new trends in romanian railways reform
DESCRIPTION
NEW TRENDS IN ROMANIAN RAILWAYS REFORM. - Reform stopped after 1998 ?. - Necessary time for consolidation. New challenges and more difficult tasks to be achieved. NEW TRENDS IN ROMANIAN RAILWAYS REFORM. - Staff reduction. - Outsourcing. - Cost control system. - Complex IT system. - PowerPoint PPT PresentationTRANSCRIPT
NEW TRENDS
NEW TRENDS
IN ROMANIAN RAILWAYS
IN ROMANIAN RAILWAYS
REFORMREFORM
- Reform stopped after 1998 ?- Reform stopped after 1998 ?- Necessary time for consolidation- Necessary time for consolidation
-New challenges and more difficult New challenges and more difficult tasks to be achieved tasks to be achieved
NEW TRENDS
NEW TRENDS
IN ROMANIAN RAILWAYS
IN ROMANIAN RAILWAYS
REFORMREFORM
- Cost control system- Cost control system- Complex IT system- Complex IT system
- Privatization of CFR-Marfa- Privatization of CFR-Marfa
- Staff reduction- Staff reduction- Outsourcing- Outsourcing
Staff reduction in 2001Staff reduction in 200140 % Management staff reduction40 % Management staff reduction
CFRCFR FREIGHTFREIGHT PASSEPASSENGERSNGERS
SAASAAFF
SMFSMF TOTALTOTAL
TOTAL TOTAL STAFFSTAFF
48.81548.815 29.05029.050 23.70323.703 412412 2.7092.709 104.689104.689
STAFF STAFF REDUCREDUCTIONTION
3.6933.693 2.1342.134 1.5161.516 2121 2121 7.3857.385
%% 7,507,50 7,307,30 6,396,39 5,105,10 0,780,78 7,05 7,05
Staff reduction in 2001Staff reduction in 200140 % Management staff reduction40 % Management staff reduction
CFRCFR FREIGHTFREIGHT PASSEPASSENGERSNGERS
SAASAAFF
SMFSMF TOTALTOTAL
TOTAL TOTAL STAFFSTAFF
48.81548.815 29.05029.050 23.70323.703 412412 2.7092.709 104.689104.689
STAFF STAFF REDUCREDUCTIONTION
3.6933.693 2.1342.134 1.5161.516 2121 2121 7.3857.385
%% 7,507,50 7,307,30 6,396,39 5,105,10 0,780,78 7,05 7,05
Staff reduction in 2002Staff reduction in 2002CFRCFR FREIGHTFREIGHT PASSEPASSE
NGERSNGERSSAASAAFF
SMFSMF TOTALTOTAL
TOTAL TOTAL STAFFSTAFF
45.12245.122 26.91626.916 22.18722.187 391391 2.6882.688 97.30497.304
STAFF STAFF REDUCREDUCTIONTION
4.9004.900 2.3162.316 3.5003.500 141141 1010 10.86010.860
%% 10,8010,80 8,608,60 16,2016,20 36,0636,06 0,300,30 11,16 11,16
Staff reduction in 2002Staff reduction in 2002CFRCFR FREIGHTFREIGHT PASSEPASSE
NGERSNGERSSAASAAFF
SMFSMF TOTALTOTAL
TOTAL TOTAL STAFFSTAFF
45.12245.122 26.91626.916 22.18722.187 391391 2.6882.688 97.30497.304
STAFF STAFF REDUCREDUCTIONTION
4.9004.900 2.3162.316 3.5003.500 141141 1010 10.86010.860
%% 10,8010,80 8,608,60 16,2016,20 36,0636,06 0,300,30 11,1611,16
19981998 20002000 20012001 20022002106.000106.000 104.600104.600 97.30497.304 88.44488.444
202244 197698
178820
155678
133201
106000 10460097304
185362
105200
141027 137139
88444
0
50000
100000
150000
200000
250000
empl
oyee
s
employees 202244 197698 185362 178820 155678 141027 137139 133201 106000 105200 104600 97304 88444
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
~ 97.000 EMPLOYEES LESS 97.000 EMPLOYEES LESS
Personnel Evolution
Outsourcing
Outsourcing
&&
Privatization
Privatization
2 RepairsCompanies forHeavy Track
Machines
5 ProductionCompanies
for Signaling
5 ProductionCompanies
for Signaling
5 ProductionCompanies
for Signaling
5 ProductionCompanies
for Signaling
NationalNationalRailwayRailwayCompanyCompany
