The Hungarian government has announced the construction of a rail ring around Budapest, the so-called V0 rail cargo ring. HUNGRAIL, the Hungarian Rail Association, contributed to the development by signing a cooperation agreement with MLSZKSZ, the association responsible for the plans. As part of its schedule, the Hungarian Rail Association is to contribute to the development through the suggestions and opinions of its professional committees.

Along the 113-kilometre open, electrified and two-tracked route, which contains two bridges on the Danube, trains can travel up to 160 kilometres/hour. The tracks are solely for the purpose of rail cargo freight. The route will be built between Tatabanya and Cegled, so rail cargo may cross the country in one day, as opposed to the 4 – 5 days it took prior to the new route. The Hungarian government is now looking into whether the development will be funded by the China Development Bank, with a development agreement worth at least one billion euros, or by the European Union. If the development is financed by the Chinese, the construction can start in the spring of 2014. All cost estimates, planning and licensing must be done by then, and the route can be ready by 2017.

The Hungarian rail network is centred in Budapest, which in terms of passenger transport is understandable, but is a disadvantage when it comes to rail cargo freight. During the day rail cargo cannot be allowed onto the overcrowded suburban tracks of Budapest, therefore the average speed of a cargo train in Hungary is very slow.

The route will be built in the style of a motorway, so there will be exits at Szekesfehervar, Pusztaszabolcs, Kecskemet and Szeged among others. The development could be a huge push for the Hungarian building industry but it will also create new employment opportunities at the stations of Komarom, Tatabanya, and Szolnok.

Imre Kovács, CEO of Rail Cargo Hungaria and board member of HUNGRAIL, pointed out that the new two-tracked route, with the sole purpose of rail cargo freight, is beneficial for the market-leading Hungarian rail cargo freight company and any other rail company involved in transit traffic. The development presents the possibility of expanding business relations, since it reduces travel time by days. This will result in better circumstances than previously even for goods coming from the Middle- and Far-East, travelling through Zahony to western Europe.

(Source: Hungrail)