University of Kragujevac

Faculty of Engineering

Seminar paper
Topic:

Railway modernization in Serbia

Subject: English language 2

Professor: Neda Vidanovic Miletic Student: Ivan Milutinovic 337/2020

Kragujevac, 2021.
Abstract
The seminar paper mainly investigates the process of modernization of railway in Serbia. First, it
tells about history of railway in Serbia and its development, and it shows how different historical
events affected on state of transport system in Serbia. Further, it shows modernization of railway
in the previous period and efforts of Government in the railway infrastructure projects. Also, it
represents projects that began realization and those that are planned for future. The paper also
represents the sources of funds for projects. In the end of the paper, conclusions are presented
and an overview of the use of literature is given.

Key words: railway, investments, modernization, transport system

2
Introduction

Оne of the basic conditions for the economic growth and development of every country is
developed traffic. One of the first modern forms of transport was the railway. In the first years of
the existence of the Serbian railway, it was at a high level of development for that time.
However, due to wars and political troubles, the development of the Serbian railway was
stopped. Today, the Government of the Republic of Serbia is investing in various projects in
order to modernize the railway in accordance with th European and world standards for railway
transport.

3
History of development of railway in Serbia

Serbian railway was created in July 1881. It all started when Serbia was recognized as a
sovereign state, in 1878 at the Berlin Congress, where Serbian officials agreed to build the first
railway from Belgrade to Nis, and then further south to the Bulgarian border.

In that time, it was the most modern form of transport and it was the key for connection with
Europe. The deadline was three years from the day of the Congress. Because of lack of money,
Serbia announced an auction in 1880 and the only company that participated was a French
company General Union. The next year railway construction began. [2]

Regular railway traffic in Serbia began on September 15, 1884, and in the next century it became
a favorite form of transportation for many - from ordinary people to high state officials.

According to the local newspapers, the Serbian railway was equipped with the most modern and
best cars, and there was a heating system that "not even the Austrian railways" had.

Also, train travel was initially available only to the wealthier sections of society, while ordinary
people could not afford it. The railway was managed by the French company for a short time,
and then Serbia took full control of the railway. Ticket prices began to be more affordable, and
the railroad became accessible to the common man as well.

In that time, trip from Belgrade to Nis lasted from 6 to 8 o'clock, depending on the circumstances
on the road. The maximum allowed speed of locomotives was 55 kilometers per hour. [5]

After the First World War, a commission was formed with the task of adapting the old roads, in
direction “north-south" to the needs of the newly formed state, this time in the direction from
east to west.

Also, there were some improvements in terms of strengthening existing railways, an increase in
the maximum permitted speed, axle pressure on the railways, the purchase of new vehicles, the
first attempts to standardize vehicles...[7]

The second turning point for development of railway in Serbia was the second half of the 20th
century, when the Yugoslav railways were modernized and electrified. In that period - from 1952

4
to 1976, the Belgrade-Bar railway was built, in the length of 476 kilometers, which finally
realized the almost century-old idea of connecting the capital of Serbia and the Adriatic Sea.

In the middle of the thirties of the last century, the Yugoslav state railways also had an unusual
steam locomotive, which was called "Flying Belgrade" due to its high speed. It was produced in
Berlin, but domestic experts changed its original appearance and improved the aerodynamics. On
the first, test run in October 1937, on the route from Belgrade to Zagreb, this locomotive
achieved an average speed of 122, and on some sections it went an incredible 146 kilometers per
hour. [7]

The great progress of railways in Yugoslavia stopped because of many wars and political
troubles. In the beginning of the 1990s and the appearance of war on the territory of the former
republics of SFR Yugoslavia, the railway administrations of the republics began to disintegrate
and separate from the Union of Yugoslav Railways.

Later, during the period of aggression of NATO forces on Yugoslavia, a significant part of the
railway and facilities on the Serbian railway network was destroyed or disabled. Development
and modernization that began in the early 1990s was abruptly slowed and halted during this
period.

Recostruction and modernizination

Competitiveness of the economy and trade is deeply connected with the effectiveness of the
transport system as a whole and with the efficiency of transport services provided. Republic of
Serbia has in the previous period invested and continues to do so, a lot of effort and funds in the
railway infrastructure projects.

