Officials in Slovakia have confirmed an ambitious plan to redevelop the state railway will be put into action following government approval.

Developments will be part financed by the sale of railway infrastructure, with the government seeking to cut subsidies granted to the sector moving forward.

Under the proposals a 66 per cent stake in the cargo unit - ZSSK Cargo – will be offered for sale, with a buyer expected to be named by June 2012.

Transportation minister Jan Figel explained in an interview with Bloomberg 5,000 jobs - or one-sixth of the workforce – would be lost within three years.

Speaking after a cabinet meeting in Bratislava today, he confirmed support to the railway sector would be greatly cut.