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Lighter carbon

SPECIAL REPORT:

footprint, bigger

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MOVING INTO THE FUTURE

for logistics software

LOGISTICS

chain Logistics and supply becoming management are and more more sophisticated, friendly, here environmentally the country in Hungary. But its neighbors still lags behind development. in logistics center

MARCH 27, 2015 – APRIL 09, 2015

VOL. 23. NUMBER 06

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Cutting loose

SPECIAL REPORT

Photo: MTI

Central bank chief György Matolcsy on March 24 announces Hungary’s first base interest rate cut since July, as his deputy, Ádám Balog, listens. Analysts say the cuts are part of a new cycle of looser money that should continue in the near future. 3

BUSINESS

NEWS

Green shipping good for business

M&A activity shows a positive trend

More questions about Quaestor

As businesses seek to get a grip on the cost of logistics, they are also doing the environment a favor. We look at the strategies that firms here in Hungary use to move cargo more efficiently. 12

An EY report finds that mergers and acquisitions activity in Hungary increased by 12% last year. An EY expert says this is one of several indications of improving investor sentiment in the country. 9

The prime minister seeks to silence the uproar after it was learned that the foreign ministry pulled all of its money out of the troubled investment house just days before it went under. 4

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THE EDITOR SAYS

Sunday closing: A bad idea that needs to go The Sunday closing law that came into effect March 15 is a bad idea. It only serves special interests, and it should be killed – by legislation or a referendum. The chorus of opposition to the Sunday closing law has mostly hit the same basic note: Forcing larger retailers to close on Sundays is bad for business and the economy. Aside from half−hearted defenses from government, we’re not hearing much opposition to this chorus, not even from the people who this bill supposedly helped: those who work in the retail trade and could not manage to get Sundays off. According to the Christian Democrat (KDNP) sponsors of the bill, a trade union approached them and requested the Sunday closings. When the KDNP, junior partners in the ruling coalition with Fidesz, first proposed the idea in 2011, the Economics Ministry was opposed to it because it’s bad for business. And when the idea was proposed again last year, the ministry opposed it again. But the second time around, the bill was rewritten to favor smaller stores – including stores that are part of the Hungarian CBA chain, the owner of which has been a major donor to the ruling Fidesz party. The bill was written so that most CBA stores could stay open, and enjoy much less competition on the day when Hungarians do roughly one fifth of their shopping. It appeared that the bill was no longer about labor concerns, but rather about repaying political patronage. At this point, the Sunday closings law suddenly appeared to become bulletproof, and its eventual passage in December became a foregone conclusion, no matter how bad the idea sounded, or that the Ministry of National Economy had carried out no assessment of its likely impact (it says it wasn’t required to as this was a private member’s bill).

The plan certainly sounds bad from an economic perspective, and not just because the opportunities for overall retail sales are reduced. Business confidence suffers too. Hungary is already losing out to neighbors like Poland and the Czech Republic in the competition for foreign direct investment. One frequent reason that investors have given for avoiding Hungary is the lack of transparency in governance and the apparently arbitrary rule of law. The ill−advised Sunday closings law is a good example of such problems: No one seems to like the law, or see any sense in it, but we have it anyway. Retailers don’t want the plan, as it means they must close on the day when roughly 18% of Hungary’s retail sales used to take place. Shops and property owners at the big shopping centers, especially the ones near transit hubs, like the WestEnd mall next to Nyugati train station or the Aréna Pláza mall near Keleti station, say that Sunday brought in more than a fifth of their sales, as that was the day when people living outside of Budapest used to take a train or drive into the capital to shop. Voters don’t like the plan either, at least not based on statements attributed to János Lázár, head of the Prime Minister’s office. According to a leak reported in the media, Lázár told a private meeting that, if there is a popular referendum, the law will be defeated. According to reports, the National Association of Entrepreneurs and Employers (VOSZ) and Hungarian trade unions (LIGA) have initiated the process of holding a referendum on the matter, and the National Election Office is currently evaluating their application. That referendum should be held. If it cannot be held, the legislation on Sunday closings should be repealed. With all due respect to special interests, this law is a bad idea.

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Kossuth Lajos tér, next to Budapest’s Parliament building blossoms during the spring of 1959 in the photo above, from Fortepan.hu. At left is a 2014 folk dance event in the same square, which was renovated a few months before this picture was taken, and now has much less greenery than it once did.

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1 News

NEWS

Orbán says he decided to quit Quaestor

NEWS

Prosecutor suspects wrongdoing at NAV 4

macroscope

MNB surprises no one with rate cut Cuts in the MNB’s lending rate since the beginning of 2014 4

The Budapest Business Journal presents some of the most important macro data of the past fortnight.

HUF 5.602 trillion

CHRISTIAN KESZTHELYI

Bracket better than target Mariann Trippon, an analyst with CIB Bank in Hungary, called the bracket a good idea. “The change should be welcomed, as the a rigid inflation target can cause serious damage, but if the interest rate path became too flexible and unpredictable it would not affect inflationary expectations positively,” she said. Like Kiss, Trippon said a base rate cut down to around 1.5% is likely, and she suggested that the rate may need to be

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With inflation near negative numbers over the last year, and room to grow in the pace of economic activity, the National Bank of Hungary showed no qualms in loosening the money supply by cutting the base lending rate 15 basis points to 1.95% on March 24. The market absorbed the news well – in fact analysts had been expecting a 20bp cut in the rate – and the forint strengthened to 300 HUF/EUR for the first time in more than a year on that day. This was the MNB’s first rate cut since July, and analysts say they are expecting more in the next few months, perhaps throughout this year. “CEE countries, especially Poland and Hungary, are facing many opportunities in 2015 to support real economic growth through monetary loosening and other central bank tools,” said Mónika Kiss, a senior analyst with Equilor Investment. “The desired level of inflation may be reached only by the beginning of 2017. A base rate cut of 15bp alone is not enough for a new stimulus, but market analysts believe that the Monetary Council might decrease the key interest rate to 1.5% in a couple of months.” The rate cut came as the MNB sharply cut its forecast for 2015 inflation, now saying that consumer prices should stagnate this year, rather than increasing an average 0.9% as projected in December. The MNB on March 24 forecast 2016 inflation to average 2.6% annually, less than the 3% target, although the bank made the target easier to hit, by giving itself a +/−1 percentage point “tolerance bracket”.

Speaking X of ﬁgures

Source: MNB

Managed by members of the Association of Hungarian Investment Fund and

disinflationary processes across Europe, which also affected domestic macro figures [...] chiefly due to the falling crude oil and food prices, as well as to exported deflation from the European Union,” Kiss said. “Central banks’ policies have been accommodating the trend: the European Central Bank started its bond buying program, therefore European yields are at record lows. Due to the low inflationary pressure, the expected increase in the [U.S.] Fed rate could be postponed to the second half of the year.”

GDP growth anticipated

Mónika Kiss of Equilor Investment.

“All in all, we expect monetary conditions to stay extremely loose in the long-term, and inflation should not reach the 2017 target.” cut lower if prices do not start to rise. “It cannot be predicted when the new cycle would end, as it chiefly depends on the macroeconomic data of the upcoming period and more importantly on the market processes of the upcoming period,” Trippon said. “All in all, we expect monetary conditions to stay extremely loose in the long−term, and inflation should not reach the 2017 target. Therefore we expect low base rates for the upcoming period in Hungary.” Kiss agreed that external factors cause some uncertainty. “The rate cut came amid the recent strengthening of

As for its predictions of GDP growth, the bank was upbeat on March 24. “MNB expects a growth pace of 3.2% for this year, which could slow to 2.5% for 2016. Although the trend matches our own predictions, we believe that this year we will see growth of 2.5%, which will slow down to 2.1% in 2016,” Trippon said. “We believe that the growth pace of last year cannot be maintained. However, the structure of growth could become more balanced, and on the consumer side, the growth−driving role of investments can be taken over by retail consumption.” Kiss also saw the bank’s estimate of growth as a bit optimistic. “We expect 2.7% annual growth in 2015 on the back of improved external demand and domestic lending stimulus. Household consumption recovery will be supported by low inflation, while net wage rises and the extension of the central bank’s Funding for Growth Scheme program could be the key contributors to GDP growth,” she said. “The favorable impact of EU fund inflows is likely to decrease from this year, but improving service balances and the revival in small− and medium−sized businesses might partly counterbalance it. Some local companies face risks of an escalation in the Russian− Ukrainian situation during the year.”

Asset Management Companies.

HUF 310.7 billion Hungary’s cashflow−based general government balance, which is 35.4% of the full−year target.

€545.6 mln Amount of current−account surplus in Hungary in January, when the external financing capacity – calculated as a combined surplus of the current and capital accounts – came to €786.8 mln

8% Increase in rate of the output of the construction sector in Hungary in year−on−year terms in January.

Source: KSH, MTI

With inflation low and growth moving at a moderate pace, the National Bank’s reduction of the base lending rate to 1.95% is expected to be the first of several cuts.

MACRO

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04 News

Budapest Business Journal | March 27 – April 09, 2015

NEWS

What a difference a day makes

IN BRIEF Hungary’s Prime Minister Viktor Orbán on March 25 said that he personally urged government ministries to withdraw their money from Quaestor investment house because he suspected that the scandal a few days earlier at Buda-Cash brokers would set off a domino effect, bringing down independent Hungarian brokerages, Hungarian online daily index.hu reported. The prime minister was responding to a journalist’s query, at a press conference in Sopron, about why the Hungarian foreign ministry withdrew its money from Quaestor just before the investment ﬁrm became insolvent. Orbán said that, watching how individuals and municipalities saw their monies being frozen at Buda-Cash, he told government institutions to withdraw money from all brokerages. MNKH, a state-owned company supervised by the ministry, reportedly signed an agreement with the brokerage arm of the Quaestor group in March 2013 and had assets amounting to HUF 3.9 billion at the troubled brokerage house. According to the ministry, MNKH decided to withdraw its capital from Quaestor on March 5. Quaestor declared insolvency on March 9 and ﬁ led for bankruptcy on March 19. According to index.hu, even though MNKH reportedly made the decision to withdraw its assets from Quaestor on March 5, the actual transaction did not take place until March 9, the same day Quaestor reported insolvency. The ministry has denied having insider information on Quaestor.

Government requests further information on Facebook users The Hungarian government requested twice as much information on Facebook users in the second half of 2014 than in the ﬁrst half (167 users in H2, up from 78 in H1), Hungarian online daily hvg.hu reported. According to the daily, one-third of the queries have been fulﬁ lled so far. In H1 2013 the government requested information on 24 users and in H2 2013 requests by the government involved 51 users, the daily added. HVG noted that government requests in Western countries, namely the United States, the UK, France, Germany and Italy, saw the number of requests decrease in H2 last year. HVG says information can include IP addresses, exact location and sent and received messages.

Prosecutor says he suspects wrongdoing at NAV Following an investigation of charges made by a whistleblower in 2013, an unnamed high-ranking official of the Hungarian Tax and Customs Authority (NAV) is suspected of misuse of official information, Hungarian online daily hvg.hu reported on March 19. According to Hungary’s chief prosecutor, an

investigation is underway, and the unnamed NAV official has already been heard by the Supreme Court of Hungary, hvg.hu reports. Former tax official and whistleblower András Horváth, quit NAV in 2013 after alleging rampant fraud and complaining that he could not get an investigation of his charges. At the time, Horváth said he had a “green folder” containing all the questionable cases he encountered at NAV. State prosecutor Péter Polt reportedly said that the allegations in the folder are being investigated, and a verdict on the cases in question will soon be made.

Rudas: Politics not an issue in RTL talks RTL Group never negotiated with the Hungarian government on the details of the advertisement tax, but only informed the government that the measure is discriminative and hurts competition, according to Andreas Rudas, the RTL Group executive who is said to be acting as RTL Klub CEO on a temporary basis, until Dirk Gerkens’ replacement is found. In an interview published by Hungarian online daily hvg.hu on March 17, Rudas (pictured) insisted that neither Gerkens’ position nor the content of RTL Klub’s news show were the subject of negotiations between the Hungarian government and RTL Group. “It makes me laugh when the press keeps saying how we made a pact and how we negotiated,” Rudas said in the interview. Rudas also rejected speculation that he met and negotiated with Cabinet Chief János Lázár. Rudas claimed that any negotiations that took place between the channel and the Hungarian government focused only on economic topics, and political topics were never brought up by the two parties. According to earlier press reports, Rudas and Lázár met to discuss a reduction in the advertising tax, which saw RTL on its own in the highest tax bracket. According to many reports on those meetings, RTL Group discussed a reduction of critical coverage on RTL Klub in exchange for a lower tax.

IPSOS: Fidesz stagnates, Jobbik prospers The popularity of Hungary’s ruling party Fidesz is stagnating, while that of Hungarian right-wing Jobbik is on the rise, Ipsos Media, Advertisement, Market and Opinion Research Institute said on March 17 in a survey, citing ﬁgures recorded this month. Fidesz is in ﬁrst place with 1.7 million supporters, while Jobbik lags behind only slightly with 1.5 million. Once governing, now opposition left-wing socialists (MSZP) are ranked third in popularity, with 1 million supporters, followed by former MSZP prime minister Ferenc Gyurcsány’s Democratic Coalition party, which has 300,000 supporters. Hungary’s sole green party LMP has approximately 250,000 supporters, while leftist Együtt (Together) and PM have 100,000 supporters each.

Photo: MTI/Balázs Mohai

PM Orbán says he told ministries to withdraw from Quaestor

The Árkád shopping center at Örs Vezér tér in Budapest on Saturday, March 21, and the following day, a Sunday. The scene has been repeated at shopping centers around the country since March 15, when a law requiring large retailers to close on Sundays came into effect. According to a March 23 leak published by daily Népszava, Cabinet Chief János Lázár told a private gathering that, if a referendum is held on the recently approved Sunday closure legislation, voters would reject the law. Trade union alliance LIGA and business association VOSZ are said to be among those seeking a referendum to reverse the legislation that was approved in late December. HVG: PM had tie to communist-era security Prime Minister Viktor Orbán had a formal “social connection” to the Interior Ministry’s state security department during his compulsory service with the communist-era Hungarian Army, from October 20, 1981 until his discharge in 1982, according to documents published on March 19 by Hungarian weekly HVG. This connection implies he could have been used as an informant. The document published by HVG says that Orbán’s duty was to explore crimes aimed against the Hungarian state or crimes that could hurt the Hungarian state. The document also says that Orbán was required to maintain his “social connection” until his discharge from military service. ATV, citing the state security guidebook from the communist era, earlier said that the term “social connection” referred to an individual who is “loyal to socialism and, on query or voluntarily,

informs to state security authorities”, though such a person was not deemed qualified to be a counter-intelligence officer. According to HVG, the document that it published was classified with an “A” level of security, but a hand-written signature on that document could mean that there were documents with Orbán that were classified at a higher level. The claim that Orbán was an informant for the communist authorities was first made by Lajos Simicska, the media oligarch who had a very public falling out with the prime minister earlier this year.

