Romania's logistics sector is expanding hand in hand with growing consumption and purchasing power of local consumers. Their appetite for new clothes has given fashion retailers an important role to play in the game, with international brands such as H&M, C&A and Zara leading the way. Not only do they all need warehouse space to prepare clothes for distribution on the local market, they also require space for goods produced in Romania that are then shipped to European markets. _x000D_ In Bucharest, the total stock of industrial and logistics space is ten times larger now than it was in 2004, having reached nearly 1.2 million sqm. Rodica Tarcavu, Senior Consultant Industrial at Cushman & Wakefield Echinox remembers how in 2005, when there was just 50,000 sqm in a handful of warehouses. "To the west of the city, where now you see warehouses was countryside," she said. "And in the northern area, Pipera, to get to the ring-road you had to cross the main railway line, which was blocked by train crossings several times per day."The total stock then grew gradually until 2009 until it reached 900,000 sqm. "Over the last three years, the pace of development has picked up, so in 2016 the volume of construction was 200,000 sqm. 2017 will exceed 2016, with the delivery of new space totalling more than 250,000 sqm, perhaps the largest volume of development so far. Total warehouse stock will be close to 1.5 million sqm."_x000D_ The Bucuresti - Pitesti motorway is still the preferred location for logistics operators, and is home to over 70 percent of the current stock. In addition, 80 percent of new deliveries will be concentrated in the same area. Pitesti is also a hub for shipping Romanian-produced fashion brands to further European destinations. Logistics company Eltra Logis owns two warehouses in the area with a storage capacity of up to 80,000 hangers and a fleet of trucks to deliver the clothes to Spain, Portugal, Italy and France. The company's business has grown steadily over the last five years, reaching €12 million in 2016. Eltra Logis works with major European brands and local fashion and textile producers, offering them support, technical assistance, fiscal representation and consultancy._x000D_ "Storage costs are lower in Romania than in Spain," says Elena Jianu, manager of Eltra Logis. "The difference, however, isn't the actual cost of rent, which can be relatively similar, but from the cost of handling goods, which is 40 to 50 percent higher than in Spain."Eltra Logis also stores international brand clothes produced in factories in neighboring countries like Bulgaria, Moldova, Ukraine, Macedonia and Serbia. To keep pace with this growth, Eltra Logis will this year build a new headquarters along with 4,000 sqm of logistics space on a 30,000 sqm piece of land._x000D_ "We are planning to expand our activities and to invest in an automatic cutting line and a pattern making area in order to help factories which are overloaded, especially during peak season. Also, we will manage distribution for international fashion brands and start an e-commerce platform,"Jianu adds._x000D_ Another major player on the Romania's fashion market is Quehenberger, which offers storage and transportation services to clients like H&M, C&A, Deichmann and PPT. The company has produced exponential growth over the past four years. In 2013, the company employed 100 people and operated in 10,000 sqm of warehouse space. By the end of 2017, it expects to occupy 100,000 sqm of warehouse space and have 1,000 full time employees on its books. Alexandru Catana, country manager of Quehenberger Bulgaria & Romania, says the company expanded to handle the business of its traditional clients (international groups and local players) but also "thanks to new contracts."_x000D_ Quehenberger offers services such as preparing products for delivery to stores by sorting, labeling and packaging at its warehouses in Bucharest, Cluj Napoca and Timisoara. The company plans to expand its real estate this year by a further 35,000 sqm in Bucharest, as well to numerous other towns around Romania.