After achieving an exceptional profit of 17.432.407 BAM in 2023 and positioning themselves among the TOP 20 most profitable companies in Canton Sarajevo (CS), the Railways of the Federation of Bosnia and Herzegovina (FBiH) are recording a dramatic reversal in 2024.
The company ended the year with a loss of 14.918.757 BAM, and an additional blow followed already in the first three months of 2025 when the accumulated loss reached 9 million BAM.
Railway interruption – a key cause of multimillion losses
One of the main causes of the financial collapse lies in the four-month interruption of railway traffic on the Donja Jablanica – Komadinovo Vrelo section, where the October floods of 2024 destroyed 70 meters of track – a vital lifeline connecting BiH with the Port of Ploce in Croatia.
While local communities and businesses counted their losses daily, the response of the authorities was delayed. Reconstruction began only two months later, thanks to a donation, and railway traffic was not restored until the end of January 2025.
“In January there was no transport at all, and the southern railway line was not in operation. There was a break in Jablanica, which directly reflected. We entered 2025 already with a 5.5 million BAM deficit,” stated acting director Mirza Hadzibegic earlier.
Lost contracts and revenue
The floods did not only bring physical damage – they created a domino effect in the form of lost contracts. The biggest hit was recorded in international coal transport for Elektroprivreda Srbije, where as much as 350.000 tons of cargo went unrealized, causing an additional loss of 15 million BAM.
The interruption created monthly losses of 5.5 million BAM, meaning that in four months revenue worth 22 million BAM was lost. In addition, several contracts expired precisely while the railway was out of operation, and clients were redirected to alternative logistical routes.
Although the track has been restored, it did not come without a price. The direct repair costs amount to 3 to 4 million BAM, while the total damage costs are estimated at around 30 million BAM. The Railways have applied for funds from the European Union (EU) Solidarity Fund through the Council of Ministers of BiH, but a response is still pending.
Drop in volume and competition from Republika Srpska (RS)
The situation is further complicated by competition from RS. RS Railways took over part of the coal transport from the Omarska mine for Mittal Zenica, where FBiH previously had a significant share. The drop in transport and disruptions in the supply chain led to an even more pronounced deficit.
Less income – fewer workers
In addition to the financial blow, the Railways are also affected by a reduction in the number of employees, which further reflects the crisis in operations. In 2022 they employed 2.656, the year after that the number was 2.585, and in 2024 it dropped to 2.498 employees.
The Railways of FBiH have gone through a drastic decline, from the most profitable in 2023 to multimillion losses already in the first quarter of 2025. Infrastructure vulnerability, slow response of the authorities, and loss of key contracts clearly point to the need for strategic reform and security investments, in order to prevent similar situations in the future.
