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HUNGARY’S PRACTICAL BUSINESS BI-WEEKLY SINCE 1992 | WWW.BBJ.HU MARCH 24 – APRIL 6, 2017

BUDAPEST

BUSINESS JOURNAL

VOL. 25. NUMBER 06

SPECIAL REPORT

Logisitics bbj.hu www.

2017

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Journal

| March

24 – April

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1 t12 Market1 Investmen Logistics 13 Improving now an Attractive tical Top Ten Logis Logistics Giant 14 Still in the Growing Hungary Cargo: a Airport Budapest

ics y’s logist Hungar attracting is market , though attentionin may not getting sy. be so ea

Bridging the Generation Gap SOCIALITE

A Voyage of Stained Glass Discovery The BBJ’s latter-day flaneur David Holzer finds himself submerged in another world, bathed in the magical, soft colored light of Miksa Róth’s exquisite stained glass work. 20

BBJ_2506_news.indd 1

E SS BUSIN

PwC’s country managing partner Nick Kós says companies have to find a better way of talking to young recruits, of encouraging them to invest in their own careers and building up experience. Failure to do so SPECIAL REPORT could lead to a lost generation, Logistics now an he fears. 7 Attractive Investment As conditions improve in the market, more international industrial operators, developers and investors are looking at the investment possibilities or expanding their portfolios.12

NEWS

Construction Sector to Kick-start Economy?

Industrial output figures have confirmed a poor start to the year, but the slow revival of Hungary’s construction sector and the favorable business sentiment in significant European trade partners promise something better.3

2017. 03. 23. 16:56

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Budapest Business Journal | March 24 – April 6, 2017

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number of interesting themes came out of the launch of the latest PwC Hungarian CEOs survey (see our story on this on page seven, and our detailed analysis of the survey itself in the last issue), many centered around the battle to find and keep talented individuals.

A

He is not dry old academic, but full of interesting stories and observations based on years of experience. And most of the younger students simply aren’t interested. “What happens to all that experience once the professor retires?”

Kós asked.

Perhaps most striking is what Nick Kós, PwC’s country managing partner, referred to as a growing generation gap between the people firms are trying to hire today, and the CEOs running those firms. People like him, in fact, who grew up and went to university in a time before everyone had their own smartphone and laptop, before social media existed, before Google held the answer to everything (if only you know how to read the data). In the absence of all that smart technology, the same gap did not exist when Kós and his peers were starting out on their careers between those bright-eyed graduates and their CEOs

That resonated with me. When I was starting out as a trainee reporter in the late 1980s, all the really senior staffers were seasoned old hacks who had gone away, worked in Fleet Street or elsewhere in London on national publications, helped launch quite a few, and had come back to local newspapers towards the end of the careers. Their experience was priceless, and I gained so much from them. I was at that paper for ten years, rising up through the ranks, learning all the way. Within a few years of my leaving to take up my first editorship, the chief reporter in each office was the trainee who had been there the longest.

Tied to that, though, seems to be a societal issue where the concept of delayed gratification has gone out of the window. The so-called millennials (very roughly born somewhere between 1982 and 2004) are said the have a strong sense of self entitlement. That’s clearly doing a disservice to many, but generalizations become such for a reason; they hold a grain of truth. Kós says the battle is not so much finding talented people, but finding talented people prepared to invest in their own careers, to put the work in now to get the experience that earns you the right to do much more interesting stuff down the line. Too many seem to want, perhaps expect, to do the interesting stuff now.

I recognize, of course, that times inevitably change, but a trainee joining an office run by a more experienced trainee or, at best, a newly qualified reporter, is missing out on all that experience I was able to tap into.

Speaking after the event Kós told me an anecdote about a mature student going to university here in Budapest and loving the lectures of a professor nearing retirement age.

It is not just about there not being enough people (that’s a problem too: today’s “macroscope” piece on the page opposite makes the point that construction could, finally, be in a position to become a driver of the economy, but may yet be held back by the shortage of workers); we have to find ways to encourage people to invest in themselves and build up experience. We also have to find ways to make much better use of the experience that is there, and to encourage the upcoming generation to tap into it.

fortepan.hu/Zsolt Pálinkás

MTI Photo: Tamás Kovács

The Budapest Business Journal, HU ISSN 1216-7304, is published bi-weekly on Friday, registration No. 0109069462. It is distributed by HungaroPress.

Reproduction or use without permission of editorial or graphic content in any manner is prohibited. ©2017 BUSINESS MEDIA SERVICES LLC with all rights reserved.

TAPPING into Experience

THEN & NOW

BBJ-PARTNERS

Hungary’s Prime Minister Viktor Orbán waves at the crowd after his speech for the March 15 national holiday in front of the National Museum, marking the start of Hungary’s 1848-49 Revolution and War of Independence. The black and white photo shows Deputy Regent István Horthy and his wife commemorating the same event in 1942 on Heroes’ Square, in front of the Museum of Fine Arts. (The center of the state commemoration has only relatively recently moved to the steps of the National Museum, where poet Sándor Petőfi is commonly seen to have launched the revolution in 1848 by making a short speech of his own.)

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2017. 03. 23. 16:56

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News

1 News | 3

///macroscope

Construction Sector to Kick-start Economy?

ZSÓFIA CZIFRA

T

he year has not started off very well for Hungary’s industry, second estimates of January industrial production figures confirmed. The volume of industrial output increased 6.5% yearon-year in January, but adjusted for working days, it only grew 1.6%, data from the Central Statistical Office (KSH) reveals. There was no change compared to the first estimate. On a month-on-month basis, industrial output in January – according to seasonally and working-day adjusted indices – was below December’s level by 0.1%.

Detailed data reveals that the volume of

industrial export sales rose

8.6%

in January compared to the same period of the previous year. The export of transport equipment, representing 35% of manufacturing exports, grew by 8.5%. In computer, electronic and optical products – the other significant subsection accounting for 15% of manufacturing exports – export volume increased 4.4%. Meanwhile, industrial domestic sales rose 7.6%, and within this, domestic sales of manufacturing were 2.2% higher year-on-year.

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Breaking it down by sections, it turns out that production grew 6% in manufacturing representing a decisive weight (93%) and 6.6% in mining and quarrying (having little weight). The output of the energy industry – electricity, gas, steam and air-conditioning supply – was up 11%, mainly as a result of much colder weather compared with the previous year.

Production declined in only two of the 13 subsections of manufacturing, and volume increases of between 0.9% and 28% were measured in the other subsections compared to the same month of the previous year.

main export markets, the JanuaryFebruary purchasing managers’ index (PMI) was well above 50 (56.1 in February for Germany, Hungary’s main foreign trade partner), and the Hungarian industrial processes will hopefully soon reflect such favorable business sentiment.

Growth Builds Slowly One other promising sign is that the construction sector finally seems to be getting back to life again. After a nosedive in 2016, Hungary’s construction sector started the year on a rather strong footing. Finally, the construction of buildings showed signs of recovery with an increase of 32.8% in January from the same

Subsections

Volume indices of production, corresponding period of previous year = 100 (%)

Share of subsection within manufacturing at current prices (%)

Manufacture of food products, beverages and tobacco products

101.1

10.2

Manufacture of rubber and plastics products, and other non-metallic mineral products

105.9

7.5

Manufacture of basic metals and fabricated metal products, except machinery and equipment

109.5

7.7

Manufacture of computer, electronic and optical products

104.9

12.3

Manufacture of machinery and equipment not elsewhere classified

128.4

6.9

Manufacture of transport equipment

108.2

29.2

What Next?

Outlook for the first half of the year is not particularly bright either, as orders stock and new orders data are not too strong: while total new orders in the observed subsections of manufacturing were 3.6% higher than those of the same month of 2016, the volume of new domestic orders decreased by 6.7%. On the other hand, new export orders went up by 5.1%. But even the not very dynamic 3.6% increase was produced on a very low base: last January, new orders fell a massive 18.8% year-onyear. Breaking that down, domestic orders fell 3% in January 2016 from January 2015, while export orders plummeted more than 20%. The volume of total stock of orders was above the level of January 2016 by 2.1%. Good news, however, is that in some Western European countries, Hungary’s

Source: KSH

Second readings of industrial output figures confirmed that the start of the year was not very strong for the sector, and order stock data is not likely to change course significantly in the coming months.

However, the slow revival of Hungary’s construction sector and the favorable business sentiment in Europe are promising.

Machinery Manufacturing Soars

period of last year, while civil engineering works fell by 3%. In a month-on-month comparison, construction sector output grew by 4.6% in January, adjusted for seasonal and workday effects. The volume of new contracts was 211.8% higher in the first month of the year than in the same period of the previous year, within which the volume of new contracts concluded was up 287.4% for the construction of buildings and 152.7% for the construction of civil engineering works. In the case of buildings, more contracts were signed to build sports facilities, industrial, warehouse and commercial buildings. At the end of January, the month-end volume of the stock of contracts of construction enterprises was 122.8% higher than the previous year’s low base. Within this, the volume of the stock of contracts – due to new contracts of high value in January

A 20% annual increase in the [construction] sector could add a full percentage point to GDP growth. On the other hand, some 40% of construction industry companies complain of a labor shortage, and this might pose a challenge in filling the sector’s big order stock.

– was 43.6% higher for the construction of buildings and 218.8% higher for the construction of civil engineering works than a year earlier. In absolute terms, construction sector output reached HUF 89.3 billion (EUR 288 million) in January.

The January rise had come on a low base, noted ING Bank chief analyst Péter Virovácz. He added, however, that a 20% annual increase in the sector could add a full percentage point to GDP growth. On the other hand, some 40% of construction industry companies complain of a labor shortage, and this might pose a challenge in filling the sector’s big order stock, he added.

The better results in the construction sector were supported by improved absorption of European Union funding, and the government’s CSOK home subsidy scheme also contributed for the increase, Economy Minister Mihály Varga commented on the KSH data on public television news channel M1. He said the data suggests a good year ahead, and the sector’s output could contribute to a GDP growth of more than 4% in 2017.

Numbers to Watch in the Coming Weeks The KSH will publish employment and unemployment data for the December-February period on March 29. Two days later, we’ll find out what the balance of the general government sector in the fourth quarter of 2016 was like. On April 4, KSH reveals whether the positive tendencies have continued in the retail sector, releasing its first estimates for February. A day later, all eyes are expected to be on the February industrial production figures (first estimates, followed by the final data on April 11).

2017. 03. 23. 16:56

4 | 1 News

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Budapest Business Journal | March 24 – April 6, 2017

Bosnia Means Business When it Comes to Intensifying Trade With Hungary Hungary is the tenth most important trading partner of the Republic of Bosnia and Herzegovina, but there are vast untapped opportunities in bilateral economic relations, particularly regarding Bosnia’s efforts towards EU accession, Minister of Foreign Trade and Economic Relations Mirko Sarovic tells the Budapest Business Journal. A new air route between the two capitals and a recently established joint working group in agriculture should further intensify cooperation.

Minister of Foreign Trade and Economic Relations Mirko Sarovic of the Republic of Bosnia and Herzegovina.

LEVENTE HÖRÖMPÖLI-TÓTH

You were in Budapest for a high-level meeting with Hungarian Minister of Agriculture, Sándor Fazekas. What were the main issues on the agenda?

Agriculture is the most crucial area of cooperation for the two countries, it accounts for at least one-third of the bilateral trade volume of some EUR 300 million. We firmly believe that Hungarian expertise could be well used in Bosnia in that sector by sharing not only hands-on industrial experience, but also best practices about how to call off and use EU agriculture funds effectively. In fact, some major projects have already been implemented with the heavy involvement of Hungarian experts. A joint working group in agriculture has also been formed that will be charged with specifying issues to be dealt with together.

How can Bosnia be helped on its way to EU accession?

We are getting official support from Hungary in our efforts to join the European Union. Fortunately, most of our products are no longer subject ADVERTISEMENT

“I am looking forward to the intensive work of our joint working group in agriculture that is expected not only to identify, but also start working on the most pressing matters of potential cooperation as soon as possible. We simply do not want to waste time, we are determined to move ahead for mutual success.” to any tariffs, but we strive for more, namely to reach and maintain EU standards for them in order to be competitive. Free trade and market

access are only two of the aspects in this respect, though, since border security often emphasized by Hungary, is also an important factor here.

Countries in the Balkans are now more vulnerable to migration pressure than those inside the EU, and physical protection should be extended to our borders as well which, I believe, Hungary would welcome too.

are exported in large numbers to Austria or Germany. For ambitious Hungarian businesses, it might well be the ultimate opportunity to supply their whole home country with that type of energy source at competitive prices. On the other hand, due to the great number of fast-flowing rivers, the green energy sector provides additional investment targets.

Bosnia is executing a comprehensive reform agenda agreed with leading international organizations such as the EBRD and the World Bank with the aim of restructuring the whole economy and making it more competitive. How can bilateral trade with Hungary boost economic growth that is now at 4.6%?

First of all, infrastructure needs to be improved greatly, establishing a direct freeway connection can add a lot and the launch of passenger flights between the two capitals will have the same multiplying effect. Sixty percent of our area is covered by woods, so we have a lot to offer in terms of furniture and wood, which sector of ours has a turnover of EUR 600 mln per year.

Opportunities exist in the metal industry as well. Other sectors present similarly strong perspectives, but it is true that agriculture still remains the number one priority in our bilateral trade relations.

Bosnia has a lot to offer in tourism as well with its Adriatic coast, the mountains that hosted the winter Olympics in 1984 and picturesque historic cities like Mostar. The air route launched from Budapest to Sarajevo in April should surely further intensify the influx of visitors?

