SERBIAN RAILWAYS
Railway Restructuring

The Railway and
the Environment

Projection of
the Traffic Volume

Financial
Projection

Railway
Restructuring

Human Resouces
Policy

Environment Protection
Policy

Possibilities of
Privatization

Investments

Action Plan Supporting 2003-2007 Business Plan Implementation

THE REORGANIZATION OF THE RAILWAY ASSUMES THE SEPARATION OF INFRASTRUCTURE FROM THE COMMERCIAL PART WHICH WOULD BE IMPLEMENTED IN TWO STAGES:


  1. IN THE FIRST STAGE, AN ACCOUNTING SEPARATION OF INFRASTRUCTURE FROM TRANSPORT WOULD BE MADE.


THE REI WOULD CERTAINLY CONTINUE TO BE UNDER THE STATE'S OWNERSHIP (IT IS NOT SUITABLE FOR PRIVATIZATION) AND WOULD BE TREATED AS A PUBLIC PROPERTY. THE FINANCING OF INFRASTRUCTURE WOULD REMAIN THE RESPONSIBILITY OF THE STATE, WHICH WOULD TAKE DECISION REGARDING RAILWAY NETWORK THROUGH THE PARLIAMENT (DEVELOPMENT AND MAINTENANCE). INFRASTRUCTURE MANAGER APPOINTED BY THE GOVERNMENT WITH A RESPONSIBILITY FOR CHARGING THE SERVICES, CONSTRUCTION AND MAINTENANCE OF INFRASTRUCTURE. FROM THE STANDPOINT OF RAISING THE COMPETITION LEVEL, THE BUILDING OF INDIVIDUAL SECTIONS COULD BE HANDED OVER TO PARTICULAR SUB-CONTRACTORS (IN THE FORM OF CONCESSION OR CONTRACT ON STRATEGIC INVESTMENT BETWEEN THE STATE AND THE PRIVATE SECTOR).

A NEW-FORMED ENTERPRISE WOULD BE CALLED COMMERCIAL RAILWAY ENTERPRISE (CRE) UNDER WHICH TWO BUSINESS CENTERS WOULD BE FORMED: FOR FREIGHT AND PASSENGER TRAFFIC. WITHIN THE CRE THERE WOULD BE A COST CENTER TO BE IN CHARGE OF ROLLING STOCK MAINTENANCE, BOTH FOR ACCOUNT OF PASSENGER AND FREIGHT BUSINESS CENTERS.


  1. IN THE SECOND STAGE, THE FURTHER INSTITUTIONAL SEPARATION WOULD TAKE PLACE, I.E. A PHYSICAL SEPARATION OF INFRASTRUCTURE.


THE BALANCE SHEETS WOULD BE SPLIT SO THAT THE ASSETS NECESSARY FOR THE COMMERCIAL PART OF THE RAILWAY (CRE LIMITED) - THE ENTIRE ROLLING STOCK FLEET, DEPOTS, COMMERCIALLY ATTRACTIVE STATION FACILITIES, ETC. - WOULD BE TRANSFERRED TO CRE. ON THE OTHER HAND, THE ASSETS NECESSARY FOR INFRASTRUCTURE (LINES, LAND AND OTHER INFRASTRUCTURE RELATED TO RAILWAY LINES, MOST STRUCTURES ETC.), WOULD REMAIN UNDER THE STATE'S RESPONSIBILITY (WITHIN THE COMPANY REI) WITH CLEARLY DEFINED RELATIONS.

IN THAT STAGE, A FURTHER TRANSFORMATION OF BUSINESS CENTERS COULD BE IMPLEMENTED: NAMELY, THE FREIGHT PROFIT CENTER AND PASSENGER PROFIT CENTER, WHICH WOULD BE FURTHER SEPARATED INTO INTERCITY AND INTERNATIONAL (WHICH BY TIME COULD BECOME A PROFIT CENTER) AND LOCAL PASSENGER CENTER, WHICH WOULD CONTINUE TO BE A COST CENTER AND WOULD BE FINANCED FROM THE GOVERNMENT BUDGET AND BY LOCAL COMMUNITIES. IN THIS WAY TWO COST CENTERS COULD BE FORMED FURTHER FROM THE ORIGINAL CENTER FOR ROLLING STOCK: ONE FOR MAINTENANCE OF ROLLING STOCK IN PASSENGER TRANSPORT AND THE OTHER IN FREIGHT TRANSPORT.


  • THE IMPLEMENTATION OF A REFORM APPROACH REQUIRES SIGNIFICANT FINANCIAL RESOURCES.
  • TO BE ABLE TO SUCCESSFULLY IMPLEMENT A REFORM APPROACH TO RESTRUCTURING, AS WELL AS TO OBTAIN A SUPPORT FROM INTERNATIONAL INSTITUTIONS FOR THAT, IT IS NECESSARY TO REACH AN AGREEMENT AND ALL PARTIES CONCERNED TO UNDERTAKE TO CONSISTENTLY IMPLEMENT THE REFORMS (THE STATE, THE MANAGEMENT AUTHORITIES OF THE RAILWAY, TRADE UNIONS)


THE PRECISE SPECIFICATION OF ACTIVITIES CONCERNING THE RELATIONSHIP BETWEEN THE STATE AND THE RAILWAY, RESTRUCTURING AND PRIVATIZATION OF DAUGHTER COMPANIES WOULD HAVE TO BE OFFERED BY A MEDIUM-TERM BUSINESS PLAN 2003 - 2007, DERIVED FROM THE EXISTING STRATEGIC AND OPERATIONAL TARGETS, APPRECIATING A MARKETING STRATEGY OF THE COMPANY (ELABORATED FROM THE ANALYSIS OF THE ENVIRONMENT).

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