A major restructuring of BDZ-Cargo Transport is set to begin, including cost reductions and an analysis of all freight transport tariffs. This was announced by the Deputy Prime Minister and Minister of Transport and Communications, Grozdan Karadjov, during a meeting with Plamen Dimitrov, President of the Confederation of Independent Trade Unions in Bulgaria (CITUB), representatives of the trade union and the management teams of Bulgarian State Railways (BDZ) and the National Railway Infrastructure Company (NRIC).
"Nearly half of the freight transported by rail in Bulgaria is handled by BDZ-TP, with the remainder managed by private carriers operating in the market. Nevertheless, last year’s figures show a turnover of BGN 140 million for the company, alongside overdue liabilities amounting to BGN 33 million," Karadjov stated. According to him, any private entity with such financial results would be considered insolvent.
"At present, we have restricted all external expenditure to prevent the accumulation of further debt", the Deputy Prime Minister noted, adding that options are being explored to sell off the company’s non-operational assets, which are incurring significant costs. He highlighted that BDZ-TP pays up to BGN 250,000 per month just to station rolling stock on tracks owned by NRIC. "I have instructed the company to urgently prepare a list of non-operational assets and proceed with their sale," Karadjov added.
The management of BDZ announced that BDZ-Cargo Transport owns approximately 4,500 wagons, although only 2,000 are needed for its operations. In addition to the rolling stock, the surplus assets include buildings, premises and land that are no longer used for their intended purposes but generate financial losses. For example, the national carrier cited 230 apartments owned by BDZ-TP across the country.
The President of CITUB, Plamen Dimitrov, stated that one of the key issues in the railway sector is the need for a fair procedure in selecting a passenger rail operator. Petar Bunev, Chairman of the Railway Workers' Union in Bulgaria, emphasised the urgent need to develop a recovery programme for both BDZ-Passenger Transport and BDZ-Cargo Transport, including measures to ensure maintenance activities for the rolling stock.
Deputy Prime Minister Grozdan Karadjov underlined that the Ministry has submitted to the European Commission a concept and a set of questions concerning the awarding of passenger rail services in the country. "Once all the details are clarified and before the tender is announced, we will hold extensive consultations, in which I hope trade unions will also take part," Karadjov added.
