ADVERTISEMENT

MÁV to stop outsourcing overhead line maintenance

Tourism

State-owned Hungarian railway company MÁV will stop outsourcing maintenance of overhead lines from January, saving an annual HUF 2bn from 2012, chairman-CEO Ferenc Szarvas said at a press conference on Thursday.

MÁV started outsourcing maintenance of its almost 7,000km of overhead lines in 2005 at an annual cost of about HUF 5bn.

The contracts of the two companies carrying out the task at present will expire at the end of this year. A decision not to renew the contracts was made after they asked for MÁV to raise their compensation to HUF 5.2bn after doubling their offer just a year earlier, Szarvas said.

Taking over the activity will require the one-off purchase of about HUF 2.5bn of assets, but this amount will be quickly recouped, Szarvas said.

About 50 MÁV staff work on overhead line maintenance at present, but the number will rise over 600 from January. Most of the new hires will come from the two contracted companies.

ADVERTISEMENT

Average age of coronavirus patients declining Analysis

Average age of coronavirus patients declining

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.