Unfortunately, there is a general lack of urgency in many of these railways. THE railways of eastern Europe are facing a crisis. Throughout the region markets are contracting, operating costs are rising, and state treasuries are being called upon to make ever-greater subsidy payments to maintain services. The financial implications of these trends are particularly severe. As national economies gradually strengthen, railways are suffering the double blow of rising costs and the loss of market share to other modes.
Railways have a key role to play in supporting sustainable economic growth and development.
As countries complete the transition to market economies, an efficient railway will help minimise the economic costs of transport by limiting congestion and environmental degradation. However, in the absence of major changes, few eastern European railways appear capable of fulfilling such a role. Halcrow Rail recently completed the part of the study that analysed the competitiveness of the region's railways. Halcrow Rail led a consortium that included consultants Trademco, Greece, and SwedeRail, Sweden, and British lawyers Nabarro Nathansan. A paradox of these railways is that as economic growth gathers pace, rail will come under increasing financial pressure.