{"id":188228,"date":"2025-03-19T23:33:46","date_gmt":"2025-03-19T13:33:46","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=60829"},"modified":"2025-03-19T23:33:46","modified_gmt":"2025-03-19T13:33:46","slug":"railway-companies-in-hungary-are-struggling-for-survival","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=188228","title":{"rendered":"Railway companies in Hungary \u2018are struggling for survival\u2019"},"content":{"rendered":"

The state of Hungarian railways is outdated, hindering the country\u2019s chances of playing a key role for the supply chain of Eastern Europe. Data shows that rail freight in Hungary has been almost constantly decreasing since 2020. Industry association Hungrail presented a plan to the government to try and save companies that \u201care struggling for survival\u201d.<\/strong>
\n<\/span>Bad infrastructure does not only affect transit through Hungary, but also domestic transport since Hungarian manufacturers cannot reach export markets and it is harder to import products. \u201cThe increase of speed restriction signals, insufficient axle load and the lack of modern track capacity make rail freight transport unpredictable and costly, forcing businesses to rely on road transport\u201d, a spokesperson from Hungrail underlined.<\/p>\n

Such a statement finds validation in the data provided by the Hungarian Central Statistical Office. Between 2020 and 2024, rail freight in Hungary lost volumes across the board: total tonnes transported via rail in the country dropped when it comes to transit, import, export and domestic services. In total, between the start of 2020 and the end of 2024, the industry transported almost two million tonnes.<\/p>\n

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Rail freight performance (in thousand tonnes) between 2020 and 2024. Image: \u00a9 Hungrail\/Hungarian Central Statistics Office<\/figcaption><\/figure>\n

\u2018Costs are too high, subsidies are too low\u2019<\/h2>\n

\u201cLast year, a nearly 18 per cent price increase would have been necessary according to the Railway Freight Transport Cost Index calculations, but railway companies were unable to pass this on to customers\u201d. Some opportunities are there, including the launch of new industrial sites and the opening of the Belgrade-Budapest railway, scheduled for this year. Another chance to revive the Hungarian rail freight sector could come from an end to the war in Ukraine, but recent developments highlighted the uncertainty surrounding this conflict and its end.<\/p>\n

Subsidies \u201care no longer sufficient to halt the continuous decline of railway freight transport performance.\u201d According to Hungrail, the solutions would include \u201creducing track access charges, introducing state incentives, tax and fee exemptions, targeted grants and providing predictability through the regulatory environment\u201d. Another significant issue is the increasing costs associated with non-implemented or missed measures. \u201cIf the government does not intervene in the short term and does not increase state involvement, international freight routes will bypass the country\u201d, the spokesperson stressed.<\/p>\n