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The government is launching a railway project connecting Budapest Liszt Ferenc International Airport with the capital, and will also build a new cargo airport, announced Minister for National Economy Márton Nagy. The two projects will be implemented with the involvement of private investors under a concession agreement, with calls for tenders to be issued later this year.
Last week, the government made two important decisions regarding Budapest Airport: one concerning the railway connecting the capital with Liszt Ferenc Airport, and the other concerning plans to build a new cargo airport, Világgazdaság reported on the announcement by the Minister for National Economy. At its meeting last week, the government examined the airport’s traffic and found that passenger traffic to the country was higher than expected, justifying the airport’s development.
The government has also allocated funds for the development of the expressway leading to the airport, but work will also begin on the fixed track, said Márton Nagy, adding that the total value of the railway investment is EUR 1 billion.
The plan is to build a new line between Kőbánya and the airport, connecting the airport to the national railway infrastructure.
He emphasized that rail is clearly greener, faster, and more predictable, and the development will also increase the airport’s catchment area.
They are considering a concession, and are expecting investors from both Hungary and abroad. The politician said that this is only the beginning of a process, a “task-oriented” government decision, but that specific steps will be announced later.
Budapest Ferenc Liszt International Airport. Photo: Facebook/Budapest Airport
He mentioned that Budapest’s role in terms of cargo has increased, and the airport could become the e-commerce hub of the entire region. Essentially, more than 80 percent of air freight traffic comes from Asia and the United States, with Europe accounting for only 14 percent. Minister Nagy noted that China currently dominates air freight traffic in Hungary, mainly due to the e-commerce traffic of Chinese webshops such as Temu.
He indicated that
the new cargo airport is necessary because Budapest Airport is slowly reaching its upper limit of 400-450,000 tons of annual traffic, and with the increase in passenger traffic, there is no longer any free time slots available for air cargo traffic.
The government is considering five to six possible locations, and the investment could be implemented at an existing site or as a greenfield project. The condition is that the airport must operate non-stop and therefore must be located away from residential areas. Another important factor in selecting the location is connectivity, proximity to rail and road infrastructure, he added.
Minister for National Economy Márton Nagy. Photo: MTI/Purger Tamás
Since 84 percent of cargo traffic comes from Asia and the United States, and 43 percent of that comes from China, investors from Eastern countries are expected to participate in the concession tender.
The government is expecting investors from China, the Middle East, Kazakhstan, or Azerbaijan, who will not only build but also operate the facility.
In response to a question, the Minister said that the HUF 100 billion (EUR 248 million) dividend taken out of Budapest Airport will improve the budget balance. The government expects stable dividend income of around HUF 20-30 billion (EUR 50-74 million) from the airport’s operating profits in the coming years.
Via Világgazdaság, MTI, Featured image: MTI/Koszticsák Szilárd