Hungarian parliament decides: national transport authority can be established

The National Assembly has adopted the law that will launch one of the most significant institutional restructurings in Hungarian public transport in recent decades. Under the decision, a national transport authority will be established, gradually taking over the commissioning and organising responsibilities for state-ordered suburban, regional and national passenger transport services, while a national rolling stock company (ROSCO) will also be set up. The aim of the new institutional system is to organise public transport within a more unified, efficient and transparent framework, and to ensure a modern ownership and financing model for rail vehicles purchased with public funds.

The national transport authority will not operate as a transport service provider, but as the commissioner, coordinator and controller of public services, meaning it could play a role at national level similar to that of the Budapest Transport Centre (BKK). Its tasks will include, among others, preparing national, regional and suburban timetables, providing unified passenger information, coordinating ticket and pass sales, defining the technical requirements for the ticket inspection system, coordinating the operation of bus stations, developing connections between transport modes, and coordinating the procurement of clean and zero-emission vehicles. The new, wholly state-owned, privately held joint-stock company will be established with founding capital of HUF 55 million, while the state will provide a further HUF 445.3 million for its operation in 2026, including the amount increased by the Treasury account management fee.

The minister responsible for transport will transfer a number of commissioning powers currently exercised directly by him to the national transport authority, which in future may act on the minister’s behalf in the conclusion, amendment and implementation of public service contracts. It will also play a key role in preparing the future competitive tendering of rail passenger services. The detailed division of responsibilities will be regulated by a separate ministerial decree, while the minister will continue to exercise professional oversight over the new organisation, assess its performance annually and, where justified, may also veto certain decisions taken by the body.

Another important element of the law is the establishment of a national rolling stock company. Known internationally as a ROSCO, the company may take ownership of rail vehicles purchased with public funds and could be responsible for preparing and financing procurements, as well as managing the vehicles throughout their entire life cycle. The model will allow the winners of public service tenders to use the state-owned vehicle fleet under competitively neutral conditions.

The transfer of responsibilities will take place in several stages. According to the plans, the national transport authority will take over the commissioning rights and obligations related to current national public service contracts from 31 August 2026, along with several professional tasks currently carried out by KTI and organisations within the MÁV Group.

The establishment of the two new organisations is also of key importance for drawing down European Union funding for railway development. According to the government’s position, setting up the national transport authority and the rolling stock company is a fundamental condition for Hungary to access the roughly EUR 1.8 billion rail vehicle procurement envelope available under the Recovery and Resilience Facility. This funding is planned to finance primarily the procurement of new HÉV suburban rail trains and intercity multiple units.