Passengers will slowly return to trains as a means of transport on the modernised sections of the railway in Serbia. People want to travel on comfortable, reliable, and fast trains. A thorough modernisation of the entire railway infrastructure, including railway tracks, trains, and stations is necessary to fully restore people’s confidence in rail transport.
Modern railways are just as important for Serbia’s economy as modern road infrastructure. With high-speed rail, Serbia would boost its potential to increase transit revenues and become a more competitive investment destination. A more substantial share of railway traffic, along with electrification of railways, would have a great impact on reducing carbon dioxide (CO2) emissions.
The first ceremonial train on the Belgrade - Nis railway line (243 km long) roared through the Morava Valley on 4 September 1884. Regular traffic started on 15 September of the same year, the date celebrated every year as the Railway Workers’ Day by Serbian Railways.
Today, the average speed of trains on about 4,000 km of railway tracks in Serbia is close to that of 1884 - below 60 km per hour. In neighbouring EU countries, the trains carry passengers and goods 20-30 km per hour faster on average, while the average speed on electrified railways in Western Europe is above 150 km per hour. The decayed railway infrastructure in Serbia has long been facing the challenge of extensive reconstruction and modernisation.
In the last 11 years, the European Union has funded numerous railway modernisation projects in Serbia, with more than EUR142 million in grants.
Grants and favourable loans
The EU is funding the modernisation of five key railway sections in Serbia that are part of Pan-European Corridor X. EU grants and co-funding are used for the preparation of necessary project and technical documentation. In addition, the European Investment Bank (EIB) and the European Bank for Reconstruction and Development (EBRD) both offer favourable loans to Serbia.
The European Investment Bank, both as an EU bank and a non-profit organisation, provides loans with the most favourable terms to Serbia, without mandatory, servicing or any other fees.
The Belgrade - Hungarian border section
As part of the modernisation of the railway line on the Belgrade - Hungarian border section, back in 2009 the EU financed the Feasibility Study and Environmental Impact Assessment for the Stara Pazova - Novi Sad subsection. Funding for the Feasibility Study was secured by the EU through a technical assistance project, and the budget allocated by the EU stood at approximately EUR300,000.
At the request of the Government of Serbia, the EU provided funding in the amount of EUR4.8 million for the preparation of the preliminary design, feasibility study, and environmental impact assessment for the Novi Sad - Subotica subsection.
Belgrade - Croatian border
The EU is currently funding the preparation of preliminary design, feasibility study and environmental impact assessment for a 120-kilometre subsection on the Belgrade - Croatian border section. The section in question is from Belgrade to Šid, including two subsections: Stara Pazova - Golubinci and Golubinci - Indjija.
The EU has secured EUR3 million for the entire section from Belgrade to the Croatian border.
This project is also supported by the European Investment Bank, a leading international financial institution.
Belgrade - Nis
The Belgrade - Nis section of the railway is considered to be the backbone of the Serbian railway network. The European Union is financing the development of preliminary design, feasibility study and environmental impact assessment for the 110 km long Velika Plana - Nis subsection as well as for the Stalac - Djunis subsection, about 20 km long.
Serbia has so far received EUR7 million in EU grants for the preparation of said project documentation. The total estimated investment value for this project stands at EUR565 million.
The estimated project costs of the Stalac - Djunis subsection are EUR160 million. In addition to the EIB, the EU has also allocated substantial grants for this project.
Nis - North Macedonia border
The European Union has allocated EUR47 million worth of grants for the modernisation of the 23-kilometre-long Nis - Brestovac subsection of the Nis - North Macedonia border railway section. Serbia will secure EUR14 million out of EUR61 million of the total contracted project value.
The technical documentation for the modernisation of this subsection was prepared thanks to EU grants in the amount of about EUR2.5 million.
The EU provided grants for the preparation of project and technical documentation in the amount of EUR3.5 million for the 135-kilometre-long subsection from Brestovac to the North Macedonian border.
Nis - Dimitrovgrad, to the Bulgarian border
The modernisation of the Nis - Dimitrovgrad railway section, including the construction of the railway bypass around Nis has mostly been supported by the already-approved EU grants in the amount of about EUR74 million, as well as by the EIB loan in the amount of EUR134 million euros.
The remaining amount, EUR268 million, will be co-financed by the European Union in the amount of about EUR30 million.
The EU financed preparatory activities for the modernisation of the entire section and bypass with a grant worth EUR2.5 million.
Along with the main railway corridor passing through Serbia, the EU has so far provided EUR1.2 million for the preparation of project and technical documentation for the reconstruction and modernisation of the Stalac - Kraljevo - Rudnica section all the way to the border with *Kosovo.
This railway section is not part of the Corridor X, but is located on the extended system of the Trans-European Transport Network (TEN-T Core).
* This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence