Troubled Bulgarian Railways Boast Decreased Losses

Business | August 31, 2012, Friday // 14:25
Troubled Bulgarian Railways Boast Decreased Losses: Troubled Bulgarian Railways Boast Decreased Losses Vladimir Vladimirov, Chair of the BDZ Managing Board, is optimistic about the future of the Bulgarian Railways. Photo by BGNES

The huge losses of the Bulgarian State Railways (BDZ) Holding have decreased significantly and the company could not only be salvaged, but even make some profits.

The optimism was voiced Friday by Vladimir Vladimirov, Chair of the BDZ Managing Board, who spoke for the Bulgarian National Television, BNT.

Vladimirov reported that the losses of the heavily-indebted Railways for the first seven months of 2012 were BGN 10 M, compared to BGN 23 M for the same period last year. He attributed the decrease to the 116 implemented measures, adding if all measures that are planned are to be executed BDZ can become profitable.

According to him, some of the said measures will have an effect lasting until 2016. He explained the reform and the restructuring plan already encompass all the internal resource that can be used for optimizing activities, decreasing cost and expenses, and paying off the debt.

Vladimirov further voiced certain hope that the mounting of security cameras will put a halt on fuel theft, which is a serious problem for BDZ, and will lead to fewer expenses. Other measures include the installation of electric meters to monitor electricity consumption and the sale of non-operating assets, which now require cost management.

Regarding the resignation of the BDZ CEO, Yordan Nedev, the Board Chair stated he worked very well with him and voiced regret about his decision.

"It is never good for the team when a key figure leaves, but people are untied and continue to follow the plan for reforms and work on the reestablishment of the dialogue with the Finance Ministry," said he.

Nedev called it quits after the Ministry stopped paying the State subsidy to BDZ over the staggering losses and debt. It later paid the one for August, but it remains unclear when the July amount is going to be received.

The Bulgarian government has voiced serious intentions to sell the troubled company, particularly the freight services.

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Tags: resignation, Yordan Nedev, CEO, subsidy, Bulgarian State Railways, state subsidy, BDZ, state railways, Finance Ministry, Vladimir Vladimirov, debt, cost
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