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Steady growth, expanding presence: DB Cargo Hungária is building a long-term future in the region

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Despite the challenging market environment, DB Cargo Hungária Kft. continues to operate steadily and is preparing for growth in the coming years by strengthening the rail corridor between South-East and Western Europe and developing its battery logistics operations.

The background discussion began with a site visit to the DB Cargo Hungária terminal in Győr, during which the company’s senior executives, Managing Director Dr Jan Busch and Financial Director Tímea Falviné Lukács, gave a detailed presentation of the company’s development, current operations and future plans. Behind today’s diverse range of logistics activities lies more than two decades of deliberate development.

 

A quarter of a century of development: from a single track to a complex logistics centre

We previously reported that a new track and maintenance base are set to strengthen the Győr rail terminal. In connection with this development, we approached the company for a comprehensive interview covering issues within the logistics sector.

„When DB Cargo purchased this site in 1999, there was nothing here but a single pair of tracks and a gravel yard. By contrast, today we operate a complex logistics centre serving multiple business sectors, which clearly illustrates the progress made over the past 25 years”

– recalled Dr Jan Busch.

The initial aim was to establish a direct rail link between Germany and Western Hungary; not only has this been achieved, but it has also far exceeded the original plans. In the early stages of the company’s history, establishing links with the automotive industry played a key role, particularly in securing the contract with Audi Hungaria.

„Winning the tender from Audi Hungaria for railway maintenance services was a turning point for us, as it not only provided us with a stable customer base but also set out a long-term direction for our development”

– said the company director.

The 2016 investment marked another milestone: it was then that the specialised hall was built, capable of storing automotive press tools weighing up to 40 tonnes.

Battery logistics: a new business sector, new requirements

One of the most rapidly growing sectors in recent years has been battery logistics, for which the company has carried out significant infrastructure developments. Preparations began as early as 2020.

„Handling batteries requires completely different conditions to those for conventional goods. Transhipment must take place in a closed, controlled environment and must comply with strict safety regulations” – emphasised the managing director.

To this end, a covered hall has been built that connects directly to the railway line, thus ensuring fast and efficient transhipment between road and rail. The system is simple in design but capable of handling large volumes: batteries arriving by lorry are transferred to railway wagons, which then transport them to destinations in Western Europe via regular services.

„A single rail wagon can carry up to 55 tonnes of batteries, meaning it can replace three lorryloads of goods, which is a significant advantage not only in terms of efficiency but also from an environmental perspective,” the managing director pointed out.

He then added: „As this involves dangerous goods, all our staff undergo special training, and the entire process is carried out in accordance with strict regulations.”

New maintenance capabilities: efficiency and operational reliability

As we have reported, the latest developments at the Győr terminal include the construction of a maintenance track and the associated pit, which will significantly improve operational efficiency. Previously, all operations – shunting, battery logistics and maintenance – took place on a single track, which required complex organisational coordination.

„This new 120-metre track and the shaft allow us to carry out daily inspections in parallel with our operational tasks. This not only makes our operations faster and more predictable, but also increases our capacity.” said the managing director.

The technical specifications of the infrastructure are also noteworthy: the pit can support loads of over 120 tonnes, which means it can also be used for the maintenance of heavy diesel locomotives. The track is wide enough to accommodate two locomotives, and both can be easily accessed from either side using heavy-duty cranes or forklift trucks.

„A single locomotive can weigh up to 50 tonnes, and during an engine replacement we work with components weighing 20 tonnes. Adequate load-bearing capacity and state-of-the-art service infrastructure are essential for this,” he explained.

The track and associated shaft have been adapted for minor maintenance work; more complex tasks are still carried out on the company’s behalf by partners at dedicated facilities.

The development has also taken environmental considerations into account: the shaft is equipped with an oil trap system and appropriate drainage, which prevents any harmful substances from accidentally entering the environment.

 

Locomotive fleet and sustainability initiatives

One of the key elements of the terminal’s operations is its own haulage capacity, which the company has deliberately built up over the past few decades.

„We have a total of 19 diesel shunting locomotives, which we have purchased from our parent company in Germany over the past 25 years, and we are constantly upgrading and maintaining them. This fleet is currently sufficient to handle existing volumes, although, of course, capacity requirements are always determined by market demands and customer expectations” – said Dr Jan Busch.

Maintaining the locomotive fleet is not only an operational issue but also a strategic one, particularly in a market environment where flexibility and availability represent a key competitive advantage, whilst the technologies of the future are already on the horizon:

„In the longer term, we are of course also looking into the possibility of purchasing battery-powered locomotives, as these are already available on the market. However, our current operational structure – where locomotives are constantly on the move – does not yet allow for their efficient use, primarily due to limitations in energy storage capacity. At present, diesel traction represents the stable and reliable solution for us, providing the necessary flexibility and availability.”

Sustainability is also a key consideration in this area. The company is exploring the potential use of hydrogenated vegetable oil (HVO), which could significantly reduce its environmental impact.

„HVO is already being used in Germany as an alternative fuel, and we are also looking into the possibility of introducing it. It is a more environmentally friendly solution, but at present it remains a challenge to „find” a suitable supply chain in Hungary, and it is also more expensive than conventional diesel” – he added.

