November 2017
New logistics centre planned in Mošnov
Plans to build a large multimodal logistics centre at the Ostrava-Mošnov Strategic Industrial Zone are near to becoming a reality. Construction work is set to be contracted to Consens Investments, representing the interests of DB Schenker – a subsidiary of Deutsche Bahn, one of the world’s largest logistics companies. On 18 October Ostrava’s City Assembly approved plans to sell the land (a total 54 ha) to the developer.
The logistical component of the Ostrava-Mošnov Strategic Industrial Zone formed part of the project from the very outset. However, the developer HB Reavis, which was to build the logistics centre, was unable to find an end user. The City of Ostrava therefore stepped in and helped to promote the project at a number of major international investment events. These efforts eventually paid off, and the City has now found a major investor.
The Mayor of Ostrava Tomáš Macura gave more details: “We have agreed that the investor will come to Ostrava next month – when we will make the final decisions on specific contractual arrangements – and they will present their project to the public.” According to currently available information, a large logistics centre will be built on almost 54 hectares of land near the Leoš Janáček Airport in Mošnov. The centre will handle all three modes of transport – road, rail and air. The warehouse areas and container transshipment point will cover around 155 000 square metres, and the value of the investment will be in the billions of CZK. The project will be implemented in four phases. First, a large factory hall will be built (50 000 m2); this should be completed by early 2021. The entire project will be completed during 2023.
Mayor Macura concluded: “We expect the project to substantially add to the value of Ostrava’s airport, which is the only Czech airport with a direct link to the rail network. The new logistics centre will create strong synergic effects for companies already operating at the zone.” The new centre will bring substantial benefits to the entire region.
Ostrava is a major hub for shared services centres
Ostrava is no longer viewed as an exclusively industrial city: it is also becoming increasingly popular as a hub for shared services centres – not only in IT, but also in human resources, accounting and R&D. Ostrava has the third largest concentration of these shared services in the Czech Republic, and during the upcoming year this segment is predicted to grow by up to 19%.
% by employees in the Czech Republic. Source: ABSL
According to a survey carried out by the Association of Business Services Leaders (ABSL), Ostrava’s shared services segment accounts for around 10 000 jobs. Major employers here include Tieto Czech, with over 2000 employees. Companies are motivated to choose Ostrava due to the availability of a highly skilled workforce (including foreign language skills) as well as modern office facilities of outstanding quality. Besides international operators such as Okin, CGI, Siemens or ABB, major investors also include Czech-owned companies; beverage producer Kofola is planning a shared financial services centre in the city.
Korean Days in Ostrava
Ostrava is co-hosting the largest festival of Korean culture in Central Europe. Korea has a major presence in the region: numerous Korean investors have helped to create a large and growing Korean community here, and the Korean Days festival represents an ideal opportunity to get to know our new neighbours better.
The Korean Days festival in Ostrava was launched on 2 November when the Korean Ambassador to the Czech Republic Mr. Seoung-Hyun Moon visited the city. The ambassador was greeted at the New City Hall by Ostrava’s Deputy Mayors Kateřina Šebestová and Michal Mariánek. In the afternoon the ambassador opened a new exhibition of photographs in the foyer, entitled ‘Korean Winter’, celebrating the country’s hosting of the 2018 Winter Olympics; the exhibition is open to the public until the end of November. The programme of the festival also included a dance performance by a Korean ensemble at the Antonín Dvořák Theatre, workshops in Korean cuisine at primary and secondary schools, a Korean tea week, a celebration of Korean literature, and the Korean Business Forum conference.
Ostrava has the highest concentration of Korean companies and investments in the entire Czech Republic, and Korea is a major partner for us. This opens up the possibility of developing Ostrava as a destination for Korean tourists; around 300 000 Koreans visit the Czech Republic as tourists each year.
The Smart City Hall competition
Ostrava gave an excellent showing in the Smart City Hall competition, with four of its projects winning awards. The FajnOVA project and the introduction of contactless card payment terminals in public transport vehicles each won first prize in their category. Second prizes went to the SmogAlarm project and an energy-saving project in the Krásné Pole municipal district.
