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MÁV Cargo sees steep fall in business

MÁV Cargo, the Hungarian unit of Rail Cargo Austria, expects to carry 33 million tons of goods in 2009, down from 41.8 million in the previous year, but the fall will not affect the company's profitability because of cost cuts, MÁV Cargo Chairman-CEO Imre Kovács said.

MÁV Cargo had revenue from cargo fees of HUF 34.8 billion in January-August, down from HUF 46.3 billion in the same period a year earlier, Kovács said.

MÁV Cargo wants to raise the average speed of its trains from 16km/h to 25km/h, which would mean big cost-savings for the company and an improvement in the quality of service it offers to partners, he said.

MÁV Cargo currently rents much of its engines from MÁV Trakció, the traction unit of Hungary's state-owned railway company MÁV, but it has already purchased 19 of its own engines and taken delivery of 11 of these, Kovács said. The company aims to have 60-70 engines by 2011-2012, cutting its orders from MÁV Trakció by as much as 70%, he added. (MTI – Econews)