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Rail Cargo Hungaria is a reliable taxpayer as classified by National Tax and Customs Administration (NAV)

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The National Tax and Customs Administration (NAV) has classified Rail Cargo Hungaria (RCH) as a reliable taxpayer after examining the company's compliance with the Administration's standards. Such standard is among others that the company must not be under intensive supervision of tax authorities in the past five years; the authority has not initiated an execution proceeding against the company as well as the company was not subject of bankruptcy, liquidation, or involuntary deregistration. A total of 11 criteria had to be met for this classification.

The positive result of the status of the reliable taxpayer compared to the general status is among others that RCH gets the VAT refunds already after 45 days instead of 75, a significant contribution to the company's liquidity. In case of omission the authority does not impose a fine, but invites the company to fulfil the tax obligations. The tax or default penalty is only the half of the amount the Administration would normally impose. Another advantage is the length of the official controls must not exceed 180 days. This classification overall is another confirmation towards our customers that our company is a reliable partner.

The authority reviews quarterly the criteria necessary for the status of reliable taxpayer. RCH is doing its best to comply with them in the future as well.

Sugar beet again this year

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Rail Cargo Hungaria Zrt. is again a successful participant at the annual sugar beet tender of Magyar Cukor Zrt.

Viktor Lippai, former head of RCH's Business Unit MACE told that after several rounds of negotiations Rail Cargo Hungaria agreed upon the prices and the operative service quality with Magyar Cukor Zrt. This enabled Rail Cargo Hungaria to obtain the vast majority of the transportation tasks in the almost traditional sugar beet campaign. This year's tender presented several new challenges to the company, but eventually an agreement acceptable to both parties was reached.

The calculation of the upcoming campaign demanded extraordinary foresight from the colleagues of operation and commerce while preparing the offers. On one hand, the rail track closures planned by Vasúti Pályakapacitás-elosztó Kft., the distributor of railway capacities change unpredictably the well-established routes. On the other hand the capacity of wagons of type Ea has narrowed due to the simultaneous increasing raw material traffic and the starting infrastructure developments in Hungary. Furthermore in domestic sugar beet transportation relations the road transport has become competitive; in some geographical areas there are no significant differences between the costs of rail and road solutions.

A remarkably stable multi-level relationship has been established between the customer and Rail Cargo Hungaria thanks to their long-lasting cooperation. The parties were seeking possibilities to reach an acceptable agreement – although both represented firmly their own interests.

Viktor Lippai sees Rail Cargo Hungaria's real power in its good customer relations. These relations enable to handle and watch closely and protect long-term projects similar to the sugar beet campaign, which contributed to the success of the company in the intensifying transport market competition.

All colleagues working on all company levels throughout the sizing, project-planning, preparation of calculations and performance do their best to reach the successful outcome, which characterises such customer relations.

COSCO contributes to dynamic development of Chinese-Hungarian relations

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Budapest, May 25, 2017. – A further contribution to facilitate the Chinese-Hungarian economic relations was the business meeting called in by the Hungarian commercial representative of COSCO SHIPPING Lines, one of the world's leaders in integrated container shipping companies. Participants at the event in Budapest were COSCO's major partners in Hungary and leading representatives of authorities related to its activities. On the schedule were the use of undiscovered business opportunities and the role of the bilateral relations in the international presence of both parties.

During the event in a constructive atmosphere Luo Zhongming, Central-European executive director of COSCO SHIPPING Lines made an introduction to the Hungarian development plans of the global company, followed by Zhou Xinjian, commercial and economic councillor of the Embassy of the People's Republic of China in Hungary evaluating the bilateral commercial relations.

On behalf of the Ministry of National Development deputy state secretary dr. László Mosóczi greeted the participants, and emphasized the exceptional role of transportation and traffic in multilateral relations. He pointed out Hungary's central geographical position and advanced infrastructure, which could make the country a good distribution base for the export of Chinese goods to the European Union. . A In In this regard COSCO made exemplary steps: it sends Chinese goods via block trains from the port of Piraeus to the intermodal logistic centre Rail Cargo Terminal – BILK, enabling the further transport by rail or road to the European markets.

The eminent representatives of the Hungarian economy stressed their commitment for the common projects and confirmed that they would welcome if COSCO made Hungary for one of its central base of intermodal traffics. drs. Erik Regter, member of the board of directors of Rail Cargo Group underlined the key role of Budapest in establishing commercial relationships, for the city might be the hub of Europe in the Chinese-Hungarian transport of goods. In his speech he highlighted the major importance of the existing and growing volume business relations with COSCO for the railway company group. The Hungarian subsidiary of the group, Rail Cargo Hungaria already runs more and more block trains from COSCO's port in Piraeus to the Rail Cargo Terminal – BILK logistic centre.

Brigadier general Károly Szabó from the National Tax-and Customs Administration (NAV) emphasized the role of NAV in strengthening and developing the economy. The tax authority shall increase its activity to meet the needs of international freight transport more effectively.

