To reform the loss-incurring Hellenic Railways Organization (OSE), the Greek Government has divided the rail management into two companies; Trainose, to handle train operations and Ergose, to manage infrastructure.
Worth €14.3bn, real estate assets will, however, continue to be handled by OCE.
The other reforms include doubling fares by 2011 and making nearly 3,000 employees paid reserves.
A 33% hike in fares is due in August 2009, which aims at increasing rail fares up to 80% of those charged on intercity bus services.
While higher fares can increase OSE's revenue by €5.4m this year, €22.8m in 2010 and €39m in 2011, using employees as paid reserves can save the railway €350m over ten years.
OSE loses around €1bn every year and has accumulated debts of €9bn, the government said.