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BUD Cargo team keeps its word

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At the BUD Cargo Forum on 27-28 September 2023, cargo director Jozsef Kossuth (JK) and his managers were betting that BUD would handle more than 200,000 tons in 2023 for the first time in the airport’s history. A year before, it was a total of 194,000 tons. In the end, the figure was 201,300 tons, which corresponds to an average increase of 3.8% year-on-year. Their estimate, based on half-year figures, was therefore correct.

Jozsef Kossuth is Cargo Director of Budapest Airport and Board Member of the local Logistic Centers Association (MLSZKSZ)  –  photo: CFG/hs

Even more pleasing: cargo continued to grow in Q1, 2024, with 62,000 tons handled in the first three months, including 23,720 tons in March. These were the strongest figures ever achieved into the start to a year and in a single month.

Changing of the guard
BUD has thus become the most challenging cargo competitor in Eastern Europe, where 43,800 tons were handled at Prague Airport in 2023, vs. 245,000 tons at Vienna Airport, according to their websites. However, compared to 2019 when VIE reported 283,000 tons, the current figure appears rather sober.

The longer-term trend reveals a changing of the guard in the cargo ranking of airports between Germany’s eastern border and the Black Sea region. At no other airport has cargo grown as dynamically as at Budapest Liszt Ferenc International (+120% increase from 2015 to 2023, or 48.5% increase from 2019 to 2023).

Cargo comes first
The reasons are widely known. First and foremost, it is due to the management’s clear focus and commitment to the cargo business.

Visible proof is its Cargo City, which was inaugurated in 2019 and extended by 10,000 m² in FEB24 (+30% handling capacity increase), thanks in part to a multi-million-euro investment by the airport and also co-operation with ground handlers and main tenants, Celebi Ground Handling Hungary and Menzies Aviation Cargo.

Another advantage that plays into BUD’s hands is the fact that there is no airport in Eastern Europe with hub status, except for Vienna, home of Lufthansa subsidiary, Austrian Airlines.

Investing in ground Infrastructure
Meanwhile, BUD’s expansion continues. During the upcoming second development phase of the Cargo City, additional warehouses will be erected, and cargo airlines offered new freighter stands right in front of the building, speeding up loading and unloading of the aircraft. This infrastructural enlargement aims to elevate the airport’s annual cargo capacity to 300,000 tons, which translates into a 40% capacity increase of BUD Cargo City. With these developments, Mr. Kossuth is optimistic that more freight carriers will choose BUD as their cargo airport of choice:

Main deck capacity spurs growth

JK: Besides the development of cargo infrastructure and the efficient cargo operational environment, the steadily expanding cargo connectivity is the third key element to the success. In our case, the strong presence of full freighters at BUD are the backbone to our growing volumes, complemented by an extensive belly cargo and RFS network. In bold figures: about 60 weekly full freighter flights accounted for a total of 120,000 tons of cargo in 2023. Many of our existing airline partners (DHL, UPS, FedEx, Turkish Cargo, Qatar Airways, Cargolux, Hungary Air Cargo / Wizz Air), increased capacities, and newcomers e.g. from China entered the market (Sichuan Airlines, SF Express, My Freighter Airlines, and some others).”

The Cargo City, opened at the end of 2019, spurred cargo growth at BUD, as the chart shows – Courtesy Budapest Airport Cargo

Speed requires no witchcraft
In addition to handling general cargo, the e-commerce sector is experiencing a remarkable ascent at Budapest as well. All major integrators have been operating there long-term: DHL Express, UPS, and FedEx. During the last 2-3 years, more new service providers started co-operation with large e-commerce companies, Meanwhile, BUD has gained the status of a regional air freight gateway for Alibaba, Shein or Temu, amongst others.

