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Hungary Announces €9.76 Billion Rail Investment Plan by 2035

Hungary Announces €10bn Rail Plan with Tram-Trains and Metro Extensions
Image: Trams Christchurch, NZ by Unknown creator via rawpixel, cc0

The Hungarian Government announced a HF3,550 billion (€9.76 billion) national rail investment plan on July 22, 2026, aimed for completion by 2035. Transport Minister Dávid Vitézy and Prime Minister Péter Magyar presented the Gábor Baross Railway Development Plan at Budapest’s Rákospalota-Újpest station.

Rolling Stock Renewal and Urban Rail Expansion

The programme includes procurement of 35 double-deck electric multiple units (EMUs) for inter-city routes and 42 EMUs to replace the aging average 43-year-old fleet on suburban Budapest lines H5, H6, and H7. HF95 billion is allocated for battery-electric multiple units (BEMUs) and corresponding charging infrastructure. Battery EMUs will operate on the Debrecen–Füzesabony, Sárbogárd–Szekszárd–Baja, and Hatvan–Salgótarján–Somoskőújfalu lines.

The plan

also proposes the extension of metro Line M3 by two stations from Újpest-központ to Rákospalota-Újpest by 2030 to improve urban connectivity.

Infrastructure Modernisation and New Stations

Significant infrastructure upgrades include reconstruction of Rákospalota-Újpest station to serve as the terminus of the extended metro M3 and rebuilding of the Budapest–Veresegyház–Vác line. The Budapest–Lajosmizse–Kecskemét suburban rail line will be electrified and modernised for continuous train operation.

Upgrades to the Budapest Southern Circle railway will finalize its third phase, incorporating a flyover at Ferencváros and a new passenger station at Népliget for connection to metro Line M3. Déli pályaudvar station will undergo modernization, with the tunnel to Kelenföld

rebuilt to support double-deck trains.

Other new infrastructure includes a station at the Budapest–Miskolc main line crossing Hungária körút with tram Route 1 interchange and modernization of the Debrecen–Nyíregyháza main line for speeds up to 160 km/h with two new stations in Debrecen.

Signalling Systems and Transport Authority Formation

The signalling system upgrade on the Budapest–Beograd main line, supplied by China Railway Signal & Communication, is pending TÜV safety certification for full revenue service, tentatively starting in September 2026. A new national transport authority will oversee rail and coach transport, concurrently implementing a digitalisation programme, electrical substation upgrades nationwide, and a rail passenger information modernisation effort.

Political Framework and Funding

The plan follows a political agreement signed on May 29, 2026, between Prime Minister Péter Magyar and European Union President Ursula von der Leyen, unlocking EU funding contingent on governance reforms by August 31. The Hungarian government approved the financing and mandated MÁV Személyszállítási Zrt to execute the projects by 2035.

The investment plan addresses the urgent need to replace Hungary’s aging rolling stock fleet and modernise infrastructure to improve reliability and capacity across the rail network.

Passenger Benefits and Network Impact

The metro Line M3 extension and rolling stock renewals are expected to improve urban connectivity in Budapest. Modernised suburban lines and new stations

with interchanges to metro and tram systems will increase passenger convenience and capacity. Battery-electric trains will reduce emissions on selected regional routes. Digitalisation efforts and upgraded passenger information systems aim to enhance travel experience nationwide.