When it comes to the modernization of the railway in Serbia, the officials of the Government of
Serbia and the relevant Ministry emphasize the projects with China and Russia.

Serbia is carrying out the modernization of its railways by using numerous credit borrowings
from these two countries. According to the budget plan for 2020, loans from Russia for railway
investments are projected at 1.73 billion euros. [4]

5
EU investments

In the last 11 years, the European Union (EU) has so far financed various projects in Serbia
within the modernization of the railway with more than 143 million euros in grants.

The EU is involved in financing the modernization of five key railway sections in Serbia that are
part of Pan-European Corridor 10. EU investments include preparation of project-technical
documentation needed to start work and providing grants (EU grants) for co-financing. In
addition, loans from the European Investment Bank (EIB) and the European Bank for
Reconstruction and Development (EBRD) are also available to Serbia, on favorable terms. [3]

The European Investment Bank, as an EU bank and a non-profit organization, provides the most
favorable loans to Serbia, without mandatory fees, without management fees or without any
other fees.

Reforms in Serbian rail sector

Setting up a proper transport system requires implementation of policy measures which should
go hand in hand with modernization of transport infrastructure. Effects of institutional reforms
are summarised as follows [1]:

- Restructuring of the public enterprises working in the transport sector and introduction of
result-oriented management;
- Introduction of railway infrastructure maintenance on the basis of the track condition
analyses;
- Market opening;
- Simplification of the border crossing procedures aiming at reduction of travelling time;
- Implementation of the measures, which would improve intermodality features of Serbian
transport system.

Main objectives in future for public rail infrastructure in Republic of Serbia are:

6
 - Elimination of slow runs and "bottlenecks" and reconstruction of existing rail lines with
the aim of returning to the projected level
- Electrification of the Corridor 10 and some main and regional lines.
- Rebuilding regional and local railway line using materials obtained by reconstruction of
main lines
- The modernized double track electrified line along the whole length of Corridor 10 and
10b through Serbia in accordance with the required European standards of safety and
interoperability
- Design speed of 160 km/h respectively 200 km/h on Corridor 10 on the sections where it
is economically justified
- Improve the efficiency of the main nodes (Belgrade, Niš, Novi Sad), in order to increase
their capacity
- Developed intermodal transport with intermodal terminals in key locations
- Increased safety and security of the railway system
- Making railway lines as a part of Rail Freight Corridors network (RFC 10 Alpine-
Western Balkan)

COMPLETED RAILWAY PROJECTS

In total about 215 km have been reconstructed and modernized on Corridor 10 since 2015 and
about 429 million euros invested. [8]

Section Gilje-Paraćin-Ćuprija(10,5 km) was provided by loan from European Investment Bank
(EIB)

Russian Loan of 177,8 mil. Dollars provided [1]:

1. Railway line Pancevački most-Pančevo (14,9 km)

2. Three North sections on Corridor 10 (65,8 km)
3. Three South sections on Corridor 10 (46,5 km)
4. Section Resnik-Valjevo (77,6 km)
5. Construction of a bridge over the Danube in Novi Sad (Žeželj Bridge)

ONGOING RAILWAY PROJECTS

7
Besides the 215 km of completed railway lines, works are currently being carried out on 82 km
in the value of over 540 million euros.[1]

Works are currently being performed on:

• Section Rakovica-Resnik (7,5 km)

• Section Stara Pazova-Novi Sad (40,4 km)

• Section Beograd Centar-Stara Pazova (34,5 km)

PLANNED RAILWAY PROJECTS

Projects on Corridor 10 are expected to start in the near future on about 700 km of railway lines
in the total estimated value of 2,76 billion euros

Projects with secured funds [1]:

• Section Novi Sad – Subotica – SB with Hungary, length 107.4 km - preparation of project
documentation are in progress. Signed a contract with a consortium of CRIC -CCCC, value of
investment is 1,03 billion euros.

