Even the sale of shares and property will not help pay off the company’s huge debts.
The events of 2020 have become a serious challenge for states and companies. The transport sector has become one of the most affected due to closed borders, but the collapse of the Moldovan Railways has been waiting for a long time. Now the debt of the state enterprise has reached 460 million lei or $26 million. Employees have not been paid since October.
Passenger transportation has been a problem for the company for many years, said the director of the company, Adrian Oncanu.
“Such transportation only incurs losses, because they are not subsidized or financed”, – he said.
Onchanu also admitted that commuter trains are generally dangerous for passengers, because they have long been outdated. However, today there are only three suburban railway routes in Moldova: Chisinau – Bender, Chisinau – Ungheni and Balti – Ocnita. But they will also be closed from 12 February. International passenger transportations were stopped by the Railways Company in the spring of last year, when the world was swept by the COVID-19 coronavirus infection pandemic.
The situation of the enterprise is aggravated by the punitive operation of Ukraine in the Donbass, complained the head of the trade union of Moldovan railway workers, Ion Zaporozhan. According to him, now the trains have to “make big detours” bypassing the combat zone. He also pointed to the reduction in freight traffic, which previously covered losses from passenger traffic.
Taking into account the situation, the management of the enterprise is more and more inclined towards the sale of shares and property of the railway company, including wagons and rails, which will be sent for scrap metal, as well as 170 real estate objects. But the money raised will still not be enough to cover the debts.