European funds warm up modernization works in Romania

After several years of numbness when no significant work has been launched on the Romanian railway infrastructure and even maintenance works have been neglected, a series of major rehabilitation projects was initiated in 2011 with non-reimbursable European funds. The tram lines in the Romanian cities have also benefited from the same funds. However, the process of absorbing funds is still slow, the approvals for project financing are late and the development of tenders faces many obstacles.

Like other countries in Central and Eastern Europe, Romania benefits from European structural funds for the development of the transport sector. As part of the Sectoral Operational Programme Transport 2007-2013, Romania disposed of over EUR 2 Billion of these non-reimbursable funds for railway investments.
The total budget of this programme amounts to around EUR 5.7 Billion of which: the Cohesion Fund and the European Fund for Regional Development: EUR 4.57 Billion, the State Budget: EUR 1.09 Billion. As mentioned since 2007, Romania’s railway infrastructure priorities have focused on the modernisation of the pan-European Corridor IV (which now corresponds to the priority axis TEN-T 22). This axis crosses Romania from west to east and has two branches: the northern branch crosses cities such as Arad, Alba Iulia, Sighişora, Braşov, and Bucharest and reaches Constanţa at the Black Sea while the southern branch crosses the cities of Timişoara and Craiova, providing connection to Bulgaria to be achieved through a new bridge across the Danube at Calafat.

Pan-European Corridor IV

Modernisations on the northern branch of Corridor IV have included Bucharest-Campina, Bucharest-Constanta and Campina-Predeal sections. Works were initiated in 2001 with Bucharest-Campina section financed with pre-accession funds.
The next sections to be rehabilitated are in Transylvania, between Braşov (in the middle of the country) and Curtici, at the Hungarian Border, next to the city of Arad. Three large sections are considered for the following period, almost all contracts for construction works being already assigned after the finalization of the tenders organised in 2011. With just one exception, these sections are under rehabilitation, the contracts being assigned to consortia including various specialized companies. The winners are FCC Construcciones and Alstom Transport (see table).
The southern branch of Corridor IV and the other sections on the northern branch are still in the project preparation phase and have been announced for financing through the future SOP-T, 2014-2020, with an estimated budget of EUR 7.2 Billion.
The implementation of the signalling system ERTMS Level 2 along the corridor is also financed from European funds. ETCS Level 1 equipments have already been installed on the already rehabilitated sections, but the system has not yet been implemented.
A pilot project has already been initiated at the beginning of 2012 on a section of 30 km between Bucharest and Campina being implemented by a consortium which includes Thales, Siemens and Nokia Siemens. On the Transylvanian sections underway, the implementation of the ERTMS has been attributed to Alstom Transport for the border section and it seems that the same company will implement the signalling on Simeria-Coşlariu and Coşlariu-Sighişoara sections as well, according to a recent announcement of the Romanian infrastructure manager, CFR SA.
Modernisation for works of art and rail stations

Because of insufficient budget funds, every year CFR SA gave up necessary maintenance and repair works which, at the end of 2011, resulted in 462 speed restrictions on current and direct lines thus gradually reducing the maximum speed and the length of the lines with maximum traffic speed.
The railway network has 17,945 bridges and culverts on the traffic lines, 23% of them having exceeded their life expectancy, while 63.55 are due for repairs, the figures being also reported at the end of 2011.
Eight projects on the rehabilitation of bridges, culverts and tunnels have already obtained or will obtain financing from European funds also through the SOP-T 2007-2013.
The rehabilitation of the complex of bridges crossing the Danube, at Feteşti and Cernavodă, has been thought separately from the rehabilitation of the Bucharest-Campina section it pertains to, this section being now close the finalisation. EUR 48.3 Million is the sum expected to be invested in this project which includes the rehabilitation of the two bridges across the two branches of the Danube, one of 1584 m (Cernavodă) and one of 970 m (Feteşti).
The modernisation of rail stations is one of the major projects. In several phases and benefiting from different financing, 20 stations have been modernised so far. The following project, financed through the same programme, amount to around EUR 176 Million and concern the rehabilitation of 16 rail stations.

