1. Leading regional position in logistics, distribution
2. Hungary is the centre of gravity for distribution in the CEE - Vicinity to customers – short lead-time through proximity and easy access to growing Central and SE European and CIS markets
3. Expanding transport network, intermodal solutions
4. Innovative, qualified logistics professionals, cost-efficient labour pool
5. Cost-cutting by new supply chain solutions, logistics outsourcing
6. Modern warehousing and industrial facilities
7. Investment incentives  

 Given Hungary’s strategic position in the heart of Europe, as well as its role as one of the most important transport nodes in the Central East European region, an ever increasing attention is being devoted in Hungary to first-class supply chain services that help companies reduce costs, add higher value to their activity and raise the level of their services.

 

1. Leading regional position in logistics and distribution

The Cushman and Wakefield’s European Distribution Report (June 2008) evaluates 25 European countries including factors like rents, labour force, road congestion and road freight. Hungary ranked 3rd (following Belgium and Netherlands).

 

2.    Hungary is the centre of gravity for distribution in the CEE 

Vicinity to customers – short lead-time through proximity and easy access to growing Central and SE European and CIS markets

Logistics activity is moving eastwards as companies gravitate to the centre of CEE in the enlarged Europe.

 

Hungary’s central role in transportation and logistics in the CEE region is based on several advantageous features; favourable geographical location; international transport corridors passing through the country; EU membership; steady economic development in some neighbouring countries; presence of multinational companies; intensive foreign trade with EU-members and intensifying relations with states of Asia and the US.

 

Proximity and easy access to markets:

In the enlarged Europe, Hungary’s central location has gained importance for companies planning expansion within

• Central and Eastern Europe – a region benefiting from mass relocation of production facilities;
• the European Union – a consumer market for 493 million people;
• the CIS states, as well as the Balkan region and Turkey – all future high-growth markets.

 

 

Alternative transport routes from Far-East to Europe:

 

- Regular Scheduled block train connections with the main European sea-ports (Hamburg, Rotterdam, Bremerhaven, Antwerp, Koper, Trieste)

 

- Rail connection between China and South-Western Europe through Záhony (Hungary) with a lead time of 18-21 days 

 

3. Expanding transport network, intermodal solutions

The extensive development and the undergoing reconstruction of transport and logistics infrastructure play a significant role in the government’s development strategy which aims to improve competitiveness and economic growth.

 

Continuous development is underway to improve conditions of combined forwarding solutions. More than ten intermodal logistics centres serving at least two transport modes operate in Hungary.

 

4. Innovative, qualified logistics professionals, cost-efficient labour pool

Hungary offers a productive and well-qualified labour for logistics operations. The general productivity level is the second highest in the Central-Eastern European region.

 

Competitive wages in the logistics sector makes Hungary a good choice for logistics companies and distributor centres. 

 

Logistics qualifications based on specialised knowledge and foreign language skills are acquired by 500 students at major universities in Hungary and by a further 200 post-graduate students each year.

 

Nearly 5,000 students receive basic logistics training in ten higher education institutes annually.

 

5. Logistics outsourcing       

Growth of the Hungarian logistics market is dynamic: it has nearly tripled in the past five years.

 

 

 

Several of the largest global contract logistics providers are present in Hungary, offering integrated Supply Chain solutions including DHL, Kühne&Nagel, Schenker, Gefco, GLS and Gebrüder Weiss.

 

Hungarian service providers such as Waberer’s and Masped Group have reached leading regional position in transportation through their extensive regional network and affiliates in the neighbouring countries.    

 

6. Modern warehousing and industrial facilities

Investors can choose from a wide variety of development areas fully equipped with necessary utilities and telecommunications infrastructure. Several logistics and industrial parks and modern warehouses are available outside Budapest, the capital city, in areas of geographical importance.

 

More than 1.3 million sqm of modern industrial facilities are designed for warehousing in Budapest and surroundings. Average rents are between 3,5–4.5 EUR/sqm/month.

  

7. Electronic custom clearence

Hungary as an EU member country is a member of the Customs Union as well. E-customs procedures are available for import and export clearance.

For detailed information please click here.

 

8. Investment incentives 

In certain cases logistics investments are also eligible for government support. EU co-financed cash grant (through tender application) are available

for establishing regional or intermodal logistic centres.

Projects of investment value at or over EUR 20 million can apply for a special incentives package. Click here and learn more about available incentives for logistics investments.  

 

9. Recently established distribution centres

Several major multinational manufacturing and retail companies established regional or European distribution centres in Hungary supplying neighbouring markets from them, including National Instruments, DAF-PACCAR Parts; Pfizer;  Astra Zeneca, Philips, Karl Zeiss, Oriflame, Decathlon.

 

Some logistic services providers have also chosen Hungary for the location of their regional centres including GLS and DHL.

 

Last updated May 2010