With those 10 billion euros, Romania has managed to modernise 600 kilometres of railways. Another 900 kilometres of works are ongoing with an estimated value of 6 billion euros.

That is a lot of work that is still underway, but Staicu is happy about the point Romania is about to reach. After all these years, major investments are reaching their ‘delivery moment’.

“That’s quite an important milestone in our activity, because all of society, the European Union and so on only look at completed investments. No one is keen on hearing that you struggle, or you have issues, or you found out that you need to modify some laws internally or regulations. Everyone is looking for that missing connection or bottleneck that is making everyone spend days or weeks without moving their freight and passengers”, says Staicu.

TEN-T and Constanța

EU funding has primarily been directed towards the TEN-T network and associated corridors in Romania, specifically the Rhine-Danube corridor and the newly created Baltic-Black Sea-Aegean corridor. Over 80% of investments have gone toward completing these corridors, with a major focus on the Rhine-Danube corridor’s main axis, linking the west (Curtici) to Constanța.

Staicu highlights two projects on this axis that are close to completion. “We have works ongoing between Brașov and Sighișoara with two big tunnels now being drilled. The expectation is for it to be completed in 2028. In the meantime, the status is around 98-99% from Sighișoara to Simeria and further on.”

The overarching goal of these projects is to allow freight and passengers alike to move across Romania quickly. The Black Sea and Romania’s biggest asset, the Port of Constanța, play a central role in this idea. The latter has seen substantial investments in its links with the broader rail network.

As a result, it could serve as a more attractive entry point for goods into Europe. This holds especially true, considering that it is the largest and deepest container port in the Black Sea. It therefore also occupies a key position on the Middle Corridor from China to Europe.

An approach in stages

Multimodality (linking different transport modes) and energy efficiency (including extensive electrification and introducing new technologies) are current priorities to ensure the network supports economic growth, explains Staicu. The Danube river also offers opportunities for better multimodal connectivity to the European hinterland – which is why Romania is working on an extensive dredging programme to secure year-round navigability.

EU funding has greatly helped Romania to implement these projects. However, money does not grow on trees and is in limited supply. Budgetary constraints exert a restricting effect on infrastructure works. While Romania tries to comply with all TEN-T standards (160 kilometres per hour for passenger trains, 22.5-tonne axle load, 740-metre train length, electrification, and ERTMS), implementing all of this is not always financially feasible.

As a result, the approach has recently shifted to tackling TEN-T standards in different stages of implementation. By prioritising the most critical infrastructure works, like axle load and electrification, Romania aims to meet the minimum interoperability standards first. These factors are must-haves for a train to be able to enter the network from neighbouring countries and to make unhindered cross-border traffic possible.

As Romania’s largest port, the Constanta is a key logistics hub, including within the framework of the Middle Corridor. Illustratively, the Romanian logistics company Grampet Group and Kazakh Railways’ subsidiary KTZ Express will be working on an expansion and modernisation of infrastructure in the Port of Constanta as well.The cooperation “aims to streamline rail traffic for the transport of goods between Europe and Asia, especially on the China-Europe-China route”, according to Grampet Group.

For its part, GP Intermodal agreed with KTZ Express on offering each other rail transportation services. Within the framework of their cooperation, the former will take on European transport, whereas the Kazakh company will offer services in Asia.

“We are optimistic about the future of rail transport, both in Romania and in the region. We have ambitious goals, and together with our partners at KTZ Express we can turn them into reality”, said Gruia Stoica, president of Grampet Group.

European Silk Road Summit 2024

The Middle Corridor will be one of the key topics to be discussed at the European Silk Road Summit 2024, taking place in Vienna on 27-28 November.

Registrations for the yearly event are already open, while the programme, which this year highlights the fast-recovering China-Europe rail market, is shaping up.

The project will cost 402.343.706 Romanian lei (about 81 million euros), and the winning bidder will need to implement a design study that will last six months while the works will last about 20 months. The financing will be secured via the EU’s CEF and Romanian state funds.

First round objectives

As mentioned, the railway modernisation of the Valu lui Traian station and its vicinity is just the first part of a broader rail modernisation project targeting a much-needed upgrade of the port of Constanta. During this modernisation stage, the primary objective is the construction of a railway yard at the station that will comprise 32 fully electrified lines. Additionally, existing lines of the railway station will be electrified, and the same will apply to lines that will connect the station’s main facilities with the new railway yard.

Moreover, the facility will ensure TSI and ERTMS 2 implementation and compliance through these works. According to CFR Infrastructura, the upgrade will increase transit capacity and improve interoperability. As for the broader Constanta port modernisation project, it will include two more stages before completion and costs that will reach the amount of 4.5 billion Romanian lei (905 million euros).

