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RZD: 11.3% Rise in Cargo Transportation in January-July 2010 
Freight volume carried by RZD in the first 7 months of 2010 totalled 688.1 million tons, an increase of 11.3% as compared with the same period last year.
According to the latest figures, in the first 7 months Russian Railways shipped more than 166 million tons of coal (+10.2%), more than 7.4 million tons of coke (+37.7%), over 145.7 million tons of oil and petroleum products (+10%), 58.2 million tons of iron and manganese ore (+9.7%), 41.7 million tons of ferrous metals (+18.2%), about 11 million tons of ferrous metal scrap (+39.6%), about 26.5 million tons of chemicals and fertilizers (+21.3%), more than 18.3 million tons of cement (+12.9%), over 25.5 million tons of timber (5.5%), about 77.4 million tons of building materials (+7.2%), 14.7 million tons of ferrous and sulphur raw materials (+13.2%), 16.8 million tons of chemicals and soda (+23.9%), 19.9 million tons of industrial raw materials and moulding materials (+24.8%), 10.1 million tons of containerised cargo (+19.6%) and 10.5 million tons of grain and cereals (-18.3%).
Russian Railways recorded over 1,147 billion tariff ton-kilometers from January to July 2010, 11.1% more than in the same period in 2009.

LDz Cargo: 10.3% Decline in Cargo Transportation	
LDz Cargo, a subsidiary of Latvijas dzelzce (LDz), specializing in freight transportation, carried 25.289 million tons of cargo, which was 10.3% less compared with the first half of the previous year, when 28.179 million tons was transported.
According to the company’s information, import made the larger share of the transported volume – 21.817 million tons (-12.3% year-on-year). Of that, 20.012 million tons (-14.1%) was transported via port stations.
Transportation of export cargo grew by 44.4% to 1.643 million tons. Of this, 700,000 tons (+37.3%) was carried via port stations. 
Onland transit amounted to 1.269 million tons (+19.3%), and inland transportation fell to 560,000 tons (-7%).

New high-speed route opens in Russia
On 30 July 2010, Sapsan trains began running on the Moscow – Nizhny Novgorod line. With the launch of the Sapsan service between Moscow and Nizhny Novgorod, Russian Railways has established a new high-speed route: Nizhny Novgorod – Moscow – St Petersburg.
The ceremonial launch of the new Sapsan route took place at Nizhny Novgorod’s Moskovsky Station. Russian Railways President Vladimir Yakunin took part in the event.
“Today we have witnessed one more landmark step. This day has been eagerly awaited in Nizhny Novgorod, because now this city, with its population of over a million, will be linked to Moscow and St Petersburg by a high-speed, reliable, and comfortable means of transport”, Vladimir Yakunin said at the ceremony.
Sapsan services have been running between Moscow and St Petersburg since 17 December 2009, the company president remarked.
“Over this time, Sapsan trains have carried more than 880,000 passengers. The average occupancy rate of the trains is continually growing, and has reached almost 86%”.
“Sapsan is becoming a symbol of everything new and progressive. It is not only changing the profile of domestic rail transport. Sapsan represents our country’s prudent approach to development, with an emphasis on breakthrough technology”, Vladimir Yakunin said at the close of the ceremony.
To prepare for the high-speed service, the infrastructure oft the Moscow – Nizhny Novgorod line was modernized. The work was conducted from 2006 to 2010. Over this period, construction and reconstruction was carried out at 54 passenger platforms, 139 km of overhead lines were fully overhauled, barriers were built along 331 km of the route, and various other improvements were made.

Throughput of Russian seaports rises 10% 
Six-month freight flows volume handled in Russian seaports gained 10% to 260 million tons, the Russian Ministry of Transport said.
The statement said the ports handled 103.7 million tons of dry cargo, or a 14%-percent rise compared with six month of 2009 and 156.2 million tons of liquid cargo, an 8.2-percent growth. 
17.8 million tons of cargo was carried by sea transport, 1.5% up year-on-year. Of this, coastal trade volume amounted to 3.8 millions tons, a 17% increase compared with the first six months of 2009. International sea transportation volume was 14 million tons, thus there was a 2% decline comparing with the similar period of 2009. 
According to expert estimates, the throughput at Russian seaports in 2010 could reach 520 million tons. In 2010, their handling capacity is planned to expand by 30 million tons if the financing is sufficient. 
In 2010, RUR 103 billion is to be spent on Russian port infrastructure development. Of that, RUR 87 billion is to be invested by private companies, which exceeds the sum to be invested by the state more than five-fold.

