementation. The activities will include identifying priority areas of reforms, obtaining counterpart sector buy-in, establishing working groups, drafting legislation and guidelines (e.g., laws, bylaws, regulations, standard operating procedures, etc.), supporting achieving the passage of proposed legislative/regulatory changes, and seeking to ensure application of adopted changes by implementing agencies. These activities aim at incentivizing the uptake of modern and climate-friendly logistics services and warehousing offerings by logistics firms.

Component 2. Capacity Building of Private Sector
The project intends to build capacities for logistics and warehousing firms to address the gaps identified during the pre-implementation stage.
- Sub-component 2.1: General training. This work will target firms in the logistics sector and firms with large in-house logistics unit to provide training on some highlighted gaps in the skills gap analysis. For example, there would be courses on leadership and management skills, new technologies, and new trends in green logistics, automation and robots, and intra-logistics.
- Sub-component 2.2: Tailored training and coaching of firms. A subset of firms can be selected to receive more focused support or coaching based on certain criteria such as size, ownership (domestic/foreign) and country of operations (local/international). As highlighted in the skills gap analysis, firms prefer on-the-training or in-house training that focuses on practical and operational skills. The program can provide training in one of three areas: logistics competence, technology or leadership/business skills. The work is aimed at increasing the firms’ knowledge and ensuring that they can apply the knowledge received during training in their daily operations.

Component 3: Identification of the Investment Needs for a Green and Digital Logistics sector.
The team will provide governments and firms with tools to identify investment needs. First, the sector needs to become greener and more digital will be assessed as well as those firms most ready for such investments identified - most likely large and /or foreign-owned firms. The findings will inform governments to attract private investment into the sector and highlight the needs for future support programs. Such investments in the logistics sector include green logistics centers, warehousing and distribution facilities, (green) fleet solutions (use of e-vehicles), substitution of fossil with sustainable fuels and others. Digital investments include the adoption of inventory warehousing / electronic resource planning software, robots and automation. Second, tailored assessments of high-potential firms (based on size, profitability, countries of operation, and expansion/investment plans, etc.) will be done: assessment of current operations, identification of the technology solutions and improvements needed to be green and digital, and an analysis of the operation and capital expenditure needed to undertake these investments. In addition, the work can also support these companies in identifying potential financing sources for these investments such as through traditional bank loans, venture capital, government grants or green loans/bonds. By offering tailored recommendations and actionable insights, firms can make informed decisions that drive both financial performance and sustainability.

No project contacts provided at the time of disclosure.

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