Rail lines reopen to passenger traffic and new railway management appointed

Five railway lines closed by the previous government have reopened for passenger traffic and more are to be reopened by the end of 2010. One of the new government’s aims is to increase the mobility of the rural population. A strategy for restructuring public transport has been submitted to parliament and an agreement signed between the government and the Trade Union of Hungarian Railway Workers. A new CEO has been appointed to run the Hungarian state-owned rail network MÁV.

Background

In autumn 2009, the former Socialist government announced the restructuring of the public transport system (HU1001029I). The measures affected the Hungarian State Railways (MÁV) severely, closing less-used secondary railway lines and cutting state subsidies to MÁV by €143.3 million (HUF 40 billion at 21 August 2010). By closing 29 railway lines the government hoped to make savings, but the strategy brought protest not only from trade unions but also from the general public living near the routes. For the first time since 2000, the railway trade unions took part in a joint warning strike in October 2009 and the then-opposition party, the Alliance of Young Democrats–Hungarian Civic Party (FIDESZ-MPSZ), said that it would reverse the closures if it won the national elections in 2010.

New government and its decisions

After winning the election, the new government announced that not only would it be reopening the rail lines, but that it would also reopen small post offices in villages wherever it was necessary for rural development and to boost the regional economy. At the end of June 2010, Janos Fonagy, State Secretary of the Ministry for National Economy, announced the reopening of five railway lines: Komárom-Székesfehérvár, Zirc-Veszprém, Pápa-Csorna, Lajosmizse-Kecskemét and Karcag-Tiszafüred. ‘Reopening is not a business issue, but a social and political obligation,’ said Mr Fonagy.

The ministry conceded that the maintenance of railway lines is expensive but insisted that closure would cost even more. The ministry’s decision affects 32 villages and 53 railway stations served by 210 kilometres of railways but this represents only a fraction of the 38 lines closed or suspended by the former government since 2007. The new government intends to reopen further lines before the end of 2010.

Zoltán Schváb, Deputy State Secretary at the Ministry of National Development, said:

The coming years’ railways policy will not be about closing the railway lines – it will be about providing a service. With the reopening of these railway lines, the new government hopes to send a message … The last new line was built and opened by our government 10 years ago. What we started then, we would like to continue.

The new government will deal with the renewal of public transport in the autumn when it plans to submit a comprehensive strategy to parliament. According to some sources, the state-owned MÁV will be divided into three parts, and thousands of railway employees could be laid off if state subsidies for some supplementary services are withdrawn.

Trade union reactions

On behalf of the employees, the Trade Union of Hungarian Railway Workers (VSZ) and the Free Trade Union of Railway Workers (VDSZSZ), commented: ‘VSZ welcomes the decision made by the government and hopes that the remaining lines will be reopened soon.’

VSZ’s statement stresses that the relaunch of passenger transport on these five lines was made possible by the agreement signed on 23 November 2009 setting out how the lines will be operated, stipulating personnel levels and technical standards. István Gaskó, President of VDSZSZ said that having opposed the closures, his union was happy with the new government’s initiative. He added that his members did not believe that the reopened lines would be unprofitable. The lines had previously been under-used because of poor quality tracks and rolling stock, and a passenger-unfriendly timetable.

New appointments

As many as 82 new appointments have been made in the two months since the election, affecting the managements of most of the state-owned companies. At MÁV, Ferenc Szarvas was elected President and Chief Executive Officer (CEO) of the company as of 1 August 2010. The Minister of National Development, Tamás Fellegi, has also recalled the members of MÁV’s board of directors and its supervisory board.

At the joint Austrian-Hungarian regional railway company GYSEV (Győr-Sopron-Ebenfurti Vasút), the resignation has also been announced of its president, András Szabó.

Máté Komiljovics, Solution4.org