Railways Branches
Rail WeldingCompany
Signaling Equipment
(5 branches)
Overhaul ofHeavy Track
Machines(2 branches)
PrintingActivities
Engineering &Design
TO BE PRIVATIZEDTO BE PRIVATIZED
2 RailcarsWashing
CompaniesFreightFreightCompanyCompany
Railways Branches
RailcarsWashing
Companies(2 branches)
Container Distribution
by tracks
TransshipmentRailcars
Maintenance& Overhaulof Railcars
Maintenance& OverhaulLocomotives
TO BE PRIVATIZEDTO BE PRIVATIZED
4 Maintenance& Overhaul
Coaches Company
4 Maintenance& Overhaul
Coaches Company
4 Maintenance& Overhaul
Coaches Company
PassengersPassengersCompanyCompany
Railways Branches
Sleeping &Restaurant
CoachesOperations
Maintenance& Overhaulof Coaches
(4 branches)
TicketsDistribution Maintenance
& Overhaulof LocomotivesTO BE PRIVATIZEDTO BE PRIVATIZED
Reform of the financial & accounting Reform of the financial & accounting systemsystem
5.000.000 Euro project for the restructuring of cost 5.000.000 Euro project for the restructuring of cost control, financial and accounting systemcontrol, financial and accounting system
Deadline: June 2003Deadline: June 2003
ObjectivesObjectives– New structure of Profit and Cost CentersNew structure of Profit and Cost Centers– Definition of the cost of each activityDefinition of the cost of each activity– New business plansNew business plans– Improved access charge formulaImproved access charge formula
Railway Infrastructure ManagementRolling Stock ManagementTrain Circulation Planning and
MonitoringFreight Operations & Commercial
Management
$ 35 Million$ 35 Million BudgetBudget
IRISIntegrated Railway Information System
PRIVATIZATION PRIVATIZATION OF FREIGHT RAILWAYS COMPANY (1)OF FREIGHT RAILWAYS COMPANY (1)
How to privatize the Romanian Railroad (maximize How to privatize the Romanian Railroad (maximize purchase price, minimize impact on employment, purchase price, minimize impact on employment, retain regulatory control, preserve local ownership retain regulatory control, preserve local ownership interest, etc.)interest, etc.)
Continuation of reform actions (access fee, staff Continuation of reform actions (access fee, staff dimension, fleet structure, cost control)dimension, fleet structure, cost control)
Information on the market about the offer for Information on the market about the offer for privatizationprivatization
Sale process (procedure, timetable, performance Sale process (procedure, timetable, performance guaranties)guaranties)
Due diligence (data room, commercial inf., Due diligence (data room, commercial inf., financial inf., assets, relevant contracts)financial inf., assets, relevant contracts)
Final bid (price, commitment to execute the final Final bid (price, commitment to execute the final contract, bid bond, minimum bid ?, open bid ?)contract, bid bond, minimum bid ?, open bid ?)
Selection & closingSelection & closing Post-closing (transition duties, labor, government Post-closing (transition duties, labor, government
responsibilities, renegotiation of the contract ?)responsibilities, renegotiation of the contract ?)
Presumed term for privatization : 2004Presumed term for privatization : 2004
PRIVATIZATION PRIVATIZATION OF FREIGHT RAILWAYS COMPANY (2)OF FREIGHT RAILWAYS COMPANY (2)