Hungary has reached an agreement with Egypt to complete the delivery of 44 outstanding railway carriages, resolving a long-running and financially sensitive deal inherited from the previous government. The agreement also covers warranty repairs to 31 carriages already delivered and the settlement of related financial obligations and loan contracts.
David Vitézy, Hungary’s Minister for Transport and Investment, announced the breakthrough following bilateral talks with Egyptian President Abdel Fattah el-Sisi and his ministers in Budapest on Friday. The negotiations were led by Prime Minister Péter Magyar and involved representatives of both governments.
Under the agreement, the remaining carriages will be manufactured and delivered by the Dunakeszi Railway Vehicle Repair and Manufacturing Company, which is now owned by Hungarian state railway company MÁV.
Vitézy said the parties had managed to find a solution that would serve Egyptian passengers while also protecting Hungarian taxpayers’ interests and remaining acceptable to Egypt.
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Hungary to complete the remaining 44 railway carriages
The agreement brings an end to a complicated situation involving a major railway contract that had stalled before the current government took office.
The original deliveries were halted, while the Dunakeszi facility underwent a turnaround and was brought back under MÁV ownership in recent months. According to Vitézy, the unresolved deal had posed serious financial, diplomatic and operational risks for Hungary’s railway sector.
The minister said preparations for manufacturing the remaining 44 carriages would begin immediately. Hungary will also carry out warranty repairs on the 31 vehicles already delivered to Egypt. The financial aspects of the agreement and the associated loan contracts will be settled in a way acceptable to both sides.
Vitézy said he had worked extensively on the issue, holding negotiations with Egyptian Transport Minister Kamel al-Wazir in Cairo, Berlin and, most recently, Budapest. He described the outcome as a significant achievement, saying the complicated dispute had been resolved in the interests of both countries in just over six months.
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Hungary and Egypt seek closer economic cooperation
The railway agreement was among the key topics discussed during Egyptian President Abdel Fattah el-Sisi’s visit to Budapest. However, the two governments also explored opportunities for future cooperation in several other sectors, including transport, railways, energy, water management and wastewater treatment.
Hungarian President András Baka received el-Sisi at the Sándor Palace, where both leaders highlighted the stability of bilateral relations and their commitment to strengthening cooperation.
Baka noted that diplomatic relations between the two countries date back almost a century, with their centenary set to be celebrated in 2028. He also pointed to the strategic partnership agreement signed in 2023 as an important foundation for closer ties.
The discussions also covered major international challenges, including the Middle East situation, the conflict in Gaza, counter-terrorism and illegal migration. Baka stressed the importance of strengthening the strategic partnership between the European Union and Egypt to address these shared challenges.
El-Sisi, making his fourth visit to Hungary, described bilateral relations as strong and stable. He thanked Hungary for its support regarding the Palestinian issue, emphasising the need to prevent further military operations, ensure humanitarian aid reaches those in need and begin reconstruction in Palestine.
The Egyptian president also invited his Hungarian counterpart to visit Egypt, signalling both sides’ intention to deepen their partnership further.
