Strategic agreement concluded between Rail Cargo Hungaria Zrt. und Ipoly Erdő Zrt.

A strategic framework agreement, valid until the end of 2019, was concluded again between Rail Cargo Hungaria and Ipoly Erdő Zrt. Ipoly Erdő Zrt. represented the 22 forestries partly owned by the state.

The document was signed by Imre Kovács Chairman of the Board of Directors, CEO of Rail Cargo Hungaria and László Kiss executive director of Ipoly Erdő Zrt. On the event dr. János Nagy, subsecretary of the Ministry of Agriculture –  that exerts the owner privilege of the state forestries – was present as well.

The agreement defines the regulations concerning freight charges. The parties already agreed about this year’s transport conditions, as the extra charges, occurring due to the many diversions caused by railway construction works and the 30% price increase of the traction energy, had to be transferred by Rail Cargo Hungaria. The service charges valid until the end of 2019 are regulated by this agreement as well, by accepting a price-setting mechanism following the core inflation. Since 2011 the relationship between Rail Cargo Hungaria and Ipoly Erdő Zrt. is strengthened by strategic cooperations. This is necessary as the regional scope of the forestries’ business activities and the extent of their need for rail logistics is expanding.

The trains of the market-leading rail freight operator transport 600 - 700 thousand tons of wood every year to its destination. Due to this framework agreement the transports are predictable and foreseeable both for RCH and the forestries. Rail Cargo Hungaria concludes the transports with four-axle open wagons and this cooperation guarantees the availability and the utilization of the wagons. The destinations of the wood transports are currently under reorganization. There is a higher demand for wood by the domestic construction industry and hence Rail Cargo Hungaria transports more shipments to domestic destinations then in the previous year. The amount of export transports has diminished.

The cooperation with Ipoly Erdő Zrt. focuses not only on rail logistics, but on the promotion of environment protection and eco-conscious thinking as well. Every year the colleagues from Rail Cargo Hungaria and the forestries participate in environmental activities.