site.btaTransport Minister: Competition in Rail Transport Will Improve Service Quality

Introducing competition in passenger rail transport will lead to better service, Deputy Prime Minister and Minister of Transport and Communications Grozdan Karadjov said Tuesday, during a public discussion on the upcoming tender procedure for passenger rail services.

"The State will launch a non-discriminatory tender procedure allowing several licensed European or Bulgarian rail passenger operators to compete on the Bulgarian market. They will also be able to develop new lines, destinations, and routes on a purely commercial basis," Karadjov said.

He expressed confidence that this move will result in improved service for passengers and the much-needed renewal of the rolling stock, which he described as being in a "deplorable state."

The discussion brought together representatives of trade unions, Parliament, academia, rail operators, NGOs, experts, and other stakeholders. The event focused on the future development of Bulgaria’s passenger rail sector.

Karadjov recalled that EU rules allowing competition in rail transport have been in place since 2009, and Bulgaria’s own legislation has permitted it since 2019. "So far, we’ve issued three licenses to companies wishing to enter the market, but none have dared to start operations. That’s why we committed, under the Recovery and Resilience Plan, to initiate this tender, including the division of services into separate lots to encourage competition," he said.

The lot-based approach will be regional and has been coordinated with the European Commission, Karadjov noted. Initially, one operator per region will receive a subsidy to provide the same services currently handled by the state-owned operator, ideally at a higher quality. In time, operators will be expected to expand services at their own commercial risk, and competition will be open to all licensed companies.

“In the first stage, it may seem like three smaller monopolies, but over the coming years, this will lead to genuine competition and improved services for citizens,” Karadjov said.

The procedure to introduce competitive operators will begin by the end of July, when the tender will be officially announced. Interested bidders will have three months to prepare offers, with the submission deadline set for October 30. Contracts are expected to be awarded by the end of December. 

Operators will then have 11 months to mobilize rolling stock, staff, and finances, with the new services set to begin on December 13, 2026, alongside the current state operator.

Karadjov emphasized that strict penalties, including license revocation and the appointment of a replacement operator, will apply in cases of non-compliance.

He also reassured the public that fares will remain unchanged and that no rail assets will be transferred into private ownership, they will remain state property.

Quality inspections of passenger rail services will continue, Karadjov added.

On June 2, the Ministry of Transport published for public consultation a draft of the terms and conditions for awarding public transport services by rail. Prior to the publication of the draft, Karadjov committed to a discussion of the details of the upcoming procedure with all stakeholders before launching the process. 

On Monday, the Confederation of Independent Trade Unions in Bulgaria (CITUB) opposed the planned division of the country’s rail passenger service into three separate lots. At a news conference, CITUB President Plamen Dimitrov said: “We are against the division into lots. There is no justification for it - no requirement from the European Commission, nor any obligation under the Recovery and Resilience Plan.” He argued that the Bulgarian rail market is too small to warrant such a division, and that the service could effectively be outsourced to a single operator. Dimitrov said splitting the service into three parts will not improve performance. Instead, it could create further issues by dividing the available state subsidy, leading to inefficiencies and additional challenges.