Bulgaria to Open Railway Passenger Market to Domestic and Foreign Competition

Bulgaria is preparing to open its railway passenger transport market to competition, announced Deputy Prime Minister and Minister of Transport and Communications Grozdan Karadjov. The state plans to launch a non-discriminatory tender process that will allow both Bulgarian and foreign licensed passenger rail carriers to enter the market. This move aims to encourage the development of new routes and destinations based on commercial principles rather than state control.

Karadjov explained to reporters that this initiative is expected to improve service quality for passengers and stimulate the much-needed renewal of the country's aging rolling stock, which he described as being in poor condition. Although competition has been legally possible since 2009, and formally allowed under Bulgaria’s Railway Transport Act since 2019, no operators have yet ventured into this market.

The upcoming tender, included in the Recovery and Resilience Plan (RRP), will be designed to eliminate even the smallest barriers for potential operators. Initially, the state will stimulate competition by assigning subsidized contracts in different regional lots. The idea is for the operators to begin by providing the current level of service, but eventually to expand their offerings and operate commercially on longer and more profitable routes without state support.

Karadjov emphasized a regional approach, acknowledging that some areas will start with a single operator supported by subsidies, similar to the current state operator. Over time, competition should grow as companies take on more routes at their own risk. Drawing parallels with the telecommunications sector, he noted that competition typically benefits consumers by enhancing service quality.

The Minister also warned that any operator ignoring Bulgarian regulations, particularly ground operators, will face consequences - either they comply with the law or risk losing their licenses.

The tender procedure is expected to begin by the end of July, with a three-month window for submitting bids. Karadjov expressed confidence that both Bulgarian and foreign companies will show interest. After the submission deadline on October 30, evaluation and contract awarding should be completed by December 30. The new operators are then expected to start running services alongside the state operator from December 13, 2026.

On the same day, Karadjov hosted a public discussion involving trade unions, MPs, experts, railway companies, and NGOs to talk about the future of rail passenger transport in Bulgaria.

Foreign railway companies will be allowed to operate passenger services in Bulgaria once the Bulgarian State Railways’ monopoly ends at the end of next year. The competition will reveal which carriers will challenge the state monopoly.

Despite the changes, railway ticket prices will remain unchanged, and no rolling stock will be transferred to either the Passenger Transport company or private operators, Karadjov clarified.

Overall, he reaffirmed that introducing competition to Bulgaria’s passenger rail sector will not only improve service standards for citizens but also encourage the necessary modernization of the outdated train fleet.