{"id":19977,"date":"2026-11-13T12:36:13","date_gmt":"2026-11-13T12:36:13","guid":{"rendered":"https:\/\/rcsee.org\/?p=19977"},"modified":"2026-11-13T12:48:25","modified_gmt":"2026-11-13T12:48:25","slug":"north-macedonias-railways-losses-and-aging-tracks","status":"publish","type":"post","link":"https:\/\/rcsee.org\/en\/north-macedonias-railways-losses-and-aging-tracks\/","title":{"rendered":"North Macedonia\u2019s Railways: Losses and Aging Tracks"},"content":{"rendered":"\t\t
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A State Audit Office report highlights accumulated losses of MKD 4.72 billion, cost overruns on Corridor VIII projects and ageing railway infrastructure, with some sections operating at reduced speeds and others closed to traffic.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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North Macedonia\u2019s railway infrastructure faces significant financial and operational challenges, according to the State Audit Office\u2019s audit of the Public Enterprise for Railway Infrastructure \u2013 Railways of the Republic of North Macedonia (PE \u017dRSM Infrastructure Skopje) for 2024.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The enterprise recorded a loss of MKD 188.8 million in 2024, although this represented an improvement of MKD 486.1 million compared with the previous year. Its accumulated losses nevertheless reached MKD 4.72 billion, raising concerns about its capacity to maintain, rehabilitate and modernise the national railway network.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Corridor VIII projects affected by delays and cost overruns<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The audit identified shortcomings in the planning and implementation of major infrastructure projects on the eastern section of Railway Corridor VIII.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The contract for the Kumanovo\u2013Beljakovce section, signed in 2013, increased in value by 96% to \u20ac39.7 million, while the completion deadline was extended by eight years and three months. The main reasons included errors in project documentation, inadequate technical solutions and additional works.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Progress on the Beljakovce\u2013Kriva Palanka section has also been delayed. A \u20ac155 million construction contract was signed in July 2022, 18 years after construction had been halted. The completion deadline was subsequently extended to 23 October 2026.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Meanwhile, although international financial institutions approved loans totalling \u20ac191.4 million for railway infrastructure projects, 44% of the funds remained undisbursed at the end of 2024. The enterprise had paid \u20ac7.78 million in commitment fees on undisbursed loans, alongside \u20ac2.85 million in interest during 2024.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Ageing infrastructure limits railway performance<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The condition of the existing network remains another major concern. According to the audit, parts of railway corridors 10, 10d and 8 suffer from outdated and inadequately maintained infrastructure. Defects, deteriorated systems and damaged sleepers have forced trains to operate at reduced speeds, while traffic has been suspended on certain sections.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The report highlights that some parts of the railway network have not received significant investment for more than 40 years, affecting operational safety and network capacity. Substantial investment in rehabilitation and modernisation is therefore required.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The audit also identified weaknesses in asset management, inventory records and human resources. Only 718 of the 1,314 planned positions were filled, while 30% of employees did not meet the specific educational requirements for their positions.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Audit calls for corrective action<\/strong><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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The State Audit Office issued recommendations addressing the identified financial, operational and administrative shortcomings, calling for corrective measures by the enterprise and the relevant institutions.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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In response, PE \u017dRSM Infrastructure Skopje submitted information on measures taken to implement the recommendations in early November 2026. The supplementary notification included updates on the progress of construction works on both phases of the eastern section of Railway Corridor VIII, covering Kumanovo\u2013Beljakovce and Beljakovce\u2013Kriva Palanka, as well as other activities.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Despite the challenges identified, the ongoing Corridor VIII projects represent an important opportunity to improve North Macedonia’s railway connectivity and strengthen its position within regional transport networks. However, realising this potential will require more effective project preparation, stronger financial and administrative management, and sustained investment in the existing network.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Addressing these issues will be essential not only to complete the current infrastructure projects but also to ensure that the country’s railway system can operate safely, reliably and competitively in the long term.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

