Bulgaria’s Railway Co Suspends 38 Trains as of Jan 12 over Smaller Subsidy

Business | January 8, 2015, Thursday // 09:47|  views

Photo by BGNES

The state-owned Bulgarian State Railways (BDZ) drops 38 trains off its schedule as of January 12 due to a reduction in its subsidy by BGN 40 M.

Apart from that, BDZ will also cut staff in order to cope with the smaller amount of money.

The reduced subsidy will force the state-owned railway carrier to cut 5 million train-km, or a total of around 140 trains, according to Darik radio.

The next batch of trains, which are to be suspended as of February, is to be announced in a few days’ time.

As of the beginning of next week, 38 trains will stop running and 10 trains will operate shortened routes.

According to BDZ, the company will first suspend “the most inefficient” trains which are used by the smallest number of people, with over 90 trains more to be dropped so as to allow the Passenger Services unit of state-owned BDZ to cope with its downsized subsidy.

Apart from the suspension of trains, the company also faces staff cuts.

According to preliminary calculations, the total headcount is to be reduced by 1500 people.

Trade unions have condemned the measure, stressing that a nationwide strike is being prepared, with a petition against the measure already backed by 10 000 signatures.

At the same time, the freight unit of BDZ, BDZ Freight Services, faces a new privatization procedure.

The debts of Holding BDZ stand at BGN 565 M, according to reports of Sega daily.

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Tags: subsidy, BDZ Passenger Services, BDZ Freight Services, BDZ, Bulgarian State Railways, privatization


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