When it comes to handling express shipments, BUD is considered a very fast airport. Director of Cargo, Kossuth explains why this is the case:

Air beats ocean, rail, and road

JK: “e-commerce consigners use all transport modalities, sea, rail, air for their intercontinental transports, but prefer air solutions due to speed, security and reliability reasons. Large numbers of e-commerce volumes can be handled at an airport if professional service providers manage ground operations. BUD offers the market plenty of capacities on the airside and landside, allowing for the rapid processing of shipments. Important to mention is also that the customs authority has digitized processes allowing ground handling agents the fast throughput of large numbers of consignments based on strict safety controls.”

One final question to the Cargo Chief remains: How many tons does BUD expect to handle in 2024?

JK: “It is advisable to be cautious when you talk about the future – this is what we have learned especially during the last 5 years.We started Q1 with more than 20k tons per month. Provided this trend goes on, we will close the year with around 240,000 tons.”

René Droese moves from BUD to MUC

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René Droese, the deputy CEO and Chief Development Officer of Budapest Airport Zrt., left the company on 31MAR24. During his tenure of 17 years, he held various leading management positions. Going forward, he takes on the role of Managing Director of a company belonging to the Munich Airport Group. Its name: LabCampus GmbH.

New job, new responsibilities, new business environment. A wide range of new tasks awaits René Droese in MUC  –  photo: CFG/hs

The manager has put Budapest on the global air cargo map since the opening of BUD Cargo City in 2020. This includes the development of its express business as seen by an increasing number of flights operated by DHL Express and on behalf of its sister company Global Forwarding, U.S. integrator FedEx, and the Hungarian Post. In addition to his cargo responsibilities, he developed passenger capacities via Pier 1, the new Terminal Parking facility, a number of hotels already built or currently under construction in the immediate vicinity of the passenger terminal, and numerous capacity improvements at Terminal 2. Further projects implemented under his lead include the preparation of Terminal 3, as well as several infrastructure developments, such as hangars, office refurbishments and facilities for airport partners, including Wizz Air, Lufthansa Technik and Aeroplex.

Opening doors to the ecosystem
In his new role at LabCampus, he will be responsible for developing an area at the site of Munich Airport comprising approx. 500,000 m², creating a working environment for promising start-ups that can benefit from the local infrastructure, encouraging encounters and dialogues with each other. This includes opening doors to the ecosystem in the Bavarian metropolitan region and to international innovation hotspots. Hence, the manager faces a very demanding, multifaceted task in bringing together young companies and their innovators with research institutions and high-tech industries across various sectors, focused on incubating and creating new market opportunities. The three catchwords written on his task board are: ‘connect’, ‘create’, and ‘collaborate’. A second major task is to take responsibility for the development and leasing of non-passenger related airport properties including new cargo facilities for MUC’s Cargo community. For this, he can make use of his vast freight experience gained in Budapest.

Lots of success in MUC
Ever since it became known that Droese was leaving Budapest Airport, there has been an avalanche of reactions. After all, he has left deep footprints there. Here is a brief selection:

Jozsef Kossuth, Head of Cargo Budapest Airport Zrt, stated; “I would like to express our gratitude on behalf of the entire BUD Cargo community, cargo partners, our cargo team and especially myself, for all René has accomplished, his efforts, professionalism, motivation, engagement, support, humanity, collaboration, and fairness coupled with great energy to develop air cargo in the last 17 years at and around Budapest Airport. We definitely wouldn’t be where we are today in cargo without René and his enduring commitment. Being my superior for quite some time, he acted more like a mentor and colleague than a boss. I promise to René that we continue our cargo journey at BUD, and I wish him lots of success in MUC!”

He did an amazing job
Dr. Marie-Theres Thiell, Member of the Supervisory Board, Member of the Board of Trustees and Managing Partner of the business network, DialogueHungary had this to say: “Dear René. Congratulations on your new tasks 💐. I remember countless flights on which we met on the Dusseldorf – Budapest route and vice versa. Like me, you felt very much at home in Budapest and were an integral part of the local business community. I wish you much success and energy for the new challenges in Munich.”

