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Potential for Private Railways in Hungary As State Railway Contracts Near Expiry

Hungary Today 2023.12.15.

Railways operated by private companies could come to Hungary if the government does not extend the public service contracts of MÁV-Start and GYSEV, expiring on 23 December.

The privatisation of railway line operations could not only bring higher service standards, but could also solve the issue of rolling stock replacement and branch lines.

According to EU Regulation 1370/2007, the last date for the extension of public service contracts for the operation of railway lines in each member state without a call for tenders is 23 December, for a maximum of ten years, after which a public tender must be launched, open to private operators.

It is therefore possible that the monopoly of public operators on rail transport in Hungary will come to an end.

If open tenders were to be launched, the state would remain the customer, financier and organizer of the rail service, hence

there would be no change in fares, the number of departures or the scheduling of services.

In Western Europe, several countries have recently seen a number of routes taken over by private operators. One example is France, where the state-owned railway company (SNCF) has traditionally been very strong, but in the Czech Republic and Slovakia, where the situation is similar, a number of services have been taken over by the private sector. Examples from abroad show that private operators often provide a cheaper offer for the running of lines than public railways.

Budapest Suburban Railways Development to Result in Better Integrated, Faster Services
Budapest Suburban Railways Development to Result in Better Integrated, Faster Services

The development of Budapest’s three suburban railway (HÉV) lines connecting the city with Csepel, Ráckeve and Szentendre is in its planning phase, the Budapest transport development centre (BFK) said on Tuesday. The end result will be better integrated and faster services, the centre said. Thanks to an extension of the southern suburban rail lines to […]Continue reading

Via 24.hu; Featured Image: Pixabay


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