Foreign investors interested in Romanian rail freight transport

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The Romanian railway transport caught the eye of international investors due to the pace in which rail freight transport has been developing over the past three years.
In the race for the privatisation of CFR Marfa (Romanian Railways’ freight arm) that covers 75 percent of the relevant market could enter Deutsche Bahn (Germany), OBB (Austria) or RZD (Russia).
According to daily Business Standard, which refers to sources of the railway field, German investors aim to hold supremacy in Eastern Europe, whereas Austrians are interested in the southeast part towards Albania.
A few months ago, Deutsche Bahn announced it plans to expand to Romania and Poland with investments worth dozens of millions of euros targeting the Romanian market alone.
The representatives of the German company quoted by Financial Times Deutschland, said Romania provides significant opportunities of investments allowing for an economic rise standing at about 6 percent a year.
The German operator is already present in the freight railway transport in Romania through Logistic Services Danubius in Timisoara (western Romania).
According to consultant’s recommendation, the privatisation of CFR Freight will be made through the entire sale of the stake held by the state, within an open-cry auction or direct negotiation.
„The institution that will decide on the privatisation of CFR Freight is the Authority for the State Assets Resolution (AVAS). At the same time, a viewpoint of the European Union should be requested so that the privatisation procedures be in line with European provisions. The privatisation strategy will be approved through government’s decision,” said Transport Minister Ludovic Orban.
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