In the Republic of Moldova, the entire railway activity is managed by ÎS CFM, the sole operator and distributor of activities in the railway sector. One of the coercive factors standing the in the way of Moldova’s affirmation as a renowned transit point is represented by the unsolved issue concerning the districts located on the left bank of the river Nistru. This issue raises uncertainties and logistics problems which prevent Moldova from ensuring high quality and efficient transport services, especially on Pan-European Corridor IX. Recently, the Transnistrian Moldovan Republic suggested that the Republic of Moldova should resume railway traffic on its territory and that it is prepared to consider the terms previously demanded by Chişinău as specific requirements, especially in terms of placing ÎS CFM surveillance authorities on-board trains. As a result, the construction of the Revaca – Căinari railway section proved to be a good omen. This section was finalized in record time. Starting 18 September 2005, once the section was put into service and traffic was resumed towards the southern area of the country, the Bender railway hub lost its well-known importance and could no longer serve as blackmail leverage in the hands of the separatists. Another major gap is the issue related to the social objectives which, according to the reorganization plan, should be excluded from the management of the company and placed under the responsibility of the local or central authorities. However, no official document has been elaborated to that end. A Committee in charge of monitoring and organising the entire process was not created and the final objective of the reorganisation process was not set. The plan was designed to focus more on the technical aspects, thus avoiding the financial aspects. The current legal framework provides a secondary role for the aspects related to interoperability, efficiency and safety (aspects which are very important for the communitarian legislation). The existing legislation doesn’t define the basic principles of the rail transport legislation.
No measures have been taken to electrify the entire railway network. Moldova is the only country in the region that continues to linger in this situation. According to T. Kovalionok and O. Petrov, around USD 20 Million will be saved if the country introduces electric traction, based on the same freight and passenger volumes. The investments will be recovered within a period of 5 years at most. An attempt was made to electrify the Cuciurgan-Tiraspol-Chişinău-Ungheni section, but only the pillars were placed up to Calfa. The feasibility studies prove the fact that the electrification of the railway network would help reduce expen-ses by around 40%, increase the commercial speed to 60 km/h and save 25% of the fuel. Another major issue that hasn’t been solved yet concerns the commercial speed, which is very low compared to the European regulations. The reason lies in the poor state of the infrastructure and the old rolling stock. On the other hand, if one sleeper cost USD 16, the construction of 1 km of track would require several millions of dollars. Aligning the rail infrastructure to the international standards and modernising it represents the cornerstone for reaching a proper level of interoperability. Attracting investments in the railway sector is the only way to ensure their survival and that is why the country needs a fertile legal framework. In order for trains to travel at a speed of 160 km/h (EU average speed) on the Chişinău-Ungheni section, CFM requires investments of around USD 1203 Million.
In order to achieve the objectives stipulated in the EU – Republic of Moldova Action Plan, but also to bring the transport sector to European standards, a series of actions must be taken in accordance with the given objectives:
1. Elaborating a state policy on transport, common with the joint EU transport policy by: elaborating a National Development Strategy for a Sustainable Transport System; initiating the reorganisation of ÎS CFM; elaborating a modernisation program for the Moldovan railways; elaborating a program for the development of intermodal transport;
2. Rehabilitation, modernisation and development of the rail infrastructure, equipment and means of transport;
3. Improving the quality of the transport services and aligning them to the European requirements in order to integrate the Moldovan railways in the European transport system, by continuing the rehabilitation process and providing assistance for infrastructure modernisation and reorganisation;
4. Acceding to the European agreements and projects elaborated under the auspices of the United Nations Economic Commission for Europe (e.g. the Trans-European Railway);
5. Institutional development: initiating the reorganisation of several activities undertaken by the railway companies which resulted from the separation of ÎS CFM; implementing training programs at managerial and executive level in order to proper implement the acquis communautaire in the field of transport; initiating the project for technical assistance for the creation of the Railway Authority.
The transport reforms will initially begin with the elaboration of a state policy in the field of railway transport. Establishing a barrier in the state-railway relationship is of vital importance. This means that the state should no longer be involved in railway activities. ÎS CFM should change its status from state-owned company to commercial enterprise. This will allow the application of market economy principles in the railway activities. -The separation of the state-owned railways will be followed by the separation of the infrastructure manager and railway operator, at least at an accounting level. This will guarantee a minimal level of financial clarity in terms of cost, expenses, economic forecast, financial activity analysis etc. This separation will provide a financial recovery of the railway sector through the reorganisation of the non-profitable branches.
by Emil Dănescu, PhD Candidate
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