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Economic collapse imminent: Some 1,700 jobs at risk as Zenica steelworks and RS Railways face paralysis

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Facebook / Željeznice RS

The acting Director General of "Republika Srpska Railways" (ZRS), Dragan Zelenkovic, has issued a dire warning through an open letter, stating that the potential shutdown of Nova Zeljezara Zenica would lead to "unfathomable consequences." The crisis reached a breaking point on March 2, 2026, when the transport of iron ore on the Omarska-Zenica route was officially halted due to operational issues at the Zenica plant.

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This disruption follows the closure of the "Koksara" coke plant in Lukavac, triggering a catastrophic chain reaction across the industrial sector. According to Zelenković, the suspension of these transport activities represents a "tectonic shock" for ZRS. The Zenica steelworks serves as a strategic partner, accounting for 60% of the total freight revenue for the entity's railway.

On an annual basis, ZRS transported approximately 1.4 million tons of iron ore and raw materials for the Zenica plant, generating a revenue of roughly 19 million Bosnian marks (approx €9.71 million). The loss of this partnership threatens the existence of 1,700 railway employees and could potentially impact up to 500 interconnected companies.

"If Nova Zeljezara Zenica stops working, the consequences for Republika Srpska Railways could be catastrophic," Zelenkovic warned, noting that both entity railways are already reeling from the Lukavac closure. He emphasized that there is no viable alternative, as traditional goods are increasingly moved by road despite rail being more cost-effective and environmentally friendly.

Zelenkovic has called upon all government institutions to recognize the gravity of the situation and implement urgent reforms. He stated that the system, neglected for decades, requires immediate transformation to ensure social peace and economic stability. "We do not want our workers on the streets; we want survival," the Director concluded, urging authorities to prevent a total industrial collapse across Bosnia and Herzegovina.

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