THE HUNGARIAN RAIL MARKET & REGULATOR

ANTAL, Dániel p r e s i d e n t

S o p r o n, 10th September 2007.

Comparison of Austria and Hungary

Scope of authority, decisions, clients

Hungarian Rail Office 2007

The Hungarian Rail Office

Scope of authority

Established on 1 January 2006 without legal predecessor as an institution.

Licensing authority: In Hungary all freight, passenger 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

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

Decisions of the Hungarian Rail Office

Total no. decisions in 2007 (2006)116 (26) including procedural and other

EEA relevant licences decisionsFreight +8,-2 (+3) http://vasutihivatal.gov.hu/vasut_tarsasagok/arutovabbitasPassenger +3 (0)http://vasutihivatal.gov.hu/vasut_tarsasagok/szemelyszallitas

National licence decisionsInfrastructure +1 (0)Private infrastructure 29 (0)http://vasutihivatal.gov.hu/palyahalozatokRegional railway +16 (0)Suburban railway 0 (0)Regulatory decisionsCapacity-allocation 1 (1)Terms & pricing 2 (1)Business conduct 2 (0) http://vasutihivatal.gov.hu/hivatal/ugyintezes/piacfelugyelet

Fines imposedMÁV Zrt: 50 million HUF VPE Kft (CAB) 5 million HUFHungarian Rail Office 2007

Hungarian Rail Office 2007

Hungary: rail markets and regulation

International freight transport 1973-1997

Hungarian Rail Office 2007

0%

20%

40%

60%

80%

100%

1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997

Year

Frei

ght t

on (t

hous

and)

West East South North

Market concentration in freight transport

Hungarian Rail Office 2007

0%

20%

40%

60%

80%

100%

2005 2006

MÁV Other RUs

Herfindahl-Hirschmann Index in Hungary

Hungarian Rail Office 2007

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

10000

2005 2006 N1 2006 N2 2006 N3 2006 N4 2007 N1 2007 N2

Herfindahl-Hirschmann Index accounted by sale

Herfindahl-Hirschmann Index accounted by ton kilometers

Rail freight tonne kilometres, billion

Hungarian Rail Office 2007

0,00

2,00

4,00

6,00

8,00

10,00

12,00

1970 1980 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

n.d. n.d. n.d.

Rail freight tonne kilometres, million

Hungarian Rail Office 2007

0

2 000

4 000

6 000

8 000

10 000

12 000

14 000

16 000

18 000

20 000

2001 2002 2003 2004 2005

Austria Hungary

Contact to Hungarian Rail Office

» Street address: H-1088 Budapest, Múzeum utca 11.(near to Hungarian National Museum)http://vasutihivatal.gov.hu/hivatal/approachofhro

» Letters: Pf 132, 1461 Budapest» www.rail.gov.hu» Phone: +36 1 511 3131» Fax: +36 1 511 4669

Hungarian Rail Office 2007

Thank you for your attention!

Hungarian Rail Office 2007