Countdown for the “homogenization” in the Railway – What it means for OSE, ERGOSE & GAIAOSE

The Ministry of Infrastructure and Transport has initiated a countdown for the “homogenization” of the Greek Railway, which currently presents an image resembling pieces of a scattered puzzle.

The Ministry’s goal is a holistic approach to both the functioning and overall existence of the means of transportation. Events such as the accident in Tempi and the floods caused by Daniel seem to have accelerated the developments.

What is certain now is that we are heading towards a restructuring of the key companies that make up the railway system in the country, namely OSE (Hellenic Railways Organization), ERGOSE, and GAIAOSE. According to senior officials at the Ministry, as reported on ypodomes.com, announcements will be made this year, and it is estimated that legislative initiatives as well as the overall implementation of the new structure for the railway companies will be achieved within a period of 1.5-2 years, with the deadline set for the end of 2025.

This is because any changes will be incorporated into the government’s initiatives regarding the responsibilities of the railway, which fall within the framework of the Recovery Fund. Therefore, our timeline leads us up to that point. As the same sources note, the impending changes seem to satisfy the institutions that had, in any case, raised the issue of the railway in Greece.

The ministry aims to resolve the complex issue of fragmentation that exists today by addressing the separate entities managing different aspects of the railway system. Currently, there is one company overseeing the network and handling network-related projects (OSE), another responsible for new projects (ERGOSE), and yet another managing real estate assets (GAIAOSE).

Currently, the strategy for homogenization is not known, specifically whether there will be a new corporate entity, such as the creation of a holding company where member companies are placed under it, similar to the structure seen in corporate groups. Alternatively, it remains uncertain if there will be some other substantive change that will bring the three railway companies much closer together.

Νew organizational structure

What will be achieved through the “homogenization” of the Greek Railway is for the Ministry of Infrastructure and Transport (YPODOMΕ) to now have a unified interlocutor from the responsible companies, thereby delineating more clearly the policies and strategies for the transportation system, operational developments, the need for projects, and the management of the network and its assets.

Based on this, as reported by the same sources on ypodomes.com, there will be a new organizational chart with clearly defined responsibilities and authorities. This change, as mentioned earlier, will require legislative initiatives expected to be taken in 2024 and completed by 2025.

Of great importance is, of course, the extensive project program being carried out by ERGOSE, as well as by OSE, with flagship projects such as the upgrade of the Athens station, electrification projects in Northern Peloponnese and Thessaly, and the new double track line extending to Rio.

Additionally, there are new projects for the Athens Suburban Railway (Proastiakos), restoration projects, the project program with competitive dialogue, and the upgrade of the SKA-Oini area, among others.

Throughout this period, it is crucial that any changes do not impact the timelines and the speed of fund absorption, as all these projects are either being executed or will be executed with funding from European programs such as ESPA 2021-2027 and CEF II.

Is the year 2025 a milestone?

The convergence will also bring, upon the completion of the homogenization and the estimated completion of the restoration projects in the railway, the competition for which is currently in the preparation phase.

As has been announced, at this time, the tender documents are being prepared so that the competition for the approximately 185 million euros will be launched in early 2024.

The goal is to complete the restoration projects in their entirety by the end of 2025. The projects should bear the hallmark of resilience, ensuring much greater durability against extreme weather phenomena.

The aim is, of course, that by 2026, a new chapter for the railway will have been written, an endeavor that the railway, unlike highways, has struggled to achieve: to expand and establish itself in the consciousness of passengers and businesses as a competitive, safe, and modern means of transportation across the spectrum.

For more details and the complete article in Greek, click here