I am absolutely convinced that this will bring enormous benefits for both countries since it is bound to boost tourism and businessmen will eventually start using the air route more frequently too. After all, what used to take an eight-hour drive is now covered by a one-hour flight.

Eximbank, a Hungarian government credit institution, has provided a credit line of EUR 61.5 mln for Hungarian businesses to make their move to Bosnia more easily. Where do you think they can prosper most?

Our tax regime is very business friendly, which by itself can be really attractive for foreign enterprises to set up their operations in our country.

Another excellent incentive is our free trade agreement with Turkey, thanks to which goods produced in Bosnia can find their way dutyfree to the large Turkish market.

Or, again, take wood, from which valuable pellets can be made that

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What does the schedule for deepening bilateral relations look like?

There will be a trade fair in Mostar in April where Hungarian companies will have the chance to make the case for their wines for Chinese buyers.

Next in line is a high-profile business meeting in Sarajevo scheduled for May where high-ranking trade diplomats and a select group representing the Bosnian and Hungarian business communities will attend. Later on, at some point in Budapest there should be another similar meeting we will be attending with our full delegation. And I am looking forward to the intensive work of our joint working group in agriculture that is expected not only to identify, but also start working on the most pressing matters of potential cooperation as soon as possible. We simply do not want to waste time, we are determined to move ahead for mutual success.

2017. 03. 23. 16:56

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Budapest Business Journal | March 24 – April 6, 2017

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The concept of charity running is wellknown in the United Kingdom and the United States. Amateurs cannot enter the major marathons in those countries any longer unless they are raising funds for a recognized. In Hungary, this is not yet the case. Even at the major Budapest races, out of 20,000 runners, only around 500 run for a good cause. So, it is time to make a difference…

It is possible to join Élménykülönítmény as an individual, but in the past six years, beside 2,000 individual runners more than 30 company teams have also joined the program. Teams of 4-20 colleagues prepared together for various races and raise funds for seriously ill children together. In the weeks preceding the race they contact friends, colleagues and families and asked for a contribution to their fundraising aim.

Every participant sets their own fundraising aim. For some, this could be HUF 150,000, but some company teams are more ambitious and target more than HUF 1 million. Whatever your goal is, joining the campaign is an excellent and unique way of team-building. Besides, it is also a great health program, it raises corporate loyalty and provides meaningful help for children suffering from serious diseases.

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Supportive materials and sample letters are very useful and the fundraising page is not complicated. The staff is available and ready to help. Thank you for the support we got throughout the campaign,” says Ildikó from Raiffeisen Bank Zrt. “I think, Élménykülönítmény is a great team building program. We are proud to

What is Bátor Tábor?

The Bátor Tábor Foundation (also known as “Camp of Courage”) organizes therapeutic camps and programs for seriously ill children. Campers take part in programs they would otherwise miss out on due to their illness.

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2017.03.14. 10:15:22

2017. 03. 23. 16:56

6 | 1 News

REAL ESTATE NEWS

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Budapest Business Journal | March 24 – April 6, 2017

HB Reavis Starts Construction of Agora Budapest Around 12 Budapest office HB Reavis has been given planning consent for developments are planned for delivery “The main goal for us its latest Budapest office project, the 138,000 in 2018-2019, however in the current market environment a significant when designing Agora sqm Agora Budapest in the ever-fashionable Váci proportion of this space is thought was to deliver a scheme likely to be pre-leased before delivery. corridor; construction has now started on the first Radnóty expressed confidence that that fits into the texture phase. The name is taken from the ancient Greek Agora will be successfully let due to quality of the space, its location of the city but at the for a “gathering place” or “assembly”, and refers to the and the provision of spaces of up to same time brings modern the main square and center of civic life in the Greek 4,500 sqm. new architectural value city-states. It emphasizes the provision of public WELL Building to the city.” spaces in the design of the development, according Standard HB Reavis expects to obtain BREEAM to HB Reavis.

GARY J. MORRELL

Agora will consist of five office buildings distributed around three public squares. Once completed it will deliver 136,000 sqm of office space and 11,000 sqm of retail area, and has been designed by the London-based Make Architects and Hungary’s Finta Studio. The longterm, phased development project is scheduled for eventual completion in 2023 and will offer space for

12,000 staff.

“The main goal for us when designing Agora was to deliver a

scheme that fits into the texture of the city but at the same time brings modern new architectural value to the city. An equally important aim for us was to deliver a new work and leisure destination,” said Zoltán Radnóty, CEO of HB Reavis in Hungary, at a presentation of the project.

In the first speculative phase of the development, Agora Hub will deliver 34,500 sqm of office space and 6,000 sqm of retail and service space on eight levels; it is due to be completed by the end of next year. HB Reavis hopes to gain planning permission for the second phase, Agora Tower, this summer.

“Outstanding” certification for the project, along with the relatively lesswell known “Platinum” WELL Building Standard from the International WELL Building Institute (IWBI), a public benefit corporation whose mission is to improve human health and wellbeing in buildings and communities across the world, and was established in 2013. “I would say that BREEAM relates to the sustainability of a building while the WELL certification system looks to improve the wellbeing of users of an office project,” comments Radnóty.

Agora will provide electric car charging points, now commonplace in HB Reavis developments, in addition to

bicycle storage provision and changing facilities.

The first Budapest office development by HB Reavis, the 21,000 sqm Váci Corner, was delivered in 2014 and subsequently sold to Zeus Capital Management for a reported EUR 55 million. The development company was founded in Bratislava in 1993 and now operates in, Hungary, Czech Republic, London, Poland, Slovakia, and Turkey.

The company says it currently has one million sqm at the construction, planning or permitting phases. In Warsaw, it has started construction of the 140,000 sqm Varso Place that includes a 230-meter tower, making it one of the tallest buildings in Europe.

Atenor Continues Development of Váci Greens international companies look for green and highly cost effective office spaces in Budapest, but there were few options,” said Atenor.

The office markets in the four core Central European capitals (Bratislava, Budapest, Prague, and Warsaw) are benefiting from booming economies and strong demand according to JLL. A strong supply of new developments is expected across all countries.

Over the past two years Budapest has ranked second among the Central European capitals in terms of modern office stock. Warsaw, with more than five million sqm of modern office space is the largest Central European market, followed by

Atenor is scheduled to deliver the 15,500 sqm Building “D” (fourth phase) of its Váci Greens office project in Váci út in the fourth quarter of this year or first quarter of 2018.

Budapest with

3.36 million sqm,

GARY J. MORRELL

“We will start the design process, apply for building permits and break ground on the next 25,000 sqm phase of the project. Our confidence in this speculative development reflects the huge demand for office space in Váci út,” said Zoltán Borbély, managing director of Atenor Hungary.

Buildings “E” and “F”, due to commence in 2018-2019 will add a further 50,000 sqm of speculative space.

Upon final completion, Váci Greens will consist of six buildings with around 130,000 sqm of phased office space.

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The 16,000 sqm Building “A” is 90% let and was sold to a private Hungarian investor. The 24,700 sqm Building “B” is currently 87% leased and has been purchased by OTP Prime and the 18,500 sqm Building “C” is fully let and has been acquired by the Slovak investor, IAD.

Cost Effective The Váci Greens development has achieved BREEAM Excellent accreditation. “When we started the planning of the development in 2008, we saw that the most important

Prague has 3.21 million sqm and Bratislava 1.62 sqm. “All four markets have witnessed a surge in demand which has further encouraged the construction of new offices for delivery in 2017 and 2018,” said JLL. Atenor is looking for further development plots in Budapest, possibly 50-50 office and high-end residential.

2017. 03. 23. 16:56

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Business

Business

It’s Good to Talk. Itʼs Also Vital

People-Technology Conundrum

In the mid-1990s, the United Kingdom’s legacy telephone monopoly, then called British Telecom, had a massively successful advertising campaign built around the simple slogan “It’s good to talk”.

PwC’s country managing partner Nick Kós could have borrowed that for the launch of the sixth annual Hungarian CEO survey; “talking to people” was one of his key takeaways from the evening event at the Várkert Bazár on March 9.

ROBIN MARSHALL

“Building trust in society, realizing that we have to maintain trust in business,” had become more important in the latest survey, he noted. He talked of a widening generation gap between the millennials companies are hiring and the current crop of CEOs. Speaking at the start of the event he said, “When we went to university we did not have Google or computers. Now we

are trying to say to people who grew up with that: ‘Come and be an auditor with us, work hard and you will have an exciting career’. That generation gap between us and the CEOs was not there when we joined our companies.”

It has become something of a cliché to talk about the sense of entitlement of millennials, and Kós acknowledges that can be a problem, but talking exclusively with the Budapest Business Journal after

Nick Kós, PwC Hungary’s country managing partner.

the event he noted that companies also have to find a way of talking to the new generation. If CEOs can’t do that, he fears a “lost generation” of talented people who have built up an impressively long resume of companies they have worked for without developing enough experience to maximize their careers.

He also spoke about the “people-technology conundrum”: AI and robotics may offer a future solution to the skills shortage, but not right now. “We are trying to get people in to do stuff we won’t need people for in a few years,” Kós said. Summing up at the end he added: “We are going to have to try to bridge the generation gap.” The talents that are now most treasured are not just “those who have the right skills, but people who are prepared to invest in developing their career”, he says.

And they seem harder and harder to find.

“Are we communicating properly with people?” he asked. “We have to explain ‘you can come in and you will get the experience; if you work hard you can build career’,” he told the BBJ. “We seem desperate give them what they want rather than explaining what they need. We are reacting tactically, and for our businesses that is not sustainable.

We have to find a way to encourage them to invest in their careers.”

For a detailed analysis of the business survey, see “PwC Reveals Hungarian CEOʼs Mindset in Sixth Survey” from our last print issue, also available online.

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for all of humanity, and serves as a model of technology transfer for universities around the world.

Many scientific discoveries with tremendous commercial potential never leave the research lab. Researchers often understand great market potential for their inventions. But since their scientific work is complete, there are no scientific grants to take the idea forward, and no new results to publish in research journals, the researchers canʼt afford to dedicate the resources and time necessary to commercialize the idea; and the industrial sector does not buy ideas. So between lab and market there stretches a death-valley of technology transfer.

The Prototyping Lab is a virtual laboratory, a rigorous program guiding the commercialization of projects from researchers in all disciplines at Bar-Ilan University. Behind each commercialization project is a thorough market assessment.

The researcher proposing the project conducts this assessment with assistance from the lab. Together they determine which market could benefit from the discovery, and what must be shown to the companies who could potentially commercialize the technology. They also

Rabbi Professor Daniel Hershkowitz. determine what must be demonstrated to prospective industrial partners in order to persuade them to invest in the project.

Roadmap to Investors For each project, the researcher, together with the Prototyping Lab team, defines a roadmap detailing how to proceed from basic, to commercial potential, to potential investors. On average, the timeline from initial contact with the lab to actual prototype is two years.

Projects proposed to the Prototyping Lab are reviewed by a professional committee comprised of experts from the

R&D areas salient for each project. Criteria for acceptance include its promise in addressing real world needs, strong market potential, and effective representation of the university’s excellence in research through commercialization. If accepted, the committee monitors the project from start to finish, making sure that it meets all its objectives on schedule. To date, Bar-Ilan University is the only university in Israel that has a framework like the Prototyping Lab. Other universities do, in principle, encourage technology transfer and support it in practical ways; but at no other Israeli university is there such an organized framework with such a level of guidance and accountability. Bar-Ilan is reinventing the way R&D is conducted in order to achieve scientific excellence in our rapidly changing world, and to make a difference in the lives of people everywhere.

Rabbi Professor Daniel Hershkowitz is the President of the Bar-Ilan University and former Minister of Science and Technology of the State of Israel. Hershkowitz will deliver his keynote address, “From the Innovative Scientist to the Innovative Society” on March 31, at the think.BDPST Conference.

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Bayer Hungária Kft. Names new CEO

Schoenherr Hungary Welcomes new Partner

Krisztina Kárpát has been appointed managing director (MD) of Bayer Hungária Kft., a move that took effect from January 1. She has also retained her position as head of accounting.

Kárpát, who has experience in the finance and economy fields, started working at the company in 2006 as chief accountant and held the position until 2011. From 2012-2013 she worked as accounting manager in the center of the company in Leverkusen, Germany. In 2013 , she returned to Hungary, and was named director of finance at the Hungarian firm, being also responsible for the professional management of accounting of CEE countries at the same time.

Zita Albert joined Schoenherr, the Central and East European full-service law firm, as local partner in Budapest in February. The Hungarian attorney, with more than 13 years of experience in mergers and acquisitions, joint ventures and private equity transactions across the CEE region will lead Schoenherrʼs corporate M&A team in Budapest. “In the last few years we have seen an increase in deal flow coupled with ever more intricate corporate mandates.

Having advised on complex domestic and cross-border transactions, Zita brings Schoenherr a wealth of corporate experience in a range of business sectors, such as energy, banking and private equity,” commented Kinga Hetényi, managing partner of Schoenherr Hungary. “We are thrilled that she is strengthening our corporate M&A practice and we welcome

her to the team.” Albert was previously a counsel in the M&A, private equity and capital markets practice groups of a leading international law firm, where she worked for more than ten years and represented major international and domestic companies and private equity firms in M&A and capital markets transactions. She is a graduate of Eötvös Loránd University in Budapest, where she received her doctoral degree in law, and also attended the University of Leipzig in Germany on a year-long scholarship. A native Hungarian, Albert speaks fluent English and German.