Others reacted by posting short statements on LinkedIn, like TIACA Chairman, Steven Polmans: “Congrats René Droese and all the best and lots of success and fun in your new role!”

So did Tiago Lopes, Senior Aviation Engineer at the European Investment Bank: Dear René Droese. This is a fantastic challenge after an already great career! I am sure you will succeed in your future role. All the best!!

Another post worth mentioning comes from Lyudmíl Elshishki, Network Operations Central Europe, DHL Express: “Congratulations and all the best. It’s been great to witness all that you’ve done for Budapest Airport and even more so a real pleasure to work with you!”

Droese leaves big footprints
Last but not least, Nouri Neller, Managing Director FREX Air Cargo, delivered these remarks: “René Droese did an amazing job in Budapest and brought cargo traffic up front. Word of this achievement has spread far beyond Hungary and has been a topic at international conferences and panels, as seen at the latest Air Cargo Europe event. The upswing in air freight is benefiting the local economy, which is offered reliable supply chains thanks to the steadily growing number of cargo flights to and from BUD Airport. René has left a clear mark in Budapest, which a successor must now fill.”

AFKLMP and GTS Group extend SAF cooperation

Two years on since the industry’s first SAF program was first launched, and the first contract extensions are already being signed: Air France KLM Martinair Cargo announced last week that the Global Transport Solutions Group (which has its own Going Green initiative) has co-signed to continue supporting SAF flights, together. (The Global Transport Solutions (GTS) Group includes Marinetrans and Best Global Logistics (BGL).) Only when companies work together, can SAF development progress, and positive, environmentally-friendly change be brought about in the logistics and air freight industry. The program enables partners to opt for partially-SAF-powered flights, thus decreasing the carbon emissions impact of their shipments.

In this together for the longer term. Image: AKLMP Cargo

John Burgstra, Co-CEO of Global Transport Solutions, announced: “We are pleased to extend our long-term collaboration with AFKLMP Cargo’s SAF program. This partnership reflects our commitment to sustainability and our shared determination to reduce the impact of aviation on our planet. By participating in the SAF program, we are proudly contributing to the scale-up of biofuels for the aviation sector and to making our shipments more sustainable.”

GertJan Roelands, SVP Commercial at Air France KLM Martinair Cargo, commented: “We are thrilled to continue our collaboration with the GTS Group on Sustainable Aviation Fuel (SAF), as part of our ongoing efforts to reduce our carbon footprint. We commend the GTS Group for their leadership in sustainability, and we are proud to partner with them as we work towards a more sustainable future for the logistics and air freight industry. Since introducing the first SAF program in 2022, we have partnered with over 60 stakeholders and introduced numerous solutions to further reduce our industry’s carbon footprint. While we acknowledge that we have a long way to go, we remain committed to making a difference and taking action on this critical issue.”

Brussels Airport granted new environmental permit

On 29MAR24, Brussels Airport received a new environmental permit “of unlimited duration” from Flemish Environment Minister, Zuhal Demir. Its existing permit would have expired on 08JUL24. Unlimited duration sounds good but is shackled to strict operating conditions. While the airport has the go-ahead now, to continue its activities, it is also bound to observe conditions pertaining to aircraft movements and noise. This means that growth and development is secured in the short-term, but the conditions could impact the airport’s longer-term growth beyond 2032, since flight movement numbers are restricted. According to the release, this “jeopardizes the future of the entire airport ecosystem. 240,000 flight movements per year gives a growth margin until 2032, however an adjustment will be necessary to allow for growth thereafter. In addition, the license also contains strict noise reduction targets.”