Ports will be better connected to railways

Constanta Seaport lines have also benefited from a financing of around EUR 17 Million. The railway lines and railway installations in the area of Constanta Seaport measure around 300 km, 80 km of which are electrified. The project under development concerns the development of the railway capacity in the river-maritime area of Constanta Seaport.
The Danube ports will have their access facilities improved with help from a major programme developed by the National Company Administration of Danube River Ports Giurgiu, a company which manages the ports in the sector between Baziaş and Cernavodă. The programme is called “D.A.N.U.B.E. – Danube access network – Decongesting traffic in Europe by developing a TEN-T high-quality port infrastructure in Romania in optimal economic conditions” and the development of the feasibility study was 50% financed through the EU’s TEN-T programme (EUR 200,000 of 400,000).
The total cost of the project is estimated at EUR 175 Million to be distributed to seven Danube ports.

Pan-European Corridor IX

The pan-European Corridor IX which crosses Romania from east (border with the Republic of Moldova) to south (border with Bulgaria) is still one of the major modernisation objectives. However, in the recent papers of the Ministry it does not figure in the financial planning for the next ten years. The latest cost rumoured for complete rehabilitation of the 595 km representing the Romanian segment of Corridor IX was of EUR 3.5 Billion.
Better lines for urban transport as well

Until recently, 15 Romanian cities have benefited from tram lines. In 2005, Constanţa and Braşov made the decision to give up this transport mode and preferred to introduce more buses. In 2011, a smaller town, Reşiţa, also interrupted tram transport without dismantling the infrastructure and without reaching any conclusion with respect to the future of this transport mode. Also, in Sibiu the only still functional tram line, which connects the city to a suburban village, is used only for recreation and was given up by Sibiu Municipality.
However, the other 11 Romanian cities where trams are still running are determined to preserve and to upgrade this transport mode.
Thus, significant funds have been invested in the modernisation of tram lines in cities such as Arad, Oradea, Timişoara, Cluj, Craiova, Iaşi, Brăila and Galaţi. Most of these funds have come over the past two years from European structural funds, while cities such as Arad and Timişoara have used EBRD and EIB loans.
More than half of Bucharest’s tram network of 143 km has been upgraded starting with 2001, together with four depots, from own budget funds or using a EIB loan. After an active period from 2005 to 2009, works have come to a standstill over the past years, but the municipality has announced that modernisation works would continue in the future.
Instead, Bucharest currently develops a major project on the construction of a new underground line, Line 5, which will have 17 km and 27 stations. The two sections which compose this line are expected to be finalized in 2016 and 2018, works to the first section being initiated in 2011.
The total costs of this project amount to EUR 1.45 Billion. The project uses funds from the state budget and funds from a loan of EUR 370 Million from the European Investment Bank (EIB). Unlike the situation of other countries, such as Bulgaria, Bucharest Metro, managed by a company of the Ministry of Transport, cannot access structural funds. At the beginning of 2013, the new budget of the ministry came with a significant cut of the funds dedicated to the finalization of this project.

Suburban transport has priorities, but no actual projects

Suburban railway transport in Romania is still very poorly developed, despite the fact that there are railway lines in the majority of urban suburbs which could take over part of the traffic if properly managed and modernised. Yet many of these lines are closed and very damaged. Connections between the great metropolises and the small settlements around them are most of the time provided by road transport companies with minibuses that don’t manage to ensure the minimum comfort and safety conditions.
And yet, there are many projects which consider turning into account these lines, projects initiated either by non-governmental associations or by public authorities. For Bucharest, for example, the Ministry of Transport has announced a series of projects under which the capital should use its railway infrastructure network which includes former industrial lines and a railway ring for passenger transport.
Timişoara, Cluj and Sibiu are among the cities which announced projects for the launch of suburban rail transport.
This way, a significant part will be that played by metropolitan public transport authorities, currently under development.

Retreat of CFR S.A.

With all the good news about the financing of the Romanian railway infrastructure, the economic and financial situation of the infrastructure manager remains difficult. To implement the agreements between the Romanian Government and the IMF concerning the economic programme supported by international institutions in exchange of a loan agreement, CFR SA is forced to reduce the length of its lines from 20,120 km to 15,500 km.
This is achieved by closing down lines or giving them up to private managers.
Thus, under a Government Decision of 2011, 661 km of line will be shut down, mostly station lines, infrastructure elements being sold to scrap iron. Around 3,000 km of line have already been leased to private managers and are no operated by private companies, after the retreat of the national operator CFR Călători.

[ by Florentina Ghemuţ ]
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