HUNGARIAN TRANSPORT POLICY - Central European Universitypdc.ceu.hu/archive/00002617/01/Hungarian_Transport_Policy_2015-ig_angol.pdf · HUNGARIAN TRANSPORT POLICY 3 In modern societies,

HUNGARIAN TRANSPORT POLICY

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FOREWORDRising living standards trigger greater mobility and increase demand forthe shipment of goods. Transport is a fundamental condition for economicgrowth, and a token of freedom and a better life for people. At the sametime, transport damages the environment and presents risks to life andhealth. Transport policy is meant to resolve this contradiction and balancethe two sides by finding ways to satisfy demands for increased mobilitywhile minimizing damage. In other words, it is the tool of sustainablemobility.

Social and economic changes, recent experiences, and the EuropeanUnion’s transport policy, issued in 2001 for the period ending in 2010, make it necessary tooverhaul Hungary’s transport policy that has been in effect since 1996.

In these early days of the 21st century, the standards of Hungary’s transport system–like thegeneral level of the country’s economic development–fall short of the European average.Hungary’s success in the market economy over the past decade has highlighted the fact thatfreeways, a high-performance railroad, sophisticated air transport, and inexpensive freightshipping of agricultural products on inland waterways constitute essential criteria for industrialand commercial enterprise in making investment decisions and choosing locations for facili-ties. In this way, transport has become a key factor of Hungary’s economic growth and abilityto compete in international markets.

On average, Hungarian households spend nearly one fifth of their total income on transporta-tion and related expenses. Transport, while enabling the free movement of people and goods,exerts a stressful influence on the environment by means of accidents, energy consumption,air pollution, and noise, and its sheer demand for space. The Hungarian transport develop-ment of the future will bring more awareness to improving living standards and implementinga sustainable growth pattern in harmony with the environment.

Obviously, the construction of the freeway system, the modernization of the railroad to meet21st-century requirements, the revitalization of Hungarian navigation traditions on the Danube-Rhine-Main waterway, the acquisition of solid positions in the dynamic air transport market,and the integrated development of urban and metropolitan transport networks outstrip thepowers of the Ministry of Transport alone. These goals of transport policy will take nothingless than a well-orchestrated collaboration between the national and local governments, do-mestic and foreign investors, private capital, and private enterprise.

Budapest, May 2004

Dr. István CsillagMinister of Economic Affairs and Transport


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CONTENTSpage

I. TRANSPORT POLICY_____________________________________________________ 1I.1. MAJOR FORCES SHAPING TRANSPORT POLICY_____________________________ 2

I.1.1. Factors influencing transport demand _________________________________________ 2I.1.2. The macroeconomic context ________________________________________________ 2I.1.3. Competition in the transport market ___________________________________________ 3I.1.4. Public services ___________________________________________________________ 4

I.2. OBJECTIVES AND STRATEGIC GOALS ______________________________________ 6I.2.1. Top priority objectives______________________________________________________ 6I.2.2. strategic goals ___________________________________________________________ 9

I.3. INSTITUTIONS AND REGULATION _________________________________________ 11

II. THE TRANSPORT DEVELOPMENT PROGRAM ____________________________ 14II.1. MODERN TRANSPORT AND IMPROVED SERVICES_________________________ 14

II.1.1. sustainable growth_______________________________________________________ 14II.1.2. Transport safety_________________________________________________________ 18II.1.3. National defense capability ________________________________________________ 19II.1.4. Reliable, safe, and accurate service based on up-to-date technology _______________ 19II.1.5. Improving existing transport systems and their exploitation _______________________ 20II.1.6. Rapid construction of lacking infrastructure____________________________________ 20II.1.7. Financing______________________________________________________________ 22II.1.8. Competitiveness and efficiency_____________________________________________ 23II.1.9. Professional training _____________________________________________________ 23

II.2. DEVELOPMENT BY TRANSPORT MODE ___________________________________ 24II.2.1. Infrastructure networks and hubs ___________________________________________ 25II.2.2. Ownership, regulation, amd operation________________________________________ 34

II.3. ROLLING PLAN FOR MID-TERM INFRASTRUCTURE DEVELOPMENT _______ 40

SUPPLEMENT ___________________________________________________________ 41LIST OF RELEVANT LAWS AND REGULATIONS________________________________ 41

OTHER DOCUMENTS AND PLANS _____________________________________________ 42


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I. TRANSPORT POLICY

TThhee ssiiggnniiffiiccaannccee ooff ttrraannssppoorrtt in economyand society clearly justifies the need for com-prehensive strategies and policies of transportdevelopment, devised to harmonize with thegeneral trends of domestic and internationalgrowth.

Transport policy regards transport as an or-ganic whole in which the various networks ofinfrastructure form and operate in a hierarchy.It unifies and coordinates mid- and long-termdevelopment plans, strategies, regulatoryconcepts, the institutional background, andfinancing. Taking into account the need tominimize environmental damage, it outlinesthe role of transport in social and economicdevelopment, relations in neighboring coun-tries, and Hungary’s own accession and ad-aptation to the EU. The transport policy is inharmony with the Cohesion Fund MasterStrategy designed to receive support from theEU Cohesion Fund, the National Develop-ment Plan for the use of EU Structural Funds,and the law on the National Plan for RegionalDevelopment.

The main pprriioorriittiieess discussed in this docu-ment by sector are as follow:

• CCoonnssttrruuccttiioonn ooff llaacckkiinngg iinnffrraassttrruuccttuurreein accord with Trans-European TransportNetworks (TENT) guidelines. Implemen-tation is aided by the transport alloca-tions of the Europe Plan, the National

Development Plan, and the Cohesion FundMaster Strategy.

• FFoolllloowwiinngg EEUU ttrraannssppoorrtt rreegguullaattiioonnss with aview to the distinctive features and possi-bilities inherent in the Hungarian situation,particularly domestic railway reform, publicpassenger transport service, and regulatedcompetition.

• DDeevveellooppiinngg aann eennvviirroonnmmeennttaallllyy ffrriieennddllyyttrraannssppoorrttaattiioonn system through environ-mental measures and preferences for envi-ronmentally sensitive approaches.

TThhee rreessuullttiinngg ttrraannssppoorrttaattiioonn ssyysstteemm wwiillll bbeeaassssiiggnneedd tthhee ffoolllloowwiinngg pprriioorriittiieess iinn ooppeerraa--ttiioonn aanndd ttrraaffffiicc mmaannaaggeemmeenntt::

• Preference for mass transportation overindividual means; encouragement of bicycleuse; improvement of pedestrian safety andcomfort.

• In goods traffic, incentives for rail and watertransport as well as combined/multimodalshipping methods.

The transport policy elaborates the details of thetransport system goals to be achieved by 2015.The implementation of specific network ele-ments will require the construction of the socio-economic and technical background. The trans-port policy addresses issues of urban transportin its major aspects only. Owing to the specialsignificance of this field, a separate concept forurban transport policy will be developed.

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II..11.. MMAAJJOORR FFOORRCCEESS SSHHAAPPIINNGG TTRRAANNSSPPOORRTT PPOOLLIICCYY

II..11..11.. FFAACCTTOORRSS IINNFFLLUUEENNCCIINNGG

TTRRAANNSSPPOORRTT DDEEMMAANNDD

The most important factors expected to shapetransport demand in Hungary are the follow-ing:

• In 2004, Hungary became a memberof the European Union;

• Hungarian GDP is expected to growsteadily, at a rate regularly above theEU average;

• With the ongoing restructuring of theeconomy, conventional, transport-intensive sectors will probably con-tinue to shrink;

• The economy will remain essentiallyexport-driven;

• The most dynamic growth sectors arethose with considerable foreign in-vestment that will continue to attractcapital;

• Hungary will absorb labor from neigh-boring countries;

• Demographic changes will restructurethe population in terms of age groups,employment rates and labor distribu-tion by sector;

• Differences between the country’s re-gions will decrease;

• Suburbanization–the trend of movingout of larger cities–will continue;

• As wages begin to approach the EUaverage, the resulting lifestylechanges will have implications formobility;

• The growth of the tourism industry willbecome a major factor.

These factors provide the basic vantagepoints for the strategic planning of eachtransport sector and are decisive in identifyingtransport policy priorities.

II..11..22.. TTHHEE MMAACCRROOEECCOONNOOMMIICC CCOONNTTEEXXTT

TThhee gglloobbaall rreecceessssiioonn that set in after the turnof the millennium has reined in Hungary’s exportoptions and discouraged investment. It is theintention of the Government to establish the rightconditions for sustainable growth, economicequilibrium, and improved competitiveness bymeans of a firmer and more stringent fiscal pol-icy in utter harmony with the EU’s fundamentalprinciples of liberalized markets, transparency,and fair competition. The Government’s programoutlines a macroeconomic framework in whichthe rate of GDP growth will rise steadily startingin 2003.

TThhee ttaasskk ooff ttrraannssppoorrtt ppoolliiccyy is to aid long-termeconomic growth and improve the quality of lifeby ensuring environmentally sustainable mobil-ity. The European transport corridors are themain arteries of the continent’s integrating econ-omy which, passing through Hungary, enablethe active connection of the country and itsbusinesses to the international circulatory sys-tem.

AAnnyy cchhaannggee iinn tthhee eeccoonnoommiicc eennvviirroonnmmeennttentails consequences for transport. This inter-dependence demarcates the possibilities of anintegrated economic and transport policy. Eco-nomic forecasts and anticipated social changeshelp us identify required development goals,restructuring, and other measures in the trans-port sector.

Investing in Infrastructure development is thebest way to stimulate the economy. The alloca-tion of these funds is all-important for progressin any given region, particularly in agriculture,where success is highly dependent on transportinfrastructure. It is equally vital for the tourismindustry, whose needs must therefore be takeninto account in transport planning.


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In modern societies, transport-related ex-penses make up 13-18% of household in-comes, and they figure highly in nationalbudgets. After World War II, economicallyadvanced countries spent 2-2.5% (some asmuch as 3-3.5%) of the GDP investing intransport and telecommunications. During theconstruction of the basic infrastructure, trans-port investments have swallowed (and con-tinue to swallow) 1.3-2% to 2.5-3% of theGDP. Examining the investment volumes from1985 to 1994 and their ratio to 1994 GDPfigures in 14 member states of the EU–with

the single exception of Greece–we find that,during that decade, transport investments in 12member states increased by 45%. In the 14countries, the ratio of investments in railwaysand roads to the GDP was 1.1% in 1994; in1996, the 15-nation average of transport invest-ments accounted for 1.1% of the GDP.

IInn tthhee eeaarrllyy 11999900’’ss,, HHuunnggaarryy spent an annualaverage of 00..55--00..66%% ooff iittss GGDDPP investing intransport. This ratio began to climb between1998 and 2001.

1998 1999 2000 2001Total investment as a percentage of the GDP 14,1 16,3 18,8 20,7Transport investment as a percentage of total investments 8,2 6,3 6,1 6,1Transport investment as a percentage of the GDP 1,15 1,03 1,14 1,26

Source: GKM Transport, post and water management statistics, 2001.

To implement transport policy, it is necessaryto create a predictable and pro-investmentfinancing system for the operation, mainte-nance, and development of transportbranches.

Before and since Hungary’s accession to theEU, the ISPA and, respectively, the EU Cohe-sion Fund and Structural Fund have assistedHungarian transport modernization by non-repayable support, on condition of matchingdomestic allocations.

II..11..33.. CCOOMMPPEETTIITTIIOONN IINN TTHHEE TTRRAANNSSPPOORRTT

MMAARRKKEETT

In the course of the socio-economic transfor-mation since 1990, Hungary’s transport sys-tem has undergone major changes.

Carriage of goods by road is now fully privatized,with small and micro businesses dominating thesector. The vehicle fleet and professional exper-tise of international carriers operating out ofHungary are on a par with those of the EUcounterparts.

Regular passenger transport by road meetsinternational standards in terms of network den-sity and service frequency, but revenues fall farbehind those western competition.

Local regulations and the adoption of Commu-nity laws define the framework in which the spe-cific attributes of individual transport categories,pricing policies, subsidies, benefits, operationrequirements and other measures contribute toEU-conform market conditions. In the area oftransport, particularly passenger services, theEU clearly favors rreegguullaatteedd ccoommppeettiittiioonn..

1 Közlekedéspolitika a 21. Század elején [Transport policy in the early 21st century], KTI – 2001.2 EU Energy and Transport in Figures. Statistical Pocketbook, 2001.

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The satisfactory saturation and repair of theinfrastructure, along with the quality of trans-port services, improves the competitive edgeof the production sector, especially agricul-ture, and the tourism industry.

II..11..44.. PPUUBBLLIICC SSEERRVVIICCEESS

TThhee nnaattiioonnaall aanndd llooccaall ggoovveerrnnmmeennttss areresponsible for ensuring the smooth operationof public passenger transport services.

Public passenger transport relies on sched-uled services of the appropriate frequency tomeet the population’s travel needs, accom-modating the demands of various lifestyles.

These daily needs include travel

• to and from school and work;• from the peripheries to economic,

administrative and service centers;• to access health and social services;• to take care of official matters.

Access by travel is especially important

• between larger settlements and thecapital;

• for connecting settlements withoutrailway to the nearest station byscheduled transfer.

Travel safety for the handicapped must beensured by eliminating obstacles from theinfrastructure and/or by special door-to-doorservices.

The quality and quantity standards of publicpassenger service (timetables, routes, andhours of operation) are set by the assignedunit of public administration based on thedeliberation of the residents’ demands andfinancial means. (Under the present distribu-tion of duties, intercity travel is the responsi-bility of the national government, while thelocal governments manage local passengerservices.)

In the area of the transport infrastructure, wemust enable each community to reach the

regional center without unreasonable detours,and ensure public sidewalks and paved roads toaccess all licensed properties in residential orresort belts by foot or passenger car. Regionalcenters are connected by a freeway/expresswaynetwork (catchment areas are shown in the ac-cess illustrations below). Access to smaller re-gional centers is provided by lower tiers of theroad network, such as main roads and regionalsecondary roads.