• Modernization of Railway Line Niš - Dimitrovgrad - Border with Bulgaria, 108 km long (86
km Sićevo State border + 22 km railway bypass around the city of Niš). This Project will be
realized through the following four components: Component 1: civil works and track,
preparatory works for electrification and signalling for section Sićevo - Staničenje -
Dimitrovgrad, Component 2: construction of a single track bypass around City of Niš for
passenger and freight transport, Component 3: electrification of railway line and equipping with
signaling and safety (SS) and telephone and telecommunications (TT) devices from Nis to
Dimitrovgrad; Component 4: engineering design services, supervision of the works performed by
the third persons and support to activities related to the Project. The total price of the
modernization and reconstruction project on the railway line Niš – Dimitrovgrad is 268.28
million euros. Funds required for investments are provided from three sources of financing:
EIB+WBIF+Budget RS

8
• Reconstruction of Niš – Brestovac railway line, 23 km long, estimated investment of 62.7
million euros. Funding source is IPA (Instrument for Pre-Accession Assistance fond)

• Construction of the new road-rail intermodal terminal in the vicinity of Belgrade is planned.
Preliminary design, Feasibility study and Environmental impact assessment are prepared through
IPA 2008 national programme. Tender procedure is ongoing. Funding source is IPA fond.

Projects without means of financing are [1]:

• Construction of the Belgrade Center station – Phase 2, estimated investment €47 mill

• Modernization of the line Belgrade – Subotica – State Border, section Star Pazova – Novi Sad
Phase III (electrotechnical infrastructure) – estimated investment €98.8 mill. Potential funding
source export credit of the Government of Russian Federation

• Reconstruction of the line (Belgrade) Resnik - Vrbnica - bored with Montenegro, section
Valjevo – Vrbnica, 209 km long, estimated investment of €478.2 mill. Potential funding source
export credit of the Government of Russian Federation

• Modernization of the line Belgrade – Niš section Velika Plana – Nis - estimated investment,
110,3 km long, estimated investment of € 560 mil

• Construction of the freight by-pass railway line Beli Potok – Vinča – Pančevo, 29 km long,
estimated investment of €150 mill (rail part of project)

• Reconstruction and modernization of the existing track and the construction of a second track
on the section Stalać – Đunis, 19 km long, estimated investment of €150 mill

The implementation schedule of planned projects will be in accordance with available funds

9
Conclusion

Connected transport in region can generate economic growth and jobs. It helps attracting
investments in the Western Balkans and contribute to good relations with neighboring countries
and the prosperity of the region. Connectivity is not only about building infrastructure objects, it
is also about proper maintenace in order to reduce costs and increase return of investment.

Republic of Serbia has in the previous period invested and continues to do so, a lot of effort
andfunds in the railway infrastructure projects. Some of the projects are realized, some of them
are planned for the future.

Certainly, the Serbian Government has recognized the need to invest in railways so it is justified
to expect a significant increase in the quality of railway traffic in Serbia, in the coming years.

10
Literature

1. Jeremić, M. (2019), "Infrastructure of Serbian Railways" JSC Republic of Serbia

2. Železnice Srbije a.d., Istorija srpskih železnica, retrieved from:
http://www.zeleznicesrbije.com/istorijat/
3. Božić, K., S., (2020), Koliko i kako EU ulaže u modernizaciju železnica Srbije , Radio
slobodna Evropa
4. Železnice Srbije a.d., Modernizacija Srpske železnice, retrieved from:
http://www.zeleznicesrbije.com/modernizacija-zeleznicke-infrastrukture-u-srbiji-
pozitivno-ocenjena/
5. Aleksić, P., Lj., (2016), Izgradnja železnica (1870–1914), Užice
6. Samardžić, M., (2018), Poseta barona Herdera Srbiji i prvi plan o izgradnji železnice,
Filozofski fakultet, Novi Sad, retrieved from:
https://www.academia.edu/3055799/Poseta_barona_Herdera_Srbiji_i_prvi_plan_o_izgra
dnji_%C5%BEeleznice
7. Mitrović, N., (2020), Srbija, istorija i železnica, BBC, retrieved from:
https://www.bbc.com/serbian/lat/svet-54158621
8. Radaković, L., Current status of railway system in Republic of Serbia and policies for
better transport connectivity, Ministry of construction, transport and infrastructure,
retrieved from:
https://unece.org/fileadmin/DAM/trans/doc/2019/TEM/15_Oct_2019_S2__Lazar_Radak
ovic.pdf
9. Istorija srpskih železnica retrieved from:
https://sr.wikipedia.org/wiki/Историја_српских_железница

11