Catching a Train to a Better Future: Serbia’s Railway Revival and Eastern European Integration

Importance of Railway Transport and Serbia Lagging Behind

It is widely known that railway transport offers many benefits that other ground alternatives do not. Railways enable the mass transport of goods and people at a lower cost and with less pollution. Also, aside from being more energy-efficient than the mentioned alternatives, railways play a crucial part in regional integration, linking urban and rural areas, and people from various nations.

Shortly after its independence, Serbia recognized the benefits of railways, and the first Belgrade-Niš line was opened in 1884, connecting the country with the rest of Europe. Unfortunately, though, the later expansion that took place in the meantime has declined and degraded at the end of the 20th century, due to a lack of sustainment and reinvestment.

On the contrary, in Europe, there has been a continuous surge in railway projects, with the key current initiator being the TEN-T (Trans-European Transport Network), which puts a special emphasis on railway transport. While Serbia stagnated, Europe did not wait. Fortunately, reintegration of the country in the European network has already commenced (TEN-T’s expansion to the Western Balkans in 2023), but substantial work is yet to be done.

Three of the EU’s nine TEN-T corridors now extend through the Balkans, reflecting the region’s critical role as a bridge between Central/Eastern Europe and the Mediterranean. The Balkan peninsula, geographically and culturally tied to Eastern Europe, must not remain a missing link. By participating fully in TEN-T and related initiatives, countries like Serbia can ensure they are connected to Europe’s main arteries for trade and travel, rather than left on the periphery.

Serbia’s Railways: Current State and Regional Hub Role

Pan-European Corridor X (shown in red) runs through Serbia from Belgrade to Niš and Skopje toward Thessaloniki, with branches to Budapest and Sofia. Serbia’s location makes it a natural rail hub between Central Europe and the Balkans.

Serbia sits at a crucial crossroads in the Balkans, where major European transport routes converge. The primary north–south artery, the Pan-European Corridor X, cuts straight through Serbia, linking Central Europe with Greece, and passes through key hubs like Belgrade and Niš. From Niš, Corridor Xc branches east toward Sofia and continues to Istanbul, positioning Serbia as the natural land bridge between the EU core and both the Aegean Sea and Turkey. With borders shared with seven countries and active rail connections to all of them except Albania, Serbia has a real opportunity to establish itself as a regional railway hub, if it fully leverages this strategic location.

The problem arises not from geography, but from decades of neglect and underinvestment. The network totals about 3438 km, but only 8.4% is double-tracked, and one-third is electrified. The direct consequence of that is the slowness of Serbia’s railway transport, and as a result, there is a lack of competitiveness with the other alternatives. For example, the time needed to arrive in Niš from Belgrade (239km) by train is 4h on average, and by car, 2.5h.

The good news is that a major modernization wave is underway. Backed by European partners, Serbia is now upgrading its core lines to modern standards. In 2023, the EU approved a €2.2 billion package to modernize Serbia’s Belgrade–Niš railway, cutting travel time from over 4h to under two. This project, praised by EU officials as vital for connecting Central Europe with the Western Balkans and beyond, positions Serbia to become a key rail logistics hub in Southeast Europe.

With enough initiative and strategic location between EU and non-EU states, Serbia now has the opportunity to transform its outdated rail system into a regional transit link between major European corridors, from the Danube to the Aegean and Black Seas. But the Belgrade-Niš railway would be just the beginning.

Paths to modernization

The revitalization of the Belgrade–Niš railway is only the starting point. Serbia’s rail network is poised for further expansion. The following section explores additional potential strategies for enhancing Serbia’s connectivity and strengthening its role as a key transit hub in the region.

Finishing the Belgrade–Budapest Railway as a gateway to the north

A key project for Serbia’s integration is the high-speed Belgrade–Budapest railway, which will connect Serbia directly to Central Europe’s rail network. Built along a historic north–south axis dating from the Austro-Hungarian era, this route links Serbia with Budapest, a major hub for reaching Vienna, Prague, Warsaw, and beyond. The 200 km/h line will enable time-saving passenger and freight transit across Central and Eastern Europe.

Route of the ongoing project, Rail Baltica (Source: RB Rail AS. (2017, Nov 15). Rail Baltica as part of the North Sea – Baltic Corridor (RBINFO.png) [map]. Wikimedia Commons. CC BY‑SA 4.0.)

Crucially, Hungary’s network connects further north via Rail Baltica (under construction), allowing future rail links from Belgrade to the Baltic Sea. At the same time, Hungary is part of the Baltic–Adriatic Corridor, linking Polish ports (Gdańsk, etc.) in the north to Adriatic ports in the south, including Trieste, Venice, Ravenna, and Bari.

By connecting to Hungary’s rail system, Serbia secures indirect access to both the Baltic and Adriatic Seas, linking its economy with Polish ports in the north and Italian and Slovenian ports in the west. This northward corridor reinforces Serbia’s place along the emerging North–South rail backbone of Eastern Europe, a strategic axis strongly backed by the Three Seas Initiative, in which Serbia can play an important logistical role.

