City of Belgrade not to waive tram transport to private companies, looking to take over BG Voz as well

The City of Belgrade has no intention to waive tram and trolley transport to private transporters. Instead, it wants to expand the rail system in the capital of Serbia and take over BG Voz as well, if possible, Deputy Mayor Goran Vesic told Novosti.

The amendment to the Law on Utility Services, the adoption of which would enable private companies to develop rail systems and organize passenger transport in Belgrade, is now in the parliament procedure. Vesic, however, claims that tram and trolley systems will not be given to private companies through PPP agreements, as has been done with the bus transport.

– When it comes to trams, trolleys and the subway, we have no intention to do this. We want to expand the rail network toward Zemun and Visnjicko Polje. We are currently talking to the PE Serbian Railways about a potential takeover of BG Voz. The idea is for the public enterprise we recently founded, Beogradski Metro i Voz, to own BG Voz – Vesic said.

Why the said law is being amended remains unclear. It should be kept in mind that, of all the cities and towns in Serbia, only Belgrade uses trams and trolleys for passenger transport.

The explanation for the amendment given to MPs by the Ministry of Construction, Transport and Infrastructure is that “the essence of bringing the private sector into these activities is the reduction of the fiscal pressure on the local budget, the acceleration of infrastructural investments and the upgrade of services”.

Summary law amendment

The ministry proposes a summary passing of the new law, because, as they claim, “the problems found need to be solved as soon as possible” and “there are no other options for overcoming them”.

Allegedly, this should primarily benefit public enterprises, which are expected to constantly upgrade the quality of service and which have no sufficient funds to do so. Private sector is supposed to benefit as well, since it will have more room for investments and development of operations.

Grad Beograd

Narodna skupština Republike Srbije

Ministarstvo građevinarstva, saobraćaja i infrastrukture Republike Srbije

Železnice Srbije a.d. Beograd

JKP Beogradski metro i voz Beograd

BG Voz

Goran Vesic

tram and trolley transport

private transporters

Law on Utility Services

Belgrade public transport

expansion of rail system in Belgrade