Belgrade–Budapest railway constrution in huge trouble? Xi Jinping rejected Orbán
The Chinese say no to Orbán’s big rescue plan for the Budapest–Belgrade railway line. There are quite a few complications with the construction of the railroad, and Orbán wants to take on Western contractors for the job. Xi Jinping does not.
The Budapest–Belgrade railway project started in 2014. That was when the government decided that enough is enough seeing the sorry state of said railway track. A year later, they came to an agreement regarding the reconstruction with the Chinese and Serbian leaders. However, the actual construction contract was only signed in 2019. The contract gave the project to a consortium of Chinese and Hungarian companies. According to Telex, the construction had a 750 billion Ft budget, which at the time was thought to be excessive, but actually turned out to be cutting it close to the bare minimum.
The 2019 construction agreement stated that the easier part in the division of labour, such as the laying of the tracks, would fall on the Hungarians. The more complex part of the work would be left to the Chinese. This involves the construction of complex safety and train control systems, which prove to be quite tricky. Especially in this case.
The European standard
The goal of the European Train Control System (ETCS) is mainly to avoid accidents and derailment and the like. For this reason, it has its own strict standards. The explanation for its complexity is the differing railway tracks and stations of each European country and region. Due to these, the ETCS requires every Member State to adhere to its standards. This way, every station has got to have its own circuits uniquely designed, approved and manufactured.
This the Chinese are not able to do. They do not have this kind of regulation system, because their railways are uniform in their region. For this simple reason, they don’t have the technology necessary to adhere properly to the European standards. It only complicates things that Hungary’s level crossing is connected to the safety- and train control system.
To conclude, they not only lack the expertise required for the safety systems, but level crossing is also foreign to them.
Read more about the topic HERE.
A multinational mistake
Now the construction has got to the stage where it’s time for these technologies to be implemented. However the Chinese can’t deliver, which obviously interferes greatly with the project of the Budapest–Belgrade railway. That’s why Orbán would like to go back on his word now, to try and salvage the future of the Budapest–Belgrade railway, by replacing the Chinese company with a European one.
Prime Minister Viktor Orbán went to China partly to consult with Xi Jingpin about the modification of the contract.
However, in the end, it seems like Xi Jingpin didn’t approve of his plan.
Read more about Viktor Orbán’s visit to China HERE.
The big question now stands: Will the line ever be finished?
Right now, there are two main concerns about the impending completion of the project. The main is the European regulation. Since Xi Jinping probably won’t change his mind for Orbán, no matter how nicely he asks, and the Chinese can’t manufacture at a level accepted by the regulations, this is a huge uncertainty.
The other concern is the renovation of the Győr railway line. It is done by the same company as the Budapest–Belgrad line and it’s impossible to generate enough resources for both of them. That’s why part of the specialists had to leave to work on the Győr railway, leaving the Budapest–Belgrade railway understaffed.
With these concerns we honestly can’t be sure if the Budapest–Belgrad line will ever finish.
Read more about Hungarian railways HERE.
China contractual arrangements – Trading agreements, that History, that never Lies, when the Chinese want an out or out, the word contractual adherence obligation means NOTHING.
Orban has continues to place Hungary in this EXPOSED position that is fraught with gargantuan DANGERS.
Orban has SPENT billions of forints supposedly already invested into this “lame duck” project, that will be a cataclysmic financial disaster AGAIN made by the Orban Government, that tax payers will BURDEN – hit our pockets.
Appalling.
Was mich bei meinen ersten Erfahrungen in Ungarn 2015 erschreckt hat, war die Vorstellung in den Köpfen vieler Menschen, dass der Staat der Initiator, Haupttreiber, Investor und auch Marktteilnehmer bei privaten wirtschaftlichen Aktivitäten sein sollte. Also der Staat selber sollte ein sehr wesentlicher Teil der privatwirtschaftlichen Wirtschaft sein. Meine langjährigen eigenen Erfahrungen in staatlichen Institutionen in Deutschland haben mir gezeigt, dass es nirgendwo schlechtere Investoren und Unternehmer als beim Staat gibt. Nur bei einer Sache hatten sie immer einen Spitzenplatz inne, bei der sinnlosen Vergeudung knapper Ressourcen. Die Vorstellung, dass der Staat durch Rahmenbedingungen nur die Richtung vorgibt und damit nur einen institutionellen Rahmen setzt, den die Privatwirtschaft ausfüllen muss, scheint vielen Ungarn völlig fremd zu sein. Das hat sicher auch etwas mit der kommunistischen Vergangenheit Ungarns zu tun, aber nicht nur, da vergleichbare Staaten sich anders entwickelt haben. Sonst hätte beispielsweise Rumänien Ungarn nicht beim BIP überholen können. Das ist sicher nicht der Hauptgrund dafür, aber in meinen Augen auch ein wesentlicher.
Wasn´t Mr. Orbán going to China to salvage this? The tender was apparently a mess (although Mr. Mészáros was signed up as part of the consortium – immediate success all but assured), the underlying financing a state secret through 2030 – so who is responsible? Couldn´t possibly be our Politicians.