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February 7, 2023

1,000 km of railway auctioned off by CFR

CFR SA has scheduled for Thursday, on the Romanian Commodity Exchange (BRM), a new auction for the lease of railway, part of the non-interoperable rail infrastructure, trying to find lessees for a total of 1,016.2 Km of railroad.
The open ascending bid auction is for the lease of 29 sectors of railroad governed by the regional branches of Bucharest, Craiova, Timisoara, Cluj, Brasov, Iasi, Galati and Constanta.
CFR SA announced in July its intention to let out almost 1,100 km of railway, but has only managed to award three sectors totalling 63.7 Km, for which it will cash an annual rent of RON 620,000 exclusive of VAT, according to information made available to Mediafax at the time.
‘If so far the railway sectors have been put up for auction in groups, beginning with October, licensed railway transport operators will be able to bid on one or several non-interoperable sectors’, states a release of the public railway network administrator.
The lease as agreement will be valid for four years and the award criterion will be the best price.
‘We expect transport operators to support the keeping of rail transport along non-interoperable sectors, especially since, as of this month, there is no more obligation to bid on minimum a group of sectors. Now they have the opportunity to participate in the auction only for a single railway sector’, CFR SA General Manager Macarie Moldovan said.
The winning companies will also have to take over existing CFR staff or the personnel who works in the awarded sector or group of sectors.  The non-interoperable railway lease programme is one of the commitments Romanian authorities shave under existing international financial arrangements.
CFR leases 115.7 km of railway through tender
CFR SA has leased on Thursday only 115.7 kilometers of railway to RC-CF Trans, as part of a tender that took place on the Romanian Commodities Exchange (BRM). CFR had intended to lease 1,016.2 kilometers that were part of its interoperable railway infrastructure.
The Ploiesti-Armasesti (48.1 km) and the Faurei-Urziceni (67.6 km) railway sections were leased in the tender, at a price of RON 591,500 and RON 166.500 per year respectively.
The takeover of the aforementioned sections, including of the public railway transport services, will take place within 29 days after the signing of the contract, a communiqué released by the administrator of the public railway network shows.

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