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BDZ Cargo currently owns about 4,500 wagons, while only 2,000 are needed

Transport Minister announces major shake-up of Bulgarian Railways

Optimisation includes reducing costs and reviewing all freight rates

Photo: mtc.government.bg

A major restructuring of Bulgarian State Railways - Cargo (BDZ Cargo) is underway, including cost-cutting and a review of all freight tariffs, Transport and Communications Minister Grozdan Karadjov said on Monday at a meeting with trade unions in the industry.


"Nearly half of all freight transported by rail in Bulgaria is handled by BDZ Cargo, with the remainder managed by private carriers. However, last year's figures show that the company had a turnover of 71.58 million euro, while overdue liabilities reached 16.87 million euro," Karadjov said. According to him, any private company with such financial indicators would have declared bankruptcy.


BDZ's management reported that BDZ Cargo currently owns about 4,500 wagons, while only 2,000 are needed - even with increased freight volumes. In addition to surplus rolling stock, other redundant assets include buildings, facilities and land that are no longer in use but continue to generate financial losses for the state-owned company. As an example, the company cited 230 apartments owned by BDZ Cargo across the country


The unions stressed the need to draw up a recovery programme for BDZ.



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