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MÁV Cargo, Rail Cargo Austria see no decline in revenue in 2009

Hungary's MÁV Cargo and its owner Rail Cargo Austria count on reaching last year's revenue in 2009, Friedrich Macher, a member of the board of Rail Cargo Austria and MÁV Cargo, said.

MÁV Cargo had revenue of HUF 85 billion-90 billion in 2008. Rail Cargo Austria had revenue of €2.5 billion.

Rail Cargo Austria and MÁV Cargo could use the possibilities of cooperation to strengthen each other and steer around the crisis, Macher said. Several variations are being worked on, including cost cuts and drawing more business away from the road haulage market, he added.

MÁV Cargo and Rail Cargo Austria jointly re-negotiated their contracts with their biggest partners, Macher said. They also held talks with the rail companies of the neighboring countries. Based on current order stock, delivery volume looks set to fall 10%-15% this year, but the companies aim to counter this by taking joint steps to get new orders, strengthen combined rail-road services and drawing more business from road haulage companies.

The companies are seeking cooperation with strategic partners to strengthen their position on foreign markets.

Macher said Rail Cargo Austria is maintaining headcount at MÁV Cargo as stipulated in its privatization contract and added that he hoped the situation on the market would not deteriorate to the point that it would need to re-negotiate that part of the contract.

Rail Cargo Austria is meeting the investment conditions in the contract and will complete an annual HUF 8.9 billion of investments until 2012, Macher said. Last year's investments included the purchase of engines. In the future, investments will be aimed at raising MÁV Cargo's capacity and developing its IT system to provide better customer service. (MTI – Econews)