Four companies to become from the 'Serbian Railways' by the end of 2012

"Serbian Railways" will become by the end of the year a closed joint stock company, divided into four separate companies. Transformation of the holding is in progress, and responsibilities of individual firms will be the infrastructure management, asset management, and passenger and freight transport.

European Bank for Reconstruction and Development (EBRD) has announced the public call for the consultancy company that will help "Serbian Railways" about transformation. This was also the pre- condition under which the EBRD approved in January a loan of 95 million euros for the rehabilitation of railway infrastructure.

- We haven't invested in infrastructure for a long time, because we had no money. We need loans. We have six sections that are in poor condition, 120 km have to be rehabilitated on Corridor 10 - says Zoran Sretenovic from "Serbian Railways", noting that creditors have their own interest, which is to have "Serbian Railways" transformed by the model of EU railway companies.

- This year, we expect organizational restructuring, and infrastructure might become next in three to five years, because it depends on many factors. First of all, on the strategy of the country, investments, markets - he says.

The task of the company's adviser for the transformation of "Railways" will also be development of new commercial functions in the holding, property assessment in order to make a plan for the commercialization, develop the plan for the management of surplus funds and real estate ...

- When the EBRD chooses the consultant, we will need that company's help with the functioning of a joint stock company, property status or relationship between the control and potential infrastructure operators. This will produce a series of specific contracts, which already exist in the EU countries - says Sretenovic.

412 million EUR from the loan

The total value of loans for the railway since 2001, amounts to EUR 412 million. On the question of the journal "Blic", why are the track so bad and trains so slow, Zoran Sretenovic replied that "without the modernization of The Railways would not work in general "