Transport, infrastructure and communications1

Transport, infrastructure and communications¹

1. Transport and infrastructure

   1. General overview

comprising:

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  Rehabilitation of the main international routes, in a three phase programme with external and state budget financing;
  

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  Modernisation of the existing national roads; and
  

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  Motorway construction programme with priority on east-west connections (Bucharest – Pitesti and Bucharest – Constanta) with financial support from the EBRD and the Japan Bank for International Co-operation (JBIC).
  

while the second stage will focus on modernisation of the railway lines in order to increase speed. The financial support for this programme is ensured through loan agreements with inter-national financial institutions and programmes (the World Bank, EBRD, EIB, and PHARE).

River traffic is almost exclusively done on the Danube: from Bazias (at its entry into Romania) up to Braila it is navigable for small draught ships (up to 2 m), while the maritime Danube, between Braila and Sulina, is navigable for up to 7m draught ships.

The river Danube, which flows 1,075 kilometres through Romania, is an important

trade route for the country to central Europe. The construction of the Danube-Black Sea canal created an important waterway that connects the Black Sea to the North Sea through the Rhine-Main-Danube canal. At the same time, The Danube-Black Sea canal offers more opportunities for trade as the newly independent Caspian states seek outlets for oil exports that bypass the Bosphorus. However, the potential of the Danube as a trade link was severely hindered as a result of the Kosovo conflict and the resulting blockage of the river.

Finally, agreement with Bulgaria should be reached regarding the planning and use of the terminals in the river ports in both countries.

The consortium, including lawyers Musat & Associates, auditing company PricewaterhouseCoopers and U.S.-based aviation consultants Simat and Helliesen & Eichner Inc, to evaluate the airline and draft a privatisation strategy to be subsequently approved by the government. Romania plans to sell a maximum stake of 66 per cent of the airline, with the state keeping a 34 per cent controlling share. The privatisation strategy may envisage a sell-off of the remaining shares on international capital markets.

US$ 330 million. Its estimated turnover for 1999 is US$ 180 million, up from some

US$ 149 million a year ago. Tarom plans to acquire eight new Boeing 737-700 and 737- 800, with two of them expected to become operational by the

end of 2000. By 2002 it expects to add an Airbus 330 to its fleet.

The Romanian capital Bucharest has two large airports, Otopeni, which handles international traffic, and Baneasa. An ambitious expansion and restructuring programme for Otopeni airport is under implementation with a consortium of two Italian companies, Italstrade and SEA. Other Romanian airports for international traffic are Timisoara, Constanta, Arad, Sibiu, Targu Mures, Oradea and Iasi. In total 17 towns in the country are being served. Romanian airlines are connecting Romania with over 50 cities on 4 continents.
The development of the transport infrastructure will continue to feature among the principal aims of the Romanian Government. In this respect, the Government has drawn up a bill of law on modernising the country’s overland, air and maritime transports.
It is projected that 13 highways are to be built covering 3,000 Km, as well as 1,200 Km of new railway lines, new bridges over the Danube and the Prut river and 4 new airports at Brasov, Galati, Alba – Iulia and Bistrita. The existing railways will be upgraded to suit high – speed trains. The territory of Romania will be crossed by several pan-European corridors: the Danube connected to the Rhine-Maine –Danube Canal, a lot of main railway lines, the highway and the Bucharest-Chisinau-Kiev road.
A credit worth 1 billion USD, granted by Japan, is being used for developing the Constanta-Sud harbour and the West-East main railway line. A financial group from Turkey provides funding for the works on the Bucharest-Giurgiu highway (44 Km., three lanes for each direction). In order to modernise the aircraft fleet, certain types of aircraft will be replaced with Boeing 767-300. This later through a loan from the ING Group.

2. General policy

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  The assertion of Romania’s position as the main turnplate of continental and intercontinental transports on the major West-East and North-South routes;
  
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  The organisation of all national networks for all transport ways, in order to secure a better territory coverage;
  
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  The removal of disfunctions in certain areas, by providing better transportation conditions to citizens;
  
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  The development of intermodal transports, both as regards traffic and in areas of impact with the main European corridors;
  

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  The improvement of transportation safety and environment protection.
  