Route of the Baltic-Adriatic corridor (European Commission – Directorate‑General for Mobility and Transport. (2024). Baltic Sea – Adriatic Sea Corridor map [PDF]. European Union. Available at)

The Belgrade–Budapest railway, a flagship project heavily financed and constructed by Chinese state firms under the Belt and Road Initiative, has also come to illustrate the potential risks of limited transparency in large-scale infrastructure deals. In November 2024, the collapse of the newly built Novi Sad station canopy tragically killed 16 people, an incident linked to substandard construction by a Chinese contractor working under a fast-tracked, non-transparent agreement.

The tragedy sparked public debate over the quality and accountability of certain foreign infrastructure projects. Critics argue that non-transparent contracts have allowed foreign companies to prioritize speed and influence over long-term safety and quality. The fallout has prompted Serbia to reassess aspects of these partnerships. While the project is moving forward, authorities now stress the need for clearer standards, transparency, and oversight. In the future, Serbia, together with its Western partners, should ensure that all strategic infrastructure meets European quality benchmarks and is delivered with full accountability.

Belgrade–Timișoara: Connecting to Romania and the “Rail-2-Sea” Corridor

While north–south rail links dominate attention, Serbia has a clear opportunity to strengthen east–west connectivity, particularly with Romania. The Belgrade–Timișoara route stands out: Serbia already operates a line to Vršac, near the Romanian border, while Romania runs a line from Timișoara to Stamora Moravița. However, the cross-border section (18km) is outdated and neglected; single-track, unelectrified, with no regular passenger service.

Modernizing this link would reconnect Serbia directly with Romania’s rail network, and importantly, tie into Rail-2-Sea, the Three Seas Initiative’s strategic corridor linking the Baltic (Gdańsk) with the Black Sea (Constanța). For Serbia, this is a high-impact opportunity to join a major European rail axis and expand its access to seaports and trade routes.

Timișoara, in western Romania, sits along one of the corridor’s key alignments (Poland–Slovakia/Hungary–Romania), and Romania is already upgrading surrounding rail links with EU funding.

If Serbia modernizes the Belgrade–Timișoara route, it can directly tap into this strategic axis. For Serbia, access to Constanța, a major Black Sea port, opens significant trade and energy diversification opportunities, especially as Constanța plays a growing role in Ukrainian grain exports, the future reconstruction of the country, and oil/LNG transit.

Upgrading the 78km between Vršac and Timișoara is a low-cost, high-reward project that would give Serbia a second seaport outlet (alongside Bar) and position it within a Baltic–Black Sea corridor, a move with real economic and strategic weight.

Niš–Dimitrovgrad–Sofia: Linking to Bulgaria and Greece’s LNG Gateway

Another critical rail corridor under development is the Niš–Sofia route via Dimitrovgrad, forming Corridor Xc—Serbia’s direct rail link to Bulgaria and Turkey. Long outdated, this single-track, non-electrified line is now being fully modernized with EU support. Work officially began in late 2023, covering approximately 80 km of track refurbishment and a 22 km bypass around Niš. The project finances include €108 million in EU grants and a €134 million EIB loan, with the aim of completing by 2027 under the Western Balkans Investment Framework.

This upgrade will more than double train speeds (from 50 to 120 km/h), and significantly increase passenger and freight volume. Once both Serbia and Bulgaria finish upgrades, a fully electric rail link from Belgrade to Istanbul will be operational, boosting freight and passenger transit between Europe and the Orient.

Strategically, the corridor also enables southbound links to Greece. From Sofia, one route leads to Thessaloniki (if modernized; an important Balkan port), while another via Plovdiv–Svilengrad connects to Alexandroupolis, home to a new LNG terminal key for energy diversification.

Belgrade–Skopje–Thessaloniki: Reviving the Southern Corridor

Serbia’s rail revival will remain incomplete unless the Belgrade–Skopje–Thessaloniki corridor is fully restored as a continuous electrified link. Once operational, this route would reestablish a historical axis via Preševo and Skopje down to Greece’s port of Thessaloniki, reviving the legacy of the Belgrade–Thessaloniki Express. That service was suspended in early 2011, when Greece axed all international train routes during its economic crisis, severing rail links with Serbia, Bulgaria, Romania, Turkey, and North Macedonia. For over a decade, Serbia has lacked passenger connections to Greece, and freight has increasingly shifted to road, bypassing traditional rail routes.

Today, a convergence of upgrading efforts signals positive change, though progress is uneven. Serbia’s renovation of the Belgrade–Niš–Skopje corridor, financed through EU funding, is officially scheduled for completion by 2028, restoring high-speed, electrified service. However, work on the project is already experiencing delays, and meeting the 2028 deadline appears optimistic. A key obstacle has been the slow process of expropriating land required for the rail route, which has significantly slowed construction.

