site.btaNational Railway Company's Cargo Division Seeks up to BGN 400 Mln in World Bank Funding

The cargo division of Bulgaria's national railway company is starting talks with the World Bank to discuss the company's investment programme until 2024. BDZ Cargo will be negotiating for up to BGN 400 million in funding for five new electric locomotives and 15 diesel-powered ones as well as 600 cargo train cars. Investing in rolling stock and railway infrastructure is a top priority for the Ministry of Transport and Communications, the ministry's press centre said on Friday.

In the meantime, the company plans to overhaul 10 locomotives and 250 cargo train cars.

Over the last few years, BDZ Cargo has failed to meet market requirements and has had difficulty running on schedule due to a shortage of rolling stock. Its electric locomotives are 45 years old on average, and 90% of its train cars were acquired about 40 years ago. The capacity of its train maintenance depots is not enough.

At the same time, the company is receiving transportation orders for growing amounts of cargo, which is why the shortage of rolling stock creates a risk of loss of customers and profit, the press release said. The new cars and locomotives will help BDZ Cargo regain its status as a strong and competitive market player.

The planned upgrade of the train fleet is expected to bring BGN 28 million in additional revenues in the first year alone. An extra 5% annual rise will be generated on top of that, beginning in the second year. Thus, BDZ Cargo will get a full return on its investment of BGN 400 million in 11 years.