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EUR 1.77bn Budapest-Belgrade railway project moves ahead

The modernisation of the Budapest-Belgrade railway line is moving forward in accordance with EU regulations, stated Péter Szijjártó, the Hungarian Minister of Foreign Affairs and Trade on Thursday in Budapest at the Hungarian Railways 2016 conference. Once completed, the project worth 550 billion forints (EUR 1.77bn)  will facilitate the transport of goods from the Far East to Western Europe, improving railway access to the Port of Koper, which is important to Hungary from a foreign trade perspective, and the connection of Western Hungary to the continent’s north-south railway network.

“The development of Hungarian infrastructure is required to maintain and increase the country’s competitiveness, in which the railway plays a determinant role. The goal is for Hungary to be unavoidable and indispensable within Central Europe from a logistics perspective”, he explained.

According to plan the Chinese party would submit its financing proposal by the end of October. Hungarian Railways (MÁV) and its Chinese partner will be setting up a joint venture company to manage the project, and this joint venture will be agreeing on the terms and conditions with MÁV by November, after which the parties are expected to agree on the loan construction in Riga on 5-6 November.

 

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