January average take-home pay HUF 154,500/month The average take-home pay in Hungary was HUF 154,500 per month in January, an increase of 4.1% over January of the previous year, the Hungarian Statistics Office (KSH) reported on March 20. The average gross

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News 05

Budapest Business Journal | March 27 – April 09, 2015

pay (before taxes) was HUF 235,900, which also represented a 4.1% year on year increase, KSH said. Given that the consumer price index actually fell slightly in January, it can be construed that the increase was in real wages – so the average Hungarian worker was at least about 4% better off in January than they were a year ago. “Average gross earnings were the highest in information and communication activities (HUF 461,900) and the lowest in human health and social work activities (HUF 145,300),” KSH said.

Thousands march against corruption

Standard & Poor’s Ratings Services announced on March 20 that it was increasing Hungary’s credit rating, from BB to BB+, which is an improvement but still not good enough for S&P to recommend investing in Hungarian sovereign debt. S&P also saw reason to improve its forecast for growth in Hungary. “We now expect the Hungarian economy to expand by an estimated 2.5% on average in real terms between 2015 and 2017, up from our previously published expectations of just over 2%,” the ratings company was cited as saying. Reasons that S&P gave for the improvements in the country’s outlook reportedly include Hungary’s relatively safe position with regard to external debt, the country’s consistent account surpluses over ﬁve years, a strong ﬁ nish for GDP growth in 2014, cheaper fuel prices and better-than-anticipated demand from European trading partners. Hungary’s new S&P rating of BB+ means the rating company still considers Hungarian debt to be in the so-called “junk bond” category, but according to S&P, this level is “considered highest speculative grade by market participants”. If Hungary is upgraded one grade higher, to BBB, the country’s debt would be “considered lowest investment grade by market participants”, according to S&P’s description of their ratings.

GKI-Erste: Consumer confidence worsens in March Despite improved outlook for businesses, GKI-Erste’s combined gauge of consumer and business conﬁdence edged down to -3.6 points in March from -3.2 points in February due to worsening consumer expectations, the two companies announced on March 24. The gauge revealed that the business index rose to 4.2 points from 3.5 points, while the consumer index fell to -25.8 points from -22.4 points. The gauge noted that improved assessments of domestic order stock and inventories in the industrial sector lifted conﬁdence among businesses. Sentiment in the construction sector was little changed from a month earlier, while commercial companies said sales positions and the outlook for orders worsened, according to the GKI-Erste report. The report added that Sentiment in the service sector deteriorated slightly.

Borrowers relief affects about 200,000 car leases Approximately 180,000-200,000 borrowers, who still have foreign currency denominated car leases, have been affected by the borrowers’ relief legislation approved last year and can expect to receive compensation, Hungarian Leasing Association head Gábor Lévai told Hungarian new agency MTI. The borrowers relief legislation requires lenders to compensate retail borrowers for making unilateral changes to contracts and for using exchange rate margins when calculating repayments on FX loans, MTI noted.

Photo: MTI /János Marjai

S&P: Hungary rates just below investment grade

Candles are lit at the impromptu memorial in front of the German Occupation Monument at Szabadság tér on March 23, 2015, during a flash mob event held to mark a year of protest against the controversial monument, which is dedicated to the victims of the German occupation of Hungary during WW II. Critics, who say the statue is meant to absolve Hungarians who played a role in the Holocaust, have established the counter-memorial.

Hungary could become a gas distribution center Taking into account the country’s storage capacity, Hungary could become a regional gas distribution center with its gas supplied mainly by Russia, business daily Napi Gazdaság said, citing Russian ambassador to Budapest Vladimir Nikolaevich Sergeev. In an interview with the paper, Sergeev said it would serve Hungary’s interests to establish a regional gas distribution center as this would improve security of supply. Hungary has the ﬁ fth largest capacity in the EU, with an ability to store approximately 6 billion cubic meters of gas. Sergeev suggested that a local distribution center could be ﬁ lled for the most part with Russian gas in the foreseeable future. The ambassador noted that sanctions imposed by the EU and Russian countermeasures are the main obstacle to Hungary’s exports to Russia, and he expressed hope that normal trade relations can be restored as soon as possible.

Survey: Tendency to save for retirement low in Hungary Approximately 70% of Hungarians stated their intention to put at least 5% of their income toward retirement, giving Hungarians the lowest propensity to save for retirement of the 34 countries polled, according to a survey

published by staffi ng company Randstad. Of those Hungarians surveyed, 22% claimed they were willing to save 10% of their income for retirement and just 7% said they would set aside 20%. Only 34% of the Hungarians queried agreed that saving for a pension is their own responsibility and not that of their employer’s, the lowest ratio of all countries surveyed. Approximately 47% of respondents believe that employability is their own responsibility, not that of their employer’s – also the lowest percentage among countries polled – while approximately 77% of Hungarians expect to work beyond retirement age.

Hungary’s national parkland seen at risk Hungary could lose a large portion of its protected parkland according to an amendment to be brought before Parliament, with the intent of transferring the management rights of Hungary’s national parkland to the National Land Management Agency (NFA), which could then rent or sell the land, according to daily Népszabadság. A recent amendment, under which landowners with land assets in excess of 1,200 hectares no longer have access to European Union subsidies for the portion of land exceeding the 1,200 hectares, means that national parks have lost 60% of their funding, the daily reported. The daily cited opposition MP Benedek R. Sallai (LMP) as saying that the latest development is at odds with European Union norms in which the ratio

of protected national parkland is increasing in the EU while in Hungary it is decreasing. Sallai referred to Hortobágy National Park in his argument saying that, of the park’s 60,000 hectares, only 1,000 hectares will remain under the park’s management, areas in which EU-funded nature conservation developments are currently in progress.

Fidelitas launches ‘Provocateur Observer’ group The youth association of Hungary’s ruling party Fidesz, Fidelitas, has launched a new team called “Provocateur Observer” in order to compile lists of all those “leftist provocateurs” who try to “ruin others’ events”, Hungarian online daily origo.hu reported. The team said it was inspired by the “happenings of March 15” when a dozen pro- and anti-Fidesz individuals got into a ﬁght prior to a speech by Prime Minister Viktor Orbán. The team had established a Facebook page, where they listed people they claim to be associates of opposition parties disguising themselves as “civilians”, but apparently it was taken down. The youth association of opposition party Együtt, called Y-gen, ﬁ led an official report against an unknown individual for abusing personal data, the party reported. Since then, the Fidelitas’ Facebook page, which had more than 300 followers, became unavailable. Fidelitas did not respond to the BBJ’s query on the disappearance of its Facebook page.

BBJ

2Business Smartwings plans new routes from Budapest and Debrecen Czech airline Smartwings is set to launch seven new flights from Hungary this summer, Airline Route announced March 23. Beginning in June, Smartwings will schedule weekly flights from Budapest to Rhodes, Corfu, Palma de Mallorca, Zakynthos, Kos and Heraklion â€“ and from the end of June, it will add weekly flights between Debrecen, in eastern Hungary, and Heraklion, the company said.

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2 Business

Budapest Business Journal | March 27 – April 09, 2015

NEWS

Richter board proposes HUF 33 per share dividend Hungarian drugmaker Gedeon Richter on March 24 said its board would propose the payment of a HUF 33 per share dividend on 2014 earnings to shareholders at its annual meeting to be held on April 28, Hungarian news agency MTI reported. According to MTI’s calculations the dividend fund is expected to reach approximately HUF 6.2 bln, in accordance with the company’s practice of returning one-fourth of after-tax proﬁt to shareholders. The news agency noted that last year, Richter shareholders approved a HUF 57 per share dividend on 2013 earnings.

EY Hungary to add 100 workers EY is expanding in Hungary in the coming fiscal year and is expected to increase headcount by 100. The new hires will also have the opportunity to work abroad in the future at the various international EY offices, the company said in a press release. Currently, EY employs more than 600 people in Hungary and focuses mainly on recruiting fresh graduates with economic or legal qualifications. Initial selections will take place this summer with work beginning in the fall. “Career starters entering our firm have the opportunity to acquire all the knowledge they need to get on in a competitive environment, and learn how to serve high caliber clients,” EY’s HR chief Dóra Debreczeni said. “They can also access opportunities at our offices abroad, where they can acquire valuable international professional and practical experiences, that can be applied when they return to Hungary,” she added.

Czech company to buy Nestlé’s Hungarian mineral water unit Czech Karlovarske Mineralni Vody (KMV) is planning to buy Hungarian mineral water producer Kékkúti, currently owned by Nestlé Waters, which is part of the Nestlé group, Kékkúti (also known as Theodora) told Hungarian news agency MTI. Nestlé Hungária, also owned by the Nestlé group, will not be affected by the transaction, the news agency said. KMV said it will keep on the existing 110 employees. According to Kékkúti, KMV is the largest mineral water bottler in the region, and its entering the Hungarian market promises further investment. MTI noted that Kékkúti is one of Hungary’s largest mineral water companies and reported HUF 1.11 billion in losses on revenue of HUF 5.04 bln in 2013. KMV, is present in the Czech Republic, Slovakia, Austria, Germany, Poland and Ukraine, with a total headcount of 750.

Air China to relaunch Budapest-Beijing direct flights State-owned Air China is scheduled to relaunch direct flights between Beijing and Budapest as of May 1, with Airbus A330 planes flying between the two capitals four times a week, Hungarian foreign minister Péter Szijjártó said at a press conference on March 16. The flights from Beijing are planned to make a short stop in Minsk, Belarus, but there will be no stopover on the return flight from Budapest, the minister added. Hungarian news agency MTI noted that there

has not been a direct air connection between the two cities since March 2012, when Chinese airline Hainan discontinued its scheduled Budapest-Beijing ﬂight operated under a codesharing agreement with the then-grounded Hungarian national carrier Malév. Air China has 523 aircraft in service, which travel to 326 destinations all around the world. The airline has direct ﬂights from China to 14 cities in Europe. In 2013, Air China had revenues of $15 billion and carried 78 million passengers, according to MTI.

P+P completes HUF 3 bln expansion German-owned automotive industry supplier Poppe+Potthoff (P+P) Hungária has completed a HUF 3 billion expansion at its plant in Ajka in northwestern Hungary, managing director László Gellen told Hungarian news agency MTI on March 23. P+P won a HUF 622 million European Union grant for the project, which increased capacity at its plant, introduced new technology and was used to purchase production equipment. The investment also created ten new jobs, bringing headcount to 420. P+P supplies parts to Daimler, BMW, Renault, Caterpillar, Delphi and Cummins.

Lufthansa group performs better in Hungary Germany’s Lufthansa Group saw passenger numbers rise on the Hungarian market by 11% last year to 1.1 million, and also experienced a rise in ticket sales in Hungary of 2.4%, Lufthansa’s representative Gábor Antal said on March 17. Of the group’s four airlines – Lufthansa, Swiss, Austrian and Brussels Airlines – the latter saw the greatest rise in passenger numbers at 34% following a reorganization of ﬂights. Brussels Airlines’ load factor also improved from 64% to 79% as a result.

Ayudate builds HUF 1 bln optical cable network Ayudate Investment Group is building a HUF 1 bln optical cable network as part of infrastructure that will provide broadband internet to approximately 4,000 households in small communities around Pécs in southwestern Hungary, Távnet announced on March 18. The project is supported with a European Union grant amounting to 70% of costs, and it is expected to be completed by the fall. The company’s business strategy focuses primarily on investment and project management in the energy, ICT, infrastructure and agriculture sectors, Hungarian news agency MTI added.

Viessmann winds up HUF 230 mln expansion at Bátonyterenye plant Viessmann announced that it had completed a HUF 230 million expansion at its plant in Bátonyterenye in northeastern Hungary, state news agency MTI reported. The unit manufactures accessories for model railways and has been in operation since 1992. The company won HUF 88 mln in EU grants for the project. Viessmann had after-tax proﬁt of HUF 22.6 mln on sales revenue of HUF 912 mln in 2013, according to its records, and it paid dividends of HUF 4.2 mln in that year.

EXPERT OPINION

SUPERVISION RIGHTS OF THE EMPLOYER – TO WHAT EXTENT IS “SPYING ON” EMPLOYEES BY ELECTRONIC MEANS PERMISSIBLE? Dr. Bíborka Jójárt Head of corporate M&A department NOERR & PARTNERS LAW OFFICE

It has always gone without saying that an employer may supervise its employees within the scope of their employment relationship. However, such supervision and monitoring cannot be without limits. The rights of the employer are limited by employees’ right to private life and human dignity. But how do things look in practice? 1. EMPLOYERS’ RIGHTS VS. EMPLOYEES’ RIGHTS By law, an employer is authorized to check its employees’ behaviour pertaining to their employment and may never supervise its employees’ performance or work related behavior which could be detrimental to the employees’ rights to private life and human dignity. The employer may not examine the private life of its employees. Employees’ personal rights may only be restricted if this is deemed strictly necessary for reasons directly related to the intended purpose of the employment relationship and is reasonable for achieving such purpose. 1.1 Legal framework The general framework for the monitoring of employees is defined by the Hungarian Labour Code, the Data Protection Act and the Act on Security Services and the Activities of Private Investigators in addition to the direct effect of certain parts of the EU Data Protection Directive. These pieces of legislation only establish the basic principles for the supervision, however, and the actual content of such monitoring has to be specifically defined by the employers in guidelines or employment agreements. 1.2 Supervising authorities and applicable sanctions The National Authority for Data Protection and Freedom of Information (DPA) and the National Labor Authority supervises employers’ practices to ensure compliance with all regulations concerning the electronic monitoring of employees. The authorities may impose penalties, including fines which can range from HUF 100,000 to HUF 10 million in the case of the DPA; and labor authorities may take between HUF 30,000 and HUF 10 mln. In addition, employers may be liable for prosecution under civil law (sanctions imposed regardless of culpability, restitution or damages) or even under criminal law in the capacity as legal entities. 1.3 Principles The principles of the supervision are as follows: the employer may only monitor its employees within the scope of the employment relationship and has to apply the necessity and

proportionality test (i.e. employees’ personal rights may only be limited by the employer such as is necessary for the employer to achieve its objectives and only to the extent required for this purpose). The employees must be notified prior to the monitoring, and data collected by the employer in the course of such monitoring must be in line with the provisions of the Data Protection Act. 2. AN EXAMPLE SUPERVISION

ELECTRONIC

2.1 Use of cameras DPA’s most recent opinion is reflected in its protocol published on the basic principles of electronic supervision used in the workplace (Protocol). Under the Protocol, an employer may specifically use camera systems to pursue the following objectives: Protecting human life, personal integrity and personal freedom, guarding dangerous materials, protecting business, salary, banking and security secrets, safeguarding places such as assembly facilities with expensive equipment, or guarding raw materials or other valuables in warehouses and adjacent corridors. The Protocol states that employers may not install cameras so that only one employee is observed unless the purpose is to influence the behavior of the employees (e.g., to enhance the speed of their work or stop employees talking whilst working). Nor may any cameras be installed in premises where this would be against the dignity of the employees, e.g. in baths, changing rooms, medical rooms or places where they spend their breaks). However, cameras may be installed and operated in all places at times when legally no one is required to be at present (e.g. after working hours or on weekends). In addition, signs indicating the use of CCTV have to be put up in places where cameras are in use. Employers may keep recordings for three business days and this period may be extended on justified grounds for 30 or a maximum of 60 days. The use of cameras has to be reported to DPA and the employer must be registered in the data protection registry. 3. SOLUTIONS In order for an employer to avoid any breach of the provisions detailed above as well as any resultant penalties, employees must be informed of the electronic surveillance system. Typically, by adopting a policy that sets out the purpose of the monitoring, the persons processing the records and employees’ rights with regard to the handling and processing of surveillance information, employers are able to strike a balance for both sides that enables them to have their cake and eat it too.

