Márton Nagy, National Economy Minister, has announced a government decision to build a EUR 1bn rapid rail link between Liszt Ferenc International Airport and Nyugati Station, in Budapest.

Minister Nagy said the government had also decided on the construction of a new cargo airport at a cost of between EUR 400m and EUR 1bn. Both investments will be completed in a concession framework, he added.

The rail link would require the addition of a new line only between the airport and the capital's District X. The concession tender could be called within six months and is expected to draw interest from both foreign and Hungarian investors.

Minister Nagy noted that passenger traffic at Liszt Ferenc had climbed by an annual 14pc, on average, in recent years, and reached a record 17.6 million in 2024. Annual passenger numbers could exceed 20 million by 2030 and reach 35 million by 2040, he added.

Minister Nagy said cargo turnover at the airport would soon reach the full capacity of 400,000-450,000 tonnes a year.

The government is weighing 5-6 possible locations for a new cargo airport, greenfield and brownfield, he said. The site must be remote from residential areas to ensure non-stop operation and be close to railway and road infrastructure, he added.

As most cargo at Liszt Ferenc comes from Asia, including 43pc from China, the project is expected to draw the interest of investors from China, the Middle East, Kazakhstan or Azerbaijan, he said.

Fielding questions, Nagy said a HUF 100bn dividend paid by Liszt Ferenc operator Budapest Airport would improve the budget balance. He added that the government expected an annual HUF 20bn-30bn in dividends from the airport.