Moldova plans major railway reform: CFM restructuring ahead
Moldova’s state-owned railway company, Calea Ferată din Moldova (CFM), will not be privatized but may undergo restructuring by splitting into two joint-stock companies—one responsible for railway infrastructure and the other for freight and passenger transport.
Infrastructure Minister Vladimir Bolea announced the plan during the television program Pe Față on Moldova 1, emphasizing that the current organizational structure is financially unsustainable and needs reform to improve efficiency.
"CFM currently operates as a single entity that provides both freight and passenger transport services, but it receives no direct financial support for infrastructure maintenance, which is costly yet has high profit potential," Bolea stated.
To enhance financial transparency, CFM will present separate financial reports for infrastructure, freight transport, and passenger transport by June 1. This move aligns with models used in countries where railway infrastructure is considered a strategic sector, receiving state investments and subsidies.
Moldova and Romania to boost freight rail efficiency
Bolea also highlighted the need to modernize freight rail transport to make it more competitive compared to road transport. Proposed solutions include reducing bureaucracy, digitalizing processes, and simplifying procedures for economic operators.
In this context, Moldova and Romania will strengthen bilateral cooperation to improve cross-border freight transport. One key initiative is the potential resumption of iron shipments from Romania’s Cristești Jijia station to Moldova, which were suspended in 2022.
"I believe we will finalize discussions by April, or May at the latest. We are identifying all existing challenges to develop a clear resolution plan and shift as much freight transport as possible—if not entirely—from road to rail where feasible," Bolea said.
CFM’s financial crisis and government intervention
CFM’s financial situation has worsened since August 2022, when transit traffic from Ukraine dropped significantly following the reopening of Odessa Port. This decline in freight volume led to revenue losses, resulting in delayed salary payments for employees, many of whom faced months of wage arrears.
Amid severe financial distress and millions of lei in unpaid salaries, CFM decided to introduce a four-day workweek starting in September 2024. The company justified this decision by citing a sharp decline in freight transport volume. To alleviate financial pressure, CFM also auctioned old railcars and spare parts throughout the past year, but these measures proved insufficient to stabilize the company’s finances.
Despite multiple worker protests, no immediate solutions were found. In response, the Moldovan government is planning to revitalize CFM through infrastructure investments. Over the next five years, the state may allocate 400 million lei annually for railway maintenance and modernization. This funding will be based on a multi-year contract between the Ministry of Infrastructure and CFM, which will be finalized following public consultations.
This railway reform aims to restore CFM’s financial stability, enhance cross-border freight transport efficiency, and position Moldova’s railway network as a key component of regional trade and logistics.
Translation by Iurie Tataru
