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Railway Stations • Telecommunications and IT • High-Speed Rail Link • New Railway Lines • Private Infrastructure Managers • Terminals and the Port of Constanţa

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Railway Stations • Telecommunications and IT • High-Speed Rail Link • New Railway Lines • Private Infrastructure Managers • Terminals and the Port of Constanţa Romania Railway business opportunities Infrastructure development A MARKET ANALYSIS BY: Content 1 02 OVERVIEW • Economy • Population structure • Administrative divisions • Infrastructure • The reform • Railway Surveillance Council • AFER • National Railway Infrastructure Manager - CFR SA • Private infrastructure managers • Industrial railways • Ports with railway terminals • Urban railways • Financings 11 HEAVY RAIL PROJECTS • Pan-European Corridor IV • Pan-European Corridor IX • New TEN-T proposals • Tunnels and bridges • Traffic safety • Electrification • Command-Control-Signalling • Railway stations • Telecommunications and IT • High-speed rail link • New railway lines • Private infrastructure managers • Terminals and the port of Constanţa 31 LIGHT RAIL AND UNDERGROUND PROJECTS • Urban projects • Underground projects • Metrorex priority objectives 40 FACTS AND FIGURES • Railway network managed by CFR • Traffic control and communication systems • Electrification systems • Main owners of industrial rail lines • Terminal and multimodal centres • Railway urban infrastructure Photo: © Club Feroviar Coordinators: Consultants: Layout & DTP: February 2013 Ştefan RoŞeanu octavian uDRiŞTe Petru MuReŞan a publication by Senior Partner Club Feroviar [email protected] [email protected] CLuB FeRoViaR [email protected] 30, Virgiliu Street sector 1 Florentina GheMuŢ Photo: 010884-Bucharest, Romania Cristina TRiFon [email protected] Radu DRĂGan Tel.: +4 021 224 43 85 Marketing Manager Fax: +4 021 224 43 86 [email protected] Vlad RoŞeanu Translation: [email protected] [email protected] alina VuŢuLiCu www.clubferoviar.ro February 2013 2 OVERVIEW OVER the past years, Romania’s the 90’s, with the help of investments, railway infrastructure has benefited export demand to the european union and from investments financed through domestic consumption, Romania registered non-reimbursable european funds or constant growths of the GDP, but it also through loans from international financing accentuated the current account deficit. The institutions. The process of absorption and economic downturn has seriously affected the use of these funds are, however, rather Romania, manifesting in significant losses difficult, as Romania lacks experience and in the heavy industry and freight transport specialized administrative and legal staff. sectors, railway cargo transport suffering in 2012, the authorities managed to initiate the most. works on several important programmes a stand-by agreement was signed with for the modernisation of over 200 km of the iMF in 2009 for a EUR 20 Billion loan, railways, but also repair of works of art and with participation from the european union, rehabilitation of railway stations. Romania thus hoping to revive declining nevertheless, state budget funds economic activities and to cover budget allocated to the network remain quite low, debts. but increasing every year. Population Economy structure Romania counts 21.4 million residents, The Romanian economy can rely on rich with 90.1 residents per square km, below natural resources, qualified work force the european union’s average of 116. and an important strategic position. The Therefore, the population density is 3 to 4 important natural reserves of petroleum, times lower than in Germany, Great Britain coal, iron and salt add on to a significant or the netherlands, 5 to 6 times higher agricultural potential. however, more than than in Finland and Sweden and similar to half of the GDP is ensured by the services Greece and Spain. sector. The capital and ilfov county have the highest The country’s most important trade population density in Romania. however partners are italy, Germany, France and there are other counties, especially those Turkey, but imports partners include Russia, highly industrialized before 1990, such as China and Kazakhstan. Prahova, Dâmboviţa, iaşi, Galaţi, where after a strong recession at the end of the density is above the country’s average 3 density (130-180 inhabitants per square km). (68%) count less than 20,000 inhabitants Regionally speaking, the highest density is and usually depend on one single economy in the country’s north-eastern region (101.4 activity, mostly industrial. only 23 cities inhabitants per square km), the country’s count more than 100,000 inhabitants. most demographically dynamic region, while Bucharest is the largest city with 1.94 million the country’s the lowest density region is in people leaving here. the west (60.4 inhabitants per square km). under law 151/1998, eight Development Regions