Budapest Airport extends ecommerce cooperation with STO Express and EKOL
November 30, 2017: In a move to fortify the Asia-Europe e-commerce trade lane, Budapest Airport has recently inked a cooperation pact with the Chinese courier company STO Express and EKOL—a Hungary-based third party logistics provider (3PL).
According to reports, the agreement signed by the Budapest Airport with STO and EKOL during the annual conference of the “16+1 cooperation” initiative is expected to bolster the network of air cargo transportation, and facilitate transportation of e-commerce products arriving from China to the European customers.
China and 16 other countries across the Central and Eastern European (CEE) region participated in the conference held in Budapest.
Reports also suggest that in order to set a robust cargo transportation network, STO Express is likely to schedule B747 freighter flights to the Hungarian Airport, which according to the company is their preferred European air cargo hub.
In an attempt to further generate a significant boost in the overall cargo traffic of Chinese e-commerce goods, STO Express plans to operate scheduled cargo flights to the Budapest Airport.
It’s interesting to note that STO Express is toeing Chinese government’s line to develop relations with the Central and Eastern Europe.
Statistics show that cargo traffic at the Budapest Airport has surged by 36 percent since December 2015. Similarly, between January and October 2017, the Budapest Airport has handled 103,800 tonnes of air cargo, which is up 14.5 per cent during the same period last year. Its current market share in exports stand at 52 percent, and imports at 48 percent.
Rene Droese, Director Property and Cargo, of Budapest Airport said: “We welcome initiatives taken by STO Express as trade between China, Hungary and the entire CEE region will play a pivotal role in our rapidly developing market.”
“The Budapest Airport is the best hub for STO Express to transport Chinese e-commerce goods in the CEE region, and we will do whatever it takes to prove it in the near future. The Cargo City, which is our new air cargo base is expected to commence operations by the mid of 2019,” said Droese.
Meanwhile, based on the market data, the overall e-commerce accounted for four to five percent of the entire retail sales in Hungary worth approximately $600 million, thereby registering a 20 percent growth between January and June this year, compared to the same period last year.