Bulgaria Unveils €1.5B High-Speed Rail Plan and Market Liberalization to Combat Declining Ridership

SOFIA, Bulgaria – Bulgaria is embarking on a radical overhaul of its national railway system under its Integrated Transport Strategy 2030, committing to a €1.5 billion high-speed rail project and opening its passenger market to new operators. The ambitious dual strategy aims to reverse a persistent decline in passenger numbers and position rail as a competitive, modern, and sustainable mode of transport for both domestic and international travel.

The Bulgarian Ministry of Transport has initiated a major push to revitalize its rail sector, which has been struggling with falling passenger figures. According to recent data, passenger rail transport saw a 3.1% decline in passengers carried, with passenger-kilometres dropping to approximately 1.5 million in 2024. This places Bulgaria among the EU countries with the lowest frequency of train users, at just 3.6 journeys per capita annually, well below the European average. The government’s strategy aims to make train travel a convenient and attractive option for daily commutes, interregional journeys, and international connections through a combination of infrastructure upgrades and market-based reforms.

At the heart of the modernization effort is a significant investment in infrastructure, headlined by a plan to introduce high-speed rail. The project, with an estimated cost of €1.5 billion, aims to develop lines capable of supporting speeds up to 250 km/h. This investment, coupled with the procurement of new, modern rolling stock, is designed to create a fast, safe, and comfortable passenger experience that can compete effectively with road transport. The strategy underscores the strategic importance of Bulgaria’s rail network for both national connectivity and its integration into wider European transport corridors.

In a parallel move to stimulate service improvements, the government is liberalizing the passenger rail market. In June, the Ministry of Transport launched a public consultation to define the criteria for awarding public service contracts to new operators. The initial phase will focus on three regions, where private or state-owned competitors can bid for 12-year contracts to operate regional services. As part of the tender, existing rolling stock will be allocated to the winning operators based on their proposed service levels, a mechanism intended to facilitate the entry of new players into the market and foster a more competitive and passenger-focused environment.

Key Takeaways

• Major Investment: Bulgaria is investing approximately €1.5 billion to develop a high-speed rail network with speeds of up to 250 km/h.
• Market Liberalization: The country is opening its passenger rail market, starting with competitive tenders for 12-year regional service contracts in three key areas.
• Addressing Decline: The reforms are a direct response to declining ridership, with Bulgaria currently having one of the lowest per-capita train usage rates in the European Union.

Editor’s Analysis

Bulgaria’s two-pronged approach of massive state-led infrastructure investment and simultaneous market liberalization represents a critical test case for rail revitalization in Eastern Europe. While many nations focus on one path or the other, Sofia is betting that combining the high capital cost of a high-speed network with the service-oriented competition of an open market will create a synergy powerful enough to reverse decades of underinvestment and shifting passenger habits. For the global rail industry, this is a significant development. Success in Bulgaria could provide a blueprint for other nations in the region facing similar challenges of aging infrastructure and the need to align with the EU’s Green Deal objectives. The key will be whether the new private operators can leverage the state’s infrastructure investment to deliver a service quality that genuinely wins back passengers from roads and airways.

Frequently Asked Questions

What is the main goal of Bulgaria’s Integrated Transport Strategy 2030?

The primary goal is to modernize Bulgaria’s rail transport system to make it a fast, safe, and comfortable alternative to road transport, thereby increasing passenger preference and usage for daily, interregional, and international travel.

How fast will the new Bulgarian trains travel?

The strategy includes plans for a high-speed rail network capable of reaching speeds up to 250 km/h, representing a major upgrade to the country’s current infrastructure.

Is Bulgaria allowing new companies to operate train services?

Yes, a key part of the strategy is the liberalization of the passenger rail market. The government has initiated a process to award 12-year contracts to new operators to run regional services, aiming to increase competition and improve service quality.