Czech Government Divides Ceske Drahy

The Czech government Monday approved separation of cargo transport from the national rail operator Ceske drahy into independent unit CD Cargo as of December 1, Prime Minister Mirek Topolanek has told a news conference.

CD Cargo will have a share capital of Kc8.8bn. Some 13,000 of CD's current 57,000 staff will be transferred to the new company. The government hopes the change will make the financing of railway transport more transparent. It particularly expects the cross-financing of loss-making passenger transport from the profits of cargo transport to end. This cross-financing involved Kc600m annually.


Source:Seanews