Employees of the Railways of the Federation of Bosnia and Herzegovina issued a letter of concern due to, as they claim, the inefficient and non-transparent work of the Administration, which in one year brought the business to the brink of collapse.
While debts are piling up and losses exceed 30 million KM, workers are warning about failures in the collection of claims, neglect of security and ignoring professional services — with a request to the authorities to react urgently.
The railways of the Federation of Bosnia and Herzegovina are suffering losses of millions, with poor infrastructure, which worries the workers of this company, which is owned by the Federation of Bosnia and Herzegovina.
Millions of losses are mounting
One of the workers addressed the factor on behalf of the employees because, as he pointed out, they are worried about the long-term and obviously inefficient work of the Administration, which seriously threatens the business of the company, the public interest and the rights of workers.
In the letter, they say that a year has passed since the new Management in JP Željeznica FBiH headed by the staff of Our Party and the announcements of the Minister of Transport and Communications of BiH Edin Forte that better days and transformation are coming for the railway, and the situation, as they point out, is getting worse.
– Despite the growth of costs and increasingly pronounced problems in management, the company’s income is constantly declining.
For the mentioned period, in addition to ending up with a loss of more than 30 million KM, we also witness numerous irregularities and omissions, among which we highlight: lack of transparency in decision-making, disregard for safety and traffic as well as the working conditions of employees, inadequate spending of funds intended for maintenance, development, as well as funds for the payment of arrears of contributions and – ignoring the suggestions and warnings of professional services.
Workers worried
Instead of finding new service users, investing in vehicles, safety and staff expertise, decisions are made that harm the system and employees – the letter states.
Koksara Lukavac stands out as an example, which has a total debt for transportation of more than eight million KM, and this year alone it has increased by an additional five million KM.
It is claimed that the Management did not use mechanisms in the form of promissory notes or other guarantees to collect the debt, but instead allowed the debt to increase further, the collection of which is now questionable when it is known that Koksara Lukavac filed for bankruptcy.
– Apart from requesting help from the Federal Ministry of Transport and Communications to increase funds from the budget and the proposal to consider the report of the World Bank regarding the restructuring and division of companies, nothing else was done, which is an example of pure negligence and abuse of office.
We believe that the public has the right to be informed about the situation in JP ŽFBiH, which operates with public funds and performs activities of importance to citizens and the economy.
Debts without collection
The employees expect the competent institutions to react urgently, to initiate inspection and audit supervisions to determine the incurred debt of Koksara, and to protect the interests of workers and companies – it is stated in the employee’s letter, which is accompanied by a written request from the Management to the Ministry of Transport and Communications in the FBiH Government to grant them additional 38,131,800 KM as soon as possible for the costs of investment in infrastructure, salaries and other things.
In the letter sent by the Administration to the relevant Ministry, it is noted that the outstanding obligations of the Government of FBiH towards the railway infrastructure for the period 2006-2024. year is 450,109,285 KM.
The letter also mentions the results of operations in the first six months of this year, and it is highlighted that the income was realized in the amount of 52,578,564 KM, and for the same period the total expenditure was 66,252,108 KM, which resulted in a loss in the amount of 13,673,544 KM.
In the attachment, the projection of the income statement until the end of the year is submitted, from which it is evident that a loss of 26,647,013 KM is expected.
In the letter sent by the Administration to the relevant Ministry, the problem with contracts is highlighted.
– Of the existing significant contracts, the contract on the transportation of coal for Elektroprivreda Srbije with ENNA Transport has not been fully realized. After the reconstruction of the railway at Komadinovo vrel and the establishment of regular railway traffic at the end of January of the current year, the quantities that were previously deposited in the Port of Ploče were transported. Of the total contracted 900,000 tons, 465,000 tons were transported (in 2024 and 2025), and the rest of 435,000 tons remained unrealized because the user found alternative routes for coal delivery.
The Administration of JP Željeznica of the Federation of Bosnia and Herzegovina replied to Faktor that this company is still feeling the effects of the floods that hit the country in October last year, when there was an interruption of railway traffic in the area of Jablanica.
– Thanks to the measures taken and the continuous work of the employees, the company’s operations have been stabilized, and liquidity is currently maintained.
However, challenges in the business environment and changes in strategic customers could affect the financial results in the coming period. The three key strategic partners of Željeznica FBiH JP Elektroprivreda BiH, Željezara and Koksara are facing significant business difficulties. Mines that are part of Elektroprivreda BiH record a decrease in coal production, Željezara is in the process of being taken over by another company, while bankruptcy proceedings have been initiated in Koksara.
These circumstances directly affect the volume of transport, given that the listed strategic partners make up a significant part of the transport capacity of the FBiH Railways – the Management for the Factor points out.
They say that, despite the aforementioned challenges, an increase in the volume of transport in internal traffic was recorded in the current year, which shows that the FBiH Railways are continuing their efforts to improve operational efficiency and contribute to the stability of the railway system in Bosnia and Herzegovina.
– FBiH Railways remains committed to providing quality services to its partners and users, as well as continuing to modernize the railway infrastructure and rolling stock, with the aim of strengthening competitiveness and long-term business sustainability.
In this regard, it is necessary to emphasize the need for the implementation of necessary reforms and the establishment of a new, systemic approach to the development and maintenance of the railway system in Bosnia and Herzegovina, in order to ensure its functionality, integration and long-term stability, in accordance with modern European standards – concludes the Management of JP Željeznica FBiH, reports Factor.