In November 2023, Serbia and North Macedonia signed an agreement committing to modernize the Skopje–Belgrade line, deepening binational rail cooperation. Yet, the success of this broader modernization push will depend on addressing administrative bottlenecks and ensuring that legal, technical, and property issues do not undermine project timelines.

On the Greek side, upgrades are underway on the Thessaloniki–Idomeni border line, encouraging track and signaling modernization. Thessaloniki, Greece’s second-busiest port, already serves as a critical trade gateway. Serbia, which recorded about €750 million in trade with Greece in 2022, currently lacks a direct rail corridor to access this hub efficiently.

Modernizing the Belgrade–Bar Line: Serbia’s Adriatic Lifeline

The Belgrade–Bar railway is Serbia’s crucial rail link to the Adriatic Sea, connecting to the Port of Bar in Montenegro. While Bar is smaller than Piraeus or Constanța, it handles 30% of Serbia’s container traffic and is vital for bulk goods like oil, grain, and minerals. This 1976 rail line, an engineering feat through mountainous terrain, remains Serbia’s maritime lifeline, yet it suffers from aging infrastructure, steep gradients, and low speeds (30–50 km/h in places). The single-track, electrified route takes 10–13 hours for passengers, limiting competitiveness and freight capacity.

Although the rail upgrade is underway, the current funding doesn’t cover the full scope of work, and significant additional investment will be needed to fully modernize the corridor. Plans include raising speeds, increasing axle loads, and updating electrical systems. Port upgrades in Bar would complement this, streamlining ship-to-rail logistics.

Investment in modernization could cut travel to 7–8 hours and double freight capacity. Importantly, full electrification upgrades align with green transport goals and cut emissions.

Policy Recommendations: A Transatlantic Boost for Serbia’s Railway Revival

Here are concrete policy proposals to fully unlock the potential of Serbia’s railway revitalization, and, through it, to connect the Balkans with Eastern Europe and integrate the region into a broader strategic transport and energy network:

1. Clearly Communicate the US Strategic Interest to the Administration: The US could treat Serbia’s rail modernization as a strategic priority. Upgraded rail links strengthen Eastern Europe’s autonomy, counter China’s Belt and Road influence, and support energy diversification via LNG from Alexandroupolis. Tools like DFC and EXIM can finance projects and export US rail technology, ensuring transparency and alignment with EU standards. Modern rail also enables NATO mobility and strengthens regional security. This isn’t charity, it’s a direct investment in US interests, warranting bipartisan support in Washington, much like US backing for the Three Seas Initiative.

   
   

2. Launch a US–EU Rail Summit: A joint US–EU Rail Summit should bring together ministers from Serbia, Poland, Hungary, Romania, Bulgaria, Greece, North Macedonia, Montenegro, Austria, Czechia, Slovakia, Italy, and the Baltic states, EU and US officials, and financiers (e.g., DFC, EXIM etc.) to align projects, funding, and priorities. Key outcomes would be coordinated timelines, joint financing options, and working groups for the mentioned corridors. Tracking implementation would also be needed.

   
   

3. Pursue Focused Bilateral Diplomacy: Alongside regional efforts, targeted diplomacy by Serbia with each country ensures political buy-in. Engage Poland and Hungary on North–South links, Greece on expanding Thessaloniki’s rail reach, Romania/Bulgaria on key cross-border routes, and North Macedonia on Corridor X. Benefits of Western-backed projects and reduced reliance on China should be highlighted during the talks.

   
   

4. Use DFC Blended Finance: DFC could provide low-interest loans for Serbian rail projects, in partnership with EU funds. DFC’s involvement ensures transparency and can attract other investors. A DFC team in Belgrade could help structure deals and accelerate timelines, reducing fiscal strain and locking in Western engagement.

   
   

5. Leverage EXIM for US Tech Exports: EXIM could finance US rail exports (locomotives, signaling, and rolling stock) to Serbia. This supports NATO-compatible tech adoption and reduces dependence on Chinese suppliers. EXIM can offer export credits and hold training for Serbian engineers. This ensures Serbia modernizes with US know-how, deepening industrial ties and long-term alignment.

   
   

6. Link Rail to US–Serbia Energy Deal: Serbia’s 2024 energy agreement with the US (indirectly emphasizing LNG from Alexandroupolis) can support rail upgrades on energy corridors. The Niš–Dimitrovgrad rail line complements Serbia’s gas interconnector to Bulgaria, enabling freight and energy transport. The US should encourage Greece and Bulgaria to modernize the Svilengrad–Alexandroupolis rail link. Rail also aids energy logistics (turbines, minerals), supporting a resilient, integrated energy-transport system.

   
   

7. Create Rail Innovation Center in Belgrade: A US–EU–Serbia rail innovation center in Belgrade can train a skilled workforce, pilot new technologies, and drive joint research. Serbia, as a future rail hub, is well-placed to merge US freight efficiency with EU sustainability. Funded by the EU, DFC, and Serbia, the center could start at the University of Belgrade, expanding into labs and testing facilities. This builds human capital and ensures Serbia becomes a regional rail leader, not just a consumer.