Hungary has emerged as a collection and distribution center in the European logistics network

By: Trademagazin Date: 2025. 05. 07. 10:48

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Hungarian rail and intermodal freight transport showed mixed performance in 2024, according to the latest data from the Association of Hungarian Logistics Service Centers (MLSZKSZ). While rail freight transport struggled with significant cost increases and profitability problems, intermodal transport achieved an outstanding 122 percent growth, making Hungary a hub (HUB) in the European logistics network. The success of the sector depends on further investments, the development of the regulatory environment and the modernization of the railway infrastructure.

According to data from the Hungarian Railway Association Hungrail, in the last quarter of 2024, the unit costs of rail freight transport companies increased by 10.3 percent compared to the same period of the previous year, while unit revenues increased by only 2.2 percent. This significant difference resulted in a dramatic deterioration in profitability, which the sector was unable to compensate for with a fee increase. The main reasons for the cost increase were the increase in operating costs, wagon inspection costs and network access fees, as well as exchange rate fluctuations in the case of international transport.

The competitiveness of the sector was further undermined by price competition with road transport, which sometimes forced railway companies to reduce prices. According to the Hungrail rail freight index, the sector’s performance is on a declining trajectory, which was further aggravated by track closures due to railway construction works in 2024.