New agency to incorporate OSE subsidiaries, upgrade railway services and implement strategy

A single agency will be set up to manage the railway infrastructure in Greece and incorporate three subsidiaries of the Hellenic Railways Organization (OSE), the Infranstructure & Transport Ministry said on Tuesday.

OSE, ErgOSE (which runs construction projects), and GaiOSE (rolling stock) will be incorporated in the to-be established “Railroads of Greece”, the ministry said in a statement on Tuesday. The name “represents the new era of the railroad, having the task of overcoming the image of a problem-riddled organization culminating in the accident at Tempi. In this context, we are called upon to create a strong and reliable image for the new organization.”

Infrastructure & Transport Minister Christos Staikouras presented the plan at the cabinet meeting earlier in the day, held under the chairmanship of the prime minister. He also presented the Strategic Development and Investments Plan, related to the railroad’s upgrade, which will also involve the European Union.

The Recovery and Resilience Fund will co-fund the plan, which is expected to be fully implemented by the end of 2025. Current personnel will staff it, along with another 600 new and highly trained personnel whose hiring will begin this year (2024).

The single new entity is expected to resolve conflicting policies that led to delays in implementing projects, and relieve the state budget’s expenditure for multiple staff with similar responsibilities in each of the three companies, the ministry said.

At the core of the new agency will be the so-called New OSE, which will have the full responsibility for security and railroad system issues, working with the ministry, the oversight authority, Hellenic Train, and all other related operators.

The new agency will have the form of a societe anonyme belonging to the Greek state and a board of directors appointed by the government. It will be overseen by the ministry.