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Broekman Logistics Broekman Logistics Hungary compared as logistics hub Hungary compared as logistics hub for (Central) Europe for (Central) Europe

Broekman Logistics Hungary compared as logistics hub for (Central) Europe

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Page 1: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Broekman LogisticsBroekman Logistics

Hungary compared as logistics hub for Hungary compared as logistics hub for (Central) Europe (Central) Europe

Page 2: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Hungary compared as logistics hub for (Central) Hungary compared as logistics hub for (Central) EuropeEurope

• Introduction Broekman Group

• Benelux as logistics hub

• Hungary as logistics hub

• Role for Hungary as hub for Turkish industry .

• Solutions Broekman Logistics

Page 3: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Broekman Beheer B.V.Broekman Beheer B.V.(holding company)(holding company)

Gevelco LogisticGevelco LogisticServices B.V.Services B.V.(50% participation)(50% participation)- Gevelco Project ServicesGevelco Project Services- Gevelco DistriPortGevelco DistriPort- Gevelco Inland ShippingGevelco Inland Shipping

Born Car Center B.V.Born Car Center B.V.

Broekman Car Broekman Car Handling B.V.Handling B.V.

Broekman Broekman Motortransport B.V.Motortransport B.V.

Rotterdam Car Rotterdam Car Center B.V.Center B.V.

Rotterdam Car Rotterdam Car Terminal B.V.Terminal B.V.

Rotterdam Rotterdam Automotive ServicesAutomotive ServicesB.V.B.V.

Broekman MotorshipsBroekman MotorshipsAntwerpAntwerp

Broekman Motorships Broekman Motorships B.V.B.V.- Conti NederlandConti Nederland- Marfret NetherlandsMarfret Netherlands

F.A. Voigt &F.A. Voigt & Co. B.V.Co. B.V.

Tjonger Service B.V.Tjonger Service B.V.

Wereldvracht B.V.Wereldvracht B.V.

Yang Ming Yang Ming (Netherlands) B.V.(Netherlands) B.V.(30% participation)(30% participation)

NeptumarNeptumar B.V.B.V.(50% participation)(50% participation)

Comspeed B.V.Comspeed B.V.

Broekman Broekman Bedrijfsadmini- Bedrijfsadmini- straties B.V.straties B.V.

World Wide World Wide Passage Passage

AutomotiveAutomotive& Special & Special ProductsProductsDivisionDivision

ShippingShipping DivisionDivision

Corporate Corporate ServicesServices

Broekman RealBroekman RealEstate B.V.Estate B.V.

LogisticsLogistics DivisionDivision

China Shipping AgencyChina Shipping Agency(Belgium) Bvba(Belgium) Bvba (40% participation)(40% participation)

Proceed Logistics B.V.Proceed Logistics B.V.

Broekman Logistics N.V.Broekman Logistics N.V.- - RTW LogisticsRTW Logistics- Transforwarding BelgiumTransforwarding Belgium

Broekman Logistics B.V. Broekman Logistics B.V. -- Global Alliance Corp. Global Alliance Corp.- RTW Logistics RTW Logistics - Broekman TradingBroekman Trading

Transforwarding Czech s.r.o.Transforwarding Czech s.r.o.(85% participation)(85% participation)

Transforwarding Hungary Kft.Transforwarding Hungary Kft.(85% participation)(85% participation)

Broekman Air Logistics B.V.Broekman Air Logistics B.V.

www.broekman-group.nlwww.broekman-group.nl

Broekman Air Logistics Broekman Air Logistics N.V.N.V.

Triaf Forwarding B.V.Triaf Forwarding B.V.

Courcan Cargo (India) Pvt. Ltd.Courcan Cargo (India) Pvt. Ltd.

CSAV Agency Nether-CSAV Agency Nether-lands B.V. lands B.V. (25% thru Broekman D(25% thru Broekman Dööhle B.V.)hle B.V.)

Broekman Logistics (S) Pte. Ltd.Broekman Logistics (S) Pte. Ltd.

