Moldova unbundles state railway into two entities by late 2026
Moldova's government approved the unbundling of state railway operator CFM into separate infrastructure and commercial transport entities on Wednesday, aiming to complete the EU-aligned restructuring by Dec. 31, 2026.
Splitting tracks from commercial trains
Under the draft law adopted during the Sept. 9 cabinet meeting, state enterprise Calea Ferată din Moldova (CFM) will be split into two joint-stock companies: CFM Infra, which will oversee railway infrastructure and tracks, and CFM Passengers and Freight, dedicated to commercial transportation.
The move marks the second phase of restructuring CFM in line with Moldova's Railway Transport Code and EU commitments. Officials said the separation aims to dismantle the historical state monopoly, attract private operators, and enhance competition on domestic rail corridors.
“CFM Infra will become the legal successor of the enterprise, detailing the reorganization stages, share capital formation, creditor and employee protection, as well as financial and fiscal measures,” said Deputy Prime Minister and Minister of Infrastructure Vladimir Bolea. “This bill creates the necessary legal framework to finalize CFM's overhaul by Dec. 31, 2026, in accordance with our pledges.”
Prime Minister Vasile Tofan endorsed the reform as standard international practice that improves market efficiency.
“In fact, this is the norm across most of the world,” Tofan said. “We must separate the infrastructure from transport operators because having a single provider helps neither prices nor service quality.”
Procedural waivers to prevent reform delays
The Ministry of Infrastructure and Regional Development noted that adhering to standard statutory procedures would have prolonged the restructuring until April 2027, past the firm Dec. 31, 2026 deadline agreed under Moldova's Growth Plan. To ensure timely delivery, the cabinet approved targeted exemptions.
Mandatory asset evaluations will apply solely to properties forming the initial share capital of CFM Infra, while remaining assets will transfer at existing book values. A comprehensive audit of all CFM assets would have cost the state budget tens of millions of lei (approx. €1 million to €5 million / 20–100 million MDL).
Procedural timelines for creditors will also be streamlined without extinguishing their rights to notification or collateral guarantees. Consultation periods with trade unions are set to decrease from 30 calendar days to 10, with authorities noting that rail unions were officially briefed on the plan in February 2026. Prior fiscal inspections will be waived, as all tax obligations transfer directly to the successor corporate body.
Staff unable to transition to the newly formed commercial companies will be made redundant under statutory Labour Code provisions and receive mandatory severance compensation, the ministry stated.
Translation by Iurie Tataru
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