Doboj, Prijedor, Zenica- The uncertain situation and the halt in production at ArcelorMittal in Zenica and Prijedor are having a significant impact on the Railways of Republika Srpska, given that 42% of their total revenue comes directly from this company.
As stated by officials from this public enterprise to “Nezavisne Novine,” they hope that their most significant client, ArcelorMittal from Zenica, will resolve their internal issues promptly to continue the realization of their three-year contract, thereby preventing adverse consequences for both entities.
“Given that the transportation of iron ore for ArcelorMittal accounts for 42% of the Railways of Republika Srpska’s total revenue, the current situation doesn’t appear optimistic. However, there’s a silver lining when we consider the results for the transport carried out during the first 10 months of 2023, compared to the total results from 2021 and 2022,” shared representatives from the Railways of Republika Srpska.
They further detailed that within the first half of November 2023, they transported a total of 1,143,969 tons of iron ore, generating revenue of 15,614,830 KM.
“Throughout the entire 12 months of the previous year, a total of 1,314,400 tons were transported, generating revenue of 16,740,157 KM. As a public enterprise of national interest, despite the persisting negative influences from economic and global shifts, over which we have no control, we’re investing maximum efforts to neutralize the adverse effects resulting from disruptions in transport flows in recent years, ensuring the company’s uninterrupted functioning,” the representatives mentioned.
They added that the pursuit of new clients and users of railway transportation services in freight traffic is an ongoing effort, even under challenging conditions, to ensure the company’s normal operations.
“While we seek appropriate solutions and strive, within our capabilities, to address issues arising from economic trends, we remain hopeful for a normalization of the situation, which is not only present in our region but globally,” concluded the company’s representatives.
Efforts to acquire information about how the cessation of production at ArcelorMittal will impact the Railways of FBiH remained unanswered by the time this edition of “Nezavisne Novine” concluded.
Recall that on November 11, ArcelorMittal Zenica temporarily halted production due to poor conditions prevailing in the steel market.
The future remains uncertain for approximately 3,000 employees in Zenica and Prijedor.
As previously mentioned by Rašid Fetić, President of the ArcelorMittal Zenica Union to “Nezavisne,” this is a problem affecting 20,000 to 30,000 families in BiH.
“The situation is not good at all, and it’s not just about us in Zenica. It also affects colleagues in Prijedor, the Railways of FBiH, the Railways of Republika Srpska, and other companies working for ArcelorMittal,” said Fetić at the time.
