Bulgarian Railways Undergoing Major Restructuring with Private Passenger Service Introduction

Bulgaria is set to modernize its railway system through a significant restructuring of Bulgarian State Railways – Cargo (BDZ Cargo) and the introduction of private companies to operate passenger routes. These changes, spearheaded by Transport Minister Grozdan Karadjov, aim to improve efficiency, attract European funding, and enhance service quality.

Private Passenger Service Launched

For the first time in Bulgarian history, a private company, “Ivkoni Express,” will operate approximately 25% of the country’s railway routes under a 12-year contract signed in February 2025. This public procurement divides passenger train management between BDZ and the private operator.

Regional Service Allocation

“Ivkoni Express” will focus on the northern and southern regions, primarily serving Eastern Bulgaria, including routes like Plovdiv – Burgas and Gorna Oryahovitsa – Varna. BDZ will continue to operate services in the western region, covering key lines such as Sofia – Burgas and Sofia – Varna. BDZ was the sole candidate for this lot.

Financial Situation of BDZ Cargo

The restructuring of BDZ Cargo is driven by its financial challenges. In 2024, the company had a turnover of €71.58 million but too carried overdue liabilities of €16.87 million . Minister Karadjov noted that a private company with similar financial indicators would likely have declared bankruptcy.

Asset Optimization and European Funding

BDZ Cargo currently owns around 4,500 wagons, but only 2,000 are deemed necessary, even with increased freight volumes. The company also possesses redundant assets like unused buildings, facilities, and land, including 230 apartments nationwide . The introduction of competition through public procurement is intended to unlock approximately €700 million in European funding for the purchase of 35 new trains .

Management Changes at Holding BDZ

In February 2025, Transport Minister Grozdan Karadjov dismissed Georgi Drumev as director of Holding Bulgarian State Railways (Holding BDZ) and Yulia Varadinova-Milkova as a member of the Board of Directors .

Future Outlook

The new contracts between BDZ and “Ivkoni Express” will take effect in December 2025, at which point the impact on ticket prices will become clear. The success of this restructuring and the introduction of private competition will be crucial for the modernization of Bulgaria’s railway system and its ability to attract and utilize European funding.