- Deputy Mayor Kateřina Šebestová
Award-winning projects from Ostrava:
FajnOVA – Creation of the Ostrava City Strategic Development Plan: In 2016 Ostrava created its Strategic Development Plan 2017–2023. The planning process was unique, involving members of the general public in the creation of the plan. The ‘FajnOVA’ brand was used as the vehicle for all aspects of communication regarding the plan (the name is a play on words combining a Czech word meaning ‘fine’ – and pronounced in the same way as the English word – with ‘OVA’, a commonly used abbreviation of the city’s name). Around 20 000 citizens participated in this process.
Contactless card payment terminals in public transport vehicles: The new system accepts all commonly used types of contactless cards, making payment simpler and easier for passengers.
SmogAlarm: SmogAlarm is a smartphone app which gives users up-to-date information on air quality throughout the Czech Republic. The app was developed by the NGO Clean Skies in 2011, and the app update in 2017 was funded by the City of Ostrava.
Municipal energy system: This project implements a systematic approach to achieving energy savings at several buildings within the municipal district of Krásné Pole: a primary school, a preschool, a residential block and a health centre (total energy consumption approx. 2 000 GJ/year).
Who will design the revitalized municipal slaughterhouse?
The original winner of the architectural competition for the revitalization of this historic landmark – Prague-based architect Petr Hájek – refused to sign the contract to provide detailed project documentation, so the City of Ostrava instead invited another of the original participants, the Polish architect Robert Konieczny from Katowice.
- New visualisation by an architect Robert Konieczny from Katowice.
The competition jury singled out three designs for particular praise, with Petr Hájek’s Prague studio the overall winner. This initial evaluation phase was followed by a selection procedure to provide detailed project documentation; two participants (Mr. Hájek and the Polish architect Robert Konieczny) submitted documentation in this phase. Petr Hájek offered a lower cost and a shorter implementation period. As part of this phase, entrants were required to sign a contract with the City, as Mayor Tomáš Macura explained: “When submitting the original proposals, each participant was entitled to raise objections to this contract. Robert Konieczny had some minor objections, but Petr Hájek did not raise any objections at all. However, when he won the competition and was invited to sign the contract with the City, he attempted to re-negotiate the terms of the contract with the City – specifically the penalties for the late delivery of documentation. But under current legislation on public procurement, any change to the contract at this stage would be breaking the law.” Mayor Macura added that Mr. Hájek’s lawyers had also acknowledged this fact.
The selection procedure was evaluated on 30 June 2017, and because Petr Hájek had still not signed the contract, the City Council asked him to sign it no later than 18 September; however, he did not comply with this request. Mr. Hájek also had a 14-day period during which he could raise objections to the contract, yet he raised no such objections. The City therefore approached the second entrant in the selection procedure, the KWK PROMES studio in Katowice, headed by Robert Konieczny, and invited him to sign the contract instead. If the contract is signed, Mr. Konieczny’s studio will provide the detailed project documentation; the final design of the revitalized slaughterhouse will be the project that was ranked third in the original architectural competition.
Mayor Macura continued: “The City proceeded in full accordance with the law. The contract which Mr. Hájek refused to sign was drafted by a renowned law firm which specializes in selection procedures of this type. The terms and conditions of the competition were also approved by the Czech Chamber of Architects.”
If for whatever reason Robert Konieczny’s studio likewise fails to sign the contract, the City will be able to announce a new selection procedure for the provision of detailed project documentation; Petr Hájek could again enter this procedure, and he could raise objections to the contract during the designated period. In such a case, the City would be able to consider and accept his objections without breaking the law. However, this remains a purely theoretical outcome.
Accelerator programmes are still open for applications
The Innovation Support Centre at the VŠB-Technical University of Ostrava is accepting applications for the fifth annual accelerator programme ‘Green Light’. Another programme designed to support startups is CzechInvest’s ‘CzechAccelerator’ programme.