Page 4: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Rotterdam (NL)

Moerdijk (NL)

Antwerp (B)

Tienen (B)

Prague (CZ)

Budapest (HU)

European Offices

Amsterdam (NL)

Brussels (B)

Asian Offices

Mumbai

New Dehli

Ahmedabad

Bangalore

Pune

Baroda

Goa

Cochin

Chennai

Tirupur

Coimbatore

Singapore

Page 5: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Scope of Broekman Group ServicesScope of Broekman Group Services

• Shipping, Logistics and Automotive services world wide

• Automotive processing and logistics under one roof

• Supply Chain Management

• Tailor made logistics concepts

• Specialization & focus market segments

Page 6: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

One stop Logistics ProviderOne stop Logistics Provider

• Network of own offices in the Benelux, Central Europe, India, and Asia

• Expertise available to assist improving customers’ Supply Chain

• Focus on growing markets like China, India and Central Europe

• More than 20 years of experience in the full range of forwarding services

• NVOCC partners/alliances

Page 7: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Scope of Logistics ServicesScope of Logistics Services• General Air & Ocean Freight

• Ro / Ro Forwarding & Project Shipments

• NVOCC-services (both FCL & LCL)

• Customs Clearance and documentation

• Road-& Intermodal Transport and distribution services (LTL & FLT)

• Warehousing & Value Added Services

Page 8: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Airfreight,Airfreight,Carriers &Carriers &ForwardersForwarders

Ocean freight,Ocean freight,Carriers &Carriers &ForwardersForwarders

IndustrialIndustrialServiceServiceProvidersProviders

Intermodal transportIntermodal transport3 PL and 4 PL 3 PL and 4 PL

Information Information TechnologyTechnology

Manufacturing Manufacturing companiescompanies

Broekman Broekman GroupGroup

Short Sea &Short Sea &Inland ShippingInland Shipping

ConsultantsConsultantsRail TransportRail Transport

Road TransportRoad Transport

InternationalLogisticsService

Providers

Logistics service providers with different Logistics service providers with different background and focusbackground and focus

Page 9: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

railrailbargebarge

roadroad

Logistics network in the NetherlandsLogistics network in the Netherlands

Rotterdam Port Rotterdam Port & Airport& Airport

Amsterdam Amsterdam

Port & AirportPort & Airport

MoerdijkMoerdijk

VenloVenlo

Page 10: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Source: Port of Rotterdam

Netherlands marketleader total throughput European seaports in Netherlands marketleader total throughput European seaports in

Hamburg - Le Havre range (2005)Hamburg - Le Havre range (2005)

Total throughput: 970 million tons

Gross weight x 1 million metric tons

Hamburg 13%

Bremen 6%

Amsterdam

8%

Rotterdam38%

Antwerp 16%

Ghent 2%

Zeebrugge 4%Dunkirk 5%

Le Havre 8%

Page 11: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

326

328

369

637

700

742

1306

1450

1767

1864

0 500 1000 1500 2000

Liege

Madrid

Milan Malpensa

Cologne

Brussels

Luxembourg

London(LHR)

Amsterdam

Paris(CDG)

Frankfurt

Market share Amsterdam Airport Schiphol: 15.3%

Source: Amsterdam Airport Schiphol

Amsterdam third largestAmsterdam third largestEuropean cargo airport (2005)European cargo airport (2005)

(x 1,000 tons)

Page 12: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Why the Netherlands?Why the Netherlands?

• Central locationCentral location

• Excellent distribution infrastructureExcellent distribution infrastructure

• International orientationInternational orientation

• Multilingual capabilitiesMultilingual capabilities

• Support of the governmentSupport of the government

• Taxation advantagesTaxation advantages

Page 13: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

CologneFrankfurt

Hamburg

Karlsruhe

Le Havre

Paris

Tongeren

27.027.0

28.028.0

29.029.0

30.030.0

31.031.0

32.032.0

33.033.0

34.034.0

3.003.00 3.203.20 3.403.40 3.603.60 3.803.80 4.004.00 4.204.20 4.404.40

Weighted quality scores

To

tal s

up

ply

ch

ain

co

st p

er y

ear

(m €

)T

ota

l su

pp

ly c

hai

n c

ost

per

yea

r (m

€)

Results Benchmark study: Results Benchmark study: Dutch locations score very high!Dutch locations score very high!

