MÁV cargo might be worth Ft 100 bln
Tuesday, August 15, 2006, 17:13
The rail cargo business of MÁV Zrt (state owned, Hungarian railways) MÁV Cargo Zrt might worth about Ft 100 billion for its future owner, Magyar Hírlap wrote. It is unlikely tough, that the privatization tender for the rail cargo business will open this year, because tariff for using the railways will only be prepared for next year, and financial details of the privatization tender can be specified only when the tariffs are known. Based on the experiences from the recent privatization of the Slovakian railway company’s cargo business, ZSSK Cargo, the price of the Hungarian cargo business might reach Ft 100 billion. ZSSK Cargo was separated from the passenger transportation business in 2005, and the privatization tender was opened last October, but the new government cancelled it this spring.
Numerous investors were interested and 14 contenders took part in the Slovakian tender and the Hungarian cargo business is in better financial shape compared to the Slovakian one. This shows that the privatization of the Hungarian cargo company is likely to attract strong attention. MÁV Cargo also has a significant market share on the cargo market and few competitors can beat it on the railway business as well. While in western-Europe rail cargo only has a 11-12% share in the cargo business, in Hungary this market share is 20%. The Hungarian company forecasts Ft 80 billion revenue and also some profit by the end of this year. (portfolio.hu)