Budapest Airport and DHL Express have signed a strategic agreement to develop a new facility for the Deutsche Post DHL Group. This is the second large-scale investment by Budapest Airport and DP DHL, after the latter’s freight-forwarding business units moved into a new facility built in the Airport Business Park in 2013.
Ferenc Liszt International Airport will develop a large warehouse and office complex for DHL Express. The full area of the new base near Terminal 1 will reach 13,000 square metres. Preparation of the site has begun and it will be handed over to Hungarian construction company Market Építő Zrt. this month.
DHL Express` new premises will accommodate about 300 employees. Today, the company performs its daily operations with two aircraft: an Airbus A300-600F connecting Budapest with the main European hub in Leipzig and a Boeing 737 handling inbound volumes from Brussels.
The company has been present in Hungary for more than 25 years. The new lease agreement between Budapest Airport and DHL Express for another 20 years reflects the commitment of Deutsche Post DHL Group to Hungary and the airport.
With the Hungarian economy producing stable growth in the past few years and increasing demand for the fast delivery of different products worldwide, the so-called integrator business is growing steadily in the country.
Ferenc Liszt airport is the largest job catalyst in the southern Pest region, with more than 10,000 people working at 70 different companies and organisations at the airport. This number will be boosted by the 300 DHL Express employees, who will arrive at the new facility in July 2017.
Budapest Airport CEO Jost Lammers said at the signing of the agreement: “We see this as yet another major step forward, not only for the airport but for the growing Hungarian economy. This is another successful example of Hungarian-German co-operation, creating growth and job opportunities in Hungary.
“Aviation connectivity both in the cargo and the passenger area is a key factor for the growth of a modern economy, and we are committed to contribute to this. The construction of the new DHL Express facility is an integral part of our BUD 2020 development program, which earmarks HUF 50 billion for airport development over the next five years.”
DHL Express Hungary managing director Zoltán Bándli said: “The move of DHL Express’ operations to Budapest Airport is a large-scale project. The value of the greenfield investment will reach EUR 25 million, the largest in the CEE region.
“It reflects our commitment to building a state-of-the-art facility, to optimise our business procedures and strengthen cost-effectiveness. The fully automated new sorting system and enhanced shipment processing capabilities will allow us to implement an even earlier courier departure and later courier arrival.
“Based on the wider service window, we will examine the range and the coverage of our premium services.
“We have been working hard in recent years with our partners to tailor the project to their present and future needs. As a result, we have signed one of the biggest lease agreements in the Budapest real estate market this year.”
Budapest Airport property and cargo director René Droese said: “We see very promising trends in both the integrator and the cargo businesses, so the airport is the best possible location for a new DHL Express base. The long-term agreement just signed creates ideal circumstances for another DHL Group company to benefit from the airport location and to grow their business.”