BRATISLAVA, December 27, (SITA) — Minister of Transport Jan Figel (KDH) informed regarding contracts on services in public interest, which the Ministry of Transport, Construction and Regional Development sealed on Monday with two railway companies for ten and three years effective as of the beginning of 2011 that the state undertook to earmark a subsidy of EUR 205 million and EUR 205 million to the state-run passenger railway transport operator Zeleznicna Spolocnost Slovensko (ZSSK) and the railway network operator Zeleznice Slovenskej Republiky (ZSR) respectively next year.
The Minister of Transport stated that the contracts would help the companies stabilize and consolidate so that they could operate in a balanced way without losses and develop in 2012. “The aim of the contracts we concluded today is to secure stability as well as develop pressure for further modernization, boosting quality of services and effectiveness of transport,“ said Figel.
The overall contracted loss from operation of passenger railway transport in 2010 has stood at EUR 228 million to date while the state budget covered EUR 149 million. ZSSK finances the difference amounting to EUR 79 million from bank loans. For next year, the state-run passenger railway transport operator claims a 11.5-percent lower state subsidy. The state has ordered and guarantees 30.3 million train kilometers in passenger railway transport for next year, which is 2 million (about 5 percent) fewer kilometers compared with the existing volume. “It will affect about 3 percent of passengers,“ said Director General of ZSSK Pavel Kravec and added that the reduction would affect some less busy regional lines after modification of the present timetable in March 2011. Singing a ten-year contract should prepare the ground for balanced operation in future years and for investing of generated profit, says Kravec and added it was too early to talk about future railway fare increase. The company is still analyzing management of finances while consolidation measures should be determined by the end of February of next year.
The state subsidy for operation of the railway network should increase from current EUR 119.5 million to EUR 200 million, up by over EUR 80 million, based on the contract with ZSR, next year. The difference represents the sum, by which revenues of the administrator of the infrastructure should decrease after reduction of fees for using railways from EUR 10 to EUR 3.50 per kilometer as of next year. As long as the state budget counts on the existing basic volume of the subsidy for ZSR, the additional payment should be secured from the future budgetary measures of the government. “The model we are introducing is based on a combination of fixed and variable costs, which allows introduction of a new price for transport on the railway network,“ said Figel. Modernization of railway infrastructure will continue to secure faster, more comfortable and safer railway transport, he said.
He contract with ZSSK on operation of passenger railway transport has been signed for a ten-year period from 2011 to 2020 for the first time instead of previous three-year contracts. The contract with ZSR was signed for three years from 2011 to 2013 while previously, a new contract was signed every year. The new legislation on the railway transport from 2009 we well as the European legislation on unification of provision of services in the railway and road transport enable extension of validity of contracts. The Minister of Transport reminded that the planned liberalization of passenger transport next year would enable private companies to secure about 35 percent of those services.