Bulgarian State Railways Struggling To Stay Afloat

Business | January 28, 2015, Wednesday // 13:16|  views

Bulgarian railways company BDZ posted a loss of BGN 51 M (EUR 25.5M) last year, Executive Director Vladimir Vladimirov said on Wednesday, highlighting an urgent need to overhaul the state-owned firm.

There will be no chance for improvement if reforms are not implemented, Vladimirov told Nova TV.

Referring to diesel theft at loss-making BDZ -  a hot topic in recent days in Bulgaria – Vladimirov said the company could at least try to curb abuse.

‘We can’t tackle all cases of theft in the company, just like we can’t tackle all cases of theft in Bulgaria,” he said.  

Lyubomir Iliev, manager of the company's Freight Services Department, on Tuesday said BDZ is planning measures to reduce diesel theft.

Video surveillance cameras will be installed on 60 locomotives and BDZ fuel terminals to monitor the actions of train drivers and other BDZ staff as part of those measures. The cameras will be connected to devices similar to the voice and data recorders used in aircraft.

The average volume of diesel fuel used by BDZ’s locomotives per ton kilometer has increased by 1.15 million litres over the past two years even though cargo traffic decreased, said Iliev.

In 2012, a cargo train used eight litres of diesel fuel per 100 gross ton kilometers on average, or a total of 8.42 million litres.

The average fuel consumption rose by a litre per 100 gross ton kilometers in 2013, increasing BDZ overspending by about BGN 1M. An increase by another litre per 100 gross ton kilometers was recorded last year, resulting in BGN 1.17M in overspending, Iliev said.

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Tags: Bulgaria, railways, BDZ, Vladimir Vladimirov, loss


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