The Green Light programme will be launched for successful applicants in January 2018; the three-month startup accelerator will culminate in a Startup Show held in April. All you need is enthusiasm and a good idea, and Green Light will help you to find paying customers. More information HERE
The CzechInvest agency has opened another call for applications to its CzechAccelerator programme, which also supports startups. Companies have the opportunity to spend three months at a business incubator in New York, Silicon Valley or Singapore. Applications can be submitted between 23 November and 30 November 2017. See HERE for more information on the programme and application documents.
Who will run Ostrava’s bikesharing scheme?
On 17 October, Ostrava’s City Council approved a public tender to build and run a bikesharing scheme in the city. Entrants have until 18 December to submit their proposals.
In addition to supplying the bicycles themselves, operators will also provide the equipment and maintenance of the bikesharing points, as well as running the service centre and the user call centre. The City is offering a three-year contract with an option to extend it for a further year. It is willing to pay up to 36 million CZK for this four-year period.
See HERE for more information on the tender
Updates – negotiations with developers
- A long-term dispute between Ostrava and the developer Amádeus Real (which sued the City for 1.5 billion CZK) has finally come to an end, as the appeals court at Ostrava’s Regional Court has rejected the action. The developer originally demanded the sum as compensation for alleged losses connected with non-implemented plans for development work at the square adjacent to the former Ostravica-Textilia department store.
- The City Assembly has rejected proposed changes to the terms and conditions of the contract signed with Red House Development to complete the partially finished structure next to the Regional Authority offices. The previously signed contracts – which commit the developer to complete construction work by the end of the year – thus remain in force.
IdeaHub opened in Ostrava
The Moravian-Silesian Innovation Centre (MSIC) has opened a new shared development centre, the IdeaHub. The centre offers facilities where members can work on innovative solutions in technical projects from the fields of mechanics, mechatronics and electronics, learning to work with the latest production technologies.
IdeaHub offers students and experts access to key production technologies, putting them in contact with companies from the Moravian-Silesian Region which are developing new products. The purpose of the project is to help technical graduates to apply their skills and knowledge in developing competitive products and processes. IdeaHub is a partner in this year’s GREEN LIGHT startup accelerator programme, and participants in the programme will be able to make use of its facilities.
Ostrava presented major investment opportunities at this year’s Expo Real
From 4–6 October Munich’s exhibition centre hosted the 20th annual Expo Real – one of Europe’s top commercial real estate and investment events. Exhibitors included some of the continent’s leading cities, and this was the first year that Ostrava participated as part of a joint exhibition – the CZECH REGIONS & CITIES stand, together with Brno, the Moravian-Silesian Region and the South Moravian Region.
Ostrava has now showcased its real estate and investment opportunities sixteen times at Expo Real. Thanks to this wealth of experience, the city agreed to take on the role of coordinating the joint exhibition. Ostrava’s Mayor Tomáš Macura gave more details: “Prague did not take part this year, making us the only Czech city to have had a continuous presence at Expo Real – a fact which demonstrates our systematic approach to working with investors. Other European cities and regions have begun to take part in joint exhibitions, and our decision to follow this trend proved to be highly worthwhile – not only because it helped to reduce costs, but also because it enabled us and our partner exhibitors to present ourselves to investors as a synergic unit. We are very different from Brno in terms of our historical development and the types of opportunities we offer, so we are not competing directly with each other. The same applies at the regional level, with the Moravian-Silesian and South Moravian Regions, our other partners at the exhibition. Thanks to our cooperation, we managed to attract many more potential investors than we had done in previous years.”
- Expo Real 2017
Download basic facts about Ostrava
We regularly update our factsheets about the city of Ostrava, giving key data on life and business in the city. You can download the complete information (including geographical data, a brief history, education provision, information on inhabitants and the workforce, plus other information for businesses and investors) at our website HERE. The information is updated on a regular basis.