Hungary to build high-speed cargo rail line

Hungary's government approved Wednesday the construction of a 1.2-billion euros (1.6- billion-dollars) high-speed cargo rail line bypassing Budapest.

The new 120-kilometre (75-mile) line linking with an existing network from 2017 will allow cargo trains to travel at 160 kilometres per hour, slashing transit times across EU member Hungary.

"One of Hungary's most important resources is its geographical location," government spokesperson Peter Szijjarto said after a cabinet meeting.

"We want to achieve a position where transporting freight from the east to the west means going through Hungary."

The government has not yet decided whether to draw on a one-billion-euro credit line secured last year from China or from EU funds for the project.