Czech Railways updates its fleet

Old, rust-ridden, graffiti-covered trains will start disappearing from Czech tracks in the upcoming months as Czech Railways (ČD) implements the most sweeping train renewal plan in the state-owned company's history. Such a widespread - and expensive - project might seem foolhardy during a recession, but the plan's supporters say renewing the train fleet will lower operating costs and provide economic stimulus.

Czech Railways has come to an agreement with the state to begin destroying or renovating train engines and passenger cars older than 40 years, which accounts for nearly 50 percent of ČD's fleet of 4,000 trains. The company plans to invest up to 8 billion Kč ($454.5 million) per year over the next seven years to bring the average age of its trains down from 30 to 15 years. ČD spokesman Petr Pošta explained that the fleet was allowed to age significantly when continuous train renewal - a European norm - was abandoned in the Czech Republic more than a decade ago. ČD's recent efforts to update its cars signals a renewed commitment to modernizing rail transport and should continue in the future, he said.

"Old trains don't respond to the requirements of our customers and the standards of traveling," he said. "When updating older vehicles, we focus on technical and safety parameters, as well."

In an effort to help ČD secure financing for the renewal project - a process more difficult this year because of the government's spending cuts - the government signed a 10-year contract with the company, giving ČD almost exclusive control of Czech trains, according to Karel Hanzelka, a spokesman for the Transportation Ministry. The longer contract means banks will be more amenable to providing loans to the railway company, he said.

"Formerly, the contract was for only one year, so banks were not that comfortable with giving loans for updating [trains]," he said.

ČD plans to raise 10 billion Kč for train renewal by 2015. Besides bank loans, the company expects to receive 4 billion Kč from the EU. The company also hopes to generate more than it needs for the initial span of the project itself, so that train renewal might take place on a continual basis. Funds may be hard to come by during a recession, but the renewal project cannot be postponed any longer, Pošta said.

"New trains will bring new technology, more efficiency, reduction of costs and increased competitiveness," he said. "Moreover, vehicle updating acts as an anti-crisis measure because it stimulates industry and economics."

ČD has announced a spring 2010 tender to build the new trains. Several multinational corporations, including Škoda, Sadler, Siemens and Alstrom, are expected to bid on the project, which would ostensibly guarantee several years of production. Miroslav Novák, spokesman for Škoda Transport, which has 4,100 employees in the Czech Republic, called ČD "one of our key clients," saying, "Tenders related to our products, such as new trains locomotives or modernized vehicles, are interesting for us."

The renewal of ČD's trains should come as good news for the approximately 180 million passengers who ride the rails annually in the Czech Republic. According to Pošta, the average Czech takes 18 train journeys per year, making railways a far more popular mode of transport than in other countries in Central and Western Europe.

Stephan Delbos can be reached at
sdelbos@praguepost.com