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Sarajevo Times > Blog > BUSINESS > Railways of the FBiH ready to take over the Transportation of Oil
BUSINESS

Railways of the FBiH ready to take over the Transportation of Oil

Published: May 26, 2016
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zeljeznice2The Director General of Railways of the FBiH, Enis Dzafic signed an agreement on technical and business cooperation with the director of the company Operator Terminali FBiH, Dzemal Basic. This agreement practically means that the Railways of the FBiH are fully prepared to carry out transport of mandatory state oil reserves, which should be kept in state oil terminals, and now are kept at private terminals, as announced from the Railways of the FBiH.

This will directly affect the reduction of the burden of road traffic, and contribute to traffic safety, and it is also a significant financial incentive for both state enterprises.

In order to transport one million tons of oil and oil products a year, which are the needs of market of BiH, 91 truck circulates everyday on the roads of BiH. The Railways of FBiH would solve this problem with two trains a day. Mandatory reserves of the Government of FBiH are 230,000 tons of oil stored at private terminals, for which the Government pays the rent. All this amount of required reserves the Operator – Terminali FBiH are ready to take and the Railways of FBiH to transport.

“We have 100 tank wagons that are ready to transport specified amount. This would gain considerable financial income necessary for the further development of the Railways of the FBiH. If the oil and oil derivatives would be transported entirely in this way, the Railways of the FBiH would have an additional annual income of around 25 million BAM, and the effects on for country would be multiple. The state would have direct control over the processes of imports of oil and oil products, which would reduce the possibility of smuggling. Collecting customs duties and VAT would be in order, which would result in an increase of the tax rates. It would secure control of the quality of liquid fuels and environmental protection, since the Railways are using clean energy source for transportation. Moreover, an increase in the volume of transport by railways would increase the domestic consumption of electricity. And, the thing that is very important, it would directly influence on the relief of road traffic and increase of safety for all the traffic participants, which would contribute to reducing the number of accidents, and the preservation of road infrastructure,” said Dzafic.

He emphasized that the natural role of the Railways of FBiH is to be a generator of development of BiH.

“We have all the necessary predispositions to decisively influence on prices, profitability and safety of traffic as a leader in the transport of goods,” said Dzafic.

(Source: klix.ba)

 

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