A State Audit Office report highlights accumulated losses of MKD 4.72 billion, cost overruns on Corridor VIII projects and ageing railway infrastructure, with some sections operating at reduced speeds and others closed to traffic. North Macedonia\u2019s railway infrastructure faces significant financial and operational challenges, according to the State Audit Office\u2019s audit of the Public Enterprise for Railway Infrastructure \u2013 Railways of the Republic of North Macedonia (PE \u017dRSM Infrastructure Skopje) for 2024. The enterprise recorded a loss of MKD 188.8 million in 2024, although this represented an improvement of MKD 486.1 million compared with the previous year. Its accumulated losses nevertheless reached MKD 4.72 billion, raising concerns about its capacity to maintain, rehabilitate and modernise the national railway network. Corridor VIII projects affected by delays and cost overruns The audit identified shortcomings in the planning and implementation of major infrastructure projects on the eastern section of Railway Corridor VIII. The contract for the Kumanovo\u2013Beljakovce section, signed in 2013, increased in value by 96% to \u20ac39.7 million, while the completion deadline was extended by eight years and three months. The main reasons included errors in project documentation, inadequate technical solutions and additional works. Progress on the Beljakovce\u2013Kriva Palanka section has also been delayed. A \u20ac155 million construction contract was signed in July 2022, 18 years after construction had been halted. The completion deadline was subsequently extended to 23 October 2026. Meanwhile, although international financial institutions approved loans totalling \u20ac191.4 million for railway infrastructure projects, 44% of the funds remained undisbursed at the end of 2024. The enterprise had paid \u20ac7.78 million in commitment fees on undisbursed loans, alongside \u20ac2.85 million in interest during 2024. Ageing infrastructure limits railway performance The condition of the existing network remains another major concern. According to the audit, parts of railway corridors 10, 10d and 8 suffer from outdated and inadequately maintained infrastructure. Defects, deteriorated systems and damaged sleepers have forced trains to operate at reduced speeds, while traffic has been suspended on certain sections. The report highlights that some parts of the railway network have not received significant investment for more than 40 years, affecting operational safety and network capacity. Substantial investment in rehabilitation and modernisation is therefore required. The audit also identified weaknesses in asset management, inventory records and human resources. Only 718 of the 1,314 planned positions were filled, while 30% of employees did not meet the specific educational requirements for their positions. Audit calls for corrective action The State Audit Office issued recommendations addressing the identified financial, operational and administrative shortcomings, calling for corrective measures by the enterprise and the relevant institutions. In response, PE \u017dRSM Infrastructure Skopje submitted information on measures taken to implement the recommendations in early November 2026. The supplementary notification included updates on the progress of construction works on both phases of the eastern section of Railway Corridor VIII, covering Kumanovo\u2013Beljakovce and Beljakovce\u2013Kriva Palanka, as well as other activities. Despite the challenges identified, the ongoing Corridor VIII projects represent an important opportunity to improve North Macedonia’s railway connectivity and strengthen its position within regional transport networks. However, realising this potential will require more effective project preparation, stronger financial and administrative management, and sustained investment in the existing network. Addressing these issues will be essential not only to complete the current infrastructure projects but also to ensure that the country’s railway system can operate safely, reliably and competitively in the long term.<\/p>\n","protected":false},"author":1,"featured_media":19979,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-19977","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\nNorth Macedonia\u2019s Railways: Losses and Aging Tracks | RCSEE<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/rcsee.org\/en\/north-macedonias-railways-losses-and-aging-tracks\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"North Macedonia\u2019s Railways: Losses and Aging Tracks | RCSEE\" \/>\n<meta property=\"og:description\" content=\"A State Audit Office report highlights accumulated losses of MKD 4.72 billion, cost overruns on Corridor VIII projects and ageing railway infrastructure, with some sections operating at reduced speeds and others closed to traffic. North Macedonia\u2019s railway infrastructure faces significant financial and operational challenges, according to the State Audit Office\u2019s audit of the Public Enterprise for Railway Infrastructure \u2013 Railways of the Republic of North Macedonia (PE \u017dRSM Infrastructure Skopje) for 2024. The enterprise recorded a loss of MKD 188.8 million in 2024, although this represented an improvement of MKD 486.1 million compared with the previous year. Its accumulated losses nevertheless reached MKD 4.72 billion, raising concerns about its capacity to maintain, rehabilitate and modernise the national railway network. Corridor VIII projects affected by delays and cost overruns The audit identified shortcomings in the planning and implementation of major infrastructure projects on the eastern section of Railway Corridor VIII. The contract for the Kumanovo\u2013Beljakovce section, signed in 2013, increased in value by 96% to \u20ac39.7 million, while the completion deadline was extended by eight years and three months. The main reasons included errors in project documentation, inadequate technical solutions and additional works. Progress on the Beljakovce\u2013Kriva Palanka section has also been delayed. A \u20ac155 million construction contract was signed in July 2022, 18 years after construction had been halted. The completion deadline was subsequently extended to 23 October 2026. Meanwhile, although international financial institutions approved loans totalling \u20ac191.4 million for railway infrastructure projects, 44% of the funds remained undisbursed at the end of 2024. The enterprise had paid \u20ac7.78 million in commitment fees on undisbursed loans, alongside \u20ac2.85 million in interest during 2024. Ageing infrastructure limits railway performance The condition of the existing network remains another major concern. According to the audit, parts of railway corridors 10, 10d and 8 suffer from outdated and inadequately maintained infrastructure. Defects, deteriorated systems and damaged sleepers have forced trains to operate at reduced speeds, while traffic has been suspended on certain sections. The report highlights that some parts of the railway network have not received significant investment for more than 40 years, affecting operational safety and network capacity. Substantial investment in rehabilitation