Also read:

• Romania opens its way for licensed Ukrainian grain

• Moldova will reconstruct critical railway lines with EU support

• Moldova integration on EU railways: first priority is electrification

A matter of definition

Alternative port gateways for the export of Ukrainian products are far from reaching capacity needs. Lyashchenko said to Interfax-Ukraine that the Polish ports of Gdynia and Gdansk can accommodate 8.5 million tons of cargo per year, while the port of Constanta is facing a number of limitations, also resulting from the fact that it is used for Ukrainian imports. Simultaneously, the fact that Romania and Poland also have grain export needs means that port capacity during peak harvest seasons will be even more restricted.

On the other hand, Baltic ports can accommodate 20 million tons of cargo annually, with ten of them exported only via the Lithuanian port of Klaipeda. However, as Lyashchenko mentioned, considering the Baltic ports solution is a matter of timeframe. That being said, in the long run, Baltic ports can be a great solution in conjunction with railway infrastructure developments delivered by RailBaltica.

In Lithuania, for instance, RailBaltica did not include a rail connection to Klaipeda. This is something that needs to be addressed anew. The same should apply to transport costs since the rail route to Klaipeda will be 50 per cent more expensive than the route to Gdansk, making a special tariff regime imperative for its operation.

Positive developments with Moldova-Romania

Ukraine, Moldova and Romania have held consecutive high-level meetings in the past few weeks to increase Ukrainian cargo transit. One of the plans is to increase cargo transit through Romania from 2.5 million tons to 4.5 million tons annually. For Lyashchenko, this could be possible thanks to some infrastructure upgrades with Moldova–namely the Berezine – Basarabiaska border crossing.

Nevertheless, there are still several restrictions on the Romanian side concerning mainly rail transhipment infrastructure in the port of Galati. This results in long queues of wagons waiting to cross the border. On a positive note, though, it appears that Romania could also follow Moldova’s example and apply tariff discounts for Ukrainian cargo, which Lyashchenko expects to happen soon.

CEF funding

As the new round of CEF funding proposals, including Ukraine, opened on 25 September, Ukrainian railways are also preparing their applications. Lyashchenko underlined that since this is a competition, the company will include as many projects as possible in the application to have a good scoring chance. The Mostyk-Sknyliv 1435 mm rail track between Poland-Ukraine and projects in Lviv for its transformation into a rail hub with infrastructure meeting European standards will be prioritised in the application process.

“Thanks to this border crossing, Ukrzaliznytsia can increase the volume of export and transit transportation. According to our calculations, the station will allow the transport of an additional four to ten million tons of cargo per year. We invite businesses to use this new alternative route actively”, stated Vyacheslav Yeromin, a board member of Ukrainian Railways.

In the works for almost a year

The Infrastructure Ministries of Moldova and Ukraine signed an MoU to develop railway connections between the two countries in June 2022. In this context, they also decided to reopen the Berezino-Basarabeasca rail link, which has been in disuse for 25 years and could use some refurbishment. In total, the line is 23 kilometres long, while Moldova’s part covers a distance of just 1,2 kilometres. Understandably, most reconstruction works needed to take place on Ukrainian territory.

The rail link was ready for use by late August 2022, two months after the bilateral agreement to revitalise it. However, it took some months for Ukrainian railways to start using it. Nevertheless, in the meantime, the two countries had been using two other railway crossings along the northern Moldovan border, these between Sokyryani – Oknytsia and Mohyliv-Podilskyi – Velchynets.

Also read:

• Ukraine urges Romania to ‘do its job’ for 2 more cross-border lines

• Ukraine-Romania open new cross-border line linking to Constanta

For the past months, Ukrainian Railways waited for their Romanian counterparts to do their part in reopening the line. On Tuesday, Alexander Kamyshin, CEO of Ukrainian Railways, took to Twitter to announce the inaugural service from Rakhiv, using a new diesel train that was entered into service during the war.

New connections for freight and passengers

Kamyshin stressed that the new line opens up a new avenue for rail freight transport to and from the port of Constanta, a major hub on the Black Sea. Passengers, on their part, gain new international transfer options now that it is possible to reach the airport in the Romanian city of Cluj-Napoca. The head of Ukrainian Railways also highlighted that many Ukrainians have friends and relatives in the neighbouring country. According to Kamyshin, some 30.000 Ukrainians live in the Maramureș border district in Romania.

