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Better framework for local authorities implication

Better framework for local authorities implication. Government Decision 19/1997:

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Better framework for local authorities implication

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  1. Better framework for local authorities implication • Government Decision 19/1997: • Ministry of Transport and local authorities will assure transport facilities when social needs require such measures. In these cases Ministry of Transport or local authorities should compensate the transport companies with the difference of transport costs. • Government Ordinance 12/1998: • Railway passenger transport is considered public service. For this reason, the state budget or local authorities will compensate transport companies with the difference between transport costs approved by law and costs establish in accordance with them.

  2. THE NEW RAILWAY COMPANIES S N C F R DEBTS MANAGEMENT RAILWAY AUTHORITY RAILWAYS ASSET MANAGEMENT S T A T E INFRASTRUCTURE RAILWAYS MANAGEMENT SERVICES PASSEN GERS FREIGHT M A R K E T

  3. THE NEW RAILWAY COMPANIES S N C F R DEBTS MANAGEMENT RAILWAY AUTHORITY RAILWAYS ASSET MANAGEMENT S T A T E INFRASTRUCTURE CREATED 1 FEBRUARY 2000 RAILWAYS MANAGEMENT SERVICES FREIGHT PASSEN GERS M A R K E T

  4. - Flexibility - Tuning to local market - Better involvement of local authorities

  5. New structure for the Railway Passenger sector Local Authorities S T A T E B U D G E T Financial Support Tailored services I N F R A S T R U C T U R E PSO Compensations Access Charges 8 Regional Railway Passenger Companies (local services) Infrastructure Access PSO PSO Compensations Access Charges One Long Distance Railway Passenger Company (inter-regional and international services) Infrastructure Access PSO

  6. Motives for the new measures • Economic, organisational and operational decentralisation • Improved flexibility • Tuning of the transport offer to local market requirements (scheduling of services, composition of trains, tariffs, etc) • Improved competition with road passenger services • Involvement of the local authorities in the financing the local railway passenger services • Compliance with the EU Directives

  7. Financial results after one year CFR – Passengers – 11 billion Lei profit Short distance companies - 200 billion Lei losses Decision taken too early

  8. PASSENGERS COMPANY TECHNICAL STATUS

  9. Age of locomotivesPassengers Company In accordance with the legal framework, the life cycle for rolling stock is 20 years

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