Russia and Greece eye Bulgarian rail freight operation

[John Ashworth]

Russia and Greece eye Bulgarian rail freight operation

ifw Thu, 19 Apr 2012

Cash-strapped state operator set to sell profitable cargo division this year

Rossiyskie zheleznye dorogi, Russia’s state-owned rail freight operator, wants to acquire Bulgarian State Railways’ freight operations, according to media reports.

Russian Railways, one of the largest companies in the world, wants to buy the Balkan country’s freight arm in a joint deal with the Greek rail operator, according to the Bulgarian Trud daily newspaper.

The Bulgarian rail freight services would be of strategic importance to operators using Greece’s Thessaloniki port, a vital gateway for Chinese cargo traffic to Europe, according to the newspaper.

The Romanian, French and Turkish state railways are also reported to be interested.

The privatisation of Bulgarian State Railways (BDZ) freight services is expected later this year, Vladimir Vladimirov, Chairman of the financially troubled state company, announced in March.

Reforms carried out in 2011, including reducing passenger services and personnel, provoked a massive railway workers’ strike in November.

However, the freight transport arm has been steadily registering profits.