The efficiency of the railway system is a very important issue around the world, primarily for the ministers responsible for transport, and railway infrastructure managers in countries burdened by fiscal constraints. In this paper, we show the basic guidelines for the development of railway transport in the Republic of Croatia, as well as the results of negotiations between the Republic of Croatia and the EU in the accession process related to the field of rail transport and inclusion of Pan-European corridors in the Republic of Croatia in the Trans-European Transport Network. The main problems of rail transport are related to the existing rail networks, inadequate rail and rolling stock, as well as the outdated railway signalling and electronic communication systems. On the one hand, the railways are under constant pressure to maintain low operating costs, often because of pressure from the market or due to the unavailability of public funds as a result of predetermined national economic, social and transport priorities. On the other hand, an increase in the demand for transport by rail, of both passengers and cargo, is taking place after decades of its continuous decline, which requires immediate additional investments in rail infrastructure and accompanying rolling stock, under pressure to simultaneously reduce operating costs.