MBH Bank: It is already clear how logistics performance can be doubled

By: Trademagazin Date: 2024. 11. 28. 10:51

Logistics is the lifeblood of the commodity economy, which, due to the logic of its operation, often provides a very accurate picture of the international position, role and economic integration of a country or region. Although the inflation waves of recent years, the restrictions caused by the war or the decline of European industry have left their mark on the performance of domestic logistics, at the same time, developments targeting rail freight transport or the sharp increase in the freight turnover of the airport recently acquired by domestic ownership may already be harbingers of a future turning point – it was revealed at the latest press conference of MBH Bank’s Sector Outlook event series, at which the situation of the sector was assessed by experts from the bank and Euroleasing.

The performance of the logistics sector, primarily freight transport and warehousing, is largely related to the state of the economy and its international trade integration. In the third quarter of this year, foreign-related road freight traffic – which was even less affected by the inflation crisis – decreased by 18.4 percent compared to the 2022 peak, while rail traffic decreased by 17.1 percent. The decline in international freight transport is significantly related to the weak international economic environment and the decline in foreign industrial orders. At the same time, domestic logistics, partly due to Hungary’s geographical location, still represents a relatively large share of the gross national product.

“Today, the weight of logistics in terms of gross value added is 5.3 percent, while for example in the automotive industry the same indicator – including suppliers – is around 6 percent. The economic administration plans to almost double this already low value, to 10 percent, by 2030, for which purpose numerous steps have been taken recently, from the launch of various railway development investments to targeted support for logistics parks to initiatives aimed at addressing the shortage of road drivers,”

said Melinda Szabó, head of sector analysis at MBH Bank, regarding the future vision of the sector.