Railway revenues from passenger transportation decreased almost 7 times in 2020, therefore tariffs for these services might increase.
This is stated in a Public Property Agencies’ press release, which presents the situation at the "Railway of Moldova" state enterprise (CFM). It is noted that the activities of the enterprise remain vulnerable in the context of the pandemic, the general economic situation in the country and interstate relations. Railroad revenues from passenger transportation decreased from 157.1 million lei in 2019 to 23.9 million lei in 2020. The company's losses in this segment of activity amounted to 114.5 million lei. At the same time, freight traffic in 2020 amounted to 601.9 million tonne-km, having decreased by almost 35% compared to the previous year (for export traffic, the decline was 40.9%, for transit traffic - almost 72%). The decline in export traffic was influenced by the decline in agricultural production, and transit traffic was affected by the economic situation in neighboring countries, as well as the direction of goods to the Ukrainian port of Izmail, bypassing Moldova. According to the financial report of the company, out of the total the railway company’s expenditures amounting to 60 million lei, more than half is the wages fund (35 million lei). Debts on loans to banks, starting from 2015 and until March 10, 2021, amounted to 490.9 million lei. The Public Property Agency (APP) notes that, along with the management of the CFM, it took measures to improve the situation at the enterprise. “Firstly, the APP managed to balance the long-term stagnation in the company's development that continued in 2010-2019 because of the poor management. Secondly, all schemes related to transport services, including illegal fees, were eliminated. Also, a schedule for the payment of wage arrears has been established and is being observed. Salaries for December 2020 have now been partially paid according to the schedule,” the APP reports. Currently, alternative sources of income are being identified to pay off the accumulated debt. “Anticipating a possible increase in fares for passengers, control over fares is tightened, and decisions are being made to subsidize passenger rail transport,” notes the APP. The Public Property Agency also clarified that during the tender held in March 2021, the CFM sold 2 thousand tons of ferrous and non-ferrous metals worth 16 million lei. Of these, 11.5 million lei were used to pay off wage arrears, about 3.5 million lei - to pay off debts for diesel fuel, and 1 million lei - to pay off tax liabilities to the State Tax Service. // 18.05.2021- InfoMarket.
