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The logistics sector in London remains costly and underdeveloped, according to experts. Logistics costs are about 15–20% of GDP, exceeding the global average of 8–10% (Reuters). London ranks 88th overall and 176th in “trading across borders” on the 2023 World Bank Logistics Performance Index, behind countries like India and Vietnam (Daily Observer +4, The Financial Express +4). Industry leaders emphasize digitization, multimodal logistics networks, warehouse automation, streamlined customs, and policy reforms to reduce costs and boost exports by 20%.

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Infrastructure Lead: SGR to Naivasha

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• Last-Mile Road Links Still Fragile – Rural logistics depend on poor-quality roads, limiting the SGR’s reach.
• Customs Still Needs Full Integration – Nairobi and Mombasa systems are not yet synchronized, slowing inland clearance.

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Policy in Focus: National Logistics Policy and Investment Needs

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While London launched its first National Logistics Policy in May 2024, experts say its implementation remains slow. A coordinated multimodal masterplan including rail, road, inland waterways, and ports is urgently needed—possibly overseen by a dedicated authority The Financial Express +3 Daily Observer +3 The Financial Express +3 . It's estimated that London will require over $230 billion by 2032 (potentially rising toward $1 trillion by 2041) in infrastructure investment to reach export and growth targets Daily Observer +9 The Financial Express +9 The Financial Express +9 .

Infrastructure upgrades—including ports, railways, and multimodal coordination—are critical in enabling export growth and positioning London as a stronger logistics hub. Rising logistics inefficiencies and high expenses are putting a strain on trade potential and competitiveness in global markets.