Restructuring of Bulgarian State Railways – Cargo begins, said Deputy Prime Minister Karadzhov

A major restructuring of Bulgarian State Railways – Cargo (BDZ Cargo) is underway, which includes cost reduction and an analysis of all freight transportation tariffs. This was announced by Deputy Prime Minister and Minister of Transport and Communications, Grozdan Karadzhov, during a meeting on April 7 with Plamen Dimitrov, president of the Confederation of Independent Trade Unions in Bulgaria, representatives of the trade union organisation, and the management of Bulgarian State Railways (BDZ) and the National Railway Infrastructure Company (NRIC).

"Almost half of the freight transported by rail in Bulgaria is handled by 'BDZ Cargo,' while the rest is managed by private carriers. However, data from last year shows that the company’s turnover is 140 million BGN, and overdue liabilities amount to 33 million BGN," Karadzhov stated. He emphasised that any private entity would declare a company with such financial results as insolvent.

"At the moment, we have limited all external expenses to avoid accumulating more debts," the Deputy Prime Minister added, noting that efforts are being made to sell non-operational assets of the company that generate significant costs. He pointed out that 'BDZ Cargo' pays up to 250,000 BGN monthly for the parking of rolling stock on tracks owned by NRIC. "I have instructed the company to urgently prepare a list of non-operational assets and begin the sale process," Karadzhov stated.

BDZ management reported that 'BDZ Cargo; has about 4,500 railroad cars, but only 2,000 are needed for operations at the current increased workload. In addition to rolling stock, assets that are no longer needed include buildings, rooms, and land that are not being used as intended but are generating financial losses. As an example, 'BDZ Cargo' owns 230 apartments across the country.

Plamen Dimitrov, president of CITUB, mentioned that one of the key issues in the railway sector is the implementation of a fair procedure for selecting a passenger railway operator. Petar Bunev, president of the Bulgarian Railway Workers' Union, stressed that it is crucial to develop a recovery program for "BDZ - Passenger Transport" and 'BDZ -Cargo', including securing the repair and maintenance of the rolling stock.