Transcript Hungarian logistics opportunities

Hungary: Back on Track - your partner
for business and investment in Central Europe
Zoltan Mester
State Secretary for Competitiveness
19th November 2009, Triest
Hungary at a Glance
• Land: 93,030 km²
• Population: 10,1 million people
• GDP/capita, at PPP (2008 estimate):
EUR 15,800
Hungarian economy
30
27
24
21
18
15
12
9
6
3
0
-3
• FDI per capita second largest
in region
9 000
7 849
FDI per capita
8 000
Production
7 000
Export sales
EUR
6 000
4 711
5 000
4 000
6 253
5 683
3 004
3 000
2 000
1 000
Hungary
Czech
Republic
Slovakia
Slovenia
Poland
2008
2007
2006
2005
2004
2003
2002
2001
2000
0
1999
%
• Open economy - Industrial
production is driven by export
sales
*For Hungary, Poland and the Czech Republic end-2008 data, for Slovakia 30 Sept. data and for Slovenia end-2007 data
Structural problems
• High rate of redistribution
– 50% of GDP*
• High foreign indebtness
– 72,9% of GDP*
• Low rate of employment
– 57%*
Imbalance + Global Crisis
*in 2008
Tackling the impacts of the
global economic crisis
Restoring confidence
Lack of confidence
▪ Communication
▪ Implementation
Global
economic
crisis
Stimulating economic
growth
Slow growth
▪ Economic output
▪ Employment
Imbalance
▪ State household
deficit
▪ Current account
deficit
Restoring equilibrium
Tackling the impacts of the global economic crisis
• Stabilization of the financial system
• Facilitating the financing of SMEs
• Retaining jobs and helping those who loose their
jobs
• Speeding up the use of EU funds
Restoring equilibrium
• More efficient public sector
• Strengthening the sustainability of the pension
system
• Developing a more targeted social system
• Cutting subsidies
Stimulating economic growth
• Strengthening market acquisition
• Strategies for selected sectors
• Simplification of administration – 25% reduction
of red tape
• Structural tax reform
Tax reform
Reducing the
burdens on labour
2009
• Cutting employer contributions by 5%
up to 2× the amount of the minimum
wage
Raising lower PIT band to 7116 Euro
Introduction of general
real property tax,
elimination of current
taxes
Simplification
• Cutting employer contributions after the entire
income from 32% to 27%
• Total grossing-up: Tax base is the gross
wage plus social contributions
• Rates will reduce: to 17% and to 32%
• Lower band limit: 18 727 Euro (grossed up)
• Extending taxes to income and wealth kept in
tax havens
• Adjusting the contribution base to the real
value of the activity
Fighting tax evasion
Securing funding and
taxes on consumption
2010
• Increasing VAT to 25%,
• Preferred rate: 18%  milk,
dairy products, bread, bakery pr.,
district heating
• Increase of excise tax by 5-6% on average
• Unified corporate income taxation, elimination
of surtax
• Limitation of tax allowances and tax
exemptions
• Simplification of duties etc.
Change of tax wedge
65
60
51,0
55
40
54,0
59,8
60,6
56,8
58,8
60,8 60,6
60,5
60,4
58,9 58,9 59,0
51,6
50
45
61,2 61,0
60,6
48,1
43,0
44,7
45,7
average wage
39,8
35
0
0 0
0
0
0
0
0
0
0
0
0 0
0
0
0
0
0 0
0
0
0
0
0
0 0
00 000 000 000 000 000 300 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000 000
5
7
9 10 11 12 13 14 15 16 17 18 19 20 22 24 30 50 60 75 80 90 00 25 50 75 00
1
1
1
1
2
2009
2009. II. félév
half
2010
Cushman&Wakefield has
published a study on the
european industrial and
logistic property market:

