Hungarian rail freight and intermodal transport went through vastly different developments in 2024. Whereas rail freight struggled financially, intermodal saw explosive growth.
The rail freight industry in Hungary saw its costs grow much faster than revenues in the last quarter of 2024, according to data from rail association Hungrail. Expenses increased by 10.3%, while revenues grew by only 2.2%. As a consequence, the industry’s profitability took a hit.
The Hungarian Logistics Service Providers Association (MLSZKSZ) says that the primary reasons for the financial downturn include higher operating costs, wagon inspection costs, track access charges and exchange rate changes for international traffic. Moreover, competition with the road sector forced rail prices down, and track closures made rail freight more difficult during the year.
Intermodal success
The financial underperformance in the rail freight industry is starkly contrasted by developments in the intermodal sector. “Traffic arriving and departing at Hungarian intermodal terminals increased by 122% compared to 2023 (853 thousand TEU), an outstanding performance amid stagnation in Europe”, MLSZKSZ writes. “This growth allowed Hungary to act as a collection-distribution hub for the first time in the European intermodal transport network.”
Intermodal traffic recorded improvements along a number of indicators. For example, the number of loaded containers grew by 33.8%, and semi-trailer rail traffic increased by 21.3%. Moreover, there was a decline in empty containers of 3.4%, which “indicates the strengthening of domestic exports and the revival of international traffic to neighboring countries”, says MLSZKSZ.
What’s behind the growth?
A number of key factors have driven the success of Hungarian intermodal traffic. MLSZKSZ mentions deliveries related to factory constructions, new connections to Serbia and Romania, a modal shift induced by the Energy Efficiency Obligation Scheme and the opening of new rural terminals as contributing factors.
Despite the divergence in performance between rail freight and intermodal, both suffered from infrastructure disruptions. Those include key projects like the Budapest – Belgrade line and upgrades around Budapest.
“The biggest task facing Hungarian rail and intermodal transport is restoring competitiveness and addressing infrastructure challenges. MLSZKSZ recommends improving the coordination of railway track construction works, minimizing track closures and using temporary structures during renovations”, commented MLSZKSZ President Zsolt Károly Fülöp.