Moldova launches major railway reform to save CFM
The Public Property Agency (PPA) has launched the restructuring of Moldova Railways (CFM).
PPA Director General Roman Cojuhari announced that a draft government decision is being prepared to guide this initiative.
“Moldova’s railway reform is guided by the new Railway Code, adopted in February 2022. It aims to overhaul the sector by separating infrastructure management from passenger and freight services,” Cojuhari said, according to a PPA statement.
Under the proposal, CFM will oversee railway infrastructure, while a wholly state-owned company will manage passenger and freight services, including maintaining its own fleet of locomotives and wagons.
Feedback on CFM’s restructuring can be submitted by April 25, the PPA noted.
Previously, Infrastructure and Regional Development Minister Vladimir Bolea, speaking on Moldova 1, described the restructuring as timely given CFM’s severe financial difficulties. “Infrastructure is a strategic priority that the state funds, but rail freight services need to be competitive, more digitized, and less bureaucratic,” Bolea emphasized.
Moldova Railways faces challenges that threaten its operations. To address these, the government plans to revitalize CFM through infrastructure investments. Over the next five years, the state intends to allocate 400 million lei annually for railway network maintenance and modernization, based on a multi-year contract to be signed between the Infrastructure Ministry and CFM following public consultations.
CFM’s challenges intensified after August 2022, when rail transit from Ukraine dropped sharply due to the reopening of Odesa’s port. This caused a steep revenue decline, leading to months of unpaid salaries for workers. Amid financial strain and millions of lei in salary debts, CFM introduced a four-day workweek starting in September 2024.
Railway workers have protested multiple times over unpaid salaries, totaling millions of lei. Additionally, approximately 1,000 retirees working at CFM may face job losses due to recent staff cuts announced as part of a broader cost-optimization effort.
Translation by Iurie Tataru
