International Railway Journal - January 2008 - (Page 18) Eastern Europe consortium of Austrian Federal traction provider. Railways’ freight arm, Rail Cargo Further large-scale privatisation has Austria (RCA), and Györ-Sopronbeen ruled out in the life of the current Ebenfurt Railway (GySEV) for Forints government, meaning the sale of MÁV 102.5 billion. This is intended to reduce Start is unlikely before 2010. However, MÁV’s debts, and release funds for some regional services will be infrastructure investment. concessioned to private operators The sale of MÁV Cargo has been in an effort to prevent further line watched keenly by investors across closures. Europe and attracted bids far in excess Having purged itself of loss-making of the Forints 60 billion - 80 billion the railway lines, and with its financial government initially predicted. MÁV position buoyed by the sale of MÁV Cargo is a potentially lucrative Cargo and the bond issue, MÁV’s acquisition for its new owner, boasting management believes it will be in a a 20% share of the Hungarian freight stronger position to invest. However, transport market and a turnover of “The inefficiency of MÁV will still be manacled by its Forints 93 billion in 2006 (up from MÁV is not accepted by Forints 86.5 billion in 2005) with pre-tax enormous debts, which now stand at more than Forints 400 billion. profits of Forints the government, the 2.8 billion. It Infrastructure investment railway or the railway’s carried 46.8 million tonnes of The European Union is co-financing infrastructure upgrades customers.” István Heinczinger freight in 2006, up worth around €2.9 billion in 2007-2013. These include: 6% over the Project Line speed (km/h) Timescale previous year, Szolnok - Lokösháza 120-160 2008-2012 coaches, and a fleet of 30 double-deck although its share Dombóvár - Kaposvár 120 2010-2013 emus for Budapest suburban services, of the Hungarian Budapest - Pusztaszabolcs 120-160 2008-2013 with options for up to 30 additional railfreight market Györ - Pápa - Celldömölk - Boba 160 2008-2013 trains. fell from 94.1% in Budapest - Székesfehérvár 120-160 2007-2011 Funding this investment will be aided 2005 to 92.2% in Szolnok - Debrecen - Nyíregyháza 160 2009-2013 Implementation of GSM-R 2007-2010 by a ƒ300 million - 400 million bond 2006 as new Budapest suburban traffic project 2008-2013 issue in the first quarter of this year. entrants Heinczinger describes this as a strengthened their significant step towards reducing position. Nonetheless, MÁV Cargo Speaking at CEE Rail, Mr Ákos Érsek, MÁV’s dependence on the state. “In the expects 2007 to be another profitable strategic director of the Hungarian past the only thing MÁV’s management year with an anticipated turnover of railway association Hungrail, suggested said to the government was “we need Forints 87.7 billion. that the government must tackle MÁV’s more money,” and for the last 10 years The new owners will be expected to debts and the chronic shortfall in nothing has happened. We have to invest in wagon refurbishment and IT funding. “MÁV’s mounting operational update the financing structure to systems. MÁV Cargo does not own any debts need to be consolidated and we provide the service level that our locomotives and currently hires all the want to see a scheme set up to remove customers require.” locomotives it uses from MÁV’s this burden. The government has Another major boost for MÁV’s traction division, although RCA and pledged ƒ3.7 billion for rail coffers was the sale last month of GySEV may choose to buy new development and we want that freight subsidiary MÁV Cargo to a locomotives or lease them from another commitment to be delivered, and the necessary funding to be put in place to continue the modernisation of MÁV beyond the end of the existing development plan in 2013.” Figures released last month show MÁV’s financial position is improving. It will incur losses of Forints 27 billion in 2007, a fraction of the Forints 83 billion deficit the previous year. MÁV president Mr Miklós Kamarás told a parliamentary committee recently that the railway had shaken off its culture of self-pity and resentfulness, and is now seeking new financial sources to sustain its three-year strategy, which will be unveiled this year. After a period of immense upheaval, MÁV’s MÁV Cargo does not own any locomotives, and hires those it management at last appears confident uses from MÁV’s traction division. Photo: Quintus Vosman the organisation will finally have the resources it so desperately needs for modernisation. IRJ 18 IRJ January 2008
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