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Hungarian Post Plans to Expand Abroad in the Logistics Sector

Hungary Today 2023.12.05.

Hungarian Post (Magyar Posta) has plans to take over logistics services abroad, the CEO of the state-owned company told Index in an interview. Barnabás Balczó also emphasized the recent developments in the company.

He noted that the primary way to attract foreign activity is through their competitive logistics services. If only because they have recently developed their depot network of 17 units, which also means real estate development and mechanization. They have

  • modernized their fleet
  • bought electric vehicles
  • and expanded their network of 24-hour parcel vending machines.

Hungarian Post currently has 550 parcel vending machines, but plans to expand them significantly in the future.

The CEO explained the growth of logistics abroad by the importance of goods from third countries, China, and other Far Eastern countries. In this respect, Hungary is well-located and a central hub.

Asked in which area within logistics they can offer a good alternative to competitors, he stressed that

the company had made the decision to enter the fulfillment market back in 2022. In practice, this basically means robotic contract warehousing.

Fact

The global e-commerce fulfillment services market size was valued at USD 97.33 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 13.9% from 2023 to 2030. The proliferation of electronic commerce and the resulting rise in the number of online buyers, especially in emerging economies is anticipated to fuel market growth. Fulfillment service centers enable online merchants to outsource services including bundling, warehousing, shipping, and other value-added services, such as return management and urgent parcel service. A fulfillment center is ideal for merchants that do not have robust warehousing capabilities to manage inventory directly and do not want to invest additional efforts in shipping.

“For us, this is an opportunity because we can offer a complete package with home delivery and warehousing to customers who use a partner for this service. We think that this fulfillment service alone is a good way to expand abroad,” the CEO explained. He did not yet say exactly which country markets they will enter, but indicated that they are thinking mainly of the border countries and will enter as early as 2024. The Hungarian Post has been working on this issue since 2017. “Last year we decided that we had to move forward. The postal service completed the fulfillment developments in 10 months. This is a very big achievement,” concluded Balczó.

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Via Index, Featured image via Facebook/Magyar Posta


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