Ailing Bulgarian Railways to Crack Down On Free Riders

Business | March 18, 2012, Sunday // 12:21
Bulgaria: Ailing Bulgarian Railways to Crack Down On Free Riders Photo by BGNES

The major reform set to fight severe debts at the Bulgarian State Railways (BDZ) company will be limiting the number of free riders, said BDZ Board of Directors chair Vladimir Vladimirov.

"We are planing a complex approach here. We'll be limiting the number of train stations at which tickets are not sold. We'll also be increasing the number of ticked sellers in trains," said the BDZ CEO in an interview for the Focus Information Agency.

He added that a system will be implemented for selling tickets online, as well as for selling tickets via text messages.

Bulgaria's State Railways company has been experiencing chronic financial problems, with debts as of October 2011 amounting to some BGN 771 M.

As part of plans to reduce losses, BDZ announced a cutting down of trains in operation by 138, as well as a scheduled shedding of personnel.

This provoked a massive strike by railways workers last November, which lasted 23 days and led to more losses by the company.

According to BDZ data, its Passenger Transport sub-company is the one registering massive losses, while its Freight Transport sub-company is actually making profits.

Nevertheless, the Bulgarian state has announced plans to privatize BDZ's Freight Transport.

Effective January 23, BDZ also implemented a 9% increase in the prices of passenger tickets, arguing it will thus gather more revenue, while still keeping train transportation cheaper than average bus fares.

According to Vladimirov, the new measures for cracking down on free riders are set to have an important and palpable effect on the BDZ's revenue for 2012.

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Tags: BDZ, railways, Vladimir Vladimirov, Strike, debts, Freight Transportat, Passenger Transport, bus, tickets

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