Kinstellar Hungary Appoints new Senior Associate Marcell Horváth has been appointed senior associate at Kinstellar Hungary, joining the law firm’s Real Estate and Construction team. “Marcell brings substantial experience in

real estate matters, particularly in relation to construction projects,” the law firm said, adding that he has experience in advising on a variety of commercial, industrial and residential developments, including leasing, acquisitions and disposals, as well as associated litigation.

Previously, Horváth was an in-house legal counsel at a leading European construction company for more than six years, during which time he managed several high-profile civil engineering and infrastructure projects, including claim management and defect liability issues.

He is seen as bringing a breadth and depth of experience to Kinstellar in the real estate and construction industry, having advised from the perspective of both investor and contractor. “I’m delighted to join the team. Kinstellar has a reputation and offering to be proud of across Emerging Europe and Central Asia. I’m looking forward to working with such a highly active and well-regarded real estate team as it continues to grow its presence on the market,” said Horváth. “It is with great pleasure that we welcome Marcell to our expanding real estate team. His breadth of experience in a number of areas will be of significant value to our clients and a great asset to us as we continue to secure more mandates,” added Anthony O’Connor, partner and acting head of real estate at Kinstellar Hungary.

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Jeantet Budapest Appoints new Attorney

qualified in various other jurisdictions and able to provide legal services in Hungarian, French, English, German, and Romanian.

Bíborka Jójárt joined the Jeantet Budapest team as an attorney as of February; the law firm expects the move to reinforce its M&A and employment practices.

Jójárt has more than 14 years’ experience in M&A, corporate restructuring, employment and labor law, as well as compliance. “Bíborka’s hire is new proof of our firm’s involvement in the Hungarian and regional market, and of our capacity to attract new talents,” said François d’Ornano, who is in charge of the Central European activities of Jeantet.

The law firm’s Budapest office opened in November 2015 and thus far has built up a team of 12 lawyers, covering all fields of business law, namely corporate transactions and M&A, real estate transactions, restructuring, competition and state aid, labor law, data protection, e-trade, litigation, finance and banking, and insurance law, the company says. The Hungarian team, managed by its partner dʼOrnano, is also active in the Southeast European region, with members of the team

Sár and Partners Attorneys at Law Welcomes new Managing Partner Ildikó Komor Hennel has been appointed managing partner of Sár & Partners, taking effect from January. She joined Sár & Partners in 2000, subsequently becoming a partner in 2003.

She has expertise in providing legal representation in complex lawsuits concerning the infringement of intellectual property rights. Amongst other organizations, she is a member of the Hungarian Intellectual Property and Copyright Association, as well as the Hungarian Trademark Association. She is frequently seen in the media; recently her name appeared during the patent lawsuit against Adidas Hungary. “With the joys of this position also comes a significantly larger workload as well as responsibility,” said Komor Hennel. “We shall continue to

pay close attention to the latest market trends affecting both domestic and international intellectual property matters.

We continuously strive towards constant innovation in our professional fields, as well as in the field of academics, a part of which is our lecturer’s agreement with the Law Faculty of the University of Szeged.

However, our top priorities remain unchanged: the appreciation of our clients and the representation of their interests by the highest professional standards achievable,” she added.

CMS Hungary names new German professionals Andreas Köhler has been appointed partner and head of CEE German projects at CMS Hungary, taking effect from March 16.

He is joined by senior associate and native German and Hungarian speaker, Gabor M. Toth.

Köhler brings more than 15 years of experience working on regionwide transactions, dispute resolution, commercial, and employment matters on behalf of international, in particular, German, Austrian and Swiss clients.

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He is based in Budapest and will work closely with regional practice and sector heads in the CEE & DACH regions and beyond. He joins CMS from Dentons in Budapest, where he was head of the Hungarian Corporate and Commercial practice and co-head of the firm’s global German practice.

Senior associate Toth, who will work with the commercial and German desk groups, joins Köhler at CMS in Budapest.

“German, Austrian and Swiss companies are key investors in the region and Andreas’ experience is a perfect fit with our strategy to expand our offering for these clients on a crossborder basis. Andreas and Gabor both have outstanding reputations in the market and having them on board will further deepen CMS’ leading position in the region,” said Dora Petranyi, CEE managing director.

“Our German, Austrian, Swiss and CEE offices are recognized leaders in their local markets. I am confident that Andreas’ tremendous experience working with investors, developers and large companies from diverse sectors will ensure that we are well placed to maximize on opportunities across the region. We are delighted to welcome Andreas and Gabor to the team,” said Iain Batty, head of the CEE commercial practice.

“I am excited to be joining CMS, alongside my colleague Gabor. The region continues to be very active, and CMS’ strong presence and experience in the market will provide fantastic opportunities for us to further develop the German practice,” said Köhler.

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Budapest Business Journal | March 24 – April 6, 2017

Special Report Logistics Improving Logistics Market11 Logistics now an Attractive Investment12 Hungary Still in the Logistical Top Ten13 Budapest Airport Cargo: a Growing Giant 14

Hungary’s logistics market is attracting attention, though getting in may not be so easy.

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Budapest Business Journal | March 24 – April 6, 2017

Special Report | 11

Hungaryʼs Improving Logistics Market

supply of quality logistics and industrial Industrial developers product, any space coming onto the market is quickly leased. Industrial hubs have are in a strong not developed outside of the capital as the position with growing majority of demand and development is in the greater Budapest area. demand and limited Market take-up has increased from 260,000 sqm in 2015 to supply; established 430,000 sqm European industrial in 2016, park developers/ while new supply grew to 76,000 sqm 2016 compared to just 5,000 sqm in operators are seeking for the previous year according to global commercial real estate services firm to enter the market Cushman & Wakefield (C&W).

Vacancy is expected to fall as prethrough built-toleases absorb space under construction. suit (BTS) deals. The Limited availability is putting upward pressure on rents for new units. Headline small number of rates for new product are expected to approach EUR 4/sqm/month and rental development sites is incentives are falling. According to the a barrier to market Budapest Research Forum (consisting of CBRE, Colliers International, C&W, entry, however, as Easton International and JLL), vacancy the two million sqm Budapest established developers inindustrial market has fallen to 7.6% from have land banked and a high of 24%. Take-up for last year reached a record 428,000 sqm; more than most of the available 90% of the 72,000 sqm of 2017 pipeline is already pre-let. industrial complexes have already been Sporadic Speculative Development purchased.

Speculative development remains

GARY J. MORRELL

Developers already active in Hungary, wary of high vacancy rates that were a feature of the market in the post-economic downturn period, are in general pursuing the more cautious BTS development approach, with an additional smaller proportion of speculative development.

Reflecting the strong demand for a limited

sporadic in the view of Gergely Baka, head of industrial and logistics at CBRE Hungary. That said, developers are adding speculative buildings to existing parks. In exactly this way Goodman has delivered 22,000 sqm of space at its Gyál Logistics Center where 4,700 sqm was pre-leased to third-party logistics service provider ADR Logistics. “The pre-lease contract is sound proof that there is strong demand for high quality logistics space in the Budapest region. The ready-to-let

space now available in Gyál will enable us to respond to demand,” comments István Kerekes, head of Goodman Hungary.

It has three industrial facilities in the Budapest area and one 95 km southeast of the capital in Kecskemét. The company says it has development land with the potential for construction of around 130,000 sqm of space.

“Developers are of course much keener to do BTS: in such cases the tenant is secured while the new project will provide an opportunity to perhaps develop some areas for speculative leasing also,” says Gábor Halász-Csatári, head of industrial at C&W. “With a vacancy rate just over 7%, tenants barely have an opportunity to expand or relocate. Companies are now increasingly seeking good quality and well-located space, while pricing seems to be of less importance. To satisfy the demand, developers will have to begin new speculative projects in due course.

If deliveries are to be completed in the second half of the year, developments will have to be started in the first half of 2017,” Halász-Csatári adds.

Prologis, a leading owner, operator and developer of industrial real estate, says it sees “a growth in disciplined speculative development”. The company has delivered two speculative buildings totaling 21,500 sqm at Prologis Park Budapest-Sziget DC7 that are fully let to the international transport and logistics services provider Waberer’s.

“This year I think there will be mainly built-to-suit development in Hungary,” comments László Kemenes, country manager at Prologis Hungary. “We have land and the permits to undertake [further] speculative development when the time is right. Our [last] speculative development was leased two months after delivery.”

The three Prologis projects launched last year and totaling 43,000 sqm are now 100% let. Occupancy for Prologis in Hungary stands at 98%, slightly outperforming the CEE average for the company at 96%.

Tamás Beck, head of industrial at commercial real estate services firm Colliers International Hungary (which celebrates its 25th anniversary in 2017), puts pipeline for the year at 100,000150,000 sqm.

Regional Development Although Hungary lacks regional logistics hubs, C&W’s Halász-Csatári expects more industrial development in the regions. “A good example is the developer CTP; automotive is anyway predominantly located outside Budapest and the Hungarian government is further supporting development through its NIPUF organization. This trend is rather for industrial buildings and not so much for logistics, which remains Budapest-centric,” he explains.

One real growth area for logistics in Budapest is the area surrounding the Ferenc Liszt International Airport. The developer, investor and asset manager, CPI Hungary has moved into the logistics sector with the development of Airport City Logistic Park with a total stock of 35,000 sqm and 21,000 sqm of further development potential. Current occupancy is above 94%.

If speculative projects are undertaken, the vacancy rate may fluctuate, although it is not expected to go above 9-9.5%. C&W see this as driven by stable demand, coupled with low vacancy and increasing development costs.

Market entry for new participants is not regarded as straight forward, however. “Most of the companies present in Hungary have bought themselves in already, and there are hardly any existing products to be purchased.

Local park operators have grown their portfolios significantly over the past two years. The only real entry point may then be a BTS or built-to-order project,” concludes Halász-Csatári.

EXPERT OPINION

Constant Evolution at Airport City Logistic Park CPI Hungary manages a logistic site, Airport City Logistic Park, with a total stock of 35,000 sqm big box buildings and 21,000 sqm further development potential. Last year the real estate company finished construction of the fourth phase of the park. The 6,700 sqm built-to-suit (BTS) warehouse provides special logistic functions and was handed over as the new headquarters of an international logistic company.

A new road connection has been added to the park, which provides an efficient, quick accessibility to Liszt Ferenc International Airport.

The new facility was built in six months only, one month ahead of plan, which CPI identifies as a record. “We are delighted that the American market leader express

András Bodahelyi, leasing manager, CPI Hungary. delivery service company mandated CPI to develop a 7,000 sqm brand new warehouse considering its specific needs, and innovative technical requirements,”

says András Bodahelyi, leasing manager at CPI Hungary. Flexibility, client orientation and innovative project management have been named by Bodahelyi as the factors leading to the fast-tracked finish.

CPI Hungary manages a wide range of portfolio with a total value of EUR 312 million and a total floor space of almost 247,000 sqm, and is active in the office, retail, logistics and hospitality segments.

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

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Special Report

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Budapest Business Journal | March 24 – April 6, 2017

Logistics now an Attractive Investment

Central Business Park and the two fully leased buildings totaling 31,000 sqm for the Prologis European Property Fund 11 (PEPF 11). The logistics center has become part of Prologis Park BudapestSziget, the logistics park consists of seven buildings totaling 150,000 sqm.

László Kemenes, country manager at Prologis Hungary, noted that it now takes longer to build your own projects. “The development period from being granted a permit to delivery is increasing due to a shortage of labor,” he said.

Another CEE and European logistics park operator, CTP, has also been active in building up its Hungarian portfolio with the acquisition of a 34,000 sqm logistics facility at Üllő and the purchase of a logistics facility in Tatabánya for redevelopment into CTPark Üllő and CTPark Tatabánya. The purchases were financed by UniCredit Bank. CTP has a dual policy of both developing and buying up available industrial parks.

“In Hungary, last year we grew both by acquisition and organically. Our portfolio there currently stands at around 300,000 sqm, making us the second largest developer in the country after only one year of activity,” commented Radek Zeman, CFO of CTP.

As conditions improve in the market, more international industrial operators, developers and investors are looking at the investment possibilities or expanding their portfolios.

GARY J. MORRELL

The two methods of market entry are essentially through development or acquisition. The former requires a suitable development plot in a location with direct access to major transportation links and access to a labor force, preferably in a recognized logistics hub. The latter solves the problem of sourcing a site and overcomes the necessity for permitting and construction. The development process is becoming longer and more expensive, due in part to a shortage of labor. However, due to the low industrial development in recent years there is a limited supply of industrial assets that confirm to the needs of investors and industrial park operators. Further, park operators tend to keep acquisitions in their logistics portfolios for the longer-term once they have made an acquisition.

Land Prices Rising CTP sees a continued concentration in the industrial real estate sector in both Western and Central Europe. At the same time, there is price pressure due to greater complexity and difficulty in acquiring the necessary permits. The company sees a significant increase in the price of land as a direct result of the permitting issues.

The volume of industrial investment is regarded as difficult to predict, as there is very limited supply/product and the bigger developers like Prologis, CTP and Goodman tend to keep product in their own hands.

“There is a definitive lack of investment grade industrial stock as strong market players have been actively increasing their portfolio in the last 12 months. For the time being there is not much left to acquire, which is institutional quality. We see

“The development period from being granted a permit to delivery is increasing due to a shortage of labor.”

