Wedoany.com Report-Nov. 5, The European Bank for Reconstruction and Development (EBRD) has approved a sovereign-guaranteed loan of up to €42 million ($48.6 million) to Serbia’s state-owned passenger rail operator, Srbijavoz, to support the purchase of 12 new railway sleeping cars for international routes. The loan agreement was signed by Ljubiša Pejičić, acting director general of Srbijavoz, while the guarantee agreement was signed by Siniša Mali, Serbia’s first Deputy Prime Minister and Minister of Finance, and Jelena Čeperković, EBRD Deputy Head for Serbia.

The new equipment will replace the current rolling stock, which no longer complies with EU regulations.

Srbijavoz currently operates more than 20 passenger routes covering urban, national, and international destinations. The new sleeping cars will replace outdated rolling stock that no longer meets European Union (EU) safety and technical requirements and is therefore not eligible for operation within EU member states.

The company plans to deploy the new cars on the Belgrade–Bar route, which connects Serbia and Montenegro, and later extend their use to future routes linking Serbia with neighbouring EU countries, in line with EU standards for cross-border rail services. This investment is expected to enhance passenger comfort, operational safety, and efficiency while supporting Serbia’s integration with regional and European transport networks.

The EBRD stated that it remains the largest institutional investor in Serbia by capital committed, with over €10 billion invested through 394 projects to date. The bank continues to play a major role in improving Serbia’s transport infrastructure, energy systems, and public services.

The financing for the new sleeping cars aligns with Serbia’s broader rail modernisation strategy, which aims to upgrade transport infrastructure and promote sustainable, cross-border mobility. Recent developments include the €153.6 million ($166.2 million) railway bypass project launched in July 2024 around the city of Niš. The project involves the construction of a single-track, electrified bypass linking the Niš–Ranžirna and Sićevo stations, as well as the electrification of the Crveni Krst section that connects to the bypass.

Additionally, in January 2024, Serbia began building the first joint rail border crossing with North Macedonia, funded by a €5 million EBRD loan and a €2.5 million EU grant. The project, located on Corridor X of the Trans-European Transport Network, aims to enhance connectivity across the Western Balkans by improving logistics and border procedures for freight and passenger trains.

Through these projects, the EBRD and the Serbian government seek to modernise the country’s railway system, strengthen regional cooperation, and facilitate more efficient transport links between the Western Balkans and the European Union.

The investment in new sleeping cars represents an important step toward modern, sustainable, and internationally compliant rail transport in Serbia, improving travel quality for passengers and reinforcing the country’s role in regional transportation development.