Lowest CostLowest Cost

Highest Quality

Highest Quality

Top locations

Top locations

Case: High Tech Company Source: Logistics Benchmark, Buck Consultants, Ernst & Young, 2005

Amsterdam

AntwerpBrussels

Liege

Lille

Maastricht

Metz

Rotterdam

Venlo

Page 14: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Economic centres(Infrared-Satellite shot)

1,300 km (800 miles)350 million Consumers

950 km (600 miles)220 million Consumers

500 km (300 miles)160 million Consumers

Economic BananaEconomic Banana

Latin ArchLatin Arch

Page 15: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Netherlands & Benelux as logistics hub – Netherlands & Benelux as logistics hub – European Distribution Centers European Distribution Centers

• Previous part based on HIDC – Dutch promotion

• Advantages – main port – multimodal –hinterland connections – large market – tax & customs benefits – multilingual

• Attractive for many US, Japanese, Korean, Chinese manufacturers.

• Our experience in a.o. automotive, retail (garden-centers) , cosmetics, household for Japanese and American customers.

Page 16: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Hungary as logistics Hub – European or Regional Hungary as logistics Hub – European or Regional Distribution CentersDistribution Centers• Geographical location CEE

• TEN 4,5,7,10 on crossroads of NS-EW

• 13 Logistics Centers & more Industrial Zones

• Rail connections

• Water connections – Danube to Black Sea or connections to North Europe .

• Container hub via Rotterdam,Hamburg,Trieste,Koper

Page 17: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Hungary as logistics Hub – European or Regional Hungary as logistics Hub – European or Regional Distribution CentersDistribution Centers

• We have all seen many presentations with a strategy to develop role as hub for CEE

• I will not show you all the maps

• A lot of focus on the hardware & infrastructure

• Important for growing internal market and attraction of international retail chains en multinational manufacturers of consumer goods

• What about the external markets

Page 18: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Hungary as logistics Hub – European or Regional Hungary as logistics Hub – European or Regional Distribution CentersDistribution Centers

• Will the banana change ?

• Poland,Czech, Hungary main markets

• Bulgary, Romania just joined EU

• Balkan ,Baltic and Ukraine potential

• Import from growing markets China, India, Turkey

• Size of the volumes and consumption big enough for European and/or Regional Distribution Centers ?

Page 19: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Hungary as logistics Hub – European or Regional Hungary as logistics Hub – European or Regional Distribution CentersDistribution Centers• Warehousing facilities good

• Infrastructure improving

• So hardware for hub seems ok

• What about “soft” factors :– language , call centers– tax & financial services– education ; R&D – distribution networks – from overnight to 4 and

8 hr concepts– attempts to copy Benelux model in automotive

Page 20: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Hungary as logistics Hub – connection Turkey Hungary as logistics Hub – connection Turkey with Central, East and West Europe with Central, East and West Europe

• Outsourcing : Hungary versus Asia ; pros and cons in labour cost, quality control and lead times

• Turkey growing as manufacturing country ( ao automotive, textile, households electronics)

• What is the focus Turkey for import and export on Hungary / CEE

• Volume and service advantages in container trades .

Page 21: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Hungary as logistics Hub – connection Turkey Hungary as logistics Hub – connection Turkey with Central, East and West Europe with Central, East and West Europe

• Role for Hungary will depend on capabilities but also size of the trade

• This in general for (Central) Europe and Turkey

• Shipments from West Europe to/from Turkey either via road or sea ( rail shuttle failed)

• Turkey – Central Europe via road

Page 22: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

MAJOR COMMODITIES OF TURKISH IMPORTS (2005)MAJOR COMMODITIES OF TURKISH IMPORTS (2005)

COMMODITIES USD (000) %

MINERAL OILS & PRODUCTS 21.226.154 18

MACHINERIES AND SPARE PARTS 16.345.423 14

VEHICLES, TRACTORS, MOTORCYCLES 10.542.424 9

ELECTRICAL MACHINES AND APPLIANCES 9.634.288 8

IRON & STEEL 9.388.698 8

PLASTIC MATERIALS 5.767.547 4

JEWELERY 4.225.394 3

CHEMICALS 3.520.110 3

PHARMACY PRODUCTS 2.845.676 2

MEDICAL, OPTICAL EQUIPMENTS 2.457.063 2

TOTAL AMOUNT OF FIRST 10 COMMODITIES 85.952.776

TOTAL AMOUNT OF IMPORTS 116.351.727

RATIO OF FIRST 10 IN TOTAL IMPORTS (%) 73,9

Page 23: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Turkish Zone

Latin Arch

Economic BananaEconomic Banana

Page 24: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

MAJOR COMMODITIES MAJOR COMMODITIES OFOF TURKISH EXPORTS (2005) TURKISH EXPORTS (2005)

