The department for railway companies at the Croatian Employers Association (HUP) said in a statement on Friday that the government and its transport ministry have been continually neglecting private railway companies.

Their dissatisfaction has culminated after the government’s decision of 22 December to accept a deal with the state-owned company HZ Cargo at the proposal of the Ministry of the Sea, Transport and Infrastructure.

The government said that the deal will serve as a basis for important agreements between HZ’s successor companies HZ Cargo and HZ Infrastruktura on debt and on property-related issues between HZ Cargo, HZ Infrastruktura and HZ Putnički Prijevoz (Passenger Transport). These agreements are key to the successful restructuring of the entire rail sector.

“This leads to the conclusion that the government is again buying its own property from itself, justifying its action with claims on the property that was taken away or an inadequate distribution during previous restructuring attempts.  A billion kuna of public money will again go towards bailing out a system that is not functioning or operating on a sustainable model,” HUP said.

It warned that private railway companies operate 60 per cent of rail freight transport in Croatia and that their potential is neither used nor encouraged.

“The ministry is completely neglecting private operators, which have proved that they can find solutions and operate rail transport on a market model and which see HZ Cargo as an important partner in that regard,” HUP said.

HUP noted its proposal that railway companies should be subsidised according to a Slovenian model, namely that they should be equally subsidised in the form of favourable fees for routes regardless of their ownership or market share. It said that this would benefit both HZ Cargo and other railway companies, depending on their market participation.

HUP said that their key goals are sustainability of the railway system in Croatia, equal participation in rail freight transport, non-discriminatory and equal access, investment in infrastructure and safety, and the green development of rail freight transport.

It noted that the liberalisation of railway services has considerably increased the volume of rail freight transport and the demand for rail services, and that rail transport has a great potential, together with Croatian seaports, in the new geopolitical context as an alternative to Black Sea ports.