The state has been a mother to the road sector for the last twenty years, while being a stepmother to the railway sector, with 84 percent of the funds allocated by the strategy spent on road investments and 10 percent on railways, but this should change, is the message from the panel “What Kind of Railway Do We Want?” held on Wednesday at the Croatian Employers’ Association.
At the panel organized by the Railway Association, it was stated that the railway sector has been deeply neglected in terms of state or political interest compared to the road sector for several decades.
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The president of the Railway Association, Zoran Maršić, stated that the restructuring of the Croatian railway sector has been ongoing since 1995 and that it has had varying results to date. He believes it is high time to make and implement important decisions for the strategic restructuring of the railways.
“In the last 28 years, the railway has been led by 25 managements, and during the same period, 29,525 workers left the railway. Of the funds allocated in the Transport Strategy 1999-2015, only 10 percent was spent on railway investments, while 84 percent went to road infrastructure. This shows how politics treats the railways,” said Maršić.
He highlighted the dismal figures showing that only 3 percent of passengers and 17 percent of freight are transported by rail annually, while the European average is 8 percent of passengers and 28 percent of freight.
“The strategic goal of the European Union is to transport at least 50 percent of goods and people by rail by 2050. The railway in Croatia has always been in a subordinate position compared to the road sector,” said Maršić, adding that he is aware that railway workers can hardly expect secure and better-paid jobs unless passenger and freight transport is strengthened.
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He expects the government to adhere to its plans related to the restructuring of the railway and to implement these ideas into action.
On the other hand, State Secretary in the Ministry of the Sea, Transport and Infrastructure, Nikolina Brnjac, claims that the government has made the issue of railway transport one of its priorities.
“The Strategy for the Transport Development of Croatia has been adopted, a Sector Policy Letter is being prepared, the National Investment Program for Railway Infrastructure is being revised, we plan to create a sector strategy for the railway, and a new national investment plan for this sector, especially in railway infrastructure,” emphasized Brnjac.
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Anto Bajo from the Institute of Public Finance says that Croatian railway companies have mostly been operating at a loss for the last ten years, which he believes is a result of unsuccessful restructuring.
After 27 years, Bajo advises, the government must prioritize the railway, reduce subsidies, improve asset management, select competent management personnel, draw a larger portion of investment funds from EU funds, and redirect money from road loans to major railway strategic directions.
Similar Situation in Slovenia
State Secretary and Head of the Railway and Cable Car Sector in the Ministry of Infrastructure of the Republic of Slovenia, Vlasta Kampoš Jerenec, claims that Croatia and Slovenia face the same problems when it comes to railways.
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“The same problems exist both here and there. Perhaps we started solving them a bit earlier since we joined the EU before you. The Slovenian railway is now a holding company, and we are satisfied with its functioning, but we are also waiting for improvements in some services,” said Kampoš Jerenec, adding that the restructuring of Slovenian railways is not yet complete.
The Railway Association is a non-profit umbrella organization for all interested stakeholders for the improvement of railway transport in Croatia. It was established in 2008 and is based in Zagreb. The Association operates as a non-profit and non-governmental organization founded by unions and companies from the railway sector. It currently has more than 30 members, including companies and various associations.