Bloomberg: Germany prepares its infrastructure for war. Investments of billions to rapidly move military equipment
Germany is investing millions of euros in logistics infrastructure and ports to prepare for a possible conflict, increasingly involving the private sector. However, collaboration between the military and companies is hampered by bureaucracy and complicated coordination mechanisms.
Germany prepares its infrastructure for conflict PHOTO Bundeswehr
In Bremerhaven, on Germany's North Sea coast, Europe's largest car port is undergoing a 1.35 billion euro ($1.6 billion) upgrade. The state-funded investment is not aimed at exporting more Mercedes-Benz and VW vehicles, but at strengthening loading docks to be able to transport military equipment, such as a 60-tonne Leopard tank, to future front lines, Bloomberg writes.
Included in Germany's 2026 budget, the project is part of a wider effort by Europe's largest economy to prepare for a possible war. Should Europe be attacked, Germany's central position and industrial resources place it in a strategic point to supply equipment to the troops.
But the German military cannot carry this task alone and is looking to the private sector for support to cover capacity gaps. That means calling on companies like BLG Logistics, which handles cargo in Bremerhaven.
Significant obstacles
The decision to invest in the port was “a turning point”said Matthias Magnor, general director of BLG. “We are currently in very positive discussions and hope to be able to make the first significant investments this year.”
Although companies are willing to provide transport and storage services to the German military, the hurdles are significant. In addition to road and rail infrastructure problems — some 5,000 bridges need repair — the Bundeswehr is not organized for public-private partnerships on the scale required for rapid mobilization should a NATO ally attack.
As a legacy of the Second World War, in Germany the civil and military structures were strictly separated. The Bundeswehr, for example, has its own logistics command, and only military personnel can deliver equipment directly to the battlefield. But these boundaries are beginning to blur.
“We set things in motion that are truly a paradigm shift”German Defense Minister Boris Pistorius said on April 22 when he unveiled the new strategy military of the country. “We must all accept that peace and freedom, prosperity and tolerance can no longer be taken for granted, but must be defended.”
Despite the intentions, the road is still long. The German military procures private services through complex processes designed by and for the military that are difficult for outsiders to understand. Responsible institutions are reluctant to exchange ideas or provide information to potential partners, partly to avoid favoring one applicant over another.
An example is the procurement agency of the Bundeswehr, which has no direct contact with companies. Communication takes place exclusively through procurement platforms, according to a spokesperson for the organization known by the acronym BAAINBw.
The government calls on civil firms
The government is trying to open up more to civil firms. The model is so-called “Operational Plan for Germany”completed in March 2024. The document shows how private actors would contribute to national and allied defense in the event of an attack, including coordinating logistics for the supply of hundreds of thousands of troops.
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However, the plan is classified, and logistics firms only know fragments of it. While caution may be understandable, it complicates efforts by companies to understand how they can participate.
Germany's preparations for war also mean a lot of red tape: Firms must hand over detailed information about fleets, storage capacities and personnel, receiving very little transparency in return, according to Niels Beuck, deputy director of German logistics association DSLV.
“The armed forces are actively looking to strengthen cooperation with the logistics sector, and many carriers are interested in contributing”he said. “However, the field is highly specialized and companies need better access to information and contacts to be able to participate effectively.”
For companies, taking on more tasks would increase the size of that market and allow the understaffed military to focus on its core missions, Beuck added.
The invasion of Ukraine changed the perspective on defense
The change in direction began in 2022, after Russia's full-scale invasion of Ukraine. US President Donald Trump's threat to withdraw troops from Europe has added a sense of urgency to Germany's rearmament efforts. This has also influenced the strategies of logistics companies.
BLG had previously provided logistics services to the US military and other NATO members, but the activities were sporadic and not a major segment. Since Russia's invasion of Ukraine, the outlook on support for the Bundeswehr has completely changed, says CEO Magnor.
And the German company Fiege got involved. With 22,000 employees and enough storage space for more than 600 football pitches, it can provide significant support to the Bundeswehr. Its locations are strategically located near major roads, ports and airports, and the company also has a significant real estate department with land for future developments.
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“Logistics is crucial”
BLG drew up a list of what it could provide in a crisis scenario: more than 70 Bremerhaven-qualified tank drivers trained for operations with the US military, 1,500 rail cars and seven river terminals — huge parking lots that could be used as staging areas for troops and equipment.
Without a clear process, the company took the initiative and started knocking on the doors of institutions in Berlin. BLG quickly realized that the Ministry of Defense operates differently from the business environment, and rigid procedures are more valued than pragmatism and dialogue, according to Magnor.
However, Germany is trying to facilitate contact with commercial logistics providers, and communication is improving. Quaden de la Fiege is convinced that the defense sector will need the capacity and know-how of logistics companies. In his view, supply management must be seen as part of a larger plan.
“Logistics is crucial”he said. “Strategic decision-makers — political and military — need to know when it makes sense to freeze front-line activities that require huge resources in order to still provide people with bread from the grocery store.”
