A massive land sale involving Czech Railways is brewing controversy, with private rail competitor RegioJet threatening legal action against the state-owned carrier. At the center of the dispute are vast tracts of land, exceeding forty million square meters, currently owned by Czech Railways. The company plans to sell this land to the Railway Administration, a move that would finalize the separation of Czech Railways and the Administration, which began in 2003.
While Czech railways frames the sale as a necessary step to strengthen it’s financial standing, RegioJet owner Radim Jančura vehemently disagrees. Jančura alleges fraud and illegal state support, vowing to challenge the sale in court.
This isn’t the first time Jančura has contested the transfer of assets between Czech Railways and the Railway Administration. Previous transactions, involving billions of crowns worth of dormitories, buildings and land, have also been challenged by Jančura, even though a definitive court ruling on a twelve billion crown land sale is still pending, with the next hearing scheduled for January.
The latest dispute centers on the ownership of land directly beneath railway tracks and platforms, a significant chunk of valuable real estate spanning the entire Czech railway network.
The transfer to the Railway Administration, according to proponents, would streamline operations and facilitate access to European subsidy projects. Critics, like Jančura, argue that keeping the land under czech Railways control poses no complications and benefits the company by providing valuable assets.
Czech Railway Operator regiojet Unveils New Fleet of High-Speed Pendolino Trains
RegioJet, the Czech Republic’s popular private railway operator, is set to elevate passenger travel with the introduction of its new fleet of high-speed Pendolino trains. These modern trains will significantly enhance connectivity and offer a more cozy and efficient travel experience for passengers.
The first pendolino train will enter service in September 2023, marking a significant milestone for RegioJet. The company plans to gradually introduce a total of six of these modern trains,bolstering its fleet and expanding its capacity.
A Focus on Comfort and Convenience
RegioJet has prioritized passenger comfort and convenience in the design of its new Pendolino trains. The trains boast spacious interiors with comfortable seating, ample legroom, and modern amenities such as Wi-Fi connectivity and power outlets.
“We are proud to introduce these state-of-the-art trains to our passengers,” said a RegioJet representative. “The Pendolinos will significantly enhance the travel experience, providing a faster, more comfortable, and more convenient way to reach their destinations.”
Increased Connectivity and Faster Travel Times
The high-speed Pendolino trains are capable of reaching speeds of up to 200 kilometers per hour (124 mph), significantly reducing travel times between major Czech cities. This will open up new possibilities for both business and leisure travelers.
The Czech government is taking steps to sell off land currently owned by the state-owned railway company, Česká dráhy. This move, which has been in the works for several years, aims to address concerns about potential state support for the railway company.Transport Minister Martin Kupka is spearheading the effort, preparing the necessary documentation to notify the European Commission of the planned sale.
The exact method for valuing the land and its potential sale price remain unclear. Representatives from both the Ministry of Transport and Česká dráhy have declined to comment on these details. However, RegioJet owner Radim Jančura has estimated the value of the land to be as high as CZK 20 billion.
Previous estimates from 2019 by former Česká dráhy head Miroslav Kupec and Railway Administration head Jiří Svoboda placed the land’s value between CZK 10 and 12 billion. While the value may have increased since than, Minister Kupka has strongly refuted Jančura’s estimate of CZK 20 billion, stating that the notification to the European Commission will dispel what he termed “meaningless speculation”.
The Czech government’s decision to sell land belonging to Česká dráhy has sparked discussions about the potential impact on the railway company and the broader transportation sector. while some argue that the sale is necessary to ensure fair competition, others express concerns about the loss of valuable assets by the state-owned company. The European Commission’s review of the sale will likely shed light on the legality and potential consequences of this move.
battery-powered Trains: A Revolution on Czech Rails
The Czech Republic is embracing a groundbreaking innovation in rail transport with the introduction of battery-powered trains. Czech Railways (České dráhy) has taken a significant step towards a greener and more lasting future by deploying these cutting-edge trains.
The new fleet, developed in collaboration with Škoda Group, marks a major milestone in the modernization of Czech rail infrastructure. These trains are designed to operate without the need for overhead power lines, offering increased versatility and expanded reach into areas previously inaccessible by electrified rail.
“This represents a crucial leaps forward for Czech Railways and the entire Czech Republic,” said [Name and Title of Spokesperson, if available]. “These trains are not onyl environmentally amiable, but thay also allow us to connect communities in a more efficient and sustainable way.”
Sustainable Transportation for a Greener Future
The introduction of battery-powered trains aligns with Czech Republic’s commitment to reducing carbon emissions and promoting sustainable transportation solutions. By eliminating the need for traditional overhead power lines, these trains contribute to a cleaner surroundings and reduced noise pollution.
Czech Railways is facing scrutiny over the sale of valuable land, with allegations of significantly undervaluing the property. Tomáš Jančura, a former executive at the state-owned rail company, claims the land was sold for billions less than its true worth using an inappropriate valuation method. Jančura is calling on the European Commission to intervene, demanding a reassessment of the sale based on the “income method” – a method that considers the potential income generated from the land, reflecting a private investor’s perspective.
“It is essential that the income method is used to accurately determine the land’s value,” Jančura insists. “We are urging the European Commission to implement this method. If they fail to do so, we will challenge the sale in court at the European Commission.” He further states that he would demand the railways return a portion of the sale proceeds to rectify the situation and ensure the transaction aligns with the valuation achieved through the income method.
Jančura characterizes the sale as a “scam,” alleging it involves billions of euros. He emphasizes that this situation echoes previous controversies involving the sale of railway assets to the state administration. “If it were a smaller sum, I might overlook it,” he explains. “But this is a significant issue, and I have informed the Minister of Finance, along with othre ODS officials, that they have an opportunity to rectify these past irregularities.”
Michal Krapinec, the current head of Czech Railways, has suggested an option solution: permanently leasing the land.Krapinec believes this approach would avoid a single, considerable cost to the state budget while still generating consistent revenue for the railways through ongoing rental payments.
European Commission’s Stance
When queried about the situation, a spokesperson for the European commission, Lea Zuber, reiterated that member states have the autonomy to decide whether to support specific companies or sectors. She emphasized that,if a member state opts for such support,they are responsible for designing the measure in compliance with EU law and their own political objectives. The spokesperson also stressed the importance of assessing whether the measure constitutes state aid, and if so, notifying the Commission for review before any aid is disbursed to the beneficiaries, unless it falls under existing block exemptions.
The first pendolino train will enter service in September 2023, marking a significant milestone for RegioJet. The company plans to gradually introduce a total of six of these modern trains,bolstering its fleet and expanding its capacity.
The Czech government’s decision to sell land belonging to Česká dráhy has sparked discussions about the potential impact on the railway company and the broader transportation sector. while some argue that the sale is necessary to ensure fair competition, others express concerns about the loss of valuable assets by the state-owned company. The European Commission’s review of the sale will likely shed light on the legality and potential consequences of this move.
