BDZ - Freight Transport initiates talks with the World Bank for investment program implementation

"BDZ- Freight Transport" EOOD initiates talks with the World Bank for the implementation of its investment program for the period until 2024. The company will negotiate for attracting up to 400 million BGN capital. The funds are needed for the acquisition of 5 new electric and 15 diesel locomotives, as well as 600 specialized freight cars. Investments in rolling stock and railway infrastructure are a top priority of the Ministry of Transport and Communications.

The program envisages major repairs of 10 units of locomotives and 250 units of freight cars.

In recent years, BDZ- Freight Transport has failed to meet the market's requirements and has had difficulties in fulfilling the transport schedule due to the lack of sufficient rolling stock. The average age of electric locomotives is 45 years, and 90 percent of the cars were delivered 40 years ago. Repair maintenance is mainly carried out in the locomotive depots of the company, which do not have sufficient capacity.

At the same time, the volume of transportion is increasing, and the lack of rolling stock risks losing customers and unrealized profits.

The new wagons and locomotives will return BDZ- Freight Transport to the market as a strong competitive player.

The company's management estimates that with the modernization of the locomotive and wagon fleet, it will be possible to carry out cargo transportation, which will bring in about BGN 28 million in revenue in the first year alone. Estimates are that an additional 5 percent increase in revenue will be generated from the second year. This assumes that the investment of BGN 400 million will be paid off in about 11 years.