The state-owned company “Moldova’s Railways” will no longer hold the monopoly on the railway transport services market. The Railway Transport Code approved by the Cabinet on November 21 stipulates that the private operators will also be able to provide railway freight and passenger transportation services. The railway infrastructure will continue to belong to the state, IPN reports.
Under the Code, the private railway carriers will have access to the railway infrastructure based on a payment that will be set in accordance with a calculation methodology approved by the Cabinet.
Currently, only one entity provides railway transport services in Moldova - Moldova’s Railways. Currently, the Railway Transport Code provides that the railway transport is a natural monopoly.
The Ministry of Economy and Infrastructure said that in the absence of investments in infrastructure and rolling stock, concomitantly with the decline in the flow of railway freight and non-subsidization of the railway passenger transport, Moldova’s Railways accumulated debts of about 500 million lei. The keeping of assets that are not involved in railway transport activities annually generate losses of over 100 million lei.
