Railway transport crisis puts major Bosnian companies at risk

NEWS 16.10.202409:59 0 komentara
GIKIL

Due to ongoing uncertainty over when rail transport will resume or when the railway line in Jablanica will even begin reconstruction, many companies reliant on rail in Bosnia and Herzegovina are now at serious risk. Particularly affected is GIKIL Lukavac, one of the largest coke factories in the region, employing around 900 workers. Road transport of coal for the company is not a viable solution, and the country's institutions and parliaments have yet to provide a solution to this pressing problem.

For twelve days now, neither the workers nor the management of Global Ispat Coke Industry Lukavac (GIKIL), which employs nearly 900 people and does business with over 400 other companies, have received any information or indication as to when rail transport will be restored—a factor crucial to the future of the plant. Everyone is worried, but the concern of these people seems to be falling on deaf ears among authorities.

“No one is looking at the chain reaction. When you lose those 400 million, where will another 400 million come from? This will impact the state, the people getting paid, state administration, and consumption. Believe me, without GIKIL, the Federation Railways are also in danger,” said Almin Suljic, General Director of GIKIL.

The biggest concern is job security. The director claims that wages are guaranteed for this month, but the question remains: how can workers’ livelihoods be secured moving forward? The GIKIL union expresses deep concern, and the Federation's Chemical and Non-Metal Industry Union has issued an open letter to the governments of the Federation and Tuzla Canton, stressing that GIKIL's difficulties also jeopardize other major companies in Bosnia and Herzegovina. They have called for prompt action by the international community.

“The 900 jobs are at stake, but it's not just the jobs—it's 900 families. People are worried, most have loans, and wages are low,” said Ermin Halilovic, President of the GIKIL Workers’ Union. Rasid Fetic, President of the ArcelorMittal Zenica Union, added: “What can we do from here? We appeal to all relevant institutions to work diligently to solve the problem. I believe this is a priority not just for GIKIL and ArcelorMittal, but for Bosnia and Herzegovina as well.”

The Foreign Trade Chamber of Bosnia and Herzegovina highlights that the government is still largely unaware of the looming consequences for the nation's economy. The losses have already reached millions, and there are serious concerns about potential market loss for some of the country's largest and most strategic companies.

“From an economic perspective, we appeal to decision-makers to recognize the importance of getting transport back to full capacity, to protect companies, and to preserve jobs,” explained Ahmet Egrlic, President of the Foreign Trade Chamber of BiH.

GIKIL is now facing its worst logistical crisis in 50 years, as the only lifeline of railway transport connecting the north and south of the country has been severed. After twelve days, no one has offered any assistance or even verbal support to the company. If authorities continue to do nothing in the coming days, they truly may not understand what they stand to lose.

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