Romanian Private Rail Operators Challenge Government’s "Illegal" State Aid Maneuver

The battle over Romania’s rail freight sector has escalated, with the Association of Romanian Private Rail Freight Operators (OPSFPR) filing a formal complaint with the European Commission (EC) against the government’s alleged attempts to bypass competition rules.

The complaint centers on the state’s handling of EUR 570 million in illegal state aid previously granted to the now-bankrupt CFR Marfă—and the controversial plans to create a new state-owned freight operator, Carpatica Feroviar România (CFR).

The Association of Romanian Private Rail Freight Operators (OPSFPR) has lodged a formal complaint with the European Commission (EC) over the government’s “illegal” handling of the country’s state-owned rail freight operations.//t.co/tvVwgJIHje

— IRJ (@railjournal) February 25, 2025

A New State-Owned Operator in the Making?

The dispute traces back to a 2020 EC ruling, which found that CFR Marfă had benefited from illegal state aid and ordered the company to return the funds within six months, according to ec.europe.eu. Unable to comply, the loss-making freight operator was forced into bankruptcy, triggering a chain reaction that has now led to the Romanian government’s decision to establish a new state-owned rail freight operator.

However, RailFreight reports that OPSFPR argues that the government’s approach violates EU competition laws, as it allegedly seeks to reallocate public funds intended for railway investments into CFR Marfă’s debt clearance.

"This is essentially illegal aid being repaid with public money rather than through a transparent capitalization of CFR Marfă’s assets," OPSFPR said in a statement, as reported by IRJ.

State Aid or Market Distortion?

According to OPSFPR, the Romanian government’s plan involves transferring assets from CFR Marfă to the newly formed CFR, with public-sector capital used to finance the deal. This, the association claims, would exclude private operators from accessing key resources, effectively giving CFR an unfair advantage.

"This measure distorts competition, consolidates CFR’s dominant position, and continues the anti-competitive practices already sanctioned by the EC," the association warns.

The association has called on the European Commission to intervene, citing concerns over potential violations of EU law.

Three Key Demands to the European Commission

In its complaint, OPSFPR has outlined three urgent requests for the EC:

• Block the transfer of assets from CFR Marfă to CFR to prevent unfair market manipulation.
• Investigate the impact of the EUR 300 million public funding allocation on Romania’s rail freight market.
• Implement measures to restore fair competition in the Romanian rail sector.

According to Romania Insider, the private operators insist that any state funding for rail freight development must be distributed transparently and not favor a single market player.

Romanian Authorities Under Fire

Despite repeated warnings, OPSFPR claims that the Romanian Ministry of Transport and Infrastructure has ignored its concerns, forcing the association to escalate the matter at the EU level.

"We have reported these issues multiple times, yet the lack of action from Romanian authorities leaves us no choice but to appeal again to the European Commission," OPSFPR stated.

The association is urging the Commission to act swiftly to halt the government’s alleged circumvention of EU regulations and to prevent further distortion of Romania’s rail freight sector.

What’s Next?

The European Commission is now expected to review OPSFPR’s complaint and assess whether Romania’s plans violate EU competition laws. If found in breach, the Romanian government could face sanctions or be forced to reverse its decision on CFR’s establishment. As Romania navigates its rail freight crisis, the battle between state-owned and private operators intensifies—raising serious questions about the future of fair competition in the sector.

Source: IRJ; RailFreight; Romania Insider