Interview with Sejdi Hoxha, Chairman of the Board of Directors, Kosovo Railways JSC
Although a small country, Kosovo plans to gain an important position on the European transport market, by implementing infrastructure projects to connect to the European railway network. Consequently, the railway company takes an eager interest in the funds granted by international financial institutions and aims at developing an efficient railway infrastructure and a competitive environment. In terms of transports, starting with 2011, Kosovo plans to join the countries which had already opened their railway markets to competition.
All these projects and strategies are presented by Sejdi Hoxha, President of Kosovo Railways Board of Directors.
Railway Pro: The rail infrastructure in Kosovo needs rehabilitation and construction of new lines to integrate to the European network. What can you tell us about these projects ?
Sejdi Hoxha: Kosovo Railways’ network measures 333 kilometres of railway tracks spread all around Kosovo from North to South and from East to West. Unfortunately, Kosovo is not part of known Pan European Corridors, Corridor VIII and Corridor X, but it is part of Railway Route 10 which connects Serbia, Kosovo and Macedonia. Kosovo has three international connections, through Railway Route 10 in North with Serbia, and in South with Macedonia, as well as the East line which is connected with Serbia.
Therefore, our priority railway line and also within Pan European Corridors, is Railway Route 10 which is as parallel line of Corridor X. We know that Corridor IV and Corridor X are very important corridors for railway transport, but at the same time Railway Route 10 is very important for railway transport too.
Railway Pro: In this concern, what is the railway integration strategy?
Sejdi Hoxha: Kosovo, as the most recently formed state in Europe, is interested to be part of EU and this is a main objective of Kosovo Railways too. So, our target is to be connected with regional countries and through them with the European integrated railway network. We are working hard with all stakeholders in the EC and within the region to achieve needed standards in order to be part of the European integrated railway network. We have excellent cooperation with Macedonian Railways, and we are interested to cooperate with Serbian Railways, as well. Unfortunately, at the moment, this is not possible because of obstacles coming from Serbia. However, we believe that this problem will be solved very soon.
In order to prove that Kosovo Railways is interested to be part of regional and the European integrated railway network, Kosovo Government is working continuously in this direction. In 2009, it approved the Development Multi Modal Strategy which foresees the development and integration of the railway sector in Kosovo. The separation process of the Kosovo Railways JSC into Railway Infrastructure and Train Operations is ongoing, the establishment of the Railway Regulatory Authority is completed, and the new modern General Law on Railways based on European Standards is drafted.
Based on all documents and activities, our strategy is very clear: we are focusing all efforts towards the European integrated railway network.
Railway Pro: What new infrastructure projects will Kosovo initiate to upgrade infrastructure and interoperability? What is the volume of investments necessary to new and underway projects?
Sejdi Hoxha: Based on the EC support, we have to complete the feasibility study for modernisation of the Railway Route 10. There are two important scenarios for modernisation of Rail Route 10. First scenario is to repair Rail Route 10 under existing projected conditions which will cost around EUR 1,600,000 Million, while second scenario for double track will cost approximately EUR 6,000, 000. Except for Railway Route 10, we are interested to repair all other railway lines and we are expecting to start the elaboration of feasibility studies.
It is important to mention that investments in Railway Route 10 will enable expected integration of Kosovo Railways into the regional and European integrated railway network, and this Route will serve as a model for competitive, open and non-discriminatory line for all train operators. To that end, we are focused on improving our Railway Route 10, and after the feasibility study is completed, we believe that our dreams could come true.
One of our future strategic projects is connection with Albanian Railways. This is one of most important projects, a result of which would be to connect Corridor VIII with Corridor X. We believe that we could rely on the EC’s to start with the feasibility study for this project.
Railway Pro: Financing is vital in project implementation. What can you tell us about the implication of the authorities and financial institutions?
Sejdi Hoxha: We received financial support from the state budget and thus we managed to develop some important capital projects in railway infrastructure and in train operations too. Knowing the economic situation in Kosovo and other priorities, it was not possible to benefit from all the expected financial support for project development.
But we needed support from our government to maintain our railways and to develop certain number of projects in order to have safe traffic of passengers and freight.
