Railway Company Cargo Posts First Profit Since 2008
Cargo railway company ZS Cargo Slovakia has posted its first positive operating profit since 2008, with transport minister Jan Figel putting the good news down to the revitalisation steps taken to revive the company.
The company enjoyed an operating profit of EUR 12 million for 1Q 2011 thanks mostly to EUR 36 million less in expenditures, declared Figel. These were generated in various ways, including the introduction of electronic auctions, lower maintenance costs and the company being more self-reliant instead of outsourcing.
Figel admits that there is still a lot of work to do, though, while not resisting to mention how the current coalition had inherited the company EUR 600 million in the red.
Figel also complained about how the company was being badly managed, with expensive outsourcing and people being paid for work they didn’t do (some workers were being paid for a 5-day week while working just 4). He resents the fact that the management received around EUR 850,000 in golden parachutes, which he says they did not deserve.