Albanian Railways towards privatization on behalf of the EU

Another important public sector appears to be being handed over to the private sector by the Albanian government, this time through another Public-Private Partnership (PPP) scheme.

The Ministry of Infrastructure and Energy, with the support of the EU CONNECTA2 program, is preparing a contract for the private operation of passenger trains across the country's railway network.

Instead of reviving rail transport with public funds, the government is choosing to hand over this service to a private operator, which will be selected through a tender expected to open at the end of the year.

Under the plan, the private operator will not only operate passenger trains, but will also provide the trains themselves – new, used or leased – and may also benefit from collecting fares.

The state does not mention any guarantees for the protection of the public interest, whether in ticket prices, quality of service or investment oversight.

“ Albania is aligning its transport policies with those of the EU as part of its accession process. A restructuring of the state railway HSH is planned, with the creation of a vertically-separated infrastructure manager for the 677 km network.

Operators would have "a unique opportunity to enter a growing market with strong government and EU support, offering the potential for long-term profit through public service contracts and future expansion into cross-border services."

Passenger services would operate mainly on the Durrës International Airport - Tirana - Tirana corridor, with possible future extensions to Hani i Hotit on the border with Montenegro and Pogradec on the border with North Macedonia. Passenger operations are estimated at 1.1 million train-km in 2026, increasing with future extensions to around 4 million train-km in 2036 ,” the Railwaygazette article states.

 But unlike European Union countries where the state maintains strategic control over the railway network, Albania is paving the way for full privatization, which raises strong suspicions of clientelistic interests and a lack of transparency.

The plan foresees the first privately operated train services to start in 2026, initially on the Durrës–Tirana–Airport axis, and later to be expanded towards the border with Montenegro and North Macedonia. The network is being adapted for speeds of up to 120 km/h, with new signaling and electrification, but the main investments remain unclear: who will make them and with what guarantees?

The duration of the contract and the remuneration model will be determined based on the outcome of the market consultation, taking into account the life cycles of the rolling stock, mobilization costs and the need to ensure a competitive tender.

Tendering is expected to begin in the third quarter of 2025 for operations to begin in the third quarter of 2026.