The Government of the Republic of Moldova has initiated the reorganization of the state-owned enterprise Railway of Moldova and the establishment of the joint-stock company Railway of Moldova – Passenger and Freight, with fully state-owned capital. The measure forms part of the railway sector reform and provides for the separation of infrastructure management from transport operations.
According to the Ministry of Infrastructure and Regional Development, the reorganization follows the Railway Transport Code and Moldova’s commitments to its development partners.
The Public Property Agency will act as the sole shareholder of the new company and will coordinate the reorganization process. It will approve the allocation balance sheet and asset transfer documents to protect public interest and state property. The transfer of rights and obligations to Railway of Moldova – Passenger and Freight will take place exclusively on the basis of the legally approved allocation balance sheet. The new company will take over only the assets and obligations directly related to passenger and freight transport. Railway infrastructure will remain public property under the management of the state-owned enterprise Railway of Moldova.
Authorities will distribute debts proportionally, depending on the activities and assets transferred. Obligations related to external financing and on-lending agreements will appear separately in the balance sheet, in line with legislation and creditor consent. This approach prevents the unjustified transfer of debts and allows investment projects to continue.
The separation of activities enables clear accounting of costs and revenues in railway transport. It allows the state to better assess economic performance, reduce pressure on the public budget, and create conditions for investment in services.
For citizens, the reform means more predictable transport services and more efficient use of public resources for socially important passenger transport. Separate management will help improve service quality, timetable compliance, and reliability. In the medium term, authorities expect more efficient cost management and a stabilizing effect on tariffs.
Reorganization does not mean privatization. The state remains the owner of railway infrastructure, including tracks, stations, land, and facilities, managed by the state-owned enterprise Railway of Moldova. The joint-stock company will manage rolling stock and passenger and freight transport operations. The clear separation of roles allows authorities to distinguish infrastructure costs from transport costs.
Through this decision, the Government creates a framework for railway transport to function as a clearly managed public service, with defined responsibilities, for the benefit of the economy and the citizens of the Republic of Moldova.