Budapest Airport inks e-commerce agreement with STO Express, EKOL

The Hungarian airport will work with China-based air carrier STO Express to boost e-commerce links between Asia and Europe.    Budapest Airport has inked an agreement with China-based air carrier STO Express and European third-party logistics provider EKOL to establish a cargo transportation network to deliver e-commerce products arriving from China to European customers.
   The agreement was signed during the annual conference of the “16+1 cooperation” initiative, comprising China and 16 countries from the Central and Eastern European (CEE) region. At the conference, STO Express announced that it is developing its relations with the Central and Eastern Europe (CEE) region, and as a result, has designated Budapest Airport as its preferred hub for air cargo transportation.
   Under the agreement, STO Express will operate scheduled cargo flights to Budapest Airport.
   “On behalf of Budapest Airport, we warmly welcome this initiative by STO Express. Export-import between China and Hungary, and the entire CEE region, plays an important role in our rapidly developing market,” said Rene Droese, director of property and cargo at Budapest Airport.
   “We believe that Budapest and Budapest Airport provide the best place for distribution by STO Express in the CEE region, and we will do our best to prove this in the near future. Our new air cargo base, Cargo City, will commence operations in the summer of 2019,” said Droese.
   Cargo traffic at Budapest Airport has increased by 36 percent since December 2015. From January to October 2017, Budapest Airport handled a record of 103,800 metric tons of air cargo, up 14.5 percent on the same period last year.
   “It is noteworthy that, based on market data, e-commerce accounted for four to five percent of retail sales in Hungary this year, with 20 percent growth in this segment from January to June, compared to the same period last year,” said Droese. “In terms of specific figures, this means online transactions of approximately $600 million during the first half of 2017. E-commerce is thus clearly one of the areas with the greatest potential in the market, including air cargo.”