The participants of the partners' meeting praised the successes of the emerging cooperation, under which Rail Cargo Hungaria, MÁV, NAV, Disaster Management and COSCO jointly engage against circumstances interfering smooth logistic processes. Recently the possibilities of accelerating the currently – due to the migration crisis – slow border transfers container trains was discussed by the parties. Christina Baboulaki the representative of COSCO's container terminal in Piraeus introduced her presentation the significant further perspectives of the recently initiated cooperation. After the meeting the participants agreed in tightening their relations in the future.

Notification about introduction of customs office code

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Dear Partner,

On behalf of the request of NAV (Hungarian Tax and Customs Authority) we hereby inform you, that for the sake of the unification of the forwarding of goods in the European Union, the indication of the destination's customs office code on the consignment note becomes necessary.

This change means that upon entry at the external border station (Eperjeske/Záhony/Kelebia) for non-EU consignments of all forwarding processes (dispatched by RCH or by other railway undertakings) the name and code of the customs office at destination must be provided.

Accordingly we request that the name and the 8-digit-code of the customs office at destination to be indicated in the field No. 7 "the consignor's statements" of CIM and CIM/SMGS consignment notes. (example.: HU101000; NAV Dél-Budapesti AVI).

Please apply the changes described above immediately after the receipt of this notification.

Please find below our notification about introduction of customs office code:



Rail Cargo Hungaria Zrt. becomes more competitive in eastbound traffic

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Rail Cargo Hungaria successfully improved the eastbound traffics' conditions, supported by the better cooperation with the Organisation for Co-Operation between Railways (OSJD). The Main Committee of the OSJD has approved Rail Cargo Hungaria's request for accession to the "Rules for the Use of Freight Wagons in International Traffic"(PGV) Agreement. The advantages of the decision will take effect from the beginning of July. The significance of the agreement is the dynamic growth of the Hungarian market-leader rail freight transport company's traffics with wide-gauge wagons in the first two months of this year. The amount of goods in tons entering Hungary at Záhony was 50% more than in the same period of the previous year.

The accession to the agreement above enables the company to enter contractual relationship on a normative basis with all potential wide-gauge forwarders and wagon-keepers, creating a stable and predictable technical-operational and commercial terms for using wide-gauge wagons.

The accession improves our company's competitiveness, for the direct connection saves the services fees paid to brokers before, accelerates the administration and ensures the full control of the financial accounting process. With the simplification of processes, the transportation time becomes shorter as well.

The accession makes effective enforcement of interests possible for Rail Cargo Hungaria in the PGV and other workgroups of OSJD as well. Due to direct negotiation reduction of wagon repair costs and damage compensation can be reached and a more flexible access to wagons of certain amounts and types is given.

Záhony is evolving due to the cooperation of public and private sector

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Press release

(Mándok, February 3, 2017) – An agreement supporting the convergence and the competitiveness of the region was signed on February 3rd 2017 in Mándok. With the support of the government the raw materials supply of the Danube Steel Works (Dunai Vasmű) shall be provided through Záhony. The document about the terms of cooperation between ISD DUNAFERR and Rail Cargo Hungaria Zrt. guarantees the long-term development of the region.

The agreement was signed in the presence of Ilona Dávid, President and Executive Director of MÁV Zrt. by Evgeny Tankhilevich, Corporate Manager of ISD DUNAFERR Zrt., Dr. Imre Kovács, CEO of Rail Cargo Hungaria (RCH) Zrt. and Vaso Janicic, Managing Director of ISD Portolan Kft.

The terms of the signed agreement is based on the framework contract was agreed between the leaders of ISD DUNAFERR, ISD Portolan and Rail Cargo Hungaria as well as of the regional reloading companies Záhony-Port, Kelet-Trans and Transit-Speed. The reloading companies provide capacity for large amounts of iron ore, coal, ingot and other materials for Danube Steel Works (Dunai Vasmű). The partners committed themselves to reloading for an indefinite period, to transport operations for a 5-year period.

Thanks to the regional cooperation DUNAFERR will increase the volume of transported raw materials to and the end products from the steelworks in Dunaújváros through Záhony by 50% compared to last year's amounts to an expected 1.7 Million Tons. This is an increase of the 2015 year's traffic by two and half times. The enhancement of the traffic was enabled by the recent investments at DUNAFERR. Two blast furnaces are in use again for production, the replacement of the hot rolling mills' engine provides a plus capacity of rolling, enabling a growth of the monthly output up to 25%.

The long-term contractual cooperation of Rail Cargo Hungaria and DUNAFERR goes back for a decade; DUNAFERR Holding processes traffic of approximately 4 Million Tons p.a. with RCH, which is 12% of the total traffic of the latter. To ensure the safe and smooth traffic process Dr. Imre Kovács agreed with the President of the Ukrainian Railways about the extension of their contract of cooperation's validity for this year. Despite the various economic and other restrictions by the end of 2016 the incoming traffic from Ukraine to Hungary has grown by 9%.

The over-performance demand by Dunaferr might create the conditions for the catch-up of the Záhony-region by encouraging market competition among the reloading companies and guarantees the protection of hundreds of related jobs.

Further information:
Rail Cargo Hungaria Zrt.
Marketing and Communication
E-mail: press.rch@railcargo.com