More support for the Serbian railway industry

The European Bank for Reconstruction and Development (EBRD) is stepping up its support for Serbia’s railway sector, this time by providing a loan to state-owned operator Serbia Cargo. The bank provides the company with a loan of 43 million euros to finance the modernization of the truck fleet. It is reported by Railway Supply magazine with reference to RailFreight.

Serbia Cargo will allocate funds for the replacement of obsolete rolling stock, the purchase of new locomotives and freight cars, as well as the overhaul of existing cars. It will also receive technical assistance to strengthen corporate governance, improve staff skills and improve rail safety. In this way, the company will be able to improve the quality and volume of its freight traffic and encourage greater use of rail transport on the currently dominant road, the EBRD says.

To date, the EBRD has already invested almost €500 million in this sector, recognizing the importance of the Serbian railway. “The railway sector is a key priority for the EBRD in the Western Balkans as we support countries in the region to upgrade their infrastructure and services. This will help unlock economic opportunities, enhance regional integration and promote a more sustainable transport model,” explained Matteo Colangeli, EBRD Director for the Western Balkans.

Execution for sabotage on the railway

And just like the EBRD, the European Investment Bank (EIB) supports the country’s rail transport. Earlier this month, he allocated 1.1 billion euros to modernize the Belgrade-Nis railway line, which is at the center of Corridor X. Corridor X, which is actually shaped like an X, explains well the interest of European institutions. It connects Salzburg in Austria with Thessaloniki in Greece and via a second line Budapest in Hungary with Istanbul in Turkey. Thus, it connects the southeast of Europe with Central and Eastern Europe.

Meanwhile, China is investing in a rail network north of Belgrade. A few months ago, the first section of the Belgrade-Budapest line was opened and put into operation. In particular, it was the Belgrade-Novi Sad section. Interestingly, China is the only investor in the construction of the line, which is considered critical in the context of the Belt and Road Initiative and the Silk Road network.

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