(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.
Rail Cargo Hungaria Zrt.
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