According to this classification
Hungary ranks at the 3th place

CEE is a much sought after logistics
and distribution location

Hungary offers high quality
industrial locations and plentiful
land supply at a competitive price
Source: Cushman&Wakefield; European Distribution Report, 2008
Hungary - The Natural Regional Logistic Centre
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Central location in Europe
Border with 7 countries:
4 EU, 3 non-EU member states
Three international major road corridors and the
Danube cross Hungary.
Innovation-logistic ring around Budapest
Záhony the Reloading centre between European
standard and broad gauge railway system along the
corridor Nr. V.
Easy access to the Balkans and Europe
The 11 logistic districts and the 13 logistic centres
are located in the focal points of the international
movement of goods.
Hungary: junction of main European transport corridors
Záhony
Changes in freight transportation in Hungary by modality (1980-2007))
in bn. tkm
public road*
*the method was
changed in 2002
railway
pipeline
inland navigation
Source: KSH 2008
Expanding motorway and highway network
Budapest Airport: air cargo traffic centre
• Direct cargo flight
connections to the Far-East
• Excellent Road Feeder Service
(RFS) into all European
countries
• The fist phase of the new
cargo terminal will be began
in 2009, next to Terminal 2
Continuous modernization
of the railway system
Záhony
Regular scheduled block train connections from/to
Northern and Adriatic Sea Ports
Source: BILK Kombiterminal Zrt.
Logistics Centres and Logistics
Development Areas in Hungary
Slovakia, Poland
Záhony
Slovakia,
Czech Republic SLOVAKIA
Western Europe,
ARA – Ports,
Hamburg,
Bremerhaven
Ukraine,
CIS
UKRAINE
MEZŐKÖVESD
3x
Constanza
AUSTRIA
ROMANIA
Logistics centres
SLOVENIA
TASZÁR
Airport with public, international,
commercial, permanent border
crossing
Airport with public,
international, commercial,
temporary border crossing
Airport development
opportunities
Ports
Railway connection
Container terminal
Koper,
Triest
Existing motorway
Constanza
CROATIA
SERBIA
Motorway to be completed until
the end of 2007
Motorway to be completed
until the end of 2015
Modern warehouse facilities and industrial parks
Logistic parks – Warehousing
• More than 1,51 million sqm of modern warehousing
facilities in Budapest and surroundings
• Average quoting rents between 3,0–4,5
EUR/sqm/month (in Budapest and surroundings)
• Growing interest on developments further away
from the capital; (ProLogis Park Hegyeshalom,
Szeged Logistics Center, Kühne&Nagel-Polgár, etc.)
Greenfield investments
• Well developed industrial parks for greenfield
investments countrywide
• Installed infrastructure of public utilities
• Support of the park owners for building new
facilities
Cost-efficient and highly qualified labour pool
• Productive Hungarian labour force rates highly for innovation and
efficiency in international comparisons
• Logistics faculties in tertiary education countrywide - specialised
knowledge and foreign language skills
• Universities cooperate with several companies to establish teaching
curricula and provide hands-on experience to students
• Competitive wages in the service sector
Hungary
Carrier, Forwarder
792
Driver
550
Forklift Truck Operator
510
General Labourer
482
Logistics Manager
1425
Lorry Driver
762
Purchasing Officer
572
Warehouse Manager
874
Warehouseman
548
Source: Merces Professional Salary Monitor; 2009. 1 EUR = 268.14 HUF
Slovakia
Czech Republic
790
640
590
570
1310
890
620
820
570
1026
743
684
617
1623
873
778
967
680
Logistic action plan
• 17th June 2009. Government approves Logistics action plan,
which contains:
• Mid-term road charging strategy
• Development of customs services
• Transport infrastructure development programmes
• Logistics subsidies
• Education-training programme
• SME logistics programme
• Logistic country-marketing
• Logistic relations-development
The Hungarian Government is ready to provide
the following incentives for logistic investment projects
1.) Direct Cash Subsidy
• option 1: Cash subsidy based on the decision of the Hungarian
Government
• option 2: EU co-financed cash grants
2.) Development tax allowance
3.) Tender supporting job creation
4.) Training subsidy
Záhony and its region
logistics center with growing potential
Location:
 at Eastern border of the EU
 V. Pan-European road and rail
transport corridor: Trieste- Koper Budapest- Kiev- Moscow line
 Linking of the European standard
and the Eastern broad gauge
railway along the corridor Nr. V. at
the North-Eastern border of
Hungary to Ukraine
 close to the Hungarian – Slovakian
border
Thank you for your
attention!
Zoltan Mester
Ministry for National Development and Economy
State Secretary for Competitiveness
Phone: +36 1 374-2820
E-mail: [email protected]