Bulgaria's Ailing Railways Get Tough, Raise Revenues

Business | August 19, 2011, Friday // 18:26
Bulgaria: Bulgaria's Ailing Railways Get Tough, Raise Revenues Bulgaria's railways have seen a growth in ticket revenues thanks to vigorous on board inspections targetting free-riders. Photo by BGNES

Bulgaria's troubled state railway company BDZ has managed to increase its revenues from ticket sales by boosting its travel inspections and policing.

In January-July 2011, BDZ's revenues from the sale of tickets on board of trains grew by almost 11% compared with the same period of 2010, while in July alone, the respective revenues rose by 14%, the company announced Friday.

"As a result of the constant measures that the BDZ EAD Holding is implementing in order to reduce to the minimum the free-riding, we have registered a decline in the number of free-riders," BDZ said.

The measures in question feature primarily surprise inspections and policing campaigns on board of trains. In the first 7 months of 2011, a total of 8 873 trains were inspected all over the country, while in July alone the inspections were 1 178. The company has punished 117 of its conductors and other staff for failing to exert control on free-riding passengers.

"BDZ Holding will continue its uncompromising actions to restrict free-riding as much as possible. Free-riding passengers who subsequently refuse to pay their fines will not be allowed to board trains any more," the state company has vowed.

Bulgaria's state-owned passenger railway operator BDZ has been traditionally in a horrendous financial condition in the past 20 years. At present, it hopes to get a loan of BGN 460 M, together with a loan of BGN 160 M for the National Company "Railway Infrastructure", from the World Bank for badly needed reforms.

However, the reform attempts have been countered by the trade unions as they threatened to lead to massive layoffs of the state-employed railway workers. Thus, in March 2011, the government was forced by an imminent railway strike to back out of some of its reform plans.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Business » Be a reporter: Write and send your article
Tags: BDZ, Bulgarian State Railways, state railways, railways, inspection, conductor, gratis, free-riding

Advertisement
Advertisement
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria