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Home , Serbian Railways

Speaker: Lazar Radaković, assistant minister TOPIC: Current status of railway system in Republic of and policies for better transport connectivity OUTLINE

• Serbian railway system – characteristics • Serbian railway system – current investment cycle • Serbian railway system – new investment cycle • The development of intermodal terminals • Reform of the railway sector • Soft measures towards connectivity SERBIAN RAILWAY SYSTEM - CHARACTERISTICS

Total length of railway lines on the territory Republic of Serbia is 3724,5 km. Of these, 3435,8 km of single-track and 288,7 km of double-track railway lines. The total length of the electrified railway lines is 1272,7 km. Of these, 984 km are single- track and 288,6km are double-track railway lines. The railway line with strategic importance for Serbia is part of the Pan-European rail Corridor X which go through Austria, , , Serbia, , and Greece. This very important corridor through Serbia has a total length of 872 km, which makes up 23% of the Serbian network. The Republic of Serbia has set the reconstruction of Corridor X as one of its main priority. The aim is to raise competitiveness, bearing in mind the importance of rail transit through Serbia. In order to increase the efficiency of the railway transport system, its positive economic impact on the economy and to establish the compatibility of the Serbia system with the European Union system, in the previous period Government of Republic of Serbia (hereinafter: GoS) started a large number of RAILWAY INFRASTRUCTURE PROJECTS and implementation of POLICIES FOR BETTER TRANSPORT CONNECTITIVITY. SERBIAN RAILWAY SYSTEM – CURRENT INVESTMENT CYCLE

Funds were provided through three sources of funding. 1. Through international financial institutions, most often through the European Bank for Reconstruction and Development (EBRD) and the European Investment Bank (EIB). Also, for some projects, funds for the reconstruction and modernization of the railway infrastructure are provided through grants from EU fund established for Balkan countries (up to 50%) with combination of loans from aforementioned banks. 2. Bearing in mind that the Republic of Serbia has a statute candidate for membership in the European Union, it has possibility to use grants for railway projects from Instrument for Pre- Accession Assistance (IPA) Fund which provides 85% of grants with the participation of the Republic of Serbia of 15%. 3. In addition, the funds were provided through bilateral cooperation with other countries, with the Russian Federation, People's Republic of China and Kuwait Fund for Arab Economic Development. SERBIAN RAILWAY SYSTEM – CURRENT INVESTMENT CYCLE

After decades of underinvestment where infrastructure was not maintained properly for two life cycles, the GoS embraced ambitious investment program, aimed in significantly improving railway infrastructure quality in next 10 years. In the past 3 decades, the investments in the railway sector were mainly amounted for covering salaries and urgent works. There were insufficient funds for maintenance and for capital investments. Then the railway sector was simply not in focus. Since 2014, the GoS has been carrying out intensive activities on the realization of capital investments in railway infrastructure. Since then, half a billion euros have been invested in reconstruction of 227 km of main railway lines and 281 km of regional railway lines. On figure marked with blue color. Currently, works on reconstruction and modernization of two double-track sections of the - railway project are underway for speed of up to 200 km/h with a total length of 74.9 km and the value of 821.5 million euros. Also, there is a reconstruction of the one section for speed up to 120 km/h in the length of 60 km worth of 39.3 million euros. In addition to works on the main railway lines, the renewal of regional railway lines are currently undergoing in length of 259 km, with a total value of 97.72 million euros. Marked with red. Also, in the next year will start works in value of EUR 1.44 billion on important railway lines with lengh of 280 km on Corridor X and also rehabilitation of regional lines with a total length of 229 km worth EUR 105,76 million. SERBIAN RAILWAY SYSTEM – CURRENT INVESTMENT CYCLE

Beside investment in projects related to railway infrastructure, GoS simultaneously invests in modernization of railway vechile fleet. So, from 2013 in Republic of Serbia operates: • 21 Stadler FLIRT EMUs • 27 Metrovagonmaš DMUs • 8 Siemens multi-system locomotive for freight transport (contracted 16) • about 18 EMUs (loan under the negotioan with EBRD) SERBIAN RAILWAY SYSTEM – NEW INVESTMENT CYCLE

Currently, intensive activities are underway related to preparing the technical documentation for planned projects, with a total investment value of approximately € 2.5 billion for 835 km of railway lines. Technical documentation is prepared through funds obtained from: • bilateral cooperation with the Russian Federation • bilateral cooperation People's Republic of China • grants provided through the Western Balkans Investment Framework - WBIF. THE DEVELOPMENT OF INTERMODAL TERMINALS

• New intermodal terminal in Batajnica • Reconstruction of the Belgrade Marshaling Yard and construction of objects for the needs of the company "Železnički integralni transport Beograd" LTD REFORM OF THE RAILWAY SECTOR

1. Restructuring of railway incumbent and establishing the rail market Since August 2015, three state companies have been operating on the railway market: • Infrastructure JSC - public railway infrastructure asset management company; • Serbia Train JSC – the passenger transport company; • Serbia Cargo JSC - the national rail freight transport company. Beside this companies on Serbian railway market also operates five private operators for freight transport and three private operators which carrying out maintenance activities. REFORM OF THE RAILWAY SECTOR

2. Harmonization with EU acquis From may 2018 three new laws in accordance with are in use in railway sector: Law on Railways Law on Interoperability of Railway System Law on Safety in Railway Traffic SOFT MEASURES TOWARDS CONNECTIVITY

1. Integrated border crossings Lack of interoperability, immigration policy and customs procedures are some of the main reasons that impede the efficient transport of people and goods between countries. This problem can be overcame by BILATERAL AGREEMENTS between states, which would enable reduction of dwell time at the border crossings by using the integrated (joint) border procedures. Bilateral agreements have been signed with and Republic of North Macedonia, but they are still not being used in practice because the station buildings are not adapted for such purposes. There is also bilateral agreement with Republic of Bulgaria which does not functioning because of bulgarian side. Serbia have an intention of establishing a common border station with integrated procedures with all neighboring countries. SOFT MEASURES TOWARDS CONNECTIVITY

2. Transport Community - Strategy Rail transport in the Western Balkans has been recognized as one of the priorities in the EU Connectivity Agenda. In December 2018, the Ministers of Transport of the Western Balkans endorsed a declaration on Regional Rail Strategy. The objective is to develop a comprehensive action plan to revitalize the rail system in the region and bring it closer to EU standards, in line with the Transport Community's objectives. The Permanent Secretariat of the Transport Community, based in Belgrade, developed a first set of actions for developing a Regional Rail Strategy in the Western Balkans. The set of actions covers three areas: Rail market opening, Governance of the rail system and Interoperability. SOFT MEASURES TOWARDS CONNECTIVITY

2. Alpine-Western Balkan Rail Freight Corridor Serbia is one of states within Alpine-Western Balkan Rail Freight Corridor (AWB RFC 10). This corridor connects four EU member states - Austria, Slovenia, Croatia, Bulgaria and Serbia as EU candidate state. This railway link represent „revival“ of the shortes route between South-East Europe and Central Europe which will contribute to competitivnes of the railway transport regarding to other transport mode and also to other railway routes. This corridor is expected to become operational in March 2020. Thank you for your attention!

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