Chinese Loans to Fund the Construction of Ferihegy Railway and Budapest Bypass Line
Big railway development projects may soon be underway with the help of Chinese subcontractors, technology, and, importantly, Chinese financing.
According to a plan from China, a separate high-speed railway line for Ferihegy could be constructed that would not connect to the existing network. This line would operate independently from the Hungarian State Railways (MÁV) in terms of pricing and would only shuttle between the airport and Rákosrendező as reported by iho.hu. The portal also believes that the construction of the Budapest bypass railway line, known as V0, could also be financed by Chinese loans and built by Chinese subcontractors. Telex has learned from government sources that both pieces of information are correct.
Foreign Affairs and Trade Minister Péter Szijjártó announced in Beijing on Wednesday that there is now an opportunity to develop the railway network with external financing. However, he did not provide details about the exact plan at the time.
The idea is not new; discussions about the Chinese construction of the Ferihegy railway, which would connect the airport to the Budapest-Záhony railway line, date back to 2011. This line would require significant work to connect to Terminal 2, which is currently in use, as it is further from any existing railway lines. Similar plans resurfaced in 2019 at that time, there was also debate about the Chinese preference to lead the railway towards Rákosrendező, while Hungarian industry representatives wanted it integrated into the Záhony line. These plans, discussed over five years ago, closely resemble the current proposals.
Since then, two crises have occurred, and our budget is currently under strain, leaving little capital available. However, the construction is deemed necessary to serve the needs of battery factories and to facilitate the transport of their products. According to sources from Telex, the government has forfeited EU funding, and with no domestic resources available, Chinese loans remain the only solution.
Additionally, the V0 cargo railway line, intended to bypass Budapest from the south, is also part of the plan. This is an old project that has seen numerous attempts to start but has yet to materialize.