5 Oct 2022 15:10

Hungary to invest $29 mln in railway infrastructure to boost Ukrainian grain exports - media

MOSCOW. Oct 5 (Interfax) - Hungary's government has approved a project by the Hungarian State Railways MAV to raise HUF12.4 billion, or $29.5 million under the current exchange rate, in investment to upgrade infrastructure in the area of the Zahony-Chop border crossing with the aim of increasing grain exports from Ukraine to third countries.

"Thanks to HUF12.4 billion in investment, the volume of grain and grain products arriving in Hungary from Ukraine by rail via the Zahony forwarding bay may keep growing. The government's directive to this effect has been published," Ukrainian media said, citing the website of the Iho Hungarian media outlet.

This investment will make it possible to build broad-gauge tracks to the Zahony train station where cargoes will subsequently be transferred to narrow-gauge tracks, as well as to upgrade and repair existing tracks and auxiliary infrastructure in the area of the Zahony, Eperjeske and Fenyeslitke stations, according to the Hungarian media outlet. The stated goal of this investment project is to enable the soonest possible completion of MAV's efforts to increase the region's capacity for transporting Ukrainian agricultural products.

"Poland, Slovakia, Hungary and Romania should do all they can in order to enable Ukraine to export as much grain as possible by rail. The capabilities to increase traffic are often linked to the incompatibility of broad-gauge railcars waiting to be unloaded or empty railcars and narrow-gauge railways waiting to be loaded. That is why, it is necessary to clear abandoned rail tracks at cargo transfer sites," it said.

Some rail lines in the region have become impassable because they have not been used for the past few decades, the media outlet said. The current goal of MAV is to restore closed rail lines, increase their freight-carrying capacity and to enable trains to travel at up to 40 kilometers per hour at middle sections, it said.

It was reported, citing the Zakarpattia region military administration, that Hungary is working to enlarge the Chop-Zahony and Luzhanka-Beregsurany crossing points on the border with Ukraine in order to upgrade grain corridors.

Earlier, Ukraine and Hungary jointly asked the European Union to help increase the throughput capacity of rail border crossings on the Ukrainian-Hungarian border.

According to Ukrainian Minister of Agrarian Policy and Food Nikolai Solsky, Slovakia and Hungary are logistics corridors on the European market that were not developed, as Ukraine exported its agricultural products mostly by sea.

"We have fewer crossing points on the border with Hungary than on the border with Romania and Poland. That's why, we are planning to increase this number and are already working on it," the Ukrainian minister said.