Adria Port to play key role

This project is part of the IMEC corridor, connecting India to Europe via the Middle East, the ADM said. A key role will also be played by Adria Port, the future rail terminal that the Hungarian government is building within the port of Trieste. The facility, which should be ready in 2028, will provide the landlocked country with an outlet on the sea.

The state-owned company owning the terminal already signed agreements with two operators for services: Gysev Cargo and Rail Cargo Hungaria. The latter is part of the Austria state-owned Rail Cargo Group, which already deploys a customs corridor between the port of Trieste and the Logistik Center Austria Süd in Villach/Fürnitz.

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Adria Port

Hungary picked Trieste over Koper to build a terminal in a port on the Adriatic. The facility will cover an area of 34 hectares, and rail freight will be at the heart of the project being the main transport mode for transport to and from the port. In total, around 200 million euros will be invested, with 45 million euros coming from the Trieste Port Authority and the rest from the Hungarian government.

European Cargo Experience

Terminals, terminal equipment and synergies between modalities will be the main topics of the upcoming European Cargo Experience. Organised by RailFreight.com jointly with our sister publications World Cargo News and Project Cargo Journal, the event will bring together leaders from all the sectors of the logistics industry. Find out more about the event here and secure your Early Bird tickets here.

The history of the project

Hungary considered the construction of a new line between Budapest and Kelebia, on the border with Serbia, as one whole project, which started in October 2021. Serbia, on the other hand, divided the new line between Belgrade and Subotica into sections. The renovation of the stretch between the capital and Novi Sad started in 2017 and was completed in 2022. For the Novi Sad-Subotica section leading into Hungary, construction started in November 2021.

The total investment for the Budapest-Belgrade new line should be around four billion euros, but it is difficult to have an exact figure. For the two Serbian sections (Belgrade-Novi Sad and Novi Sad-Subotica), contracts for more than 900 million euros each were awarded to a Chinese consortium formed by China Railway International and China Communications Construction Company. For the Hungarian part, the cost should revolve around two billion euros and was built by a Chinese-Hungarian consortium..

A curious request

Passenger traffic is expected to begin in a couple of weeks on 15 March. In his LinkedIn post, Zsolt had a somewhat peculiar requests for drivers who will find themselves crossing the railway. “For a long time, people living in the region could get used to the fact that there are no trains running on the tracks”, (…) We ask everyone not to drive out of habit: to approach railway crossings in full compliance with the traffic rules and with due care”, he stressed.

Despite these challenges, the service, operated through a partnership with Ukrainian Railways and its Polish branch UZ Cargo Poland, provides Lviv with a connection to Hungary and then the rest of Europe. And this is just the beginning, it seems. “We plan to expand this service to additional cities in Ukraine as demand develops”, she added.

‘All terminals should be equipped’

Mirzojeva also analysed what needs to be done to make this sector even more popular. “Three key elements are essential: competitive pricing, supportive policies and terminal capabilities”, she pointed out. The first two are needed to make rail financially competitive with other modes, especially road freight. Whether it is governmental subsidies or stricter emission standards, there are plenty of initiatives that could improve the situation.

Regarding terminals, “Hungary already has a strong foundation”, Mirzojeva said, “several intermodal terminals operate efficiently”. However, there remains room for improvement, especially in the context of semi-trailer transport. “All terminals along the route should be equipped to handle both craneable and non-craneable semi-trailers”. This factor is “crucial for smooth and efficient intermodal operations”, she concluded.

The system used to load the non-cranable semi-trailers onto the rail wagons is the r2L Connector, developed by VEGA and VTG, the most common for this type of operation in Europe. Semi-trailers are driven onto a platform that can be lifted and moved on the train. For example, the r2L system is also deployed for the connection between Mostyska, west of Lviv, to Forst, in Germany.

Not only Hungary

Heavy snowfalls are also hitting Germany and the Benelux area causing operations issues at two of Europe’s largest ports: Hamburg and Rotterdam. At the former, extreme weather conditions and possible traffic disruptions are expected to continue until Sunday. “we are forced to significantly reduce further loadings in the direction from/to Hamburg”, Metrans said.

