Hungarian and Austrian joint state-owned regional railway GYSEV has selected Thales Rail Signalling to supply security equipment for a section of Hungarian railtrack.

The contract, worth €28.64m (HUF7.63m), involves work on a 56km section of the Sopron-Szombathely-Szentgotthárd line in western Hungary.

The security equipment is expected to allow trains reach a maximum speed of 120kmph, as opposed to the current 60-80kmph.

The project is funded through the HUF41.3bn of assistance funding awarded to Hungary by the EU to renovate a 116km section of the rail line.

Work is expected to finish by the end of 2011.