The railway chief said a few issues regarding border control and Customs remain but added that Ukrainian vice-prime minister Oleksandr Kubrakov and the committee for Ukrainian-Romanian governmental cooperation had thrown their support behind the new cross-border link.

Crossing the border from 🇺🇦 to 🇷🇴. pic.twitter.com/Ut03Z8BfR6

— Alexander Kamyshin (@AKamyshin) January 17, 2023

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This article originally appeared on our sister publication RailTech.com.

Also read:

• Ukraine urges Romania to ‘do its job’ for 2 more cross-border lines

New connection to Duisburg

The new connection with Duisburg crosses the border with Hungary at Curtici, runs via Hegyeshalom and Passau to eventually reach the final destination Krefeld Uerdingen in 48-52 hours. A second roundtrip is in the planning for December/January, depending on the delivery time.

“The main market we are aiming at is truck companies, since we are 19 x T3000 double-pocket wagons. However, we also transport containerised cargo, as this type of wagon is suitable for all kinds of containers or swap-bodies”, said Niculescu.

Connections to Milan and Constanta

The company however has more plans on the shelves. The connection Teiuș – Milan, which was the first to be launched when the terminal became operative, will be expanded with a second departure in Q2 of 2023, targeting the same trucking segment of the logistics industry. “For this service we use a 16 x T3000 train composition due to the train parameters on the Italian side.”

A third short-term project of Unicom Tranzit is to play a role on the Middle Corridor with a connection to the port of Constanta. “We plan to serve the maritime businesses to and from Central Romania or the Eastern European region with Constanta Port, but we also offer this connection together with our running Teiuș – Duisburg service for customers on the Middle Corridor, with traffic between Europe and China.”

“We think we could offer a steady solution on the Middle Corridor with the route Constanta Port – Teiuș – Duisburg. This is a good solution for the container flows that come in via the Black Sea, but also a good connection for traffic that runs via Istanbul.”

Also read:

Terminal Teiuș Romania launches first links with European hubs

Cosmin Carstea, CEO of DP World Romania, commented on the news website The Loadstar that the new rail service could run with up to five roundtrips per week, and trains could carry up to 50 containers per time.

Investment with future

Understandably, a global player like DP World also sees a long-term benefit in such commitments. Apart from helping Ukrainian grain to find new rail routes toward Romania, the Dornesti terminal will also boost the company’s presence in the country. Apart from its hub terminal in the port of Constanta and Dornesti, DP World is also working in another location.

Specifically, in early May, the company kicked off the construction of a new multimodal logistics terminal in Aiud, in the region of Transylvania. As the company commented, “with over 50 per cent of Romania’s industrial GDP coming from the wider Transylvania region, the Aiud terminal will perform a key role in expanding the country’s global trade while providing robust infrastructure in a region that traditionally lacked it”. Additionally, DP World stressed that the terminal will “sit directly on the train line linking Europe to China via Central Asia”.

Also read:

• DP World kicks off construction of new multimodal terminal in Romania

Doubled capacity

Responding to this demand, RCG has announced it will rapidly increase its grain transport from Ukraine, with plans to double capacity in a few weeks. The firm expects shipments to Austria will double and reach around 2,600 tonnes by the end of July, to free up storage space in Ukraine ahead of the next seedtime and harvest.

Clemens Först, RCG’s CEO, explained: “I’m glad Rail Cargo Group can make a small contribution to supporting Ukrainian agriculture in this difficult period and secure seeds and storage space for the next harvest while ensuring the supply of affordable grain worldwide.”

More through Hungary and Romania

Alongside increased shipments to Austria, deliveries to Hungary will also rise sharply. RCG now expects to increase the tonnage of deliveries to Hungary by as much as 66 per cent, reaching around 6,500 – 9,100 tonnes by the end of July.

Hungary has been a leading destination for rail shipments of grain from Ukraine. RCG’s subsidiary Rail Cargo Hungaria is responsible for around 75 per cent of grain exports from Ukraine to Hungary. This equates to about 10 to 15 weekly trains, with approximately 70 per cent of this grain staying in Hungary and the rest re-exported, primarily to Italy.

Further capacity increases are expected to support rail shipments via Romania, with RCG hoping to boost transport once current diesel shortages ease. Currently, RCG has four barges transporting grain via waterways to Constanța, carrying around 20,000 tonnes of grain per month, but may look to increase rail shipments should fuel supply issues improve. Until May this year, RCG transported over 33,500 tonnes of grain from Reni in the Odesa Oblast of south Ukraine to the port of Constanța on the western coast of the Black Sea in Romania.

Also read:

• First export grain train arrives in Austria from Ukraine

• ÖBB supports humanitarian logistics, this time with hygiene products