National Transport Centre and Magyar Vonatflotta Zrt. have been registered

The Company Court of the Budapest-Capital Regional Court has registered OKK Országos Közlekedési Központ Zrt. and Magyar Vonatflotta Zrt., meaning that, in legal terms, both new state-owned companies have been established and can begin operations, although their actual organisational and operational set-up is expected to be a longer process. The creation of the two companies is linked to the restructuring of Hungary’s public transport institutional system: the National Transport Centre will gradually take over the commissioning, organising and coordination tasks for state-ordered suburban, regional and national passenger transport, while Magyar Vonatflotta Zrt., as a national rolling stock management company – under the so-called ROSCO model – will handle the ownership, financing and life-cycle management tasks related to railway vehicles procured from public funds. One of the key aims of establishing the new institutional system is to create a clearer separation between the commissioning and service-provider sides of transport services, and to ensure that state-owned railway vehicles can in future be made available to public-service operators under competitively neutral conditions.

The deeds of foundation of the two companies were approved at the end of July by the minister of transport and investment, Dávid Vitézy, and their company court registration took place on 6 August. The articles of association of OKK, adopted on 31 July, also set out the precise remit, ownership background and composition of the governing bodies of the new national transport organiser.

OKK Országos Közlekedési Központ Zrt. has been established as a single-member company that is 100% state-owned. The Hungarian State is represented as owner by Magyar Nemzeti Vagyonkezelő Zrt. (Hungarian National Asset Management), while during the establishment process the Ministry of Transport and Investment acted on the basis of authorisation from MNV.

The company’s share capital is HUF 5 million, consisting of 50 ordinary shares with a nominal value of HUF 100,000 each. Their issue value, however, was set at HUF 1.1 million per share, meaning that the state made a total of HUF 55 million available to OKK at the time of establishment. Of this, HUF 5 million is share capital, while the remaining HUF 50 million will be placed in the company’s capital reserve.

OKK’s most important task will be the commissioning, organising and coordination of national, regional and suburban passenger transport public services. Its activities, however, will be broader than this: its responsibilities will also cover, among other things, the coordination of timetable, tariff, ticket and season-ticket sales, inspection and passenger information systems, as well as providing professional support for their development. The articles of association also clearly enshrine the separation of the commissioning and service-provider sides: OKK will operate institutionally, organisationally and economically independently from transport operators, the rolling stock management company and other market players.

The company will be managed by a four-member board of directors, chaired by Dr Eleonóra Hernádi, with Sándor Siliga, Dóra Pozsgai-Simon and András Csaba Munkácsy as its other members. Their mandates are for an indefinite period. The board of directors is responsible for the operational management of OKK’s functioning, activities and finances, and prepares the company’s strategic, business, financing and procurement plans, which it implements after approval by the founder. The board may independently decide on legal transactions and commitments not exceeding a net value of HUF 250 million.

At the same time, as founder, the state has retained significant decision-making powers: its exclusive competence includes, among other things, amending the articles of association, electing and dismissing the members of the board of directors and the supervisory board and determining their remuneration, as well as approving the company’s strategic, business, financing and procurement plans. Founder approval is also required for legal transactions and commitments exceeding a net value of HUF 250 million. In addition, the professional supervision of the minister responsible for transport over OKK will remain in place, while the new transport organiser will take over many commissioning powers currently exercised directly by the minister. In future, OKK may act on behalf of the minister in the conclusion, amendment and management of public-service contracts, and will also play an important role in preparing the future competitive tendering of rail passenger transport services. The detailed division of responsibilities will be defined in a separate ministerial decree, while the minister will assess OKK’s performance annually and may, where justified, veto certain decisions.

OKK’s operations will be overseen by a three-member supervisory board. The board is chaired by Eszter Kálmán, with Dr Zsófia Bolf-Galamb and Gergely Horn as members, who have likewise been appointed for an indefinite period. The supervisory board monitors management and the company’s finances on behalf of the founder, may examine its asset and financial position, discusses the board of directors’ quarterly reports and, where justified, may initiate action by the founder. The chief executive responsible for the company’s day-to-day operational management has, however, not yet been named.

The other newly registered state-owned company, Magyar Vonatflotta Zrt., will be another important pillar of the new institutional system. Its establishment is also of key importance for drawing down European Union railway development funding, as the creation of a national rolling stock management company is one of the conditions for Hungary to access the approximately EUR 1.8 billion railway vehicle procurement envelope available under the Recovery and Resilience Facility. According to plans, this would primarily finance the purchase of new HÉV suburban railway trainsets and intercity multiple units. The essence of the so-called ROSCO model is that railway vehicles procured from public funds should be owned by a state-owned company separate from passenger transport operators, which can then make them available to railway undertakings providing public services under competitively neutral conditions. Magyar Vonatflotta Zrt. will be managed by chief executive Dr Csaba Böde, while the members of the company’s three-member supervisory board are Dr Dániel Ferenc Hörcher, Zombor Berezvai and Csaba Gábor Pogonyi.