Trains connecting Romanian capital Bucharest to the cities of Constanta and Brasov have recently been delayed because railway components were stolen. Those buying stolen railway components can be fined between RON 20,000 and RON 40,000, and be liable to pay for work needed on the affected railways.

Theft of railway components is hurting Romania's railway operator CFR. Thieves have stolen tracks, bolts, cables, anything that can be resold as scrap metal.

Romania recently decided to wipe off CFR's EUR 900 million debt, turning it into shares that will be taken over by the Transport Ministry, as sole shareholder. Most of the debt consists in unpaid taxes to the state budget, social insurance budget and special funds, but does not include taxes on salaries. According to the Government, this kind of support for CFR, which is the only company in Romania that manages the railway infrastructure, does not represent state aid.

CFR Marfa, CFR’s freight arm, is due for privatization this year. Romania plans to sell a stake of 20 percent in CFR Marfa, either through an Initial Public Offering, or with a strategic investor, by October this year. The company posted losses of EUR 31.3 million last year, 68 percent higher than the level approved by the Government. CFR Marfa’s last profitable year was 2007.

CFR Calatori, the passenger transport art of CFR SA, was to axe over a 1,000 jobs in March this year. The measure follows the agreement between the Romanian Government and the International Monetary Fund, the European Commission and the World Bank. Laid off employees will receive six months redundancy pay.

editor@romania-insider.com