THE acting director general of Republic of Srpska Railways (ŽRS), Dragan Zelenković, has warned that his company is facing shutdown following a dramatic loss of freight traffic, calling for urgent reform to ensure the survival of the railway network in Bosnia and Herzegovina.

In an open letter, Zelenković says that as well as putting 1700 jobs at ŽRS in jeopardy, the current situation also risks the shutdown of the country’s other railway, Bosnia and Herzegovina Federal Railways (ŽFBiH), “because they are interconnected and dependent on each other.”

“Ahead of us all is a crucial period for stabilising the system and implementing urgent reforms within the legal framework, which must ensure the long-term sustainability of the railway system,” Zelenković says.

On March 2, ŽRS ended movements of iron ore for producer Nova Ljubija from Omarska to the steelworks at Zenica. Nova Ljubija, the operator’s largest and most important client, had notified ŽRS of its intention to cease shipments on February 27, citing financial difficulties at the operator of the Zenica plant, Nova Željеzara Zenica, its sole customer.

Suzana Gašić, deputy director of Nova Ljubija, told local media that that Nova Željеzara Zenica had not been making payments to its iron ore supplier, adding that Nova Ljubija was preparing to enter insolvency proceedings.

Amidst uncertainty over the future of the Zenica steel plant, the loss of iron ore traffic is the latest in what Zelenković describes as a series of “tectonic shocks” experienced by ŽRS, which he says “we could neither suspect nor believe would happen.” These have included the shutdown of a coking plant in Lukavac, resulting in the loss of traffic worth Mark 5m ($US 595,790) a year.

Arcelor Mittal completed the sale of both the steelworks at Zenica and iron ore mine at Prijedor at the end of October 2025, and since then Zelenković says that ŽRS has continued its successful cooperation with Novi Željezara Zenica. Traffic to the steelworks including iron ore and other raw materials amounted to 1400 tonnes a year, worth Mark 19m and accounting for 60% of ŽRS revenue.

“We believe that at a time when we are facing a wide range of market challenges and economic turmoil, any additional crisis could have a domino effect,” Zelenković says. “The closure of Nova Željjezara would mean the loss of a significant number of jobs, which would further burden the economy and increase unemployment.”

“We appeal for urgent common-sense decisions. We appeal to all relevant government institutions and society as a whole to recognise the significance of the problems that are occurring, to recognise the importance of rail transport and to do everything in their power to preserve the economy and industry in our region.”