Here’s how MÁV would improve its services in Hungary in the future
MÁV has announced plans to reduce railway track charges in a bid to boost rail freight transport and address competitiveness challenges, following pressure from associations. The changes, set to take effect next season, aim to ease financial strain on rail operators and encourage increased use of the network.
MÁV’s ambitious plans
As Portfolio reports, MÁV is set to reduce railway track charges to boost rail freight transport and improve sector competitiveness, as announced by Krisztián Urvald, MÁV’s Director of Infrastructure Services, at the Hungarian Railways 2024 conference. This decision comes in response to long-standing pressure from freight operators and their associations. Under the proposal, companies will not be charged for track usage beyond a predetermined mileage threshold. Once this limit is reached, network access charges for basic services, such as path provision and track access, will be waived for the rest of the schedule.
Tackling an ongoing issue
MÁV’s decision to reduce track charges for rail freight aims to reverse the sector’s decline in recent years, exacerbated by rising access fees. Ancillary services, such as station usage and telecommunications access, will not be included in the discount scheme, but the changes are expected to take effect next season. This move comes after a significant 14.5% increase in track access charges in 2024, which alarmed freight operators and prompted Hungrail, the Hungarian Rail Association, to demand a review, warning that rail transport was becoming increasingly uncompetitive against road haulage.
Boosting traffic
The new measures are designed to encourage railway companies to increase traffic and make better use of the rail network. While the exact details of the reduction will be finalised in the coming months, MÁV expects the changes to significantly ease financial pressures on the 57 licensed contractor railways and 11 companies entitled to reserve capacity. Rail industry leaders are optimistic that this move will restore competitiveness against road transport. Krisztián Urvald noted that 80% of MÁV’s revenue comes from passenger transport, with public funding also rising significantly for cost reimbursements and infrastructure upgrades.
Restructuring the Hungarian Railways
Portfolio also writes that at the Hungarian Railways 2024 conference, Nándor Csepreghy, Deputy Minister of Construction and Transport, highlighted the renewal of Hungary’s railway network as both a challenge and an opportunity. He noted that railway development has gained national consensus, driven by environmental concerns and rising fuel prices. An EUR 10 billion investment is planned over the next decade to modernise outdated rail lines, upgrade rolling stock, and restructure MÁV.
However, with EU funds currently frozen, the government relies on national resources to bridge the financial gap. László Mosóczi, ministerial commissioner for rail development, also announced introducing a rail competitiveness package aimed at boosting the domestic rail vehicle industry.
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