CFR leased two railway sections to RC-CF Trans, for RON591,500 for four years, or RON166,500 a year.

The auction will be resumed on November 25 for the remaining sections.

CFR announced in July that it planned to lease nearly 1,100 km of rail, but awarded only three rail sections covering 63.7 km for which it will cash RON620,000 a year, net of VAT.

RC-CF Trans is owned by businessmen Iorgu Ganea and Costel Comana, owners of passenger railway operator Regiotrans.

Railway lease contracts are awarded for for years to the highest bidder. Contractors are also obliged to take on the CFR staff employed or working on the respective railway sections.

The program for the lease of rail sections is part of Romania’s commitments to the International Monetary Fund (IMF) and targets cost cutting and rendering the country’s railway system more efficient.