EU Allocates HUF 2,000 Billion for Railway Development
Strong and Predictable Public Orders Essential for Development of Hungarian Rail Vehicle Industry
László Mosóczi, the ministerial commissioner responsible for the coordination of the sector, emphasized the need for strong and predictable public orders at the Hungrail Hungarian Rail Association’s Conference on Railway Rolling Stock Sector. According to reports from World Economy, while investor demand provides a good foundation for boosting domestic production of rolling stock, some purchases are made with subsidies and loans.
The strategy for rail vehicle production in Hungary aims for significant developments by 2030, including the need for over 100,000 new seats on the railways, an increase in freight transport capacity from 50 million tons to 70 million tons per year, the possibility of 160 kilometers per hour on as many lines as possible, the improvement of suburban rail transport, especially in the Budapest area, better rail accessibility for Hungarian populations living beyond borders and in neighboring capitals, and the fulfillment of the needs of the Hungarian defense and NATO.
László Mosóczi expressed hope that rail vehicle manufacturers and suppliers in Hungary will seize the opportunities presented by these developments. He highlighted that with the initiation of more domestic rail investments, more job opportunities will be created.
Hungary has recently invested HUF 1,100 billion (EUR 2.8 billion) in railway development through the Integrated Transport Operational Programme (ITOP). In the upcoming cycle, around HUF 2,000 billion (EUR 5 billion) in EU funds will be available for various projects, as highlighted by Szabolcs Ágostházy, State Secretary for EU Development at the Ministry of Construction and Transport.
Major achievements of the Integrated Transport Operational Programme include the upgrading of 209 km of track along the EU’s priority rail corridors (Trans-European Transport Network, TEN-T), the addition of 212 km of new lines on non-TEN-T lines, and the creation of 6,400 new railway seats.
Looking ahead, some ongoing projects will continue in the new cycle, such as the development of the TEN-T network, the procurement of motor trains, improvements to suburban railways and urban trams, the establishment of parking areas near railways, and the integration of ports with the rail network. Additionally, a significant amount of HUF 626 billion (EUR 1.6 billion) from the recovery plan will be allocated for these measures.
Róbert Homolya, President of Stadler Trains Hungary, highlighted that the global rail market is growing at a rate of 5-6% annually, with European production facing challenges due to factors like the COVID pandemic, conflicts, and rising prices. The rail vehicle manufacturing market, estimated at EUR 35 billion, has seen significant consolidation in recent years, with key players like CRRC, Alstom, Siemens, Hitachi, and Stadler dominating production.
Of the approximately 27-28,000 rail vehicles produced globally each year, a quarter are multiple-unit trains, a quarter are metro trains, a fifth are passenger railroad cars, an eighth are high-speed rail cars, and one tenth are locomotives.
The Hungarian rail industry is poised for growth and innovation, with government support and investment paving the way for a thriving domestic rail vehicle industry.
