The Railways of the Federation of Bosnia and Herzegovina (FBiH) are making an urgent appeal to all government institutions due to the possible consequences caused by the announcement of the suspension of production at the Nova Željezara Zenica company.
The Nova Željezara Zenica company has announced the cessation of operations unless the Council of Ministers of BiH, at its announced session on March 23 of this year, makes a decision to protect domestic production. As we have previously warned, with this statement we would like to once again draw attention to the fact that the cessation of operations at the Zenica Steel Plant would have very harmful consequences for the Railways of the Federation of Bosnia and Herzegovina (FBiH). The lack of timely support and concrete measures would put the business and livelihood of 2,500 workers of the Railways of the Federation of Bosnia and Herzegovina (FBiH) in question, and would also endanger numerous other subcontractors.
We would like to note that this crisis comes after the already suffered loss of 10 million BAM due to the closure of the Lukavac Coke Plant.
According to the acting According to the President of the Board – General Director Mirza Hadžibegić, urgent reforms are necessary for the survival of the Railways of the Federation of Bosnia and Herzegovina in terms of financial consolidation, modernization of processes and infrastructure, and a long-term sustainable financing system through the adoption of the Law on the Transport of Hazardous Materials, earmarking a portion of excise taxes for the Railways of the Federation of Bosnia and Herzegovina, or other legal solutions. Until the implementation of the aforementioned reforms, urgent measures are needed to ensure the continuity of rail transport throughout Bosnia and Herzegovina.
Therefore, we call on the Council of Ministers of Bosnia and Herzegovina and all government institutions to take into account the impact on the railway sector and the serious consequences that would arise from the cessation of production at the Zenica Ironworks when making decisions.
Since its establishment, the Railways of the Federation of Bosnia and Herzegovina have not been in a more difficult and delicate position, and this is not their fault. Negative legacy, turbulent changes in the BiH economy, changes in the flow of goods in domestic and international transport, the absence of a long-term and optimal way of financing and investing in the railway sector, among other things, has put the Railways of the Federation of Bosnia and Herzegovina in the unenviable situation of being a potential collateral damage, which we cannot solve on our own.
“That is why the Management Board of the Company is strongly committed to finding systemic, feasible and sustainable solutions for the benefit of all economic entities, with the support of relevant government institutions. In this sense, we are ready to give our full contribution to resolving current, difficult issues with the conviction that the Railways of the Federation of Bosnia and Herzegovina will continue to be a reliable partner to all customers in the future,” said Director Hadžibegić.