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08 2Business

Budapest Business Journal | March 27 – April 09, 2015

Building bridges from Hungary to Mexico Magyar−Mexican trade is growing, thanks in part to diplomatic efforts and a common interest in the automotive business. DIANA SEFTON

When foreign minister Péter Szijjártó announced in early March that Hungary would begin an “Opening to the South” – a diplomatic push to increase business with African and Latin America – Mexico was already a leading partner. Hungary does more trade with Mexico than any other country in Latin America, and the pace of exchange between the two countries continues to grow. “There exists a great potential between these countries,” says Gábor Markocsány, Secretary of Commercial Matters, Investments and Technology Cooperation at the Hungarian Embassy in Mexico City. “Both have a lot of development experience that can be useful for one another in order to organize production and support industrial development. Both countries have a lot to contribute to one another.” Szijjártó’s March visit to Mexico helped spur the opening of the Hungarian− Mexican Business Council, a chamber of commerce in Mexico City. Discussion of trade between the two countries that began in March is to continue at the second round of the Trade Commission Business Forum, to be held in Mexico City on April 27. On March 18−20, Gretta Shelley Medina, Commercial Counselor ProMéxico, visited Budapest to prepare for the forum. The Hungarian Embassy in Mexico expects 50−60 companies from both countries to attend. “This is where we will visualize every area and every problem and strengthen our relations,” says Mexican Ambassador to Hungary Isabel B. Téllez de Ortega, adding that the meeting of the business council and the opening of the trade agency “have been coming since last year, to push everything forward. This will be a good year for cooperation.” Last year wasn’t bad. In 2014, total trade between the countries was valued at $1.17 billion, with a compounded annual growth rate of 16.4% since 2000. Under the current Fidesz government, which came to power in 2010, cooperation between Hungary and Mexico has been growing at a rapid clip. The total value of commerce doubled between the years 2010 and 2013, according to INEGI, Mexico’s statistical institute.

Community estimated at 500 Along with Mexican businesses, Hungary also hosts its share of Mexicans, and roughly 500 expats from the country live here, according to an estimate by the Mexican Embassy. “There is a decent−sized community of Mexicans here in Budapest,” says Daniela Hernandez, who has a Hungarian mother a Mexican father and long contact with both countries. A choreographer and

Mexican Ambassador to Hungary Isabel B. Téllez de Ortega.

Hungary and Mexico “have a lot of development experience that can be useful for one another in order to organize production and support industrial development”.

Daniela Hernandez: Dancing, cooking and fronting for fronton. professional performer in Mexico, here in Hungary Hernandez has worked on TV, as a talent judge on a dance show and a host of her own cooking show, as well as organizing several dance performances and other cultural events. She is also working on a project to bring the racket− ball−like game fronton (also called karizma) to Budapest, at courts located on Margaret Island. Her partner in that effort, Tonatiuh de la Parra, decided a couple of years ago to bring the game, which is popular in Mexico, from his home country to Budapest. The Hungarian capital’s Mexican community is tight−knit, according to Hernandez. “We celebrate September 15 with a national party each year,” she says. “We have food from Tacos Locos, and mariachis come from Croatia to perform.” Hernandez maintains that Hungary and Mexico make a natural pairing: “We have many things in common, such as our love of chili and spicy flavors, parties

and of course the colors of our flags.” On top of these commonalities, Mexico and Hungary also share a heavy involvement in the automotive industry. At the end of 2014, Mexico was the seventh largest producer of vehicles in the world. Meanwhile, in Hungary, the bustling car business accounts for roughly one fifth of the country’s production and one fifth of its exports. As a result of the importance of cars to both economies, much of their trade is in the area of automotive components. According to government statistics, more than 40% of the goods exported by Hungary to Mexico during 2013 and 2014 were categorized as mechanical and machine parts, valued at $274 million and $312 mln respectively. Automobiles and auto parts comprise the category of Hungarian exports to Mexico that increased most between 2013 and 2014, growing by 88.4%, from $92.8 mln to $174.8 mln in value. The trade in mechanical and machine parts goes both ways, as this category accounted for nearly 70% of the total value of goods imported from Mexico to Hungary in 2014. Steel, iron and other manufactured foundry goods experienced the greatest increase in value of exports between 2013 and 2014, rising from $1.6 mln to $7.3 mln, a growth of more than 350%.

Nemak a major presence A lot of this growth came through Nemak, part of Grupo Alfa, which is a worldwide leader in the production of aluminum components for the automotive industry, with reported revenues of $4.3 bln last year, more than 20,000 employees and a presence in 14 countries. In January 2015, Nemak announced a strategic cooperation

with the Hungarian government, as it extended educational and technical programs to the employees of its cylinder−head manufacturing plant in Győr. The factory in northeastern Hungary is Nemak’s largest in Europe, with around 1,000 employees producing three million units annually and reporting revenues of €105 mln in 2013, according to Nemak’s managing director David Toth. The company received a HUF 406 mln subsidy from the Hungarian government to expand the plant in August, creating an additional 100 jobs. Nemak is also creating jobs among partner firms. Polish automotive industry supplier Alumetal launched the construction of a €28.5 mln plant in Komárom in northwestern Hungary in October. That factory, which is to employ 150 people when it opens in 2017, is being built to provide Nemak with aluminum. Meanwhile, Nemak is reportedly planning to develop educational programs together with Miskolc University in northeastern Hungary, in order to increase the available supply of local engineers for its plant. But there’s more to the Magyar− Mexican cooperation than cars. Cemex a Mexican−based world leader in concrete production with reported net sales of $15.2 bln in 2013 and a presence in more than 50 countries, says 26% of its business comes from Europe. Cemex is very active in Hungary, and in February 2014 it announced its participation in the renovation of the historic Kossuth Lajos Plaza surrounding the Parliament building in Budapest. Hungarian companies also have important dealings in Mexico; the Hungarian pharmaceutical producer Richter Gedeon Nyrt., for example, acquired a 70% stake in Mexico−based marketing partner DNA Pharmaceuticals S.A. in December 2013, and has announced plans to eventually acquire the remaining 30%. Overall, Hungary sells more to Mexico than it buys from there. The trade balance during January to October 2014 was roughly $330 mln in Hungary’s favor. Exports to Mexico have grown around 30% per year on average between 2000 and 2013, while imports from Mexico have grown at an average pace of 19% each year. Currently, the Hungarian Embassy in Mexico is undertaking initiatives to support and encourage participation by small− and medium−sized companies. “It is important to provide or support their entry into these markets,” says Markocsány. Through the establishment of the business council and the hosting of the Trade Commission Business Forum, officials say they can help Mexican and Hungarian companies exchange knowledge, experience, technology and experts, by bringing them closer together. “We are working on creating a bridge for small and medium businesses to jump the obstacles,” says Markocsány “We would like to ... support first encounters between Mexican and Hungarian actors.”

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2 Business

Budapest Business Journal | March 27 – April 09, 2015

M&A activity picks up in 2014 Hungarian transaction sector

USD Billion

Estimated sector size

CHRISTIAN KESZTHELYI

While activity has not yet reached pre− crisis levels, mergers and acquisitions in Hungary seem to be regaining steam; M&A grew 12% in volume last year, making this the fifth most active of 11 countries in the region in 2014, transaction and advisory services firm EY Hungary said during the March 19 presentation of the findings of its annual M&A Barometer. The 102 M&A deals made in Hungary Margaret Dezse of EY Hungary: ‘We in 2014 represented a 12% increase on believe the reason for a healthy deal flow the previous year, EY said, adding that is the existence of larger strategic deals in the value of those deals grew from $1.27 the country and the region.’ billion to $1.49 bln, an increase of 18% in a year. This is still far from the value reached in 2010, when the 90 M&A deals their businesses to domestic investors. An recorded in Hungary were worth a total acquisition is usually beneficial for both of $2.5 bln. the seller and the buyer and the main According to EY, domestic transactions goal of each party is to create value in were the most important, the end. The interest of accounting for 61% of foreign investors shows Hungary’s M&A activity not only their trust in “We see financial the target companies but in 2014, as compared to investors looking for also the macroeconomic 59% in 2013. Of the foreign partners, most came from which bolt-on acquisitions environment, the United States, Germany increases confidence and the UK. As for sectors, in the CEE region to in the economy. IT was the dominant Additionally, the area for M&A activity, mitigate their existing activities of the EU’s accounting for 33% of the funds create exposure to Russia JEREMIE deals in Hungary last year, opportunities for EY reported. Hungarian SMEs to enter and Ukraine.” To find out what international markets these numbers mean in and become visible to practice, the Budapest Business Journal global clients, therefore creating further spoke with Margaret Dezse, partner and jobs in Hungary. head of Transaction Advisory Services at EY Hungary. M&A, despite its growth, is still below pre−crisis There has been a positive levels. Do you see a chance trend in M&A in Hungary to outperform those figures in the since 2012. What does this upcoming years? A: Indeed, we do see a positive trend, mean for the Hungarian economy? A: M&A activity does not necessarily but continued growth depends not only have a direct relationship with the on the Hungarian economy, but also the overall performance of a particular global economy. Nevertheless, in 2015, economy. However, where there are assuming that foreign investors continue willing buyers and sellers there is a to invest in the country and considering market, and thus a positive impact that 2015 is the last year for JEREMIE on the economy. As such, usually an funds to invest their resources, there may increase in appetite for acquisitions be a further increase in the number of reflects that the owners/managers have transactions in Hungary in 2015. In the mid−term, the presence and a positive outlook for the future. One can draw a number of conclusions relatively high number of financial from the numbers. For example, the investors among the acquirers may lead to increasing proportion of local deals further waves of transactions. Moreover, may reflect that there is an increasing transactions related to the retirement of volume of capital within the country, the first wave of Hungarian entrepreneurs thus impetus for growth and acquisitions. may also lead to a further wave of M&A. On the other hand, a number of Western However, it is difficult to estimate companies have also decided to focus on whether, or when, M&A activity will reach their core, home markets and have sold pre−crisis levels over the coming years.

Number of transactions

120

2,5

100

1,5

0,5

2010

2011

2012

The Hungarian state and state−owned companies were important players in last year’s M&A deals. How significant was their effect to the country’s overall performance? A: Our Barometer excludes M&A transactions that are directly or indirectly related to the Hungarian government. These deals are low in number and generally do not directly impact or relate to the trends of the private−to−private M&A market or the country’s overall performance.

Most of the M&A activity seems to be in the IT sector. Is this a case of foreigners snapping up local startups, or do you see other factors driving this? A: Mainly other factors. We see that the IT deals represent a healthy mix of various types of M&A transactions. It includes local JEREMIE as well as other types of local financial investors investing in to local businesses, foreign Private Equity making their first investment into the entire CEE region, and foreign global startup success stories acquiring Hungarian companies. We may look at these deals from the sellers’ perspective also: sellers include local entrepreneurs, JEREMIE funds and the companies themselves (issuing new shares), some of which were already backed by JEREMIE funds. All the buyer groups have different motivations, naturally. We believe the reason

2013

2014

Number of transactions

Consultancy EY notes an increase in mergers and acquisitions in Hungary. We asked Margaret Dezse, partner and head of transaction advisory services at EY Hungary, to explain what it all means.

for a healthy deal flow is the existence of larger strategic deals in the country and the region, which raises the confidence of private equity investors to support local companies. Their increased investment appetite lays the ground for venture funds to make even earlier bets on some of the local prospects and try to work with them to take them to international playing grounds.

What makes Hungary an attractive place for a foreign firm to invest in? A: Foreign investors consider various factors prior to making a decision on investing abroad. One such is that they would like to enter or enhance their presence in the Central and Eastern European market and Hungary fits in this strategy if there is a good and valuable asset to acquire. Also, we see financial investors looking for bolt−on acquisitions in the CEE region to mitigate their existing exposure to Russia and Ukraine, and Hungary represents a good match for this strategy. Another valuable aspect that makes Hungary and Hungarian companies attractive for investors is the talent available in the country. For example Hungary has high−quality engineering education not only in Budapest but in the countryside as well, which definitely drives the enhanced interest in IT and technology based companies. The cost of Hungarian engineers is still below Western European and U.S. salary levels, which is an important consideration for investors.

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Budapest Business Journal | March 27 – April 09, 2015

EXPERT OPINION

Formula 1 of Energy Industry Balázs Zempléni Director of Wholesale and Business Development MET POWER HUNGARY LLC

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

hat does it take to win the Formula 1 championship? A perfect composition of professionals, strategy, dynamic teamwork, IT background and continuous innovation of cutting edge technology that increases speed, efficiency, reliability and the ability of immediate reaction. It’s no different in the energy sector, other than a bit less fanfare when victories are won.

Much has changed within the energy industry like that of Formula 1. In Formula 1 most of the speedways have been existing for a long time with relatively small modifications, while the championship renews year by year. The racecars were constructed by using the best available technology fulfilling the actual regulations, so there are significant differences and the Formula 1 cars have also seen countless changes over the past decades. The tracks have remained pretty much the same; but cars have become more efficient and effective at increasing more horsepower and transferring that to torque and to jaw dropping lap times. The Energy Sector has also had to adapt. Thanks to the innovation, a new generation of power facilities has joined the “race” competing on the long-time existing “speedways”, that we call the power grid. The major difference in comparing to Formula 1 is that not only are the newest facilities attending the race, but power facilities that are 30 years or even older are still unavoidable components. And now there is a new team on the starting grid… Why is the Power Sector Special? Similarly to other strategic segments of the global energy sector such as oil and gas, efficiency, reliability, sustainability and security of supply are still the main priorities for daily life to go as we know it. What makes the power business unique today is that it is still unsolved on how to store power in an industrial size in an efficient and cost-effective way. So power needs to be produced as it is consumed. In the power systems of today the producer (power plant) is systemwise far from the customer, the participants do not see each other in real time. That leads to inefficiencies in production, in consumption and eventually in the power system balancing. David vs. Goliath As a solution: producers, consumers, traders and IT experts formed a dynamic and innovative team rethinking the power system and integrated power plants and consumers into a smart grid based system. The solution is managed by solid IT technology with real time production and consumption management connected to diverse power market segments, like power exchanges or system balancing services.