That said, the release also stipulates: “First the European ‘Balanced Approach’ regulation must be followed before such operating restrictions can be imposed. The outcome of this procedure will have to show whether the present measures can be effectively imposed or require adjustments. If these restrictions are implemented as such, they would lead to the airport having to cut back on its activities which would have a severe impact on the connectivity of our country and the socio-economic role of the airport, with today accounts for 64,000 direct and indirect jobs.”

Brussels Airport has always been keen to establish a balance between fulfilling its socio-economic role and ensuring connectivity. And is concerned about its impact on the environment, thus sustainability features top in its business strategy.

Second B777F to fly for YunExpress

Atlas Air and YunExpress announced last week, that they are expanding their strategic partnership. From next month on, a second Boeing 777-200 freighter will commence long-term charter operations for YunExpress. Operating between China and the United States six times per week, this second B777F aircraft freighter will serve to augment YunExpress’ international logistics network, particularly with regard to offering capacity for cross-border e-Commerce from China.

Expanding its partnership with YunExpress. Image: Atlas Air

Michael Steen, Chief Executive Officer, Atlas Air Worldwide, said: “We are delighted to expand our strategic and long-term partnership with YunExpress. Cross-border e-Commerce is driving significant demand for Atlas’ dedicated large widebody freighter capacity. Through our partnership with YunExpress, we are strengthening our position as the preferred supplier of dedicated air freight capacity to leading players in the e-Commerce industry. Atlas has unmatched global operating capabilities and high-quality solutions that power our customers’ global supply chains.”

Wang Zuan, President of Zongteng Group, commented: “Last December, YunExpress, in collaboration with Atlas, launched charter service between Xiamen, China and Miami utilizing a 777 freighter, which has been operating with solid performance. The signing of this new long-term agreement further deepens and strengthens the strategic partnership between us. Through YunExpress, we aim to meet the growing demand for air freight capacity between China, Europe, and North America. Looking ahead, we aim to further expand routes and fleet size to provide customers with more convenient and diverse global transportation options, ensure supply chain resilience, and support the steady development and growth of our customers’ international businesses.”

CACC Cargolinx opts for HLT’s Hermes SaaS Ecosystem

Building on a business relationship that already exists since 12 years, CACC Cargolinx and Hermes Logistics Technologies (HLT) recently signed a new, five-year agreement that will see the software provider roll out its newest, cloud-based cargo management system (CMS) – Hermes 5 SaaS Ecosystem – across CACC Cargolinx’s operations at Cairo International Airport in time for summer 2024. Prior to this move, the two companies collaborated closely to establish requirements so that the delivered solution is customer-specific and designed to grow with the organization. This upgrade will bring about even greater process efficiencies and digital progress for CACC Cargolinx, which is also set to benefit from a number of integrations and solutions from the Hermes pay-as-you-go Ecosystem, such as Hermes Business Intelligence, Hermes Track & Trace and Hermes Integration (API). With Hermes 5, CACC Cargolinx gains transparency on areas of improvement: “The upgrade will […] address all existing process gaps, and implement best-practice approaches to address anticipated future needs for its operations in Cairo and beyond.”

Cloud-based upgrade for greater efficiency. Image: CACC Cargolinx

Yuval Baruch, Chief Executive Officer (CEO), HLT, commented: “We have undertaken a very thorough scoping study with CACC Cargolinx, deploying our air cargo experts to uncover not only the company’s existing requirements but also those expected in the future, and we have tailored our solution, ensuring it is future-proofed. This project demonstrates our commitment to collaborating with our customers and our detailed approach to SaaS migrations, particularly when it comes to factoring in future innovation – it all comes down to delivering greater operational efficiency that will support business growth for the longest possible term.”

Ahmed Fahmy, Chief Technology Officer, CACC Cargolinx, said: “CACC Cargolinx is committed to delivering advanced logistics operations at Cairo International Airport, and our investment in the Hermes Ecosystem represents a significant step forward in our digitalization roadmap. We are committed to providing our customers with the most efficient and reliable cargo handling services possible […] HLT’s cloud-based SaaS ecosystem will allow us to drive even greater efficiencies for our airline customers both here in Cairo and beyond. The end-to-end solution integrates easily with both our existing and planned systems and we expect the Business Intelligence add-on to provide a more robust foundation for us to take another step forward with our predictive capacities on operational and commercial matters.”

