1. GOVERNMENT OF ROMANIA MINISTRY OF PUBLIC WORKS, TRANSPORTS AND HOUSING
ROMANIAN RAILWAYS REFORM
- ACTUAL STATUS -
V. N. OLIEVSCHI
General Director
Directorate for Railway Transportation
Bucharest, April 2002

2. Main Ideas Railway reform is a necessity all over the world
Specific issues for economies in transition make the process more difficult
Romanian Railways reform started several years ago and already achieved significant results in creating:
the appropriate legal environment
the new institutional framework
Romanian Railways reform is in a difficult moment, but MUST continue based on the joint capacity of Romanian Authorities, IBRD, EBRD and EC to overcome the difficulties

3. Which is the goal of
Railways reform ?

4. Railways market share EU Railways Market Share 1990 1997
Passengers 10% 6%
Freight 32% 14%

5. Specific issues
for the economies
in transition

6. Specific factors resisting change
Management and employees culture of ‘command and control’
No history in the commercial marketplace
Weak technical status (infrastructure and rolling stock)
Government budget has few dollars for transitional social and track subsidies
Economy in transition (huge losses of market in few years, difficult to make predictions about traffic evolution)
Political instability and change

7. Romanian railways
Legal & Institutional
Reform

8. Basics of Legal Environment of Romanian Railways [Governmental Ordinance 12 / 7 July 1998]
Accordance with European Union directives
More Railways Operators allowed
PSO contribution from the state budget
Turning to account of exceeding assets for capitalization of newly established companies
Freight tariffs deregulation
Establishment of immediate privatization goals
New companies - free of historical debts

9. S N C F R Institutional Reform Freight Company Passengers Company
National
Railway
Company
(Infrastructure)
Freight
Company
Passengers
Company
Railway
Management
Company
Assets
Management
Company
CFR
CFR-Marfă
CFR-Călători
SMF
SAAF