In Rotterdam, the snow paralysed the railway network for most of yesterday, 7 January. Furthermore, the Waalhaven part of the port had to deal with a power outage, with various terminals working at a slower pace or halting operations. With Hungary now facing similar issues, the European rail freight industry is under stress in various key locations with not much to do but to wait.

Connectivity and industries

The Szeged terminal will boast a number of important benefits. METRANS points out that the future hub will connect local industrial and commercial flows with broader European trade networks. Improved connectivity will also help to attract investments to the region, such as in the manufacturing, automotive, electronics, fast moving consumer goods and e-commerce industries.

“The launch of construction for our second Hungarian terminal is a significant step that reflects our long-term commitment to the future rail and intermodal logistics development”, commented METRANS CEO Peter Kiss.

“Years of collaboration and shared achievements have made Hungary far more than just an investment location for METRANS. The expected growth in international freight flows, strong domestic investments and the supportive business environment create highly favorable conditions for further joint development.”

German and Chinese ventures in the city

Szeged has managed to attract two key industrial investments in recent times, for which the logistics needs in the city are certain to grow. For one, the Chinese automotive company BYD is poised to open a production plant in early 2026. Large-scale production will then start in Q2 and could reach up to 300,00 cars produced annually.

Moreover, the German arms manufacturer Rheinmetall opened a factory in Szeged just this week. The facility will make products for the company’s automotive business unit, including electrical components and products for the use of hydrogen in mobility and energy generation. In addition, some 10% of the production area is planned for goods from the military business of Rheinmetall’s Electronic Solutions division, the company announced in 2024.

Together with Szeged’s strategic location, those investments make for an attractive business outlook. A quick look at open sources reveals that Szeged is relatively well-connected via rail to Serbia, and from there to the Piraeus port in Greece. Budapest is a stone’s throw away, as well as the Arad logistics hub in Romania. The Slovenian port of Koper is also not far off.

Political representation at groundbreaking ceremony

It is clear that Hungary itself also attaches great importance to the construction of METRANS’ terminal. The groundbreaking ceremony was attended by the country’s Minister of Foreign Affairs Péter Szijjártó, Minister of Foreign Affairs and Trade István Joó and the head of the investment agency, László Botka.

The government is reallocating an unspent 18 billion forint (47.1 million euros), which were originally intended to be spent on rail, to road infrastructure investments instead. “Apparently the Hungarian railways are in such good condition that there was no point in spending it”, said Vitézy. The former state secretary lamented the fact that the rail budget was already meagre, but now 90% of that budget is even going to be spent on the road.

Then there is news regarding spending on single wagonload operations. A subsidy amounting to 6.7 billion forint (17.5 million euros) is subject to cancellation. That money supported the modal shift by making the railways more competitive. In turn, points out Vitézy, the scheme also supported the MÁV budget by generating more track access charge income. The subsidy scheme was renewed in September this year, to the delight of the Hungarian rail sector. As it turns out, the sector celebrated too early.

Rail Cargo Hungaria plans business reductions

As a consequence of the Hungarian policy turnaround, the ÖBB Rail Cargo Group subsidiary Rail Cargo Hungaria has already amended its approach to SWL operations in the country. The company’s CFO Csaba Raisz told publication Világgazdaság of some of the changes the operator is implementing.

First off, RCH will no longer accept unprofitable contracts. That will mean cuts to its three million tonne SWL business and translates into a subsequent 10% cut in the company’s network. Customers will be able to load and unload goods in fewer places. “When we cut back the network, unprofitable transports are eliminated, but previously profitable ones can also become unprofitable”, Raisz explained.

Moreover, RCH plans to increase prices to offset the loss of subsidies and reduce its workforce. Some 500 people (out of 1,700) are expected to lose their jobs next year. RCH also plans to shrink its locomotive fleet, retire more wagons and reduce shunting capacity by 10%.

RCH is most probably not the only company that will change its approach to the SWL business in Hungary. Eleven other operators have benefited from the subsidies in the past year.

The Austrian operator already runs trains between Budapest and Istanbul, with further links to Austria, Germany and Belgium. Moreover, Curtici is connected to the Turkish port of Tekirdağ, an important hub for goods coming from Ukraine, Russia and southern Europe.