The smart grid is capable of integrating diverse power plants geographically and in technology such as: hydro, biogas, biomass or gas fired heat and power plants of schools, hospitals or district heating plants that are remotely controlled every second of the day by an innovative software solution.

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V4 and Germany meet in Bratislava

What does this mean to you? It forms a virtual power plant that works in real time with the aim to balance production with consumption needs, keeping the equilibrium that returns more efficiency and lower CO2 emission. Similarly to the telemetry in F1 a smart grid dispatching center with 100% availability continuously collects and analyzes thousands of data sets to control the system balance. In case of malfunction, like in Formula 1 there is a “pit team” monitoring every input so the system can make adjustments immediately, thus avoiding a major problem. Why is it the winning combination? The smart grid solution allows for what industry experts call a demand side management (DSM), which means that consumption is not only monitored, but if technology allows, controlled by a smart grid to help the system balance. By creating this value, consumers may drastically decrease their electricity bill which equals decreased financial demands on you. For example: imagine you let the smart grid use your electric car’s battery as power storage charging and discharging when there is a system demand. At the end of the day you don’t pay for your fuel but earn money while charging your car. On a large scale, industrial plants may also decrease their electricity bill by adjusting their demand. This again equals saved money for the end user. The smart grid system can be considered as a sub-system in the power system, where its connected elements, such numerous and decentralized small power plants and consumers, behave as one single unit, a one single virtual power plant competing successfully against the huge old power plants in the electricity system. With the appearance of small power plants via virtual power plants on the Hungarian market, the price of some products has decreased by as much as 60-70%. And the overall balanced budget of the system operator was reduced by half in the last two years. This shows that David is winning over Goliath. So support the underdog, and realize that technology not only wins races, but saves you money. Like Formula 1, races have expanded from local races to a large scale. So has the European power market. Energy is now thought of as a regional energy market, rather a local state market. This allows the smart grid solution to integrate and optimize the supply and demand as well as to provide system balancing services at the regional level. We are not far from the situation where the small power and heat supplier of your block house in Budapest will help to maintain the power system balance of Berlin. Unlike in Formula 1, the competition in power management lasts 365 days a year 24/7. Are you ready to win the race with us? We are! hupower.MET.com

Photo: MTI/Csaba Krizsán

Hungarian foreign minister Péter Szijjártó, sitting next to German counterpart Frank-Walter Steinmeier in Bratislava on March 23, addresses a meeting that includes Germany and the Visegrád 4 countries – Hungary, Czech Republic, Poland and Slovakia. Szijjártó noted how cooperation with Germany has already driven growth among the V4 and said it would continue to do so. Along with cooperation, the meeting also addressed the issue of regional energy security.

Fitch affirms Slovakia at ‘A+’ Fitch Ratings has affirmed Slovakia’s Longterm foreign and local currency Issuer Default Ratings at ‘A+’, according to reports on March 23. The outlooks are stable. Fitch said the rating is constrained by relatively high gross domestic product (GDP) volatility, which reﬂects sector and market concentration and Slovakia’s high trade openness. Real GDP grew 2.4% in 2014, driven primarily by domestic demand. Fitch forecasts growth will accelerate to 3.0% by 2016 as domestic demand expands and European economies gradually strengthen. After a steep rise in recent years, Fitch forecasts government debt will stabilize at around 55% of GDP, although upward pressures persist.

Cameron wants to revive Thatcher plan to protect region UK Prime Minister David Cameron has revived a program fi rst introduced by Margaret Thatcher to strengthen governance in Eastern Europe and help countries stand up to the threat of Russian dominance, Bloomberg reported on March 19. A £5 million ($7.35 mln) fund already being used to help build institutions in Ukraine will be extended with a further £15 mln to support democracy in Moldova, Georgia, Bosnia-Herzegovina and Serbia, Bloomberg reported citing British officials. The model for the program is Thatcher’s ‘Know-How Fund’, set up in 1989 and used to help develop institutions, governance and economies in countries that had been in the Soviet Union’s sphere of influence, including Poland, Hungary and Czechoslovakia, said the officials, who asked not to be identified because the discussions were private.

Lithuania industrial production rises sharply in February Lithuania’s industrial production climbed a working-day-adjusted 5.1% year-over-year in February, Vilnius-based Statistics Lithuania said in a statement on March 23. On an unadjusted basis, industrial production rose 5.6%. Production in the manufacturing sector grew 6.9% in from the previous year, while mining and quarrying output plunged 12.4%.

Slovenia industrial production rises in January Slovenia’s industrial production increased at the beginning of the year, preliminary ﬁgures from the Slovene Statistical Office showed on March 23. Industrial production climbed 4.1% month-on-month in January. Production in the manufacturing sector grew 2.6% monthly in January and mining and quarrying output jumped by 18.5%. On an annual basis, industrial production surged 8.8% in January.

Lithuania votes to bring back military conscription Military conscription is due to return in Lithuania after the country’s legislature voted 112-3 in favor on March 19, apparently prompted by fears about the steadily growing crisis in neighboring Ukraine, according to Deutsche Presse-Agentur. The proposal, put forward by the country’s Security Council, would require that between 3,000 and 3,500 young men receive nine months of basic training each year for the next ﬁve years, the news agency reported. Lithuania, a strong critic of Russia’s intrusions in Ukraine has demanded a stronger Nato presence in the Baltics.

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3Special Report Lighter carbon footprint, bigger bankroll

SMEs see need for logistics software 16

MOVING INTO THE FUTURE

Logistics and supply chain management are becoming more sophisticated, and more environmentally friendly, here in Hungary. But the country still lags behind its neighbors in logistics center development.

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Budapest Business Journal | March 27 – April 09, 2015

Green logistics puts green in the bank Efficient logistics practices that are good for the environment can also save a company money. We look at approaches that firms in Hungary use to help the planet, and themselves.

has achieved “a CO2 efficiency of 70.6 kg/tonne for 2013 and an 18% improvement since 2010,” and adds: “We achieved this by implementing smarter distribution networks and filling up vehicles efficiently.”

Ekol’s watery shortcut

BBJ STAFF

When it comes to logistics practices, environmental−awareness makes good business sense. If a company’s supply chain is more efficient, it will reduce financial waste as well as emissions of carbon dioxide and other greenhouse gasses. “We estimate that, at a global level, our transport and distribution systems emit a similar proportion of CO2 emissions from energy as our manufacturing operations,” says Beáta Vince, communications manager, CEE, with Unilever in Hungary. Here we look at efforts to efficiently maintain logistics by various firms in Hungary with differing levels of logistical needs – a telecom, a consumer goods company, and a logistical firms.

Unilever’s Beáta Vince.

Telenor’s Dr. Márk Erdélyi.

Supply chain audits at Telenor Telenor Hungary, the local office of the global telecom company, has strict environmental standards, with which its partners must comply. As Telenor Hungary legal & assurance director Dr.

“We estimate that, at a global level, our transport and distribution systems emit a similar proportion of CO2 emissions from energy as our manufacturing operations.” Márk Erdélyi explains, Telenor ensures that its logistics is conducted in a more sustainable manner through audits before and after suppliers are contracted. “Pre−assessment of suppliers is made by sourcing,” says Erdélyi. “An environmental check is a part of supplier evaluation during tender processes. Besides compliance with ethical standards, environmental sustainability criteria are also considered in procurement under our new sustainable sourcing system deployed in 2010.” Once a supplier is hired, he says, Telenor’s supply chain sustainability team monitors their performance. “Telenor asks about 20% of its suppliers to fill in a self−assessment questionnaire via e−mail every year as a preliminary risk assessment,” Erdélyi says. “With this document, companies evaluate their operation and performance.” In addition to these self−assessments, Telenor’s team also regularly conducts

A train-load’s worth of Ekol containers sets sail. comprehensive reviews of the suppliers, to assess their efficiency, management and environmental performance, according to Erdélyi. He adds that the effort has resulted in improvements among the 12 suppliers that Telenor Hungary was able to assess in 2013.

Unilever’s internal transport management Although it does not have its own vehicle fleet, Unilever Hungary, the local office of the massive consumer goods company, does a fair amount of shipping through subcontractors. According to Unilever spokeswoman Beata Vince, the local office is committed to the corporate strategy for cutting carbon dioxide emissions. “Unilever has committed to ensuring that its CO2 emissions from its global logistics network will be at or below 2010 levels by 2020 – despite the significantly higher production volumes that will be generated as the company grows. This will represent a 40% improvement in CO2

efficiency,” says Vince. She explains that Unilver relies on its own internal transport management organization, called UltraLogistik. “UltraLogistik finds the most efficient ways to move raw materials and packaging to our factories and then transport finished goods to around 100 warehouses in Europe. In total, the hub system promises to reduce total distance travelled by 175 million km in Europe alone from 2013 to 2015 (compared to 2010 levels),” Vince explains. Techniques for reducing Unilver’s carbon footprint include improving “loadfill”, so that each truck carries its maximum possible load, reorganization and optimization of freight shipping, and training for truck drivers. Another helpful practice the firm uses in Hungary is “backhauling”, in which Unilever uses other company’s trucks as they make their return trip, when they would normally be empty, Vince says Thus far, Unilever Hungary is meeting its targets for CO2 reduction, according to Vince. She says the firm

Ekol is a major shipping and logistics firm that is based in Turkey but is growing its presence here. It says that its secret to efficiency is to employ multimodal transport, including ships and land transport. In Ekol’s cargo transport from Turkey, which often involves shipments that have come overland from various points in Asia and are headed to Europe, the shipping containers are transported together as a single “block train”, according to Ákos Kovács, EKOL’s country manager for Hungary. Although they are hauled together, the shipping containers change modes of transport, from ship to train, he explains. “The transport route, which initially went from Istanbul over the Balkan countries to Mannheim (Germany) is now changed for a route between Mannheim and Trieste (Italy) due to route, time and security concerns. In this route, which has never been used in Europe before, the first trip took place at the Mannheim Dusbahnhof Terminal on October 17, 2008,” says Kovács. Trucks going from Turkey to Germany used to travel along 7,000 km of roads, facing delays at borders and other problems. Now shipping containers sail from Istanbul to Italy, and are then put on one single “block train” that takes them to the Mannheim Dusbahnhof Terminal, after travelling only 2,000 km overland. Given that Ekol is now doing 18 “block train” runs, or 36 round trips, a week, rather than sending a fleet of trucks, the savings really add up. “Considering the 2014 figures on intermodal transportation, we saved 42 million liters of diesel fuel consumption and reduced carbon dioxide emission by more than 69 million kilograms,” says Kovács.

BCSDH offers assistance Telenor and Unilever are members of BCSDH, a local non-governmental organization that seeks to help businesses reduce their carbon footprint, with logistics improvements and other means. BCSDH has gathered support from local corporate giants, getting them to sign up to an agreement that commits them to reducing the strain they put on the environment. Through their “Action 2020 Hungary” program, BCSDH seeks to help address sustainability challenges in the areas of food and feed, employment, sustainable lifestyles, climate change and water. This is part of a global initiative to achieve real environmental progress in these and other areas by 2020. For more information, see http://bcsdh.hu.

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Budapest Business Journal | March 27 – April 09, 2015

EXPERT OPINION

Railway summits at Rail Cargo Hungaria As the lone profitable freight railway firm in the region involved in handling smaller shipping orders, Rail Cargo Hungaria is sharing best practices.

Dr. Imre Kovács RAIL CARGO HUNGARIA CEO

Great risks on the routes to market Groupage operation is the costliest railroad activity. Attaching a wagonload of goods to a train requires that the engine must pull from the industrial track to a freight station where the shunting locomotive includes it among other wagons of the train in the order of the destination stations, repeating the same procedure when destination is reached. Eastern European national companies in crisis face more and more difficulty in tackling the technical, personnel and operational track usage costs related to shunting. Previously, this activity had been supported by the state budget, but this support was phased out during the crisis years and competition rules of the European Union have also put the reins on such subsidies. Raising the necessary funds could gain a lot from revenues from block train traffic which operate with substantially lower specific costs and are therefore more profitable; however, the competitive private railroads are more effective on this market. And then, often the truck companies can make better offers than railroads, while they pollute the environment and increase congestion on public roads to much larger extents.

Several attempts have been made to finance rail freight companies in Eastern Europe, but most of them were unsuccessful: privatisation of the Romanian CFR Marfa ended with a scandal, while the severely loss-making Bulgarian BDZ is on the verge of privatisation of questionable efficiency. The Croatian HZ never reached this phase of privatisation; capital raising has run upon the rocks of various political considerations. The Czech CD Cargo is in competition with the Polish PKP Cargo, while more and more private railroad players have challenged its traditional markets. The Turkish railways are also complaining about inefficient operation and excessive capacity maintenance costs. The Hungarian (rail)way The only stable company in the Eastern European region with long-term success is Rail Cargo Hungaria which was capable of taking the measures necessary for a competitive operation without using tax money in the last five years. After privatisation, relying on the assets and professional background of the Austrian Rail Cargo Austria, it adjusted its scale to the size of demand, it automated its cargo handling processes, implemented the most advanced railway information system in Europe, renovated its wagons and developed a modern engine fleet.

Of course, all this did require billions in investments, as well as thorough reorganisation, continuous staff training and conversion training. As a result of the constant and patient developments, single wagonload traffic in Hungary has become smooth, and Hungarian small and medium enterprises need not worry about delivering their goods safely and affordably to their users.

On-going negotiations In addition to passing down the Hungarian experiences, opportunities for intensifying collaboration have also been discussed between the seven railway leaders who visited Budapest and Hungarian experts, who also manage the Rail Cargo Carrier companies which are already operating in most of these countries. Carrier companies operating in states in this region are directed from Budding Turkish connections Budapest, which offers them insight into An especially active collaboration has the local market conditions and challenges. been commenced with the freight Their experiences have shown that close division of TCDD. During his stay in cooperation can help each partner Hungary, the Turkish railway leader in cutting its costs, improving freight visited the BILK and GySEV Sopron transport times, or, put more succinctly, terminal, finding that they can become increasing competitiveness. This also perfect logistical bases for Turkish rail permits adjustment of capacities to market freight transport to Western Europe, demands, while avoiding maintaining any especially when it comes to crane- redundant infrastructure and staff. operated road-railers and containers. Hungarian experts would gladly Currently the rail freight axis connecting share their experiences gained from Turkish industrial centres with Germany transformation. And each delegation that and the Benelux states is one of the visited Budapest expressed a desire for most important European freight this. Bulgarian, Croatian, and Slovakian transport channels, a large part of which railway leaders are now studying the is still carried out by public road. lessons from roughly half a decade of The concept was followed by an modernisation at Rail Cargo Hungaria. action plan for implementation. The The Turkish partner company has already Hungarian and Turkish experts agreed expressed concrete requests, inspiring that negotiations would be commenced the Hungarian experts to make proposals with the largest Turkish forwarders to on the very site on how to establish a organise the necessary goods fund. more efficient operation.

