Presentation on VDV Congress, Halle, 26th September, 2007

1. LIBERALISATION OF THE HUNGARIAN RAIL INDUSTRY ANTAL, Dániel p r e s i d e n t H a l l e , 26 th September 2007.

2. Hungarian Rail Office 2007 Hungary: railway networks

3. Railway network density 2006, km/1000 km 2 Hungarian Rail Office 2007

4. Electrified lines 2006, % of total network Hungarian Rail Office 2007

5. Double track lines 2006, % of total network Hungarian Rail Office 2007

6. Modal split in freight transport EU-27, 2005 . Hungarian Rail Office 2007 With longer transport distances and lower population densities, railways are more competitive in Central- and Eastern European countries. The downside is the lower cost-efficiency pressure. The Czech Republic, Finland, Hungary and Slovenia has more favourable modal split than other EU countries. Austria, Estonia, Latvia, Lithuania, Poland, Romania, Slovakia, Sweden have even higher shares of the rail mode. Hungary: relatively high rail ma r ket share in the intermodal competition, access to more rail-dependent economies such as Romania, the Ukraine.

7. Staff per network kilometre , 2005. Hungarian Rail Office 2007

8. Rail network access charges EU-27, 2005. Hungarian Rail Office 2007 EU15, Romania, Bulgaria, the Czech Republic and Slovenia offers lower access charges. Poland, Slovakia, Latvia offer higher access charges. Hungary, Lithuania, Estonia offers similar access charges. New members state generally do not give state aid for the maintenance of the rail infrastructure, but offer access to fast growing transport markets. The infrastructure managers in these countries also have low efficiency. Hungary: competitive access prices to/from Ukraine, Romania and Southern Eastern Europe.

9. Rail network access charges EU-27, 2005 . Hungarian Rail Office 2007 Estonia, Latvia, Lithuania: wide gauge, higher access fees, higher traffic density. Poland, Slovakia: higher access fees, higher traffic density. Portugal, Denmark: lower access fees, lower traffic density. Other EU: lower access charges, lower traffic density. Hungary: competitive access prices to/from Ukraine, Romania , Serbia and Southern Eastern Europe. New initiatives to facilitate border crossing to/from Croatia, Serbia.

10. Hungarian Rail Office 2007 Hungary: rail freight markets

11. Rail freight transport in million ton-kms, 2006. Hungarian Rail Office 2007

12. 1000 ton-kms per network-km , 2006. Hungarian Rail Office 2007

13. Herfindahl-Hirschmann Index in Hungary , 2005-2007. Hungarian Rail Office 2007

14. Modal split in freight transport, EU-27, 2005 . Hungarian Rail Office 2007

15. Hungarian Rail Office 2007 Hungary: passenger markets

16. Passengers per population, 2005 . Hungarian Rail Office 2007

17. Million passenger-kilometres in 2006 . Hungarian Rail Office 2007

18. Change in passenger-kilometre (% , 2001-2006) Hungarian Rail Office 2007

19. Hungarian Rail Office 2007 Hungary: institutions

20. Rail Liberalisation Index , 2004 . Hungarian Rail Office 2007

22. Licensed RUs in Hungary Hungarian Rail Office 2007 CER members: MÁV, MÁV Cargo, GySEV, VPE, CER and MAVE (pro-rail industrial lobby group) ERFA members: currently none. EIM members: currently none. 15 20 20 Passenger transport (regional) 3 2 2 Passenger transport (EEA relevant) 3 0 0 Freight transport (regional) 13 11 7 Freight transport (EEA relevant) 2007-09-25 2006-12-31 2005-12-31 Number or licenses issued

23. Scope of authority, decisions, clients Hungarian Rail Office 2007 The Hungarian Rail Office

24. Scope of authority Established on 1 January 2006 without legal predecessor as an institution. Licensing authority : In Hungary all freight, pass e nger and infrastructure services have to be licensed. The Hungarian Rail Office is a licensing authority under the scope of Council Directive 95/18/EC and is a successor of previous licensing authorities. Similar national licensing scheme for regional, suburban, local and private railways, and for the two national infrastructure managers, MÁV Zrt and GySEV Zrt ( Raaberbahn ). Regulatory body : The Hungarian Rail Office is the regulatory body under the scope of Directives 91/440 EEC and 2001/14/EC. No predecessor in this authority, cannot take on cases before 2006. Passenger rights : The Hungarian Rail Office approves the general terms of agreement for all rail passenger carriers in Hungary. A new Passenger Rights Ombudsman was appointed on 31 August 2007. HRO will be responsible for the implementation of the forthcoming Community legislation. The current tasks are stipulated by national railway law. Other tasks : Oversight of accounting separation, some regulation on the freight market, some tasks related to state aid in the railways sector. Tasks stipulated by national railway law. Safety certificate have to be approved by the National Transport Authority, which is responsible for safety regulation in all transport segments. Hungarian Rail Office 2007

25. Decisions of the Hungarian Rail Office Decisions : The decisions of the Hungarian Rail Office are based on its procedures. The decision is always taken by the president in one person. The president may delegate decisions to the vice-president or the head of units by types of case or on a case-by-case basis. No such delegation exists: the vice president makes decisions if legal deadlines would be risked by an unforeseen emergency. The president may appoint a Council of Advisors who may form an opinion on decisions. The Council will be appointed by 2008. Transparency & client rights : The procedures of HRO are regulated by Act CXL 2004 on general rules of public administrative procedures and services with few modifications. The procedures are public for the interested parties. All the decisions of HRO, and with very few limitations the full text of the legally binding justification (the legal facts, other facts which are not confidential, the full interpretation of the facts) is published on www.vasutihivatal.gov.hu . Procedures: http://www.magyarorszag.hu/english/keyevents/a_kozig/a_foglalk/a_alligazelj20051026 Independence from political decisions : The minister of economy and transport is the supervisor of the institutions (general budgetary and procedural issues). The Act on Rail Transport prohibits the minister to overrule the decisions of HRO which are subject only to judiciary oversight. The minister on the other hand cannot make decisions for HRO, which rules out any influence on the decision-making process. Judiciary oversight : The decisions of HRO cannot be modified by any body of the Hungarian government. The decisions are immediately binding and are subject to two-tier judiciary oversight. During such a process the judiciary may temporarily suspend the decisions. Hungarian Rail Office 2007

26. Decisions of the Hungarian Rail Office Total no. decisions in 2007 (2006) 116 (26) including procedural and other EEA relevant licences decisions Freight +8,-2 (+3) http:// vasutihivatal.gov.hu/vasut_tarsasagok/arutovabbitas Passenger +3 (0) http:// vasutihivatal.gov.hu/vasut_tarsasagok/szemelyszallitas National licence decisions Infrastructure +1 (0) Private infrastructure 29 (0) http:// vasutihivatal.gov.hu/palyahalozatok Regional railway +16 (0) Suburban railway 0 (0) Regulatory decisions Capacity-allocation 1 (1) Terms & pricing 2 (1) Business conduct 2 (0) http:// vasutihivatal.gov.hu/hivatal/ugyintezes/piacfelugyelet Fines imposed MÁV Zrt: 50 million HUF VPE Kft (CAB) 5 million HUF Hungarian Rail Office 2007

28. Thank you for your attention Hungarian Rail Office 2007