TRAINOSE agreement for the barren lines greenlighted

According to information available to OT, the new contract for the barren lines on Greek railways received the green light from the Court of Auditors. The agreement between the Greek State and  TRAINOSE of Italian interests for the services of general economic interest, amounting to 750 million euros, is on track two years and four months after the signing of the relevant Memorandum of Cooperation. The way was opened for the immediate signing of the new contract, while the existing one winds down on April 15.

The strengthening of competitiveness and the “opening” of the railway market, which remains largely on paper, were critical parameters, which determined the difficult course of the discussions. In the two years that negotiations between the Ministry of Infrastructure and Transport and TRAINOSE lasted, the main issue was the systematic monitoring of the execution of the routes of the barren lines and the consequent compensation of the company.

Increase of finalized works and control of route schedules

As explained by sources of the competent Ministry, with the contract that was signed when TRAINOSE still belonged to the State and is valid until today, there was no control as to whether the company adhered to the agreed upon timelines. Nevertheless, the annual price of 50 million euros was a constant, no matter what.

The new contract, on the other hand, provides a mechanism for monitoring the executed itineraries, while the company will not only not be compensated for those itineraries of the plan of the Services of General Economic Interest (SGEI) that it has not performed, but will also be subject to relevant clauses, such as finse in case of non-implementation of the contract.

In fact, according to the secretary general for Transport, Mr. Giannis Xifaras, who undertook to run the negotiations, it has also been ensured that with the same money we will be able to have much more routes and to serve the railway project much better for the subsidized lines.

At the same time, on the negotiating table were issues of improvement, through the agreement of the barren lines, of the provisions of the contract of sale of the state-owned company to the Italian Ferrovie dello Stato Italiane.

2.5 billion euro benefit for the economy

The total value of the new 15-year agreement will amount to 750 million euros, with the annual compensation remaining stable at 50 million, but providing for mandatory investments in Greek railways. As the Minister of Infrastructure and Transport, Mr. Costas Karamanlis, had stated during the signing of the MoU, in November 2019, “in our new contract, the total benefit for the Greek economy, in investments and salaries, within the next nine years , will amount to almost 2.5 billion euros, contributing to the substantial upgrade of the services provided “.

According to information, the binding investments concern new trains, including the modern hybrid trains that TRENITALIA is building, rolling stock leases, investments in new technologies, investments and leases of facilities of the former EESSTY, which now belongs to TRAINOSE.

Given that TRAINOSE is the only “player” in passenger transport, while after the acquisition of the former state EESSTY is the only rolling stock maintenance company in the country, the agreement is considered a one-way street.

It is noted that the intention of the Greek side to extend the exclusive assignment of SGEI to TRAINOSE with a new contract for 180 months had been notified to the EU. According to the competent actors, this assignment is in full compliance with Regulation 1370, as the period of one year required by Community law has passed, during which another company could express its interest in the Greek network.