In our established policy, the government allo-cates funds from the annual budget via severalchannels to support local and intercity commu-nal transport. The government also providesannual production support for MÁV, the Hun-garian State Railways, periodically restructuresthe company’s losses, and finances its invest-ments of national significance. In the area ofroad transport, the Volán bus companies havereceived support from the state in revitalizingtheir fleets. Passenger support includes subsi-dies for discount passes for students and seniorcitizens and discount tickets for a variety of pre-ferred groups, in both local and intercity rela-


tions. This system of consumer price subsidyneeds to be streamlined.

Public transport development and fare policymust be designed with a view to the social

function of public service and its significance ineveryday life, the preservation of local commu-nities, the advancement of regions, and the as-surance of equal opportunity.

LEGENDFreewayExpressway15 – minutecatchment area20 – minutecatchment areaCities of Hungary

1155 aanndd 3300 mmiinnuuttee ccaattcchhmmeenntt aarreeaass ooff tthhee ffrreeeewwaayy ssyysstteemm iinn 22000022


LEGENDExisting free-way/expresswayFreeway/expressway tobe constructed by 200615 – minute catchmentarea20 – minute catchmentareaCities of Hungary

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II..22.. OOBBJJEECCTTIIVVEESS AANNDD SSTTRRAATTEEGGIICC GGOOAALLSS

II..22..11.. TTOOPP PPRRIIOORRIITTYY OOBBJJEECCTTIIVVEESS

The EEuurrooppeeaann UUnniioonn’’ss nneeww ttrraannssppoorrtt ppooll--iiccyy,, iissssuueedd iinn 220000113 aims at creating a bal-anced transport system that is sustainablesocially, economically, and environmentally.Additional objectives include the integration ofcandidate countries and better access to theperipheral regions of the continent via thePan-European Transport Network.

As the main priorities of its transport policy,the European Union seeks to

• correct regional disparities;• clear bottlenecks;• reduce congestion;• shift the balance between transport

modes;

• give a new place to users, at thetransport policy;

• manage the effects of transpoization.

In Hungary, transport services and thethe infrastructure often diverge from tpean norm, but the nature of the chasimilar, especially in the long term. Thisboth enables and forces Hungary to adaEU’s transport policy.

HHuunnggaarriiaann ttrraannssppoorrtt ppoolliiccyy has idenobjective of creating a transport systemeconomically efficient, modern, safe, aon the environment.

3 White Book European transport policy for 2010: time to decide


LEGENDExisting free-way/expresswayFreeway/expressway tobe constructed by 200515 – minute catchmentarea20 – minute catchmentareaCities of Hungary

heart of

rt global-

state ofhe Euro-llenge is situationpt to the

tified the that is

nd easy


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The implementation of the transport policy,including the improvement of system effi-ciency and international interface, is an es-sential condition for the country’s lloonngg--tteerrmmeeccoonnoommiicc ggrroowwtthh.. The quality and level ofdevelopment of the transport system influ-ences the country’s ability to function properlyand defend itself. As a tool of economic pol-icy, the transport policy serves sectoral poli-cies, particularly those of tourism and regionaldevelopment, by aiming to provide the re-quired infrastructure and services. The trans-port infrastructure plays a central role in ac-cessing markets for the commodities pro-duced. As a result, its state of evolution andthe quality and quantity of services conducted

through it greatly influences the competitivenessof the production sector. The territorial distribu-tion of production, the equalization of regions,cross-border cooperation, and integration in theEuropean Union all benefit from a high-performance infrastructure of the appropriatedensity and condition, and modern vehiclefleets.

Transport also has a direct impact on lliivviinnggssttaannddaarrddss bbyy linking various aspects of life (in-cluding residence, work, education, services,recreation, and tourism) in space and time,thereby fulfilling a vital socio-political role. Theincorporation of the interests of tourism alsoserves to improve the quality of life.

TThhee ccoouunnttrriieess ooff tthhee PPaann--EEuurrooppeeaann TTrraannssppoorrtt NNeettwwoorrkk

Countries

Countries

Corridors

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The social, economic and ecological effects oftransport cannot be separated from one an-other. All three aspects must be given equalconsideration in designing transport policy,development, and regulation. The principlesof ssuussttaaiinnaabbllee mmoobbiilliittyy demand an optimalbalance between economic, social and eco-logical efforts, particularly through the en-forcement of environmental interests bymaintaining the portion of environmentallyfriendly modes, safeguarding public health,and minimizing the area claims of new in-vestment.

The pprrooggrreessssiivvee iimmpplleemmeennttaattiioonn ooff tthheettrraannssppoorrtt ppoolliiccyy will bring about, bbyy 22001155,the transport system Hungary needs to exploitits geopolitical position and preserve its com-petitiveness. The most significant elements ofthis policy are the following:

11.. General eelleemmeennttss ooff tthhee ttrraannssppoorrtt ppooll--iiccyy,, which take precedence and are com-patible with the EU’s transport policy pri-orities:

• Expand the Pan-European Network inHungary by developing the domesticfreeway system from border to borderto meet the increasing demands oftransit traffic and relieve stress on thecapital, at once enabling greater useof EU funds;

• coordinate transport modes (rail,road, water, and air) with a view tosustainable development;

• iimmpprroovvee ttrraannssppoorrtt ssaaffeettyy;• mmiinniimmiizzee eennvviirroonnmmeennttaall ddaammaaggee

(caused by emissions contributing tothe greenhouse effect, solids, as wellas noise and vibration) and protectnatural and landscape assets whiledeveloping and maintaining transportinfrastructure;

• introduce a standardized EEUU--ccoonnffoorrmm system for transport ttaarriiffffss,,ffeeeess, benefits and revenue subsidies,along with up-to-date telematic solu-tions for fee collection and integratedticketing;

• increase incomes of transport sectoreemmppllooyyeeeess, improve work conditions,and offer training in modern skills.

22.. Top-priority development projects until 22000066

• As part of the Pan-European Network,gradually construct ffrreeeewwaayy ssyysstteemmreaching from border to border North toSouth and East to West, so as to relievestress on the capital and enable opti-mum access from neighboring regions;

• The freeway construction should gohand in hand with the development of ahigh-capacity data transmission networkthat will enable operative, telecommuni-cation, in the future electronic toll collec-tion, network management and moni-toring functions on state-owned free-ways, as well as the provision of otherservices for a fee;

• Progressively construct freeway ringaround the capital, with aa bbrriiddggee oovveerrtthhee DDaannuubbee nnoorrtthh ooff tthhee cciittyy aanndd aann--ootthheerr aatt DDuunnaaúújjvváárrooss, to relieve stresson Budapest and improve regional con-nections;

• DDeevveelloopp rraaiillwwaayy bbaacckkbboonnee nneettwwoorrkkwith domestic and international trunkroutes as part of the standardized Euro-pean railway system, in order to reclaimHungary’s traditional role as a transitcorridor, and to enable high-speed railconnection to other member states;

• Develop suburban railway transport,starting with the replacement of currentvehicle fleet, as a means of significantlyreducing car traffic in inner city areas,thus cutting down on harmful emissions;

• Ensure modern passenger transport ofhigh standards locally and in intercityrelations, as the first step introducing anew pass system enabling passengersto switch between operators in thecapital and its vicinity (Budapest Trans-port Alliance).

33.. Additional development projects of priorityuunnttiill 22001155

• Construct North-South corridor travers-ing West Transdanubia, particularly theM9 freeway and the M86 expressway,and the Vienna-Graz railroad via theHungarian towns of Sopron and Szom-bathely.


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• Develop llooggiissttiiccss sseerrvviiccee cceenntteerrssaanndd iinntteerrmmooddaall sshhiippppiinngg tteerrmmiinnaallssto enable greater reliance on envi-ronment-friendly goods transport.

• In international collaboration, developthe appropriate wwaatteerrwwaayy on theHungarian section of the Danube,along with the basic infrastructure ofnnaattiioonnaall ppuubblliicc ppoorrttss.

• Develop iinntteerrnnaattiioonnaall aaiirrppoorrttss ooffrreeggiioonnaall ssiiggnniiffiiccaannccee..

• Continue developing air traffic serv-ices, improve aaiirrssppaaccee sseeccuurriittyy, andharmonize aaiirr ttrraaffffiicc ccoonnttrrooll systemsand procedures with EU norms.

• Set up mmooddeerrnn vveehhiiccllee fflleeeett meetingthe latest requirements, includinghandicapped access.

• Introduce iinntteelllliiggeenntt ttrraannssppoorrtt ssyyss--tteemmss enabling the more efficient useof transport routes and services.

• Expand the capacity and servicesavailable at the BBuuddaappeesstt FFeerriihheeggyyIInntteerrnnaattiioonnaall AAiirrppoorrtt (BFNR) andconstruct high-speed railway linking itto the city.

II..22..22.. SSTTRRAATTEEGGIICC GGOOAALLSS

TThhee ccuurrrreenntt ssttrraatteeggiicc ggooaallss aarree eesssseennttiiaallllyytthhee ssaammee aass tthhoossee ooff tthhee ttrraannssppoorrtt ppoolliiccyyaaddoopptteedd iinn 11999966, namely to

• improve the quality of life, preservehealth, reduce regional differences,increase transport safety, and protectthe natural and man-made environ-ment;

• promote successful integration withinthe European Union;

• improve and broaden relations withneighboring countries;

• assist with regional development;• enable efficient operation and main-

tenance through regulated competi-tion.

TThhee ssttrraatteeggiicc ggooaallss ooff improving the qualityof life, preserving health, reducing regionaldifferences, increasing transport safety, andprotecting the environment presuppose the

following tasks: foregrounding security consid-erations in capacity enlargement; construction ofbypass roads around settlements for safety andmobility; reconstruction of dangerous sectionsand intersections; monitoring the safety per-formance of new road already in the planningphase; developing residential and service roads;the safety-conscious expansion of bicycle roads.We need to encourage modern and environ-ment-friendly vehicles, technologies, and towingmethods (multimodal goods transport, publicpassenger transport, transport alliances) and tostop, or at least slow down, the deterioration ofrail and water transport performance. We mustmake public transport a more attractive optionby improving quality, modernize signaling andsafety equipment, and promote the applicationof intelligent systems and information technol-ogy. We must aid the handicapped by removingobstacles from the transport infrastructure.

AAss ppaarrtt ooff oouurr ssuucccceessssffuull iinntteeggrraattiioonn iinn tthheeEEuurrooppeeaann UUnniioonn, we must modernize freeways,trunk railway lines, national public ports, centraland regional airports, and multimodal logisticscenters in the Hungarian territory of Pan-European corridors. We must increase the load-bearing capacity of trunk roads and bridges ex-posed to the greatest stress by goods transport,to support 115 kN/axle, the maximum load al-lowed in the European Union. To boost the prof-itability of goods transport by rail, we mustgradually increase the load capacity of trunklines from 200 to 225 kN/axle. We must achievelevel VI construction on the Danube (interna-tional corridor VI) which implies guaranteeing adraught (navigable depth) of 2.5 m 300 days ayear.

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IInn tthhee ccoonntteexxtt ooff iimmpprroovveedd ccooooppeerraattiioonnwwiitthh nneeiigghhbboorriinngg ccoouunnttrriieess, we will con-struct external border crossing points meetingSchengen criteria, modernize transport routesleading to those crossing points, increase thefrequency of cross-border transfer connec-tions, build regional airports, and build free-ways north to south and east to west.

TThhee ggooaallss ooff rreeggiioonnaall ddeevveellooppmmeenntt willrequire the modernization of the national roadnetwork, regional and community roads, andcertain peripheral community roads managedby local governments. We need to build themissing road sections linking up cul-de-sacvillages, ensure access to minor regionalcenters, and construct more bridges. We mustimprove the standards of public passengertransport, national and local, and pave theway tpward a sustainable urban mobility.

FFoorr eeffffiicciieenntt ooppeerraattiioonn aanndd mmaaiinntteennaannccee,we must create and enable the legal, institu-tional, monitoring and loss-financing back-ground of EU-compatible market regulation.We need to streamline fare and toll mecha-

nisms and the system of travel discounts, bene-fits, and revenue support.

Infrastructure development programs must becoordinated with other programs of regionaldevelopment, other sectors of the nationaleconomy, and all applicable statutory require-ments, with special regard for strategic and mid-term tasks identified by the Hungarian Informa-tion Society Strategy as well as short-term ac-tion plans. This will include planning for the re-quired budget resources.

As a cornerstone of the transport policy, wemust accomplish the transport goals set by theNational Development Plan (NTF), which de-lineates the conditions for receiving supportunder the Cohesion Fund Master Strategy andthe Structural Funds. As part of the NFT, proj-ects running under the Environmental and Infra-structure Operative Program (KIOP) and theRegional Operative Program (ROP) between2004 and 2006 will supplement investmentssupported by the Cohesion Fund.

RRooaadd nneettwwoorrkk ttoo bbee ddeevveellooppeedd ffoorr 1111..55 ttoonn //aaxxllee llooaadd

Designatedroad network

Priority Set-tlement


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II..33.. IINNSSTTIITTUUTTIIOONNSS AANNDD RREEGGUULLAATTIIOONN

The principles of privatization and subsidiaritytransform the ownership role of the state intransport as in other sectors, to the effect ofrendering its responsibilities clear and unam-biguous. State-owned business organizationswill be required to divorce owner-ship/management functions from regulatoryones (unbundling).

The state will hold on to its leading role in:

• the development, maintenance, andoperation of the national transportgrid;

• coordinating transport infrastructuredevelopment with regional develop-ment;

• harmonizing development policies forindividual transport modes and regu-lating competition;

• the regulation, professional manage-ment, supervision, operation andloss-financing of public passengertransport;

• the regulation and supervision of en-vironmental protection, transportsafety, public road transport services,and the transportation of hazardousmaterials;

• ensuring the defense-readiness of thetransport grid;

• overseeing transport research anddevelopment;

• regulating fare and fee policies in amarket environment characterized bycompetition;

• in legislation. including the adoptionof Community laws;

• reorganizing and modernizing the in-stitutional system and corporationsfulfilling government functions;

• the implementation and regulation oftelematic solutions for organizational,technical and subsidy-accounting

needs arising from compatibility re-quirements under the Hungarian Infor-mation Society Strategy.