NOTE: ALL ARTICLES MARKED EXPERT OPINIONS ARE PAID PROMOTIONAL CONTENT FOR WHICH THE BUDAPEST BUSINESS JOURNAL DOES NOT TAKE RESPONSIBILITY

arely has an office enjoyed so much traffic as that of the Chairman of the Board at Rail Cargo Hungaria Zrt., Dr. Imre Kovács, as Eastern and Central European railroad leaders have come to visit one after another. In the last few weeks, big timers from Polish, Czech, Slovakian, Bulgarian, Romanian, Croatian, Slovenian, and Turkish freight railways arrived to Budapest for exchanges of experiences. Almost every talk revolved around the same topic: how to make national cargo companies more financeable i.e. more effective and competitive, to enable them to carry, for instance, one or two wagonloads of goods of regional medium and small enterprises to European outlets. Indeed, Rail Cargo Hungaria is the only profit-making freight railway company in the region which fully covers the area and is thus capable of ensuring the so-called single wagonload traffic, which is essential for the operation of national economy. Experiences of this Hungarian model are now under the magnifying glasses of railway companies in the region.

WWW.BBJ.HU

Budapest Business Journal | March 27 – April 09, 2015

Logistics center development lags Companies have been reluctant to build logistics centers in Hungary, allowing Poland and Czech Republic to take the lead in the region. DAVID LAWRENCE

Although take−up is increasing and vacancy is falling in the Hungarian logistics development market, the industrial and logistics sector is still under−performing in comparison with Poland and the Czech Republic. In this way the CEE industrial development and take−up pattern is varied with a north−south divide. Poland and the Czech Republic are the clear market leaders, taking advantage of their natural geographic position close to Germany, while the Hungarian market is just beginning to show signs of recovery for the first time since the economic downturn. For example Cushman & Wakefield (C&W) have recorded less than

two million sqm of space in Hungary compared to almost five million in the Czech Republic, despite the two countries being comparable in size. Europe now essentially consists of two banana− shaped logistics networks, one in Western Europe and the other in Central Europe. “We have seen the reluctance of companies considering Hungary to set up logistics centers and light industrial facilities,” said Gábor Halász−Csatári, industrial negotiator at C&W. “According to our feedback, this is due to land prices and concerns over the economic and political situation. However, Hungary is in a favorable geographic position with a very good road network and, if the economic and political environment improves, then we will see new entrants to the market.” More than 4.6 million sqm of new industrial space is expected to be delivered in Central Europe in 2015, and there was a total stock of 18 million sqm of leasable industrial space in Hungary, Poland, Czech Republic, Slovakia and Romania at the beginning of the year according to C&W. Unsurprisingly, Poland leads the pace with more than one million completed. The country accounts for around half of the total CEE space, the Czech Republic a quarter, with the remaining

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Existing stock: CPI’s Airport City Logistic Park at the Budapest airport. quarter taken up by Hungary, Slovakia and Romania. This ratio of space is expected to continue in the near future. Supply of logistics space as of the beginning of the year reflects the position of Hungary as compared to Poland and Czech in CEE. Total space for Poland stood at more than 8,800,000 sqm compared to 4,800,000 sqm for the Czech Republic and 1,800,000 sqm for Hungary at the beginning of the year. “Industrial supply for CEE in 2014 was twice that of the previous year, so last year was very strong; 2015 is likely to be more moderate but still strong,” commented Ferdinand Hlobil, head of central European industrial at C&W. “Poland and the Czech Republic are continuing to lead the market due the their proximity to Germany and solid economic performance; there will be some speculative development but nothing on a large scale.”

Cautious on development Despite positive indicators, leading regional industrial developers are still pursuing cautious development strategies, driven by built−to−suit construction. Indeed, the lack of speculative construction along with rising demand could result in a shortage of available industrial premises in the view of many analysts. The pre−2008 crisis warehouse and logistics development boom was boosted by speculative projects and the question remains as to when industrial developers will again construct on a speculative basis. “The Hungarian industrial sector is in a state of change: Not only deferred occupier requirements are coming alive again, but there is also an increasing pool of new enquiries,” said Domonkos Joó, head of industrial at DTZ Hungary. “Although the vacancy rate is still high, only a handful of schemes can offer large contiguous modern warehouse space.” Although Prologis, for example, has limited speculative development in Poland, Czech Republic, and Slovakia, development in Hungary is still limited to build−to−suit. This, it is argued, has helped somewhat in the re−balancing of the market and the decreasing vacancy rate, but has also resulted in a scarcity of large floor plates, which in turn limits the immediate materialization of

larger requirements. Still, with its latest purchase of the M1 Park, Prologis has shown it is interested in the Hungarian market (see facing page). The take−up of industrial and logistics space in Hungary in 2014 reached 375,000 sqm compared to more than 2,400,000 sqm for Poland and more than 1,208,000 sqm for the Czech Republic, according to C&W. The biggest deal in Hungary was a 26,000 sqm prelease to DB Schenker at Prologis Park Budapest Sziget. In a major deal in the Czech Republic, a 90,000 sqm pre−lease was concluded at Panattoni Park Prague Airport 11. CEE average vacancy has fallen to around 7% from a high of 15% in 2009. The most rapid fall was in Hungary, where it is expected to fall to 15%, although this is still high compared to around 6% in the Czech Republic and Poland. In Slovakia, vacancy has fallen to below 4%, a very low level by CEE standards, and this is expected to stimulate speculative construction. “Vacancy for industrial space in Central Europe is now less than 8%,” said Hlobil of C&W. “Vacancy reflects the economy: The lower this indicator, the better the economy is doing. Falling vacancy indicates rising demand for leasing industrial property. Hungary has made the most progress over the last 12 months with the vacancy rate dropping by 6%. Vacancy is falling and developers are having to bank land in order to develop quickly,” he added. Industrial yields reflect investor sentiment towards the various CEE industrial markets. Prime yields for Hungary stand at 9% for Hungary, compared to 7.25% for Poland and the Czech Republic. However, the Tulipan logistics park has been acquired by Blackstone as part of a portfolio deal across eight countries. This is seen as a significant development in that Hungary is now included in regional logistics portfolio acquisitions. “Hungary has not been a good environment for industrial developers due to high vacancy and economic concerns. Developers therefore have to be cautious; we are now active in Romania and Slovakia and if there was a significant interest we would consider Hungary,” concluded Jaroslav Kaizr, business director at the fourth largest European logistics and industrial developer, CTP.

WWW.BBJ.HU

Budapest Business Journal | March 27 – April 09, 2015

Prologis expands logistics holdings with M1 Business Park Prologis Targeted Europe Logistics Fund (“PTELF”) reported on March 18 that it had acquired the M1 Business Park near Budapest, from CA Immo and Union Investment. We spoke to László Kemenes, Prologis vice president and country officer for Hungary and Romania, about the significance of the deal, and his company’s plans. BBJ STAFF

The purchase of the Prologis Park Budapest M1 must be the biggest real estate deal in logistics this year. Can you give us an idea of the cost of the development? A: It is indeed the largest industrial transaction in the Hungarian market so far this year. Located on the main western trade route to Budapest, Prologis Park Budapest M1 complements our existing portfolio. Unfortunately we cannot disclose the value of this transaction.

How does this park complement your holdings at Prologis Park Budapest− Sziget? How can your customers take advantage of these two facilities close to one another? A: With the recent acquisition of Prologis Park Budapest M1, we now offer distribution space on all the major transportation routes entering Budapest, including the western route M1. Let me give you an example of

Prologis VP László Kemenes.

The Prologis Park Budapest M1.

how a customer could benefit from the vicinity of the parks, with the help of our first−class, flexible and professional customer relations and property management services. Imagine a customer of ours that wants to extend their leased space within our well located, established parks by a couple of thousand square meters. Instead of leasing the extra space in another building in the same park with its implications of the operation becoming more complex, they could consolidate their whole operation under one roof in the neighboring park, without the inconvenience of a totally new location, and still within our portfolio. Another solution is, of course, if the volume of demand requires it, we can deliver a building that has more development potential in six months.

region in this respect, the business environment would need to be more calculable. Currently we see the main obstacle to the Budapest region evolving into a hub is this uncertainty in the business environment. Current popular CEE hubs such as the Wroclaw area in Poland or the D1 zone in Prague are more business friendly markets at the moment, clearly indicated by the fact that last year our speculative small business unit (SBU) building near Wroclaw was 75% pre−leased a month before its delivery.

Do you see Budapest growing in importance as a logistics center for Germany and other parts of Western Europe? A: Maybe in a few years, because the location and the infrastructure are there and the Hungarian road network is one of the most developed in the region. To have a leading position in the CEE

Do you expect further purchases like this in Hungary in the near

future? A: We are continuously looking into acquisition and development possibilities, and we pick those that help strengthen our local portfolio most. For example, this transaction follows the 390,000 square meters of acquisitions we completed last year in Central and Eastern Europe, all of which were below replacement costs, including the acquisition of Prologis Park Budapest−Üllő with one building totaling 37,500 sqm. Including the Prologis Park Budapest M1 acquisition, our Hungarian portfolio currently offers

more than 617,000 sqm around Budapest and Hegyeshalom. Our business activity depends on market conditions, the availability of good quality product on the market, and customer demand. Currently we are focused on maintaining our high occupancy level in the Prologis portfolio.

What are your plans for this year? A: As the global leader in industrial real estate, we have the financial strength, geographical footprint and expertise to deliver modern, energy−efficient distribution facilities which help nearly 4,500 customers worldwide improve efficiency while maximizing profits. We are focused on close cooperation with our customers and maintaining a high retention rate while maintaining our Hungarian portfolio occupancy level and our leadership position on the market. Development in Hungary will depend on market conditions; if the opportunity arises, we would be ready to consider either speculative or built−to−suit development. Our own land bank and building permits in place allow us to start new construction at any time and deliver the property within six−to−eight months to the customer.

WWW.BBJ.HU

Budapest Business Journal | March 27 – April 09, 2015

SMEs add to demand for Hungarian logistics software Investment in cutting−edge logistics software is increasingly gaining popularity with smaller enterprises tempted by thick savings. LEVENTE HÖRÖMPÖLI-TÓTH

Information communication technology for the logistics sector has been a lifeline for the Hungarian economy. The ICT sector, producing 12% of Hungarian GDP, was the only economic segment that continued to grow during the economic crisis. The logistics software market, valued at HUF 1 billion, managed to ride that wave by bagging 20−30% of total IT spending in the transportation industry, according to consultants IDC. Companies are obsessed with optimizing their related costs, because the transportation sector operated with declining profitability in 2014.

Tracking only a start Experts point out that years of economic recession have created a long−term approach when it comes to deciding on investments in logistics solutions. One strategic area is shipment tracking, where sophisticated software can be tailored to suit individual needs. “In the case of car fleets used by sales personnel, the emphasis is on finding out to what extent vehicles are used for private purposes,” Lajos Szabó, managing director of iData Kft. tells the Budapest Business Journal. “Forwarding firms, in turn, are eager to check on fuel consumption or the theft thereof, so it is critical for them to get precise

statistics and be alerted immediately of any abuse.” Using tracking systems can result in savings of up to 40%, depending on the size and specialization of the entity. But if optimizing takes place with regard to its entire vehicle stock, cost−cutting may reach a million forint−magnitude on a monthly basis. However, customers’ expectations are rising. Ten years ago it sufficed to provide them with stats on the location of vehicles at a given time. “Now there’s a vast range of services at your fingertips, such as monitoring exact working hours, GPS−based e−toll payment planning, or keeping track of the number of door openings. Just by keeping an eye on driving styles, some two to three liters of fuel per 100 km can be saved, which helps slash costs significantly for a fleet of five already,” Szabó continues. “Our accredited temperature monitoring is another popular service whereby it can be certified to clients that frozen goods were transported under proper conditions.” Csaba Hegyi, managing director of Paragon Hungária Kft. draws attention to the power of route planners. “They, as opposed to tracking schemes, indicate not only where the shipment is, but also where it’s supposed to be. Should the transport be behind schedule, an alert can be sent,” he says.

State-of-the-art only, please! Another pattern is that customers tend to prefer comprehensive solutions where hardware, networks, product marking or mobile printing are provided alike. Hungarian firms have a lot of catching up to do, as they lag 20 years behind compared to Scandinavia in terms of using such technology. But even smaller enterprises show interest now in great numbers. “Logistics managers keep searching for ways to improve stock

Roling out: Trucks tracked by GPS. turnover and to perform orders faster,” Zoltán Melis, managing director of BCS Hungary Kft., a major market player explains. “Our clients need cutting− edge technology like radio frequency identification (RFID), voice control−based solutions or interoperability with their ERP systems,” he adds. According to Hegyi, certain logistics tools such as WMS (warehouse management), route or packaging planning should operate in a more integrated fashion. “Their built−in optimizing functions should be interconnected, which would result in higher efficiency. For instance if there is a time set to dispatch a shipment, but in the warehouse it becomes clear loading won’t be finished in time, the entire route planning could be redone automatically,” he tells the BBJ.

Your partner in rail freight logistics The no. 1 rail freight operator in Hungary backed by the Austrian shareholder Rail Cargo Austria AG. Operates in the perfect intersection of EU corridors (IV, V, VII, X) As a member of Rail Cargo Group, connects the West, South and South West European markets Together with its subsidiaries covers the full chain of rail freight and combined transport

A logistics cloud Cloud−based services are becoming common place too. However, many smaller firms seem to be suspicious, referring to their allegedly shaky security levels. What they should see instead is the opportunity to cut costs by opting for pay−per−use offers in major international logistics hubs, which is predicted to become a widespread trend in the near future. “Multinational companies already rely on the cloud and keep down costs by granting access for their subsidiaries to a central server where the logistics software is stored. True enough, the cloud requires a complex technical background, but this is the way to go for sure,” Hegyi adds. “It’s a safe bet the industry will embrace it on a large scale sooner than we think.”

WWW.BBJ.HU

Budapest Business Journal | March 27 โ April 09, 2015

Logistics service providers

www.railcargo.hu

73,232

ยป

โ

www.dhl.hu, www.dhl.hu/ express

RAIL CARGO LOGISTICS HUNGARIA KFT.

59,171

55,071

114,713

GYSEV CARGO ZRT. www.gysevcargo.hu

GEBRร DER WEISS FREIGHT FORWARDING AND LOGISTICS KFT.

