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EXCLUSIVE: Romania To Outsource Railroad Maintenance, Or Close 30% Of Network

Romanian state-run railway company CFR SA will close 1,000 kilometers of railway lines by end-August and a further 6000 km (30% of the country's railroad network) later, unless the state can outsource their maintenance through public tenders.
EXCLUSIVE: Romania To Outsource Railroad Maintenance, Or Close 30% Of Network
Oana Gavrila
11 feb. 2011, 09:57, English

The strategic plan for improving the company’s activity aims to cut losses by 25% and prevent the accumulation of new arrears this year, says the letter of intent agreed upon by the Romanian Government and the International Monetary Fund.

CFR SA’s draft budget for this year provides 748.39 million lei (EUR1=RON4.2600) in losses, down 39% than last year’s RON1.04 billion. The company’s debts to the state budget and to energy suppliers stood at RON5.36 billion at the end of 2010.

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.