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Cargo will sell its wagons and repair shops

State-run railway freight carrier Cargo will move its wagons, transfer areas and depots into the hands of its subsidiaries, and subsequently sell their shares to private companies. This is one of the options included in the working version of a document prepared by the Transport Ministry to solve the current economic problems of the firm, published by the Sme daily on June 5.

State-run railway freight carrier Cargo will move its wagons, transfer areas and depots into the hands of its subsidiaries, and subsequently sell their shares to private companies. This is one of the options included in the working version of a document prepared by the Transport Ministry to solve the current economic problems of the firm, published by the Sme daily on June 5.

“The only thing we can exclude today is the privatisation of Cargo,” said spokesperson for the ministry Martin Kóňa, as quoted by Sme, adding that it is too soon to reveal the details.

According to the material, the state plans to move only some of its activities and property to the subsidiaries, while it will still keep a 100-percent share in the parent company, which will continue transport goods. The revenues from selling the shares would be used to decrease the debt of Cargo, which currently stands at about €500 million, of which €136.7 million is owed to state, Sme reported.

The material does not say anything about looking for investors.

Ondrej Matej from the Institute of Transport and Economy, who served as the advisor of former prime minister Iveta Radičová, says the material will allow private firms to access the profitable parts of Cargo, while the state will keep the debts. Former transport minister Ján Figeľ added that the “patrons of [ruling party] Smer” will be the ones who will earn on these changes, Sme wrote.

In addition to the planned sales of shares the material also counts with some discounts from fees, which Cargo has to pay to the state-run Železnice Slovenskej Republiky (ŽSR) railway network operator, Sme reported.

Source: Sme

Compiled by Radka Minarechová from press reports
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