Public roads, railways, national or trunk net-works and their intersection elements will remainthe permanent property of the state. Certainelements of the infrastructure may and must berelinquished for operation to the private sector ifprivatization does not jeopardize public serviceand access free of discrimination.

The comprehensive revitalization of transport,necessitated by its social, economic and eco-logical role, will rely heavily on the state’s effortsto organize capital. As part of this function, thestate examines ways to involve private capital intransport development and operation, for in-stance through bond issue, co-financing, andPublic-Private Partnership.

The state has an increasing role in the field ofregulation.

• It is vital to determine and enforce ssttaann--ddaarrddiizzeedd ccrriitteerriiaa for the technical con-figuration, maintenance, and operationof public transport infrastructure ownedby the state and local governments, inorder to project to users the image of auniform network.

• The creation, enforcement, and sanctionof the rules governing controlled, regu-lated competition is the function of thestate. Left to its own resources, a liber-alized market cannot respond to everyinstance of imbalance or disturbance. Inthe area of transport–particularly in pub-lic transport, where most providers fulfillthe service obligations of the publicsector–it is necessary that the stateregulate and monitor tthhee tteerrmmss ooffccoommppeettiittiioonn,, aacccceessss ttoo pprrooffeessssiioonnaall

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ttrraaiinniinngg,, aanndd mmaarrkkeett aaccqquuiissiittiioonn(through public service contracts andloss financing).

The administrative tasks of legal applicationmust be shouldered by central and regionalgovernment agencies–notably the transportinspectorates–taking into consideration theofficial duties in the field of air transport.

Beside applying the law as an agency of thegovernment, the transport authority also fulfillsa vital function bbyy eennffoorrcciinngg aanndd mmoonniittoorriinnggccoommpplliiaannccee. Especially in this area of super-vision, the importance of the authority willcontinue to grow in the fold of the EuropeanUnion, requiring us to adjust its technicalbackground, organization, and financing to fitthis new role.

Among other measures aimed at improvingthe safety of transport on public roads, ofspecial importance is the promotion of volun-tary compliance with traffic regulations andthe proper operation of tools serving this pur-pose, including training, prevention, andmonitoring. This complex task requires effi-cient collaboration between the police and thetransport authority. The traffic department ofthe police must be given special emphasis tobe able to contribute to an improved quality oflife, and monitoring agencies must be pre-pared for the extra workload presented byinfrastructure development.

In order to eennaabbllee ssccrriimmiinnaattiioonn--ffrreeee ccoommppee--ttiittiioonn and meet EU requirements, capacityand slot allocations for railway and air trans-port will be administered by an independenttrack management organization and, respec-tively, by HungaroControl, the Hungarian AirNavigation Service split off of LRI, the AirTraffic and Airport Administration.

The institutions of the transport authority andthe branch operators must be prepared todeal with potential reorganization of tasks andresponsibilities in central, mid-level, and localadministration with respect to transport politi-

cal, ownership and official licenses and serviceliabilities.

Following the completion of the administrativeand legislative process whereby HHuunnggaarryy’’ssrreeggiioonnss aarree ssttrreennggtthheenneedd, the ownershipand/or management, development, mainte-nance, and operation of some of the transportinfrastructure, such as regional roads and rail-way lines, along with the bulk of public serviceresponsibilities, will be assigned to regional andlocal administration. This means that the discre-tion over some of the central transport alloca-tions will be ddeelleeggaatteedd ttoo tthhee rreeggiioonnaall aannddllooccaall lleevveell, particularly in respect of the devel-opment of local railway lines, roads, and bicycleroads, the modes, frequency and quality of pub-lic passenger transport, and the rate of fare sub-sidies and revenue support. As a main priority,we will have to prevent a temporary crash thatcould occur if the private or regional system isnot yet up and running reliably by the time thestate has withdrawn.

The rising solvency of the traveling public andshipping companies will enable the progressiveintroduction of the ““uusseerr ppaayy”” pprriinncciippllee,whereby fares and fees will gradually approachactual transport costs. However, the effect ofthis change will only be felt in the longer term.

Under a new draft replacing Council Regulation1191/69, the public service obligation will bereplaced by a system of public service liabilities,while the imposition of the obligation will be su-perseded by a public service contract. The con-tract awarded by the authority to the providerwith the winning bid will guarantee public serviceand the provider’s exclusive rights for certainfunctions for a specific period of time. The na-tional or local government is liable to compen-sate the provider for obligatory expenses notcovered by revenues. This method of regulatingcompetition guarantees rising quality standards,better efficiency, and discrimination-free accessto markets. In the field of domestic ppuubblliicc ppaass--sseennggeerr sseerrvviiccee (scheduled public serviceswithin the territory of Hungary) the state and thelocal governments will remain actively involvedas providers. As a rule of thumb, it is unfeasible


13

to make the traveling public pay for the fullactual costs of public transport. In fact, coun-tries with much higher living standards thanHungary have refrained from enforcing theseactual costs in their transport fares. IItt iiss iimm--ppeerraattiivvee ttoo mmaakkee tthhee ffiinnaanncciinngg ooff ppuubblliiccttrraannssppoorrtt ttrraannssppaarreenntt aanndd ffuullllyy ccoonnttrroollllaa--bbllee,, rreegguullaattiinngg ttaarriiffffss ssoo tthhaatt tthhee aaccttuuaallpprriiccee iiss ffuullllyy ccoovveerreedd bbyy tthhee ccoommbbiinnaattiioonnooff ffaarreess ppaaiidd bbyy tthhee ttrraavveelliinngg ppuubblliicc aannddtthhee rreevveennuuee ccoommppeennssaattiioonn ddiissbbuurrsseedd bbyytthhee ssttaattee oorr llooccaall ggoovveerrnnmmeenntt. In turn, theactual price must cover the documented costsof a prudently managed company plus rea-sonable profits allowing for continued devel-opment. UUnnddeerr tthhee tteerrmmss ooff rreegguullaatteeddccoommppeettiittiioonn,, tthhee ppuubblliicc ppaasssseennggeerr sseerrvviicceemmaarrkkeett wwiillll ooppeenn uupp ttoo nneeww eennttiittiieess,, iinn--cclluuddiinngg pprroovviiddeerrss ffrroomm ootthheerr mmeemmbbeerrssttaatteess..

In public service, tthhee ssttaattee iiss aallssoo lliiaabbllee ttooccoommppeennssaattee pprroovviiddeerrss ffoorr lloosssseess iinnccuurrrreeddtthhrroouugghh ssoocciiaall--ttyyppee bbeenneeffiittss eexxtteennddeedd ttoocceerrttaaiinn ppaasssseennggeerr ggrroouuppss. However, marketprinciples demand that all such subsidies andtrips made using such support be kept onrecord by an iinntteelllliiggeenntt ttiicckkeettiinngg ssyysstteemm,,soon to be developed. The officially regulatedprices and travel benefits must be standard-ized for all emerging transport alliances.

TThhee ffeeeess ccoolllleecctteedd ffoorr tthhee uussee ooff rrooaaddss aannddttrraacckkss wwiillll ggrraadduuaallllyy mmeeeett tthhee aaccttuuaall ccoossttssooff mmaaiinntteennaannccee,, ooppeerraattiioonn,, aanndd rreennoovvaattiioonn..The use of ports and airports will be subject tofees as dictated by market forces and similarcharges in neighboring countries. Users of theHungarian airspace and air services will pay acost-based fee tracking changes in the inter-national accounting protocol.

The content and affordability of public roadtolls will be applied equally to the current de-cal system and the electronic, performance-based toll system to be introduced in the longterm.

14

II. THE TRANSPORT DEVELOPMENT PROGRAM

IIII..11.. MMOODDEERRNN TTRRAANNSSPPOORRTT AANNDD IIMMPPRROOVVEEDD SSEERRVVIICCEESS

Transport has a very direct influence on peo-ple’s lives, shaping interpersonal relations, theeconomy, security, the environment, as well aseducational and cultural opportunities. Whentransport does not function properly, it disruptspeople’s lives and damages the economy. Bythe same token, a transport system that is safe,efficient, and environment-friendly contributesto human freedom, well-being, and the protec-tion of the environment.

Reconceived to better meet social and eco-nomic demand, HHuunnggaarryy’’ss ttrraannssppoorrtt ssyysstteemmwwiillll hhaavvee ttoo eennssuurree

• ssuussttaaiinnaabbllee ddeevveellooppmmeenntt and theprotection of the land, including boththe natural and the man-made envi-ronment;

• enhanced ttrraannssppoorrtt ssaaffeettyy,• strengthened ddeeffeennssee ccaappaabbiilliittyy and

response to natural disasters;• hhiigghh sseerrvviiccee ssttaannddaarrddss, including re-

liability, safety, and accuracy;• eeffffiicciieenntt eexxppllooiittaattiioonn ooff eexxiissttiinngg

roads, intersections and other networkelements;

• the ccoonnssttrruuccttiioonn ooff llaacckkiinngg iinnffrraa--ssttrruuccttuurree and the elimination of bottle-necks;

• a ffiinnaanncciinngg ssyysstteemm satisfying the re-quirements of transport operation,maintenance, and development;

• ccoommppeettiittiivveenneessss and efficiency on thenational and international level;

• the application of pprrooffeessssiioonnaall eexxppeerr--ttiissee and highly evolved technology.

IIII..11..11.. SSUUSSTTAAIINNAABBLLEE GGRROOWWTTHH

Mobility is an indispensable condition for aproperly functioning economy and society thathas a direct impact on the quality of life. Evenas it allows people to generate and accessgoods and services, its operation often entailsnegative consequences for the environment. Akey tool in the hands of any government inpower, ttrraannssppoorrtt ppoolliiccyy sseerrvveess ttoo ffoorrggee aabbaallaannccee between the demand for mobility andthe needs of the environment, without impairingeither of these fundamental values.

Transport systems practically affect every ele-ment of the environment, and play a lesser orgreater role in any harmful environmental influ-ence. Nevertheless, pollution rates and thecontribution of transport vary significantly re-gion by region, but air and noise pollution bytransport tend to be decisive. By contrast,transport generates barely 2% of the totalwaste in Hungary, and not more than 5% of thetotal production of hazardous waste. The pollu-tion of waters due to transport is of a similarmagnitude, while infrastructure constructionand operation cause greater environmentaldamage. Beyond their sheer territorial en-croachment, high-traffic arteries disrupt andfragment wildlife habitats, potentially posingserious threats to biodiversity.

More indirect negative influences can resultfrom the rapid building up of tracts along free-ways and expressways, a tendency alreadynoted and certainly expected to continue asnew infrastructure construction is completed.

In the area of aaiirr ppoolllluuttiioonn the vehicle devel-opment that started in the 1990’s and has ad-


15

vanced at great strides has eliminated or mini-mized carbon-monoxide, hydrocarbon and leademissions, leading to a situation in which we“only” have three challenges to meet over thenext 10-15 years:

• The global problem presented by the emis-sion of greenhouse-effect gases, particu-larly carbon-dioxide, of which transport inEU countries accounts for some 25-30%(15% in Hungary) and its contribution con-tinues to grow.

• The regional and, in part, local problem ofnitrogen emissions, which also displays amildly rising tendency.

• The local, especially urban, health hazardcaused by emissions of NOx (with transportaccounting for about 55 % of the totalemission), ultra-fine particles (PM2,5 – solidparticles smaller than 2,5 µm), and a fewother substances (PAH’s, aldehydes, N2O,dioxins etc.) that are not regulated by limitvalues at present.

In developed countries, accomplishments inthe fight against air pollution have directedattention to hazards posed by transport noise.Currently, the state of nnooiissee ppoolllluuttiioonn in Hun-gary can be characterized as follows.

• Within the city limits of Budapest, there are51 main roads considered to have espe-cially high noise levels under EU classifica-tions, with daytime and nighttime pressurelevels of 71-77 dB and 66-72 dB, respec-tively.

• Tests along primary and secondary high-ways and freeways have identified 48 in-tersections and zones where noise levelsexceed the acceptable maximum of 65/55dB (day/night) by 5/10 dB. To make thingsworse, these happen to be densely popu-lated areas.

• The situation is more favorable with rail-ways, where trunk lines conducting heavygoods traffic measure 57-66 dB in popu-lated areas, but people will sense this levelas subjectively lower due to the spectralcharacteristics of the specific noise typeemitted. Judging from residential com-plaints, railway transport is apparently re-

sponsible for one tenth of the total noisepollution.

• Special sources of noise include air trafficand recreational water vehicles. Despitethe fact that aircraft with quieter engineshave been gaining ground, the vicinities ofmajor airports continue to suffer fromgreater noise stress due to increased trafficvolumes.

TThhee ccoonnssttrruuccttiioonn ooff llaacckkiinngg iinnffrraassttrruuccttuurree isa top priority of the transport policy.

Expanding transport networks enable the freemovement of people, goods, and services, andlink people, cities, and countries, but they alsocarve up natural habitats. As a sign of the newappreciation for the environment, nature acre-age under protection in Hungary will continueto grow (from 9% of the country’s territory to-day to 11% projected by 2008 under the Na-tional Environmental Plan) and there are plansto develop the National Ecological Network tohelp preserve biodiversity. Through carefulplanning, minimizing the area needed for theimplementation and maintenance of new in-stallations, and the application of a wide rangeof conservation tools, it is possible and impera-tive to simultaneously uphold the interests ofsociety, the economy, and the environment.

Transport policy provides a context for mini-mizing environmental damage, integrates envi-ronmental considerations, and sponsors spe-cial environmental programs toward establish-ing a sustainable transport system.4

The transport policy proposes to use the fol-lowing ttoooollss ffoorr ssuussttaaiinnaabbllee ggrroowwtthh::

• The past decades have been characterizedby the steady climb of passenger andgoods transport volumes in tandem withGDP growth (in fact, passenger traffic hasgrown at a rate somewhat over that of theGDP, while goods transport a little belowit). It is now our overarching economic goal

4 The document entitled “A long-term strategy andaction plan for environment-friendly transport andinfrastructure development” defines specific envi-ronmental measures as a token for sustainablegrowth.

