In a move that could reshape the landscape of toll collection in Hungary, the government, under the leadership of Minister Lázár János, is preparing for major nationalization efforts in the toll payment system.

This initiative follows the transfer of the National Toll Payment Services (NÚSZ) Zrt.

from former minister Rogán Antal to the Ministry of Construction and Transport in February 2023. The government’s recent audit of NÚSZ revealed significant operational inefficiencies, prompting Lázár to dismiss the company's entire senior management and commission a comprehensive IT audit.

NÚSZ generates substantial revenue, reportedly exceeding 800 billion forints (approximately 2 billion euros) annually from tolls across various categories.

Notably, personal vehicle tolls account for about one-fifth of this revenue, while the remainder is predominantly derived from truck usage fees, reflecting both distance traveled and environmental impact.

Additional income is generated through penalties, which have also been a significant revenue source.

Anticipating a possible end to the ongoing Russia-Ukraine conflict, the Hungarian government expects to enhance its role as a transit hub for north-south and east-west freight traffic, potentially increasing toll revenues further.

In light of this, the decision has been made to eliminate reliance on external service providers and to transition all toll-related IT operations in-house to ensure total state control over this crucial revenue stream.

Given NÚSZ's new alignment under the Ministry, there is speculation about the potential merger of NÚSZ with Magyar Közút Zrt., the entity responsible for road management.

Although the realization of this plan remains uncertain, various sources indicate that support for this direction has been solidified following discussions among government officials, including Prime Minister Orbán Viktor and Minister Lázár.

The proposed changes signal a significant shift in the toll collection landscape, particularly related to IT sourcing.

Historically, the i-Cell group, owned by Emőri Gábor, dominated the market since the launch of the Hungarian toll system in 2013. However, under Rogán's leadership, the Asura group, managed by Gubicza Ágoston, began to secure its position in the market.

Asura was poised to expand its operations further by assuming critical roles in application management for toll collection that were previously under NÚSZ's jurisdiction.

Lázár’s takeover has halted all pending agreements, and the newly appointed NÚSZ leader, Bartal Tamás, has expressed determination to rectify existing discrepancies by scrutinizing the roles of external companies profiting from the toll system, including those like ATS AI Services and Kupon Portfolio Kft.

These firms have reportedly earned substantial commissions in exchange for facilitating toll transactions and related services.

As the audit progresses, there are indications that the Hungarian government aims to nationalize the toll system entirely by December 31, 2025. This plan would potentially exclude all private entities and contractors to ensure better accountability and efficiency within the state-managed framework.

The overhaul is expected to integrate vital operational systems such as toll collection and auditing into a single state-run enterprise, which will perform functions that had previously been outsourced to private companies.

The initiative is not without opposition, as various stakeholders within the private sector have expressed concerns that the move could stifle competition and innovation.

The state’s emphasis on transparency and reducing 'interference' in the toll operation underscores its commitment to curtailing excessive private investment profits, particularly in light of escalating operational costs.

Meanwhile, prominent players in the external service market are reacting to the government's resolve.

Companies that historically provided essential technology and support for toll collection are bracing for potential disruption to their business models, with projections indicating that the government intends to absorb most existing IT systems into a unified state operation.

The discussions surrounding potential legislative changes are ongoing, with the government anticipating future parliamentary debates stemming from these outlined plans.

Notably, the participation of influential figures, including Sándor Csányi of OTP Bank, who is involved in the local camera market, adds another layer of complexity to the unfolding situation.

The effort to nationalize the toll system represents a broader trend within the government to regain control over lucrative state operations that have historically seen extensive privatization, amidst concerns of accountability and fiscal management.