The new company will be the legal successor to all rights and obligations of the existing company, including assets, contracts and personnel. Fixed and current assets used for passenger and cargo transportation will be transferred to the new structure, while the JSC’s capital will be formed from the property of State Enterprise “CFM”.
Objectives of the reorganization
The reorganization is aimed at increasing the efficiency of the company, modernizing the infrastructure and improving the quality of transport services. It is planned to revise the organizational structure and operational processes, modernize rolling stock and railway infrastructure, introduce modern management and control systems, and comply with international safety, health and environmental standards.
The financial condition of SE “CFM” has remained extremely unstable in recent years. While in 2022 the company showed an isolated profit of 62.1 million lei, in 2024 the losses reached an “alarming” amount of 322.6 million lei. The cost of transportation in 2024 amounted to 897.9 million lei, while revenues amounted to 635.1 million lei, resulting in a negative gross margin of 41%. Return on equity and return on assets remained negative for several years, while the debt burden increased, reducing the financial autonomy of the company.
A “strategically necessary” measure
The government considers the reorganization urgent and strategically necessary.
It will make it possible to increase economic and operational efficiency, attract investments, reduce dependence on the state budget, modernize the railway network and rolling stock, improve the quality of passenger and cargo transportation, and bring the company’s activities in line with the requirements of the European Union, according to the cabinet.
CFM “Pasageri și Marfă” will take over assets worth 1,526,287,569 lei, including equity capital of 869,444,236 lei and liabilities worth 1,526,287,569 lei. Among them, it will receive long-term liabilities worth 343,314,935 lei and current liabilities worth 60,530,945 lei.
The liabilities to the personnel, which will also be assumed by the new enterprise, amount to 36,001,720.04 lei, while the liabilities to the state social insurance fund amount to 23,107,124 lei.
The reorganization will be financed entirely from the CFM’s own funds, without putting pressure on the state budget, the authorities said.