16

to sseeppaarraattee tthhee GGDDPP ffrroomm ttrraannssppoorrtt vvooll--uummeess, by the efficient management of realtransport needs. Obviously, the purpose isnot to rein in mobility but to eliminate“irrational” travel and goods shipping byvarious means, including those of influ-encing settlement and regional develop-ment, trends in tourism, and the applicationof information technology, telematic solu-tions, logistics, industry and trade policy,and economic measures.

• In its transport policy, the EU has set thegoal of attaining a beneficial balance be-tween transport modes as the cornerstoneof sustainable development. As part of thiseffort, the EU seeks to halt and eventuallyreverse the spontaneous increase of thereliance on road transport, through a seriesof long-term measures, most notably theintroduction of a new financing system andfare/toll policy. The division of labor be-tween transport modes in Hungary di-verges from that in EU countries. In Hun-gary, a smaller portion of the total trans-port, both passenger and freight, is con-ducted by road, but this tendency ischanging in a way that has negative impli-cations for the environment. We must in-tervene to make sure that the ratio of mul-timodal transport does not drop too sharplyeven with the implementation of major roaddevelopment plans (see Tables 1 and 2).Realistically, the increase in the number of

cars projected until 2015 limits our plans tomerely sslloowwiinngg ddoowwnn tthhee ppaaccee ooff ggrroowwtthhooff ttrraannssppoorrtt bbyy rrooaadd.

• Preference for environment-friendly modesby developing ccoommbbiinneedd sshhiippppiinngg ccaappaa--bbiilliittiieess.. By creating service centers atcombined freight terminals, Hungary in-tends to become part of the European lo-gistics network, also as a means to im-prove the positions of domestic industry,commerce, and agriculture. These centerswill be instrumental in diverting traffic fromthe roads to the rails and waterways, as-sisting us in reducing environmental dam-age and buffer unfavorable trends in intra-sector distribution.

• Maintain the current sshhaarree ooff ppuubblliiccttrraannssppoorrtt, modernizing assets, equipment,and infrastructure, and raising servicestandards in order to improve the chancesof non-motorized transport.

• Introduce technical and economic meas-ures directly targeting tthhee rreedduuccttiioonn ooffppoolllluuttaanntt eemmiissssiioonnss; modernize vehiclefleets to meet progressively adopted EUemission norms; improve fuel quality byencouraging alternative energy carriersand programs supporting the replacementof an aging vehicle fleet.


17

Table 1CChhaannggeess iinn ttrraannssppoorrtt ppeerrffoorrmmaannccee aanndd mmooddaall sspplliitt iinn tthhee EEuurrooppeeaann UUnniioonn

Share of modes % Percentage growth1990-1998-2010 1998-2010

1990 1998 2010T1

2010T2

2010T3

2010T1

2010T2

2010T3

Passenger transportcar 78 79 78 71 77 23 12 21bus, car, tram, metro 11 10 8 14 9 6 80 21rail 7 6 6 9 7 13 74 38air 4 5 8 6 7 90 55 69total 100 100 100 100 100 24 24 24Goods transportroad 68 75 78 66 75 50 18 38rail 19 13 12 18 13 13 60 38inland water 8 7 5 11 7 14 101 38pipeline 5 5 5 5 5 15 13 15total 100 100 100 100 100 38 38 38Scenarios:T1 = liberal transport policy; T2 = stringent, pro-environment transport policy; T3 = realistic transport policy(Source: EU White Book 2001)

Table 2CChhaannggeess iinn ttrraannssppoorrtt ppeerrffoorrmmaannccee aanndd mmooddaall sspplliitt iinn HHuunnggaarryy

(performance figures calculated in passenger kilometers and goods-ton kilometers)

Distribution ratios %1990-2000-2015

Percentage growth1990-2015

1990 2000 2015I

2015II

2015III

2015I

2015II

2015III

Passenger transportcar 58 60 70 61 64 50 43 45bus 27 26 16 20 19 24 30 28rail 13 11 8 12 9 25 38 28air 2 3 6 7 8 120 140 150total 100 100 100 100 100 31 31 31Goods transportroad 39 57 65 58 60 60 54 57rail 43 24 20 23 22 16 19 18inland water 5 4 4 7 6 27 48 39pipeline 13 15 11 12 12 29 32 33total 100 100 100 1001 100 28 28 28

Scenario I: Extrapolated from the tendency of the past 15 years, assuming a GDP growth of 4.5%.Scenario II: The radical version, building on the assumption that the share in the total of environment-friendlytransport modes will increase dramatically for the same rate of GDP and mobility growth.Scenario III: The realistic version, aiming to stabilize the modal split near 2000 ratios while slowing the pace ofgrowth that has characterized transport by road.(Source: KTI Rt. – Institution for Transport Sciences)

18

• IInnccrreeaassiinngg tthhee eexxiissttiinngg iinnffrraassttrruuccttuurreeccaappaacciittyy aanndd rraattee ooff eexxppllooiittaattiioonn usingthe tools of electronics, information tech-nology, logistics, intelligent transport sys-tems, trans-border passenger information,infocommunications, and organization ofgoods transport.

• EEnnvviirroonnmmeenntt--ffrriieennddllyy iinnffrraassttrruuccttuurreeddeevveellooppmmeenntt mindful of natural assetsand landscapes, as well as quality re-quirements and integration with EU net-works. (Development of freeways and ex-pressways, bypass and other publicroads, railways, ports, waterways, andairports.)

• Publicly posting regular iinnffoorrmmaattiioonn onthe effects of transport on the environ-ment, the costs of damage control, andthe results of implemented measures, insuch a way as to call attention to individ-ual responsibility and rally support for en-vironmental considerations and measuresto be incorporated in daily practice.

Some of the measures listed above demandan independent program. We need to marshalsufficient financing by the progressive broad-ening of the “ppoolllluutteerr ppaayy" and "uusseerr ppaayy"pprriinncciipplleess, giving due expression to the valueof natural resources used by transport, andrelieving society of the burden to pay for ex-ternal costs.

IIII..11..22.. TTRRAANNSSPPOORRTT SSAAFFEETTYY

As a result of government efforts and socialsolidarity embodied in the National Programfor Transport Safety, the 1990’s in Hungarysaw a significant drop in the number of trafficinjuries and fatalities. This tendency halted in2001. Now the number of road accidents is onthe rise once again, demanding urgent inter-vention. Traffic accidents claim more than1400 lives and cause 100-120 billion forints inlosses in medical bills, missed income, andother damage.5

5 KTI figures, calculated by the Human Capitalmethod.

It is essential to reduce the number and severityof traffic accidents despite the growth of the carpark and shipping performance. Road transportcan only be really safe if roads, humans andvehicles form an organic whole developing inharmony with one another, commensurately withuser expectations and the capacities of the na-tional economy. The chief elements of the sys-tem are the following:

• network development;• more up-to-date traffic solutions;• safer vehicles;• education and training,• propaganda promoting safe, re-

sponsible and legitimate behavior;• participants enlightened to the im-

portance of transport safety;• fine-tuning regulations and efficient

monitoring of compliance;• implementation and maintenance of

efficient traffic control.

Purposeful development of these areas hastargeted tthhee rreedduuccttiioonn ooff ppeerrssoonnaall iinnjjuurriieessaanndd ffaattaalliittiieess bbyy aatt lleeaasstt 3300%% ffrroomm 22000011 ttoo22001100,, aanndd bbyy 5500%% uunnttiill 22001155––tthhee rraattee pprree--ssccrriibbeedd iinn tthhee EEUU WWhhiittee BBooookk..

If it is to be successful, the complex mission ofimproving transport safety requires not only thecommitment of each sector but broad-basedsocial support as well.


19

IIII..11..33.. NNAATTIIOONNAALL DDEEFFEENNSSEE CCAAPPAABBIILLIITTYY

An infrastructure network of the right qualityand density, along with the preparedness ofits control mechanisms, constitute vital ele-ments of national defense and disaster con-trol. Defense prowess is intimately related tothe ability of forces to move and relocatequickly and efficiently.

Collaborating with other authorities, transportagencies participate in the fight against ter-rorism and drug trade. The relevant securitysystems and technical equipment must beconstructed and coordinated so that theymeet the criteria stipulated for internal andexternal borders in the Schengen Treaty,thereby contributing to the security of travel-ers and the nation.

It is an important task, and an internationalobligation, to build up defenses against ter-rorist acts and illegitimate disruptions of theworking order of the transport system.

We also have an ongoing obligation to avertnatural catastrophes, assist with damagecontrol, and respond quickly to inevitableemergencies.

IIII..11..44.. RREELLIIAABBLLEE,, SSAAFFEE,, AANNDD AACCCCUURRAATTEE

SSEERRVVIICCEE BBAASSEEDD OONN UUPP--TTOO--DDAATTEE

TTEECCHHNNOOLLOOGGYY

The ongoing rejuvenation of Hungary’s vehi-cle park, domestic and international researchand development in the vehicle manufacturingindustry, and the gaining ground of intelligentinformation systems all contribute to improv-ing transport performance, safety and thequality of life.

• Information technology and telematicapplications claim an increasinglycentral role in the transport sector.The recent currency of telematic so-lutions in transport organization andtraffic control allows fewer traffic jams

and shorter journey times. The equip-ment of utility vehicles with on-boardcomputers and the application of satel-lite locator devices assist the exploita-tion of vehicle capacity, enable precisevehicle tracking, and increase safety.Advanced computer technology affordssophisticated passenger information.The new computerized management oftransport and business tasks boosts thecompetitiveness of Hungarian railwaycompanies. In navigation and air trans-port, the challenges of competition andinternational expectations will soon re-sult in the across-the-board applicationof electronic solutions in client informa-tion and identification, data processing,and a large-scale reliance on electronicair freight records and satellite naviga-tion devices.

• The construction and maintenance oftrack installations demand modern tech-nologies and a high level of automation.In road construction, preference is givento durable, noise-absorbing surfacingmaterials. The recycling of asphalt en-abled by these new technologies is be-coming a wide-spread practice of wastemanagement.

• In public road transport, the governmentmust assume a proactive role in sup-porting the replacement of obsolete, en-vironmentally stressful vehicles bymeans of benefits and tax incentives.

• The modernization of locomotives, theacquisition and introduction of efficientand environment-friendly railway vehi-cles, modern passenger train coaches,and special combination cars for goodstransport are ongoing priorities.

• The electrification of railway lines mustbe carried on in the context of the mid-term electrification program and pro-posal.

20

0

10

20

30

40

50

60

70

80

1980 1985 1990 1995 2000 2005 2010 2015

[Mrd

ukm

]

SzemélygépkocsiAutóbusz

Vasút/HÉVVillamos/metró

Légi közlekedés

0

5

10

15

20

25

30

1980 1985 1990 1995 2000 2005 2010 2015

[Mrd

tkm

]

Közúti közlekedésVasúti közlekedés

Csővezetékes szállításBelvízi hajózás

0

10

20

30

40

50

60

70

80

1980 1985 1990 1995 2000 2005 2010 2015

[Mrd

ukm

]

SzemélygépkocsiAutóbusz

Vasút/HÉVVillamos/metró

Légi közlekedés

Technical progress relieves some of thestress on the environment in a number ofways:

• Modern engines with lower fuel con-sumption cut down on energy use.

• Vehicles using alternative fuel, suchas LPG, are easier on the environ-ment than those powered by conven-tional fuels.

• Multimodal solutions include the envi-ronment-friendly movement of trucksby rail.

Alternative, zero-emission vehicles will as-sume a role in urban transport. In the railwaysector, the vehicle reconstruction program isnow drawing to a close. In goods transport byrail, special and multi-function cars will soonbecome predominant.

It is our hope that, within the interval of thetransport policy, we will see the first high-speed railway in Hungary constructed andlinked to the European network.

Enabled by research and development in thesector, the progress of transport technologyoffers fresh opportunities and markets forinternational and Hungarian industries.

IIII..11..55.. IIMMPPRROOVVIINNGG EEXXIISSTTIINNGG TTRRAANNSSPPOORRTT

SSYYSSTTEEMMSS AANNDD TTHHEEIIRR EEXXPPLLOOIITTAATTIIOONN

Hungarian road and railway networks, water-ways, inland ports, and airports represent alarge part of the country’s assets. Thepreservation of these assets, theirmaintenance in good repair, and their morerational use are the fundamental interest andresponsibility of the state and every citizen.

Before constructing new capacities, we muststrive to increase the efficiency of the existingsystem, coordinating goods transport by railand water using combined and multimodalmethods, maintaining a healthy balance be-tween personal and public passenger trans-port, as well as promoting P+R (“Park and

Ride”) and integrated traffic management sys-tems.

IIII..11..66.. RRAAPPIIDD CCOONNSSTTRRUUCCTTIIOONN OOFF LLAACCKKIINNGG

IINNFFRRAASSTTRRUUCCTTUURREE

Between 2000 and 2015, passenger and goodstransport performances (in passenger and tonkilometers) is expected to grow by 30-35% and25-30%, respectively.6

CChhaannggeess iinn HHuunnggaarriiaann ppaasssseennggeerr ttrraannssppoorrttppeerrffoorrmmaannccee bbyy mmooddee

Fig. 1

CChhaannggeess iinn HHuunnggaarriiaann ggooooddss ttrraannssppoorrttppeerrffoorrmmaannccee bbyy mmooddee

Fig. 2

6 A 2001 KTI estimate, based on GazdaságkutatóRt.’s calculations for the transport elasticity of theHungarian economy over the next 10-15 years.

Car Railway/suburban Air transportBus Tream/metro


21

In light of specific indicators (density per 1000km² and 10,000 inhabitants), thefreeway/expressway saturation in Hungary is

barely one third of the EU15 average. Certainstructural elements of existing public roadsare also lacking, and we need more riverbridges. Only 85 km of the 3500-km railwaynetwork in Hungary is suitable for a travelspeed of 160 km/h. The density of ports on

the Hungarian section of the Danube is less thanone third of that west of the border. The countryhas just one international airport.

IItt iiss ooff vviittaall nneecceessssiittyy ttoo ccoonnssttrruucctt mmiissssiinnggiinnffrraassttrruuccttuurree eelleemmeennttss lliinnkkiinngg ttoo tthhee EEuurroo--ppeeaann nneettwwoorrkkss bbyy 22001155..

A crucial aspect of transport development isthe enhancement of lliinnkkss bbeettwweeeenn tthhee vvaarrii--oouuss mmooddeess. When properly designed andimplemented, the iinntteerrsseeccttiioonn aanndd ttrraannssffeerrppooiinnttss connecting individual modes (pedes-trians, bicycles, cars) to mass transport (bus,railway, urban transport vehicles) offer moresafety, relieve stress on the environment, andprovide more and better options for individualpassengers, families, and business travel. Ingoods transport, special economic and envi-ronmental significance is accorded to llooggiiss--ttiiccss cceenntteerrss, particularly multimodal hubs thatlink transport by road, rail, and inland water.

We must adopt laws guaranteeing the terms ofresolving social conflicts between infrastructuredevelopment and the interests of environmentalprotection. BByy eennaaccttiinngg tthhee PPuubblliicc BBeenneeffiitt AAcctt,we ensure the ability to realize plans that areimportant for society as a whole in the area ofenvironmental protection, security, technology,and economy. We cannot allow a few individualinterests to foil or delay development that servesthe interests of the local or regional community,or the entire nation. It is crucial to precisely de-fine the available means of enforcing interests,and to render the relevant rights and proceduresboth more consistent and more predictable.

PPaann--EEuurrooppeeaann CCoorrrriiddoorrss aanndd TTIINNAA ssuupppplleemmeennttss iinn HHuunnggaarryy

Road

Railway

Waterway

Airport

Port

22

IIII..11..77.. FFIINNAANNCCIINNGG

In any country, transport networks are theproperty of the nation, the value of which in-creases with investment and decreases if leftunattended. Therefore, the construction, op-eration, and maintenance of traffic installa-tions are government functions regulated bylaw, and overwhelmingly financed from cen-tral and local budgets.

The implementation of the transport policyrequires far greater resources than the Hun-garian government has traditionally allocatedfor similar purposes on the “leftover principle.”This means that tthhee ggoovveerrnnmmeenntt mmuusstt aass--ssuummee aa nneeww rroollee iinntteennsseellyy pprroommoottiinngg eeccoo--nnoommiicc ddeevveellooppmmeenntt bbyy eennccoouurraaggiinngg aannddpprriioorriittiizziinngg iinnvveessttmmeenntt iinn iinnffrraassttrruuccttuurree aassaa ppiillllaarr ooff tthhee mmaarrkkeett eeccoonnoommyy..

DDeevveellooppmmeenntt ffiinnaanncciinngg

The resources for financing infrastructuredevelopment will be available from the na-tional budget, European Union funds on a co-financing basis, loans by European banks,and private capital. We must constantly lookfor PPP financing of infrastructure projects.We plan to use Cohesion Funds primarily tofinance such large-scale investments as Pan-European corridor sections and TEN-T ele-ments, with additional transport targets underthe National Development Plan using Struc-tural Funds.

In a number of EU member states, the vehiclefuel tax contributes resources. By analogy,the tax component of fuel prices in Hungarycould be used to finance transport develop-ment projects. It would make sense to set upa dedicated fund for this purpose.

In 2000-2001, Hungary spent 1.1-1.3% of theGDP on transport investments collectively inall modes. The construction of the requiredinfrastructure will claim a far larger portion ofnational resources to supplement the fundsavailable from the EU.

The European Union’s transport policy advo-cates performance-rated fees for the use of in-frastructure. In this sense, it encourages theinvolvement of users and private capital in thefinancing of government tasks in network devel-opment and management. In the future, it will beinevitable to increase the participation of local,and later also regional, governments in financingdevelopment projects in their purview. Thismeans we will have to guarantee the access ofregions and local communities to the requiredresources.

Infrastructure development financed jointly bythe government and private ventures (PPP)provides a useful way to replenish resources,although this scheme may raise a number ofdifficulties when it comes to co-financing proj-ects with EU funds.

OOppeerraattiioonn ffiinnaanncciinngg

In line with the EU’s transport policy, we musttransform the regulatory and financing systemsto render identifiable factors of environmentalpollution, mental hazard, and other materialdamage, gradually shifting financial responsibil-ity for these factors from society to those whocause them.

We must advocate recognition of the fact thatthe demand for improved transport servicesimplies higher taxes. Pursuant to EU regula-tions, the national or local government is liableto compensate providers for obligatory expensesnot matched by revenues, in a scheme of lossfinancing.

In order to promote the quality operation of localpublic transport, the government introduces astandardized, normative support system inde-pendent of forms of business organization andownership.

The system of financing must strike a balancebetween maintenance/operation and develop-ment, with maintenance expenditures growingside by side with investment. As users gain in


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taxable income, they will have to contributeincreasingly to the maintenance, operation,and development of the transport infrastruc-ture.

IIII..11..88.. CCOOMMPPEETTIITTIIVVEENNEESSSS AANNDD EEFFFFII--

CCIIEENNCCYY

Transport plays a major role in improving anycountry’s economic growth, competitiveness,and employment rates. In order for it to prop-erly fulfill this role, transport must operateefficiently and in a market-oriented manner.This in turn presupposes free competitionwithout discrimination. However, smooth op-eration is always a principal criterion fortransport which dictates intervention by thegovernment, as is the case in the EuropeanUnion, to the extent of regulating competition.

It will take a few mmeeaassuurreess ooff mmooddeerrnniizzaattiioonniinn tthhee aarreeaa ooff oorrggaanniizzaattiioonn,, tteelleemmaattiiccss,, aannddrreegguullaattiioonn to ensure the competitiveness ofHungarian goods carriers in line with the ob-jectives of the transport policy. As a case inpoint, micro, small and medium-sized roadtransport businesses in Hungary will continueto need some government support.

The few provisional derogations Hungary haswon in its transport negotiations give usenough slack to prepare for the liberalizedmarket, and will help us close the gap thatseparates us from the competition. The na-tional and local governments will have to as-sume a major role in ensuring the country’sability to compete in the transport sector. It isespecially vital therefore to ddeessiiggnn aa ssuuppppoorr--ttiivvee ffiinnaanncciiaall ppoolliiccyy tthhaatt wwiillll mmeeeett tthhee aapp--pprroovvaall ooff tthhee EEUU..

The refurbished vehicle park, the plannedinfrastructure developments, the application ofnew logisticsmethods, and an EU-compatibleregulatory environment will collectivelystrengthen the competitiveness of Hungarianbusiness both at home and abroad.

To compete successfully in the integrated mar-ket of the EU and in global markets, Hungariantransport will rely on the coordinated andceaselessly evolving work of well-trained andhighly skilled drivers, mechanics, engineers,information technicians, economists, and law-yers.

IIII..11..99.. PPRROOFFEESSSSIIOONNAALL TTRRAAIINNIINNGG

A fully functional transport system presupposesnot only the requisite infrastructure and vehiclepark, but properly trained professionals as well.

The application of modern IT solutions, trafficplanning and organization, and the trends ofintegration within the sector all demand an in-tense development of proficiency. The growingprevalence of multi-level, life-long training,knowledge of languages, and the advancedmastering and application of technical, eco-nomic, and computer skills collectively bringalong a fundamental change in the way we thinkof and employ human resources.

In conjunction with quality transport services forthe long haul, professional training in the sectoroffers a career opportunity for life, especially forthe younger generation. The government willensure that a renewed transport system makean affordable contribution to the security andwell-being of Hungarian society by developingprofessional training at colleges, universities,and beyond, coordinating domestic training withinternational education, and supporting researchand development as a top priority.

In the future, we will continue to stress the im-portance of professional training in the schoolsystem as well as ongoing additional training ofthose already in employment.

As a key factor in the standards and safety oftransport services, the training curricula mustreflect real needs and expected tendencies ineach are of specialization. In secondary educa-tion, this requires the periodic review of thescope of skills recognized in the National Train-ing Register, and the introduction of new spe-cializations based on actual industry demand.

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Training will rely heavily on central programsalong with professional standards and exami-nation requirements developed on the basisof these programs in each specialization. Wemust constantly and flexibly update thesedocuments so that they reflect the prevailingstatus of knowledge and recent changes ineach special field within the sector.

Another crucial element is the expertise ofeducators, who will have to participate inregular training seminars to keep their knowl-edge up to date.

In developing training, we must ensure akeener focus on practical issues and that thetraining actually result in quality changes inthe sector.

The purpose is to gradually erect a profes-sional structure that will meet the expectationsof the economy, reflect the specifics of the

field, and in which each specialization will bealigned with EU norms in terms of curricularcontent and the time required for graduation.

It is imperative to forge a cohesive training alli-ance between public, undergraduate, graduate,and adult forms of education and on-the-jobcourses to raise a dynamic workforce able torespond to a quickly changing labor market.

Industry support and good communications areindispensable for the smooth transformation ofthe currently dual higher education system into atwo-stage linear training format that will awardBSC and MSC degrees that are principally prac-tice-oriented but enable the subsequent con-centration of theoretical knowledge. In the trans-port sector as in other fields, it is necessary toforge a unified system from the elements of theBSC and MSC degrees, further graduate pro-grams including the doctoral, and on-the-jobtraining courses and special seminars.

IIII..22.. DDEEVVEELLOOPPMMEENNTT BBYY TTRRAANNSSPPOORRTT MMOODDEE

SSoommee ooff tthhee oobbjjeeccttiivveess ooff HHuunnggaarryy’’ss ffoorr--mmeerr ttrraannssppoorrtt ppoolliiccyy hhaavvee bbeeeenn aacchhiieevveedd,and others adjusted. TThheerree hhaavvee bbeeeenncchhaannggeess iinn ssppeecciiffiicc ddeevveellooppmmeenntt pprroojjeeccttssaass ffoollllooww..

• In rrooaadd ttrraannssppoorrtt we now seek to imple-ment a purpose-oriented toll policy andmeasures to divert long-distance andtransit traffic, especially hheeaavvyy ttrruucckkss,, ttootthhee ffrreeeewwaayyss aanndd eexxpprreesssswwaayyss. Thiswill enhance transport safety, reduce en-vironmental impact, and significantly alle-viate transit traffic stress on populated ar-eas without requiring new bypass roads.

• In ppaasssseennggeerr ttrraannssppoorrtt bbyy rrooaadd, theopening up of the market will be realizedthrough the adoption of nneeww EEUU llaawwssnnooww bbeeiinngg ddrraafftteedd. These regulationswill necessitate, among other things, theremoval of public passenger transportfrom the effect of the Concession Act.

• The Pan-European Transport Conference inHelsinki has modified development targetsand some of the Pan-European corridors. Itis necessary to maximize the involvement ofCohesion Fund and TEN-T resources in fi-nancing top priority projects in the TINA(Transport Infrastructure Needs Assess-ment) and TEN-T (Trans-European Networkfor Transport).

• In addition to the uurrggeenntt ccoonnssttrruuccttiioonn ooffttrraannssiitt ffrreeeewwaayyss aallll tthhee wwaayy ttoo tthhee bboorrddeerr,we will need to build the Hungarian freewaysections of the TTIINNAA nneettwwoorrkk by 2015.

• Local public roads in built-up areas must beffuullllyy ccoommpplleetteedd wwiitthh ssoolliidd ppaavveemmeenntt ssuurr--ffaaccee by 2015.

• Instead of keeping MÁV Rt. as a whole fullyin possession of the Hungarian state, thegoal now is to rreettaaiinn ssttaattee oowwnneerrsshhiipp oonnllyyooff rraaiillwwaayy ttrraacckkss, but not necessarily ofrailway passenger and goods transport in-terests as well.


25

• Environmental considerations have re-moved from the agenda the coordinateddevelopment of the airports at Ferihegyand Kiskunlacháza. At the same time, tthheeDDeebbrreecceenn aanndd SSáárrmmeelllléékk aaiirrppoorrttss hhaavveeaaddvvaanncceedd ttoo rreeggiioonnaall ssiiggnniiffiiccaannccee7,with the government taking a role in theirdevelopment..

• We will follow in the tracks of formertransport policies in earmarking govern-ment support for MALÉV to improve itspositions in the air transport market. As aresult of global changes, tthhee ccoouurrssee ooffpprrooggrreessss ffoorr MMAALLÉÉVV wwiillll nnooww lleeaaddtthhrroouugghh pprriivvaattiizzaattiioonn aanndd iinntteeggrraattiioonn iinnaa ccaarrrriieerr aalllliiaannccee..

• In the inland navigation sector, aallll oobbssttaa--cclleess ffrroomm pprriivvaattiizziinngg MMAAHHAARRTT hhaavveennooww bbeeeenn rreemmoovveedd.. Ideally, the privati-zation of MAHART should not affect thepermanent state ownership of the CsepelPublic Port on the Danube.

• TThhee SScchheennggeenn TTrreeaattyy hhaass ddiiffffeerreennttiiaatteeddHHuunnggaarryy’’ss oobblliiggaattiioonnss wwiitthh rreeggaarrdd ttoobboorrddeerr ccrroossssiinngg ppooiinnttss.. Our task now isto develop control points on external bor-ders, and to wind up points along internalborders.

• Enhancing the safety of ppeeddeessttrriiaann aannddbbiiccyyccllee ttrraaffffiicc has equal benefits for theeconomy, national health, environmentalprotection, and tourism. We will continueto respect this conclusion of the 1996transport policy, and carry on the con-struction of the national network of bicycleroads.

