“Environmentally friendly solutions, and the increased ratio of rail within both public transport and freight transport, are a priority interest”, Minister for Innovation and Technology László Palkovics said in Budpaest on Wednesday after concluding a strategic cooperation agreement with the Hungarian subsidiaries of Rail Cargo Group (RCG).

The goal of the cooperation agreement is to increase the quality and efficiency of rail transport services in the interests of achieving common transport policy targets.

“The Government has spent 1500 billion forints (EUR 4.55 bn) to date on the modernisation of railway lines and stations, and in October the Cabinet is expected to discuss the upcoming years’ development plans. In addition, the Cabinet will also be discussing the concrete plans for the construction of the Budapest-Belgrade railway line, on which we plan to spend some 580 billion forints (EUR 1.76 bn)”, Mr. Palkovics highlighted.

The Minister pointed out that in addition to environmental criteria, increasing the competitiveness of railways greatly reduces the pressure on public roads, in addition to improving transport safety.

Rail Cargo Group is one of Europe’s largest rail freight transport companies, shipping 33 million tons of goods all over the country. A member of the group, Rail Cargo Hungary (RCH) is the market leader in Hungarian rail freight transport with a 55 percent share, Mr. Palkovics told reporters.

With its fleet of some 8000 freight wagons, RCH provides services to its clients throughout Europe. The company it the largest rail freight client of MÁV and GYSEV, and accordingly contributes to maintaining over 5000 jobs at Hungary’s state railway companies. In addition, RCH provides some 90 percent of traffic in the Záhony transhipment zone, the Minister continued.

In reply to a question from the press, Mr. Palkovics said that in October the Cabinet will also be discussing how to increase development in an easterly direction and exploit the opportunities afforded by the Záhony transhipment zone to an even greater extent.

The signed agreement also includes the fact that, in the interests of the proliferation of environmentally friendly freight transport, RCG will also be modernising its services with relation to combined transport.

Following the signing of the agreement, CEO of Austrian State Railways (ÖBB) Andreas Matthä emphasised: “The cooperation serves the development of both the Hungarian and Austrian economies; the railway companies of Austria and Hungary both play an important role in the rail freight transport of all of Europe”.

(MTI)