The cooperation in the field of single wagonload transport further strengthens the existing excellent relationship between Rail Cargo Hungaria and the SŽ-Tovorni promet.Dr. Kovács Imre, the Managing Director of Rail Cargo Logistics-Hungaria and Ernest Gortan, the Chairman of the Board of Directors of the SŽ-Tovorni promet. signed the agreement in Budapest to strengthen the ties between the two entities.
Both countries provide state subsidies to help maintain the rail transport of single wagonload and wagon group consignments. These transports are the most labour-intensive and the least profitable due to the short distances and the need for a range of related services. According to the agreement signed today, the two entities will simplify and accelerate the issuance of offers
The importance of subsidising single wagonload transport is reinforced by the fact that the competitiveness of railways is not strong enough even in those freight segments that are generally more advantageous for rail transport, such as mineral products, agricultural products, and timber products.
In Hungary, state subsidies have helped single wagonload transport to survive since 2021. Railway undertakings can apply for a total subsidy of HUF 6.4 billion annually. A total of 9 railway undertakings currently provide such services. There is high demand for the subsidy and the companies had exhausted the 2024 budget before the end of the year. Only RCH provides nation-wide coverage, which performs the largest share of the traffic.
This complex railway technology allows 700 companies that play a key role in the national economy of Hungary to access their raw materials and market their goods. This freight solution ensures the security of their logistics needs. The subsidy is due to expire soon. Maintaining and paying the subsidy for another five-year period starting in 2026 is crucial.