North Macedonia's State Rail Operator Had Just 9 of 62 Locomotives Working

North Macedonia's state railway operator had only nine working locomotives out of a fleet of 62 in a review of its 2024 operations, according to a State Audit Office report released on 3 November 2026. The same audit found that just two of 47 passenger carriages were in regular service and that 1,004 of 1,382 freight wagons lacked valid technical inspections. These are findings about the audited period, not a verified live count of vehicles operating on 5 November.

The operator, ŽRSM Transport AD Skopje, also reported a loss of MKD 331.796 million for 2024, down from roughly MKD 759.363 million the year before. Its accumulated accounting losses, including those carried forward from earlier years, reached MKD 6.754 billion, the auditors said. **Accumulated losses are not a finding that this amount was stolen, improperly paid or lost in a single year.**

Ageing trains and expired inspections

Of the company's 16 passenger trainsets, five were operational, according to the auditors. Among 1,382 freight wagons, 378 had valid inspections and were considered fit for service, while the remaining 1,004 were out of service because their required inspections had expired. The locomotive count implies that approximately 14.5% of the recorded fleet was operational at the time covered by the review.

The State Audit Office said ageing traction equipment, insufficient money for maintenance, delayed major repairs and irregular investment in spare parts and fleet renewal had left the company close to its technical operating limits. It acknowledged that an EBRD-financed rolling-stock renewal project had supplied new trainsets and wagons and financed workshop rehabilitation and locomotive work, but said significant fleet weaknesses persisted.

Financial controls under scrutiny

The audit identified accounting and control problems beyond the vehicle fleet. It said inventories worth MKD 342.345 million, representing 71% of the recorded stock, dated from before 2019 and had not received an appropriate valuation adjustment. Auditors also described a completed, operational railway-maintenance workshop that had not been properly recognised as real estate in the accounts, with associated depreciation not recorded.

The auditors said the operator had not recognised provisions for approximately MKD 260.982 million in probable outflows linked to concluded court proceedings, affecting the presentation of liabilities and results. This is an accounting-provision finding, not evidence that a new MKD 260.982 million payment was made or that a criminal offence occurred.

The report also criticised unsafe or inappropriate handling of petroleum products and old, improvised or uncalibrated fuel-measuring equipment. It warned of potential safety and environmental risks, without documenting a particular injury or environmental incident arising from those findings.

Operator cites a recovery plan

The State Audit Office said ŽRSM Transport's director submitted a written response on 2 November 2026 describing measures already taken in response to recommendations, which forms part of the published final audit. Local reporting by METLA quoted the operator as saying it had been working on financial and operational stabilisation since July 2024, with actions included in a 2026–2027 plan. It characterised many weaknesses as long-standing and systemic.

That response does not establish that the fleet has already been repaired or the accounting deficiencies resolved. The next measurable questions are how many locomotives and freight wagons regain service certification, whether the operator adjusts inventory and liability figures, and what independently documented results emerge from the recovery plan.

The 3 November publication concerns the 2024 accounts and operating controls. The audit's findings warrant public oversight of rail reliability and financial reporting; they do not by themselves establish theft, bribery or a conviction against any manager.