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Forced optimization in the railway industry

In June 2025, the project to rehabilitate the 233-kilometer-long Bender-Causeni-Basarabeasca-Etulia-Giurgiulesti railroad section was to be completed. This is the most important and largest track repair project in the history of independent Moldova. However, back in August 2024, the works were extended until 2027 - due to the increased volume. Some sections of the road turned out to be in much poorer condition than thought and needed major repairs.
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Forced optimization in the railway industry

Sergey Kotelnik

Nevertheless, the state enterprise “Moldovan Railroad” recently reported that the works on the restoration of a strategic section of the railroad continue. Major and medium repairs have been carried out on the line Căinari-Zloci (station in Cimislia district). More than 60 switches at 14 stations have been replaced, and the railroad tracks at the stations of Causeni, Zaim, Zlocin, Căinari and Cimislia have been reconstructed. Work is underway on bridges and pipelines.

Along the section Bender – Basarabeasca – Etulia – Giurgiulesti – border with Romania, the main flow of transit cargoes from Ukraine goes through Moldova to the Galati metallurgical plant (now called Liberty Steel Galaţi), as well as to the seaports of Galati and Constanta. Trains carry grain, liquid fuel, and all kinds of raw materials: oils, glass, slag, saltpeter.

It is on the transit of cargoes that the Railways receives its main income, and the company, as we know, is in a very difficult economic situation.

The state enterprise reminded about the ongoing repair not only because of the importance of the project, but also because of the date of its beginning. Exactly three years ago, in June 2022, the contractor, a company from Kazakhstan Temirzhol Zhondeu (Temirzhol Zhondeu), started the repair work. It won an open international tender.

Another reason for Railways to remind itself is the recent government-approved amendments to the Railway Transport Code. They are aimed at completing the reorganization process of the state-owned enterprise Railways of Moldova.

The reorganization process started many years ago, with the signing in October 2012 of an agreement with the European Bank for Reconstruction and Development (EBRD) to finance the Moldovan Railways Restructuring Project. Our country pledged to adopt a new Railway Transport Code, which was one of the conditions for granting loans from the EBRD and EIB banks. The new Code was adopted by the Parliament in February 2022.

In turn, the Railways received loans, which were used to purchase 12 new diesel locomotives and modernize the Bender-Basarabeasca-Etulia-Djurgiulesti line.

One of the main components of the reorganization process is the division of the WDM into three separate legal entities: state enterprises for infrastructure, passenger and freight transport. The goal is to optimize costs.

At the beginning of June 2025, Railways of Moldova announced that it continues the process of optimizing the structure and production process. Of the existing 71 railway stations, 21 stations are to be transformed into train stopping points by the end of the year. Some will be mothballed or closed. About 3 million lei are spent on their maintenance and servicing every month, which will be redirected to pay the salary arrears. The staff not involved in the production process is being reduced.

The acting director of the ZDM, Serghei Cotelnic, admits that the transformations are not easy. “The optimization process is not very popular with us, but we need to cut costs and find additional income. The payment of salaries is entirely related to the volume of transit traffic, and we have to work in this direction. One of the goals of the reorganization is to split into two separate divisions, infrastructure and transportation, which will have to learn to live independently and work efficiently in the near future. Both one and the second division will be on the balance sheet of the state”.


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