Railway of Moldova enterprise announces significant progress: increased revenues, reduced debts, paid salary arrears

The Railway of Moldova (CFM) state enterprise is experiencing a notable recovery phase, due to a complex of measures implemented in recent months, which have led to improvements in financial and operational situations. Despite difficulties, monthly revenues have exceeded the threshold of 60 million lei, allowing resources to be directed towards fulfilling financial obligations, reducing salary arrears and paying debts to strategic partners, according to CFM.

The enterprise said that a significant progress was the cutting of salary arrears.

“While in last July, delays reached 7–8 months, by August they reduced to 4 months. Employees received two salaries in a single month and in five major branches - even three salaries, the total amount transferred being 129 million lei. According to the plan, by the end of September, salaries for May 2025 will be fully paid,” said CFM.

Besides financial measures, institutional reorganization has allowed process optimization, cost reduction and enhanced efficiency.

“Adjusting the personnel from 5,900 to 3,700 employees reduced the salary fund from 43 to 35 million lei monthly. At the same time, historic debts to the state budget and providers have been significantly reduced: only to strategic partners, 334 million lei has been transferred, dropping arrears for fuel from 7–8 million to 1 million lei,” the source noted.

Changing the business model has brought visible results.

“Previously, transport was transit-based; now, the domestic market provides most of the revenues, with an increase in grain transport volume from 20 per cent to about 80 per cent. Simultaneously, repairing critical railway segments has increased the average speed from 15 km/h to 40 km/h,” the company said.

For the next period, additional revenues of about 10 million lei monthly are estimated by reopening the Valeni–Giurgiulesti section, and strengthening international partnerships and adapting tariff policies will contribute to stabilizing and developing CFM.

“These are results that prove the great potential of the Railway of Moldova. I thank the specialists and the team for their joint effort. We still have a lot of work ahead, but we have a clear strategy for increasing revenues and resolving all salary and historical arrears,” said Serghei Cotelinic, CFM's general director.

CFM's leadership highlights that the support of Moldova’s government, which allocated over 155 million lei for infrastructure repairs, settling salary arrears, and implementing railway reform, in addition to diesel fuel from the State Reserve, also played a decisive role.

“The achievements confirm that we remain a strategic entity for the national economy, capable of generating revenues, honoring commitments and contributing to the modernization of transport infrastructure and Moldova’s integration into international networks,” CFM added.