Summary
Competitive and costumer friendly transport requires the market dominant railway companies that do not raise prices. Therefore, the EU has adopted the so-called “The Fourth railway package” that allows regulators to impose sanctions on a company which creates obstacles for competitors providing services on their network. The EU improves competition and protects passengers with that regulation.
Implementation of EU Railway packages is a priority for Serbia in the coming years. That is the core of the Comprehensive Rail Reform in Serbia: improve operational and financial state of the railway sector in Serbia in line with the EU directives and relevant Serbian laws. Several reforms have already started in this respect, including opening of the rail market in 2016 to private foreign and domestic companies, separation of infrastructure manager from the rail operators, and improvement of rail safety.
However, the problems still exist. In the business environment, there is significant state presence in the economy , high level of state aid, weak private sector, weak competition and legal uncertainty, which substantially increases the cost of doing business. Failure to adapt to market conditions, expansion of road transport, insufficient quality of transport services, high operating costs, high losses, inadequate organisation of the system, etc., influence initiation of railway transformation process.
The main purpose of this project is to give all the necessary support to the Ministry of Construction, Transport and Infrastructure and the Railways of Serbia with developing reform plans and assist with the implementation of the business processes reform (including a labour retrenchment plan).
The aim of restructuring of the “Serbian Railways” JSC is to make the railway companies in Serbia profitable, economically liable, efficient and competitive in the long run, under the conditions of liberalised railway transport market in Serbia.
Detailed information
Restructuring of Serbian Railways JSC:
http://www.uklo.edu.mk/filemanager/HORIZONTI%202017/Horizonti%20serija%20B/VII-04.Kecman_N_RESTRUCTURING%20OF%20SERBIAN%20RAILWAYS%20JSC.pdf