Photo: MTI/Tibor Illyés
Hungary is a small, open country with a large export exposure and significant trade and goods turnover. According to him, further growth is rightly expected, as more and more capital is flowing in from abroad, now from the East, but hopefully later also from the West, from the United States of America, he noted.
“Transportation has a future, and our task is to support it, and to provide the infrastructure for it, for which the Budapest Ferenc Liszt International Airport is right here,” said the Minister of National Economy, who called it the gateway to the country, which was bought back by the government in the middle of the year airport, near which the new warehouse is located.
The competitiveness of logistics must be preserved, and Hungarian companies must be strengthened against foreigners, said the head of the ministry.
He emphasized that the most important challenge for the Hungarian government is the restoration of the economy and the implementation of the new economic policy action plan. Its three elements are increasing the purchasing power of incomes, providing affordable housing, and an enterprise program aimed at doubling the size of small and medium-sized enterprises. The Sándor Demján Program, which serves the development of companies, will mobilize HUF 1,400 billion. This will be an important step in order to achieve growth of over 3 percent next year, he added.
Zoltán Joós Jr., Karzol-Trans Kft. its managing director and owner said: for the construction of the warehouse and the warehouse capacity expansion that took place in the Karzol Logistics Center, Karzol-Trans Kft. It won HUF 820 million in conditionally refundable European Union support from the Széchenyi Terv Plusz program.
With the newly delivered 10,000 square meter storage hall, the center’s storage capacity has been tripled, and together with the rental properties, they now provide warehousing services on 40,000 square meters. In the warehouse built as a separate part of the Karzol Logistics Center, an automatic warehouse section has been created, in which palletized goods can be loaded and unloaded with driverless material handling devices (AGV), he said.
The warehouse was built in the spirit of energy efficiency: a heat pump system and a 300-kilowatt solar park were also installed.
He said that this year they stimulated the Hungarian economy with HUF 8 billion purchases, as the total cost of the investment exceeded HUF 4 billion, and they spent another HUF 4 billion on modernizing their truck fleet. He added that the Karzol Logistics Center will be further expanded with new warehouses in their 15-hectare development area.
Karzol-Trans Kft. It started operating in 1997 as a road transport company. They expanded their activities with warehouse logistics, and in 2020 they opened their first roll washing plant. They have a fleet of over 100 vehicles and 350 employees. The Karzol Logistics Center is located on the border of Ecser, next to the M0 ring road.
According to public company data, the company’s net sales amounted to HUF 8.2 billion last year, after HUF 7.6 billion in 2022, of which exports were HUF 6 billion and HUF 5.1 billion. Their profit after tax was almost HUF 730 million in 2023, after HUF 419 million in 2022.
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What are the key trends shaping the future of logistics in Hungary?
Interview: The Future of Logistics in Hungary
Interviewer (Time.news Editor): Good day, and welcome to our special segment on the evolving logistics landscape in Hungary. Today, we have with us Zoltán Joós Jr., the managing director and owner of Karzol-Trans Kft., a company at the forefront of this industry. Zoltán, thank you for taking the time to join us.
Zoltán Joós Jr.: Thank you for having me. It’s a pleasure to be here.
Interviewer: Let’s dive right in. The Hungarian economy is seeing an influx of foreign capital, especially from the East. How does this influence the logistics sector, and what opportunities do you see for growth?
Zoltán Joós Jr.: Hungary’s position as a small, open economy makes it inherently dependent on trade and exports. The increasing foreign investment is a positive sign, and it’s crucial for us to establish a logistics infrastructure that can support this growth. With Budapest Ferenc Liszt International Airport being recognized as the “gateway” to the country, we have a strong backbone to build on.
Interviewer: That’s an intriguing perspective. The government has articulated a new economic policy focused on increasing purchasing power and supporting small to medium-sized enterprises. How is your company adapting to these initiatives, particularly the Sándor Demján Program?
Zoltán Joós Jr.: The Sándor Demján Program is a remarkable initiative for companies like ours. We recently received HUF 820 million in EU support under the Széchenyi Terv Plusz program to expand our warehouse capacity at the Karzol Logistics Center. This has allowed us to triple our storage capacity to 40,000 square meters, which is a significant boost in operational capability.
Interviewer: That’s impressive! Can you tell us more about the technology you are integrating into your logistics operations, particularly with the new warehouse?
Zoltán Joós Jr.: Absolutely! The new warehouse includes an automatic section equipped with driverless material handling devices, known as AGVs. This innovation not only enhances efficiency in loading and unloading but also aligns with our commitment to energy efficiency. We’ve installed a heat pump system along with a solar park that generates 300 kilowatts to power our operations. As we move forward, sustainability will be a key focus in our logistics strategy.
Interviewer: The integration of technology and sustainability is crucial for modern logistics. However, with such rapid changes, what do you think is the biggest challenge for Hungarian logistics companies today?
Zoltán Joós Jr.: One of the primary challenges is maintaining competitiveness. As foreign players enter the market, Hungarian companies must adapt quickly to new standards and expectations. Additionally, the government’s support in restoring the economy and implementing favorable policies is crucial to leveling the playing field and enabling us to compete effectively against foreign enterprises.
Interviewer: You mentioned the focus on restoring the economy. What role do you believe the logistics sector will play in achieving the government’s growth target of over 3 percent next year?
Zoltán Joós Jr.: The logistics sector is fundamental to economic growth because it underpins trade and contributes significantly to the GDP. As we improve our logistics capabilities and infrastructure, we can facilitate faster and more efficient movement of goods. This not only boosts exports but also stimulates local businesses. Moreover, as small and medium-sized enterprises expand through programs like the one we’re participating in, we will see a ripple effect throughout the economy.
Interviewer: Zoltán, thank you for those insights. It seems that Hungary’s logistics sector is poised for significant growth, fueled by strategic investments, advancements in technology, and government support.
Zoltán Joós Jr.: Thank you for the opportunity to discuss these important topics. I believe with the right focus and collaboration, we can achieve great things in the logistics industry and positively impact the broader economy.
Interviewer: We look forward to seeing how the landscape evolves. Thank you again, Zoltán, for your time and thoughts today.
Zoltán Joós Jr.: My pleasure! Thank you.