In general, industrial transactions have been through the acquisition of regional industrial platforms, a single purchase by an investor or through the purchase of parks as part of the development of a logistics portfolio, with park owners undertaking any necessary value-add development.

The Hungarian investor Diófa Asset Management has purchased the 34,000 sqm South Pest Business Park from Wing for HUF 9 billion. The park will be placed in the Magyar Posta Takarék Property Investment Fund, Hungary’s second largest domestic open-ended fund. The city logistics scheme is located in District IX and is 90% occupied. “Diófa Asset Management represents four property investment funds and is committed to building a diversified portfolio in Hungary to continuously generate sustainable income for its investors. Besides a strong modern office stock, the company started to build a retail portfolio in 2016. With this new deal, the industrial share of the property portfolio increased from 9% to 20%,” said Diófa.

Europe-wide Deal As part of a Europe-wide portfolio transaction, Logicor, the logistics platform

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yields at

8-8.5%

of the German Blackstone, acquired the Immofinanz logistics platform with more than 100,000 sqm located in Hungary.

The deal was seen as significant in that it represented clear evidence that Hungary is again regarded as an intrinsic part of the CEE logistics network.

Last year saw EUR 235 million in investment activity in the Budapest

industrial sector according to CBRE. This represents a small proportion of total investment volume for 2016, with industrial (the segment to which logistics belongs) behind both office and retail. Although platform acquisitions such as Logicor’s are relatively rare, a number of single asset acquisitions are expected for the year.

Prologis has already acquired the M0

in the Budapest region,” said Balázs Simonyi, leasing director at CPI Hungary.

CPI manages the Airport City Logistic Park with a total stock of 35,000 sqm and a further 21,000 sqm further development potential. The park has a current occupancy of 94%.

“Acquisitions is mainly a yield consideration, but we are not against increasing logistic share within the portfolio. Never-the-less, exploiting development potential on our existing site is our primary goal as we strongly believe in this proven location,” he added.

Ferdinand Hlobil, head of CEE industrial at Cushman & Wakefield, estimates industrial yields for Hungary at around 8%, compared to 6.25-75% for Czech Republic and Poland, Slovakia at around 7.7% and Romania at 8.8%.

A further investment deal regarding the acquisition of a logistics center by an international investor is said to be underway.

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Budapest Business Journal | March 24 – April 6, 2017

Special Report | 13

Hungary Still in the Logistical Top Ten

logistics providers and HungarianLogistics hot spots are owned companies offering sophisticated services, consistent flexibility, complete changing both globally reliability and competitive prices. Logistics and nationwide and outsourcing is a clearly successful business structure in Hungary, with fourchoosing a location fifths of the companies who have chosen outsourcing declaring themselves satisfied for a new logistics with the results,” HIPA says. facilities is becoming more intricate than ever Diverse Range before. Prologis Hungary As revealed in a study published last month by Cushman & Wakefield European says that key factors Research Group, prime logistics space in Budapest costs EUR 43.2/sqm/year; that determining location is up 2.9% compared to last year. Hungary choice include proximity offers a diverse range of industrial parks: investors can currently choose from among to economic centers more than 210 operating sites, depending on their business requirements. and the presence of Among the biggest logistics service providers, Rail Cargo Hungaria recently modern and efficient improved its eastbound traffic conditions, infrastructures. Thanks having last week joined to the “Rules for the Use of Freight Wagons in International to its location in the Traffic” (PGV) Agreement, run by the Organization for Cooperation between middle of Europe, Railways (OSJD). The move takes effect Hungary is still in the from July, and is significant because the rail service says it has seen dynamic top ten of the favorite growth in its traffic with wide-gauge wagons in the first two months of this year destinations.

CLAUDIA PATRICOLO

Hungary is also close to four non-EU countries, orienting market flows to Europe’s major consumer markets. Many companies have already taken advantage of this, expanding their own market in unconventional directions: for example, Deutsche Telekom used Hungary to reach Macedonia, and METRO found it could approach Croatian market.

According to a survey published by the Hungarian Investment Promotion Agency (HIPA), logistics is essential to competitiveness and good services.

Hungary’s potential lies not just in its central location, but also in its excellent road infrastructure, being in close proximity to an international airport and having access to a skilled labor force. “The Hungarian logistics market includes both the world’s largest contract

(Hungary uses the standard Western rail gauge; Ukraine and Russia a wider gauge).

The amount of goods in tons entering Hungary at the border town of Záhony was 50% more than in the same period of the previous year.

“The accession to the agreement enables the company to enter a contractual

“The Hungarian logistics market includes both the world’s largest contract logistics providers and Hungarian-owned companies offering sophisticated services, consistent flexibility, complete reliability and competitive prices.”

relationship on a normative basis with all potential wide-gauge forwarders and wagonkeepers, creating a stable and predictable technical-operational and commercial terms for using wide-gauge wagons,” Rail Cargo said in a statement on its website.

“The accession improves our companyʼs competitiveness, for the direct connection saves the services fees paid to brokers before, accelerates the administration and ensures the full control of the financial accounting process. With the simplification of processes, the transportation time becomes shorter as well.”

Bridge Between Markets Acting as a bridge between Central and Eastern Europe and various neighbor markets, like all the countries bounding the Black Sea or the Balkans, Rail Cargo will at least be able to confirm it position as number two in Hungary’s ranks. The company says it offers innovative logistics solutions such as a special transloading system, the storage of goods in roofed or open loading platforms and the creation of consignment units with shrink foil. Based on the requests of its clients, Rail Cargo says it can provide information about the precise location of a shipment, time data, and any other query in connection with the carriage deadline, or running schedule of consignments in transport.

Magyar Posta, meanwhile, currently the leading logistics service provider in Hungary, and owned by the state, is planning to design a new tracking system, having gained EU funding for the total amount of HUF 4.3 billion (HUF 2.4 bln of which is a non-refundable grant).

During a press conference held last week, Andrea Bàrtfai-Mager, government commissioner responsible for Magyar Posta financial services, said the stateowned postal service is trying to pay more attention to clients’ needs, creating this track and monitoring service that will also accelerate the digitalization process.

This new program will also help Magyar Posta becoming more competitive in the logistics sector, and especially the e-commerce, considering that logistics hubs should always follow the newest trends and now the most important ones are e-commerce and sustainable projects.

The main strategic goal of Magyar Posta, as Bàrtfai-Mager explained, is to maintain and strengthen its leadership position in the market, even considered the numerous obstacles represented by the nationwide lack in the logistics sector of human resources and qualified labor skilled. One means of filling this storage could be the salary increase of 30% planned by the end of 2019, so that also Magyar Posta could hire more professional and better qualified people, the commissioner said.

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Special Report

Budapest Airport Cargo: a Growing Giant

Having reached an all-time record in 2016, cargo traffic at Budapest’s Ferenc Liszt International Airport saw a strong start to this year. That momentum is expected to keep pace throughout 2017, possibly setting a new record by year’s end.

The Budapest Business Journal discussed the latest trends with József Kossuth, cargo manager at airport operator Budapest Airport Zrt. CHRISTIAN KESZTHELYI

Last year’s cargo volume of 112,143 tons was a 22.7% volume increase over 2015. It seems to be a trend that is continuing. “In JanuaryFebruary we had 31.7% increase and 4,461 tons’ incremental cargo volume; compared to the already strong 2016 performance, it looks like very good,” says Kossuth.

“If we want to see where Budapest Airport is at the moment, according to ACI [Airports Council International, the global trade representative body of airport authorities], the growth rate was 3.5% globally and 4.1% in Europe in 2016. Certainly we forecast a further increase for 2017, albeit with lower percentages.” Kossuth notes that the launch of Qatar Airways Cargo flights from March 3 last year was a major catalyst for the 2016 volume growth.

Together with increased cargo volume and recent real estate developments at the airport, there seems to be room for further optimism.

“We can really feel something has started around our cargo [operations].

The numbers are nice, as is the whole environment. I guess the cargo community is more positive than two or three years ago,” says Kossuth.

Room to Grow With increasing industrial production in Hungary and CEE, and Western European hubs still handling a lot of cargo from the region, there is clearly room to grow, room Kossuth says BUD, as staff refer to the airport, plans to exploit. “With a better cargo environment at BUD, which also includes better infrastructure, we can gain further volume. There are big development projects at the airport: there are two ongoing construction projects for the integrators [companies that control a comprehensive air and road small package delivery network throughout Europe and beyond], which will bring 16,000 sqm of new air cargo handling facility to BUD in 2017, and we are working on the preparation of our Cargo City, which will be a new cargo handling facility for the freighter and belly cargo business in itʼs the first phase,” Kossuth tells the BBJ. Cargo City is expected to be handed over by the end of 2018. “It will bring extra handling warehouse capacities in a centralized building with all the storage we need for special cargo,” Kossuth says.

The new facility we will be much closer to the aircraft than the current warehouses, and will provide an easier airside and landside approach for ground handling. “I believe cargo flow is similar to a stream, and it moves like water: it always finds the best way, the most efficient, smoothest route, by-passing obstacles. Cargo City will improve our position in this regard, and will bring more cargo to BUD,” Kossuth predicts.

Budapest Airport has three chief cargo segments today. First there are the dedicated cargo flights from Cargolux, Turkish Airlines Cargo, and Qatar Airway Cargo, which operate a combined total of nine inbound and nine outbound flights a week, connecting the airport to Hong Kong, Luxembourg, Istanbul and Doha.

Beyond cargo planes, there is also an increasing long-haul passenger flight network of wide-body aircraft with cargo capacity — including Air China’s Beijing flights, and Air Canada’s flight to Toronto. Last but not least, there is the integrator market: all four major firms — DHL, FeDEX, TNT and UPS — operate scheduled flights connecting the airport with their Western European hubs. “This is a good portfolio, there are not so many airports where all three segments are present and growing,” says Kossuth.

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Budapest Business Journal | March 24 – April 6, 2017

CEU COLUMN

Renault’s Successful Dacia Logan Project Paul Lacourbe Economist ADJUNCT FACULTY CEU BUSINESS SCHOOL

The Dacia Logan is a low-cost vehicle launched by the Renault group in Romania in 2004 with a price tag of a little more than EUR 5,000. It is one of the most impressive success stories for low end products serving emerging markets.

Although simple, the Dacia Logan has all the basics of a modern car, especially in terms of security and reliability. With high quality major systems (engines, chassis etc.), it is able to cope with the different road infrastructures and maintenance services in developing countries.

When production started in Romania in 2004, most competitors of Renault wondered about its quality level and market potential. Thirteen years later, Dacia Logan turns out to have been a huge success, with no real competitors in all major markets (Eastern Europe, Western Europe, South America, Middle East). The Dacia factory in Pitesti is the center of the whole manufacturing program and Dacia cars are now manufactured in seven assembling plants, in Romania, Russia, Morocco, Colombia, Iran, India and Brazil.

Valuable Insights A close look at Dacia Logan’s success provides valuable insights in what drives product success in emerging markets. For the Logan project, Renault employed several major techniques, all of which are transferable to low-end manufacturing: (1) “Design to Cost” principle The “Design to Cost” concept was introduced by Renault in

BBJ_2506_special_report.indd 14

When production started in Romania in 2004, most competitors of Renault wondered about its quality level and market potential.

Thirteen years later, Dacia Logan turns out to have been a huge success.

1992, with a decisive step in 2004 of full application on the Dacia project. This principle directs the whole design towards a process of reliability and savings and the use of solutions that are already tested.

Components are designed according to a cost target, which is determined according to the price the customer is ready to pay (2) Focus on essential elements This practice is known as “Design It Simple” within Renault, that is, withdrawing everything nonessential. Renault carried out a customer survey to sort out what was essential and what was superfluous. Detailed analysis concluded that security and reliability are two essential factors from the perspective of potential clients. Therefore, no compromise is made on components related to these two factors.

(3) Reducing the number of components and types of material employed The whole car is impregnated with this strategy. The lines of the car are designed to reduce stamping costs.

The radiator grill is integrated with the shield and cast in one piece, a design technique now very popular in new car developments.

(4) Localization of material and labor.

Manufacturing represents

10% to 15%

of the total costs of a car. The decision was taken to manufacture the Logan in a country with labor costs very close to the country where the car would be sold.

This column is part of a continuing series of opinion pieces from experts at the CEU Business School in Budapest. The opinions stated here do not necessarily reflect those of the Budapest Business Journal.

2017. 03. 22. 19:17

www.bbj.hu

3

Budapest Business Journal | March 24 – April 6, 2017

Special Report | 15

CEE Logistical Development Reaching Pre-crisis Levels

GARY J. MORRELL

Cushman & Wakefield (C&W) recorded 5.7 million sqm of industrial space leased in Central Europe (Hungary, Czech Republic, Poland, Romania, and Slovakia) in 2016, representing a 25% increase over the preceding year. Poland and Czech Republic accounted for more three-quarters of this total.

There is currently a total of

22 million sqm

of prime leasable industrial space in Central Europe, with the region catching up on the traditionally strong German market, which has a stock of 25.5 million and a comparable number of inhabitants to the combined CEE total. On average, more than one million sqm of new industrial space has been built annually over the last ten years, said Ferdinand Hlobil, head of CE industrial at C&W. The company estimates Central Europe’s industrial pipeline at 2.2 million sqm.

With 6.1% vacancy, a large proportion of new development is absorbed prior to completion in what is considered to be a developers’ and landlords’ market.

Speculative development is not expected to

BBJ_2506_special_report.indd 15

“Hungary is typically lagging two years behind Czech Republic in terms of development trends and the level of development.

