Air freight continued growing at Hungary’s Budapest Airport (BUD) in 2023. Consequently, BUD is one of the very few airports in Europe whose cargo throughput increased in 2023 (+3%). Unless ice, snow or fog paralyzes Ferenc Liszt International in...
<?xml version="1.0"?>Air freight continued growing at Hungary’s Budapest Airport (BUD) in 2023. Consequently, BUD is one of the very few airports in Europe whose cargo throughput increased in 2023 (+3%).
Unless ice, snow or fog paralyzes Ferenc Liszt International in the last days before the end of the year, the volumes handled will exceed 200,000 tons: a new record in the more than 70-year history of BUD. The main reason for this is because the cargo business is right there at the top of the management's agenda.
Not only cargo CEO Jozsef Kossuth, but BUD’s entire Cargo Team is pleased with the throughput in 2023 that’s becoming apparent – photo: CFG /hs
So, it is understandable that the Cargo Business Development Team consisting of René Droese, Chief Development Officer, Jozsef Kossut, Cargo Director, Réka Sebestény, Property Development Director, and Adrian Palagy,Cargo Development Specialist, is proud when revealing the predicted 2023 figures. After all, crossing the 200,000-ton mark feels rather like breaking through a sound barrier.
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BUD overtakes VIE
According to BUD, its growth is based on three main sources: The construction and expansion of the Cargo Center and apron areas, the rapid upswing of the e-commerce business in Hungary, and the ongoing investments of foreign companies in the country.
And where there is industry, there is cargo business. What pleases Mr. Kossuth and his team most, is that BUD overtook Vienna for the first time ever - measured in tons. In NOV23, Vienna handled 21,969 tons, while Budapest reports 22,206 tons - a marginal difference, but psychologically very important.
Whether this trend will continue, remains to be seen. But there are signs of a changing of the guard here, after years of Vienna being the main gateway for cargo in Central and Eastern Europe.
e-commerce is a key driver of growth
An indication underlining this tendency, is the rapid growth of integrator services at BUD, leading to high e-commerce throughput. It has now achieved a share of up to 30% of the total air freight handled at BUD, Mr. Kossuth estimates.
As for the whereabouts of the shipments, Jozsef says the following: “It is difficult to judge accurately, but we can say that roughly 25-30% of the airport’s cargo flows are linked to e-commerce activities. Now, more than half of the airport’s cargo traffic is non-Hungary originating or destined, but instead comes from other countries in Central and Eastern Europe or is destined to customers located there.” The manager points out that, as an increasing number of firms decide against reinvesting their profits in China and opt to invest in production plants in Southeast Asia or Eastern Europe instead, this strategic shift benefits Budapest, enabling the airport to become the leading regional gateway for cargo throughput in Central Eastern Europe.
Focusing on special cargo in 2024
Finally, he points to a new cargo community system, a ‘flagship project’ as he says. According to the scheme, managers of cargo airlines and integrators, members of the ground handling community, forwarding agents, customs officials and airport officials sit at the meeting table to streamline processes and further enhance the customer experience.
BUD’s Cargo helmsman also indicates that, in 2024, his management will put its focus increasingly on special cargo: the air transport of live animals, temperature critical products such as pharmaceuticals, and on setting up tailored supply chains for components needed for the production of e-vehicles.
Sounds like a lot of work for Budapest’s Cargo team.
Interview: Heiner Siegmund
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