Railway JV aims to increase trade with China

Trade

Photo by photos by keith / Shutterstock.com

Hungarian-owned CER Cargo Holding SE, Russian-owned RZDL Europe Kft., and the Hungarian unit of Austria's Rail Cargo Group, Rail Cargo Hungaria Zrt., have signed a memorandum of understanding in Budapest on setting up a joint venture to move cargo between China and Europe, according to business daily Világgazdaság.

Administrative and operative preparations for establishing the JV are underway and it is expected to start operation in the first half of 2022.

The JV will focus on bringing imports from China to Europe and exports to markets in Asia.

Speaking at the signing, Minister of Finance Mihály Varga said a cargo hub being established in Záhony (300 km northeast of Budapest) on Hungary's eastern border is of "strategic importance" for Europe as a bridge between countries in the East and the European Union.

He added that the Záhony cargo hub, together with an upgrade of the rail line connecting Budapest and Belgrade, will make Hungary a "key player" in the flow of trade of goods between East and West.

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