Transport, Rolling Stock Management Companies Set Up

The government is creating a fully state-owned national transport organizer and a rolling stock management company to improve the competitiveness and efficiency of public transportation, a decree published in the latest issue of the official gazette Magyar Közlöny shows.

As MTI reports, the aim of the decision is to implement the transport development projects in the Recovery and Resilience Plan of Hungary, including the complete renewal of the vehicle fleet of the rapid suburban railway (HÉV) lines H5, H6 and H7 and the partial renewal of the domestic InterCity fleet, as well as reaching the milestone achievements related to the use of EU funds.

The transport management company will be established with an equity of HUF 55 million, and an additional HUF 445 million will be provided for its operation this year.

The rolling stock company will be set up with an equity of HUF 250 million and will be under the oversight of the transportation and investment minister. With the decree the cabinet also decided on a one-off transfer of HUF 640 billion from Hungary’s RRF loans for a capital increase of the company.

The decree also stipulates that competition will be gradually introduced in public passenger rail services in line with EU rules. Setting timetables and fares will remain a state responsibility, but competition between railway companies may be opened up in the field of cost-effective operation.

The transportation and investment minister has until a November to prepared a proposal on further measures necessary for the gradual introduction of competition, while the operating and financing model of the rolling stock management company must be worked out by the end of August.