Examples of this are e-commerce logistics and the movement to the countryside.”

increase significantly in the short-term.

“Average Central Europe vacancy is expected to remain at around 6%. There will be rental pressure, especially in the main capital city markets. Last year we already saw rental growth in Prague and Romania,” Hlobil added.

Border Demand The largest amount of demand is alongside the German border. According to JLL, greater Warsaw has 3.16 million sqm of modern industrial stock; in the wider Poland area the total is around 11 million sqm.

Total modern industrial stock in Czech Republic has exceeded six million sqm, which makes it – along with Poland – the most advanced industrial market in CEE. Average vacancy has

fallen to

4.7%,

one of the lowest rates in the history of the market, and some developers are opting for the speculative development option. The current speculative development volume of approximately 30% of total volume is, however, still far below the 2007/2008 pre-crisis levels, when it represented approximately 70% of the total. C&W have traced around 500,000 sqm of new industrial space under construction.

The Czech market is about three times as big as Hungary’s, but improved economic figures for the latter should help to narrow the gap in the view of analysts. “Hungary is typically lagging two years behind Czech Republic in terms of development trends and the level of development. Examples of this are e-commerce logistics and the movement to the countryside,” said Tamás Beck, head of industrial, Hungary for Colliers.

“Czech Republic has a clear advantage over Hungary; however, we are catching up. The most important difference will always be the fact that Czech Republic has a number of central logistics locations, while in Hungary most logistics activity is concentrated in Budapest,” commented Gábor HalászCsatári, head of industrial at C&W.

JLR a Driver CTP has recently entered Hungary and is both developing and buying up available industrial parks. In Romania

the company is extending CTPark Bucharest West and is developing CTPark Cluj. The Japan-based ROKI will occupy 5,500 sqm of space at CTPark Arad in the west of the country.

The development of the new Jaguar Land Rover (JLR) plant in Nitra in Slovakia is seen as significant for the market as Nitra and the surrounding area is expected to see a rise in demand for both land and industrial premises. The main driver of the industrial market is the flourishing automotive industry. Total

class “A” industrial stock in Slovakia currently stands at 1.73 million sqm according to JLL. The pan-European logistics property investor/developer, P3, has not yet entered Hungary despite a 500,000 sqm pipeline, split 50-50 between CEE and Western Europe. For example, the company is developing an 80,000 sqm logistics center for Carrefour at P3 Bucharest. However, P3 is also tracking the Hungarian market and will develop in the country at some point when the time is right, according to Peter Becar, managing director of CEE management at P3 Logistic Parks.

EXPERT OPINION

Increasing Demand for Logistics Professionals Balázs Mihályi Lead Consultant of Sales&Marketing and Supply Chain&Logistics division HAYS HUNGARY 2016 was an exciting year for companies and professionals in the logistics and supply chain area in Hungary. We were observing the continuously increasing phenomenon of creating regional logistics and procurement centers, as well as seeing new functions added and existing operations expanded.

Demand has significantly increased for qualified workforce in almost all supply chain areas. Salaries continued to increase in the case of process developers, category managers/strategic buyers, planners and supply chain managers. Companies are investing more in logistics functions, training and career opportunities in order to keep the loyalty of staff in key positions.

We are seeing that all the green investments that our manufacturing partners have created in the previous years – which created a substantial need for engineers in the first wave – have now started to generate the second wave of challenging demand, this time for logistics experts. The expansion of the automotive, electronics and FMCG industries

was remarkable. The increasing number of logistics service providers – warehousing and transportation as well, especially in the automotive sector – can also be observed.

Salary differences between the eastern and western parts of the country are still significant in the logistics process development and the strategic purchasing area. We have often experienced 15-20% differentials in salaries.

We expect logistics professionals to be more flexible in terms of relocation in the future due to the increased benefits that employers are ready to provide. However, relocation packages and commuting allowances are still areas which need to be improved in order to find more flexible employees.

Concerning language requirements, English is still a must and German is also considered a very strong advantage, especially in automotive and metal industries. The need for CEE languages has deepened; Czech, Polish, Romanian and Slovakian speaking candidates are in a strong position to choose from various positions, and can even expect an 8-10% higher base salary.

For more information ask for your own copy of the Hays Salary Guide 2017 via hungary@hays.hu

www.hays.hu

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

Industrial development in Central Europe is booming, with figures approaching levels last reached in 2007, prior to the economic downturn. Although Hungary is going through a resurgence with positive market indicators, it still lags behind the market leaders as an industrial/logistics location of choice, hindered by the lack of industrial hubs outside of the capital.

Major e-commerce companies such as Amazon have established distribution facilities in Poland and Czech Republic.

2017. 03. 22. 19:17

16 | 3

Special Report

www.bbj.hu

Budapest Business Journal | March 24 – April 6, 2017

Logistics parks

Where the routes meet +36 1 225 66 00 www.airportcity.hu

Ranked by total net warehouse space used for logistics warehousing (sqm)

yeaR established

–

–

✓

Ÿ

1978

2

pRologis paRk budapest-sziget

181,000

prologis hungary, 1095 Budapest, Lechner Ödön fasor 7., (1) 577-7700, (1) 577-7701, www.prologis.com

–

–

✓

–

–

✓

–

–

Ÿ

2001

– Real estate funds (100)

lászló kemenes Karolina Gorgiel Marta Tesiorowska

2310 Szigetszentmiklós, Leshegy utca 30.

(1) 577-7700 (1) 577-7701 info-hu@prologis.com

3

áti depo közRaktáRozási zRt.

153,000

áti depo közraktározási zRt.

✓

✓

✓

✓

✓

–

✓

✓

Ÿ

1996

Z.I. Logisztikai Zrt (100) –

1136 Budapest, Pannónia utca 11.

(1) 305-2200 (1) 305-2235 mail@atidepo.hu

4

pRologis paRk budapest-gyál

152,000

prologis hungary, 1095 Budapest, Lechner Ödön fasor 7., (1) 577-7700, (1) 577-7701, www.prologis.com

józsef földházi Mária Szabóné Frühwirth Györgyi Szabó Kovácsné

Ÿ

2008

– ProLogis B.V (100)

lászló kemenes Karolina Gorgiel Marta Tęsiorowska

2350 Gyál, ProLogis Ipari park Hrsz. 7100.

(1) 577-7700 (1) 577-7701 info-hu@prologis.com

Ÿ

2009

Ÿ Ÿ

istván kerekes – Tomasz Arent

2225 Üllő, Zsaróka út 8.

(1) 336-2270 – info-hu@goodman.com

2001

– Real estate funds (100)

lászló kemenes Karolina Gorgiel Marta Tesiorowska

1225 Budapest, Campona utca 1.

(1) 577-7700 (1) 577-7701 info–hu@prologis.com

márta gajdán Anita Györkefalvi Zoltán Fábián

1211 Budapest, Weiss Manfréd út 5–7.

(1) 278-3231 (1) 277-0167 mail@containercenter.hu

miklós ágh – –

1239 Budapest, Európa utca 4.

(1) 289-6000 (1) 289-6060 bilkkombi@bilkkombi.hu

5

www.prologis.com

www.atidepo.hu

www.prologis.com

Goodman Üllő aiRpoRt logisztikai központ

150,000

www.goodman.com/hu

6

pRologis paRk budapest-haRboR

7

mahaRt ContaineR CenteR kft.

8

Rail CaRgo teRminal bilk zRt.

9

east gate business paRk

www.prologis.com

www.containercenter.hu

www.bilkkombi.hu

www.egpb.hu

pRologis paRk 10 budapest-m1 www.prologis.com

m5-gyál business paRk 11 www.businesspark.hu

debReCeni logisztikai 12 központ és ipaRi paRk www.trans-sped.hu

Westlog dC 13

www.westlogdc.com

goodman gyál 14 logisztikai központ www.goodman.com/hu

pRologis paRk 15 budapest-batta www.prologis.com

BBJ_2506_special_report.indd 16

132,000

99,000

95,000

78,000

69,000

60,000

54,300

49,300

45,000

39,000

goodman hungary kft., mom park irodaház, 1123 Budapest, Alkotás u. 53., (1) 336-2270 www.goodman.com/hu prologis hungary, 1095 Budapest, Lechner Ödön fasor 7., (1) 577-7700, (1) 577-7701, www.prologis.com

mahaRt Container Center kft., 1211 Budapest, Weiss Manfréd út 5-7., (1) 278-3178, (1) 277-0167, www.containercenter.hu Rail Cargo terminal bilk zrt., 1239 Budapest, Európa u. 4., (1) 289-6000, www.bilkkombi.hu Wing zrt., 1095 Budapest, Máriássy u. 7., (1) 451-4760, (1) 451-4762, www.wing.hu

prologis hungary, 1095 Budapest, Lechner Ödön fasor 7., (1) 577-7700, (1) 577-7701, www.prologis.com

autóker logisztikai kft., 2360 Gyál, Heltai Jenő u. 73., (29) 544-690, www.businesspark.hu delog debreceni logisztikai központ és ipari park kft., 4030 Debrecen, Vámraktár u. 3., (52) 510-100, (52) 510-193, www.trans-sped.hu

hung log two kft., 2051 Biatorbágy, Verebély László u. 2., (23) 804-333, (23) 804-334, www.westlogdc.com

goodman hungary kft., MOM Park Irodaház, 1123 Budapest, Alkotás u. 53., (1) 336-2270, www.goodman.com/hu prologis hungary, 1095 Budapest, Lechner Ödön fasor 7., (1) 577-7700, (1) 577-7701, www.prologis.com

Customs seRviCe

✓

distRibution

–

building management

✓

www.depologisztika.hu

domestiC WaRehousing

✓

1

aCCessible via WateR

✓

(100) –

aCCessibility to tRuCks

215,000

depo intermodális társas logisztikai központ kft., 2045 Törökbálint, Hosszúrét, (23) 338-044, (23) 334-666, www.depologisztika.hu

depo inteRmodális táRsas logisztikai központ kft.

Rail logistiCs

oWneRship (%) hungaRian non-hungaRian

Company Website

WaRehouse logistiCs

opeRating Company name, addRess, phone and fax no., Website

Rank

net WaRehouse spaCe used foR logistiCs WaRehousing (sqm)

seRviCes

–

–

✓

–

–

✓

–

–

✓

–

✓

–

✓

✓

✓

–

–

✓

✓

–

–

✓

–

majoR Clients in 2016

1998

2001

– Rail Cargo TerminalPraha s.r.o. (100)

2006

(100) –

Ÿ

2151 Fót, Akácos (1) 451-4760 (1) 451-4289 egpb@wing.hu

2000

– Real estate funds (100)

lászló kemenes Karolina Gorgiel Marta Tesiorowska

2071 Páty, Prologis Ipari Park Hrsz: 3382 (1) 577-7700 (1) 577-7701 info-hu@prologis.com

1989

X Ingatlanfejlesztő és Ingatlanhasznosító Zrt. (100) –

zoltán szabó – Attila Kántor

2360 Gyál, Heltai Jenő utca 73.

(29) 544-690 (29) 544-601 info@businesspark.hu

1990

(100) –

zsolt fülöp Julianna László Márta Fogarasi

4030 Debrecen, Vámraktár utca 3.

(52) 510-100 (52) 510-193 info@delog.hu

Ÿ

2051 Biatorbágy, Verebély László utca 2.

(23) 804-333 (23) 804-334 info@westlogdc.com

✓

✓

–

–

–

✓

Ÿ

✓

✓

–

–

–

–

✓

Ÿ

–

✓

✓

–

✓

✓

✓

✓

✓

–

–

–

–

✓

–

✓

✓

✓

✓

✓

✓

–

–

✓

–

2045 Törökbálint, Hosszú rét (23) 338-044 (23) 334-666 titkarsag@ depologisztika.hu

MSZ-INVEST Kft. (50), WINTCO Kft. (50) –

✓

✓

béla mescsán – –

Ÿ

–

–

addRess phone fax email

✓

MAERSK, MSC, METRANS, COSCON, Kühne+Nagel, DHL

–

top loCal exeCutive Cfo maRketing diReCtoR

–

–

–

✓

Ÿ

Ÿ

Ÿ

Ÿ

✓

–

✓

–

✓

✓

–

✓

Ÿ

2006

Ÿ Ÿ

✓

–

✓

–

✓

✓

✓

–

Ÿ

2007

Ÿ Ÿ

istván kerekes – Tomasz Arent

2360 Gyál, M5 kijárat (1) 336-2270 – info-hu@goodman.com

2010

– Real estate funds (100)

lászló kemenes Karolina Gorgiel Marta Tesiorowska

2440 Százhalombatta, Iparos utca 4.

(1) 577-7700 (1) 577-7701 info-hu@prologis.com

–

–

✓

–

–

✓

–

–

Ÿ

2017. 03. 22. 19:17

www.bbj.hu

Special Report | 17

3

Budapest Business Journal | March 24 – April 6, 2017

www.prologis.com

aiRpoRt City logisztikai paRk

dél-pesti Üzleti paRk 18 www.wing.hu

19

Camel paRk

www.whitestar-realestate.hu

áti-sziget ipaRi paRk 20 www.atisziget.hu

goodman keCskemét 21 logisztikai központ www.goodman.com/hu

beRtRans logisztikai 22 központ www.bertrans.hu

pRologis paRk 22 budapest-budaöRs www.prologis.com

tulipán paRk 24

www.whitestar-realestate.hu

pRologis paRk 25 hegyeshalom www.prologis.com

masped poRt 26 logisztikai központ www.maspedlogisztika.hu

City point 9 váRosi 27 logisztikai központ www.citypoint.hu

28

shaRk paRk

www.whitestar-realestate.hu

Renault GyőR 29

www.whitestar-realestate.hu

West gate business 30 paRk

www.whitestar-realestate.hu

31

phaRma paRk

www.whitestar-realestate.hu

BBJ_2506_special_report.indd 17

–

–

–

–

–

Customs seRviCe

distRibution

building management

domestiC WaRehousing

aCCessible via WateR

aCCessibility to tRuCks ✓

–

Ÿ

✓

UPS, Benteler Distribution Hungary Kft., Agility Magyarország Kft., PPG Trilak Kft., CEVA Logistics Hungary Kft., Panalpina Magyarország Kft.

