INFORMATION FOR ALBANIAN RAILWAYS

The Albanian Railways S.A.

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INFORMATION FOR HSH The Albanian Railways S.A. operates under the status of a joint-

stock company with 100% state capital.

The structure of Albanian Railways S.A. consists of 4 Business

UNITS administratively and financially separated in accordance to

EU directives and which are:

a. Freight Rail Transport Business UNIT.

b.Passengers Rail Transport Business UNIT.

c.Infrastructure Management Business UNIT.

d.Rolling stock Maintenance Business UNIT (locomotives and

wagons).

The main income of Albanian Railway S.A. accrued from freight

and passengers operations and activity.

The passengers transport rail service operated by trains gets

subsidy from the State Budget. 2

Geographical position Latitude/Longitude 41 grade 19‘ N/19 grade 27’ E

Burgas

Varna

Bar

Skopje

Pristine

Belgrade

Sofia

Thessaloniki

Pan European Corridor VIII

Geographical position

The Albanian railway network has in its use

420 km single main railway line with

standard gauge of 1435 mm and

approximately 100 km secondary lines in

stations and industrial branches.

The Albanian railway network is a radial

system that extends starting from Durres

city, where the biggest port of Albania is

located and it goeas further into 3

directions:

- In northern Albania :

In Shkodra city and further on at Bajza

railway border station, which is the only

station that connects the Albanian railway

network with the European railway

network.

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- In Southern Albania:

In Vlora city where Vlora

maritime harbour is ranked the

second as per its importance. In

the coast port of Vlora are

constructed the hydrocarbons

deposits of Albania named

Petrolifera.

In southern Albania it is

located Ballshi town,

which is too important

as concern the extraction

and processing industries

of hydrocarbons in Albania.

- In Eastern Albania:

In Pogradeci city nearby which it is located

Lin station that is a rail connecting option of

the Albanian railway network with the

Macedonian railway network. The

connection of Northern railway network of

Albania through Bajza rail border station

with Montenegrin railway network through

Podgorica rail station of Montenegro, and

further on with Belgrade rail station of

Serbia, has provided the connection of the

Albanian railway network with the

European railway network of 10th Corridor

with its center in Belgrade. The Albanian

railway network is built on single track. In

no railway segment the trains traction is

being performed by electrical locomotives

but with diesel locomotives with oil. 6

A. Railway infrastructure situation.

1.Superstructure (the railway line)

The speed of rail vehicles mobility does not exceeded the limit of

speed 55 km per hour for trains of passengers and 45 km per hour

per trains of goods.

The Albanian railway network since its very first construction

never went under a total reconstruction of its superstructure.

In Albanian Railways miss the machineries and modern equipment

for maintenance or railway infrastructure rehabilitation.

Signalization in the Albanian railway network

(Interlocking systems)

In the 1980s in about 30% of the Albanian railway network it was

implemented the signaling-liaison and command-control system

for trains’ mobility.

This system is actually entirely outdated.

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B. Traction and transport vehicles Traction of railway vehicles for freight and passengers

transport is being realised by locomotives of electric diesel

type with oil, Chech production of 1980s.

In the Albanian railways Strategy one of its priorities is

introduction of technology for traction of passengers trains

with DMU Diesel mobility Unit, aiming at optimization of

the power of traction locomotive with the number and

weight of passengers wagons, which shall bring the

considerated improvement at technical and financial

indicators in passengers transport.

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C.Freight Transport

Economic indicators.

The inventory of wagons of Freight business unit does not fulfill the terms and requirements of Technical standards of international transport so these wagons are dedicated only to freight domestic transport which sets us limits in case of any demand is presented to export by rail, we shall be obliged to use foreign forwarders to perform that transport.

In such conditions it is necessary that the Albanian Railways is put under a project of insuring the freight transport wagons that are used and renewed in terms of international transport.

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D. Passengers Transport.

The passengers transport is spread all over main cities of ALbania in the coastal part and South-eastern part which is a mountainous railway at length of 40 km.

The passengers trains are quite slow, these passengers wagons have the comfort of a quite low quality as well as they have not been adequate for the recent market of public transport because they are too old-aged.

The time of travelling by trains of passengers between the cities is quite high and in such conditions the citizens prefer the road transport toward the rail transport even that the cost of ticket of transport by train is approx. 50% lower that with automotive vehicles.

Our priority for performance change in commodity of passengers transport services is first and foremost the introduction of DMUs into use.

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Vision of Albania railways development In the Albanian part the railway trucks

which present a economic interest as

well as directly impact the substantial

performance change of the Albanian

railway transport are:

1.Durres - Elbasan 75 km long with

11 stations

2.Vora – Shkodra – Hani Hotit border

at length of 120.2 km and 12 stations.

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Vision of Albania railways development

In these railway tracks is getting

performed the entire international and

domestic traffic by rail.

Restructuring of entire Albanian rail

network has got a cost amounted at

EUR 900 million. In that amount there

is included the investments for

superstructure, rail stations, civil

structures, art works, bridges and

tunnels, the construction of a signaling

and control system for trains’ mobility.

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In actual priorities in Albanian Railways is construction of Tirana-Rinas airport and reconstruction of the line Durres-Tirana. Their cost is approximately EUR 65 million which is a fund by EBRD.

Recently the Western Balkan gets highly involved in many studies and European strategic projects aiming at construction of a strategic pan-European network of transport between states from which it consists of as well as from the Balkan states themselves with Europe and Asia.

The vision of development and modernization of Albania railway network is an integral part of the vision of Albania for establishing a multimodal transport system and in particular its infrastructure, in the view of Balkan region and further on the trans-European EU network.

-The Albanian railways has already identified the railway trunks which are

effective for railway market both internally and externally and it results

that these railway trunks are those which belong to the Strategy of

development of multimodal strategic networks for the Western Balkan that

connect Albania with border countries of the Western Balkan as well as

these countries of Balkan with Central Europe countries.

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The priority projects are construction of the 8th pan-European

Corridor Italy-Albania-FYROM-Bulgaria and the rehabilitation of

connecting the railways of Northern Albania (station of Vora to

Bajza station) with the Montenegrin Railways and railway linking

from Kosovo.

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Such a topic should be realized at implementation into it, the

regional projects like Corridor VIII, Corridor X and railway

connection with Kosovo that is the most favorable alternative for

linking the Albanian Railways with Central Europe through the

Corridor X with its centre in Belgrade.

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For implementation of these projects, the Albanian Railways

gets at its disposal the project being funded by EU in the

view of CARDS program (WBIF) of the EU to Western

Balkan.

The study is performed in November 2009 and it is titled

“The Albanian railway network-Project of infrastructure and

signalization improvement”

At the end of this project there is determined the amounts

and the length of the missing lines that connects Albania to

FYROM, Bulgaria, Turkey and Greece.

In the end we welcome options for investments from

International Financial Institutions IFIs as all other

investitors.

THANK YOU!

------------------------------HSH S.A.----------------------------

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