Chinaʼs COSCO Shipping on Wednesday acquired a more than 15% stake in Rail Cargo Terminal-BILK, the Hungarian unit of Austriaʼs Rail Cargo Group, state news wire MTI reports.
With the purchase, made through COSCO unit Ocean Rail Logistics, COSCO will join the operation of a well-functioning, developed network, said Rail Cargo Austria board member Thomas Kargl.
COSCO Shipping Europe chairman Sun Jun said Hungary is a forwarding hub in Europe, and the terminal in Budapest is a bridge between sea and land routes.
Chinaʼs ambassador to Hungary Duan Jielong said the contract is an acknowledgment of stronger Hungarian-Chinese ties. Beijing is open to advancing this cooperation further, he added.
Hungarian state secretary László Mosóczi said the deal could boost rail freight volume from China.
Rail Cargo Terminal-BILK started operating on a 22-hectare area in Budapestʼs District XXIII in 2003. It has the capacity to forward about 220,000 TEU containers a year.
The company had revenue of HUF 2.7 billion last year, public records show.