“It is high time to seek for economic efficiency solutions.”

Interview with Mr. Mihai Necolaiciuc, General Manager with CFR-SA

 

Railway Journal: Mr general Manager, for the beginning I would like you to draw up a synthetic image of what means exactly the general strategy for CFR-SA?
Mihai Necolaiciuc: As we all know, based on American consultancy company’s recommendations, (SENECA) our entire railway system was reorganized completely. That led of course, to structural changes for the entire strategy of this field, whose main orientation were the base of the particular orientation strategies for the new railway entities, both related to their own activity and to the interdependent relations between them and their partners from other fields. Although have now this organization structure, we will still change some few aspects in the near future. First we have in mind SUDAREC and SPLIACT units that will be transformed in subsidiaries in order to extend their activity in the near future. Then we thought that maintenance and repairing works to be handed over to the railway constructors. We have to have further debates on this issue with them for starting the enterprise on the secondary routes and after that on certain main routes.
    Economic calculi show that this is the most efficient way to do this, both for them and for us. As long as they had to do both the working plans for the next day and the control of the railways, it was impossible not to appear some delays or inadvertence. From our part, we will diminish the number of the lines, so that their activity will be oriented much on control. Splitting of these activities will certainly have some benefic effects both financially and qualitatively. A simple calculus shows that by externalizing the maintenance activity and the RK we will register savings in amount of ROL 2.000.000 per worker and in the same time we will have the right to ask for the warranty and rigorous verification of workings. Of course, we will be very attentive on selecting the railway men to whom we will hand over this activity so that our system should function perfectly for the very beginning.
RJ: Is this a premiere in the railway activity?
MN: No. We haven’t invented this solution. But it cannot be applied for all situations because not every railway enterprise functions on the same system. It differs from country to country, from region to region and even from field to field. If we succeed what we have planed, it is clearly understood that we will go on improving our activity. I believe in the revitalization of the CFR-SA.
RJ: Unions, are they aware of this new orientation?
MN: For now, I have made this proposal only for our employees as study theme. We will discus with the service chiefs and we will take into account any opinion related to this subject, and after that we will draw the final decision. Then I will discuss with the unions as well. Our responsibility here is to create the strategic basis and to insure protection for our employees. Everybody has to do their job, not disregarding the opinions and responsibilities of others.
    I accept to meet with the unions to negotiate the social problems, but I will never agree that union’s leaders to involve themselves in problems that are related to core aspects of our activity that are exclusively the administration’s responsibility.
RJ: Since you have already mentioned the short-term strategy, which are the immediate problems that must be solved by the end of the year?
MN: It is well known that the end of the year is in general a difficult period for the railways. Winter causes some difficulties in our day by day activity. And, as railway transportation is of a strategic importance, I may say, for the entire national economy, as well as for our everyday life, it is very obvious that especially during hard times, a rhythmical and operative activity becomes a major problem. That is why, we took special measures, in order to prevent as we could the possible negative effects winter could bring to the railways. We have complete and concrete programs for all departments we coordinate. A great importance will have the winter commandment that will work 24 hours a day in a sustained effort to overcome the emergency problems that could interfere. All these preparations make me believe that we will succeed in showing once again that railway transportation is the safest one and that blocking does not exist.
RJ: You said that because of the current organization of the system certain changes have occurred in the relationships between new created railway units. What kind of changes?
MN: As you already know, for public transportation we have one long-route operator and eight regional short-route operators; for freight transportation we have a main operator and two private ones (yesterday we concluded an agreement with the second one). All perspectives for this activity department lead to one need: privatization. At the moment, our activity covers almost a third part of the potential we have, so we need two other third parts in order to complete the existent capacity. Or, this branch could be achieved only by private operators. The many of them, the better will be for everybody. This is how we consider our relation with private operators.
    Regarding the relationships we have with the other railway units, what can I say? Generally we base our collaboration on mutual understanding and help, but of course, there are some disagreements that we try to resolve them. As both parties are at the beginning of this process of what our activity will be in the future, I think that all these disagreements are in fact simulative, offering new perspectives very useful for our strategies.
RJ: What could you tell in the end, about the aspects regarding railway transportation within the perspective of the European demands.
MN: I could tell you a lot. European integration has multiple aspects related to railways. I mean, here the programs related to the infrastructure. Priority is still the development programs for routes included on the pane-European corridors IV and IX. We try to carry out the improvement for both routes in parallel and not consecutively. It is for this reason that we proposed for the European companies to work on Iv corridor, and the American ones to work on IX corridor; our proposal was accepted; now we have some details to deal with.
    Among these major programs, we have many others that represent for us the necessary small steps toward better, efficiency and profitability.
    Thus, in order to diminish our losses with the thermal agent, we discussed with the Minister a program in collaboration with the Americans by means of which to obtain the heat by using our own power plants. The amortization will be achieved in three years, which is in the end in our profit. Another project we are about to develop in collaboration with foreign partners is that related to phonic-absorbing panels we intend to install along the railways. We had some talking with the Italians and Germans. The advantages on our side will be not only for the inhabitants that live in the proximity of the railway, but also the protection for the environment and why not to say it, a nicer aspect of our railways. Since this plan has as aim “the environment protection”, makes me to believe that we will obtain easier the financial funds we need.

 

Reporting Dan Pantea