Compliance of Serbian Railways Regulations for Performance of Duties in Public Transportation with European Union Regulations

Duties of the public passenger transport are still present on the railways, although the railway had long lost its monopoly on the transport market, and their presence made it difficult for beginning the process of reform, transition and restructuring of railways in relation to other modes of transport. Those instrument has been replaced by the establishment of a new way of financing unprofitable transport through the introduction of the obligation of public transport including rail transporter obligation to transport passengers and goods at established prices and special conditions for a fee determined by the difference between the cost of the state and justified the full cost. Baseline this instrument gives its effect on the economy of business traffic (transporters). Losses in business could be compensated from the state budget, but budget was insufficient and it was impeded the orderly and proper maintenance of infrastructure. In such circumstances the exploitation parameters infrastructure are exacerbated, and that effects led to the further weakening the competitive position of the railway. So, in a situation where the state compensates the losses from operations of railways it also provides funds for simple reproduction of the infrastructure, so that the final result of the railroad and shall bear is the total amount of these costs. However, the causal circuit costs, prices, competition, transport volume, revenue, profit ,quality maintenance, a new reduction of competitiveness, are really important deteriorating market position of the railways.