Hungary secures controlling stake in regional railway operator GySEV

Construction and Transportation Minister János Lázár said in a social media post on Thursday that the state of Hungary could acquire Austrian construction company Strabag’s stake in GySEV (Győr-Sopron-Ebenfurti Vasút), giving it a majority holding in the regional railway company.

GySEV, the regional railway company

GySEV is a regional railway company operating in Hungary and Austria. Founded in 1872, it manages railway services across the western regions of Hungary and parts of Austria, including both passenger and freight transportation. It plays a significant role in connecting smaller towns and cities, fostering cross-border transportation and trade between the two countries.

Hungarian state is in the majority

Lázár called out Hungary’s earlier Socialist governments for signing contracts with the Austrians that had put the Hungarian side at an “unwarranted disadvantage”. While the state of Hungary plowed even more money into GySEV, the Austrians failed to keep up with their part of the capital raises while keeping their veto right, he added.

He noted that GySEV was owned by the states of Austria and Hungary, and Strabag. He added that Austria’s competition authority has now cleared Hungary’s acquisition of Strabag’s stake.

As the Minister stressed:

The transaction is good news for all passengers and employees of Hungarian railways. The development of GySEV, which was also achieved with Hungarian taxpayers’ money, will now make a tangible contribution to the catching-up of MÁV.

This will be much needed because the Hungarian State Railways, MÁV is in a terrible condition, and Minister Lázár has received a lot of criticism for the staggering delays, the postponed renewal of the railway tracks, and the old fleet.

As we wrote earlier, MÁV has set a new negative record in August, with a record percentage of trains running late, read details HERE.