North Macedonia pauses rail freight market liberalization

North Macedonia pauses rail freight market liberalization
© ZRSMT
North Macedonia has reversed its previous decision to open its rail freight market to external players, aiming instead to stabilize the state-owned rail freight company, Železnici na Republika Severna Makedonija Transport (ZRSMT).

The move, announced by Skopje, reflects efforts to avoid financial collapse for ZRSMT, which has been facing operational and fiscal challenges, reports Indoház Online. The government had previously struggled to meet payroll obligations, highlighting the company’s precarious financial state.

The revised policy, which was reviewed in consultation with the European Commission, postpones the liberalization of North Macedonia’s rail freight market until the country’s prospective accession to the European Union. North Macedonia applied for EU membership in 2004 and has held candidate status since 2005. Industry analysts note that this delay may affect the potential entry of several major European freight operators who were considering launching services along the key transport route from Greece to Central Europe. MŽ Infrastruktura, which manages North Macedonia’s rail network, had projected an additional income of €1.6 million from independent freight operators this year, reflecting the anticipated economic benefits of market opening.

ZRSMT’s operational challenges stem partly from an aging fleet and limited locomotive availability. Recent issues included the loss of a Croatian-sourced 442 series Rade Končar locomotive to a fire and the sidelining of four CRRC Zhuzhou 443 electric locomotives from China due to wheel wear reaching critical levels. Replacement wheelsets from China have arrived in April, but until they are installed and CRRC locomotives are back in operation, ZRSMT is supplementing its fleet with four electric locomotives on lease from Srbija Kargo.

Private sector responses to the policy reversal have been cautious. Makstil, a steel producer, has been advocating for private rail freight options to transport its products, pointing to Serbia as an example where open access to national railway infrastructure has been available since 2016, resulting in competitive pricing and service improvements. Skopje’s decision effectively delays similar opportunities within North Macedonia until EU membership status changes.


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