1. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 1 Presentation of Railway Infrastructure Manager from Hungary Dr László Mosóczi MÁV Co. Assistant CEO of Business Units

2. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 2 Presentation of Railway Infrastructure Manager from Hungary Contents of presentation: I. Overview of MÁV Co’s network, asset II. Overview of MÁV Co’s organisational structure III. European corridors on MÁV Co’s network, and TEN-T network IV. Priority works in the network V. Main domestic contractors VI. Selection of contractors, tendering process

3. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 3 3.1% 23.6% 60.1% 13.2% Modal split in Hungary 2006 car bus railways metro, tram Index20062007 Passengers Passenger-kilometres Revenues Material Costs Staff Costs Net Profit - Reported in M 154,2 146,1 M 9.450 8.558 HUF BN 265,2 183,8 HUF BN 138,4 149,8 HUF BN 155,7 169,4 HUF BN - 74,9 -12,5 Business performance and market share

4. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 4 Number of electric motor units: 57 Length of network: 7596 km Average age of locomotives: 31 Number of staff: 40 947 Number of stations: 645 Number of stops: 942 Number of diesel locomotives: 503 Number of electric locomotives: 465 Average speed on main lines: 100 -120 km/h Percentage of electrified tracks: 33,7% Percentage of double-track lines: 15,4% Density of tracks: 82,8 km/1000 km 2 Number of passenger coaches: 2670 Average age of motor units: 21 Number of diesel motor units: 350 International main lines (2622 km) Domestic main lines (2276 km) Secondary lines (2698 km) MÁV Group in figures Classification of lines:

5. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 5 I. Overview of MÁV Co’s network, asset I. Overview of MÁV Co’s network, asset Double tracks

6. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 6 I. Overview of MÁV Co’s network, asset Blue: Electrified lines Black: Planned electrification

7. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 7 II. Overview of MÁV Co’s organisational structure Setting up legally independent companies MÁV- GÉPÉSZET Zrt. Záhony-Port Zrt. MÁV- TRAKCIÓ Zrt. Infrastructure business unit MÁV-START Zrt. Services MÁV Cargo Zrt. Other subsidiaries Central management Main changes: 1st January 2006: Establishment of independent freight transport company (MÁV Cargo Co.) 1st July 2007: Establishment of independent passenger transport company (MÁV-START Co.) 1st January 2008: Separation of traction and maintenance of vehicles, establishment of independent traction and maintenance companies (MÁV-TRAKCIÓ Co. and MÁV-GÉPÉSZET (Engineering) Co.) 2008: Privatisation of MÁV Cargo Zrt. 2008-2009

8. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 8 II. Overview of MÁV Co’s organisational structure Establishment of MÁV Holding MÁV- GÉPÉSZET Co. Záhony- Port Zrt. MÁV- TRAKCIÓ Co. MÁV- PÁLYA- VASÚT Co. 2010 MÁV-START Co. Central Service Ltd. Other subsidiaries Holding management Main changes: 2009: Establishment of Independent Central Service Ltd. 2008-2009: Planning the central management functions of Holding 2010: Establishment of independent Infrastructure Co. (MÁV-PÁLYAVASÚT Co.) 2008- Marketing of non-strategic business shares (continuous)

9. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 9 III. European corridors on MÁV Co’s network, and TEN-T network

10. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 10 III. European corridors on MÁV Co’s network, and TEN-T network Pan-European corridors: IV, V, Vb, Vc, Xa Green _ Alternative routes of corridors IV., V.

11. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 11 III. European corridors on MÁV Co’s network, and TEN-T network III. European corridors on MÁV Co’s network, and TEN-T network

12. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 12 Concentated usage of second hand materials Constructed from state budget (Railway bridge at Újpest) IV. Priority works in the network Track renewals and investments (1993-2008) Vmax = 160 km/h Axle load 225 kN

13. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 13 IV. Priority works in the network Track works from international financial support 2008 – 2014 Replacement of turnouts, total: 377 pcs Period Replacement of turnouts (pcs) Ukk-Boba2008-201015 Bp.Kelenföld állomás2009-201243 Bp.Kelenföld-Tárnok2009-201233 Tárnok-Székesfehérvár2009-201241 Szajol-Püspökladány2009-2013108 Gyoma-Békéscsaba2009-2014126 Pilis-Albertirsa2008-201011

14. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 14 IV. Priority works in the network Track works from international financial support, 2009-2014 planned works (detailed) Title Line length ParameterCostConstruction trackspeed Billion Ft period IV. Corridor Budapest– Lőkösháza III/A. and III/B. phase 352120-1601052009-2014 Gyoma (excl) –Békéscsaba (incl) + Bp.-Békéscsaba ETCS-2 Budapest – Lőkösháza III/C. phase Békéscsaba (excl) - Lőkösháza+ B.csaba-Lőkösháza ETCS-2 302100-160452010-2014 V. Corridor Szolnok – Debrecen - Záhony I/1. phase 6721601272009-2013 Szajol(kiz) – Püspökladány (excl) track Szolnok – Debrecen - Záhony I/2. phase 672120-16062011-2014 Szajol-Püspökladány ETCS-2 Budapest – Székesfehérvár I. phase 602120-1601192009-2012 Bp.Kelenföld - Székesfehérvár (excl) Budapest – Székesfehérvár II. phase 32120-160352010-2014 Székesfehérvár állomás, Bp-Székesfehérvár ETCS-2 Bajánsenye – Boba ETCS-2 112082009-2011 Győr – Pápa – Celldömölk – Boba "A" phase 51120152011-2013 Electrification, Gyömőre - Gecse-Gyarmat curve correction Total:267 460 Establishment of GSM-R (nettó need for source) 60 Sum-total:267 520

15. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 15 IV. Priority works in the network Renewals and investments, planned for realisation between 2009-2014

16. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 16 IV. Priority works in the network Track renewals and investments (1993-2014) IV. Priority works in the network Track renewals and investments (1993-2014)

17. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 17 IV. Priority works in the network

18. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 18 IV. Priority works in the network

19. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 19 IV. Other developments  Procurement of diagnostic measuring devices, modernisation  Construction of new coach-washers  Establishment of noise protection walls  Individual sub-structure works:  Renewal of level crossings, platforms  Flood protection works  Slope restoring works  Individual bridge works  Danube bridge at Baja, Tisza bridge at Algyő  Renewal of weighbridges

20. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 20 Developing investments in the area of telecommunication, energy supply and signalling (2009-2010)  Replacement of signalling energy supply  Replacement of mechanical barriers by automatic barriers  Establishment of KÖFI (Central traffic controller) equipment at South-Balaton  Establishment of KÖFI (Central traffic controller) equipment at Szeged  Establishment of hot box detectors  Establishment of axle-weight and flat-wheel measuring devices

21. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 21 V. Our main domestic contractors We outsourced the renewal and major maintenance works since 2004: Winner contractors of the tender: -MÁV FKG (track machines) Ltd, and -MÁV GÉP (machinery) Ltd The main track contractors: -Mávépcell Ltd/Switelsky -Szentesi Vasútépítő (railway constructor) Ltd (/Strabag) -MÁV Thermit Kft/ElektroThermit GmbH -Railway Constructors Ltd/Wiebe -Középszolg Ltd/ ZSE Brno -COLAS Co. In consideration of bridges: Major maintenance, renewal: -MÁV FKG (track machines) Ltd, and -MÁV GÉP (machinery) Ltd Investment works: -Hídépítő (Bridge Constructor Co.), Közgép Ltd, MCE Nyíregyháza Ltd.

22. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 22 V. Our main domestic contractors In consideration of signalling works: TBÉSZ (Telecommunication and Signalling Constructor and Service Supplier Ltd). MÁV Dunántúli (Trans-Danubian) Telecommunication and Signalling Constructor and Service Supplier Ltd. Femol 97 Ltd. Műszer Automatika (Instrument Automatics) Ltd Overhead line (OHL) works: Maintenance on the base of tender for 4 years: Vasútvill Ltd, Chronus BSS 2000 Consortium Renewal and investment works: generally the above two and MÁV FKG (track machines) Ltd

23. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 23 VI. Selecting contractors, tendering There are always international tender callings for the works supported by EU sources Tender callings appear in European Official Journal. Mainly NIF (National Infrastructure Developer) Co. prepares the tender callings and evaluation of tenders MÁV CO’ experts are involved in both activities Lately the task of management is also subject to competition. Manager is the Engineer (organisation). All the activities are on the base of our Public Procurement law which is in harmony with EU legislation.

24. EFRTC European Federation of Railway Trackworks Contractors General Meeting Porto 5th June 2009 24 Thank you for your attention!