The Strategic Role of Railway Transportation in the Foreign Trade of the Republic of Moldova

Abstract

This paper analyzes the foreign trade of the Republic of Moldova and aims to highlight the strategic role of the railways in this proces. The research methodology consisted of statistical data analysis and review of relevant theoretical sources. According to available statistical data, Moldova’s trade is oriented towards the western markets. The most exported products are insulated wires and agricultural products, while the most imported ones are fossil fuels and electronics. The main transport mode used in trading is the road transport, also being the most accessible and flexible one. The railway transportation has a lower carbon print and is often cost optimal. The most imported and exported goods are typically resistant to spoilage and suitable for long distance transportation. Unfortunately the national railway system is not completely compatible with the EU one, creating a disadvantage in Moldova’s foreign trade and TranEuropean integration. A modern railway system would allow local businesses to export or import products with a lower carbon print and more efficiently. During this research was defined the contemporary trade orientation of the Republic of Moldova, alongside with the National Railway system’s flaws that prevent the efficient usage of this transportation mode. By overlapping this data, it was possible to determine the necessary improvements that will enhance the strategic role of the railway transportation in the foreign trade of the Republic of Moldova. The European Mechanism of Integration focuses not only on the process itself but also on durability and resilience of the applied measures. UDC: 338.47:339.5(478); JEL: F18; F02; F55; F67