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Reading: A Difficult Year for the Railways of the Federation of Bosnia and Herzegovina
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Sarajevo Times > Blog > BUSINESS > A Difficult Year for the Railways of the Federation of Bosnia and Herzegovina
BUSINESS

A Difficult Year for the Railways of the Federation of Bosnia and Herzegovina

Published: April 15, 2026
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The Railways of the Federation of Bosnia and Herzegovina (ŽFBiH) will increase passenger ticket prices by 20 percent as of March 1, 2026. At the same time, the 50 percent commercial discount for groups of 30 or more passengers will be reduced to 30 percent.

Why Are Ticket Prices Increasing?

Hadzibegic said the primary reason for the fare increase is alignment with the provisions of the Public Passenger Transport Group within the Chamber of Commerce.

The adjustment was prompted by a directive from the Board of the Public Carriers Group, which warned that railway fares were between 41 percent and 51 percent lower than those in road transport. Had the adjustment not been made, the company could have faced regulatory consequences. The increase was therefore necessary to meet minimum pricing alignment requirements, he explained.

A one-way ticket on the Sarajevo–Ploče route costs 29.30 BAM, while a return ticket is priced at 48.30 BAM.

The revised discount policy applies exclusively to groups of 30 or more passengers.

When asked whether he expects a decline in passenger numbers, Hadzibegic said he does not anticipate significant changes, noting that railway services remain considerably cheaper than road transport and that the company has a stable customer base accustomed to train travel.

Digitalization and Online Ticket Sales

One of the key projects underway is the introduction of an electronic ticketing system.

The digitalization project is currently in the preparatory phase, with the tender procedure yet to be launched. Once implemented, passengers will be able to purchase tickets via a mobile application, website, ticket machines and at counters, eliminating queues and handwritten tickets.

The system will also improve oversight of train occupancy levels. According to Hadzibegic, it will provide precise data on ticket sales and passenger numbers, addressing recent complaints about overcrowding. The company will be able to determine the exact number of seated and standing tickets available on each route.

He also emphasized the financial benefits of digitalization, stating that reducing cash transactions will minimize the risk of irregularities and strengthen revenue control, potentially increasing overall income.

Additionally, the system will allow detailed reporting to the Ministry of Transport and Communications, providing accurate data on passenger flows across all routes. This will help authorities determine which lines qualify as services of public interest and where additional co-financing may be required.

18 New Stops Planned in Sarajevo Canton

ŽFBiH, in cooperation with Sarajevo Canton, is developing a suburban railway model that proved successful during the reconstruction of Sarajevo’s tram network.

The model was initially introduced as an alternative mode of transport during tram works and has since evolved into a structured urban commuting system.

Plans include the construction of 18 new railway stops. Currently, five are in the design phase under a framework agreement. Municipalities are expected to facilitate administrative procedures to accelerate the issuance of urban planning permits, enabling further development and construction.

While the focus remains on Sarajevo Canton, interest has also been expressed by Una-Sana, Tuzla and Herzegovina-Neretva cantons.

Why Is There No Sarajevo–Banja Luka Line?

Outdated infrastructure remains a key obstacle. Many railway sections have not been overhauled for years, significantly limiting operating speeds — a critical factor for passenger transport competitiveness.

Hadzibegic stressed the need for comprehensive systemic reform, including structural investments in both infrastructure and the railway operator. Although digitalization and new routes are planned, current capacity constraints limit expansion.

Sarajevo–Zagreb Line Depends on Subsidies

Efforts are ongoing to re-establish the Sarajevo–Zagreb international line. A joint operational body has been formed between the state-level Ministry of Communications and Transport of Bosnia and Herzegovina and the Ministry of the Republic of Croatia. A meeting with HŽ Passenger Transport is scheduled for next week.

While the line is technically feasible, its launch depends on financial arrangements. Passenger transport services are generally unprofitable, and subsidies are required to cover the gap between operating costs and revenue, he noted.

Coke Plant Shutdown: A 25 Million BAM Blow

One of the most significant challenges is the shutdown of the coke plant in Lukavac (GIKIL), which previously accounted for approximately 25 to 30 percent of railway service revenues.

The estimated financial loss amounts to around 25 million BAM, including approximately five million BAM affecting the Railways of Republika Srpska. The closure represents a major blow to both railway companies.

Salaries and Collective Bargaining

Collective negotiations with unions are ongoing. Hadzibegic acknowledged that wages remain low, with more than 600 employees earning the minimum wage. The wage structure has compressed toward the minimum level, placing certain qualified positions near that threshold and requiring corrective adjustments.

Following a planned business plan rebalance, management expects to gain a clearer picture of the financial space available to address union demands.

Issues related to uniforms and protective equipment are linked to public procurement procedures and legal disputes. Further procurement decisions will depend on the outcome of the financial rebalance.

Sarajevo–Ploče Line Remains Active

The Sarajevo–Ploče line will continue operating. Since November last year, it has functioned as a year-round weekend service, having previously operated only seasonally.

Hadzibegic concluded that reforms are urgent and require a long-term strategic vision.

“There is not much time left. We must begin reforms today to avoid the fate of industrial centers that suddenly found themselves facing workforce crises. The reforms must start now, and I believe there is the will to implement them,” he said.

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