Bulgaria Awards 12-Year Rail Deals, Private Ivkoni Express Enters

Bulgaria Awards 12-Year Passenger Rail Contracts, Introducing Private Operator Ivkoni Express

On February 11, the Bulgarian Ministry of Transport awarded two 12-year passenger rail contracts covering a total of approximately 20.7 million train-kilometers annually. The contracts, effective from December 13, 2026, divide the national network into three regional lots following an open competitive procedure. The incumbent, BDZ – Passenger Transport, secured the largest region, while new entrant Ivkoni Express EAD was awarded the remaining two.

Operational Details

The contracts partition the national passenger rail network into three distinct operational lots. BDZ – Passenger Transport was awarded the Western Region, which constitutes 75% of the country’s rail transport services. This contract mandates the operation of over 17.7 million train-kilometers annually until December 2038. The award maintains the national operator’s position in the most extensive part of the network.

Ivkoni Express EAD, a subsidiary of Bulgaria’s largest bus operator Union Ivkoni, secured the contracts for the North Region (14% of national transport) and the South Region (11%). The combined volume for the new private operator totals approximately 3 million train-kilometers per year. This marks the first entry of a private operator into Bulgaria’s subsidized passenger rail market. Union Ivkoni currently operates bus services to 100 cities in Bulgaria and over 150 international destinations.

Under the terms of the Public Service Obligation (PSO) contracts, the state retains a central role. The Ministry of Transport will continue to set the scope of services, define quality standards, exercise control, and provide financing. Critically, the rolling stock used for these services will remain public property, with the operators responsible for service delivery and maintenance according to contract specifications. Specific financial values of the contracts were not disclosed.

Market Impact

The introduction of a private operator is a direct implementation of Bulgaria’s Transport Strategy 2030, which prioritizes shifting traffic from road to rail. This market liberalization, developed in coordination with the European Commission, is intended to increase competition and improve service quality, including comfort and punctuality. The award to Ivkoni Express, a dominant player in national road transport, creates a new dynamic by integrating a road-based operator into the rail sector.

The successful execution of the tender process was a key reform mandated under Bulgaria’s national Recovery and Resilience Plan (RRP). According to Minister of Transport Grozdan Karadjov, adherence to the timeline was necessary to secure RRP funding allocated for the procurement of new rolling stock. The structure of the tender, which separates infrastructure and rolling stock ownership from operations, is designed to lower barriers to entry for new operators while maintaining state control over key assets and service levels.

Next Steps

BDZ – Passenger Transport and Ivkoni Express EAD are required to establish clear cooperation and transition procedures over the next ten months. This preparatory period is designed to ensure a smooth handover and operational readiness for the contract start date of December 13, 2026, with a stated goal of improved passenger services from day one of the new contracts.