Effects of the airport cargo developments
on the competitiveness of the region Airport region cluster conference – HIPA, 26.02.2016
• 100% privatized and managed by
AviAlliance consortium
• 340 Mio. EUR investment since
2007 in new infrastructure and
buildings
• 926 employees (including
affiliates)
• 10.3 million passengers in 2015
• 91,500 tons cargo
• 87,000 A/C movements
• 5.800 freighter movements
Budapest Airport – Fast Facts
52,67%
22,17%
20,17%
5,00%
AviAllianceGmbH
MaltonInvestment PteLtd.
Caisse de dépotet placement duQuébec
KfW IPEX-BankGmbH
Ownership structure of Budapest Airport
Emirates started daily
flights to Budapest
from October 2014,
A330-200, with belly
cargo capacity of 12
tons per flight.
They increase
capacities from
December 2015 to
B777.
Turkish Cargo increased from 2 to
3 the weekly frequency of
operation to Istanbul by the end
of 2014.
Cargolux kept on
handling the highest
cargo volume more than
11.000 tons in 2014 via
3 flights per week from
HKG
Cargo market development
In May 2015 Air China started 4
flights per week passenger flight
operation to Beijing with 10 tons
/ flight cargo capacity to each
direction.
In 2015:
• 91,500 tons cargo, steadily growing market with 5,800 freighter ATM
• 1,6% total cargo market increase
• 6,4% increase in total air cargo volume compared to 2014
• 8,8% total market volume increase in January 2016
Increase of
dedicated
special cargo
charters by
2014-2015
In March 2016 Qatar
Airways Cargo will start
operation of Doha-
Budapest-Prague-Doha
freighter route with A330-
200 (about 65 tons cargo
capacity), two flights per
week
The total Integrator market (DHL, Fedex, TNT, UPS) increases steadily,
provides about half of BUD air cargo volume
Integrators
Major Integrators have daily flight connection to their
European hubs (DHL, FEDEX, TNT, UPS)
- with daily feeder fligths from more airports in the region
• Budapest has a great geographical location in Central and
Eastern Europe to be regional distribution hub
• Extensive road (highway) network to the neighboring 9
countries and to the 20 countries in trucking distance, four Pan
European Corridors crossing Hungary
• Airport has direct highway connection
• Developing local air cargo related industries (mechanical
engineering, automotive, electronics and telecommunication,
pharmaceutical)
• Industrial growth in Hungary
• 24/7 operation, available night slots
• 24/7 customs clearance, bonded warehouses
• Ability to handle all, Category D, even E and F aircrafts
• Two independent Runways, always available apron capacities in
24/7, also in case of longer term parking and loading times
• Flexible and co-operative Airport Operation Team and Air
Control Authority
• Competitive cargo handling prices and professional handlers
• Very favorable incentive scheme for landing charges (e.g. 100%
discount in the first year of operation for a new cargo route)
• Continuously expanding freighter, belly cargo and integrator
network
Potentials of Budapest Airport in Cargo Development
Major roles of airport logistics in the industry
Gateway
Engine
– In total there are 65 000 jobs in Hungary
associated with airport operations,
contributing 1.6% to the GDP
– Of these 22 200 jobs are at and around the
airport, contributing 0.5% to the GDP
– Additional 43 300 jobs in tourism and
commerce
– 1 % increase in passenger traffic generates a
1 % growth in economic impacts
– one million additional passengers generate
approximately 1300 new jobs and contribute 13
billion HUF to the GDP
– 90.000 tons cargo = ~900 direct jobs and
5,850 tons indirect jobs
– 10 000 tons of cargo volume increase at BUD
(~10%) generates 95 new direct jobs and 617
jobs in logistics in total
The airport is a key driver of the regional and
national economy – an ACI Europe study
The success of Budapest Airport is the success of Hungary
Impacts of BUD Cargo development on Hungary
• Increase cargo traffic and convince
airlines to open new cargo routes
Main air cargo route opening target
regions:
North America Middle East, Asia,
South America, Africa
• Increase air cargo volumes flowing
through Budapest Airport
• Attract new cargo operator
companies to BUD
• Improve air cargo business
environment and infrastructure
Air Cargo buildings
Integrator buildings
Rail Cargo terminal
Development
goals of
• Better transport opportunities and improved accessibility to the world
market improves the competitiveness of the Hungarian products
• More direct air cargo route connections provides more efficient export and
import transport options for air cargo relevant products, and makes
Hungary more attractive location for the Logistic Investments and also for
the Manufacturing Companies
• Direct cargo connections improve the economic relationships of Hungary
with the partner countries
• More flights and more cargo volume result more workplaces in
Airport operation, security, custom clearance and flight handling
Cargo handling at the airport
Logistic business at the forwarders, transporters
(Cargo operation is a labor intensive business)
Gains for
• Logistic investments opportunities in warehouses, offices and other
facilities attract foreign FDI to Hungary
• Air cargo development increase GDP and tax revenues
Property and cargo development potential
Cargo City
Business Park
Airport Hotel
Aircraft maintenance
Office Park
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Integrator activity
bud:property – supporting cargo- and logistic growth
BUD office center
Magyar Posta, International Postal Distribution Center DHL Global Forwarding & Freight
• In addition to growing passenger traffic, cargo
and logistics services are being extended at
the airport too
• In recent years, we built new facilities
investing more than EUR 20 million
• Further developments are in the execution
pipeline (TNT, DHL Express) in order to
establish a leading role in Central Eastern
Europe.
10
Integrated Multi modal concept
For Cargo Developments
DHL Global Forwarding
DHL Freight
(2013)
Hungarian Post
(2010)
Forwarders
(2017-)
Railway cargo terminal
2016-2017
Cargo City
(2017-2018)
Integrator projects for
DHL and TNT
(2016-2017)
• A project co-funded by the European
Commission provides new service roads and
rail access in the airport area
• Upgrade of Express Road to be performed
by City of Budapest
• Rail-road-air interconnectivity to be
strengthened in order to generate more
growth and economic development
Some success stories
Leipzig, Halle – Germany, DHL Hub
It was opened in 2008 with 48,000 m2 warehouse and
23,000 m2 hangar: cargo volume increased from 52.000
tons to 760.000 tons in 3 years, 10,000 new jobs created.
Project value was 70m EUR.
Memphis Airport, Tennessee, USA, Fedex Hub
It opened its current "SuperHub" facility on the north side
of the airport in 1981. By 2009 the airport had 3.7 million
tons of air cargo (95% handled by the Fedex Hub),
220.000 jobs created (one airport workplace generated 3
indirect jobs).
Zhengzhou Airport China
In November 2011 the City opened a 5 m2 km customs –
free bonded zone for high value, time critical
manufacturing and distribution. Foxconn located a
manufacturing campus with 240,000 workers for I phone
assembling. The smartphone business doubled the export
value of the Henan province in one year. By 2013 48 new
projects (IBM, Microsoft, Amer Int., Cainiao Networks)
followed Foxconn with total value of 24,3 billion USD.
Thank you for your attention!
Looking forward to see Qatar Cargo
at Budapest!
József Kossuth
Cargo Manager
Budapest Airport Zrt. Tel: +36 1 296 6264
E-mail: [email protected]
René Droese
Director Property
Budapest Airport Zrt. Tel: +36 1 296 6746
E-mail: [email protected]
Thank you for your attention!
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