and modernisation is therefore required. The audit also identified weaknesses in asset management, inventory records and human resources. Only 718 of the 1,314 planned positions were filled, while 30% of employees did not meet the specific educational requirements for their positions. Audit calls for corrective action The State Audit Office issued recommendations addressing the identified financial, operational and administrative shortcomings, calling for corrective measures by the enterprise and the relevant institutions. In response, PE \u017dRSM Infrastructure Skopje submitted information on measures taken to implement the recommendations in early November 2026. The supplementary notification included updates on the progress of construction works on both phases of the eastern section of Railway Corridor VIII, covering Kumanovo\u2013Beljakovce and Beljakovce\u2013Kriva Palanka, as well as other activities. Despite the challenges identified, the ongoing Corridor VIII projects represent an important opportunity to improve North Macedonia’s railway connectivity and strengthen its position within regional transport networks. However, realising this potential will require more effective project preparation, stronger financial and administrative management, and sustained investment in the existing network. Addressing these issues will be essential not only to complete the current infrastructure projects but also to ensure that the country’s railway system can operate safely, reliably and competitively in the long term.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/rcsee.org\/en\/north-macedonias-railways-losses-and-aging-tracks\/\" \/>\n<meta property=\"og:site_name\" content=\"RCSEE\" \/>\n<meta property=\"article:published_time\" content=\"2026-11-13T12:36:13+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-11-13T12:48:25+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/rcsee.org\/wp-content\/uploads\/2026\/11\/11022026.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"460\" \/>\n\t<meta property=\"og:image:height\" content=\"320\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"RCSEE\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" 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RCSEE","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/rcsee.org\/en\/north-macedonias-railways-losses-and-aging-tracks\/","og_locale":"en_US","og_type":"article","og_title":"North Macedonia\u2019s Railways: Losses and Aging Tracks | RCSEE","og_description":"A State Audit Office report highlights accumulated losses of MKD 4.72 billion, cost overruns on Corridor VIII projects and ageing railway infrastructure, with some sections operating at reduced speeds and others closed to traffic. North Macedonia\u2019s railway infrastructure faces significant financial and operational challenges, according to the State Audit Office\u2019s audit of the Public Enterprise for Railway Infrastructure \u2013 Railways of the Republic of North Macedonia (PE \u017dRSM Infrastructure Skopje) for 2024. The enterprise recorded a loss of MKD 188.8 million in 2024, although this represented an improvement of MKD 486.1 million compared with the previous year. Its accumulated losses nevertheless reached MKD 4.72 billion, raising concerns about its capacity to maintain, rehabilitate and modernise the national railway network. Corridor VIII projects affected by delays and cost overruns The audit identified shortcomings in the planning and implementation of major infrastructure projects on the eastern section of Railway Corridor VIII. The contract for the Kumanovo\u2013Beljakovce section, signed in 2013, increased in value by 96% to \u20ac39.7 million, while the completion deadline was extended by eight years and three months. The main reasons included errors in project documentation, inadequate technical solutions and additional works. Progress on the Beljakovce\u2013Kriva Palanka section has also been delayed. A \u20ac155 million construction contract was signed in July 2022, 18 years after construction had been halted. The completion deadline was subsequently extended to 23 October 2026. Meanwhile, although international financial institutions approved loans totalling \u20ac191.4 million for railway infrastructure projects, 44% of the funds remained undisbursed at the end of 2024. The enterprise had paid \u20ac7.78 million in commitment fees on undisbursed loans, alongside \u20ac2.85 million in interest during 2024. Ageing infrastructure limits railway performance The condition of the existing network remains another major concern. According to the audit, parts of railway corridors 10, 10d and 8 suffer from outdated and inadequately maintained infrastructure. Defects, deteriorated systems and damaged sleepers have forced trains to operate at reduced speeds, while traffic has been suspended on certain sections. The report highlights that some parts of the railway network have not received significant investment for more than 40 years, affecting operational safety and network capacity. Substantial investment in rehabilitation and modernisation is therefore required. The audit also identified weaknesses in asset management, inventory records and human resources. Only 718 of the 1,314 planned positions were filled, while 30% of employees did not meet the specific educational requirements for their positions. Audit calls for corrective action The State Audit Office issued recommendations addressing the identified financial, operational and administrative shortcomings, calling for corrective measures by the enterprise and the relevant institutions. In response, PE \u017dRSM Infrastructure Skopje submitted information on measures taken to implement the recommendations in early November 2026. The supplementary notification included updates on the progress of construction works on both phases of the eastern section of Railway Corridor VIII, covering Kumanovo\u2013Beljakovce and Beljakovce\u2013Kriva Palanka, as well as other activities. Despite the challenges identified, the ongoing Corridor VIII projects represent an important opportunity to improve North Macedonia’s railway connectivity and strengthen its position within regional transport networks. However, realising this potential will require more effective project preparation, stronger financial and administrative management, and sustained investment in the existing network. 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