Along this line, the following goals have been set:

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  Rehabilitating, upgrading and developing transport infrastructures (highways, bridges) to improve transportation comfort and safety, freight transport efficiency, mobility of the population, along with harmonising the national transport system to the European one.
  

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  Expanding international financing through the World Bank or private sources in order to speed up the modernisation of the road, railway, port and airport infrastructure.
  
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  Developing and upgrading transport means and equipment with a view to improving the quality of services, traffic safety and cargo security.
  
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  Reorganising thoroughly the system of state companies in the railroad system with a view to curbing losses, reducing subsidies, and securing the smooth co-ordination of the Romanian Railway Company.
  
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  The thorough restructuring of the National Roads Administration, by letting connected activities branch out and go to private hands (repair, maintenance, signalling), the securing of a coherent management of the motorways, the reconsideration of the roads’ classification, the efficient employment of the internal and external funds and the employment, to a greater extent, of Romanian-made products and equipment.
  
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  The restructuring of the companies with state capital subordinated to the ministry with a view to enhancing the efficiency, cutting down the subsidies and paving the way for the privatisation process.
  
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  Stimulating, encouraging, consolidating and liberalising the domestic transport market, in a competition-oriented system, especially as concerns the rail and air transport.
  
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  Securing the population’s social protection by means specific to the domain.
  
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  Backing the Romanian capital, by promoting and supporting the Romanian investors in investment projects abroad.
  

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  Ensuring environmental protection and conservancy.
  

An ambitious programme has been elaborated for rehabilitation, upgrading and development of the transport infrastructures for the improvement of the passengers’ comfort, increasing their safety and rendering the goods transport more efficient, with a view to setting the national transportation system in line with the European system.

3. Development of transport means and facilities (2001-2004)

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  Rehabilitation and purchase from the Romanian industry of locomotives by co-operation with prestigious foreign companies;
  
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  Upgrading 500 freight cars and 100 passenger cars;
  
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  Modernisation of major railway stations; assistance for marketing;
  
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  Equipment of passenger railway transport with electric trains and motor engines (135 units);
  
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  Development of a computer-assisted system to issue tickets and seat booking;
  

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  Upgrading subway trains and buying new trains.
  

Programme of alignment of national transport system by the Danube with the European system:

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  Upgrading Danube shipping safety systems.
  
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  Ship traffic monitoring and management system at the port authorities of Galati, Tulcea and Drobeta-Turnu Severin.
  

The stimulation, encouragement, consolidation and liberalisation of the domestic market of railway transportation in a competition-oriented system shall be ensured by means of:

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  Revising the current railway organisation and defining the statute of the regulatory authority in the railway transportation sector;
  
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  Backing the development of the private rail transport operators’ activity;
  

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  Starting the privatisation of the commercial companies that branched out from the SNCFR.
  

Securing the population’s social protection by means specific to the domain:

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  The development of the communal infrastructure and inauguration of the road transportation specialising in carrying school children in at least 120 localities a year, with the assistance of the county and local councils;
  
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  Subsidising the naval transportation for the Danube Delta inhabitants and the road transportation for Tara Motilor region’s inhabitants.
  
  
  

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  Cushioning the impact of the transportation sector’s activity upon the environment by extending the employment of motor vehicles with treated emanations and low noise;
  
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  Operation of low emanation transport means, with a view to diminishing environmental pollution and rendering more attractive the low pollution transport ways and means;
  
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  Rehabilitation of environment in Constanta Port and on the sea coast;
  
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  Carrying out development works (dams) seeking to protect the Romanian sea coast;
  

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  Environmental protection works and equipment in the Danube harbours.
  

Endorsement of community acquis in this domain, mainly meant to:

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  Secure technical assistance for the harmonisation of the regulations and their rules of enforcement, consistent with the community acquis provisions;
  

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  Earmark funds for the institutional construction of the rail, road, air and naval regulatory authorities.
  

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