Transforming Greek railway: 3 state companies merge into one

The process for the next phase in the railway sector has begun, as the Ministry of Infrastructure and Transport has approved the launch of a tender for a Technical Consultant.

The Technical Consultant will play a significant role in the new company, “Hellenic Railways,” and the management consultant will oversee critical organizational and operational areas for at least three years. The contract’s budget amounts to €4.32 million, including VAT.

The purpose of the contract, as stated in the relevant decision, is to support the new company “Hellenic Railways S.A.” in developing all the necessary systems and tools related to its effective organization and operation, strengthening its workforce, and managing change efficiently. This will enable the company to function effectively and fulfill its role and obligations as a Railway Infrastructure Manager of a European Union member state.

In this direction, a company with proven technical and administrative experience in the management and operation of similar entities will be sought, with the aim of contributing expertise and specialized senior executives. The company will assume daily responsibility for the overall operational activities of the new organization, as well as specific responsibility for critical operational sectors, for a period of at least three years.

“Hellenic Railways S.A.” will be the new public company that will take charge of the future of the Greek railway system in the coming period. The goal is for “Hellenic Railways S.A.” to operate as the national railway infrastructure manager, following European standards. This new entity will incorporate OSE as its main body, ERGOSE, and the rolling stock and active stations of GAIASOSE.

In addition to the projects, the new company will also include upgrades to stations related to their railway components (platforms, tracks, systems, connections). It should be clarified that GAIASOSE will remain a member of the Hellenic Corporation of Assets and Participations (HCAP) and will be responsible for managing railway assets, as well as the future development of stations through tenders, following the model of major European cities.

The profile of the new company

The new company is expected to be staffed with an additional 600 employees, beyond those from the three existing companies, to fulfill its new role. The first wave of new hires will join in 2024. The Ministry of Infrastructure and Transport’s ambition, as previously stated, is to “develop a modern, fast, comfortable, and safe railway network, fully interoperable with its European counterparts.”

With the new company, the major goal is to address the chronic issues of the railway sector in Greece through a complete reorganization and unification of all companies. The new company will assume exclusive responsibility for the design, development, maintenance, and safe management of the country’s railway infrastructure and rolling stock.

In order for the new entity to be established and operate, legislative approval is expected in the near future, once all the details of such a complex plan are clarified. Its responsibilities will fully encompass those of the current OSE, ERGOSE, and GAIASOSE, with appropriate enhancements.

The new company will be assisted by a firm acting as a Technical Consultant (to be selected through a tender process, modeled after Bechtel, which played a similar role in the Greek Metro in the past). This firm will be tasked with transferring modern railway expertise. It will oversee all operational activities and assume specific responsibility for critical operational sectors for a period of at least three years.

The new directions:

In “Hellenic Railways S.A.,” as mentioned earlier, OSE, ERGOSE, and the rolling stock and active stations departments of GAIASOSE will be integrated. The new company, which will be overseen by the Ministry of Infrastructure and Transport, will have a Board of Directors and will consist of four General Directorates:

• GENERAL DIRECTORATE OF PLANNING, DEVELOPMENT & INTEROPERABILITY: This directorate will be responsible for the development and design of the network based on the Strategic Railway Development Plan. Additionally, it will draft and implement all Standard Technical Specifications (STS), which will be approved by an independent entity.
• GENERAL DIRECTORATE OF NEW PROJECTS: This directorate will be responsible for the overall implementation of new integrated projects (as approved by the aforementioned Directorate) and the maintenance of infrastructure.
• GENERAL DIRECTORATE OF OPERATIONS & MAINTENANCE: This directorate will be responsible for all financial processes related to the financial matters of the Organization (including contracts with third parties).
• GENERAL DIRECTORATE OF INFORMATION TECHNOLOGY & ADMINISTRATION: This directorate will be responsible for comprehensive computerization and management of IT systems across all services, personnel administration, and human resource management.

The projects of the new company are being redesigned, with investments anticipated to reach approximately €11.7 billion over a 20-year period. Priority will be given to restoration projects in Central Greece and projects funded by the NSRF (National Strategic Reference Framework) and CEF II (Connecting Europe Facility II).

These include: the final restoration projects in Thessaly with €180 million, the signaling between Thessaloniki and Eidomeni, the new line from Nea Karvali to Toxotes Xanthi, the Western Attica Suburban Railway, Rio-Patras, SKA-Oinoi, Thessaloniki-Promahonas, and Alexandroupolis-Ormenio.

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