Analysis of SŽ Freight Transport for Slovenia

Railway transport is an important transport sector in the transport system of every country and is fairly well organised from the perspective of transport quality. Railway transport can also be considered a relatively safe mode of transport and, for larger quantities of goods and longer distances, also fast and very economical. The final section presents the concluding thoughts and findings of this diploma thesis. The way out of the current difficult economic situation of the railway and its entry into the liberalised market of railway services are challenges for the management of Slovenian Railways.

Problem

Railway transport is an important transport sector in the transport system of every country and is fairly well organised from the perspective of transport quality. Railway transport can also be considered a relatively safe mode of transport and, for larger quantities of goods and longer distances, also fast and very economical. A positive factor in the quality of railway transport is also its high reliability, which is ensured by the mode of operation and a relatively dense network.

The diploma thesis is divided into several self-contained units. The first section presents the definition of the problem, the purpose and objective of the work, and the anticipated research methods. The second section presents the company Slovenske železnice, d. o. o.

The third and fourth sections present the basic characteristics of the Slovenian economy and an overview of the transport policy of Slovenia and the EU. The fifth section deals with the analysis of SŽ freight transport in the period 2004–2007. The sixth section describes Luka Koper and Intereuropa as strategic partners of SŽ, d. o. o.

The seventh section presents the objectives of Slovenia and the EU for increasing railway transport.

Results

The final section presents the concluding thoughts and findings of this diploma thesis. The way out of the current difficult economic situation of the railway and its entry into the liberalised market of railway services are challenges for the management of Slovenian Railways. We must be aware that it is necessary to transform Slovenian Railways.

With such an important project as the transformation of a company that, among other things, also provides a public service, it is necessary to be aware that these are long-term changes. Achieving results is not possible in the short term. Railway transport was heavily regulated in the past, both by the state and by railway associations.

There was almost no competition between carriers in the railway market, as railways were mostly state-owned. Railway systems were rigid and unable to adapt to market needs, so the quantity of freight transported by rail began to decline. The quantity of freight transported by road, however, has increased greatly in recent decades.

In the European Union and elsewhere, it has been recognised that major changes are needed in the railway sector to return to the railways the freight they once transported. In addition, this would relieve roads that have become saturated with freight. The measures of the European Union are primarily aimed at providing an appropriate legal framework that would liberalise railway transport and establish competitive conditions in the railway market.

In addition, they are trying, together with railway organisations, to ensure certain standards that would facilitate transport services in the European Union and neighbouring countries. The EU cooperates extensively with UIC to appropriately coordinate the wishes of railway carriers and provide the most appropriate legal framework. A special chapter is devoted to the analysis of freight transport on Slovenian Railways and attempts to show the relationships between transported freight within other transport sectors.

With all the data presented in the diploma thesis, we find that Slovenian Railways (in the era of globalisation) as a carrier should place even greater emphasis on container transport in all types of traffic, as this is where we are seeing the greatest growth. With the modernisation of infrastructure on Slovenian Railways, we can expect good business results in all transport segments in the future. Her opinion is that Slovenian Railways allocate absolutely insufficient funds for modernisation and innovations, and also pay too little attention to market policy, as freight transport is the most important segment on the revenue side – the bulk of transport revenues.

Success and the future in joining the market of European transport flows depend primarily on the 'intellectual capital' available to Slovenian Railways. What to write in the concluding thoughts and her critical view of the task she has prepared? It is difficult to summarise in at most three pages the conclusion about the operations of freight transport in the years 2004–2007, as she has been employed in the freight transport sector for 28 years and has experienced many changes and reorganisations during this time.

I dare to assert that freight transport is the driving force of Slovenian Railways, that it is a branch of transport that does not generate losses, although the opposite is often heard. Through the eyes of an employee, I look at 'our' Slovenian Railways with great optimism for the future, but also with suppressed fear given the general state of the economy. Are Slovenian Railways strong enough to resist sale, to manage to maintain our position and even upgrade it, increase it?

I do not know whether we will succeed on an independent path or perhaps with the help of foreign 'owners' – carriers. With her diploma thesis, she wanted to at least partially present the work and scope of freight transport in the period from Slovenia's entry into the EU until 2007, for which not all data are yet available. I see the foundation of the market and business success of Slovenian Railways in offering users quality services supported by ISO 9001 quality standards, whilst at the same time, with environmental management standards (ISO 14000), ensuring that future generations will also live in a green Slovenia.