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Transport Ministry: Railway Sector to Post Loss of €290 mn in 2010
Wednesday 14 April 2010 Zoom in | Print page
Bratislava, April 14 (TASR) - The Transport, Posts and Telecommunications Ministry, which has proposed merging the three state-run railway companies (ZSSK, ZSSK Cargo and ZSR), said on Wednesday that the losses of the railway sector in Slovakia are expected to reach €290 million this year.
"The growth in the performance (of the sector) after recovering from the crisis should reduce the loss to around €150-160 million in 2012 and 2013," said the ministry.
Despite the aforementioned losses, millions are being invested into modernisation of the railways, with contributions from Eurofunds reaching €350 million annually. The state's share is projected to reach as much as €500 million in 2012, for example, with the sum to go down gradually in subsequent years.
The Transport Ministry points out that the overall funding of the sector may in the future be influenced by the merger of the three companies. As early as this year, a holding company called Slovak Railways should emerge, with ZSSK (Zeleznicna spolocnost Slovensko - doing business in public transport) and ZSSK Cargo to become linked to Slovak Railways both through property and personnel.
For the time being, ZSR (Zeleznice Slovenskej Republiky, which maintains the railway infrastructure) will be linked to the new company only through personnel. The merger is estimated to be finished in 2012.
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