Moldovan Infrastructure and Regional Development Ministry commits to improve situation at Railway of Moldova state enterprise

The Infrastructure and Regional Development Ministry (MIDR) has committed to improve the situation at the Railway of Moldova state enterprise (CFM). In a public declaration, the state secretary, Mircea Pascaluta, has said that the authorities had worked out a plan on the enterprise’s transformation and modernization.  

„CFM is a strategic enterprise for Moldova,’’ the state secretary said. He noted that the plan on the enterprise’s improvement took into account the mechanism of allocating subsidies for the maintenance of the railway infrastructure and of the services of passengers’ transport, which will be enforced in line with the good European practices. ‘’The ministry is firmly committed to contribute, through its policies, to the improvement of the situation,’’ Pascaluta said.   

The state secretary also said that, in the last months, more steps had been made to stabilize the situation. ‘’The first one is a full audit, in order to identify the source of the problems and we initiated a process of reorganization, which is to make CFM more efficient and more transparent. Although these changes are not easy, they are necessary, in order to save the enterprise,’’ Pascaluta specified. 

 

On the other hand, CFM recognizes that it went through a process of reorganization and modernization, in order to meet the market requirements. At the same time, the enterprise said that a priority was the payment of the salaries to the employees and the enterprise was looking for solutions.  

„We already implement measures for cutting the costs, increasing the revenues and improving the services for the clients. We work for the modernization of the infrastructure, in order to meet the market’s requirements and to regain the passengers’ confidence. Nevertheless, the priority number one stays the payment of salary debts to 4,997 CFM employees, which amount to 156,863,500 lei, created on the period August-December 2024.  We continue looking for solutions, in order to remedy the economic and financial situation of the enterprise,’’ CFM’s press release reads.   

    



If the salaries of the employees are not paid, the Railwaymen’s Trade Unions Federation of Moldova informs that it will organize protests outside the buildings of the government, parliament and Presidency in next February.  

The Public Property Agency (APP), which is the CFM’s founding institution, said that it had repeatedly notified the enterprise, instructing it to turn to account non-used assets, to control the losses ‘’from thefts and the bad management of the enterprise.’’ At the same time, APP, noted that it had set up a commission, in order to learn the real situation at CFM.   

„APP created the commission of censors and the audit committee, in order to more actively get involved in the identification of the company’s problems. Through these instruments, decision-makers will be able to learn the whole picture of the administrative and financial reality of CFM. Our goal is to enhance the transparency and turn CFM more efficient. We work, in in order to ensure the financial stability of the enterprise, so that CFM meets the requirements of the economy and becomes sustainable.    

The authorities say that an important step in the processing of improvement of the enterprise is the attraction of investments for the modernization of the infrastructure and the grounds, so that ‘’CFM becomes a reliable partner both for passengers and for the country’s economy.’’  

„The state took responsibility to modernize the railways. Presently, major projects are underway with financing from European funds, which regard the rehabilitation of the railway lines from Tighina to Giurgiulesti and from Ocnita to Cainari. Also, people work for the rehabilitation of the railway bridge from Falciu-Cantemir and the Valeni segment, which allows increasing the transit of goods, increase the speed of the trains and improve the safety and attractiveness of the network,’’ the declaration by the state secretary also reads.    

The Railway of Moldova state enterprise is the national railway transport company of Moldova. CFM manages the infrastructure, transport of passengers and goods by railway. For more years, the enterprise has been facing major financial problems. The war in Ukraine caused losses to important flows of goods.