Management Assistance and Institutional Development Requirements for the Railway Modernization Project for Bucharest-Constanta Line (2002-8)

This project is Phase III of an ongoing series of initiatives to restructure and eventually privatize the Romanian National Railway Company. These management consulting services (the management assistance and institutional development) are for the National Railway Company (CFR-SA), National Passengers Railway Transport Company (CFR Calatori), and National Freight Railway Transport Company (CFR Marfa), as part of a JBIC project to upgrade the standards of the railway line as well as related facilities between Bucharest and Constanta, the line constituting a part of Pan-European Corridor IV. Objectives include: (i) financial analysis for CFR Calatori, CFR Marfa and CFR SA (the Infrastructure Company) specifically for the Bucharest-Constanta section by establishing line-specific traffic costing system; (ii) institutional analysis for the Infrastructure company; and (iii) assistance for reform including preparation of business plans for the Bucharest-Constanta line and assistance in its implementation.

The team is undertaking the following: () thorough review of operational/financial data, formulation of proposals for procedures/routines for implementation of regular traffic costing initiatives and development of tariff/subsidy models, as well as a control/capture system; (ii) traffic surveys as well as examination of revenue and subsidy allocation, operating cost analysis, demand/profitability analysis of passenger and freight services and infrastructure, financial projections and network access charges, including review and analysis of various methodologies vis-à-vis their applicability to CFR, and formulation of proposals and recommendations based on that review for incorporation into both financial projections and operational plans; (iii) institutional analysis, definition of responsibilities and roles between Ministry of Transports Constructions and Tourism and CFR Infrastructure; and (iv) formulation of various business plans and action plans specific to the Bucharest-Constanta line for CFR Calatori, CFR Marfa, and the Infrastructure Company. Other activities include commercial, financial and treasury management improvement measures, marketing, and management training.