Hungary and CEE Region: Possibilities ??Expansion options !!

ITD Hungary Logistics Road showRotterdam, 19.11.2008.Ernő Pető

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Agenda

Market development- position of Port of Rotterdam

Transport connections - relations

Current and future business development initiatives

Conclusions

Q/A

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”Good hinterland connections

play

a major role.”

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SWOT analysis Hungary Strengths geographical and economic geographical

conditions

regional distribution terminal (HUB)

density of railway and road networks

high railway transport ratio

Weaknesses Transport network is radially structured.

Danube as infrastructure and the port network is not sufficient

low level mobility of workforce

intermodality and interoperability are incomplete, cooperation is poor between the sub-sectors

Opportunities the country and the capital may become a key

strategic geographical location

increase of the east-west trade turnover and between the EU and Asia – regional HUB

river may substantially increase in connection with the EU enlargement

emerging regionalism and the growth poles

Threats becoming a transit country: chance for only the

negative impacts

railway transport continues to lose market share

insufficient development: neighbouring countries may become competition in transport/logistics

shortage of financing

sub sector cooperation will be not efficient

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Holland

Ruhr+NRW

Other

Rotterdam80%

40%

10%

BremerhavenHamburg

Antwerp

Le Havre

Images of the hinterland 3 zones

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Development of CEE hinterland

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Constanta58-1,4

Koper15-0,32

Trieste38-0,22

European ports from CE region

Rotterdam406-11,8

HBG/BRV140-9,9/65-4,5

Antwerp182-8,2

Rijeka13-0,15

million tons

million TEU

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Results of railway liberalisation in CSEE region

Dominant presence of private railwaysCTL Logististic with DB

PKP loses market

Merger of Czech and Slovak railways expected

+ privates

Green light for RAILSELECT

2007: !th biggest cargo railway in

Europe

Preparing for privatisation,

investment (80 M EUR)

More dominancy in the region

GLOBAL PLAYER!! State monopoly until 2015

German orientation,marginal impact of

private railways

Old sturcture will remain

New structure, but private railways not

started

Integrated operation

Outsorcing of assets, service remains state

monopoly

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Rotterdam > destination Europe Intermodal - already 316 shuttle trains per week

Source: Rail Cargo Information Netherlands

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WELSWELSSOPRONSOPRON

KOPERKOPER

ZÁHONYZÁHONY

BUCURESTIBUCURESTI

ROTTERDAMROTTERDAM

ARADARAD

KIEVKIEV

MOSCOWMOSCOW

BILKBILK

WIENWIEN

PRAHAPRAHA

MCCMCC

DUISBURGDUISBURG

BREMERHAVENBREMERHAVENHAMBURGHAMBURG

not yet public

HUNGARIA INTERMODAL

HUPAC

ERS

ICF

METRANS

DEBRECENDEBRECEND.STREDAD.STREDA

Current situation and development of train connections to/from Hungary

Current Planned BoXexpress

TRIESTETRIESTE

Alpe-Adria

M3M3

MUNICHMUNICH

HERNEHERNE

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ROTTERDAM

AMSTERDAM

ANTWERPEN

1820 KM

BUDAPEST

1640 KM

CONSTANTA

RENI

IZMAIL

Inland Navigation – Location of Csepel Freeport

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Top issues

Sopron (GYSEV container terminal, shunting yard)

Budapest (BILK Kombiterminal, Mahart Container Center, M3 Container Terminal)

Záhony: dry port – 89 mm difference in gauge of railway tracks (1.436 – 1.525 mms)

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HELSINKI CORRIDORS and key points in Hungary

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7

4

4

5

5

5 / a

5 / c

10 / a

BudapestSopron

Záhony

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Hungary

Switzerland

Italy

Austria

Russia, Ukraine& other former CIS

Romania

Bulgaria

Germany400.000

1.000.000

1.000.000

50.000

700.000

300.000

350.000

1.200.000

Freight transportationFreight transportationMain direction flows (in tons)Main direction flows (in tons)

SOPRON

Greece

BENELUX150.000

750.000 550.00

0

Turkey

Serbia,Macedonia

Croatia,Slovenia

10.000

100.000

France10.000

Spain &Portugal

10.000

75.000

Bosnia-Herzegovina

Slovakia1.000

10.000

Czech Rep.

Poland10.000

20.000

SwedenDenmark3.000

2.000Moldavia

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GYSEV , Sopron

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BILK Kombiterminal, Budapest

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OUTSTANDING ADVANTAGES - STRATEGIC POSITION

THE AREA PROVIDES

EUROPEAN

CONDITIONS IN THE

PROXIMITY OF

EMERGING MARKETS

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Business development initiatives, opportunities

Logistics

Hungary: regional physical distribution HUB

Záhony: dry port (Ukraine, Russia, Romania)

new logistic centres, new intermodal terminals

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Conclusions

Importance of Hungary and SEE region for Rottterdam:

fast growing area

part of total European network (multinational companies)

Hungary:

regional logistic centre

gateway for East Europe and CIS countries

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Any questions ?

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For further information feel You free to contact:

Ernő I. PetőRotterdam Representative

for Hungary and South-East Europe

T: + 36 1 240 0479

F. + 36 1 240 2615

M: + 36 30 932 0099

BudapestDesk@portofrotterdam.com

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Thank you

for your

kind attention!