Feasibility Study for a Regional Logistics Hub in Vaasa

Abstract

This study aims to assess the possibility of DACHSER Finland Oy establishing a third logistics centre in Vaasa, located on the west coast of Finland. Vaasa’s transportation infrastructure, regional industrial structure, maritime connection to Sweden and local labor force potential are evaluated multidimensionally. Alfred Weber’s Least Cost Theory is used as the theoretical framework, and the decision-making process is addressed in the context of transportation costs, labor costs and agglomeration economies. Qualitative research methods are used in the study. In addition to a literature review, an interview based on expert opinions is conducted. SWOT analysis and comparative assessment with existing DACHSER logistics center are conducted, revealing Vaasa’s strengths, weaknesses, opportunities, and threats. The findings show that Vaasa could be a strategic expansion point for DACHSER Finland due to its transportation diversity, energy sector clustering and being a gateway to the Swedish market.