RRI Live!

Listen to Radio Romania International Live

Measures to streamline rail transportation

The Romanian government continues to seek better measures to improve the performance of the national railroad company

Measures to streamline rail transportation
Measures to streamline rail transportation

, 05.06.2014, 13:39

In Wednesday’s session, the government passed a memorandum on measures to turn Romania’s state-owned railroad company CFR more efficient, all part of a General Transportation Master Plan for Romania. According to a press release from the Government, the proposals in the document include shrinking the railroad network, stimulating competitiveness by outsourcing public service contracts, introducing performance indicators in financing public railroad transportation services and cost reduction programs. Prime Minister Victor Ponta said last week that the loss-incurring rail lines should be closed down, specifying that there is an older strategy that could be used, agreed upon with the IMF:



This is an older strategy that provides for keeping passenger lines that are profitable, for opening up the market to private operators, and if there are lines that are not used, they obviously need to be closed down, because they produce losses. Investing in the development of infrastructure does not mean holding on to rail lines that no one uses, it means modernizing the ones that are not used.”



This statement was made in the context in which there is an IMF delegation in Bucharest for the third evaluation of the stand-by agreement signed with Romania. The IMF evaluation depends on a number of important economic decisions, with significant social impact. Prior to the 1989 anti-communist revolution, Romania had one of the biggest and most utilized railway networks in Europe. The shift to a market economy, along with an unprecedented growth in road and air transport, has resulted in a decline of railroads.



The network shrank from 15,000 km in 1989 to 13,800 km at present. It is significant that in its first day of evaluation for the stand-by agreement in Bucharest, the IMF delegation met Romanian Minister of Transport, Dan Sova. The topic of discussion was state companies run by the ministry, with an emphasis on railroads, which are incurring major losses and where the efforts to privatize have proven a failure so far, as was the case with the freight division of the national railroad company.



Another topic on the agenda of talks was the situation of the 2,500 employees of the freight division that may be downsized this year in line with the agreement between Romania’s government and the IMF.

Meeting the Romanian PM Marcel Ciolacu with his British counterpart, Keir Starmer (foto: gov.ro)
Today in the News Thursday, 14 November 2024

The Romanian PM pays visit to London

The Romanian Prime Minister made a working visit to the UK.   On Tuesday and Wednesday, Marcel Ciolacu paid the first visit by a Romanian prime...

The Romanian PM pays visit to London
Roxana Mînzatu (photo: gov.ro)
Today in the News Wednesday, 13 November 2024

 Roxana Mînzatu, heard by MEPs   

European MPs heard Roxana Mînzatu, Romania’s candidate for Vice-President for the People, Skills and Preparedness portfolio.   ʺIt was...

 Roxana Mînzatu, heard by MEPs   
Gen. Gheorghita Vlad Photo: facebook.com/sef.smap
Today in the News Wednesday, 13 November 2024

Peace, no longer a certainty in Europe

    Less than 2 weeks from now, Romania will hold the first round of its presidential election, and the campaign remains low-key, limited...

Peace, no longer a certainty in Europe
EP and local elections in Romania on June 9 (Photo credits: AEP)
Today in the News Tuesday, 12 November 2024

Preparations for the elections abroad

  After the local and European parliamentary elections, held simultaneously on June 9, Romanians are preparing for an election marathon. They will...

Preparations for the elections abroad
Today in the News Tuesday, 12 November 2024

Growing trade deficit

The trade balance deficit recorded in Romania in the first nine months of the current year increased by 15%, as compared to the same period of 2023,...

Growing trade deficit
Today in the News Monday, 11 November 2024

Central Bank Report on Inflation

The latest report on inflation was approved at the end of last week by the Board of Directors of the National Bank of Romania. According to the...

Central Bank Report on Inflation
Today in the News Friday, 08 November 2024

EPC meeting in Budapest

European leaders met in Budapest to discuss security challenges facing Europe, with an emphasis on the situation in Ukraine, as well as the issues of...

EPC meeting in Budapest
Today in the News Friday, 08 November 2024

Romania, from wages to youth unemployment

Data from the Statistical Office of the European Union – Eurostat show that the adjusted average annual full-time salary of Romanians is the fourth...

Romania, from wages to youth unemployment

Partners

Muzeul Național al Țăranului Român Muzeul Național al Țăranului Român
Liga Studentilor Romani din Strainatate - LSRS Liga Studentilor Romani din Strainatate - LSRS
Modernism | The Leading Romanian Art Magazine Online Modernism | The Leading Romanian Art Magazine Online
Institului European din România Institului European din România
Institutul Francez din România – Bucureşti Institutul Francez din România – Bucureşti
Muzeul Național de Artă al României Muzeul Național de Artă al României
Le petit Journal Le petit Journal
Radio Prague International Radio Prague International
Muzeul Național de Istorie a României Muzeul Național de Istorie a României
ARCUB ARCUB
Radio Canada International Radio Canada International
Muzeul Național al Satului „Dimitrie Gusti” Muzeul Național al Satului „Dimitrie Gusti”
SWI swissinfo.ch SWI swissinfo.ch
UBB Radio ONLINE UBB Radio ONLINE
Strona główna - English Section - polskieradio.pl Strona główna - English Section - polskieradio.pl
creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti creart - Centrul de Creație Artă și Tradiție al Municipiului Bucuresti
italradio italradio
Institutul Confucius Institutul Confucius
BUCPRESS - știri din Cernăuți BUCPRESS - știri din Cernăuți

Affiliates

Euranet Plus Euranet Plus
AIB | the trade association for international broadcasters AIB | the trade association for international broadcasters
Digital Radio Mondiale Digital Radio Mondiale
News and current affairs from Germany and around the world News and current affairs from Germany and around the world
Comunità radiotelevisiva italofona Comunità radiotelevisiva italofona

Providers

RADIOCOM RADIOCOM
Zeno Media - The Everything Audio Company Zeno Media - The Everything Audio Company