OSE Reports Huge Deficit Decline for 2011

OSE Reports Huge Deficit Decline for 2011

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OSE, the state-run railway operator in Greece, reported on Tuesday a spectacular 82 percent decline in its annual deficit last year to 33 million euros, down from 187 million euros in 2010.

The company reported a zero deficit in December 2011, a first in the country’s rail history, creating prospects of viability and further improving its financial condition this year.

Train OSE reported annual losses of up to 240 million euros in the previous years.

The debt-laden company attributed the positive development to implementation of a restructuring plan, abolition of loss-making activities, wage cuts and decreased operating spending, as well as lower fuel consumption and saving up of to 14 million euros from electrical power use.

The state-owned company, long criticised as one of the biggest loss makers in the wider public sector, said it was also adopting innovative services, further expanding its suburban rail network surrounding the greater Athens area, and promoting a combined transport plan linking Athens to Thessaloniki, the two biggest metropolitan areas in the country.

(Source:AMNA)