2013年-世界发展银行全球_Croatia___Railway_Policy_Note_116页_3mb

Summary of Policy Note: Railway Sector in Croatia

Core Content

This policy note provides an in-depth analysis of the challenges and opportunities facing the Croatian railway sector in the context of EU integration and the need for structural reforms. It outlines the current state of the sector, evaluates the performance of HŽ Holding's subsidiaries, and presents two scenarios for improving financial sustainability and operational efficiency.

Main Objectives of the Railway Sector Reform in Croatia

• To enhance the financial sustainability of the railway sector.
• To reduce reliance on public funding.
• To align the sector with EU regulatory frameworks and market-oriented practices.
• To improve the competitiveness of Croatian railways.
• To ensure efficient use of EU Structural Funds and other public resources.

Status of the Railway Sector Before June 2012

E.1. Structure from 2006 to 2012

• The sector was under the umbrella of HŽ Holding, which had a complex structure.
• There was a need for organizational changes to create a more competitive and customer-oriented railway business.

E.2. Sector's Capacity to Compete in the Open Market

• The sector's ability to compete was limited due to high reliance on public subsidies.
• There were inefficiencies in cost recovery, staffing, and productivity.

E.3. Staffing Issues

• Staffing levels were high relative to traffic intensity.
• Labor productivity was below EU averages.
• High labor costs as a percentage of operating revenues.

E.4. Organizational Issues

• Lack of coordination between entities.
• Poor management practices.
• Need for modern corporate governance structures.

Performance of Main Companies in HŽ Holding

F.1. HŽ Infrastructure

• Performance was assessed in terms of traffic intensity and cost recovery.
• The sector was heavily subsidized and inefficient.

F.2. HŽ Cargo

• Operating costs were high, and profitability was low.
• The sector had potential for improvement through efficiency measures.

F.3. HŽ Passenger Transport

• Passenger transport was also heavily subsidized.
• Productivity was low, and there was untapped potential in key areas.

Investment Capacity of HŽ Holding Companies

• The railway infrastructure was aging and in poor condition.
• Investment in rolling stock and infrastructure was necessary for modernization and competitiveness.
• The financial model suggested that public funding would still be needed for infrastructure and rolling stock maintenance.

Restructuring Plan (June 2012)

• The Restructuring Plan, proposed by HŽ Holding and approved by MMATI, aimed to split the holding into three independent entities: HŽ Infrastructure, HŽ Cargo, and HŽ Passenger Transport.
• This restructuring was intended to improve efficiency and reduce public dependency.
• However, it involved higher public spending and liabilities compared to the World Bank's Recommended Scenario.

Going Beyond the Restructuring Plan

I.1. Assumptions and Goals of the Recommended Scenario

• The goal is to improve financial sustainability and operational performance.
• The scenario assumes a reduction in public subsidies and an increase in efficiency.
• It includes a focus on cost-cutting, productivity improvements, and better use of EU funds.

I.2. Expected Results from the Recommended Scenario

• Improved cost recovery ratios.
• Enhanced productivity in all three HŽ subsidiaries.
• Reduced dependency on public funding.
• Better alignment with EU market principles.

I.3. Outcomes of the Pessimistic Scenario

• The sector would remain inefficient and heavily subsidized.
• Public funding would be insufficient to support investment and operations.
• The risk of financial instability and reduced competitiveness would increase.

Creating a New Business Culture

J.1. Redefining the Role of the Government

• The government needs to act as a regulator and enabler, not as a direct operator.
• It must ensure that public funds are used efficiently and that the legal and institutional framework is properly implemented.

J.2. Embracing Modern Corporate Principles

• The HŽ companies must adopt modern management practices.
• There is a need for improved governance, performance management, and accountability.

Key Challenges for the Railway Sector

1. Ensuring Value for Public Investment

   • The government must ensure that public funds are used effectively.
   • Current levels of support are unsustainable in the long term.

2. Implementing the EU Legal Framework

   • The legal and institutional framework must be strengthened.
   • There is a need for independent and transparent management of the sector.

3. Financial Sustainability of Key Operators

   • The railway companies must be able to operate without significant government subsidies.
   • This requires a shift towards market-oriented operations and improved efficiency.

Financial and Operational Data

• The World Bank's Recommended Scenario suggests maintaining current public funding levels but focusing on efficiency improvements.
• The Pessimistic Scenario indicates continued inefficiencies and high public spending.
• The sector needs to secure around EUR 615 million in counterpart funding from the government to support EU Structural Funds.
• The financial model estimates that annual investment needs would be:
  • EUR 55 million for infrastructure.
  • EUR 30 million for freight rolling stock.
  • EUR 45 million for passenger rolling stock.

Strategic Opportunities

• The EU accession provides opportunities for modernizing the railway network and improving competitiveness.
• The development of logistics hubs in key ports and Zagreb could boost the sector.
• Enhancing transit between Western Europe and Turkey (Corridor X) and between Northern/Central Europe and the Adriatic (Corridors Vb and Vc) could generate additional revenue.
• Efficient passenger transport services could improve living conditions and regional integration.

Conclusion

• The railway sector in Croatia faces significant challenges but also substantial opportunities.
• A long-term vision is needed to guide the sector towards financial sustainability and market competitiveness.
• The government must play a pivotal role in restructuring, ensuring value for money, and fostering a new business culture.
• The implementation of the Restructuring Plan and the adoption of the World Bank's Recommended Scenario are essential for the sector's future development.