Hungarian railway. Photo: Maxpixel

Hungary grants 26 billion HUF for single wagon transport

Rail freight companies in Hungary can apply for a fund to keep running single wagon transport services. For this year, an expected grant of 1 billion Hungarian forint (2.8 million euros) is made available. In the period between 2022 and 2025, the eligible budget is 6.4 billion Hungarian forint (17.8 million euros) per year. This was decided by the Hungarian government and approved by the European Commission.

In the next five years, the Hungarian state is allocating 26 billion Hungarian forint (72.3 million euros) to enhance the competitiveness of sustainable rail freight transport. Because, the industry argues, single wagon transport is a key driver of this sector.

“The contracts signed today will also bring us closer to meeting the climate targets, as the sustainable and clean single wagon transport replaces the traffic of yearly hundreds of thousands trucks on the road, preventing greenhouse gas emissions and reducing road safety risks”, highlighted Imre Kovács, who is member of the Board of Hungrail Hungarian Railway Association and Chairman of the Board of Rail Cargo Hungaria.

Single wagon transport

With single wagon transport, goods can be moved in as little as one wagon, directly from the location of the companies when industrial sidings are available. These single wagons then arrive at an assembly station, where block trains are formed based on their target destinations.

Single wagon transport offers many advantages. Apart from flexibility, it is suitable for the transport of any kind of goods, which are not all accepted on the road. According to Hungrail, an increasing number of European countries prohibit the road transport of several substances and products, which leaves single wagon transport as the only solution for many Hungarian companies. “It creates safe conditions for transporting yearly 2.3 million tonnes of hazardous materials to their destinations in the future as well.”

The grant

The grant helps rail freight companies to maintain the number of employees required for service provision, to reduce the competitive disadvantage compared to road transport and to increase the flexibility of customer service.
As a proof of concept, it is worth noting that there had already been a successful application, submitted by CER Hungary Zrt., GYSEV Cargo Zrt., Floyd Zrt. and Rail Cargo Hungaria Zrt. The subsidy is granted by the Ministry for Innovation and Technology and disbursed by MÁV Zrt. as sub-grantor.

Kovács noted: “The signing of the agreements gives the Hungarian national economy a competitive advantage over those countries that do not help to maintain single wagon transport. With this railway logistics solution, rail freight companies carry out the export forwarding of products of Hungarian companies, of which road transport is not permitted by the authorities of several European countries.”

Author: Majorie van Leijen

Majorie van Leijen is editor of RailFreight.com, online magazine for rail freight professionals.

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