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

2005 1,972

(0.01) Rail Cargo Austria AG (99.99)

Imre Kovรกcs Nathan Zielke Kornรฉlia Polcz

1133 Budapest, Vรกci รบt 92. (1) 512-7300 (1) 512-7799 cargo.rch@ railcargo.com

ยป

1993 1,000

โ Deutsche Post AG (100)

1992 104

โ Rail Cargo Logistics Austria GmbH (100)

Andrรกs Vernes Edit Bokori โ

1037 Budapest, Montevideo utca 4. (1) 430-8500 (1) 430-8599 RIร FH UFO KX# railcargo.com

27,290

1,054

4,450

โ

12,180(1)

1,156(1)

28,000

โ

Ikea, Heineken, Velux

2011 228

GySEV Cargo Zrt. (100) โ

Jรกnos Skala Zsolt Szalai โ

9400 Sopron, Mรกtyรกs kirรกly utca 19. (99) 577-102 (99) 577-401 info@gysevcargo.hu

ยป

1989 252

โ GW International Holding GmbH (100)

Thomas Schauer โ โ

2330 Dunaharaszti, Raktรกr utca 2. (24) 506-700 (24) 506-705 gw.hungary@gw-world. com

ยป

1990 415

(100) โ

,VWYiQ (Uล V Erzsรฉbet Tรณth Mรกrta Fogarasi

4030 Debrecen, Vรกmraktรกr utca 3. (52) 510-120 (52) 510-197 info@trans-sped.hu

1989 141

Port Logisztika Kft. (80), individuals (20) โ

Lรกszlรณ Szokolรณczi โ โ

1138 Budapest, Szekszรกrdi utca 14. (1) 450-9000 (1) 450-9090 eurosped@ eurosped.hu

Gyula Mรฉszรกros 1RpPL 6]ล FV ร gnes Bolyki

2330 Dunaharaszti, Jedlik ร nyos utca 31. (24) 502-000 (24) 502-113 hungary.info@ raben-group.com

12,000

(1)

56,000

โ

www.gw-world.com

TRANS-SPED LOGISZTIKAI SZOLGร LTATร Kร ZPONT KFT.

9,467

9,285

ยป

www.trans-sped.hu

EUROSPED NEMZETKร ZI FUVAROZร ร S SZร LLร TMร NYOZร ZRT.

8,631

304

17,000

โ

ยป

www.eurosped.hu

RABEN TRANS EUROPEAN HUNGARY KFT.

8,400

50,000

โ

ยป

1989 300

โ Raben Group B.V. (100)

5,203

5,201

19,000

โ

ยป

1991 97

Gyรถrgy Karmazin (100) โ

Gabriella Szรฉcsi Lรกszlรณ Pรกlmai Barbara Anna Bagi

5000 Szolnok, Vรกrosmajor รบt 23. (56) 524-050 (56) 524-040 info@bi-ka.hu

ยป

1994 39

Tamรกs Zsolt Dunai (100) โ

Tamรกs Zsolt Dunai โ โ

1107 Budapest, Ceglรฉdi รบt 19. (1) 433-3030 (1) 433-3040 info@ eurologgroup.com

AGC Glass Hungary Kft., COLOPLAST Hungary Kft., RECKITT BENCKISER Kft., GEDIA Hungary Kft.

2007 140

โ Transpoint International (FI) OY (100)

Sรกndor Bรกtki Anasztรกzia Berecz โ

2890 Tatabรกnya, Szarkalรกb รบt 1. (34) 586-600 (34) 380-052 hungary@vrtranspoint. com

Audi, Robert Bosch, Grundfos, Hankook, Borsodchem

2013 107

โ (NRO /RMLVWLN $รป

ร kos Kovรกcs โ โ

1097 Budapest, Tรกblรกs utca 36. (1) 872-6100 (1) 799-8257 info.hungary@ ekol.com

ยป

1996 142

Z.I. Logisztikai Zrt. (100) โ

Jรณzsef Fรถldhรกzi Mรกria Frรผhwirth Szabรณnรฉ Gyรถrgyi Szabรณ Kovรกcsnรฉ

1136 Budapest, Pannรณnia utca 11. (1) 305-2200 (1) 305-2234 mail@atidepo.hu

www.raben-group.com

BI-KA LOGISZTIKA KFT. www.bi-ka.hu

EURO-LOG LOGISZTIKAI SZOLGร LTATร KFT. 10

www.eurologgroup.com

TRANSPOINT INTERNATIONAL (HU) KFT.

3,150

3,109

260

1,222

7,000

46,000

โ

www.vrtranspoint.com/hu

EKOL LOGISTICS KFT. www.ekol.com 2,300

ร TI DEPO Kร ZRAKTร ROZร SI ZRT. www.atidepo.hu

www.dhl.hu/hu/ elerhetosegek.html

MOL Nyrt., ISD Dunaferr Zrt., Borsodchem Zrt., T.T.Cargo D.O.O., Primagaz Central Europe GmbH, Rail Cargo Logistics Austria GmbH

www.railcargologistics.hu

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

Attila Pรกl, Zoltรกn Matisa, John Lucas, Filip Budik Zoltรกn Antalffy, Gรกbor Mitrรณ, Birgit Mรผller, Ivo Gruber ร va Forgรกcs, Attila Kulcsรกr, Zoltรกn Bรกndli, Irena Mizdochova

DHL GROUP 2

MOL Nyrt., Audi Hungaria Motor Kft., Borsodchem Zrt., ISD Dunaferr Zrt., 0iWUDL (Uล Pล =UW Magyar Suzuki Zrt.

DISTRIBUTION

RAIL CARGO HUNGARIA ZRT. 1

MAJOR CLIENTS IN 2014

YEAR ESTABLISHED NO. OF FULL-TIME EMPLOYEES ON JAN. 1, 2015

OTHER

TRANSPORTATION

DUTIABLE GOODS

WAREHOUSE SERVICES

DOMESTIC GOODS

LTL

FTL

CARGO CONSOLIDATION

DOMESTIC

FREIGHT FORWARDING SERVICES

INTERNATIONAL

RAILWAY

DISTRIBUTION

LOGISTICS SERVICES

WAREHOUSING

NET WAREHOUSE SPACE USED FOR LOGISTICS WAREHOUSING (SQM)

NET REVENUE FROM LOGISTICS SERVICES IN 2014 (HUF MLN)

COMPANY WEBSITE

TOTAL NET REVENUE (HUF MLN) IN 2014

RANK

Ranked by total net revenue (HUF mln) in 2014

1,955

360

1,955

3,300

153,000

WWW.BBJ.HU

1,836

www.maspedlogisztika.hu

FLUVIUS KFT.

DELOG KFT.

PLIMSOLL SZOLGÁLTATÓ KFT.

ZZZ ÁXYLXV KX

www.delog.hu

3,547,000 EUR

906

(1)

885

630

(1)

885

40,000

–

274

–

AUTÓKER LOGISTICS KFT. www.businesspark.hu

CENTROPORT KFT. ZZZ KÀS KX

INTERCARGO NR HUNGARY KFT. www.intercargo.hu

KÜHNE + NAGEL KFT. www.kuehne-nagel.hu

LAGERMAX AUTÓTRANSZPORT NR KFT.

YEAR ESTABLISHED NO. OF FULL-TIME EMPLOYEES ON JAN. 1, 2015

(100) –

Marcell Kovács – Péter Zoltai

1211 Budapest, Szikratávíró út 17–21. (1) 278-0951 (1) 272-0807 logisztika@masped.hu

2001 6

PLIMSOLL Szolgáltató Kft. (32.42), Európa Rendezvény Iroda Kft. (25), individuals (42.58) –

Botond Szalma Ferenc Kruppa –

1139 Budapest, Frangepán utca 7. (1) 237-1100 (1) 237-1091 ÁXYLXV#ÁXYLXV KX

(90.01) (9.99)

Zsolt Fülöp Erzsébet Tóth Márta Fogarasi

4030 Debrecen, Vámraktár utca 3. (52) 510-100 (52) 510-193 info@delog.hu

2001

6,000

–

1992 12

Individuals (100) –

Botond Szalma Beáta Bekes András Kiss

1046 Budapest, 6]ŃQ\L ,VWYiQ XWFD (1) 210-9800 (1) 210-9801 plimsoll@plimsoll.hu

1946/1992 12

Individuals (100) –

László Lehel – –

1113 Budapest, Bocskai út 77–79. (1) 317-4052 (1) 209-2133 RIÀFH#PRJXUW KX

– (100)

Danu M. Temelie – –

1097 Budapest, Gyáli út 50. (1) 333-8888 (1) 333-8890 info@ euroministorage.com

MNV Zrt. (33.33), Baja Municipality (33.33), ÁTI Depo Zrt. (33.33) –

László Nagy – –

6500 Baja, Szentjánosi utca 12. (79) 422-502 (79) 422-502 info@portofbaja.hu

; ,QJDWODQIHMOHV]WŃ pV Ingatlanhasznosító Zrt. (100) –

Szabó Zoltán – Attila Kántor

2360 Gyál, +HOWDL -HQŃ XWFD (29) 544-690 (29) 544-601 info@businesspark.hu

Port-Grain Kft. (51) Glencore Netherlands B.V. (49)

Béla Szalma – –

2400 Dunaújváros, Ruhagyári út 5. (30) 257-9715 – centroport@ centroport.hu

CG Invest Kft. (100) –

Csilla Gömze – –

1117 Budapest, Hauszmann Alajos utca 3 B (1) 425-2240 (1) 203-0070 info@intercargo.hu

– Kühne + Nagel Eastern Europe AG (100)

Márton Lányi – Miklós Csaba

2071 Páty, M1 Business Park (23) 889-000 (23) 889-099 info.budapest@ kuehne-nagel.com

– Beteiligungsgesellschaft Lagermax Autologistik International GmbH» Thomas Baumgartner»

Imre Domina Róbert Bálint Karolina Kalla

2040 Budaörs, Vasút utca 3. (23) 506-100 (23) 506-107 hungaria@lagermax.hu

Hungarian State (100) –

Zsolt Szarka – –

1138 Budapest, Dunavirág utca 2–6. (1) 333-7777 (1) 321-3210 logisztika@posta.hu

– Rail Cargo Terminal-Praha s.r.o. (100)

Miklós Ágh, Imre Kovács, Gábor Kende – –

1239 Budapest, Európa utca 4. (1) 289-6000 (1) 289-6060 bilkkombi@ bilkkombi.hu

DB Hungária Holding Kft. (100) –

Árpád Vásárhelyi, Sándor Barényi Ildikó Kotánczi Zsuzsanna Papp

2310 Szigetszentmiklós, Leshegy út 30. (1) 278-7878 (1) 278-7888 schenker@schenker.hu

– Versteijnen's International Transportbedrijf B.V. (100)

Sándor Voller Zoltán Jobb –

9600 Sárvár, Ikervári út 42. (95) 325-777 (95) 325-888 info@versteijnen.hu

– CEE Transport Holding B.V. (100)

György Waberer – –

1239 Budapest, 1DJ\NŃU|VL ~W (1) 421-6666 (1) 421-6699 info@waberers.com

Waberer's International Zrt. (60), Lóránd Szemerey (40) –

Lóránd Szemerey – –

3527 Miskolc, Fonoda utca 1. (1) 421-8505 (1) 421-8504 info@ waberers-szemerey.hu

10,000

–

130

7,500

–

2006 4

102

Áti Depo Zrt., AgroHandel Hungária Zrt., Invivo Trading Zrt., Gemenc Zrt., Port of Constanta

1999 4

15,000

–

www.portofbaja.hu

ADDRESS PHONE FAX EMAIL

www.euroministorage.com

BAJAI ORSZÁGOS KÖZFORGALMÚ .,.g7ł0Ŝ.g'7(7ł KFT.

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

www.mogurt.hu

EURO MINI STORAGE HUNGÁRIA KFT.

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

MAJOR CLIENTS IN 2014 DISTRIBUTION

TRANSPORTATION

DUTIABLE GOODS

OTHER

1998 38

www.plimsoll.hu

MOGÜRT KERESKEDELMI ZRT.

WAREHOUSE SERVICES

DOMESTIC GOODS

LTL

FTL

CARGO CONSOLIDATION

DOMESTIC

FREIGHT FORWARDING SERVICES

INTERNATIONAL

RAILWAY

DISTRIBUTION

LOGISTICS SERVICES

WAREHOUSING

NET WAREHOUSE SPACE USED FOR LOGISTICS WAREHOUSING (SQM)

MASPED LOGISTICS KFT.

NET REVENUE FROM LOGISTICS SERVICES IN 2014 (HUF MLN)

COMPANY WEBSITE

Budapest Business Journal | March 27 – April 09, 2015

TOTAL NET REVENUE (HUF MLN) IN 2014

RANK

1,650

230,000

–

1989

1999

1993

1992

1990

www.lagermax.hu

MAGYAR POSTA ZRT. NR www.posta.hu

RAIL CARGO NR TERMINAL - BILK ZRT. www.bilkkombi.hu

SCHENKER NEMZETKÖZI NR SZÁLLÍTMÁNYOZÁSI ÉS LOGISZTIKAI KFT.

–

1993

2001

1994

www.schenker.hu

VERSTEIJNEN NR LOGISTICS KFT. www.versteijnen.hu

WABERER'S NR INTERNATIONAL ZRT. www.waberers.com

WABERER'S SZEMEREY NR LOGISZTIKA KFT.

www.waberers-szemerey.hu NOTES: (1) Expected total net revenue in 2014.

10,000

120,000

–

1995

1990

1991

WWW.BBJ.HU

Budapest Business Journal | March 27 â€“ April 09, 2015

Logistics parks Ranked by total net warehouse space used for logistics warehousing (sqm) YEAR ESTABLISHED

â€“

Âť

1978

158,000

Prologis Hungary Kft., 1095 Budapest, Lechner Ă–dĂśn fasor 7., (1) 577-7700, (1) 577-7701, www.prologis.com

â€“

Âť

2008

â€“ Prologis B.V. (100)

LĂĄszlĂł Kemenes Sylwester Flaga Marta Tesiorowska

2360 GyĂĄl, Ipari Park Hrsz. 7. (1) 577-7700 (1) 577-7701 info-hu@prologis.com

153,000

Ă TI DEPO KĂśzraktĂĄrozĂĄsi ZRt.

â€“

Âť

1996

Z.I. Logisztikai Zrt. (100) â€“

JĂłzsef FĂśldhĂĄzi MĂĄria FrĂźhwirth SzabĂłnĂŠ GyĂśrgyi SzabĂł KovĂĄcsnĂŠ

1136 Budapest, PannĂłnia utca 11. (1) 305-2200 (1) 305-2234 mail@atidepo.hu

â€“

Rossmann MagyarorszĂĄg Kft., 2ULĂ DPH Hungary Kft.

