Sources: UIC, ZRS, FBH Statistical Office. Border crossings

4. Financial performance of the railways

ZFBH

1. 
   In terms of financial performance, the two FBH railway companies are significant loss makers dependent on public subsidy. On ZFBH, operating expenses exceed revenue, even with the inclusion of the operating subsidy. Table reveals that there has been a slight improvement in both the operating ratio and the working ratio in the last few years. ¹⁸ However the proportion of revenue necessary to cover expenses in the first six months of 2009 was over 130 percent, including operating subsidies. Without subsidy, it was over 160 percent. The working ratio displays a certain amount of volatility, but only in one year does total income, including subsidies, cover total operating expenses.
   

2. 
   Labor costs represent a substantial and growing share of the cost structure for ZFBH. Labor costs increased by over forty (42.2) percent over the period 2005-2008, in contrast to revenues, excluding subsidy, which increased by twenty-nine (28.7) percent over the same period, primarily driven by the increase in freight traffic. Labor costs accounted for almost more than half of total operating costs and nearly three-quarters of total revenues in 2008, up from approximately one-third of total operating costs and sixty-eight (68) percent of total revenues in 2005. This increase seems hard to justify given the restrictive working practices, poor productivity, and a static number of employees.