CFR Marfa, on the way to privatization

Most companies with loss are in the Ministry of Transport portfolio and, among them, CFR Marfa is announced to be another milestone.

The privatization strategy of rail freight would be approved on Wednesday within the government meetings and Tuesday was publicly debated with non-governmental trade and unions.

Unlike Oltchim, those who want to buy CFR shares must meet strict criteria: first of all, relevant experience within the field and financial capability that demonstrate the ability to develop a business.

Deputy Secretary General in the Ministry of Transport, Horatiu Buzatu, said that investors interested in the privatization of CFR Marfa will have as main activity object necessarily the rail freight and it will be one of the criteria for prequalification.

He said there will be another public debates.

"We are quite open that within the next period, through these meetings, to bring the privatization process at the best conditions. It represents, therefore, at least the obligation of the ministry to make the privatization of CFR Marfa in complete transparency conditions, "said Horatiu Buzatu.

Unionists do not agree with privatization of CFR Marfa as presented by the Ministry of Transport under the privatization strategy.

And one of the arguments is related to possible layoffs, as President of the Federation of drivers stated, Iulica Mantescu.

"They will not give us any guarantees. We do not agree to sell one hundred percent for the first stage because we have no guarantee that it will solve problems and will not turn off these losses. Mister Buzatu said clearly that when signing the contract of sale to be agreed with the dismissal of 2-3 thousand employees.

"Our fear is that this company will not reach in the hands of a strategic investor and will sell three quarters to scrap and the majority of employees will be reflected in unemployment," said Iulica Mantescu.

In the privatization strategy is stated that the main objective will be to maximize the price that can be obtained from selling stock retained by the state, while the CFR Freight has debts of 450 million Euros.

Translated by Alexandra-Diana Mircea
MTTLC, Bucharest University