2009

Âť Âť

Blazej Ciesielczak â€“ â€“

hOOĹƒ M4 kijĂĄrat (1) 336-2270 (1) 336-2289 info-hu@goodman.com

LĂĄszlĂł Kemenes Sylwester Flaga Marta Tesiorowska

1225 Budapest, Campona utca 1. (1) 577-7700 (1) 577-7701 infoâ€“hu@prologis.com

PROLOGIS PARK BUDAPEST-GYĂ L 2

www.prologis.com

Ă TI DEPO KĂ–ZRAKTĂ ROZĂ SI ZRT. www.atidepo.hu

*22'0$1 h//Ĺ‚ AIRPORT LOGISZTIKAI KĂ–ZPONT

â€“

Âť

2008

128,000

Prologis Hungary Nineteen (P) Kft., 1095 Budapest, Lechner Ă–dĂśn fasor 7., (1) 577-7700, (1) 577-7701, www.prologis.com

â€“

Âť

2008

â€“ ProLogis B.V (100)

LĂĄszlĂł Kemenes Sylwester Flaga 0DUWD 7Ä•VLRURZVND

2310 SzigetszentmiklĂłs, Leshegy utca 30. (1) 577-7700 (1) 577-7700 info-hu@prologis.com

100,000

IMV 2004 Kft., 1138 %XGDSHVW 1pSIÂ UGĹƒ X 24â€“26.

â€“

Âť

2007

â€“ ,PPRĂ€QDQ] $GYLFH GmbH (100)

Mag. Andrea SperlingKoch, Maria KĂśhler â€“ â€“

1133 Budapest, Ă rboc utca 6. (1) 236-0435 (1) 236-0436 RIĂ€FH#LPPRĂ€QDQ] FRP

95,000

Rail Cargo Terminal - BILK Zrt., 1239 Budapest, EurĂłpa u. 4., (1) 289-6000, www.bilkkombi.hu

Âť

â€“

Âť

2001

â€“ Rail Cargo TerminalPraha s.r.o. (100)

MiklĂłs Ă gh, Imre KovĂĄcs, GĂĄbor Kende â€“ â€“

1239 Budapest, EurĂłpa utca 4. (1) 289-6000 (1) 289-6060 bilkkombi@bilkkombi.hu

93,000

0$+$57 &RQWDLQHU Center Kft.

â€“

Container loading, warehousing, repair

Maersk, Metrans, MSC

1998

MULTICONT Terminal Kft. (50), WINTCI Kft. (50) â€“

MĂĄrta GajdĂĄn $QLWD *\|UNHIDOYL ZoltĂĄn FĂĄbiĂĄn

1211 Budapest, Weiss ManfrĂŠd Ăşt 5â€“7. (1) 278-0178 (1) 277-0167 mail@containercenter.hu

78,000

Wing Zrt., 1095 Budapest, MĂĄriĂĄssy u. 7., (1) 451-4760, (1) 451-4762, www.wing.hu

â€“

â€“ â€“ â€“

2151 FĂłt, $NiFRV (1) 451-4760 (1) 451-4289 egpb@wing.hu

70,000

,PPRĂ€QDQ] 6HUYLFHV Hungary Kft., 1133 Budapest, Ă rboc u. 6.

65,000

&$ ,PPR +XQJDU\ .IW 1074 Budapest, RĂĄkĂłczi Ăşt 70â€“72., (1) 501-2800, www.caimmo.com

50,000

$XWyNHU /RJLV]WLNDL .IW 2360 GyĂĄl, +HOWDL -HQĹƒ X (29) 544-690, www.businesspark.hu

50,000

Raben Trans European Hungary Kft., 2330 Dunaharaszti, Jedlik Ă nyos utca 31.

50,000

$XWyNHU /RJLV]WLNDL .IW 2360 GyĂĄl, +HOWDL -HQĹƒ X (29) 544-690, www.businesspark.hu

49,000

Hung Log Two Kft., 2051 BiatorbĂĄgy, VerebĂŠly LĂĄszĂł u 2.

PROLOGIS PARK BUDAPEST-HARBOR 5

PROLOGIS PARK BUDAPEST-SZIGET 6

www.prologis.com

IMMOFINANZ SERVICES HUNGARY KFT. ZZZ LPPRĂ€QDQ] FRP

RAIL CARGO TERMINAL BILK ZRT. www.bilkkombi.hu

MAHART CONTAINER CENTER KFT. www.containercenter.hu

EAST GATE BUSINESS PARK www.egpb.hu

EURO-BUSINESS PARK www.eurobusinesspark.hu

EUROPOLIS PARK BUDAPEST AEROZONE www.caimmo.com 12

M5-GYĂ L BUSINESS PARK www.m5businesspark.hu

RABEN TRANS EUROPEAN HUNGARY KFT. www.raben-group.com

M5-GYĂ L BUSINESS PARK

HUNG LOG TWO REAL ESTATE UTILIZATION KFT.

www.m5businesspark.hu

www.westlogdc.com

2045 TĂśrĂśkbĂĄlint, HosszĂşrĂŠt (23) 338-044 (23) 334-666 titkarsag@ depologisztika.hu

132,000

www.goodman.com/hu

www.prologis.com

BĂŠla MescsĂĄn â€“ â€“

â€“ ProLogis B.V. (100)

â€“

ADDRESS PHONE FAX EMAIL

Harbor Park Real Estate Development Kft., 1095 Budapest, Lechner Ă–dĂśn fasor 7., (1) 577-7700, (1) 577-7701, www.prologis.com

â€“

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

Goodman Hungary Kft.

â€“

MAJOR CLIENTS IN 2014

150,000

â€“

OTHER

CUSTOMS SERVICE

â€“

DISTRIBUTION

BUILDING MANAGEMENT

www.depologisztika.hu

DOMESTIC WAREHOUSING

(100) â€“

ACCESSIBLE VIA WATER

215,000

Depo Logisztikai KĂśzpont Kft., 2046 TĂśrĂśkbĂĄlint, HosszĂşrĂŠt, (23) 338-044, (23) 334-666, www.depologisztika.hu

ACCESSIBILITY TO TRUCKS

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

RAIL LOGISTICS

DEPO LOGISZTIKAI KĂ–ZPONT KFT.

OPERATING COMPANY, NAME, ADDRESS, PHONE AND FAX NO., WEBSITE

WAREHOUSE LOGISTICS

COMPANY WEBSITE

NET WAREHOUSE SPACE USED FOR LOGISTICS WAREHOUSING (SQM)

RANK

SERVICES

â€“

Âť

2006

(100) â€“

Âť

â€“

Âť Âť

â€“

Âť

1989

â€“ ,PPRĂ€QDQ] $GYLFH GmbH (100)

Mag. Andrea SperlingKoch, Maria KĂśhler â€“ â€“

2040 BudaĂśrs, VasĂşt utca 9. a(1) 451-8040 (1) 451-8041 J NRR#LPPRĂ€QDQ] FRP

â€“

BMW, Fedex, CH Robinson, Expeditors

2004

â€“ (100)

Ede GulyĂĄs, Markus Andreas Kuttner â€“ â€“

2220 VecsĂŠs, /ĹƒULQFL ~W Â˛ (1) 501-2818 (1) 501-2801 RIĂ€FH#FDLPPR KX

Pharmaceutical warehouse

1989

(100) â€“

ZoltĂĄn SzabĂł â€“ $WWLOD .iQWRU

2360 GyĂĄl, +HOWDL -HQĹƒ XWFD (29) 544-690 (29) 544-601 info@businesspark.hu

1989

â€“ Raben Group B.V. (100)

Gyula MĂŠszĂĄros 1RpPL 6]Ĺ?FV Ă gnes Bolyki

2330 Dunaharaszti, Jedlik Ă nyos utca 31. (24) 502-000 (24) 502-113 hungary.info@ raben-group.com

1989

(100) â€“

ZoltĂĄn SzabĂł â€“ $WWLOD .iQWRU

2360 GyĂĄl, +HOWDL -HQĹƒ XWFD (29) 544-690 (29) 544-601 info@businesspark.hu

2006

â€“ Industrial Securities (Luxembourg) (100)

GyĂśrgy SzucsĂĄny â€“ â€“

2051 BiatorbĂĄgy, VerebĂŠly LĂĄszlĂł utca 2. (23) 804-333 (23) 804-334 info@westlogdc.com

â€“

Âť

â€“

Pharmaceutical warehouse

Âť

â€“

Huawei / DHL, Liegl & Dachser, TatĂĄr PĂŠksĂŠg, Eurodoc

WWW.BBJ.HU

20 3

Budapest Business Journal | March 27 â€“ April 09, 2015

GEBRĂœDER WEISS FREIGHT FORWARDING AND LOGISTICS KFT. www.gw-world.com

GOODMAN GYĂ LI LOGISZTIKAI KĂ–ZPONT

44,000

Goodman Hungary Kft.

39,000

Prologis Hungary Twenty (P) Kft., 1095 Budapest, Lechner Ă–dĂśn fasor 7., (1) 577-7700, (1) 5777701, www.prologis.com

34,000

Wing Zrt., 1095 Budapest, MĂĄriĂĄssy u. 7., (1) 451-4760, (1) 451-4762, www.wing.hu

33,500

Ă TI-Sziget Kft., 2313 SzigetszentmiklĂłs, Pf. 18., (24) 406-120, (24) 406-110, www.atisziget.hu

â€“

OTHER

CUSTOMS SERVICE

DISTRIBUTION

BUILDING MANAGEMENT

DOMESTIC WAREHOUSING

ACCESSIBLE VIA WATER

ACCESSIBILITY TO TRUCKS

RAIL LOGISTICS

46,000

GebrĂźder Weiss Kft., 2330 Dunaharaszti, RaktĂĄr u. 2., (24) 506-700, www.gw-world.hu

WAREHOUSE LOGISTICS

OPERATING COMPANY, NAME, ADDRESS, PHONE AND FAX NO., WEBSITE

â€“

Âť

â€“

Hopi HungĂĄria Kft.

www.goodman.com/hu

PROLOGIS PARK BUDAPEST-BATTA 19

www.prologis.com

DĂ‰L-PESTI ĂœZLETI PARK www.wing.hu

Ă TI-SZIGET INDUSTRIAL PARK www.atisziget.hu

GOODMAN KECSKEMĂ‰TI LOGISZTIKAI KĂ–ZPONT

â€“

Goodman Hungary Kft.

29,000

Prologis Hungary Ten Kft., 1095 Budapest, Lechner Ă–dĂśn fasor 7., (1) 577-7700, (1) 577-7701, www.prologis.com

â€“

28,000

Bertrans Logisztikai Zrt., 6000 KecskemĂŠt, Fuvar u. 1., (76) 999-100, (76) 999-101, www.bertrans.hu

â€“

33,000

â€“

www.prologis.com

BERTRANS LOGISTICS CENTER www.bertrans.hu

â€“

Âť Âť

Âť

â€“

1LOĂ€VN $GYDQFH Kft., Industrial Technique Hungary Kft., ForestPapĂr Kft., PEX $XWRPRWLYH Systems Kft., DraspĂł-Tempo Kft., Csepel $XWy .IW

â€“

Bertrans Logisztikai Zrt., Bosal Hungary Kft.

28,000

CPI Hungary Kft., 1132 Budapest, VĂĄci Ăşt 30., (1) 225-6600, (1) 225-6601, www.cpipg.hu

24,000

Prologis Hungary Kft., 1095 Budapest, Lechner Ă–dĂśn fasor 7., (1) 577-7700, (1) 5777701, www.prologis.com

23,300

0$63(' /RJLV]WLND .IW 1211 Budapest, SzikratĂĄvĂrĂł Ăşt 17-21., (1) 278-0951, (1) 278-0807, www.maspedlogisztika.hu

23,200

Resideal Zrt., 1134 Budapest, KassĂĄk Lajos u. 18., (1) 485-1685, (1) 485-1639

13,300

0$63(' /RJLV]WLND .IW 1211 Budapest, SzikratĂĄvĂrĂł Ăşt 17-21., (1) 278-0951, (1) 278-0807, www.maspedlogisztika.hu

3,200

0$63(' /RJLV]WLND .IW 1211 Budapest, SzikratĂĄvĂrĂł Ăşt 17-21., (1) 278-0951, (1) 278-0807, swww.maspedlogisztika. hu

PROLOGIS PARK HEGYESHALOM 26

www.prologis.com

MASPED PORT LOGISTICS CENTER www.maspedlogisztika.hu

CITY POINT 9 CITY LOGISTICS CENTRE www.citypoint.hu

MASPED Ă‰SZAK-PESTI LOGISTICS CENTRUM TERMINAL â€?Bâ€? www.maspedlogisztika.hu

MASPED Ă‰SZAK-PESTI LOGISTICS CENTRUM TERMINAL â€?Aâ€? www.maspedlogisztika.hu

â€“

OWNERSHIP (%) HUNGARIAN NON-HUNGARIAN

TOP LOCAL EXECUTIVE CFO MARKETING DIRECTOR

ADDRESS PHONE FAX EMAIL

1989

â€“ GW International Holding GmbH (100)

Thomas Schauer â€“ â€“

2330 Dunaharaszti, RaktĂĄr utca 2. (24) 506-700 (24) 506-705 gw.hungary@ gw-world.com

2007

Âť Âť

Blazej Ciesielczak â€“ â€“

2360 GyĂĄl, M5 kijĂĄrat (1) 336-2270 (1) 336-2289 info-hu@goodman.com

2010

â€“ ProLogis B.V. (100)

LĂĄszlĂł Kemenes Sylwester Flaga Marta Tesiorowska

2440 SzĂĄzhalombatta, Iparos utca 4. (1) 577-7700 (1) 577-7701 info-hu@prologis.com

2004

(100) â€“

â€“ â€“ â€“

1097 Budapest, TĂĄblĂĄs utca 36. (1) 451-4760 (1) 451-4289 ipari@wing.hu

2001

Z.I. Logistics Zrt. (100) â€“

0LKDO\ )HMĹƒV IstvĂĄnnĂŠ Geiszler â€“

2313 SzigetszentmiklĂłs, Pf. 18. (24) 406-120 (24) 406-110 director@atisziget.hu

2007

Âť Âť

Blazej Ciesielczak â€“ â€“

6000 KecskemĂŠt, Fuvar utca 1. (1) 336-2270 (1) 336-2289 info-hu@goodman.com

LĂĄszlĂł Kemenes Sylwester Flaga Marta Tesiorowska

2040 BudaĂśrs, SeregĂŠly utca 8. (1) 577-7700 (1) 577-7701 info-hu@prologis.com

â€“

Âť

2001

â€“ ProLogis B.V. (100)

â€“

Âť

1989

(100) â€“

PĂĄl RĂłzsa â€“ â€“

6000 KecskemĂŠt, Fuvar utca 1. (76) 999-100 (76) 999-101 bertrans@bertrans.hu

2IĂ€FH GHVLJQ tailor-made design

Benteler Distribution Hungary .IW $JLOLW\ Hungary Kft., Trilak FestĂŠkgyĂĄrtĂł Kft., Panalpina Hungary Kft., 1$9 &XVWRPV 2IĂ€FH

