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Czech Infrastructure in Crisis: Jan Skalický Reveals the Hidden Issues Behind Delays and Overpriced Projects

Czech Infrastructure in Crisis: Jan Skalický Reveals the Hidden Issues Behind Delays and Overpriced Projects
photo: RAILTARGET/Jan Skalický
31 / 01 / 2025

Czech transport expert Jan Skalický speaks with RAILTARGET about the state of the country's infrastructure, high-speed rail ambitions, and the role of water transport. He openly discusses inefficiency, overpriced contracts, and a lack of transparency that are holding back key projects.

Mr. Skalický, you are primarily known for your expertise in water transport, having served as the director of the Czech Waterways Directorate (ŘVC ČR). What is your view on railway transport? Do you consider it a key part of modern transport infrastructure, and why?

Rail and water transport are deeply interconnected. When properly coordinated in a multimodal transport network, they can significantly boost freight and passenger capacity while reducing road congestion. The key to efficient logistics lies in their integration—combining different modes of transport results in lower costs and more environmentally friendly solutions.

Both rail and water transport are essential to modern infrastructure, particularly when it comes to sustainability. They are the most efficient means of moving large volumes of goods and passengers over medium to long distances. One of their biggest advantages is their lower energy consumption per kilometer compared to road transport, making them more environmentally friendly. This aligns with the EU’s climate goals, including initiatives like Fit for 55.

It’s crucial to point out their role in reducing road congestion. Everyone sees how often major highways are clogged, which increases transport costs, lowers quality of life, and contributes to high emissions. Supporting rail and water transport isn’t just about ecology—it’s also about efficiency and economic benefits. We must invest in railway modernization, electrification, and digital traffic control systems.

How would you assess the current state of Czech transport infrastructure, including roads, highways, railways, and waterways?

Unfortunately, the current state of transport infrastructure in the Czech Republic is unsatisfactory. While highways, waterways, and railways are developing, they do so at a pace that does not meet our needs or European standards. For instance, highway construction is far behind schedule—progress is slow, expensive, and bogged down by bureaucratic obstacles. The same applies to railways, where modernization and new rail segments are progressing at a frustratingly slow pace—or not at all. Simply put, we are failing to implement long-term strategic plans. Right now, we build around 10-20 km of highways per year, but to catch up, we should be building 90-110 km annually. That is the minimum required for the Czech Republic to function as a modern country.

The main obstacles include insufficient funding, inefficient public tenders, long approval processes, and excessive concessions to opposition groups. Poor planning is another major issue. Our long-term strategies look great on paper, but there’s no concrete execution or accountability. If this doesn’t change, we risk becoming an isolated country—both economically and in terms of connectivity within Europe. Meanwhile, our national highway bypass has already been completed—a rare success story.

How do you view the progress of high-speed rail construction in the Czech Republic? Are our projects realistic and efficient?

High-speed rail is a massive challenge for the Czech Republic, but at the same time, our plans far exceed our actual capabilities. The original budget for high-speed rail was set at approximately EUR 17.9 billion, but over time, this figure has ballooned to EUR 31.8 billion, and some estimates now project final costs reaching EUR 49.7 billion. This is an amount the state simply does not have. To finance it, the government will need to resort to public-private partnerships (PPP) or bonds—but these methods only mean long-term debt for future generations.

Although the EU will contribute tens of billions, the majority of funding will have to come from the Czech budget. And that raises a crucial question—can we even build this massive infrastructure efficiently? Our projects are consistently overpriced, take decades to prepare, and often fail to deliver quality that matches the cost. We should be looking to Spain, where high-speed rail is built faster and more cost-effectively, or even Poland, which has managed to construct thousands of kilometers of highways and railway lines in record time.

What does the Czech Republic need to do to remain competitive? Czech public contracts are increasingly attracting foreign bidders—is this the right direction?