oWneRship (%) hungaRian non-hungaRian

top loCal exeCutive Cfo maRketing diReCtoR

addRess phone fax email

2002

– Real estate funds (100)

lászló kemenes Karolina Gorgiel Marta Tesiorowska

2225 Üllő, Viktória Business Park Hrsz: 3382 (1) 577-7700 (1) 577-7701 info-hu@prologis.com

1996

– CPI Property Group (100)

mátyás gereben Kristóf Skwarek Bea Déri

2200 Vecsés, Üllői út 807.

(1) 225-6600 (1) 225-6601 hungary@cpipg.com

Ÿ

1097 Budapest, Táblás utca 36-38.

(1) 451-4760 (1) 451-4289 ipari@wing.hu

34,500

Cpi hungary kft., 1132 Budapest, Váci út 30., (1) 225-6600, (1) 225-6601, www.airportcity.hu, www.cpigroup.hu

34,000

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

–

–

✓

–

✓

✓

–

–

Ÿ

2004

(100) –

33,958

White star Real estate kft., 1117 Budapest, Budafoki út 91-93., (1)382-5100, www.whitestar-realestate.hu

✓

–

✓

–

✓

✓

–

–

UPS, Opel, Telenor, Vodafone

Ÿ

– (100)

ferenc daróczi, bartosz michal mierzwiak – –

2040 Budaörs, Akron utca 1.

(1) 382-5100 (1) 382-5101 info@whitestar-realestate.hu

33,500

áti-sziget kft., 2313 Szigetszentmiklós, Pf. 18., (24) 406-120, www.atisziget.hu

✓

–

✓

–

✓

✓

–

–

2001

Z.I. Logistics Zrt. (100) –

gábor kovács-f.

Istvánné Geiszler –

2313 Szigetszentmiklós, Pf. 18.

(24) 406-120 (24) 406-110 director@atisziget.hu

33,000

goodman hungary kft., MOM Park Irodaház, 1123 Budapest, Alkotás u. 53., (1) 336-2270, www.goodman.com/hu

Nilfisk Production Kft., Atlas Copco Hungary Kft., NordPaper Kft., Draspó-Tempo Kft., Csepel Autó Kft.

✓

–

✓

–

✓

✓

✓

–

Ÿ

2007

Ÿ Ÿ

istván kerekes – Tomasz Arent

6000 Kecskemét, Fuvar utca 1.

(1) 336-2270 – info-hu@goodman.com

✓

✓

✓

–

✓

Ÿ

✓

Ÿ

1989

(100) –

pál Rózsa – –

6000 Kecskemét, Fuvarutca 1.

(76) 999-100 (76) 999-101 bertrans@bertrans.hu

2005

– Real estate funds (100)

lászló kemenes Karolina Gorgiel Marta Tesiorowska

2040 Budaörs, Seregély utca 8.

(1) 577-7700 (1) 577-7701 info-hu@prologis.com

Ÿ

– (100)

ferenc daróczi, bartosz michal mierzwiak – –

2051 Biatorbágy, Huber utca 5.

(1) 382-5100 (1) 382-5101 info@whitestar-realestate.hu 9222 Hegyeshalom, Prologis Ipari Park, Hrsz. 1073/1.

(1) 577-7700 (1) 577-7701 info-hu@prologis.com

www.airportcity.hu 17

–

Rail logistiCs

37,500

prologis hungary, 1095 Budapest, Lechner Ödön fasor 7., (1) 577-7700, (1) 577-7701, www.prologis.com

majoR Clients in 2016

yeaR established

pRologis paRk 16 Budapest-Üllő

opeRating Company name, addRess, phone and fax no., Website

WaRehouse logistiCs

Company Website

net WaRehouse spaCe used foR logistiCs WaRehousing (sqm)

Rank

seRviCes

28,000

bertrans logisztikai zrt., 6000 Kecskemét, Fuvar u. 1., (76) 999-100, (76) 999-101, www.bertrans.hu

28,000

prologis hungary, 1095 Budapest, Lechner Ödön fasor 7., (1) 577-7700, (1) 577-7701, www.prologis.com

26,228

White star Real estate kft., 1117 Budapest, Budafoki út 91-93., (1)382-5100, www.whitestar-realestate.hu

24,000

prologis hungary, 1095 Budapest, Lechner Ödön fasor 7., (1) 577-7700, (1) 577-7701, www.prologis.com

23,300

masped logisztika kft., 1211 Budapest, Szikratávíró út 19-21., (1) 278-0951, (1) 278-0807, www.maspedlogisztika.hu

✓

–

✓

–

–

–

✓

✓

✓

–

–

–

✓

–

✓

✓

–

✓

✓

–

–

Ÿ

–

Ÿ

–

Ikea, Grundfos, Transdanubia, Aliaxis

–

–

✓

–

–

✓

–

–

Ÿ

2006

– Real estate funds (100)

lászló kemenes Karolina Gorgiel Marta Tesiorowska

✓

✓

✓

✓

✓

✓

✓

✓

Ÿ

2001

Ÿ Ÿ

marcell kovács – Péter Zoltai

1211 Budapest, Szikratávíró út 17–21.

(1) 278-0951 (1) 278-0807 logisztika@masped.hu

2010

OTP Ingatlanbefektetési Alap (100) –

Ÿ

1097 Budapest, Gubacsi út 24.

(1) 336-0900 (1) 201-9322 alapkezelo@ otpingatlanalap.hu

Ÿ

– (100)

ferenc daróczi, bartosz michal mierzwiak – –

2040 Budaörs, Vasút utca 11.

(1) 382-5100 (1) 382-5101 info@whitestar-realestate.hu

Ÿ

– (100)

ferenc daróczi, bartosz michal mierzwiak – –

9027 Győr, Platánfa utca 1.

(1) 382-5100 (1) 382-5101 info@whitestar-realestate.hu

ferenc daróczi, bartosz michal mierzwiak – –

2045 Törökbálint, Tópark utca 9.

(1) 382-5100 (1) 382-5101 info@whitestar-realestate.hu

ferenc daróczi, bartosz michal mierzwiak – –

2040 Budaörs, Vasút utca 13.

(1) 382-5100 (1) 382-5101 info@whitestar-realestate.hu

23,200

otp ingatlan befektetési alapkezelő Zrt., 1012 Budapest, Pálya u. 4-6., (1) 224-7790, (1) 201-9322, www.otpingatlanalap.hu

✓

✓

✓

–

✓

✓

✓

–

Ÿ

22,592

White star Real estate kft., 1117 Budapest, Budafoki út 91-93., (1)382-5100, www.whitestar-realestate.hu

✓

–

✓

–

✓

✓

–

–

Chipita, DSV Hungária, UPS, Sarantis

19,509

White star Real estate kft., 1117 Budapest, Budafoki út 91-93., (1)382-5100, www.whitestar-realestate.hu

–

Hungarian Alliance Logistic Kft.

18,020

White star Real estate kft., 1117 Budapest, Budafoki út 91-93., (1)382-5100, www.whitestar-realestate.hu

✓

–

✓

–

✓

✓

–

–

Tesco, Megadyne, BaSys, Renault

Ÿ

– (100)

14,256

White star Real estate kft., 1117 Budapest, Budafoki út 91-93., (1)382-5100, www.whitestar-realestate.hu

✓

–

✓

–

✓

✓

–

–

Bayer, Actavis, UPS, ADR Logistics

Ÿ

– (100)

✓

–

✓

–

✓

✓

–

2017. 03. 22. 19:17

18 | 3

Special Report

www.bbj.hu

Budapest Business Journal | March 24 – April 6, 2017

Logistics service providers

2

3

magyaR posta ZRt. www.posta.hu

Rail CaRgo HungaRia ZRt. www.railcargo.hu

dHl CsopoRt

www.dhl.hu/hu.html

✓

✓

–

✓

✓

✓

–

Ÿ

73,914

Ÿ

–

–

–

✓

✓

✓

✓

✓

–

–

–

✓

–

MOL Nyrt., Audi Hungária Motor Kft., BorsodChem Zrt., ISD DUNAFERR Zrt., Mátrai Erőmű Zrt., Magyar Suzuki Zrt.

2005 1,901(1)

61,792 (2015)

5

26,654

liegl & daCHseR sZállítmányoZási és logisZtikai kFt.

23,041 (2015)

www.dachser.hu

7

sCHenkeR nemZetköZi sZállítmányoZási és logisZtikai kFt.

WaReHouse seRviCes

✓

27,459 (2015)

19,498 (2015)

Ÿ

Ÿ

1,146

Ÿ

Ÿ

Ÿ

27,500

4,450

27,005

37,000

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

otHeR

✓

✓

✓

✓

–

majoR Clients in 2016 distRibution

tRanspoRtation

inteRnational

RailWay

distRibution

WaReHousing ✓

dutiable goods

✓

domestiC goods

–

ltl

–

Ftl

✓

CaRgo Consolidation

Ÿ

Hungarian state (100) –

logistiCs seRviCes

domestiC

Ÿ

1993 30,000 (approx.)

Rail CaRgo logistiCs - HungaRia kFt.

6

net WaReHouse spaCe used FoR logistiCs WaReHousing (sqm)

200,000 (approx.)

küHne + nagel kFt.

www.railcargologistics.hu

net Revenue FRom logistiCs seRviCes in 2016 (HuF mln)

oWneRsHip (%) HungaRian non-HungaRian

4

www.kuehne-nagel.hu

FReigHt FoRWaRding seRviCes

yeaR establisHed no. oF Full-time employees on januaRy 1, 2017

1

Company Website

total net Revenue in 2016 (HuF mln)

Rank

Ranked by total net revenue (HUF mln) in 2016

✓

Ÿ

✓

Ÿ

✓

Rail Cargo Logistics - Austria GmbH, BorsodChem Zrt., MOL Nyrt., Mátrai Erőmű Zrt., T.T. Cargo d.o.o., Rail Cargo Logistics GmbH

top loCal exeCutive CFo maRketing diReCtoR

addRess pHone Fax email

Zoltán illés – –

1138 Budapest, Dunavirág utca 2–6.

(1) 767-8200 (46) 320-136 ugyfelszolgalat@ posta.hu

(0.01) Rail Cargo Austria AG (99.99)

dr. imre kovács Román Kotiers Mónika Nahalkó-Kurdi

1133 Budapest, Váci út 92.

(1) 512-7323 (1) 512-7789 cargo.rch@railcargo.com

– Deutsche Post AG (100)

Zoltán bándli, Filip budik, Zoltán matisa, attila pál Zoltán Antalffy, Ivo Gruber, Gábor Mitró, Birgit Müller Éva Forgács, Attila Kulcsár, Zoltán Üveges, Irena Mižďochová

www.dhl.hu/hu/ elerhetosegek.html

1992 1,041

– Kühne + Nagel Eastern Europe AG (100)

márton lányi Péter Kisch Paál Szilárd

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

1992 99

– Rail Cargo Logistics - Austria GmbH (100)

andrás vernes Edit Bokori –

1037 Budapest, Montevideo utca 4.

(1) 430-8500 (1) 430-8599 office.rcl.hu@ railcargo.com

– Dachser SE (50), EL Holding s.r.o.

(50)

szabolcs Czifrik – –

2085 Pilisvörösvár, Ipartelep utca 1.

(26) 532-000 (26) 532-005 customer.pilisvorosvar@ dachser.com

1993

Ÿ

Ÿ

1999

Ÿ

1992

Ÿ

– Schenker AG (100)

árpád vásárhelyi, sándor barényi – –

2310 Szigetszentmiklós, Leshegy utca 30.

(1) 278-7878 (1) 278-7888 info.hu@dbschenker.com

Ÿ

1998 639

(100) –

Zsolt Fülöp Mihály Székely József Fülep

4030 Debrecen, Vámraktár utca 3.

(52) 510-120 (52) 510-197 info@trans-sped.hu

Ÿ

1989 263

– GW International Holding GmbH (100)

thomas schauer – –

2330 Dunaharaszti, Raktár utca 2.

(24) 506-700 (24) 506-705 gw.hungary@ gw-world.com

✓

Ÿ

2011 220

GySEV Zrt. (100) –

jános boda – Adrienn Fleck

9400 Sopron, Mátyás király utca 19.

(99) 577-139 (99) 577-401 info@gysevcargo.hu

✓

Magyar Suzuki Zrt., Ford Közép- és Kelet- Európai Kft., Porsche Hungaria Kft., Mercedes-Benz Manufacturing Hungary Kft., MercedesBenz Hungária Kft., Kia Motors Hungary Kft.

