1. Hungary and CEE Region: Possibilities ?? Expansion options !! ITD Hungary Logistics Road show Rotterdam, 19.11.2008. Ernő Pető

2. 2 Agenda  Market development- position of Port of Rotterdam  Transport connections - relations  Current and future business development initiatives  Conclusions  Q/A

3. 3 ”Good hinterland connections play a major role.”

4. 4 SWOT analysis Hungary  Strengths  geographical and economic geographical conditions  regional distribution terminal (HUB)  density of railway and road networks  high railway transport ratio  Weaknesses  Transport network is radially structured.  Danube as infrastructure and the port network is not sufficient  low level mobility of workforce  intermodality and interoperability are incomplete, cooperation is poor between the sub-sectors  Opportunities  the country and the capital may become a key strategic geographical location  increase of the east-west trade turnover and between the EU and Asia – regional HUB  river may substantially increase in connection with the EU enlargement  emerging regionalism and the growth poles  Threats  becoming a transit country: chance for only the negative impacts  railway transport continues to lose market share  insufficient development: neighbouring countries may become competition in transport/logistics  shortage of financing  sub sector cooperation will be not efficient

5. 5 Holland Ruhr+NRW Other Rotterdam 80% 40% 10% Bremerhaven Hamburg Antwerp Le Havre Images of the hinterland 3 zones

6. 6 Development of CEE hinterland

7. 7 Constanta 58-1,4 Koper 15-0,32 Trieste 38-0,22 European ports from CE region Rotterdam 406-11,8 HBG/BRV 140-9,9/65-4,5 Antwerp 182-8,2 Rijeka 13-0,15 million tons million TEU

8. 8 Results of railway liberalisation in CSEE region Dominant presence of private railways CTL Logististic with DB PKP loses market Merger of Czech and Slovak railways expected + privates Green light for RAILSELECT 2007: !th biggest cargo railway in Europe Preparing for privatisation, investment (80 M EUR) More dominancy in the region GLOBAL PLAYER!! State monopoly until 2015 German orientation, marginal impact of private railways Old sturcture will remain New structure, but private railways not started Integrated operation Outsorcing of assets, service remains state monopoly

9. 9 Rotterdam > destination Europe Intermodal - already 316 shuttle trains per week Source: Rail Cargo Information Netherlands

10. 10 WELS SOPRON KOPER ZÁHONY BUCURESTI ROTTERDAM ARAD KIEV MOSCOW BILK WIEN PRAHA MCC DUISBURG BREMERHAVEN HAMBURG not yet public HUNGARIA INTERMODAL HUPAC ERS ICF METRANS DEBRECEN D.STREDA Current situation and development of train connections to/from Hungary Current Planned BoXexpress TRIESTE Alpe-Adria M3 MUNICH HERNE

11. 11 ROTTERDAM AMSTERDAM ANTWERPEN 1820 KM BUDAPEST 1640 KM CONSTANTA RENI IZMAIL Inland Navigation – Location of Csepel Freeport

12. 12 Top issues  Sopron (GYSEV container terminal, shunting yard)  Budapest (BILK Kombiterminal, Mahart Container Center, M3 Container Terminal)  Záhony: dry port – 89 mm difference in gauge of railway tracks (1.436 – 1.525 mms)

13. 13 HELSINKI CORRIDORS and key points in Hungary 7 7 4 4 5 5 5 / a 5 / c 10 / a Budapest Sopron Záhony

14. 14 Hungary Switzerland Italy Austria Russia, Ukraine & other former CIS Romania Bulgaria Germany 400.000 1.000.000 50.000 700.000 300.000 350.000 1.200.000 Freight transportation Main direction flows (in tons) SOPRON Greece BENELUX 150.000 750.000 550.000 Turkey Serbia, Macedonia Croatia, Slovenia 10.000 100.000 France 10.000 Spain & Portugal 10.000 75.000 Bosnia- Herzegovina Slovakia 1.000 10.000 Czech Rep. Poland 10.000 20.000 Sweden Denmark 3.000 2.000 Moldavia

15. 15 GYSEV, Sopron

16. 16 BILK Kombiterminal, Budapest

17. 17

18. OUTSTANDING ADVANTAGES - STRATEGIC POSITION THE AREA PROVIDES EUROPEAN CONDITIONS IN THE PROXIMITY OF EMERGING MARKETS

19. 19 Business development initiatives, opportunities  Logistics  Hungary: regional physical distribution HUB  Záhony: dry port (Ukraine, Russia, Romania)  new logistic centres, new intermodal terminals

20. 20 Conclusions Importance of Hungary and SEE region for Rottterdam:  fast growing area  part of total European network (multinational companies)  Hungary:  regional logistic centre  gateway for East Europe and CIS countries

21. 21 Any questions ?

22. 22 For further information feel You free to contact: Ernő I. Pető Rotterdam Representative for Hungary and South-East Europe T: + 36 1 240 0479 F. + 36 1 240 2615 M: + 36 30 932 0099 BudapestDesk@portofrotterdam.com

23. 23 Thank you for your kind attention!