{"id":327851,"date":"2025-12-11T19:58:07","date_gmt":"2025-12-11T09:58:07","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=68004"},"modified":"2025-12-11T19:58:07","modified_gmt":"2025-12-11T09:58:07","slug":"a-double-assault-on-hungarian-rail-government-withdraws-funds-for-railways-and-swl","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=327851","title":{"rendered":"A double assault on Hungarian rail: government withdraws funds for railways and SWL"},"content":{"rendered":"

The Hungarian government is substantially reducing its support for the railways. Both in infrastructure and the single wagonload (SWL) segment, less money will be available. Companies are already changing their SWL offering for the coming year.<\/strong>
\n<\/span>Former Hungarian State Secretary for Transport D\u00e1vid Vit\u00e9zy wrote about the withdrawal of funds for the railways on Facebook. \u201cA total of 24 billion forints [some 62 million euros] of funds were withdrawn from [Hungarian Railways] M\u00c1V in 24 hours\u201d, he stated.<\/p>\n

The government is reallocating an unspent 18 billion forint (47.1 million euros), which were originally intended to be spent on rail, to road infrastructure investments instead. \u201cApparently the Hungarian railways are in such good condition that there was no point in spending it\u201d, said Vit\u00e9zy. The former state secretary lamented the fact that the rail budget was already meagre, but now 90% of that budget is even going to be spent on the road.<\/p>\n

Then there is news regarding spending on single wagonload operations. A subsidy amounting to 6.7 billion forint (17.5 million euros) is subject to cancellation. That money supported the modal shift by making the railways more competitive. In turn, points out Vit\u00e9zy, the scheme also supported the M\u00c1V budget by generating more track access charge income. The subsidy scheme was renewed in September<\/a> this year, to the delight of the Hungarian rail sector. As it turns out, the sector celebrated too early.<\/p>\n

Rail Cargo Hungaria plans business reductions<\/h2>\n

As a consequence of the Hungarian policy turnaround, the \u00d6BB Rail Cargo Group subsidiary Rail Cargo Hungaria has already amended its approach to SWL operations in the country. The company\u2019s CFO Csaba Raisz told publication Vil\u00e1ggazdas\u00e1g of some of the changes the operator is implementing.<\/p>\n

First off, RCH will no longer accept unprofitable contracts. That will mean cuts to its three million tonne SWL business and translates into a subsequent 10% cut in the company\u2019s network. Customers will be able to load and unload goods in fewer places. “When we cut back the network, unprofitable transports are eliminated, but previously profitable ones can also become unprofitable\u201d, Raisz explained.<\/p>\n

Moreover, RCH plans to increase prices to offset the loss of subsidies and reduce its workforce. Some 500 people (out of 1,700) are expected to lose their jobs next year. RCH also plans to shrink its locomotive fleet, retire more wagons and reduce shunting capacity by 10%.<\/p>\n

RCH is most probably not the only company that will change its approach to the SWL business in Hungary. Eleven other operators have benefited from the subsidies in the past year.<\/p>\n