Moldova will receive €53 million from the EU for the repair of the Velchinets-Cainari railway section

This section, in particular, ensures the export, import and transit of goods from Romania and Ukraine

The European Union and the European Investment Bank (EIB) will provide Moldova with €53 million to repair the Velchinets-Ocnita-Balti Beltsi-Ungheni-Chisinau-Cainari rail corridor. This is reported by the CFTS with reference to the Ministry of Infrastructure and Regional Development of Moldova.

«128 km of railroad tracks will be repaired, which are in poor condition, pose risks to rail traffic and may disrupt the functioning of regional logistics chains,» the department notes.

This section connects the industrial environment located in the north and center of Moldova, the free economic zones in Merculesti, Balti, Ungheni, and Chisinau, and ensures the export, import, and transit of goods from Romania and Ukraine.

In addition, the railway corridor connects to the Keinar-Cimislia-Basarabeasca-Durgiulesti section, which is used, among other things, for the logistics of goods transported to the ports of the Danube and Black Sea.

The allocated amount includes €41.2 million in the form of a 30-year loan on preferential terms from the EIB and a €12 million grant from the European Union.

«The project will bring a number of benefits in terms of reducing the duration of rail transportation, increasing the market share of rail transportation of heavy and oversized cargo, reducing the burden on road infrastructure, reducing road wear and tear, and improving road safety,» summarizes the Ministry of Infrastructure of Moldova.

As GMK Center reported earlier, the Verkhovna Rada ratified amendments to the Agreement between the governments of Ukraine and Moldova on railway transport, which simplifies the transfer of freight cars between the countries. The adopted amendments will allow transit transportation on the Etulia-Reni Giurgiulesti section without a 3-day stop in Reni.

Ukrainian Railways (UZ) will also provide the service transportation of goods by transit on the territory of Moldova in all connections. UZ’s Transportation Logistics Center branch and the Moldovan railroad operator Calea Ferată din Moldova (CFM) signed the agreement. This step will strengthen UZ’s export capabilities and increase the volume of transportation of strategically important export cargo.