The indebtedness of the Ministry of Transport, Posts and Telecommunications of the Slovak Republic runs at a staggering 53 billion Sk, of which 39 billion Sk come from government guaranteed credits. Despite this the task of Minister Gabriel Palacka is not to allow the transport infrastructure to collapse. He made it clear to us in a personal meeting as to which means he intends to apply to accomplish this goal.

After taking office and becoming familiar with the situation in the sector, can you name three most grave problems affecting the runnings of the sector managed by you?

In each area of the Ministry of Transport, Posts and Telecommunications of the Slovak Republic, there are problems which are pressing and need to be addressed. We view the problems of railways as being the most serious and having farthest-reaching consequences for Slovakia's whole economy, as they form a strategic organisation and it is necessary to ensure their basic financial consolidation and provide for their serviceability and further development. A second area is the highway programme, which has experienced a skyrocketing pace of the highway construction over the last two years. The state budget for 1999, or even for subsequent two to three years, will fall short of accommodating the pace of funding the construction also in view of the disadvantageous resources used thus far.

A third area is telecommunications where the transformation of the former state-run enterprise Slovenské telekomunikácie (ST) has been already put on hold for a number of years and its development has stagnated. It is also for this that the ST transformation into a company limited by shares was launched January 1, 1999 and the entry of a strategic partner is being prepared. We expect of this credibility, progressive technology, contacts and commercial links outwardly, because the said sector is developing so dynamically that an insulated Slovak state-owned company would not be in a position to keep abreast with the surrounding world.

Let me come back to railways and in particular to cargo transportation. By way of which forms do you intend to make sure that the transport of goods by rail keeps abreast with competition, while being a means of reducing financial losses?

Impartial knowledge demonstrates that a trend of shift from rail transport toward road transport can be perceived practically across Europe and a rail transport share on the transport market in Western European countries ranges from 10 to 20 %. In Slovakia, this indicator still runs at some 43-45 % and along with transit transports, which are most lucrative for the railway efficacy, calls for investment in the modernization of railways. In any case our efforts is that the cargo transport is profit-making, does not burden the state budget or railways themselves with a financial loss, and we will spare no pains such that the railways manage to reduce costs.

Slovakia has a relatively reasonable network of airports whose operation, however, requires financial means in order to serve their purpose. What future is in store for them?

Under the airport restructuring project, minor airports are expected to be used within respective locations and should be rather administered by particular towns or regions (Žilina, Nitra, Martin, and the like). In contrast, those airports in use also for military purposes, such as Piešťany, Sliač, should be managed by the Defence Ministry. The status of an international airport is held by Bratislava, Košice and Poprad. In consequence, further modernization is anticipated even on a commercial basis through involving private foreign investors who would provide, besides financial means, for overall dynamics of business activities.

The situation at the M. R. Štefánik Airport in Bratislava is complicated by the fact that the Vienna international airport Schwechat is situated less than 60 kilometers away from it. Despite that certain information on their possible cooperation has been cropping up since 1990, it has not happened to date. Will this state change?

Also political reasons and some apprehension of foreign capital have had their role to play, even I dare to say that the previous government suffered a phobia toward foreign investors. Last December, I discussed this subject matter in a meeting with Austrian Transport Minister. We agreed that appropriate experts of our sectors will maintain an analysis of what has been done to date and prepare steps to go ahead with the cooperation. I can imagine it with both parties seriously approaching. This is conditional on the two airports being functionally and rapidly interlinked by rail transport.

However short the leg, the European second largest river, Danube, meanders its way through our republic. What is in hand in the area of riverine and naval navigations?

This type of transportation at the moment does not pose a most urgent priority being handled presently in the sector. Slovenská plavba a prístavy (SpaP, a.s.), for one, has alrerady undergone the transformation into a state-wholly-owned joint-stock company and also considered is the possibility of a partial entry of an investor. We intend to retain both riverine and naval navigations and develop them significantly.

Naval navigation is part of SpaP, a.s., and is not posting up a loss. There are concrete suggestions even here as to whether or not to expand the fleet for example through deblocking the Russian debt. Thus instead of aircraft to purchase naval ships which are technically and qualitatively more acceptable for international navigation than the aircraft obtained so far. I point out, however, that this is not a key problem for Slovakia's transport policy in the light of goods flows. If the rate of return for naval navigation can be maintained, we will be concerned in having the Slovak flag cruise international waters.

What are possibilities of the sector in lowering the Slovak Republic's adverse balance of trade? We mean as high a gain of foreign exhanges as possible.

Your question is related particularly to transit transports by rail because privately-owned companies on their own commercial basis are already operating within the road cargo transportation. As I previously noted, I see in rail transport a large room for developing foreign trade in gaining the highest possible volume of transports. Following the government change, prerequisites for much more successful negotiations with railway representatives of the neighbouring states have been created in order to direct as many transits as possible, e.g. from Poland, Ukraine, Russsia, via Slovakia to south-western European countries. Also underpinned should be air transport as there is space at our airports. Thereby, besides rail, riverine and naval transports, a complex infrastructure for goods flows across the territory of the Slovak Republic would be established.

In concluding we want to dealt with the problems of the restoration of the war-destructed bridge in Štúrovo. Is this act in view of an unfavourable financial situation of the state necessary and if so, what do you expect of it?

I have never made a secret of it that the main effect is a political one. The restoration of the bridge body would be perceived by foreign countries as a positive signal that Slovakia and Hungary are able to cooperate and even overcome certain historic disproportions. And a concrete effect? Contacts for the citizens who live in Štúrovo and Ostrihom environs, many of them being bound through family links, will be streamlined. A unnegligible factor is also the intensification of both-side tourism. Thus in terms of transport this is not a key bridge that would develop, for example, transit transport. On the other hand, however, it is not a structure comparable to the highway construction. It is an essentially lower investment and if the previous aspects are taken in consideration, so the assumed investment proves justified.

Slovak Trade FORUM