In May, the Serbian Parliament adopted the “Railway Law”, a law that will permit competition and complete the restructuring of ZelezniceSrbije. This new law represents the legislative framework for this sector and replaces the former law effective since 2005. The new legislative framework aims at integrating the railway system within the European market, but it is also a measure in view of Serbia’s accession to the EU.
The country’s EU accession is a target of the authorities and therefore, the medium and long-term development strategies are elaborated in compliance with the EU objectives set for each sector individually and which impact on the establishment of the European single market. This is also the case of Serbia which, in 2003 (during the reunion of the European Council in Thessaloniki), was identified as potential EU candidate country. Therefore, the European Partnership for Serbia was adopted in 2008 setting the priorities of the membership application submitted in 2009. In 2010, the ratification process of the Stabilisation and Association Agreement was initiated and after two years (in 2012), Serbia received the statute of candidate country.
In this context, the transport sector is vital in the development policies of the entire EU territory which determines the harmonisation of legislation and the adaptation to the European standards and objectives to establish a single market. In this segment, Serbia is very important to the EU, its geographical position being of strategic significance: through the pan-European corridors – Corridor VII (Danube) and Corridor X (Austria-Serbia) – Serbia has the shortest and the most reliable transit connections between the countries in Central and Western Europe and those in the south of Europe, Middle East and Far East.
The construction and modernisation of the railway infrastructure, especially by using financing from the financial institutions, the restructuring of transport services within a modern, safe and functional system are the most important prerequisites of the authorities in stimulating regional development and in reaching their objective of economic and social development in a sustainable manner. The investments granted so far to transport cover a small part of its real needs. “The total value of public investments necessary to infrastructure development by 2027 is estimated at EUR 15 Billion, of which the necessary financing for the modernisation of Corridors X and VII, compliant to European standards, amounts to EUR 4 Billion”, shows a document elaborated by the Serbian Government (Needs of the Republic of Serbia for International Assistance In the Period 2011-2013).
The railway network is 3,809km long, its density being compared to the EU-27 average (50,1km/1000km2) and with France and Romania which have a density of 46 km/1000 km2. Over 46% (1,768 km) of the network are main lines, 32.7% of which are electrified.
For the integration of the infrastructure and the optimisation of services in compliance with the European standards, Dragoljub Simonovic, the head of the national railway company, ZelezniceSrbije, said in May that they plan to invest EUR 1.4 Billion in the projects for the modernisation of the infrastructure and of the rolling stock in 2013-2014. Over the next years, the company’s investments will exceed EUR 4-5 Billion.
The railway sector will be opened in 2014
Aside from the importance of moder-nising the railway infrastructure, the Instrument for Pre-Accession Assistance (IPA)-the Multiannual Indicative Planning Document-2011-2013 for Serbia stipulates that the “reform of the railway sector has to intensify so as to improve the competitiveness of the railway transport, and the restructuring of the sector, as well as the market liberalisation are on-going”. According to the latest report of the Commission (October 2012), “railway transport has made little progress. The transformation of the Railways into a holding company including four different companies is underway. In fact, the market remains closed because of the high licensing costs and time (maximum one year)”.
To contribute to the implementation of the community acquis and to Serbia’s accession to the EU, the actual process has specific requirements for the gradual opening of the market. At the beginning of May, the members of the Committee for European Integration within the Serbian Parliament adopted the railway law elaborated by the Deputy Minister of Transport, Dejan Lasica, a document “aimed at improving the efficiency of the domestic railway system and at integrating the Serbian services into the EU transport system”, he declared during a meeting of the Committee. During the same month, Serbia’s Parliament adopted the new Railway Law under which the liberalisation of the sector would start on 1 January 2014. Starting with 2014, private companies could gradually receive license to operate in the railway freight transport sector.
The law will permit competition in this sector and will complete the restructuring of ZelezniceSrbije (ZS). “Initially, ZS will be separated into two companies: the infrastructure manager and the railway freight and passenger transport operator”, declared Dragoljub Simonovic. The two companies will be financially and functionally independent. Then, the operator will be separated into two distinct companies, freight transport and passenger transport.
What is important is the fact that the entity managing the railway infrastructure will no longer require organisation within the “public company” form – category of entities formed by the Serbian State. This should open the path for private companies to participate in infrastructure management. But private companies will have to be named by the Serbian State as entities authorised for developing public interest activities.
The new law regulates the route acquisition procedures from the infrastructure manager and offers the railway directorate more extended attributions on the adoption of regulations for railway and intermodal transport. The directorate will be in charge with taking measures to prevent disloyal competition and discrimination and will manage route demands.
The law also stipulates the adoption of a national railway infrastructure programme which should be elaborated and proposed to the government and then adopted by the parliament on five years.
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