have been established through the voluntary association of corresponding counties. unlike villages, towns, cities and counties, these development regions are not administrative divisions and don’t have legal personality. Administrative The institutional framework, objectives, competencies and instruments specific divisions to the regional development policy in Romania were revised in 2004, under the negotiations of Law no. 315/2004 on The administrative divisions of Romania regional development in Romania. include 320 towns and cities and 2,860 each region has a Regional Development villages. The cities, towns and villages are agency, coordinated by the Regional grouped into 41 counties, the capital of the Development Council as deliberating country, the city of Bucharest, representing body. Regional development agencies are an individual administrative division. non-governmental, non-profit and public Romania’s largest cities are: Bucharest, utility bodies with legal personality with iaşi, Constanţa, Timişoara, Cluj-napoca, main attributions consisting in elaborating Braşov, Craiova, Galaţi, Ploieşti and Brăila. strategies, programs and fund management More than half the 320 cities in Romania plans. February 2013 4 The attraction of investments and personality. For the moment, the project is economic growth are favourably influenced under elaboration at the Romanian Ministry by the existence of international ports of Regional Development and Public (Constanţa) and the easy access to administration. western markets. in turn, the proximity of natural barriers for trade (the Danube) or of the underdeveloped countries in the east (ukraine and the Republic of Moldova) Infrastructure have, usually hindered development. according to information analysed in 2007, the regions in the country with the Romania has a dense transport network, highest level of revenues per capita are the well distributed all across the country’s counties that have big cities, international territory, accessible to most inhabitants, airports or those close to or located on with access to the Danube on the longest the transport axis to the western border. segment of its inferior stream (1,075 km) Conversely, some of the counties with the and an important seaside segment to the most severe underdevelopment problems Black Sea. Danube-Black Sea Channel are either tangent to the Danube or located enhances all these natural advantages. in the neighbourhood of the border with Transport difficulties are related to the very ukraine and the Republic of Moldova. poor condition of the infrastructure that has Romania will be subject to an administrative been constantly degrading over the past reorganisation in 2013, as announced by 20 years or has become more and more the new Government elected in December obsolete compared to new standards. 2012, by adding an additional level of Romania is crossed by pan-european administrative units – regions with legal corridors 9, 4 (corresponding to the 5 TEN-T Priority axis 22) and 7. also, under are Telecomunicaţii CFR, electrificare CFR Regulation (EU) no 913/2010 of the and informatică CFR. european Parliament and of the Council of 22 September 2010 concerning a european rail network for competitive freight, Romania Railway will participate in creating a freight corridor with the Czech Republic, austria, Slovakia, Surveillance hungary, Bulgaria and Greece by november 10, 2013. Council in 2005, the Railway Surveillance The Reform Council was established within the Ministry of Transport and infrastructure. Romanian Railways, represented by The Council is in charge of evaluating the former SnCFR company, has been and solving the legal contests submitted restructured in 1998 in order to meet the against the decisions made by the railway obligations stipulated in the First Railway infrastructure manager and generally, with Package, Romania being the first country monitoring the free access to the Romanian in eastern europe to implement this reform. infrastructure. The Council was transfered as a result, through the Government’s from the ministry’s administration to that emergency ordinance no. 12/1998, railway of the Competition Council, following the operation was taken over by national european Commission’s warning about companies CFR Marfă and CFR Călători, potential conflicts that might arise from the while CFR Sa became the infrastructure subordination of this Council to a ministry manager. other companies resulted from which also controls the infrastructure the externalisation of infrastructure activities manager, CFR Sa. 6 AFER National The Romanian Railway authority – aFeR – Infrastructure was established in 1998 and reorganised in 2008. Today, the authority has four separate Manager, CFR S.A. bodies, in charge of investigation, licensing or certification. These bodies are: aSFR – Romania’s public railway infrastructure is Romanian Railway Safety authority,
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