Revamping Bulgaria's Rail Freight System: A Strategic Overhaul in the Works

BULGARIA: the national railway’s freight division, BDZ Tovarnni Prevosi, is set for a meaningful overhaul. Transport Minister Grozdan Karadjov has revealed plans aimed at slashing costs and reassessing freight tariffs.

“BDZ-TP manages nearly half of Bulgaria’s rail freight, while private companies take care of the rest,” he noted in April. However, the company reported a turnover of 140 million leva last year but also faced overdue debts totaling 33 million leva.

If it were a private buisness, such financials would likely lead to insolvency. To curb further debt accumulation, external spending has been limited.Additionally, options are being considered to offload non-essential assets,” he added. BDZ-TP incurs monthly fees up to 250,000 leva just for storing its rolling stock on tracks owned by National Railway Infrastructure Co.

The company possesses around 4,500 wagons but only requires about half that number for its operations. It also holds various properties and land that are no longer utilized effectively.

• The ministry has submitted a proposal regarding future passenger train contracts to the European Commission and raised some queries about the process involved.”We plan to engage in thorough discussions before announcing any tenders once all details are sorted out,” Karadjov stated.