TRIESTE – Rail freight transport in Hungary is facing an increasingly critical situation. In the first quarter of 2026, the sector recorded another decline in transport volumes, while operating costs rose and revenues fell, further eroding its competitiveness compared to road transport.

This is what emerges from the latest cost index compiled by HUNGRAIL, the association of Hungarian railway companies, which warns that without swift government action, the role of rail in national logistics risks being further diminished.

Demand for rail transportation has been declining for three years now. Weakness in industry, agriculture, and exports has reduced the volumes of goods traditionally transported by rail, such as steel, chemicals, grains, fertilizers, and construction materials. In the first quarter of 2026, the sector’s performance, measured in ton-kilometers, declined by 4.5% compared to the same period the previous year, while domestic traffic plummeted by 13.2% and international traffic by 3.5%. Since 2023, the decline has been particularly severe: the weight of goods transported has fallen by 22%, while overall performance has dropped by 18%.

At the same time, costs continue to rise. In the first quarter of 2026, the unit cost of rail freight transport increased by 4.1% year-over-year, despite the cost-cutting and workforce reduction programs implemented by companies. The main factors driving these increases are higher costs for traction, operations, maintenance, and personnel, as well as infrastructure issues that slow down train traffic and increase travel times.
However, companies are unable to pass these price increases on to their customers. Average revenue per metric ton-kilometer actually decreased by 2.6% compared with a year earlier, partly due to the strengthening of the florin, which reduces the value in local currency of revenue earned in euros from international traffic.

According to HUNGRAIL, the combination of weak demand, rising costs, and competitive pressure from road transport is undermining the economic sustainability of rail companies. If the situation does not change, the sector risks further capacity cuts, delayed investments, and a gradual loss of market share, which would also jeopardize the European goals of shifting freight traffic from road to rail.