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Rail Cargo wins bidding for MÁV freight

The consortium of Austria’s Rail Cargo and western Hungarian regional rail company GYSEV were selected as winners of the privatization tender of the shipping division at state rail company MÁV, MÁV Cargo.

The winning bid of Ft 102.5 billion (about $589.9 million) will lead to brief direct negotiations between the future owners and MÁV, to be shortly followed by the contract signing in early 2008, said Economy Minister János Kóka. The Rail Cargo-GYSEV duo beat Slovakia’s Sped-Trans consortium with its runner-up bid of Ft 86 billion, and the Cargo Central Europe consortium with an offer of Ft 57.1 billion in third.

MÁV Cargo, touted as a key logistics asset in the heart of the European Union’s fastest growing region, went on the block earlier this year as part of government attempts to reorganize the inefficient rail system. (Gazdasági Rádió, NG)