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Critics Question Accountability as CFR Marfă's Successor, Carpatica Feroviar, Takes Over

Critics Question Accountability as CFR Marfă's Successor, Carpatica Feroviar, Takes Over
photo: CFR Marfă / Public domain/CFR Marfă
23 / 10 / 2024

The Romanian state-owned rail freight operator CFR Marfă is set to be liquidated in March 2025, as a new company, Carpatica Feroviar, will take over its assets and operations.

The transition comes after CFR Marfă’s preventive agreement, initiated in 2020 following a ruling by the European Commission that declared the state aid received by the company as illegal. Ionuț Cristian Săvoiu, Secretary of State in the Ministry of Transport, confirmed that Carpatica Feroviar would replace CFR Marfă without the two companies operating in parallel. The newly formed company will inherit some of CFR Marfă’s assets, including wagons, locomotives, and employees.

The decision to create Carpatica Feroviar stems from CFR Marfă's dire financial situation, including debts of EUR 904.7 million. According to critics like Nucu Morar, the establishment of a new state-owned company with the same activities raises questions about accountability. "CFR Marfă is, in fact, bankrupt," Morar commented on Republica.ro, saying that the company has failed to repay EUR 522.7 million in state aid, while private operators in the same market receive no such support. He further criticized the decision, asking whether taxpayers will ultimately bear the cost of CFR Marfă's debts.

Proponents of the new company argue that a state-owned rail operator is necessary for strategic and security-related transport. However, some question the efficiency of maintaining such a large operation, suggesting that if the state’s concern is military logistics, a smaller, specialized company could be created. As the transition proceeds, public attention remains focused on whether Carpatica Feroviar can succeed where CFR Marfă failed and whether the state's intervention in the market will truly benefit Romania’s rail transport sector.

Source: Ziarul Financiar; Republica.ro

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