A three-way agreement has been launched to boost rail freight transport from China to the heart of Europe. The initiative was promoted by Srbija Kargo, Serbia’s national rail freight company, which signed a memorandum of understanding with Hungary and North Macedonia. Hungary was represented by Rail Cargo Hungaria, controlled by Rail Cargo Group, while North Macedonia was represented by the state railway company Železnici na Republika Severna Makedonija Transport. The aim is to enhance and support the development of the Budapest-Belgrade railway, which opened to freight traffic only at the end of February 2026 and whose potential has yet to be fully exploited. The route is therefore set to become a key corridor for freight transport along the north-south axis through the Balkans. Although no forecasts based on figures have been provided, all indications suggest that future traffic volumes will be significantly higher than those recorded so far.
Cooperation between the three railway companies is structured around two main areas. The first concerns freight transport between China and Europe by rail, using existing corridors as well as routes to be relaunched. The second opportunity lies in intermodal transport involving European ports and terminals located within the EU area, integrating rail with road services. It is no coincidence that a large share of Chinese goods transits through the Greek port of Piraeus, from where it continues towards the European hinterland via North Macedonia and Serbia. This is precisely the traffic that the partners aim to capture. The goal is to offer shorter transit times, lower costs and a service that is as reliable and secure as possible. To achieve these results, the partners intend to pursue increasingly close integration through stronger cross-border cooperation, together with the simplification of the logistics chain and the adoption of common digital solutions.
The memorandum of understanding signed by Serbia, Hungary and North Macedonia is also open to future areas of collaboration, already identified in broad terms as a strong impetus to further develop intermodal transport, technical and operational interoperability, the simplification of all procedures, particularly customs processes, and digital data exchange. The possibility of developing a joint commercial offer for potential customers using the Budapest-Belgrade corridor has also not been ruled out.
These developments are also the result of major infrastructure investments supported by EU funding. At the end of 2022, the European Investment Bank, EIB, and the European Bank for Reconstruction and Development, EBRD, made more than €1bn available for work on the rail network and the purchase of modern rolling stock. In particular, the programme included the modernisation of the Belgrade-Niš railway line, which is the Serbian crossroads of Corridor X and connects Salzburg, Austria, with Thessaloniki, Greece, as well as, through a second branch, Budapest, Hungary, with Istanbul, Turkey. This has transformed an obsolete line, where speed limits had fallen to 50 km/h and even 30 km/h on some bridges, into a 120 km/h line that is more than suitable for freight trains.
In 2022, the Belgrade-Novi Sad section was inaugurated and opened for operation. It is the first segment of the Belgrade-Budapest route, and the works were made possible in part by financing granted by China, underlining Beijing’s growing interest in this geopolitical area. In October 2025, the Novi Sad-Subotica section was reopened for operation after an almost complete reconstruction. Subotica is a rail hub located about ten kilometres from the Kelebija junction, just beyond the border between Serbia and Hungary. The line now has the characteristics of a high-capacity, interoperable railway built to European standards.
Piermario Curti Sacchi