1990 310

– Beteiligungsgesellschaft Lagermax Autologistik International GmbH (100)

imre domina, jános molnár Bálint Hetyei Karolina Kalla

2040 Budaörs, Vasút utca 3.

(23) 506-100 (23) 506-107 lagermax@lagermax.hu

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

istván sevecsek Judit Tankovics Zsuzsanna Szemelyácz

1138 Budapest, Szekszárdi utca 14.

(1) 450-9003 (1) 450-9090 eurosped@eurosped.hu

✓

✓

Ÿ

www.dbschenker.com/hu 8

9

tRans-sped kFt.

12,522

gebRüdeR Weiss sZállítmányoZási és logisZtikai kFt.

12,474 (2015)

www.trans-sped.hu

www.gw-world.hu

gysev CaRgo ZRt. 10 www.gysevcargo.hu

lageRmax 11 autótRansZpoRt kFt. www.lagermax.hu

euRosped nemZetköZi 12 sZállítmányoZási ZRt.

11,967

8,800

7,962

12,522

Ÿ

1,339

Ÿ

Ÿ

180,000

56,000

88,000

230,000

Ÿ

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

–

✓

–

–

–

✓

✓

–

–

✓

✓

✓

–

–

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

–

✓

✓

✓

✓

–

✓

✓

–

Ÿ

1989

✓

MOL, Robert Bosch, Audi, Samsung

2013 246

– Ekol Lojistik AŞ (100)

ákos kovács Andrea Hertelendy –

1211 Budapest, Szikratávíró út (1) 872-6100 (1) 799-8257 info.hungary@ekol.com

Ÿ

1989 200

– Raben Group N.V. (100)

Csaba árvai Noémi Szűcs Ágnes Bolyki

2330 Dunaharaszti, Jedlik Ányos utca 31.

(24) 502-000 (24) 491-820 hungary.info@ raben-group.com

Ÿ

www.eurosped.hu

ekol logistiCs kFt. 13 www.ekol.com

Raben tRans euRopean HungaRy 14 kFt. www.raben-group.com

BBJ_2506_special_report.indd 18

7,750

6,275

1,212

6,275

11,000

26,000

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

2017. 03. 22. 19:17

www.bbj.hu

3

www.bikalogisztika.hu

6,238

euRo-log logisZtikai 16 sZolgáltató kFt.

3,100

Rail CaRgo teRminal 17 - bilk ZRt.

2,202 (2015)

www.eurologgroup.com

www.railcargobilk.hu

áti depo 18 köZRaktáRoZási ZRt. www.atidepo.hu

veRsteijnen

19 logistiCs kFt. www.versteijnen.com

masped

20 logisZtika kFt. www.maspedlogisztika.hu

plimsoll

21 sZolgáltató kFt. www.plimsoll.hu

22

Fluvius kFt. www.fluvius.hu

6,137

300

Ÿ

19,000

7,000

Ÿ

✓

✓

✓

✓

–

✓

–

✓

✓

✓

✓

✓

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

oWneRsHip (%) HungaRian non-HungaRian

top loCal exeCutive CFo maRketing diReCtoR

addRess pHone Fax email

Ÿ

1991 179

György Karmazin (100) –

gabriella szécsi László Pálmai Attila Katkics

5000 Szolnok, Városmajor utca 23.

(56) 524-050 (56) 524-040 info@bi-ka.hu

Ÿ

1994 38

Tamás Zsolt Dunai (100) –

tamás Zsolt dunai Emese Győri –

1107 Budapest, Ceglédi út 19.

(1) 433-3030 (1) 433-3040 info@eurologgroup.com

– Rail Cargo TerminalPraha s.r.o. (100)

miklós ágh László Vass Nóra Miklósi

1239 Budapest, Európa utca 4.

(1) 289-6000 (1) 289-6060 info.rct.bilk@ railcargo.com

Z.I. Logisztikai Zrt. (100) –

józsef Földházi Mária Frühwirth Szabóné Györgyi Szabó Kovácsné

1136 Budapest, Pannónia utca 11.

(1) 305-2200 (1) 305-2235 mail@atidepo.hu

– Versteijnen Logistics Group B.V. (100)

sándor voller Zoltán Jobb –

9600 Sárvár, Ikervári út 42.

(95) 325-777 (95) 325-888 info.hu@versteijnen.com

2001

Ÿ

(100) –

marcell kovács – Péter Zoltai

1211 Budapest, Szikratávíró út 17–21.

(1) 278-0951 (1) 272-0807 logisztika@masped.hu

otHeR

✓

✓

✓

majoR Clients in 2016 distRibution

tRanspoRtation

dutiable goods

WaReHouse seRviCes ✓

domestiC goods

ltl

Ftl

CaRgo Consolidation

inteRnational

RailWay

distRibution

WaReHousing ✓

domestiC

FReigHt FoRWaRding seRviCes

logistiCs seRviCes

✓

✓

✓

Ÿ

2,103

153,000

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

Ÿ

1,931

Ÿ

10,000

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

Ÿ

1995 67

1,750 (2015)

Ÿ

40,000

✓

✓

–

✓

✓

✓

✓

✓

✓

✓

✓

✓

Ÿ

1,350

1,350

–

✓

–

✓

✓

✓

–

–

–

✓

✓

✓

–

Ÿ

1992 14

Individuals (49) TTS Bucharest (51)

botond szalma Mariann Sánta András Kiss

1139 Budapest, Frangepán utca 7.

(1) 210-9800 (1) 210-9801 plimsoll@plimsoll.hu

1,200

1,200

Ÿ

–

–

–

✓

–

–

–

–

–

–

✓

–

Ÿ

2001 7

PLIMSOLL Szolgáltató Kft. (100) –

botond szalma Mariann Sánta András Kiss

1139 Budapest, Frangepán utca 7.

(1) 237-1094 (1) 237-1091 fluvius@fluvius.hu

1993

Ÿ

CG Invest Kft. (100) –

Csilla gömze – –

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

1990 49

(100) –

Zsolt Fülöp, szabolcs Zsolt Fülöp Julianna László Márta Fogarasi

4030 Debrecen, Vámraktár utca 3.

(52) 510-100 (52) 510-193 info@delog.hu

X Ingatlanfejlesztő és Ingatlanhasznosító Zrt. (100) –

Zoltán szabó – Attila Kántor

2360 Gyál, Heltai Jenő utca 73.

(29) 544-690 (29) 544-601 info@businesspark.hu

(100) –

antal konyári Julianna László Antal Konyári

4400 Nyíregyháza Tünde utca 2.

(42) 599-297 (42) 599-297 info@tspapirusz.hu

– (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

– Mid Europa Partners (97), other (3)

Ferenc lajkó – –

1239 Budapest, Nagykőrösi út 351.

(1) 421-6666 (1) 421-6699 info@waberers.com

Ÿ

Ÿ

✓

–

–

✓

–

✓

✓

✓

✓

✓

✓

–

Ÿ

delog kFt.

1,137

Ÿ

55,300

✓

–

–

–

–

–

–

–

✓

✓

–

–

Ÿ

1,100 (2015)

Ÿ

Ÿ

✓

–

✓

–

✓

–

–

–

✓

–

–

✓

Ÿ

Ÿ

–

Ÿ Ÿ Ÿ

✓

✓

–

✓

✓

–

–

✓

–

DUNAPACK Kft.

www.trans-sped.hu

autókeR

25 logisZtikai kFt. www.businesspark.hu

tRans-sped-papiRusZ

26 kFt. www.trans-sped.hu

euRo mini stoRage 27 HungáRia kFt.

www.euroministorage.com

bajai oRsZágos köZFoRgalmú

28 KiKötőműKödtető

kFt.

Ÿ

2,103

1,154 (2015)

24

2001

1996 140

inteRCaRgo 23 HungaRy kFt.

www.intercargo.hu

1,055

180

72 (2015)

Ÿ

7,500

✓

–

–

–

–

–

–

–

✓

–

–

–

Ÿ

22,400

✓

✓

✓

✓

✓

–

✓

–

✓

✓

✓

✓

Ÿ

Ÿ

1989

Ÿ

1995 45

2006 5

1999

Ÿ

www.portofbaja.hu

WabeReR's NR inteRnational ZRt. www.waberers.com

Ÿwould not disclose, NR not ranked, NA not applicable

Special Report | 19

yeaR establisHed no. oF Full-time employees on januaRy 1, 2017

bi-ka logisZtika kFt. 15

net WaReHouse spaCe used FoR logistiCs WaReHousing (sqm)

Company Website

net Revenue FRom logistiCs seRviCes in 2016 (HuF mln)

total net Revenue in 2016 (HuF mln)

Rank

Budapest Business Journal | March 24 – April 6, 2017

Ÿ

Ÿ

–

Ÿ Ÿ Ÿ ✓

✓

✓

✓

✓

Ÿ Ÿ ✓

–

Ÿ

1948 6,500

This list was compiled from responses to questionnaires received by March 21, 2016 and publicly available data. Data is based on companies’ own data revelations. To the best of the Budapest, Business Journal’s knowledge, the information is accurate as of press time. While every effort is made to ensure accuracy and thoroughness, omissions and typographical errors may occur. Additions or corrections to the list should be sent on letterhead to the research department, Budapest, Business Journal, 1075 Budapest,, Madách Imre út 13–14., or faxed to (1) 398-0345. The research department can be contacted at research@bbj.hu

NOTES: (1) Data of December 31, 2016.

BBJ_2506_special_report.indd 19

2017. 03. 22. 19:17

5

www.bbj.hu

Budapest Business Journal | March 24 – April 6, 2017

Socialite A Voyage of Stained

There’s something about Budapest museums.

Even though their website says they’re open, they seem to close especially for me. So when we turned up at the Miksa Róth Memorial House to look at the stained glass I wasn’t especially surprised to find a note on the green wooden gates saying it was closed. It was being used as a film location until March 30.

DAVID HOLZER

My companions were ready to give up. I’m made of sterner stuff. Noticing that the door to the museum was open, I walked in. We were all glad that I did.

An unprepossessing alleyway led to a small courtyard and the back of what looked to be an abandoned building. I tested the door to the museum itself. It too was open. We climbed the stairs and found ourselves in a room bathed in soft colored light from a collection of exquisite stained glass pieces.

Fortunately, the lady in charge of the museum seemed pleased to see us. We saw no sign of a film crew and she was a bit vague as to what they were meant to be filming. Judging by the gloomy, brown décor, it had to be a period piece.

Because, apart from the sheer beauty of the stained glass on display, one of the joys of Miksa Róth Memorial House is the feeling that you’re stepping outside of time.

Away from scruffy Nefelejcs utca, lined with mobile phone shops and internet cafes. You know what neighborhoods near railway stations are like.

Miksa Róth and Stained Glass I don’t know how Miksa Róth’s father Zsigmond came to have a glass-painting workshop. But Miksa was just 19 when he took over in 1865, ten years after English glass workers managed to create an antique glass effect. This was no doubt connected to the Catholic revival in England that had led to renewed interest in the medieval churches in which stained glass had first become popular.

BBJ_2506_socialite.indd 20

Glass Discovery

In Hungary, stained glass wasn’t just ideal for restoring medieval church windows. Something about the effect of light passing through colored glass fit perfectly with the romantic, if somewhat overwrought fin de siècle sensibility of what the Germans called Mitteleuropa.

Whatever the reason, Róth prospered.

At the beginning of the 20th century he employed ten craftsmen working on public and private commissions, some of them extremely grand. Róth’s work is preserved in a number of landmark Budapest buildings, including the Gresham Palace, which we’ll get to later.

Perhaps Róth’s greatest achievements are the stained glass pieces and mosaics in the Hungarian Parliament building in Budapest, begun in 1885 and finished in 1904. Keen to reflect the diversity of Hungarian architecture at this time, Róth created windows in Hungarian Secession, Art Nouveau, Jugenstil, Viennese and Historic styles.

After he first saw Tiffany glass at the

1893

CHICAGO WORLD TRADE FAIR, ROTH

immediately saw its potential to create far more intensely colorful pieces that incorporated the natural marbling effect of the glass. He was also influenced by the English Pre-Raphaelite movement in art, characterized by a romantic idealization of the Medieval period.

There’s something a bit over-rich about Pre-Raphaelite art. Looking at too much of it makes me feel like I’ve overindulged in Esterházy Torte. Which is, I guess, why it seems so right for Hungary.

The Pre-Raphaelites were also naturelovers and this probably influenced Róth to make stained glass windows that incorporated floral designs. Later on, he graduated to designs that incorporated

birds such as peacocks and swans as well as depicting mythical creatures like fauns, nymphs and faeries.

Perhaps as a result of the political and social turmoil that ravaged Hungary after World War I, Róth’s private work for affluent citizens dried up. From 1920 until his death in 1944 he was mostly dependent on commissions from the church and government.

I have to say that I’ve never given stained glass much thought. But there was something magical about the way in which the backlighting illuminating the art seemed to color the very air in which we stood.

So much so that when we stepped back out into Nefelejcs utca, the down at heel street seemed just a little bit transformed.

I can’t exactly say I wouldn’t have been surprised if a golden nymph had come skipping around the corner, but you get the picture I’m sure.

The Gresham Palace We agreed that we needed to keep our woozily romantic buzz going. Which meant heading for the Four Seasons Hotel, known to Hungarians as the Gresham Palace, just up from the Széchenyi Chain Bridge on the Pest side.

Our somewhat flimsy excuse was that somewhere inside that turreted Art Nouveau castle there apparently were some fine examples of Róth stained glass and mosaics. We never found them – we didn’t even look. But we did spend a few delicious hours in the bar at the Gresham.

For the life of me I can’t understand why the place isn’t packed. It’s not just that the bar strikes the perfect balance between cozy and glam. Or that the waiting staff is the right mix of friendly and appropriately aloof. It’s more that the prices at the Gresham are so astonishingly reasonable,

especially considering the quality of what’s on the food and drinks menu.