Cool Chain Association welcomes MSC Air Cargo

Joern Roehl, Head of Products, Quality and Transformation, MSC Air Cargo. Image: MSC Air Cargo

The Cool Chain Association (CCA) continues to grow. MSC Air Cargo became its latest member, recently. The CCA was set up to offer a platform where member companies can collaborate to improve the temperature-controlled supply chain. MSC Air Cargo, part of the Swiss, 1970-incepted MSC Mediterranean Shipping Company, which is meanwhile present in 155 countries across the world, offering a strong network of road, rail, air, and sea transport, will thus work together with CCA members to drive quality and innovation in the temperature-controlled supply chain. The end result: reducing food loss/wastage and improved pharmaceuticals transport. “The Association has recently launched a best practice video for perishables based on key findings from recent trials by CCA Board member the Perishable Products Export Control Board (PPECB), and is planning to pilot similar trials in the pharmaceutical sector,” the release states.

Joern Roehl, Head of Products, Quality and Transformation, MSC Air Cargo, explained: “As a member of CCA, we are partnering with leaders in the cold chain to collaboratively address challenges and drive innovation. MSC Air Cargo will be contributing to the community surrounding quality and value in the temperature-controlled supply chain.”

Stavros Evangelakakis, Chairman, CCA, and Head of Global Healthcare, Cargolux, said: “CCA members continue to work together to find new ways to improve the temperature-controlled supply chain, and MSC Air Cargo brings immense knowledge and experience to help us achieve those goals. We are confident that we will benefit, not only from MSC Air Cargo’s great insight but also its high profile to encourage others collaborate with the CCA in its pursuit of greater efficiencies throughout the cool chain.”

Challenge Group offers scheduled BOM flights ex LGG

The Challenge Group doubles the number of weekly flights between India and Europe, announced Challenge Group’s CCO, Or Zak – photo: company courtesy

Challenge Group recently announced the launch of scheduled services between Liège (LGG) and Mumbai (BOM). Its second converted B767 freighter will be deployed on the route, twice a week, providing a 52-ton cargo uplift per take-off. Rainbow Aviation, Challenge Group’s GSSA partner in India, manages the bookings out of India and serves as the customer contact for the entire Indian freight forwarding community. The newly instated direct connection offers sought-after capacity between Europe and India, with opportunities to onforward to and from the U.S. Pharmaceuticals and electronics will form most of the baseload, though Challenge Group is known for transporting large and complex main deck cargo shipments, thus these will also be frequently carried.

Or Zak, Chief Commercial Officer of Challenge Group, revealed: “Given that India is striving to become the factory of the world, and the production of key verticals has significantly increased during the past few years, our strategic decision to now launch a regular and direct India-Europe service goes some way towards satisfying the intense customer demand on this route. In fact, after the inaugural flight, we are already adding a second weekly frequency from April onwards.” Extensive market preparation was carried out over the past year as the airline arm operated a growing number of consistent charter operations across Indian airports including DEL, HYD, and BLR. This was followed by a targeted roadshow in BOM and DEL in JUN23, where discussions were held with key logistics stakeholders to establish their needs. “Our participation in the recent Air Cargo India event in FEB24, further solidified our presence and network within the sector, paving the way for the successful introduction of our Mumbai freighter service,” Or Zak concluded.

NBO-AUH flight sees take-off

It started with a Memorandum of Understanding detailing partnership expansion between Etihad Cargo and Astral Aviation, and was sealed with the inaugural Nairobi-Abu Dhabi flight on 21MAR24. That flight opened the schedule that sees regular services between Nairobi and Abu Dhabi starting with effect 28MAR24. “As part of the capacity sharing agreement, Etihad Cargo’s partners and customers will benefit from capacity on board Astral Aviation’s weekly flights from Nairobi to Abu Dhabi,” the release states.

