Rail freight joint venture for transport between China and Europe is signed
The Záhony Logistics and Industrial Belt starts rail freight services between China and Europe.
Representatives of the Hungarian-owned CER Cargo Holding SE; the Russian-related railway company RZDL Europe Kft.; and the Hungarian subsidiary of the Austrian Rail Cargo Group, Rail Cargo Hungaria Zrt. signed a letter of intent on Tuesday in Budapest to establish a joint venture specializing in rail freight transport between China and Europe.
At the signing ceremony, Finance Minister Mihály Varga stressed that the creation of the Záhony rail and freight hub is of strategic importance not only for Hungary but also for Europe, as it will link the countries of the East with the European Union.
With the Budapest-Belgrade railway development and the logistics center in Záhony, Hungary’s role will become decisive in the handling of East-West trade, he said.
Varga stressed that the 28 percent increase in trade between Hungary and its eastern neighbors in the last 10 years was a clear sign of the success of Hungary’s strategy of opening up to the East. Thanks to this, foreign trade flows to Asia have grown much faster than total foreign trade.
According to the minister, Hungarian exports to China increased by 24 percent in 2020 compared to 2019, while imports grew by 26 percent. Total Chinese investment in Hungary has exceeded USD 5 billion, and Chinese companies operating in Hungary employ around 16,000 people.
He pointed out that Hungary’s most important partner in Asia is Kazakhstan, where exports in 2020 were 58 percent higher than a year earlier.
Minister of Innovation and Technology László Palkovics said that the development of railways will be a priority in the coming years. Climate protection requirements are also becoming more and more important for transport, and emissions requirements cannot be met without a well-functioning rail network, he said. In addition to infrastructure, rolling stock needs to be improved and cooperation is required to ensure highly efficient transport, the minister pointed out.
In a statement, CER Cargo Holding said that the administrative and operational preparations for the establishment of the company indicated in the letter of intent are already underway, and the company is expected to start operations in the first half of next year. It will focus mainly on rail transport of imported Chinese goods and export shipments to the Far East.
