If the New Zenica Steelworks ceases operations, the consequences will be unfathomable and the livelihoods of 1,700 people will be at risk, warned Dragan Zelenković, Acting General Director of the Railways of Republika Srpska, in an open letter.
Zelenković spoke out after the company was informed on Friday, February 27, 2026, by Nova Ljubija from Prijedor that, due to problems in the business operations of the New Zenica Steelworks, the transport of iron ore on the Omarska–Zenica route would be suspended. As a result, they were forced to halt freight transport as of March 2.
Shutdown of the Coke Plant Already Caused Problems
Developments in Zenica and Prijedor are closely linked to the shutdown of the Coke Plant in Lukavac. At the time, a chain reaction was warned about, as extensively discussed by employees, trade union representatives, and the management of the New Zenica Steelworks at a press conference held on Friday. They stated that the potential collapse of the steelworks would trigger a chain reaction affecting 500 companies.
The Railways of the Federation of Bosnia and Herzegovina also stated that they are facing a difficult year, as revenues have declined following the shutdown of the coke plant. They are losing tens of millions.
The Railways of Republika Srpska claim that the suspension of iron ore transport on the Omarska–Zenica route represents a new “tectonic blow” to the company.
“When it comes to the possible continuation of transport, colleagues from Nova Ljubija stated in a brief letter that they will inform us in due time. I am addressing you regarding a very serious situation that directly concerns the future of the Railways of Republika Srpska, with new blows to the survival and livelihoods of around 1,700 of our employees,” Zelenković wrote at the beginning of the letter.
Railways of Republika Srpska Lose 60 Percent of Revenue
Due to the new circumstances, the Railways of Republika Srpska informed all relevant institutions in Bosnia and Herzegovina that on Monday, March 2, 2026, they suspended freight transport for their strategic partner, which accounts for 60 percent of the company’s total freight transport revenue.
“If the New Zenica Steelworks ceases operations, the consequences for the Railways of Republika Srpska could be catastrophic, especially given that we have already witnessed the shutdown of the Coke Plant in Lukavac. Do we have an alternative? We do not. Traditional goods and other cargo that should be transported by rail are being transported by road. We are more affordable and more acceptable both environmentally and financially, but difficult times and certain poor legislative decisions have, unfortunately, worked against the railway sector in Bosnia and Herzegovina for decades,” Zelenković stated.
He emphasized that the Railways of Republika Srpska annually transported around 1.4 million tons of iron ore, scrap iron, and other raw materials for the New Zenica Steelworks.
“On an annual basis, the Railways of Republika Srpska generated approximately 19 million BAM in revenue from this transport. Sixty percent of our total freight revenue came from transport services for the New Zenica Steelworks. The Railways of Republika Srpska, like the Railways of the Federation of Bosnia and Herzegovina, are of essential importance in both entities for the economy and industry, regardless of its size and level of development. They not only provide freight transport services but are also a key factor in maintaining economic stability. At a time when we are facing numerous market challenges and economic turbulence, any additional crisis could have a negative domino effect. The shutdown of the New Steelworks would result in the loss of a significant number of jobs, further burdening the economy and increasing unemployment,” Zelenković warned.
He added that many workers in both the Federation of Bosnia and Herzegovina and Republika Srpska could lose their jobs, and their families would face serious financial hardship.
“That is why we are calling for urgent and reasonable decisions. We appeal to all relevant institutions and to society as a whole to recognize the seriousness of the situation, to acknowledge the importance of railway transport, and to do everything in their power to preserve the economy and industry in our region,” Zelenković said.
Shutting Down Is Not an Option
The shutdown of not only the New Zenica Steelworks but also the Railways of Republika Srpska and the Railways of the Federation of Bosnia and Herzegovina must not be an option, he emphasized, noting that they are mutually interconnected and that urgent decisions regarding the railway sector are necessary.
“We are facing a crucial period for stabilizing the system and implementing urgent reforms within the legislative framework. The shutdown of the Lukavac Coke Plant, along with the uncertainty surrounding the continuation of operations at the New Zenica Steelworks, serves as a warning that a system neglected for decades must urgently be transformed into a sustainable service for citizens, workers, and the economy. We do not want our workers on the streets. We want social peace, not unrest, which seems increasingly likely. We want to survive. Do not take away our jobs. Let us unite in a joint effort to preserve jobs, economic stability, and the future of the entire community in our region,” concluded the head of the Railways of Republika Srpska.
