Invest in Bulgaria - The Preferred Partner of Investors Seeking Opportunities in Bulgaria
GUGUSHEV & PARTNERS is among the leaders on the Bulgarian legal market Comprehensive Organization of MBA and EMBA Study Trips in Bulgaria
FDI in Bulgaria (13)
Health (4)
Macroeconomic Data (49)
Business (361)
Investments (155)
Infrastructure (97)
Financial (126)
Economy (350)
Construction (14)
Politics (62)
Real Estate (27)
Interesting Facts (24)
Sports (10)
Software and Information Technology (28)
Real Estate (56)
Tourism (112)
Waste Management (9)
Automotive (23)
Electronics (3)
General (81)
Renewable Energy (66)
Agriculture (22)
Construction (90)
Food and Beverage (20)
Textile (2)

Bulgarian Govt to Privatize Railway Freight Services
Date: 04/05/2011
Bulgarian Govt to Privatize Railway Freight Services

Bulgaria's Cabinet is taking steps in order to privatize the freight services of the state railway company BDZ, according to Vladimir Vladimirov, chair of the Board of Directors of the BDZ Holding.

Speaking at a railway transport forum in Sofia Wednesday, Vladimirov said the privatization of the freight and cargo services is part of the plan to restructure the notoriously troubled state railways, and will allow for improvements by private investors that the state can hardly ever carry out.

The idea to privatize the railway freight services was put forth by the GERB party Cabinet in late 2009 but the economic crisis made the likely investors from Germany and Austria to give up bidding, at least temporarily. Some 10% of the railway freight market in Bulgaria is already in the hands of private firms but there are no private passenger services in the country because of their lack of profits.

Traditionally, Bulgaria's railway passenger services generate losses and they are subsidized by the state including by using funds generated through the state-provided railway freight services in the period before the economic crisis of 2008-2009.

Vladimirov stated that the current plan to restructure the two state railways firms – BDZ and National Company Railway Infrastructure (NKZI) – must be their last restructuring. The current railway reforms aimed at reducing the some BGN 1 B debt owed by BDZ and getting a BGN 600 M loan from the World Bank have come under fire from syndicates because of planned layoffs of workers.

The BDZ board head said that as a result of the optimization of the staff in 2010, the labor productivity increased by 12%.

He stressed the need to reform the NKZI – which is in charge of the railway infrastructure and collects fees from carriers including BDZ and a couple of private companies operating freight services - saying that because of the outdated infrastructure even the fastest trains set on Bulgarian tracks cannot afford to reach speed of more than 60 km/h.

BDZ executives have revealed that the prices of both passenger and freight services are likely to be increased by about 5% in the coming months because of the rising fuel prices.

At the end of the summer, BDZ is finally expected to launch the online purchase of tickets, which was supposed to be in place a long time ago, and to provide the promised wireless Internet access in two "business trains" traveling from Sofia to Varna and Burgas on weekends.

Topic: Economy

Featured District
Invest Bulgaria Charts
Public Sector External Debt of Bulgaria
Public Sector External Debt of Bulgaria

Private Sector External Debt of Bulgaria
Private Sector External Debt of Bulgaria

See all charts
Did You Know?
Every year on the 1st of March, Bulgarians give each other 'martenitsas' - small figures made of ... More

Pamporovo is located in the heart of the Rhodope Mountains. It is one of the most popular south-eastern European mountain ski resorts.

Intelligence Pathways - Outsource your Business, Competitive Intelligence or Back Office to Bulgaria

Bulgaria Translation - Full service Bulgarian Translation company

© Copyright 2004-2019 Invest Bulgaria Group Ltd, Sofia, Bulgaria. All rights reserved.

Please read Conditions of Use, Copyright Statement and Privacy Policy for this web page and web site.

Bulgaria Translation Bulgarian Agriculture Bulgarian Textile Sofia Web Works Bulgarian Coins Intelligence Pathways Bulgarian Outsourcing

Crafted by Sofia Web Works. Maintained by Website Maintenance, the kings of Website Migration.

Our Featured Members