Romanian Railway Passenger Carrier CFR Calatori To Lay Off 2,200 People In 2011

Romanian railway passenger carrier CFR Calatori plans to lay off around 2,200 employees next year, 15% of its staff of 15,000, and invest EUR957 million by 2019 into engines, ticket dispensers and a train access gate control system.

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Imaginea articolului Romanian Railway Passenger Carrier CFR Calatori To Lay Off 2,200 People In 2011

Romanian Railway Passenger Carrier CFR Calatori To Lay Off 2,200 People In 2011

These measures are included in a program for CFR Calatori's restructuring and economic-financial recovery, obtained by MEDIAFAX. The company prepared the program taking into account the World Bank's recommendations regarding a balanced, loss-free budget for next year.

People close to the matter told MEDIAFAX that the program has been authorized by Transport Minister Anca Boagiu and will be sent to the International Monetary Fund for approval.

The company plans to introduce cadenced traffic, thus saving a projected EUR100 million, increasing the number of passengers by 15% and revenue from the relevant segments by as much as 20%. The document points out that the implementation of cadenced traffic might be hampered by the continued worsening of railway infrastructure.

CFR Calatori wants to buy 120 diesel engines and 120 electrical engines for EUR927 million, an access gate control system for EUR20 million and automated ticket dispensers for EUR10 million. To properly maintain the new vehicles, the company will build new sheds on its property in the cities of Bucharest, Brasov, Timisoara, Arad, Constanta and Satu Mare.

The plan also provides exemptions from diesel fuel excises, saving up 90 million lei (EUR1=RON4.2771) per year, assistance for the absorption of EU funds and lower expenses for the use of CFR infrastructure.

CFR Calatori will close its operations in areas with high passenger/km costs and low revenue and transfer its staff to other depots.

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