Hungary has started the largest railway infrastructure modernization project in a century to boost development. The government plans to invest €1.5 billion (€600 billion HUF) over the next two years. This was reported by the railway transport news portal Railway Supply.

Railway Infrastructure Modernization Project
Photo: MÁV

The Ministry of Construction and Transport announced the project will span the Seged – Kecskemét – Cegléd – Budapest route. Covering 165 kilometers, it marks Hungary’s most significant transport development initiative in recent history.

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Seged, situated near Serbia and Romania’s borders, holds strategic importance for Hungary’s economy. The project aims to improve workforce mobility and expedite exports to Western Europe.

Hungary: Railway Infrastructure Modernization Project to Stimulate Exports

The project consists of several phases, each carrying strategic importance for Hungary’s transport system. The first stage involves sections from Seged to Kiskunfelégyháza and from Kiskunfelégyháza to Cegléd. These sections support automotive giants such as BYD and BMW.

Seged houses production facilities for the Chinese company BYD, while Debrecen hosts a BMW factory. These railway sections will be upgraded to double-track lines, increasing transport efficiency.

Hungary: Railway Infrastructure Modernization Project to Attract Investments

By 2025, the government will launch construction in Kecskemét, where a multimodal transport hub is planned. The next phase will address the Lajosmizse – Budapest section, connecting the national railway network efficiently.

The project’s funding will rely on European Union contributions and additional loans. These investments are expected to significantly enhance Hungary’s economic competitiveness in global markets.

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