 

Nationwide coverage and a wide range of activities

In addition to its site in Győr, the company has a presence in several other industrial centres and provides comprehensive rail logistics services. At its automotive plant in Kecskemét, for example, rail services are operated in a similar way to those in Győr: shunting and marshalling tasks are carried out using the company’s own locomotives and staff.

They also have a presence in Debrecen, Foktő and Kalocsa, where they cater to the logistics needs of various sectors – from the automotive industry to agriculture.

 

Market challenges: slowdown and adaptation

„An economic slowdown has been observed not only in Hungary but across Europe as a whole in recent times, which has had a direct impact on our sales volumes. Overall, we have seen a decline of around 10 per cent across the entire market” – the managing director reported.

The downturn primarily affected the automotive industry, which is one of the company’s most important customer segments.

2025 was a particularly difficult year, yet we managed to maintain our stability and remain profitable, which is a significant achievement in this environment. In 2026, we expect the situation to stabilise and even see slight growth. We see particular potential in the e-car battery logistics business.”

– he emphasised.

 

Sectoral realities: infrastructure and competitiveness

The discussion also touched upon the future of domestic and European rail freight transport, with particular regard to growth targets. In response to a suggestion regarding the objectives set out in the National Logistics Concept 2030–2035 (Hungary could double its current rail freight transport performance by 2035, whilst at least a 50 per cent expansion is expected in the sector by 2030. – Ed. ) a cautious response was received:

„The targets for doubling rail freight transport do not appear realistic in their current form. This would require significant infrastructure developments, which would take many years to complete”

– said Dr Jan Busch.

He is not alone in this view, as the question was also put to participants at the Magyar Vasút 360° conference, where the question was put to the participants, none of whom indicated their agreement regarding the feasibility of the project.

The problem is not just a domestic one, but a European one: „If a development project isn’t launched today, it certainly won’t be realised in the next 5–10 years, and this limits opportunities for growth,” he said.

At the company’s head office , Tímea Falviné Lukács, Financial Director , also joined the discussion, highlighting the condition of the track network as one of the challenging circumstances:

„Due to a lack of maintenance over recent decades, the infrastructure in many places is simply not capable of supporting fast and efficient transport. Road transport is able to respond more quickly to market demands; it is more flexible and, in many cases, cheaper too, which creates a serious competitive challenge for us”

- informed.

The finance director emphasised that cost trends also present a challenge:
„Track usage fees are constantly rising, whilst in many cases we operate on the basis of pre-agreed, fixed prices, so these increases directly undermine our competitiveness.”

Cost pressures are also felt in day-to-day operations. A particular challenge for operators in the rail freight sector is that, whilst certain price regulation mechanisms are available in the road transport sector, these are not available for rail. As a result, controlling costs and ensuring operational predictability often presents a challenge.

Professional representation plays an important role in the functioning of the sector. In addition to the Hungrail Hungarian Railway Association, the company is a member of the Győr-Moson-Sopron County Chamber of Commerce and Industry and the German-Hungarian Chamber of Industry and Commerce, which ensures that the railway sector’s perspectives are taken into account in policy-making decisions.

Returning to the state of the infrastructure, the finance director emphasised that the section of track is in need of renovation, and that traffic is being hampered by slow signals and speed restrictions due to maintenance work that has been neglected in previous years. These factors limit both the capacity and reliability of rail freight transport.

The situation is evident not only domestically but also internationally: traffic from neighbouring countries is also constrained by the existing infrastructure, meaning that capacity shortages and bottlenecks affect the entire logistics chain. The condition of recently completed sections of track, for example, indicates that the need for renovation will remain a key factor for the sector in the long term.

 

Vision: stability, growth, regional strengthening

To round off the discussion, the company’s executives also spoke about their future plans. The aim is clear: stable financial performance and a strong market position.

„From a financial perspective, our primary objective is to maintain profitability and ensure stable, predictable operations, backed by adequate financial reserves” – said Tímea Falviné Lukács.

The growth strategy is based on several pillars. The focus is, on the one hand, on providing a high standard of service to existing partners and, on the other hand, on attracting new customers.

„Our primary aim is to continue providing our existing partners with a high-quality service, whilst also attracting new players from the automotive and industrial sectors,” said Dr Jan Busch.

Strengthening the company’s international presence is a key priority in its strategy:

They attach particular importance to the development of the rail corridor linking South-Eastern and Western Europe, which they intend to further strengthen in cooperation with the other subsidiaries of the DB Cargo Group, thereby increasing their regional involvement.

Improving traction capacity is also on the agenda: there are plans to replace the current leased locomotives with company-owned electric locomotives, which should enable more efficient and predictable operations in the long term.

Investment is also continuing at terminal level, with market demands clearly dictating the direction of these developments. Accordingly, the primary focus is on expanding battery logistics capacity and further developing the maintenance infrastructure.

The operation of the DB Cargo Hungária serves as a good example of how rail logistics remains a key player in supply chains. The company’s strategy builds on both a solid foundation and future technologies, whilst actively responding to the challenges facing the sector.

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