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CROATIAN RAILWAY ON FUTURE PLANS AHEAD OF COMPANY DAY

ZAGREB, Sept 30 (Hina) - Croatian Railway (HZ) must realise a constant annual growth of freight transport of five percent as well as a two-percent growth of passenger transport and a 10-percent increase in revenue to catch up with European railways, the president of the HZ management board, Marijan Drempetic, said on Monday presenting new business plans on the occasion of Croatian Railway Day, October 5.
ZAGREB, Sept 30 (Hina) - Croatian Railway (HZ) must realise a constant annual growth of freight transport of five percent as well as a two-percent growth of passenger transport and a 10-percent increase in revenue to catch up with European railways, the president of the HZ management board, Marijan Drempetic, said on Monday presenting new business plans on the occasion of Croatian Railway Day, October 5. #L# Drempetic said HZ had to continue with internal restructuring as an integral part of the process of adaptation to the criteria that had to be met by every transport company - fast freight delivery and quality passenger transport. HZ must reach the productivity level of European railways and realise its own revenue from passenger and goods transport that will cover all costs, Drempetic said. This requires a decrease in the number of employees from the current figure of 16,300, which by early 2003 should be cut to about 15,000. The process of separating subsidiary activities from the company's primary activity - transport - has been completed, Drempetic said, adding that at the beginning of the year seven companies had been founded employing 1,800 workers. It is expected that these companies will soon be privatised and this process will include all employees, he said. Speaking about business plans, Drempetic mentioned that the reconstruction of electrical engines had been completed while ten trains with electrical and diesel engines were being overhauled to replace the classic equipment currently in use, which should make transport cheaper. In the first nine months of this year, 50 kilometres of railways was overhauled. The overhaul will continue this and next year, which will enable the introduction of tilting trains on some railways. HZ is also to reconstruct railway infrastructure along pan-European corridors, a task to be completed by 2006. HZ has purchased 750 new computers and has been working towards fully computerising its network, Drempetic said. (hina) sp rml sb

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