Railway Modernization & Restructuring Project

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The Railway Modernization and Restructuring Project seeks to modernize and restructure Hrvatske Zeljeznice (HZ) in order to diminish its deficit and thus also its financial burden on the budget while creating a company adapted to a competitive transport market. There are seven project components. First, track renewal and maintenance of core routes will help strengthen the existing profitable transit traffic, strengthen the prospects of new traffic, and decrease maintenance costs. Second, rehabilitation of traction units and spare parts will allow daily availability of the rehabilitated traction units to reach at least 80 percent. Third, conversion of freight wagons will provide full side-access and strengthened floors for pallets, which will allows HZ to increase its presence on revenue generating segments of the freight transport market. Fourth, rehabilitation of passenger coaches will preserve the availability of passenger cars for service through overhaul of these coaches. Fifth, environment protection will mitigate potential negative impacts on the environment. Sixth, severance payment will match the number of staff assigned to a specific activity to the actual demand. The last component will implement efficiency improvement measures at the company's management and organizational levels.