HŽ’s Loss in Nine Months Amounts to 30 Million Kuna

Companies within the Croatian Railways Holding (HŽ Holding) will end the year 2009 with a minimal consolidated loss, and a positive business result is planned for the next year, said the CEO of HŽ Holding, Zoran Popovac, at today’s press conference.

Popovac assessed the current year as one of the most difficult for HŽ, except for wartime periods. He recalled the dismissal of the previous management, the arrest of its president Davorin Kobak, the tragic accident in Kaštela in July, and the accident near the Sušak – Pećine station in November. As he reported, the management has completed collective negotiations with the unions and agreed to freeze salaries in 2010. It was also agreed with the unions that there will be no layoffs of production workers without their consent. Social partners have also been provided with a restructuring and privatization plan, which proposes the privatization of HŽ’s subsidiaries under special conditions. In the first nine months of this year, HŽ’s companies operated with a consolidated loss of 30 million kuna, while in the same period last year, that loss amounted to 71.1 million kuna, Popovac said.

In the coming year, he added, a positive consolidated business result is planned. Total revenues from passenger and freight transport in 2009 are expected to be 1.02 billion kuna, while the plan for 2010 is 1.16 billion kuna. During 2009, HŽ is expected to transport 73.7 million passengers, which is four percent more than last year, and 12.8 million tons of freight, which is 20.4 percent less. The plan for 2010 is to transport 75.3 million passengers and 14.6 million tons of goods, Popovac said. According to the data he presented, a total of 1.06 billion kuna will be invested in the HŽ system throughout 2009, and for the next year, 1.63 billion kuna is planned for investments.

The largest amount, 1.07 billion kuna, is planned to be directed to HŽ-Infrastructure for the renewal and modernization of tracks. Among the ongoing investments are the renewal of the Vinkovci – Tovarnik – state border track, the replacement of electric traction on the Moravice – Rijeka – Šajane and Škrljevo – Bakar tracks, and the modernization of devices on the Oštarije – Knin – Split track, as well as the continuation of the construction of optical infrastructure. New investments include the renewal of the Okučani – Novska track, the reconstruction of devices at Zagreb’s Main Station, the rehabilitation of the Jakuševec bridge, and the capital overhaul of the Lokve – Drivenik track. Investment funds are also planned for the modernization of passenger cars and for the purchase and modernization of freight wagons. The renewal of locomotives and the development of prototypes of trains for urban-suburban and regional transport will also be financed, announced Popovac.(H)