After the elaboration of the feasibility study, we are expecting investments from different international financial institutions for modernisation of the Railway Route 10 and other development projects for Kosovo Railways.
It is worth mentioning that currently Kosovo is a member of the World Bank and the International Monetary Fund. Kosovo is working hard to be member of other international financial institutions. At the same time, in 2009 a donors conference took place in Brussels to support different projects in Kosovo. So, as a trust-worthy company, we are expecting that international financial institutions will support our development projects in the near future.
Railway Pro: How did the financial downturn impact on the domestic and international rail freight and passenger transport ?
Sejdi Hoxha: The global financial crisis has affected the entire Europe, as well as Kosovo. Being aware of this problem, Board of Directors and Management of Kosovo Railways JSC has taken different steps in order to overcome this crisis. So, thanks to our good plans we have managed to overcome all problems and fulfil planned incomes.
Seeing and analysing the existing situation, we have changed our market policy and functioning of the company. We made a very strong marketing campaign directed towards small and medium-sized companies in order to persuade potential customers to transport by rail. We cut certain expenses and reviewed budget in order to better adapt to new situation. We sent a certain number of employees in annual leaves in order not to have over-staffing problems in operation. These measures have shown that we made the right steps at the right time. We managed to make several small and medium-seized companies shift from road rails. Therefore, at the end of 2009, figures shown that we managed to transport 10.8% more than in 2008 and 14.76% more than planned. By cutting expenses, we achieved to develop all capital projects estimated for 2009. We were not forced to reduce the number of employees, and this was our best achievement.
Railway Pro: With respect to the railway recovery plan, you acknowledged a change of policy aimed to relaunch the transport sector. To that end, what is the strategy of Kosovo Railways to revive and render efficient rail transport?
Sejdi Hoxha: Kosovo Railways is 100% state-owned company. Based on the Law on Railways in Kosovo and the recommendations of the EC, we have started the company’s restructuring process.. Therefore, by the end of this year, the company will be divided into two new companies: Infrastructure of Kosovo Railways JSC, and Train operations of Kosovo Railways JSC.
At the same time, the Ministry of Transport and Communications is preparing legislation in order to attract possible investors in the railway sector of Kosovo, and what it is more important to open railway market for domestic and foreign train operators.
Railway Pro: What can you tell us about rail market liberalisation in freight and passenger rail transport?
Sejdi Hoxha: The new General Law on Railways in Kosovo will be finalized by the end of 2010. This Law is made based on the European standards and enables opening of the railway market. So based on our plans, by the end of 2011, the railway market in Kosovo will be opened to different operators and monitored by the Independent Market Regulator. In this case, state will intervene only in Public Passenger Transport through PSO Contracts which are in full compliance with the Law.
Railway Pro: Authorities play a significant role in railway liberalisation. What is the authorities position in that respect? Is rail transport and logistics development the authorities’ strategy in reviving the economy?
Sejdi Hoxha: We are definitely expecting full cooperation and support from all specific authorities, such as Ministry of Transport and Communications, Railway Regulatory Authority, Government of Kosovo and others. Of course, we cannot move ahead without their support. In this context, the role of MTC is very important and as I have already said, they are working at drafting of the legislation in order to prepare the way for the liberalization process.
Railway Pro: What is Kosovo Railways JSC’s strategy to turn into account and increase the freight transport volume with countries in Central and Eastern Europe ?
Sejdi Hoxha: Kosovo Railways’ strategy is very simple: to be opened to all possible clients, to offer all possible requested services without prejudice in the best non-discriminatory way. We worked and we are working strongly to convince all our employees that customers have to go first. We have created a competitive atmosphere for all jobs and we have good results in all directions.
Kosovo is expecting different development projects, especially in the mining industry, so this means that in the near future we will have what to transport and to develop best cooperation with neighbouring countries, EU member states and Asian countries, as well.
Finally, with modernisation of the Railway Route 10, we will create a possibility for better connection with the regional and the European countries in order to have more possibilities for passenger and freight transport. We strongly believe that we will persuade our neighbouring railways to work closely with us in order to have better future and connection to European and Asian Countries.
Recorder by Pamela Luică
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