The Czech railway infrastructure administrator, Správa železnic, has announced that it will implement a program of structural transformation of the organization in April by adjusting the company’s management and changing its tendering procedures.
This reform, which also involves the centralisation of some agencies and the reduction of expenses, will be carried out by the new CEO of Správa železnic, Tomáš Tóth, with the aim of opening up the railway market to a larger number of suppliers, increasing competition and achieving savings, while maintaining the quality of projects.
The changes will contribute to the more efficient operation of the railway infrastructure and the more responsible use of public funds. “Railways are the backbone of transport and have a significant impact on the economy and quality of life in the Czech Republic. State funds must be used as efficiently as possible,” said Transport Minister Ivan Bednárik. He also mentioned that the new director will reduce unnecessary bureaucracy and reorganize the company’s operations “so that the railway infrastructure is built better, faster, and cheaper.”
Thanks to these measures, Správa železnic will save CZK 335.6 million (EUR 14 million) annually, without the changes affecting operational employees. “The management structure has been very robust for a long time, so I expected to encounter much greater resistance to change. However, from the very first round, we managed to find consensus across the entire management team, which I consider a success, and I thank my colleagues for their approach,” said Tomáš Tóth.
More suppliers through changes in tender procedures
Changes in tender procedures will remove all barriers and open up opportunities for a wider group of suppliers. Správa železnic will adjust the qualification requirements, make more frequent use of preliminary market consultations, and reduce administrative barriers that may prevent small or foreign companies from participating. Access for these new participants to the railway market should also be facilitated by revising technical requirements and gradually recognizing certain foreign certifications.
For large investment projects in railway infrastructure, the company intends to divide the work into distinct components or specializations, separating, for example, construction work from technological equipment. This approach will allow for the involvement of a larger number of specialized companies, reduce dependence on a limited number of large suppliers, and, implicitly, lower the costs of tenders. At the same time, the principle of transparency is expected to be further developed, including through more detailed publication of prices and bid components, as well as the expanded use of the “Design & Build” principle where the nature of the project allows.
A new management style
The management structure will be simplified starting in April, which will generate significant operational savings. Správa železnic will also reduce marketing, IT, and legal expenses by approximately 20%. At the same time, 121 positions will be eliminated, but the layoffs will not affect employees directly involved in infrastructure operations. The money saved will be used primarily to prepare investment projects and ensure the long-term sustainable operation of the organization.
The changes also affect operational management. The 21 operational regions within the regional directorates will be integrated under the central dispatch centers in Prague and Přerov. In addition, the centralization of public procurement and commercial activities, which until now were carried out by several units, will increase organizational efficiency.
Share on:
