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GKI Economic Research Co. conducted an analysis commissioned by the National Transport Authority (NKH) about European practices of long-term contracts between the state and rail companies and their most important experience with implications for Hungarian contracts. Furthermore, due to interviews with stakeholders we could introduce numerous elements of provider-focused rail approach.

GKI Economic Research Co. conducted an analysis commissioned by the National Transport Authority (NKH) about European practices of long-term contracts between the state and rail companies and their most important experience with implications for Hungarian contracts. Furthermore, due to interviews with stakeholders we could introduce numerous elements of provider-focused rail approach.

In this study, first, the most important European directives, problems and practices were reviewed, second, the rail-related long-term contracts of United Kingdom, Germany and France were analysed. When preparing the analysis, we introduced international examples in line with the structure of the Hungarian draft contracts, in order to ensure the comparability and the possibility of drawing conclusions. The opinion of the most important stakeholders regarding the Hungarian draft contract was gathered in the study.

The draft agreement prepared in 2009 was not prepared appropriately and thus, it does not serve the long-term interests of the state, the rail companies and those who are authorized to access to the rail infrastructure. In contrast to European expectations and practices, in the Hungarian draft agreement the indicators of performance, security, quality and some other features are missing or they are incidental, and they are not connected to financing either. The draft agreement does not contain the determination of target values or any contract-related responsibilities, incentives and sanctions, leaving out fundamental elements of international practice. Nevertheless, without these factors, it is hard to realize the provider-focused model of rail as well as the idea of growing rail in a sustainable way in the long-term.

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