IIII..22..11.. IINNFFRRAASSTTRRUUCCTTUURREE NNEETTWWOORRKKSS AANNDD

HHUUBBSS

The desired performance and concerted op-eration of various transport modes (road, air,water, rail, urban) presupposes networks ofan adequate density and quality, as well asstrategically chosen and fit-for-purpose nodes 7 Pursuant to Government Decree 2078/2000, inharmony with the National Aviation Strategy.

and hub locations, such as railway stations,ports, airports, and logisticscenters. Properlysized networks and trans-shipment points havea positive effect on accessibility, safety, the envi-ronment, and the desirable intermodal balance.

Recognizing the improvement of existing net-works and the construction of lacking infra-structure as its main goals, the transport policyemphasizes the need for more substantial re-sources than have been previously available forsuch purposes.

RRooaadd nneettwwoorrkk

As the number of vehicles on public roads growsin tandem with the evolution of economic andinternational relations, we encounter a numberof infrastructure development needs, in the ffooll--lloowwiinngg oorrddeerr ooff pprriioorriittyy:

• Construct the freeway/expressway sys-tem according to the timetable set byAct CXXVIII of 2003, as part of Hun-gary’s Europe Plan and in harmony withthe National Plan for Regional Devel-opment.

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• Complete freeway ring bypassing thecapital, with a bridge over the Danubenorth of the city, and another at Du-naújváros, to relieve stress on Buda-pest and improve regional connections.Build bridges on the Tisza River as re-quired by the National Plan for Re-gional Development.

• By 2008, increase the length of roads–in addition to the freeway/expresswaynetwork–with a load capacity of 115kN/axle, the EU norm, to 7000 kilome-ters by reinforcing trunk and regionalroads.

• Develop river ferry services to com-pensate for the inadequate number ofbridges and improve access.

• Assist transport safety, environment-friendly local transport, and tourism bydeveloping the bicycle road networkadopted in the National Plan for Re-gional Development, and supportingsimilar local initiatives.

• Complete and surface all public localroads in built-up areas–one third ofwhich are still unpaved at present–by2012 in Budapest and major citiesaround the country, and by 2015 in allother settlements.

TThhee nneeww rrooaadd ppoolliiccyy

• from the perspective of the user, pre-supposes a uniform road network fromstarting point to destination, and alignsthe procedure of its management bythe national and local government withaccepted EU practice, opening the ho-rizon for the empowerment of regionsin the long term;

• establishes a mechanism of road de-velopment, maintenance and operationthat reflects the importance of eachnetwork element in conducting traffic,subordinating to this principle the im-provement and preservation of servicestandards that can be reasonably ex-

TThhee ffrreeeewwaayy//eexxpprreesssswwaayy nneettwwoorrkk aass ppllaannnneedd bbyy 22001155

Helsinki corridorsFreewayExpresswayExpressway underconstruction


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pected considering the country’s pre-vailing level of economic development;

• stresses the improvement of technicaland environmental parameters and thepreservation of assets, with a view toequalized and proportionate balancedregional development, sustainablegrowth, interface with the TEN, and heurgent accommodation of the maxi-mum axle load permitted on EuropeanUnion roads;

• coordinates the development, opera-tion, and maintenance of national andlocal road networks, particularly in thecapital city and regional centers;

• seeks ways to enable two-way accessto cul-de-sac communities.

CCoonnssttrruuccttiinngg aa uunniiffoorrmm rrooaadd nneettwwoorrkk

The rapidly integrating European markets, thestrengthening of regions, the rising demand forroad use, particularly for goods transport andlogisticschains, and the general processes ofglobalization all necessitate a fresh approachto policy-making that regards the transportinfrastructure as an organic whole. Heedingthis call, we seek to construct an advanced,ssttaannddaarrddiizzeedd rrooaadd nneettwwoorrkk step by step. Tousers, this uniformity will primarily appear in theform and quality of operation, regardless of theownership structure of the network.

The elements of the newly conceived roadnetwork are the following:

• TTrruunnkk rrooaaddss, consisting of freeways,expressways, their lead branches atintersections and rest areas, category Iand II main roads, their lead branchesat intersections and rest areas, as wellas secondary roads promoted to mainroad status due to their significance forthe network. In 2000, this portion of theHungarian road network totaled 9,800km; by 2015, it is projected to attain11,800 km in length. Owned and man-aged by the state.

• Over the long term: rreeggiioonnaall rrooaaddss,consisting of the secondary roads of

the national network, without the leadbranches at intersections and rest ar-eas associated with category I and IIroads, freeways, and expressways. In2000, this portion of the Hungarianroad network totaled 20,500 km; by2015, it is projected to attain 20,900km in length. To be owned and man-aged by the regional administration.

• LLooccaall rrooaaddss., owned and managed bythe local governments. Initially, theseconsists of roads within city limits inbuilt-up areas. In 2000, this portion ofthe Hungarian road network totaled53,565 km, with two-thirds of thislength consisting of paved roads. As agoal of the transport policy, by 2015the entirety of this portion of the net-work is expected to be paved.As an additional element of the localroad network, we reckon with some70,000 km of unpaved peripheralroads, typically used by the farmingsector. Although it would be unneces-sary for the transport policy to providefor the development, maintenance andoperation of these, the issue of theirownership and management will haveto be inevitably settled as part of mod-ernizing public administration. We alsoneed to look into the possibility of userparticipation in financing. The safety ofoperation and efficient management oflocal roads must be realized by meansof technical stipulations and guidelinesfor quality, construction, maintenance,organization, and methodology.

Summing up, the public road network in 2000consists of 30,346 km of national roads ownedby the state and 129,500 km of local roadsowned by the local governments, or 159,846km of public roads in total.

The organization managing this newly dividednetwork as an organic whole will have to createand preserve reliable quality service in propor-tion to traffic needs. To further this end, publicroad management will be gradually divorcedfrom ownership and controlling functions, as is

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the custom in the developed member states ofthe EU.

Launched in 1997, the Hungarian BicycleTransport Program has identified the goals of

• improving transport safety;• increasing the share of bicycle trans-

port in the total;• developing domestic and international

tourism;• encouraging healthy lifestyles.

The Program seeks to achieve these goals by

• promoting a bicycle-friendly climate;• designing local bicycle transport net-

works;• designing a national network of bicycle

roads;• creating the background for multimodal

transport options;• developing the information and traffic

sign system.

The network of main bicycle roads is plannedto total 3400 km.

RRaaiillwwaayy nneettwwoorrkk

The density of the Hungarian railway networkexceeds the EU average, but it falls behind interms of quality parameters. Railways claim ahigher share in both passenger and goodstransport than the EU average, and we willspare no effort to maintain this favorable ratio.

TThhiiss pprriioorriittyy ooff mmaaiinnttaaiinniinngg tthhee mmaarrkkeettsshhaarree ooff rraaiillwwaayy ttrraannssppoorrtt has been as-sisted by the track reconstruction program ofrecent years, the installation of modern safetydevices, the modernization of traffic control,the electrification of the trunk network, theintroduction of modern passenger coach carsin intercity service, and the removal of obsta-cles from all elements of the infrastructure tofacilitate handicapped access.

PPrriioorriittyy aarreeaass ooff rraaiillwwaayy iinnffrraassttrruuccttuurree ddee--vveellooppmmeenntt

• Pan-European railway corridors;• international railway corridors;• intercity railway corridors;• suburban sections;• regional lines;• other infrastructure elements,

such as logisticscenters.In the near future, Hungary’s railway policywill implement the comprehensive reform ofMÁV, in order to help design a railway trans-port system that is both EU-conform andmindful of national interests.

As part of the new railway policy, we will

• unbundle divisions with their own ac-counts within the railway company;

• organize the relations between the stateand the railway companies according toEU norms, financing government sup-port for the track grid and contracting outpublic passenger services;

• develop the vehicle park to maintaincompetitiveness;

• free up the tracks for access by alienrailway companies for a fee;

• develop the trunk network with EUfunds.

The transport policy considers it of the essenceto preserve the existing railway network and todevelop high-traffic sections. The limited open-ing of the Hungarian railway network to foreignproviders in the integrated EU market is sched-uled for 2004, with unlimited access for a feeenabled in 2007 at the very latest.

Hungarian railways have a considerable busi-ness potential owing to their attractive pricesand services for international passenger andtransit goods trains. We can rely on a highlydeveloped railway network and efficient trans-port by rail to impede the flux of passengers andgoods over to the roads.


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In order to safeguard competitive edge for thelong term and satisfy the demands of passen-gers, freighters, and commercial railway com-panies, we need to concentrate our hithertolimited financial means on developing strate-gically important track sections.

The Hungarian trunk railway network totals4074 km, including 2286 km under the EU-approved TINA network where 75-80% of thetotal traffic by rail is conducted.

HHiigghh--pprriioorriittyy MMÁÁVV pprroojjeeccttss

Track rehabilition with EIB loanTrack rehabilition with ISPA fundsPlanned track rehabilition with EIB loanPlanned track rehabilition with EU cohesion funds

- International trunk line- Domestic trunk line- Other line

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As a result of trunk network maintenance andrehabilitation, we must achieve the mid-termobjectives of achieving the initial constructionspeed and increasing the tracks’ load bearingcapacity from 20 t/axle to 22.5 t/axle. If wecan exploit to the full the opportunities af-forded by EU funds, by 2012 we should beable speeds of 140 to 160 km/h on sectionsintegrated with the TINA network.

We need to carry on the electrification pro-gram. At present, only 34% of the lines havebeen electrified compared to the EU averageof 41%. After the lines along Pan-EuropeanCorridor V, the next level of priority is to elec-trify the lines in the Transdanubian region.We also need to complete the modernizationof border crossing points as required by Hun-gary’s accession and the Schengen Treaty,hopefully by 2006.

Considering the European Union’s plans,existing in several drafts, for a high-speedrailway line to Athens as part of the Trans-European Network (TEN), the first opportunityfor Hungary to join this high-speed line alongCorridor IV will not materialize before 2015.

The trunk railway network will remain ssttaatteepprrooppeerrttyy.

We plan to separate ttrruunnkk lliinneess from rreeggiioonnaall((llooccaall)) lliinneess.. TThhee rreeggiioonnaall nneettwwoorrkk will incor-porate secondary lines without national or inter-national significance and fall outside the mainarteries of passenger and goods flow. A total of2000-3000 km of these lines will be relinquishedto the regions and bbeeccoommee pprriivvaattee oorr llooccaallggoovveerrnnmmeenntt pprrooppeerrttyy, along with the responsi-bilities for operation and financing. These lineswill serve local passenger and goods transportas well as tourism in a simplified yet safe opera-tion scheme. Operation and ownership will thusconverge at the level of the given region, localgovernment, business organization or possibly apublic-private partnership, thereby upholding theEuropean principle of subsidiarity.

PPoorrttss aanndd wwaatteerrwwaayyss

With a fraction of the usual air pollution and neg-ligible noise emission, transport by water clearlyoffers an environment-friendly alternative toother modes whose advantages will be readilyapparent if given a rational place in the divisionof transport labor. The external cost of naviga-tion per unit of shipping performance is esti-mated to amount to one third and one tenth ofthe respective burden that transport by rail androad impose on society. Transport by water,particularly of good suited for river shipping, hascertified benefits for the national economy.

Helsinki coridors

Additional and recommendedelements of the TINA network

- Dual track, electrified- Dual track- Single track, electrified- Single track- Narrow track

Pan-European Railway Corridors in Hungary


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We need to eliminate the factors impeding therealization of these inherent advantages, byclearing waterways, developing the network ofports, and modernizing the vessel fleet.

WWaatteerrwwaayyss

• The number one development priorityis of course the Danube, particularlythe sections on the Hungarian-Slovakian border and south of Buda-pest, to enable vveesssseellss wwiitthh aaddrraauugghhtt ooff 22..55 mm ttoo nnaavviiggaattee wwiitthh--oouutt rreessttrriiccttiioonnss 330000 ddaayyss aa yyeeaarr.We propose to negotiate a Danubedevelopment project with Bavarian,Austrian and Slovakian partners,seeking support from EU funds.

• To exploit natural inland waterways,we must render the length of theTisza, Bodrog, and Körös rivers navi-gable by vessels with a 400-600 tonfreight capacity.

• In an effort to enable internationalriver shipping, we must invite the af-

fected Slovakian, Romanian, Ukrainian,and Serbian parties to negotiate the in-ternational legal status of the contiguousTisza, Bodrog, and Körös rivers, ac-cording to the following strategy:o As the bare minimum, we must

amend the Hungarian-Yugoslaviantreaty on River Tisza navigation toallow transit vessels under a thirdnation’s flag.

o We must find the most effectiveway to extend to the Tisza Riverthe international navigation proto-col recognized on the Danube. Theold legal precedent, still thought bythe French to be in force today, isthe 1920 Danube Convention,signed in Paris, which included theTisza in its purview.

o As an interim solution, we pro-pose to sponsor a regional agree-ment to be signed between Hun-gary, the Ukraine, Romania, Slo-vakia, and Serbia.

HHuunnggaarryy’’ss wwaatteerrwwaayyss aanndd ppllaannnneedd ppoorrttss

AirportPortCategory VIWaterway

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PPoorrttss

In the course of developing nnaattiioonnaall ppuubblliiccppoorrttss government investments must be coor-dinated with business terminal developmentsimplemented within the port limits. This ap-plies to the following top-priority developmenttargets:

• For the Győr-Gönyü port, the CsepelNational and Freeport, and the portsof Dunaújváros and Baja, we need toconstruct the basic infrastructure asdelineated in development plans interms of road and railway links, portinstallations and terminals, or recon-struct these as necessary;

• At major ports, we must constructadequate facilities for the acceptance,collection, and possibly treatment orprocessing of fluid and solid wastesgenerated on board vessels, provid-ing for the operation mechanism ofthese facilities in line with EU norms.

The government will support land infrastruc-ture development, also as a means to en-courage access to local public ports withoutnational significance.

LLooggiissttiiccss SSuuppppoorrtt CCeenntteerrss ((LLSSCC)) aannddccoommbbii tteerrmmiinnaallss

The main purpose of constructing a network oflogistics centers is to provide intermodalsolutions for goods transport, that is, the optionof environment-friendly transport modes. Thesale of logistics services at these centers, suchas goods handling, warehousing, dispatching,and assembly, serves to boost economic growthof the given region.