The Czech railway market must be opened to greater foreign competition. For too long, domestic monopolies and cartels have been protected from new players. This situation prevents improvements in service quality and keeps costs high. Take, for example, the recent tender for the Prague–Plzeň express line, where four operators competed: České dráhy, RegioJet, Arriva, and Leo Express. The offers varied dramatically, and Arriva’s lowest bid will save the government billions in subsidies. Transparency in the selection process is critical to prevent political interference or cartel-driven decisions.

One of the biggest systemic problems in the Czech Republic is the lack of transparency in public procurement. Many contracts are influenced by political and business interests, leading to overpriced, inefficient projects. If tenders were more transparent, we would see better quality, lower costs, and faster project completion.

If we truly want high-speed rail to be beneficial, then the projects must be more transparent and financially sustainable. However, Czech monopolies continue to block foreign firms and private operators from entering the market, making it extremely difficult for international companies to compete fairly.

One of the new developments in the Czech transport sector is the PPP method (public-private partnership), which you already mentioned in your previous answer. What do you see as its advantages and risks in financing large transport projects?

The PPP method may seem attractive at first glance because it allows projects to start quickly without immediately burdening the state budget. However, in reality, it represents hidden debt that will have to be repaid over many years. Additionally, there is a risk that the private sector will not be interested in investing in projects that do not generate sufficient profit without subsidies—which is precisely the case with high-speed rail.

Another major issue is transparency. For PPP projects to be successful, clear conditions and guarantees must be set to ensure the state maintains control over quality and efficiency. Unfortunately, our experience shows that transparency is often a weak point in the Czech environment.

Every mode of transport has its specifics and challenges. How do you see the current situation of other types of transport, such as waterways and bus transport?

Bus transport has made significant progress thanks to agreements between operators and transport authorities. However, water transport urgently needs major changes to catch up with neighboring countries. The Czech Republic has huge potential in this area, but several key conditions must be met to utilize it. First and foremost, the navigability of our rivers must be improved, especially the Elbe, which is crucial for connection to the European waterway network. This requires not only investments but also political will and strategic planning. We should take inspiration from countries like Poland and Slovakia, which effectively use EU funds to modernize ports and waterways. Our closest neighbors are currently preparing the modernization of the Bratislava port, which will provide a direct waterway connection to the global transport network via the Danube. This new port is funded by the European Union, which is a path we should follow as well. It is important to remember that up to 85% of the costs for water infrastructure projects can be covered by EU funding. Additionally, waterways are often the only viable option for transporting oversized cargo. Waterways can be modernized or even newly constructed—for example, Germany opened the new Niederfinow boat lift in 2022, which replaces a historic lift from 1934.

A key priority should also be the integration of waterways with rail and road transport. Only by achieving this multimodal connectivity can water transport become a truly attractive alternative for freight transport.

What do you see as the biggest challenge facing Czech transport in the coming years?

Transparency and efficiency are, in my opinion, the biggest challenges. The Czech transport sector suffers from poor coordination, bureaucratic obstacles, and a lack of transparency in public procurement. Another issue is funding—we must find ways to effectively use EU funds while avoiding excessive debt. In rail transport, the main challenge is modernizing existing infrastructure, which is still unable to meet the current capacity and speed demands of European standards. For water transport, it is essential to create the necessary conditions for its full utilization. Overall, we need to increase cooperation with the private sector, but under clear conditions that benefit both the state and the public.

  • Ing. Jan Skalický (born March 23, 1965) is a Czech transport expert, water management specialist, and infrastructure manager. He studied electrical engineering at the Czech Technical University in Prague and, since 1990, has worked as an electrical engineer, software designer, and manager. From 2011 to 2013, he was director of the Czech Waterways Directorate (ŘVC ČR), where he was responsible for the development of waterway infrastructure projects. Later, he became chairman of the DOL Association, which supports the construction of the Danube–Oder–Elbe water corridor. In 2022, he was elected as the First Deputy Mayor of Děčín, where he was in charge of urban development, investments, infrastructure, urban planning, transport, and IT. He is currently a transport expert in the civic association Kudy z krize and is involved in the Stačilo! movement, where he plans to run in the upcoming parliamentary elections in the Czech Republic.

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