2001

â€“ CPI Property Group (100)

Adrienn Lovro â€“ Bea DĂŠri

1132 Budapest, VĂĄci Ăşt 30. (1) 225-6600 (1) 225-6601 hungary@cpipg.com

2007

â€“ ProLogis B.V. (100)

LĂĄszlĂł Kemenes Sylwester Flaga Marta Tesiorowska

9222 Hegyeshalom, Hrsz. 1073/1. (1) 577-7700 (1) 577-7701 info-hu@prologis.com

2001

Âť Âť

Marcell KovĂĄcs â€“ PĂŠter Zoltai

1211 Budapest, SzikratĂĄvĂrĂł Ăşt 17â€“21. (1) 278-0951 (1) 278-0807 logisztika@masped.hu

2010

MKB Bank Zrt. (100) â€“

DĂĄniel Gajdos â€“ â€“

1097 Budapest, Gubacsi Ăşt 24. (1) 485-1683 (1) 485-1639 balint.marianna@mkb.hu

Marcell KovĂĄcs â€“ PĂŠter Zoltai

2151 FĂłt, Keleti MĂĄrton utca 12. (1) 278-0951 (1) 278-0807 logisztika@masped.hu

Marcell KovĂĄcs â€“ PĂŠter Zoltai

2120 Dunakeszi, $ODJL PDMRU (1) 278-0951 (1) 278-0807 logisztika@masped.hu

AIRPORT CITY LOGISTIC PARK www.airportcity.hu

Âť

â€“

www.goodman.com/hu

PROLOGIS PARK BUDAĂ–RS

MAJOR CLIENTS IN 2014

YEAR ESTABLISHED

COMPANY WEBSITE

NET WAREHOUSE SPACE USED FOR LOGISTICS WAREHOUSING (SQM)

RANK

SERVICES

â€“

Excise tax warehousing services, international moving, exhibition and conference logistics, industrial logistics, international freight forwarding

Âť

â€“

Customs agency, public customs, private customs and 9$7 ZDUHKRXVH warehouse and RIĂ€FH UHQWDO LQWHUnational freight forwarding, industrial logistics, exhibition and conference logistics

Âť

2001

Âť Âť

Customs yard type no. 1, customs agency, public customs, private customs DQG 9$7 ZDUHhouse, customs consulting, truck parking, warehouse and RIĂ€FH UHQWDO

Âť

2001

Âť Âť

BBJ

4 Socialite Wine: Ten sillers, four worth buying A tasting of the latest pinkish−red wine shows the limited possibilities of the 2014 vintage.

“The 2014 had inviting strawberry jam aromas and a bitter twist on the finish to pleasantly remind you that you’re not drinking a deeper colored rosé.”

ROB SMYTH

Ten Sillers from the well below par 2014 vintage in Szekszárd have made it past the local tasting panel to earn the right to carry the name of Fuxli, but when tasted blind only four would have me parting with my hard−earned cash. Siller, which is made with one to two (occasionally three) days of skin

“The pick of the 2014 Fuxli bunch for me was from Merfelsz with its soft, sweetish and juicy sour cherry and pomegranate notes.” contact during which some color and tannin is extracted from the grapes, serves to bridge the gap between rosé and red wine. It looks and tastes somewhere between rosé and red wine, some possessing a touch of the kind of bitterness that red wines possess while others are effectively ramped up rosés. Fuxli can be a blend or made from a single varietal with Kékfrankos and Kadarka often in the mix, but all the important red grapes can come into play. Fuxli is an old local Swabian word (Szekszárd is brimming with winemakers of Swabian descent) that means a small fox, which is derived from the German word for fox (Fuchs) and is a reference to the wine’s color, although these days it usually comes out deep pink or raspberry colored. In 2011, six wines were picked for the newly− established Fuxli category by the local panel, rising to nine in 2012 and 13 in 2013. The Fuxli category is intended to denote premium quality Siller. The pick of the 2014 Fuxli bunch for me was from Merfelsz with its soft, sweetish and juicy sour cherry and pomegranate notes. This was made from 60% Kékfrankos and 40% Merlot and was as clean as a whistle, which couldn’t be said for all of the ten that made it through the gate. Indeed, a couple could be described as a bit on the foxy side. However, some of them

Adrián Bősz, whose basic “Classic” red and white wines are pictured, produced a fine 2013 vintage Siller. may be suffering from bottle shock, having been recently bottled, and may perk up a bit over the next weeks as they hit the shelves. Nevertheless, the vineyards were rife with fungal disease in 2014 with the flavors also diluted by the incessant rain at key junctures of the vintage, such as around and during harvest. Another stellar 2014 effort came from the Eszterbauer cellar, which went with Kékfrankos this vintage to contrast with

just Kadarka in 2013. The 2014 had inviting strawberry jam aromas and a bitter twist on the finish to pleasantly remind you that you’re not drinking a deeper colored rosé. Jáni Márkvárt, an exciting young vintner who strives to put Szekszárd’s succulent fruit first in his wines, made his 2014 Fuxli from Kékfrankos and Zweigelt. It has sweet, ripe and seductive wild strawberry and rose hip aromas, again with that bitter turn towards the finish. Posta

also posted a good effort, using mainly Kékfrankos to do so. Sándor Merfelsz, who is a noted cook down in Szekszárd where he makes wine in conjunction with his winemaker Attila Godor, has found sushi the ideal accompaniment to his and other Fuxlis. In particular, he finds the spicy ginger that we bite into when eating sushi really hits the spot. Merfelsz describes Fuxli as a highly versatile wine that can be enjoyed by itself, or as a cool aperitif and, as it warms up a few degrees, it can also go with starters and main courses. Not all winemakers even try to make it in a substandard vintage and one of the best producers of Siller in Szekszárd, the marvelously maverick József Vesztergombi, refuses to be part of the Fuxli movement despite claiming to be the first to get serious about Siller post 1989. The 2014 Fuxlis are set to be unveiled to the press and wine lovers on Friday March 27 at the VinoPiano Borbár. The prices are not available yet but a bottle of Fuxli usually sets you back somewhere around Ft 1,700 a bottle. A very nice Siller if you can still find it is Adrián Bősz’s 2013, which oozes cranberry and cherry, and shows a good bit of chunky tannin on the palate that takes you in a light red wine direction. Incidentally, we don’t see much white wine from the often sweltering southern climes of Szekszárd but this dynamic winemaker has made some complex Riesling, even from grapes that have attracted botrytis or “noble rot” from the Danube, as is the case of the 2009 Csóka−hegy Dűlő. Bősz can do fresh and fruity too. His basic white Classic Fehér 2013, a blend of Riesling, Cserszegi Fűszeres and Chardonnay, is both zesty and aromatic with lime peel, lemon and lychee on the nose, followed by a very lively palate that’s very refreshing thanks to the crispy acidity, but not at all tart. Bősz’s entry level red Classic Vörös 2012, a blend of Kékfrankos, Menoir, Merlot, and Kadarka, is the ideal house red to have sitting around. It’s light in body and a touch rustic but very spicy and peppery with good fruit and firm acidity. A top choice for HUF 1,890.

WWW.BBJ.HU

4 Socialite

Budapest Business Journal | March 27 – April 09, 2015

High-altitude pizzeria builds fame and a following Beyond the edge of Óbuda, a former news anchor runs a popular bar and eatery that has become a magnet for locals and the media set. LEVENTE HÖRÖMPÖLI-TÓTH

The place is nearly full, and when you look at the happy faces around you, all your troubles are gone. Taking another sip of your premium beer intensifies the impression. It’s a standard Monday evening in Ürömi Hütte, a new destination for diners, drinkers and the media set in the Hungarian capital. And the moment you enter, you just know there’s something extraordinary about the place. The location is almost as odd as the name: a hilltop in Üröm, a trendy village hosting chic, newly built neighborhoods on the border of Budapest’s district 3. But what on earth draws people from all over to this eatery, even on weekdays and only one and a half years after opening?

Co-owner András Sváby.

Not as simple as it seems The restaurant’s motto, “Pizza & Beer” hints at simplicity. Yet if you scratch the surface, a carefully crafted model is revealed. “Pizza was chosen as a lead product as this is a food that you can’t get bored with, and beer is also something everybody likes,” owner András Sváby tells the Budapest Business Journal. That’s pretty much where simplicity ends, though, since the concept was to achieve fine dining in a market segment where it was previously beyond imagination. Part of the trick is that all the ingredients such as flour, yeast, and olive oil are shipped from Italy. What makes the real difference, though, is the magic of lead chef István Szür. “István has worked in a previous restaurant of mine and I insisted on him being on board”, Sváby said. Szür was thrilled to do more than just pizza, no matter

A fine dining approach to pizza. how perfectly it was made, and variety has also been something sought by the clientele from very early on.

Fine dining reinterpreted Initially they wanted fare such as Spätzle (a soft egg noodle or dumpling) or Germknödel (a yeast dough dumpling filled with jam) typical menu items that are normally available only in the hütte cabin restaurants of Austrian ski resorts. Tastes since have expanded into other dishes, but whatever you order, the chef plays strictly by gourmet rules, using premium ingredients and composing meals in an artistic fashion. The drink choices also follow this approach, with high−quality beer and top−notch wines offered.

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New Menu! Free welcome drink!

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Hütte’s simple yet sophistocated Alpine styling. “Everybody wanted to talk me out of the investment, especially because of the location. But I felt Üröm needs a place where you can stop by for a drink or grab some great food at a fair price, and to chat in a laid−back fashion, just like being at home,” the owner notes. Not only locals are flocking there, however. Thanks to a professional Facebook campaign, a die− hard fan base with a diverse geographic background has built up. Hikers were expected to be a major target audience because of the nearby nature trails, but they never really came. Instead many high−profile customers from politics, media, and business circles frequent the tables. Riding that wave at last New Year’s Eve celebrations, former radioman Péter Radnai was DJ−ing.

Switching on the fireplace Although Sváby himself is a former well− known television anchor, he prefers keeping a low profile in this regard. But that doesn’t mean he is not involved in the restaurant’s everyday operation. In fact, he posts three to five times a day on Facebook to keep fans updated. More hard work is put in by co−owner Peter Felfalusi, CEO of a multinational credit management company, and also by the partners’ wives, Enikő and Kati. “A key to success is the owner’s permanent presence,” Sváby stresses.

“That’s why a franchise system is out of question. Time−wise it wouldn’t work.” Enlarging the place may concern only a terrace, to meet increased demand, and the kitchen was given a face−lift for the same reason. “Home delivery could boost sales, but I’m not fond of it. It compromises quality and you miss the ‘hütte’ feeling. At some point it may become a sub−brand,” Sváby explains. His passion about gastronomy and his experience with his former eatery helps bring him to such conclusions. That’s also how he designed the interior with his wife. The seemingly simple wooden cabin decor actually has an awful lot of thought behind it, and it is complemented by a video screen playing shots of a fireplace on loop. “Interior designers freaked out because of it, but I bought the software for 17 bucks anyway. Now some people specifically book the table underneath it,” Sváby says.

The personal touch The charm of the place has a lot to do with team spirit, too. The personnel get special training to pay close attention to guests. They remember regulars’ names, favorite dishes, and where they like to sit. Service is superpolite, friendly and professional; to often a rarity in the Hungarian gastronomy wilderness.

WWW.BBJ.HU

4 Socialite

Budapest Business Journal | March 27 – April 09, 2015

WHAT’S

ON SPRING FESTIVAL April 10−26, various Budapest venues.

With more than 250 performances at 200 venues around the city, this year’s Spring Festival presents everything from classical to jazz, to modern dance and theater productions. The following are some highlights of the programs on offer. The Festival Opening Parade on April 11 will feature nearly 600 professional and amateur dancers, singers and musicians starting out from three different locations in the city – Fővám tér, Városháza Park, and Szent István tér – progressing along Andrássy Avenue until they arrive at Heroes’ Square, stopping to perform along the route. On April 10, Mihály Dresch will present his signature hybrid of jazz and folk music in a show entitled “New Beginning” featuring a number of his own compositions with a rearranged rhythm section. Also on April 10, the technically adept, yet passionate Russian pianist Denis Matsuev and the Hungarian National Philharmonic take the stage of the ADVERTISEMENT

Fun things to d o in Budapest for the nex t t wo weeks.

Palace of Arts to present pieces by Franz Liszt, Rachmaninoff and Schumann. The conductor will be Zoltán Kocsis. The Gershwin Piano Quartet will perform on four pianos at Vigadó on April 13, improvising the songs and popular orchestral works of the legendary pianist and composer as well as pieces from Gershwin’s renowned contemporaries. On April 15, the David Sanborn Band takes to the stage at the Palace of Arts. With two dozen albums, six Grammies, and a succession of gold and platinum records, Sanborn is one of the most prolific jazz saxophonists of the past three and a half decades. Also at the Palace of Arts, legendary Irish songstress Sinéad O’Connor will present material from her latest album, “I’m not Bossy, I’m the Boss” on April 21. SZENTENDRE SPRING FESTIVAL March 19−May 10, Szentendre various venues The Szentendre Spring Festival takes place in the charming historical town of Szentendre a short drive north of Budapest, on the banks

of the Danube. The festival, which runs over the course of two months, features a rich program of music, theater and art exhibits. For more information visit the festival’s website at www.szentendreprogram.hu. /////////FUR////: NO PAIN NO GAME March 25−April 18, Ludwig Museum This digitally inspired exhibition showcases the works of German media artists Volker Morawe and Tilmann Reiff. Their boldly fresh and unconventional approaches have given them a reputation as the Dadaists of their genre and have garnered them a number of prestigious awards and even more notable exhibitions around the world.

Sinéad O’Connor.

EASTER MARKET March 27−March 29, Milenáris garden

LAIBACH April 9, Barba Negra Music Club

Enjoy a festive feast at this year’s Easter market being held in the grassy park beside the Milenáris cultural center in Buda. All the traditional fare of the season, such as ham and eggs and specialty cheeses will be on offer alongside locally produced wines and pálinka. The festival also includes family− friendly programs. Entrance is free.

Slovenian Goth rockers Laibach will be making a stop in Budapest as part of their Spectre tour, to present material from their latest studio release. These veterans of industrial electronica put on a dynamic stage show replete with political satire and edgy performance art.

PARNO GRASZT WITH ÁGI SZALÓKI April 2, MOM Kulturális Központ Renowned gypsy band Parno Graszt presents a lively program of classic numbers that have been handed down through the generations. This group of ten musicians have true stage presence and will be accompanied by Hungarian folk singer Ági Szalóki.

MANFRED MANN’S EARTH BAND April 12, A38 English rockers Manfred Mann’s Earth Band came to be in 1971 under the hand of South African musician Manfred Mann, and are best known for their early hit “Blinded by the Light”, a cover of an old Bruce Springsteen tune. After a brief hiatus in the late 1980s and early ’90s, the band continues to tour with two of its original members.

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