The development of LSC’s and combined freighttransport terminals started in the early 1990’s,and is being implemented on schedule. At pres-ent, the national concept provides for 13 suchcenters in 11 regions, each with the obligation toconstruct a required/railway link, and four alsowith a potential port link. The main priority is tocomplete the Budapest Intermodal LogisticsCenter (BILK), followed by similar centers inSzékesfehérvár, Szolnok, Szeged, and Záhony.Given the mentioned stipulation of links, thesecenters represent a significant investment with aslow turnover rate. As such, they typically re-quire government support to be feasible. Logis-tics center development is an acknowledgedmarket category of its own, with the role of thegovernment limited to the construction of theactual infrastructure.

LLooggiissttiiccss cceenntteerrss ooff nnaattiioonnaall ssiiggnniiffiiccaannccee

LEGEND

Helsinki CorridorsTINA network elements

Planned TINA networkelements

Logistics center

Logistics catchmentzone


33

AAiirrppoorrttss aanndd aaiirr ttrraaffffiicc ccoonnttrrooll

One of the vital functions of transport admini-stration is the safe operation of airports andair traffic control, along with the continuoussupervision and development of flight securityand the human, technical, and environmentalcomponents of aviation.

The number one priority in this field is thedevelopment of the BBuuddaappeesstt FFeerriihheeggyy IInn--tteerrnnaattiioonnaall AAiirrppoorrtt (“Ferihegy”) and its con-cession into a true hub port to improve profit-ability.8 The coordinated development andoperation of the DDeebbrreecceenn aanndd SSáárrmmeelllléékkaaiirrppoorrttss –both suited for international air traf-fic–has regional significance. The develop-ment of airports in the country must be har-monized with the National Plan for RegionalDevelopment and various local developmentprograms.

As elements in the national network of borderentry points, airports receiving internationalflights must be equipped with border controlssatisfying Schengen criteria.

In the process of converting Ferihegy into ahub for the Central European region, we haveidentified the mid-term goals of improvingcapacity and service standards, and to con-struct a high-speed railway link between theairport and downtown Budapest. As part of acomprehensive environmental program, wewill commission a sophisticated noise moni-toring system, and design noise gates to pro-tect residential zones.

When negotiating terms and conditions withthe European Union, we must try to secure for

8 Hub means an airport that plays a decisive role inits region, whose level of construction, technicalsolutions, and direct links make it a collect-ing/distribution center for smaller airports and othermodes of passenger and goods transport.

Ferihegy the opportunity to expand its trafficvolume and range of services in the context ofthe international strategic cooperation betweenleading European airports.

The development of air traffic control must becarried out under European programs for en-hancing air services and capacities. We need tohelp bring about the commissioning of theCCoommmmoonn AAiirrssppaaccee AAiirr TTrraaffffiicc CCoonnttrrooll CCeenntteerrbetween 2007 and 2010. Realized with the co-operation of Central European states, the Centerwill play a prominent role in the region in imple-menting the Single Sky concept.

34

IIII..22..22.. OOWWNNEERRSSHHIIPP,, RREEGGUULLAATTIIOONN,, AAMMDD

OOPPEERRAATTIIOONN

The pprriioorriittiieess sseett uupp bbyy tthhee ttrraannssppoorrtt ppooll--iiccyy in passenger and goods transport are thefollowing:

• Preference of public over private passen-ger transport; encouraging bicycle use;increasing pedestrian comfort an safety.

• Promoting goods transport by rail andwater, and multimodal solutions.

PPaasssseennggeerr aanndd ggooooddss ttrraannssppoorrtt bbyyrrooaadd

Goods transport by road in Hungary is nowfully privatized, with all functions performed byprivately owned companies in an environmentof free competition, and government interven-tion limited to indirect devices such as taxes,fees, licensing, control, etc. It is in order toemploy such tools to bolster the positions ofdomestic carriers, in the form and to the ex-tent allowed by EU regulations.

Competition has escalated at breakneckspeed due to the growth of private enterpriseand the presence of foreign business interestsin the sector. It is imperative to preserve andenhance Hungary’s competitiveness by ra-tional company management, while fully up-holding the principles of anti-discriminationand fair competition.

In passenger bus transport, the bulk ofscheduled service is provided by the state-owned Volán group of companies, while pri-vate operators claim more than 50% of thecharter bus sector,

As a basic obligation, we must ensure univer-sal access to scheduled public bus service for

every citizen. When announcing tenders, inconformity with EU regulations, for exclusiveoperator rights for a definite period, the govern-ment will have to make sure there are no areasleft without service, and that the awarded con-tracts proportionately cover service line sectionsof small, medium, and large traffic volume.

As the owner, the state provides the companieswith support for the reconstruction of bus fleets.Public service and government compensationfor unprofitable scheduled services are indis-pensable for maintaining positions in a fiercelycompetitive market. Consequently, the nationaland local governments must continue to take anactive role in this sector.

In the privatization of scheduled bus services,we must maintain public functions and apply EUexperiences, iinnttrroodduucciinngg rreegguullaatteedd ccoommppeettii--ttiioonn iinnsstteeaadd ooff aallll--oouutt lliibbeerraalliizzaattiioonn..

The condition of the vehicle fleet is of the utmostimportance not only for the efficiency of opera-tion (in terms of costs and standards) but alsofor safety and the environment. As road trans-port in Hungary continues to grow, by 2015 pas-senger and goods transport by road is expectedto increase by 150% and, respectively, by 70%,We have already achieved results by measurestargeting tthhee tteecchhnniiccaall ccoonnddiittiioonn aanndd ccoommppoo--ssiittiioonn ooff tthhee rrooaadd vveehhiiccllee ppaarrkk (for instancethe introduction of the EURO 1, 2, 3 systems orthe reconstruction of the bus fleet with govern-ment funds). Considering these results, we an-ticipate the following changes to affect the roadvehicle park in way that are iimmppoorrttaanntt ffrroomm tthheeppeerrssppeeccttiivvee ooff tthhee ttrraannssppoorrtt ppoolliiccyy::

• The number of surviving obsolete, East-European-made passenger cars willdwindle, while that of modern, more en-vironment-friendly and fuel-efficient carswill continue to grow.

• Due to changes in the road freight andscheduled bus market and the privatiza-tion of public service, only operatorsusing vehicles of satisfying quality willremain standing.


35

RRaaiillwwaayy ttrraannssppoorrtt

New guidelines issued by the European Unionin 2001 have set for national railways the mid-term objective to unbundle activities in termsof accounting and organization, and to createnew organizations, in the interest of transpar-ency and fair competition.

The new institutions according to the ECguidelines will include

• an independent track allocationagency, in charge of allocating trackcapacities free of discriminationamong domestic and foreign com-mercial railway companies, and ofsetting and collecting user fees;

• an agency for licensing railway com-panies, responsible for issuing opera-tion licenses;

• a regulatory agency, to investigatealleged violations of competition prin-ciples;

• an independent agency for railwaysafety.

Using national and matching Communityfunds, we must develop the permanentlystate-owned trunk railway network to a levelthat will satisfy domestic demands and pres-ent an attractive transit option for internationaltransport in terms of quality, safety, and price.The operation and development of the trunknetwork will be the charge of the railway trackmanagement company, be remain perma-nently in the ownership of the state.

• PPaasssseennggeerr rraaiillwwaayy sseerrvviicceess consist ofthe fast and comfortable transportationof passengers between the cities and,increasingly, in suburban relations on ahigh-frequency schedule (both publicservice tasks) as well as of internationalpassenger transport.

The government will retain long-term ownershipof passenger service by rail, and will receive arevenue supplement. The system of state subsi-dies must be reconceived on a normative basisso that the support is both commensurable withperformance (scheduled volume) and predict-able. The preservation and modernization ofpassenger railways as state property is a fun-damental social and environmental interest thatdeserves to be centrally supported. Over thelong haul, as European railways undergo a pro-cess of globalization, it will be possible for thestate passenger railway company to becomepart of a larger alliance.

• FFrreeiigghhtt rraaiillwwaayyss conduct export, im-port, transit, and large-scale domesticdeliveries of goods in market condi-tions. The freight railway will be free toenter an appropriate alliance and to in-vite private capital to boost its ability tocompete in the market. The state willgradually withdraw from this sector as aproprietor.

The independent allocation agency will have tooffer operators schedule times that will bestutilize the available track capacity, and feescomparable to those offered by the competitionand proportionate to actual costs.

Over the next few years, railway reform in Hun-gary will principally affect MMÁÁVV RRtt .The onlyother railway company in Hungary is GGyySSEEVV RRtt.(the Győr-Sopron-Ebenfurt Line), a joint stockcompany registered in both Hungary and Aus-tria, in which the Hungarian State controls a61% interest. This railway is expected to remainunchanged in terms of ownership structure andoperation protocol.

36

WWaatteerr ttrraannssppoorrtt

Since the early 1990’s, numerous privateenterprises have sprung up in practicallyevery corner of the water transport sector,and the tendency continues.

IInnllaanndd ffrreeiigghhtt sshhiippppiinngg

It is vital for us to maintain vessels under theHungarian tricolor in international navigationon the Danube. The first step in this directionis to slow down the pace at which the Hun-garian fleet has been losing out on markets,stabilizing the country’s share in internationalcommercial shipping on the Danube at around20%.

This segment is characterized by a twofoldexcess supply of shipping space, mainly dueto the presence of foreign vessels. At thepresent rate of growth, demand is unable toabsorb this excess, especially as it representsa level of technology not fit for new-fangledmarkets. In the interest of sustaining Hungar-ian river navigation and rendering the domes-tic commercial fleet more competitive, thestate as owner will have to subsidize its tech-nical refurbishment and the selective reduc-tion of its shipping space over the short term.The privatization of MAHART is an urgenttask.

On the Tisza and its tributaries, namely theBodrog and Körös rivers, we need to promotefreight and passenger shipping. In an effort toencourage international commercial presenceand tourism, we will open up the Tisza to for-eign vessels.

IInnllaanndd ppaasssseennggeerr ttrraannssppoorrtt bbyy wwaatteerr

The standstill and decline of domestic sched-uled service on Hungary’s waterways hashighlighted the need to focus on recreationaland tourist transport and special, customizedservices.

The protection of tourist destinations, environ-mental assets, and local traditions requires us tohandle Lake Balaton essentially as a closedmarket for shipping services, only leaving openthe very limited segment of water sports andspecialized services. We must allow the localgovernments to maintain their stake in BalatonHajózási Rt. for the long term.

There has been a boom on the Danube in thetraffic of international cabin passenger ships(also known as “hotel ships”), with typical portsof call in Hungary including Budapest, Eszter-gom, Kalocsa, and Baja. Although Hungary iscurrently not represented in this market, we findit important to provide incentive for furthergrowth by constructing new passenger facilitiesand renovating existing ones at Budapest,Esztergom and at Szeged on the Tisza River,about to be opened for international navigation.These projects would be financed jointly by thestate, local governments, and private enterprise.

One of the most profitable and economicallystimulating branches of tourism, yachting inHungary has undergone some spectacular de-velopment since borders opened up in the early1990’s. We should keep abreast of this trend bymaking the appropriate investments in yachtinginfrastructures on Lake Balaton and the majorrivers, financed jointly by the national and localgovernments and private capital.


37

CCoommbbiinneedd sshhiippppiinngg aanndd llooggiissttiiccss

In harmony with the EU’s transport policy, theHungarian state continues to support mmuullttii--mmooddaall sshhiippppiinngg ssoolluuttiioonnss and environment-friendly llooggiissttiiccss cceenntteerrss.. We must extendincentives and benefits to encourage “rollinghighway” and unaccompanied multimodaltransport using containers, swap bodies etc.Logistics centers represent a breakthrough inrailway transport, enabling better exploitationof railway capacities and diverting some of thecommercial traffic onto the tracks.

Combined goods transport by road and rail isregulated the AGTC, the European Agree-ment on Important International CombinedTransport Lines and Related Installations, towhich Hungary is a signatory. Upgradingcombined transport capabilities to interna-tional standards by modern terminals in Hun-gary is a vital national interest that serves tofully accomplish the country’s transit functionsand to redirect some of the east-west flow ofgoods onto the waters and the railway tracks.At present, some 8-9% of all transit freightflow through Hungary is conducted via rollinghighway (Ro-La), a five-fold increase over thepast 10 years. Unaccompanied freight trans-port in containers, swap bodies, semi-trailersetc. has grown by about 40% in four years.The river port development program willbroaden the horizon of opportunities for Ro-Ro (combined water/road transport). Thesustenance and amplification of this trend isguaranteed by the EU-harmonized Hungarianregulation and government subvention ofdomestic intermodal transport.

AAiirr ttrraannssppoorrtt

Air transport, along with information technol-ogy and tourism, is globally the most dynamiceconomic sector.

International air transport is in flux in every pos-sible way. With markets being liberalized every-where, the name of the game is global competi-tion. The rivalry between individual airlines isbeing rapidly superseded by the competitionbetween worldwide carrier alliances. Marketsare being reshuffled, redistributed, and concen-trated. Save for a few temporary lulls, the airtransport market has grown steadily, both inabsolute terms and in its share compared toother modes.

It is in this volatile global context that Hungary’sairline industry must seek ways to ensure itssurvival and long-term profitable operation of-fering high service standards. This requires thethorough revision of the national airline’s busi-ness strategy on rational economic grounds, theimposition of reasonable frugality measures, andthe development of the aircraft fleet. In order tokeep MALÉV alive and even to make it competi-tive, we need to optimize the cost structure ofthe fleet by reversing the current ratio betweenleasing and purchase with the aid of capital in-jection and temporary benefits.

The privatization of MALÉV will follow the strat-egy developed jointly by the majority owner ÁPV(the State Privatization Company) and the De-partment of Air Transport of the Ministry ofTransport, which provides all the details of theimpending ownership change. During the priva-tization of the airline, it will be crucial to safe-guard national supervision as required by inter-national treaties. This means that 50% + oneshare must remain in possession of the Hun-garian state. We must also provide the capitalneeds for acquiring the sufficient number of air-craft, in compliance with EU guidelines andnorms for government subvention.

