Better roads and railways, once the Association Agreement is implemented

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Publishing date: Thursday, 30 April 2015
Views: 18687

Abstract


The road transport sector bears a significant impact on the economic development of the country and reforms to improve the transportation network are needed.

Implementation of the Association Agreement will lead to better conditions for drivers, reduced transport contraventions and improved traffic discipline. Still, the situation remains uncertain regarding the enforcement of legislation in the transport sector. As long as corruption and unfair competition exist, it is impossible to reach an efficient management of transport services.


Currently, the country's railway sector is a natural monopoly. The existing rail transport is inefficient and costly. Trains’ circulation speed is small, and Moldovan Railway Company (CFM) is not capable to ensure efficient and competitive transport for small quantities of freight. In addition, passenger transportation is subsidized from revenues of the freight transportation, which has led to a price hike for cargo rail transportation.

In this context, the railway sector records dramatic fails in amount of fright shipped, since most companies have shifted from railway to road transport, which is faster and more competitive. The current situation stresses the importance of rail sector reform and harmonization of the legal framework with the European norms.

 

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Tags: Natalia Chitii

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