Budapest’s key intermodal freight terminals face extended rail closures

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The impact is said to be equal to closing Hungary’s M1, M3, M5, and M7 highways.

The five largest intermodal freight terminals in Budapest will soon be inaccessible by rail for a significant period, reports Hungarian portal G7. The closures, totalling 16 days, are set to cause substantial disruptions in the logistics and supply chain sectors.

The closures are necessitated by the planned closure of railway tracks over Soroksári út in August. This timing is critical, as the city’s public road management authorities will not permit the road to be narrowed to one lane twice before the winter school holidays.

These crucial tracks link Ferencváros station with the Budapest-Belgrade line’s capital section. Furthermore, a line of the Gubacsi bridge, the sole access route to four major container terminals—MCC, METRANS, Masped, and Budapest Free Port—branches off from this route towards Csepel Island.

Additionally, the Budapest Intermodal Logistics Center (BILK), the largest container terminal in the capital, connects to this line further south. However, the Gubacsi bridge’s poor condition will lead to four separate three-day closures in the coming months.

Over the past decade, Budapest’s combined terminals have managed a tenth of Hungary’s international freight traffic. This combined transport of containers and truck semi-trailers is vital for international freight operations.

However, the Gubacsi bridge’s deteriorating state has necessitated that trains travel across it at a crawl, requiring the use of lighter locomotives, which is said to be a costly and inefficient solution.

Despite a 2017 government decision mandating a HUF 10 billion renovation, a comprehensive overhaul has not occurred due to financial constraints, writes G7. The Hungarian publication adds that a more recent government decision this year proposes a HUF 44 billion gross development funded by direct EU (CEF) funds, which remain accessible.

According to G7, the broader issue is compounded by MÁV’s (Hungarian State Railways) limited capacity for manoeuvre due to the government’s funding withdrawals and an exceptionally low renovation budget. Additionally, delays in constructing the Budapest-Belgrade railway line exacerbate the problem; completion of this line would allow access to BILK from the south.

While a closure of a few days might seem manageable, experts predict that train transport delays will persist for months. This will likely increase goods transport costs, diminishing the competitiveness of Hungarian production companies. Consequently, companies near the borders might shift towards foreign terminals, leading to a potential loss in traffic and further strain on Hungary’s already under-resourced railway infrastructure due to track usage fees and reduced tax revenues.

Experts also highlight that the bridge over Soroksári út is not critically deteriorated, suggesting that its complete renovation could be feasible by 2026, post the completion of the Budapest-Belgrade line.

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