JSC Serbian Railways


“Serbian Railways” and Chinese Company “Huawei” signed Framework Agreement for Modernization of Integrated Telecommunication System

“Serbian Railways” and Chinese company “Huawei” signed today, on July 17 in Belgrade, Framework agreement for modernization of integrated telecommunication system.
On behalf of Serbian Railways the Agreement was signed by Director General Dragoljub Simonović and on behalf of “HUAWEI” Jeffrey Wang, vice president for Central and Eastern Europe and Nordic countries. Signing of Framework agreement was attended by Serbian Railways executive directors Predrag Janković and Svetozar Čapin, as well as other members of the management and also by director of “HUAWEI” office in Serbia Jack Wei. Total estimated value of the investment for total modernization of Serbian railways telecommunications, which will be realized in several phases, is approx. EUR 200 million.

– “Serbian Railways” intend to modernize and upgrade safety, railways telecommunication systems for management and monitoring, as well as station telecommunication systems in accordance with the highest international standards. This will be continuation of railway modernization on all levels, because we will simultaneously, with works on infrastructure modernization an procurement of rolling stock, also modernize telecommunication system in accordance with needs of Serbian railways – said Director General Dragoljub Simonović during the Agreement signing.
He emphasized that by 2018, EUR 78 million will be invested in the development of telecommunication infrastructure on Corridors 10 and 11, as well as on Pančevo-Vršac and Požega –Kraljevo-Lapovo line, and he announced that first works on installment of optic cable can start in autumn.

Director General Dragoljub Simonović reminded that discussions between “HUAWEI” and Serbian railways on possibilities of modernization and upgrading of information and telecommunication system of Serbian railways through construction of railway communication network are in progress for the passed two years. The basis for negotiations is Agreement on economic and technical cooperation in the field of infrastructure, which was signed on August 20, 2009 in Beijing by Republic of Serbia Government and National Republic of China Government. Chinese Government decided to enable financing of projects carried out by Chinese company in South Eastern Europe through favorable bank loans.

“Serbian Railways” and „HUAWEI“ signed on November 18, 2011 Memorandum on understanding and on June 25, 2012 Agreement on business-technical cooperation on this project.
-I would like to confirm with this Framework agreement our dedication to successful realization of project for telecommunication modernization and in this way we will give assistance to Serbian Railways in process of modernization which has began and in that manner, we can build long term partnership – said Jeffrey Wang, vice president of „HUAWEI“.

He said that Huawei is one of main manufacturers of global railway communication solutions and GSM-R and he stated that Huawei enabled telecommunication solutions for over 100 thousand kilometers of lines in the world.

The Framework Agreement on modernization of integrated telecommunication system sets relationship between „Serbian Railways“ and „HUAWEI“ regarding signing of commercial contracts for each phase of the project, as well as for its financing.

First phase of the project alone has estimated investment value of approx. EUR 40 million. It includes works on construction of passive optical infrastructure and active network equipment (transmission systems, IP-MPLS, station telecommunication systems), together with installing of GSM-R solutions on test section in Belgrade railway junction from Batajnica to Pančevo. Pilot project on the section will start only after obtaining of all necessary permits and certificates from Directorate for Railways.

In 2014 “Serbian Railways” plan to invest EUR 22 mil in the telecommunication infrastructure and in the period of 2015-2018, EUR 40 mil more. That means that Serbian Railways will need the total of EUR 78 mil starting with this year to 2018 for modernization of telecommunication infrastructure.

Telecommunication infrastructure investments include construction of cable infrastructure (optical and copper cables), transmission systems, information systems (passenger information, video surveillance, visual information system, time system), railway devices, local radio network, radio dispatcher units and GSM systems on test section Batajnica-Pančevo.