Romanian railway needs EUR 3.9 billion, four times over what government offers

Newsroom 03/07/2015 | 18:16

The National Railway Company (CFR) estimated that the railway infrastructure would require an investment of RON 17.4 billion (EUR 3.9 billion) this year, according to Mediafax. This is nearly four times over the RON 4.6 billion (EUR billion) allocated by the Government.

Of the total amount needed for major repairs to railway infrastructure for 2015, the biggest part, RON 10.4 billion would be directed to upgrades aiming to increase train velocity (speed restrictions have major impacts on schedules).

Also another RON 5.7 billion would be needed for capital repairs to the public railway infrastructure, for restoring lines and structures affected by natural disasters and for the rehabilitation of bridges and tunnels. A further RON 1.3 billion would be necessary for maintenance and major repairs in lines, bridges and structures.

“The amounts shown represent necessary money for the company to execute maintenance and repairs to the public railway infrastructure. This funding should be allotted from the state budget, since CFR SA is the company that manages the public railway, owned by the Romanian state,” showed a company statement.

The budget allocation for railway infrastructure, approved late last year for 2015 is RON 4.6 billion. In comparison, last year’s CFR investments (RON 2.3 billion) are half the amount allocated by the Government this year. In 2016, CFR cannot receive more than RON 5.54 billion for projects, further states the document.

This announcement comes just as CFR had announced a profit of RON 73 million (EUR 16.5 million) for the first five months of 2015, with a turnover of RON 383.8 million.

Natalia Martian