In the transport sector, Croatia’s accession to the EU has determined the authorities to reform and rethink the transport system, with special focus on railway transport, and in order to benefit from the future financial support of the EU, they have to provide the right administrative capacity to manage funds and elaborate viable projects. Thus, as of the second half of the year, Croatia is eligible for structural and cohesion funds and EC approved investment plans for the cohesion policy worth EUR 449.4 Million.
For Croatia, integration into the European railway system brings challenges related to the modernisation of infrastructure, the implementation of the restructuring plan and the adoption of additional measures, imposed by the Fourth Railway Package and the EU Strategy 2020. Croatia will also create new opportunities related to the rationalisation of the sector and structural reforms, the business opportunities being high as a consequence of market liberalisation.
The availability of European funds and the EU priority for the railway sector, as well as the improvement of railway competitiveness become opportunities for the Croatian railway sector.
Croatian authorities estimated that the railway sector will benefit from massive investments by 2020 which will determine the formation of a continuous investment flow, according to Deputy Prime Minister Branko Grcic.
“Railways are of strategic interest for the government and this can be proved by underway projects estimated at EUR 2.5 Billion. These projects represent the foundation of a new development cycle next to other projects priced at EUR 400 Million, some already finalized, others in preparation or in negotiation. Railway projects will mostly be financed with European funds and the state can borrow a small amount to cover the need for investments”, declared Grcic.
The aim of railway investments, which need to amount to HRK 40 Billion (EUR 5.2 Billion) by 2020, was to optimise the quality of infrastructure so as to allow trains to reach speeds of 120 km/h for freight transport and of 160 km/h for passenger transport. “The priority of these investments is to ensure the quality of infrastructure on the pan-European corridors 5b and 10”, declared Minister of Transport Sinisa Hajdas Doncic.
According to World Bank, Croatian Railways will need EUR 130 Million/year to maintain the railway system to the current situation of which EUR 55 Million for infrastructure maintenance, EUR 30 Million for freight rolling stock and EUR 45 Million for passenger rolling stock.
The European funds (EUR 2.4 Billion for the Croatian transport sector in 2014-2020) will ensure most of the railway financing, being allocated only for the core network and for the rolling stock dedicated to passenger transport. The World Bank Report recommends the government to limit public investments in this sector to co-financing projects with European funds, core infrastructure and rolling stock for freight transport.
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