Saturday, August 8, 2009

Romanian rail freight moves toward complete privatisation

State losses induce a rethink and sales of holdings
Shipping News Feature

ROMANIA - 2010 will see the privatisation of Romanian rail freight company CFR Marfa following Thursdays announcement by Transport Minister Radu Berceanu. The minister spoke after his meetings with representatives of the International Monetary Fund, the World Bank and the European Commission revealed their dissatisfaction with the financial results of the company and two other state run railway companies, CFR SA and CFR Calatori.

Both of the latter two organisations will also be forced to make major operational changes to produce more healthy balance sheets. Mr Berceanu said it had been the intention to privatise CFR Marfa this year but in February privatisation was shelved due to the company’s financial plight and the Ministry’s priority was to reinvigorate it.

His latest statement indicated that the planned sale “might bring in millions of Euros”.