One of my companions is into photographing what she eats and drinks and posting it on her Instagram feed.

It’s a practice that normally makes me cringe with embarrassment. But in the Gresham it made sense as a way to prove that we really had paid so little for so much pleasure.

We weren’t the only people to be pleasantly amazed. Every time the young American couple on the other side of the circular, illuminated bar from us were handed a menu or a drink they cried ‘Thank you so much’.

The guy’s obvious relief at knowing he was going to be able to treat his sweetheart to whatever she desired warmed our rather more jaded hearts.

My only reservation about the bar at the Gresham is the dress code, or lack of it. I always think that classic bars and legendary restaurants should have a dressing up room. It would have been just a little bit more fitting if my companions and I had been wearing 1920s evening dress.

Never mind. Next time.

A Quality of Darkness On a recent visit to London my partner was thrilled by how much neon light there is in the West End at night. “Budapest is so much darker,” she said.

Standing outside the Gresham, looking up at the illuminated Royal Castle, I realized that she’d identified the quality that makes Budapest feel especially mysterious and romantic at night. And we cherish whatever light there is.

Getting around Miksa Róth Memorial House is at Nefelejcs utca 26 and very close to the Eatern Railway Station (Keleti) so you can get there by metro.

Check www.rothmuzeum.hu for opening times. You might want to call +36 1/341-6789 first.

You can’t miss the Gresham Palace. It’s on the Pest side of the Széchenyi Chain Bridge. Walk into the lobby of the hotel and turn left.

The bar is tucked away next to the Kollázs Brasserie.

Parliament is even more unmissable, but if you’ve only just arrived, you’ll find it on the Pest banks of the Danube, in front of the restored Kossuth Lajos tér. If you want to know more about visiting the building itself and seeing those magnificent Róth works, check out the visitor center website: latogatokozpont.parlament.hu/en

2017. 03. 22. 19:14

Socialite | 21

5

www.bbj.hu

Budapest Business Journal | March 24 – April 6, 2017

Organic Overrides the Haters

The very mention of organic, biodynamic and “natural” wine sends many wine lovers either into a state of ecstasy or exasperation depending on their point of view – so polarizing have they become. One man’s meat is indeed another man’s poison, but when such wines are good, they can be very good indeed, as proved at a tasting at Divino Gozsdu at the beginning of March that showcased those Junibor producers who have gone organic.

ROB SMYTH

Wine can be organic on paper (i.e. certified) or merely in practice (so we have to take the winemakers word for it), whereby only traditional treatments such as copper and sulfur and a bunch of natural solutions, such as rose oil, are used to treat the vines, with minimal sulfur used in the cellar to keep the wine fresh.

Natural wine is not necessarily organic on paper but implies minimal intervention. U.S. wine critic Robert Parker rubbished the movement in his predictions for 2014, stating that natural wine would be seen as a fraud, since all great wine is made with the minimum of intervention anyway. While his prediction hasn’t come to pass, it is it is unfair to imply that if you’re not with the natural movement, then you are out to destroy nature and poisoning wine drinkers with a deadly cocktail of industrial chemicals in the process.

For its part, the movement has hardly been very good at avoiding that message. While the overuse of chemicals to napalm bugs and fungi could indeed be dangerous, there are plenty of leading wineries around the world who follow a minimum interventionist approach without making a song and dance about it.

Proponents argue that the terroir is allowed to better express itself, especially now that the soil is alive.

Also, the vines are better equipped to fight of infections and diseases once they have learned to fend for themselves. However, extreme vintage conditions do see (noncertified) growers ditch the organic approach and reach for the chemicals, while diehards see their crop vastly diminished or even wiped out.

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Somló Vándor Juhafark 2015.

Philosophical Approach One step beyond organic is biodynamic winemaking, which takes things further by following the work and ideology of Austrian social philosopher Rudolf Steiner, with treatments prepared in special ways, even buried in the ground in a cow’s skull, and applied at specific times decreed by lunar cycles and the like. It was amazing to walk around Tokaj Pendit’s biodynamically cultivated vineyards in the village of Abaújszántó, which were buzzing with life compared to the dead silence of the conventionally-cultivated neighboring plot.

Noticeably – and thankfully – absent, for the most part at least, from the Divino Gozsdu organic tasting were the kind of fowl aromas and flavors that may make mankind thank its lucky stars for industrial agricultural progress and the invention and intervention of herbicides and pesticides. Barnyard aromas of brett (brettanomyces), the bruised apple whiff of oxidation, or the nail polishlike smell of volatile acidity can often occur when nature is allowed to take its course and a back to basics approach is adopted – and indeed on other occasions. The use of tiny amounts of sulfur can bring a touch of a rustic, leathery character, although this can indeed bring complexity to a wine if it’s otherwise well made from healthy grapes and there is good fruit alongside.

One aspect of natural winemaking is usually the use of the yeast inherent in the grapes and cellar to ferment the wine, as opposed to deploying commercial yeast. Although wild fermentation can ultimately lead to more complexity, more can also go wrong. Commercial yeast generally makes for a cleaner and quicker

fermentation, with more pungent aromas. However, there are exceptions to every rule and Tomi Hernyák from the Etyek region used cultured yeast in order to maximize the fresh fruit to delightful effect in his vibrant Királyleánka 2015, which was half fermented in tank and half in oak.

Aside from Hernyák and the two featured below, Junibor’s organic crowd also included: Tokaj’s Angelika Árvay, Endre Demeter and Stefán Wille-Baumkauff; Sopron’s Katrin Pfneiszl; and Villány’s Andrea Gere. The latter brought an exciting and somewhat Kadarka-like wine from the revived and ancient Fekete Járdovány grape.

Somló Vándor Juhafark 2015 As Juhfark is the most acidic grape variety growing in the volcanic basalt soils of Somló, you have to wait to pick it until it’s overripe for the acids to drop off a little, according to winemaker Tomi Kis. The grapes were harvested from three south-facing plots and one north-facing plot.

Leaving out the grapes longer brought about the wine’s remarkable concentration, but it would be nothing without structure and while the acidity may have been shaved down, it is still there and doing its job of holding the wine

together. It was fermented and aged in used oak barrels.

This wine is full-bodied, rich, dry and very long with the variety’s trademark sour fruit notes, which reminds me of rhubarb, with some pineapple and banana tropical juiciness.

HUF 3,500 from Radovin.

Franz Weninger Kékfrankos 2015 A real go-to Kékfrankos for capturing both varietal purity and a sense of place.

Sopron’s cooler climate and stony soils manifest themselves in the zesty acidity, as well as the pepper and green herb aromas and flavors. This biodynamic wine also has that earthy-gamey note common to many low-sulfur wines, but it doesn’t step on the fruit and delivers an extra dimension in this case. It is made by an Austrian who works on both sides of the border and has done much for the Hungarian Kékfrankos cause.

HUF 2,490 from Bortársaság.

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Budapest Business Journal | March 24 – April 6, 2017

Budapest Volunteers Save Lives and Money

The long-lasting extreme cold in Hungary this January seems to have pushed many more people towards activism. Thousands offered donations or free time to help people living in the streets. ÁGNES VINKOVITS

The past winter was outstandingly cold.

Realizing the implications of that, a lot of volunteers became active and gave food and warm clothes to people in need every night. “About 2,000 volunteers showed up in the winter crisis,” says Zoltán Havasi of civilian aid group Budapest Bike Maffia [sic], adding that while the spring usually washes away some of the volunteers, enthusiasm to help has been on the rise in the past years.

Heti Betevő (translates as “Weekly Bread”) was established by a bunch of friends at downtown ruin pub Kisüzem.

It places collection tins at cafés, pubs and restaurants to buy the ingredients for a big Sunday cook. Today, several restaurants cooperate with it and cook the meals in their kitchens to feed 100-150 people every Sunday afternoon on Klauzál tér.

Food not Bombs Budapest (FNB), like its international counterparts, collects the unsellable yet completely edible vegetables at markets on Saturday afternoons to feed 100 people with vegan dishes on Boráros tér. It seems to be catching on, too; FNB now gets more food from the market-people than it can process at one time, so it needs to organize special events to cook the leftovers. These meals are then delivered to homeless people on the streets.

Offical Association While FNB would find it impossible to institutionalize itself, as it sees its ADVERTISEMENT

Utcáról Lakásba Egyesület (From Huts to Homes) provides housing for those in need.

That might be one reason why the authorities have started to acknowledge the work of the civilians. The municipality of one downtown district where BBM is active has recently transferred a HUF 1 mln grant, which the association took with “surprise and appreciation”.

Havasi thinks, however, it is of no surprise that after five years of operation, BBM has started to raise state attention too. The movement is a good example that “people with enthusiasm and a willingness to spend money wisely and responsibly” can make a difference.

Dealing with the Housing Crisis Bringing old apartments back to life. unofficial status as a guarantee of its genuineness, the Budapest Bike Maffia (BBM) became an official association two years ago. BBM and its 150 regular volunteers also give food and warm clothes to those living on the streets, but due to its increasing budget (HUF 6 million in 2016 and is hoped to reach HUF 10 mln this year), it can already afford a few bike delivery guys to collect more indigents and also take on some special projects.

Its Plus One Sandwich Program, for example, inspires school students to bring an extra sandwich one day per week. The sandwiches are collected on a daily bases and forwarded to people in need. “The parents are crazy about that,” says Havasi, explaining that drawing attention to social problems and offering an opportunity to help at the same time is a key to success.

It also runs for-profit activities by offering team building programs for companies.

ʼStill Punksʼ Most of BBM’s budget is covered by tenders and corporate and private donors, but volunteers still play an essential role. “We are still quite punks,” says Havasi, adding that food donations from individuals and bakeries as well as the drivers who collect the food every night are all basic elements of the system.

The productivity of these movements is remarkable. BBM alone portioned 55,000 dishes in 2016, which, calculating with a cost of HUF 250 per dish, means that BBM created something worth almost HUF 14 mln, practically doubling its entire yearly budget. This result would be hardly imaginable without the devotion of the circle of supporters. Yet, these tasks would cost the state much more, considering the bureaucracy and infrastructure it would require.

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A Huts to Homes volunteer surveys the work ahead.

Although there is no official data showing the number of homeless people in Budapest, the problem is apparent to anyone walking on the streets.

“We have to make a distinction between those living in the streets of Józsefváros and those who became homeless in our district. It is our duty to take care of the latter group of people,” Dr. Sára Botond, the deputy mayor of District VIII told the Budapest Busness Journal, adding that the municipality has recently changed regulations to ease the housing crisis. Those living in municipality rentals are, from March, able to buy the flats they live in with anything from a 45-85% discount.

Still, the changes are far too slow for civilian group Utcáról Lakásba Egyesület (From Huts to Homes), which tries to ease the problem by refurbishing unlivable municipality flats, which can later be given to homeless people.

Volunteer help as well as donations of tools and household facilities are always welcome, but as a creative way of fundraising, Utcáról Lakásba Egyesület, together with acknowledged literature association Szépírók Társasága, is organizing a charity auction on April 9 at Gödör Klub, where the manuscripts of famous Hungarian writers will be on offer.

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Budapest Business Journal | March 24 – April 6, 2017

Cold War era. The selected artworks are from the private collection of Marinko Sudac, which, in addition to pieces of art and groups of works, also comprises complete documentations and archives of great art historical significance.

WHAT’S NON-ALIGNED ART – MARINKO SUDAC COLLECTION March 23-June 25 Ludwig Museum - Museum of Contemporary Art

GET CLOSER BUDAPEST JAZZ FEST March 24-26 MOM Cultural Center This exhibit is comprehensive array of avant-garde art from the former Yugoslav states and some neighboring countries, especially focusing on the

Renowned names of the international jazz culture play contemporary tunes of the genre at this year’s Get Closer Festival. Performers include American

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jazz-rock guitarist Jon Scofield, French accordionist Richard Galliano, American jazz double bassist Ron Carter, and the Erik Truffaz Quartet from Switzerland.

BUDAPEST SPRING FESTIVAL March 21-April 23 Multiple locations More than 120 vibrant programs warm visitors’ hearts across nearly 40 different venues in the city during the Budapest Spring Festival, featuring local and international talents of several artistic genres. Programs include operas, jazz concerts, contemporary circus shows, orchestral performances, and more, happening at such prominent venues as the Palace of Arts, the Hungarian State Opera, the Liszt Ferenc Academy, and the Pesti Vigadó.

BUDAPEST SPRING FAIR March 31-April 30 Vörösmarty Square Downtown Budapest’s scenic Vörösmarty Square is filled with flowers, alongside traditional and modern folk-art displays, local artisans offering handcrafted merchandise, and platefuls of traditional Hungarian meals during this fair that welcomes spring into the city.

TITANIC INTERNATIONAL FILM FESTIVAL April 6-13 Multiple locations Art-house theaters, multiplex cinemas, and prominent event locales provide space for select motion pictures during Hungary’s most popular international film festival, an event that is eagerly anticipated by the film industry each year. Titanic features international films that are not distributed in Hungary, or will only be available in the country after a delay. The films are screened with original audio and no subtitles, but simultaneous Hungarian translation is usually available through headphones.

Gorgona Group, Gorgona is Looking at the Sky, 1961, collective work, posing of members and friends of Gorgona, 1961, black-and-white photograph, 220 x 229 mm © Marinko Sudac Collection.

Text provided courtesy of WeLoveBudapest.com

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