For the first time in ten years, HŽ Cargo, a domestic and regional rail freight carrier, reported a profit in 2023. The company ended the year with earnings of 2.02 million euros, marking its first profitable outcome since the market was liberalized in 2013.
In 2023, HŽ Cargo recorded an EBITDA of 8.13 million euros, a 58 percent increase from the previous year. The company’s total operating income reached 60.67 million euros. Meanwhile, total business expenses were reduced by 12 percent to 52.54 million euros compared to 2022, despite a 16 percent increase in costs per worker.
The company faced numerous internal and external challenges throughout the year. Externally, the rail freight market saw a decline by seven percent in tons due to continuous rail closures on high-frequency routes and reduced traffic on the Lika line. Internally, the company grappled with complex property-legal relations, large debts, and an outdated fleet, which many believed would hinder any potential recovery.
Despite these adversities, HŽ Cargo maintained a stable market share in 2023. The company credits its survival and financial turnaround to a series of transformations and strategic adjustments made over the past decade.
HŽ Cargo employs over 900 workers focuses its future efforts on aligning with market trends, attracting younger, qualified employees, and advancing in areas such as interoperability, digitalization, and fleet modernization.
HŽ Cargo has initiated the process of finding a strategic partner, in line with decisions from the Croatian Government and the objectives of the National Recovery and Resilience Plan. This move is part of the company's ongoing strategy to secure its operations and ensure further development despite the challenging market conditions.
