ACE 2024 Central Europe gathered a host of industry experts, stakeholders, and key players to discuss developments, challenges, and opportunities in the logistics sector. With a keen focus on expanding e-commerce capabilities, navigating geopolitical complexities, and embracing digitalisation, the event solidified Budapest Airport’s commitment to becoming a focal point of trade.

Francois Berisot, CEO of Budapest Airport, kicked off the conference with an opening address that underscored the airport’s commitment to enhancing its air cargo role, emphasising Budapest’s unique position, and the hub’s tripled cargo volumes over the past decade.

“We are proud to say that Budapest Airport is not just a local success story but a regional powerhouse in air cargo. Our aim is to make Budapest one of the most important air cargo hubs in Central and Eastern Europe,” Berisot asserted.

Economic outlook

Marcell Németh, Senior Manager at KPMG, provided a broad economic overview with an emphasis on how the region’s modest but stable GDP growth influences air cargo demand. With a projected 2.4 percent growth rate, Central Europe presents a promising landscape for air cargo development, driven in large part by rising household consumption and e-commerce.

“The Central European region, while relatively small compared to Western Europe, is growing in terms of logistics and e-commerce, making it an emerging market for air cargo,” Németh explained.

Geopolitical challenges

Leading a panel on the current realities, trends and developments in the air cargo industry, attendees explored the geopolitical complexities impacting the air cargo industry, such as fuel price volatility, political conflicts, and trade barriers, which are continuing to affect cargo operations. Polmans underscored the necessity for the industry to remain agile, embracing uncertainty as the new normal.

Steven Polmans, Chairman of TIACA, commented: “Geopolitical uncertainty is part of our industry’s daily reality. While crises like the Suez Canal blockage or the recent Red Sea tensions are unfortunate, they can also create unexpected demand for air cargo.”

e-commerce boom

e-commerce was a central theme, with several sessions dedicated to discussing the sector’s rapid growth and its impact on air cargo logistics. Budapest Airport is aiming to become a major e-commerce gateway, with approximately 40 percent of its total cargo volume now linked to e-commerce shipments. Atilla Korkmazoglu from Celebi Aviation, emphasised the strategic importance of location in connecting Asia and Europe, providing an efficient route: “Budapest’s position is an undeniable asset. We’re increasingly seeing e-commerce shipments pass through here en route to Western Europe and beyond.”

Voices from the industry

In a panel focused on customer perspectives, representatives from Lenovo, Samsung SDI, and Bosch shared their views on the evolving demands in air cargo logistics. The panellists underscored the need for flexibility and reliability as they navigate fluctuating demand in sectors like high-tech and electric vehicle (EV) batteries.

“The EV sector is heavily dependent on robust logistics networks, particularly air cargo, for rapid delivery of components. We see this as a long-term growth area, but it also brings logistical challenges,” Éva Gerendeli from Samsung SDI, said.

“As e-commerce and EV logistics grow, we must also address the environmental impact of our operations,” Lenovo’s Martin Polakovic added. “Our customers are increasingly focused on sustainability, and as an industry, we have to meet that demand by finding greener solutions.”

Budapest’s commitment

József Kossuth, Cargo Director at Budapest Airport, outlined the airport’s comprehensive cargo development strategy, which focuses on infrastructure expansion, community engagement, and digitalisation. Budapest Airport, handling over 273,000 tonnes of cargo annually, has positioned itself as a leading hub in the region by investing in facilities like the Cargo City Phase Two expansion.

“Budapest Airport is becoming a gateway in our region. We’re embracing e-commerce and expanding our infrastructure to accommodate growing demand,” he explained. The airport’s plans include new facilities, improved handling procedures, and digitised services to enhance operational efficiency.

“We’re implementing real-time tracking systems, and our community system will help integrate data across the supply chain,” Kossuth continued.

As the conference drew to a close, it became evident that Budapest Airport is well-positioned to lead air cargo growth in Central and Eastern Europe. Through strategic investments and a focus on e-commerce, digitalisation, and community building, Budapest is preparing to meet the challenges and seize the opportunities that lie ahead.

“Budapest Airport is not merely following trends in air cargo; we’re setting them,” Berisot concluded.