COMMODITIESUSD (000) %

VEHICLES, TRACTORS, MOTORCYCLES 9.530.546 13

KNITTING WEARINGS 6.588.132 8

ELECTRICAL MACHINES AND APPLIANCES 5.416.691 7

MACHINERIES AND SPARE PARTS 5.233.767 7

IRON & STEEL 4.958.626 6

GARMENTS AND ACCESSORIES 4.858.636 6

GOODS MADE BY IRON &STEEL 2.722.031 3

MINERAL OILS & PRODUCTS 2.614.264 3

FRESH FRUITS 2.494.852 3

TEXTILE GOODS 1.968.178 2

TOTAL AMOUNT OF FIRST 10 COMMODITIES 46.385.723

TOTAL AMOUNT OF EXPORTS 73.275.276

RATIO OF FIRST 10 IN TOTAL EXPORTS (%) 63,3

Page 25: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Trade partners TurkeyShare in Share in ExportExport

Share in Share in ImportImport

GermanyGermany 14,2 %14,2 % 12,9 %12,9 %

UKUK 8,7 %8,7 % 4,5 %4,5 %

USAUSA 8,1 %8,1 % 5,1 %5,1 %

ItalyItaly 7,1 %7,1 % 7,1 %7,1 %

FranceFrance 6,0 %6,0 % 6,7 %6,7 %

SpainSpain 4,1 %4,1 % 3,4 %3,4 %

The NetherlandsThe Netherlands 3,3 %3,3 % 2,0 %2,0 %

Page 26: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Hungary as logistics Hub – connection Turkey Hungary as logistics Hub – connection Turkey with Central, East and West Europe with Central, East and West Europe

• Increasing volumes and direct service Asia – Black Sea

• Step up for connection Turkey – Black Sea threat for Hungary as hub

• Opportunities for Hungary ?? : road Turkey-Hungary and EDC hub for CEE but also Germany, Italy

• New studies on Asia – Central Europe, Germany rail connections south of TSR

Page 27: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Hungary as logistics Hub – connection Turkey Hungary as logistics Hub – connection Turkey with Central, East and West Europe with Central, East and West Europe

• Theory or real chances depending on size of market and soft factors.

• There will differences by commodity and value making comparison between direct truck FTL or LTL or inventory and overnight & 8 hour distribution .

• Agility and transparency are buzz words in supply chain management

• Size and maturity of the consumer market and manufacturers will affect ability to develop Hungary as hub for CEE

• Short term RDC ; longer term EDC chances.• Chances to work for Turkish manufacturers not

clear ( to me)

Page 28: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Broekman Logistics network in HungaryBroekman Logistics network in Hungary

Torokbalint

FE / India

Rotterdam Port Hamburg Port

rail/road

FE / India Trieste Port

rail

Koper Portrail/road

FE/India

HUB

Serbia/Croatia

Romania

Ukrain

Slovakia

Page 29: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Broekman has strong partners in TurkeyBroekman has strong partners in Turkey

Page 30: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Rotterdam

Esztergom

Distribution concept Suzuki and Subaru Distribution concept Suzuki and Subaru ex Hungary to Benelux, France and Germany ex Hungary to Benelux, France and Germany via Rotterdamvia Rotterdam

Bnlx

F

D

Page 31: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

Hungary – our experience Hungary – our experience

• Broekman Group active in Hungary since 1995

• Central location in CEE - great potential

• Outsourcing not just to China and India

• Logistical advantages for tighter production planning and exchange Central and Western European locations

• Good results in connecting our overseas network partners and office to our Hungary office

• Hungary as hub for Eastern Europe and Balkan no longer just a concept . Practical examples.

Page 32: Broekman Logistics Hungary compared as logistics hub for (Central) Europe

SummarySummary

• We hope you found this presentation useful• Very pragmatic, no scientific or accurate assessment• Comparison between mature ,developing and

emerging markets• World trade will accelerate further

– Good opportunities for Hungary and also Turkey• We hope you liked the practical solutions and

approach of Broekman Logistics

• Feel free to contact [email protected]

• THANK YOU FOR YOUR ATTENTION