Romanian State-Run Railway Co To Close 20% Of Network Unless It Outsources Railway Maintenance

Romania’s state-owned railway company CFR SA will close 20% of the country's railroad network, about 4,000 kilometers of railway lines, unless it finds investors to ensure their maintenance, reads the letter of intent agreed upon by the Government and the International Monetary Fund.

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In the draft letter of intent, the railway company had committed to close 6,000 kilometers of railway lines (30% of the country's network) unless the state managed to outsource their maintenance through public tenders.

The final letter of intent reads CFR SA will close another 1,000 kilometers of railway lines by end-August to enhance the company's financial situation.

The company plans to reduce losses by 25% and register no more arrears in 2011.

According to the most recent data, Romania's railroad network is 20,210 km long, including 17,691 km in public infrastructure managed by CFR SA and 2,519 km in private management.

The infrastructure's poor technical condition has necessitated reducing the top speed of trains. Nearly 40% of the railroad network and more than 60% of the total number of bridges has exceeded the maintenance deadline, increasing the risk of accidents.

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