38

UUrrbbaann aanndd ssuubbuurrbbaann ttrraannssppoorrtt

Nearly two thirds of the total Hungarianpopulation lives in cities, where the quality oflife depends greatly on the quality of urbantransport and the ways in which it affects theenvironment.

A liability of the national government, intercitytransport traverses city limits and blends inwith local networks. It is this inseparable en-tanglement that makes it so vital to conceiveof urban transport policy as an integral part ofthe national transport policy. Hungary needscities whose transport policies mesh withthose of the country to assist dynamic eco-nomic growth and integration with the Euro-pean Union. In other words, wwee nneeeedd aa ssttrraatt--eeggyy ooff uurrbbaann ttrraannssppoorrtt ddeevveellooppmmeenntt tthhaattwwiillll lleeaann mmoorree eemmpphhaattiiccaallllyy oonn ccoommmmuunniittyyttrraannssppoorrtt tthhaann oonn iinnddiivviidduuaall ttrraannssppoorrttmmooddeess... In cities, we witness the concentra-tion of the various burdens that transport im-poses on society, and these burdens areproven to be heavier in case of individualtransport. TThhee ccoonncceepptt ffoorr uurrbbaann ttrraannssppoorrttppoolliiccyy mmuusstt bbee ddeevveellooppeedd cceennttrraallllyy.. Thisconcept will prioritize the construction of in-termodal nodes consisting of the main trans-fer points linking local and intercity networksand P+R facilities, which will form an organicwhole under a variety of traffic alliances. It isthis integrated system whose construction,regulation, and coordination the concept rec-ommends as one of its cardinal points.

The urban transport policy recommended inHungary relies on EU-conform, ccoonnssiisstteennttgguuiiddeelliinneess as follow:

• satisfy sustainable transport demand;• support well-balanced regional devel-

opment;• ensure fair market regulation;• support transport integration;• improve quality and service centers;

• protect human life and the environment;• apply prices commensurable with actual

performance and costs.

The changes in urban transport over the pastdecade–the mushrooming number of passengercars, the shifting functionality of individual areas,deteriorating public service standards–havegiven rise to tensions that cannot be ignored.The unfavorable influences of transport are feltmore keenly within city limits, in the form of traf-fic jams, accidents, air and noise pollution, andthe encroachment of the infrastructure on valu-able acreage. To mitigate these negative fac-tors, the government must accomplish the fol-lowing tasks:

• coordinate and harmonize the nationaltransport policy and its development tar-gets with the urban transport policies ofthe cities;

• reduce pollution and accident hazardsby building bypass roads and, aroundlarger cities, freeway rings whereverwarranted by the magnitude of transittraffic, allowing toll-free travel on free-way/expressway sections through sub-urban/metropolitan areas between theextremities of the catchment zone

• contribute to the enhanced functionalityand modernization of public transport bymeans of subsidies and revenue com-pensation;

• implement traffic control measures tomake public transport a more attractiveoption than a passenger car;

• in larger cities and their catchmentzones, participate in the implementationof a city logistical system, the operationof traffic alliances, the introduction of anintelligent ticketing system and feescheme that provides incentives forchoosing mass transportation, as well asencourage the construction of facilitiesfor the P+R (Park and Ride) network;

• coordinate individual, local public andintercity transport in cities and suburbanareas through the implementation of in-termodal points and telematic solutions;


39

• support the solid surfacing of un-paved and/or dusty roads;

• embrace the cause of bicycle trans-port, both in tourism and for business;

• provide incentives for removing ob-stacles to facilitate handicapped ac-cess.

Each local government is responsible for theoperation, maintenance, and development oftransport networks and installations in its pos-session. The Local Government Act identifiesthe operation of local public transport as anoptional task of local governments.

In the coming decade, local governments willhave to shoulder more responsibilities andtake a larger part in coordination, organiza-tion, and management. We will recommendthe detailed drafting of the urban transportpolicy based on the master concept. Themechanism of implementing fundamentalregulatory changes in public passenger trans-port, the emergence of traffic alliances, andthe coordination of these systems will be ex-pressed in the urban policies, and will relyheavily on the local governments for theirenforcement.

BBuuddaappeesstt aanndd iittss aagggglloommeerraattiioonn

It is of the essence to harmonize the transportpolicy with the Budapest Transport SystemDevelopment Plan. The transport policy con-siders it a prominent task to

• complete the M0 ring around the city,with alternating freeway and ex-pressway sections as dictated by traf-fic demands, to relieve transit flow;

• build new bridges across the Danubewithin the city limits and other trans-verse network elements to alleviatestress on inner city zones;

• favor public over individual modes oftransport;

• bring about the Budapest TransportAlliance (BKSZ), an intelligent ticket-ing system, and a converted devel-

opment of various transport networksand service standards to promote reli-ance on public transport;

• integrate MÁV’s lines within the capitalwith local public transport networks;

• reconstruct and develop the surface in-frastructure of public transport, with spe-cial regard for fixed-rail installations;

• expand the underground network and

upgrade the intersections, rails, and ve-hicle parks of suburban and commutertrain lines to advance an integrated,high-performance and environment-friendly transport network;

• build direct link between Ferihegy Inter-national Airport and downtown Budapest(a task for the mid-term);

• build parking garages, undergroundparking facilities, and P+R lots to enablepedestrian-only roads and squares–re-freshing locales for a new urban way oflife.

40

IIII..33.. RROOLLLLIINNGG PPLLAANN FFOORR MMIIDD--TTEERRMM IINNFFRRAASSTTRRUUCCTTUURREEDDEEVVEELLOOPPMMEENNTT

Within its purview, the government is responsi-ble for developing the country’s trunk road andrailway network, national public ports, the Feri-hegy International Airport, and air traffic con-trol. Projects for the modernization, enlarge-ment, and operation of these assets and facili-ties are funded from the national budget in partor in full. In additional areas where the supplyof obligatory public service is only possible byproducing losses, or where so required by theenvironmental considerations of the transportpolicy, the Government may subsidize opera-tions.

Paving the way for investments in transportinfrastructure is a time-consuming process thatinvolves a Strategic Environmental Study priorto the actual planning phase, in accordancewith EU guidelines. Infrastructure investmentsare capital-intensive and take a long time toproduce returns. All these features, along withits sheer significance for the national economy,warrants the drafting of a mid-term governmentplan for transport infrastructure development inorder to render civil works, technical designand the use of resources both more cost-efficient and more foreseeable. This mid-termplan will be drafted on the basis of modal plansand strategies, the National Development Plan,the Cohesion Fund Master Strategy, and inharmony with the National Plan for RegionalDevelopment.

The mmiidd--tteerrmm plan will provide for transportinfrastructure development tasks for periodending in 22000066, cover the various projects pro-posed by modal sectors and their strategicdocuments for the same period, and take intoaccount Act CXXVIII of 2003 on the Develop-ment of the High-Speed Road Network and thevarious infrastructure projects articulated in theGovernment-sponsored Europe Plan. De-signed in this way, tthhee mmiidd--tteerrmm ssttrraatteeggyy willlend itself to concerted implementation thanksto the rolling plan format, to be updated annu-ally in light of the adoption of each annualbudget.

We need to set up a mmoonniittoorriinngg ssyysstteemmworking around the clock to keep track of thetargets of the transport policy as they are beingaccomplished. Since the EU began to takecare of this task in 2002, after the publication ofthe White Book in 2001, we will be able to cre-ate the Hungarian monitoring system virtuallyside by side with that of the European Union.

The draft of the mmiidd--tteerrmm ttrraannssppoorrtt iinnffrraa--ssttrruuccttuurree ppllaann must be submitted to the Gov-ernment annually for approval. Also annually,the Government shall review and discuss thereport on the implementation of the plan overthe previous year, along with the next year’ssupplement, treating the two as a single rollingplan submitted for evaluation.

Budapest, March 2004


41

SUPPLEMENT

LLIISSTT OOFF RREELLEEVVAANNTT LLAAWWSS AANNDD RREEGGUULLAATTIIOONNSS

RReessoolluuttiioonn ooff tthhee NNaattiioonnaall AAsssseemmbbllyy 1199//22000044.. ((IIIIII..2266..)) OOGGYY oonn HHuunnggaarryy’’ss TTrraannssppoorrtt PPoolliiccyy 22000033--22001155

AAcctt CCXXXXVVIIIIII ooff 22000033 oonn tthhee PPuubblliicc IInntteerreesstt aanndd DDeevveellooppmmeenntt ooff tthhee HHiigghh--SSppeeeedd RRooaadd NNeettwwoorrkk oofftthhee RReeppuubblliicc ooff HHuunnggaarryy

• Decree 30/1988. (IV. 21.) MT of the Implementation of Act I of 1998 on Public Road Transport• Decree 15/2000. (XI. 16.) KöViM on Licensing the Construction, Commissioning, and Elimina-

tion of Roads• Decree 6/1998. (III. 11.) KHVM on Regulating the Management of National Public Roads• Decree 20/1984. (XII. 21.) KM on Traffic Regulation and Road Signs• Decree 19/1994. (V.31.) KHVM on the Management of Public Roads• Government Decree 231/1997.(XII.12.) on the Powers and Responsibilities of the Unified

Transport Authority• Decree 14/2001.(IV.20.) KöViM on the Professional Standards and Licensing of Domestic and

International Freight Transport by Road• Decree 49/2001.(XII.22.) KöViM on the Professional Standards and Licensing of Domestic and

International Passenger Transport by Bus• Decree 5/1990.(IV.12.) KÖHÉM on the Inspection of Licensed Vehicles• Decree 6/1990.(IV.12.) KÖHÉM on the Terms of Commissioning and Operation of Licensed

Vehicles

AAcctt XXCCVV ooff 11999933 oonn RRaaiillwwaayyss

Railway-related regulations in force

• Decree 15/2002.(II.27.) KöVíM on the Licensing of Railway Companies• Decree 28/1994.(X. 28.) KHVM on Issuing the National Railway Code• Government Decree 21/2002.(II. 27.) on Amending the Powers and Responsibilities of the

Railway Authority• Joint Decree 11/1996.(III. 5.) KHVM-PM in Unbundling Railway Track Management and Rail-

way Transport Enterprise• Joint Decree 15/1987.(XII. 27.) KM-ÉVM on the Licensing and Supervision of Railway Installa-

tions• Decree 9/2002. (II. 6.) KöViM on the Mutual Accessibility of High-Speed Railway Networks• Joint Decree GKM-PM on the Unbundled Accounting of Railway Activities

Railway-related regulations proposed:

• GKM Decree on the Allocation of Railway Track Capacities• Joint Decree GKM-PM on Determining Fees for Railway Track Use• New Railway Act

42

AAcctt XXCCVVIIII ooff 11999955 oonn AAiirr TTrraannssppoorrtt

• Government Decree on Implementing Act XCVII of 1995 on Air Transport• Government Decree 103/1999. (VII.6.) on the Rules of Construction, Development, and Elimi-

nation of Airports• Decree with the Force of Law No. 25 of 1971 on Promulgating the Convention of Civil Aviation

Executed in Chicago on December 7, 1944, and the Minutes of Supplements and Its Signa-tures, dated March 26, 1998

• Government Decree 19/1993.(I.29.) announcing the EUROCONTROL Convention

AAcctt XXLLIIII ooff 22000000 oonn WWaatteerr TTrraannssppoorrtt

• Act CXIV of 2000 Promulgating the Minutes of Supplement, dated March 26, 1998, to theTreaty of Belgrade on Navigation on the Danube, dated August 18, 1948, and Its Minutes ofSignatures

• Government Decree 237/2002. (XI.8.) On the Powers, Responsibilities, and Competence ofShipping Companies

• Government Decree 151/2000. (IX. 1.) on the Promulgation of the European Agreement onSignificant International Waterways

• Decree 50/2002. (XII.29. ) GKM on the Construction, Occupation, Operation, and Elimination ofPorts, Ferries, and Other Shipping Facilities

• Decree 49/2002. (XII. 28.) GKM on the General Rules of Operating Ports, Ferries, and OtherShipping Facilities, and on the Implementation of these Rules

• Decree 17/2002. (III. 7.) on the Designated Waterway Status of Potentially or Actually Naviga-ble Surface Waters, Natural or Artificial

• Decree 13/2001. (IV. 10.) KöViM on the Fitness, Inspection, and Certification of Floating In-stallations for Inland Waterways

• Decree 28/2000. (XII. 18.) KöViM on the Procedure of Licensing Navigation Activity

AAcctt XXXXII ooff 11999966 oonn RReeggiioonnaall DDeevveellooppmmeenntt

Resolution of the National Assembly 35/1998. (III.20.) OGY on the National Concept for Regional De-velopment

Government Decree 184/1996.(XII.11.) on the Debate and Adoption of Concepts, Programs, and Plansof Regional Development

AAcctt XXXXVVII ooff 22000033 oonn tthhee NNaattiioonnaall PPllaann ffoorr RReeggiioonnaall DDeevveellooppmmeenntt

AAcctt LLXXVV ooff 11999900 oonn LLooccaall GGoovveerrnnmmeennttss

AAcctt LLXXXXVVIIII ooff 11999977 oonn tthhee DDeevveellooppmmeenntt aanndd PPrrootteeccttiioonn ooff tthhee BBuuiilltt EEnnvviirroonnmmeenntt

Government Decree 253/1997.(XII.20.) on the National Criteria of Community Development and Con-struction

AAcctt LLIIIIII ooff 11999955 oonn tthhee GGeenneerraall RRuulleess ooff PPrrootteeccttiinngg tthhee EEnnvviirroonnmmeenntt

AAcctt LLIIIIII 11999966 oonn EEnnvviirroonnmmeennttaall PPrrootteeccttiioonn

Documents

HUNGARIAN TRANSPORT POLICY - Central European Universitypdc.ceu.hu/archive/00002617/01/Hungarian_Transport_Policy_2015-ig_angol.pdf · HUNGARIAN TRANSPORT POLICY 3 In modern societies,