MÁV-REC Ltd. signed a bilateral cooperation agreement in China

MÁC-REC Ltd and the Central European Trade and Logistics Cooperation Zone signed a bilateral cooperation agreement on 12th of November, 2019 in China. The ceremonial signing took place in the Embassy of Hungary in Beijing in the presence of Dr László Palkovics Minister for Innovation and Technology. The first step of the development plan is to set up a consortium led by MÁV-REC Ltd who is responsible for the operational implementation of the project. The partners agreed to establish stronger ties between Záhony and inland China by establishing connection via Kazakhstan, Russia and Ukraine through cooperation in logistics and rail transport. This would allow for further opportunities to boost commerce between the countries concerned.

Due to its geopolitical position, geographical location and convenient accessibility, Hungary is considered a high priority strategic partner for China. Also, considering China’s size and economical importance, it is highly beneficial for our country to have a strategic partnership with such a country where we can efficiently represent our foreign and economic interest. Záhony’s strategic importance for China is significant. Currently China is in support of the diversification of inland routes to Europe. Consequently, within the framework of BRI (Belt and Road Initiative) that aims to boost the economy, China places an emphasis on creating an alternative route besides the congested Belarusian-Polish railway line which has substantial traffic. Thus, Hungary has an opportunity to play a significant role in the Chinese container traffic. Záhony signifies a geographical boundary since this is where standard and broad track gauges meet. The container traffic arriving through the Silk Road represents an important opportunity for Záhony as well as for our country because it enables us to participate in the logistics of the global trade in goods. CECZ as an overseas international economic operator supported by the Ministry of Commerce of the central government of the People's Republic of China and the People’s Republic of Shandong is ready to start the container trade in the new railway lines of the Silk Road. The partners agreed that CECZ will join as a consortium partner to the Záhony Logistics and Industrial Zone Consortium after its successful kick-off. The partners will collaborate on a number of areas including the technical modernization of container handling methods, introducing new IT solutions in order to increase the effectiveness of custom handling and establishing training programs to ensure the increase of trade in goods.