The upcoming troika-mandated privatization of TRAINOSE and ROSCO in conjunction with the demand that OSE retire from all commercial activities will bring huge changes to the Greek railway system. Private investors have also requested that the maintenance of the railway network be handled by someone else other than OSE, since OSE has been unable to protect its property.
When the troika representatives initially came to Greece in 2010 they immediately demanded that OSE shit down, as it had accumulated debts exceeding 10 billion euros. Ultimately the train company was allowed to continue, on condition that it assumes a regulatory role over the railway network and retires from commercial activities. “Healthy” elements such as TRAINOSE, GAIOSE and ROSCO have been separated from OSE and are in the process of privatization.
While the retirement of OSE from commercial activities pleased investors, they have requested that the company also gives up the maintenance of the railroad network to another firm, as OSE has been unable to protect its multi-million euro investments and upgrades of the railway network. This prompted the creation of a Public-Private sector Partnership for a railroad network maintenance company. The PPP indicates that the 7-year contract would have a total budget of 350 million euros.
Current legislation provides OSE with 110 million euros for the network maintenance, while TRAINOSE pays about 20 million euros to OSE on an annual basis for use of its network. According to the Ministry of Infrastructure the privatization of TRAINOSE and ROSCO will be complete by 2017, when ERGOSE’s railroad network expansion projects will be underway.
The French railroad company SNCF, the Russian RZD and the Romanian GFR have all expressed a keen interest in the Greek railroad companies. The European Commissioner of Competition Almunia will decide upon the sale and approve the erasing of TRAINOSE’s debts towards OSE.
