Transport traffic could bring Croatia profits like tourism

If the Government of the Republic of Croatia had recognized the importance of Croatian Railways and invested in their development to become a regional transport leader several years ago, it is not utopia to say that transport could bring Croatia traffic and profits like tourism.

This was stated by former CEO of HŽ, Marijan Drempetić, at a press conference of the county organization of the SDP in Karlovac County, where he was joined by the president of the county organization, Ivan Vuković, and a member of the parliament and member of the economic council of the SDP. Considering that he believes the current Government of the Republic of Croatia has not identified any model of economic development and growth without borrowing and deficits, Crkvenac claims that only a drastic change in the existing philosophy of business management can achieve a development model without mere borrowing. The unsustainable situation in HŽ, highlighted by recent union-worker activities, served as a clear example for Crkvenac and Drempetić of managing the economy without developmental visions and strategies.

– The announcement of an investment of 15 billion kuna in infrastructure from unclear sources only shows that this Government fails to find a model for the development of Croatia without new borrowings. Of that, 780 million kuna relates to HŽ, and if about 490 million of due obligations are deducted from that, no effects will be achieved in HŽ with the remaining 290 million kuna. If investments had been made earlier in the modernization of HŽ, we would have had the Millennium Road from Adriatic ports with the help of HŽ through the Ogulin plate and the East-West direction important for the European Union, but also as an entry point for important economies of the Far East into that market, as well as connecting Central European countries with the Adriatic, which is their vital interest, said Crkvenac.

Marijan Drempetić emphasizes that during his term at the head of HŽ, a plan for the modernization of HŽ was agreed with the Government without foreign borrowing, based on the model of redirecting excise duties of 0.60 kuna from the retail price of gasoline. This was supposed to secure 16.3 billion kuna for the radical modernization of the traction system on strategic corridors 5b towards Rijeka, and corridor 10 from Tovarnik to Dobova, but later this source was redirected to road construction, which has reached the fifth generation of roads, while HŽ continues to operate on routes since railways were established in these areas. In this regard, Ivan Vuković pointed out that from the pompously announced project of the “lowland railway”, for which EU cohesion funds were mentioned for financing, only the construction of the second track on the railways between Zagreb and Karlovac and Zagreb and Križevci remains to be realized.

Current union actions are viewed positively by Mato Crkvenac only from the perspective of finally pointing out the catastrophic economic and security situation, considering that workers are not fighting directly for their earnings this time. The assessment of today’s participants in the press conference is that the 6.5-year union silence is also a reflection of the purchase of social peace by the ruling structure and later HŽ management through small concessions to union leadership, and that the responsibility lies not only with the Government but also with those managements that did not timely and fully recognize road transport as a competition supported by funds previously intended for the modernization of HŽ. (Mladen Volarić)