Described by Transport and Communications Minister Mr Evripidis
Stylianidis as the "biggest loss-making public-sector enterprise in
Europe," OSE loses around Euros 1 billion per year and has accumulated
debts of around Euros 9 billion, which Stylianidis warns could exceed
Euros 11 billion by 2011 unless urgent action is taken.
Under the plan, fares will double by 2011 with a 33% increase planned
for August, which is intended to raise rail fares up to 80% of those
charged on intercity bus services. The higher fares are expected to
increase revenue by Euros 5.4 million this year, Euros 22.8 million
next year, and Euros 39 million in 2011. Meanwhile operating costs are
expected to fall by 21% this year, and 52% next year.
Up to 3000 employees could also become paid reserves in a proposal the
government anticipates will save Euros 350 million over 10 years.
Stylianidis says OSE will work towards more efficient management of its
real estate assets, which are worth around Euros 14.3 billion and he
believes that if the restructuring is successful, Trainose could be
profitable by 2012.
Photo: Phil Wormald