Etihad Cargo and Astral Aviation celebrate inaugural NBO-AUH flight. Image: Etihad Cargo

Two cargo experts have come together to support Etihad Cargo’s footprint within Africa, and enhance freight opportunities between the UAE and Africa. “The inaugural flight was strategically timed to accommodate the increased demand for flowers, demonstrating the synergy between Etihad Cargo’s global reach and Astral Aviation’s strong African network. The successful operation underscored the partnership’s potential to enhance cargo capacity and offer efficient logistics solutions, particularly for time-sensitive shipments such as perishable goods,” it goes on to say. Not only do Etihad Cargo’s customers benefit from the weekly codeshare with Astral Aviation, Etihad Cargo will also offers additional belly capacity on board of the airline’s daily passenger flights to Nairobi, starting 01MAY24. Plus, it operates a weekly freighter service ex Nairobi to Amsterdam via its Abu Dhabi hub.

Stanislas Brun, Vice President Cargo of Etihad Cargo, said: “The successful inaugural flight from Nairobi to Abu Dhabi is just the beginning […] Together, Etihad Cargo and Astral Aviation will offer air cargo solutions that cater to the dynamic needs of partners and customers, especially in the fast-growing African market.”

Wilson Chan, Senior Vice President – Freezone Cargo & Logistics of Abu Dhabi Airports, commented: “This inaugural flight, and the commencement of weekly flights to Nairobi, is further evidence of the important commercial and business ties Abu Dhabi Airports, and our partners Etihad Airways and Astral Aviation, are helping to facilitate.”

Sanjeev Gadhia, CEO of Astral Aviation, stated: “The partnership between Etihad Cargo and Astral Aviation marks a significant milestone in trade between Africa and Abu Dhabi, as the new flight will enable the efficient transportation of perishables including flowers, fresh fruits, vegetables, and meat from Astral’s hubs in Nairobi and Johannesburg into Etihad’s Abu Dhabi hub and onto their network. On the return, the freighter will carry cargo from Etihad Cargo’s network in Asia, the USA, and Europe into Astral’s Intra African network, which will result in new opportunities for our respective clients.”

Pedal power perpetuates tree-planting

To the moon and back. Image: Gebrüder Weiss

Though the name “GWcycles” doesn’t quite roll off the tongue, the idea is a good one as it is for a good cause – and Gebrüder Weiss’ international cycling competition is meanwhile in its third season. Whilst last year, competitors were cycling around the world, and managed 15 laps of the earth, the target this year, which participants have until 30SEP24 to reach, is to cycle to the moon and back. In other words: a full 768,800 kilometers. The competition opened on 25MAR24, and the company has pledged to plant a further 7,000 trees in Nicaragua if the kilometers are achieved. They will add to the 13,000 trees Gebrüder Weiss had planted in the past two competitions, in Togo and, again, Nicaragua. Referred to as “corporate forests”, Gebrüder Weiss is thus contributing to environmental protection. So, the climate benefits on the one hand. The best 300 cyclists benefit, too, since they are competing for a gravel bike (which is basically a kind of racing bike that can compete off-road, too), and “other attractive prizes for seven different challenges,” the press release promises. The competition is open to everyone (details are on Gebrüder Weiss’ website), and participants log their completed kilometers in a cycling app.

Frank Haas, Head of Corporate Brand Strategy & Communications at Gebrüder Weiss, detailed: “At Gebrüder Weiss, we believe in sustainable mobility, and as a global logistics company, we are enthusiastic about moving things together. So far, our cycling community has accomplished spectacular results each year; they enjoy exercising and actively contributing to environmental protection. We are looking forward to this year’s competition.”