Bulgaria is planning to privatise the freight division of state railways BDZ, as part of its plan to restructure the troubled state railways.

The privatisation plan is being pushed to allow private investors to make improvements that the state is failing to undertake.

In addition, the country is pushing to divest the freight division to reduce BDZ's BGN1bn ($754m) debt and secure a BGN600m ($452.6m) loan from the World Bank.

Transport Minister Alexander Tsvetkov has asked Bulgaria's Privatisation Agency to prepare the administrative procedure for the sale.

BDZ Tovarni Prevozi controls about 80% of the cargo transport operations in the country, but started facing competition from private players.

The idea to privatise the railway freight services was proposed by Bulgaria in late 2009 but the economic crisis caused likely investors from Germany and Austria to withdraw their bids, Railway Technology reports.