KTZ Plans to Increase Cargo Transportation Tariffs by 15% in 2011
Kazakh national railway company Kazakhstan Temir Zholy (KTZ) plans to increase tariffs on freight transportation by 15% in 2011, Edil Iskakov, advisor to the president of the company, told journalists in July 2010 in Alma-Ata.
“We plan an increase in tariffs of cargo transportation. Tariffs on passenger transportation may grow either, though this issue is still under discussion. Tariffs on passenger transportation are a social matter, so we should think twice before increasing them. We are going to increase tariffs on cargo transportation by 15% on average,” he said.
In the words of Mr Iskakov, all these measures are taken to make the national company more efficient. “As you know, passenger transportation is unprofitable business everywhere and require state subsides. A growth of passenger tariffs this year is a necessary thing to improve the efficiency of the company’s work. All these measures are targeted at obtaining necessary funds to invest into rolling stock,” he added.
“There is a definite plan of actions and a 5-year programme for passenger transportation development, which envisage all investments necessary to renew the rolling stock. They envisage all mechanisms – the state budget, subsides, as well as systematic tariff increase – to reach lossless level. The problem won’t be solved at once. It won’t be solve this year, for sure,” he said.

One System to Manage Cargo Wagons Park of Four Countries
The Heads of the railway national companies of Ukraine, Russia, Belarus, and Kazakhstan signed a memorandum of intentions to develop a new conceptual mechanism to manage the rolling stock – a Single system to manage the park of cargo wagon regardless their form of ownership.
The document became the result of a round-table discussion “Principles of Cargo Wagons Exploitation in “1520 Area” under New Conditions” held in Kiev in July.
The target of the initiative is to increase the efficiency of rolling stock considering present economic conditions. Ukrzaliznytsya (The Ukrainian Railways) emphasised that there is a serous gap in the efficiency of rolling stock of different forms of ownership. If a cargo railcar from Ukrzaliznytsya’s inventory park pays off in 6-7 years, a similar private wagon pays off in 21-22 years. Taking into account the prospects for freight flows recommence and ageing rolling stock, this trend may lead to a shortage in transport capacities of railways. 
The situation becomes even worse since the share of the private park on the 1520 railway network is growing. Nowadays, private railcars make over 55.2% (over 808,000 units) of the total freight wagon park in the CIS. The share of inventory wagons is 44.8% or 656,000 units. 
The next step – signing of an international agreement on the Single System development – is to be made at the meeting of the CIS Railway Transport Council in autumn.

Eesti Raudtee: Throughput Up
The throughput of the Estonian railway company Eesti Raudtee amounted to 14.25 million tons in January-June 2010, which was by 16.7% more than in the first half of 2009.
Transit cargo made the lion share in the volume – 11.66 million tons. Its transportation grew by 14.4% year-on-year.
Domestic transportation amounted to 1.86 million tons (+43%).
To remind, in 2009 Eesti Raudtee transported 25.38 million tons. This year the company plans to transport approximately 23 million tons.

More transit for Byelorussian Railway	
In January-June 2010, transit cargo transportation via the Byelorussian railway network grew by 7.9% year-on-year to 23.1 million tons.
During this period, the Byelorussian Railway (BZD) carried 65.8 million tons of cargo, a 3.3% increase compared with the first half of 2009. 
The results of the first half of the year proved the stable dynamics of the increase in freight volume carried by BZD, which recommenced starting from the beginning of the year. 
The Byelorussian Railway is an important link to strengthen commercial and economic ties between the Kaliningrad region and Belarus and the regions of Russia. That is why the recommence of the transit freight flow from Russia via the ports in the Kaliningrad region was the most significant success for the Byelorussian Railway in the transit sector. In 2009, there was a decline in cargo transit in this direction because of the severe competition among freight transporters – Latvian and Lithuanian ports, and Russian harbours at the Baltic and the Black seas. Already in January-June 2010, the volume of transit transportation via the Kaliningrad region amounted to 6.8 million tons (+45% year-on-year).
Starting from January 2010, there is a stable trend of the rise in transit transportation of Russian cargoes (including the Kaliningrad region) – by 7.6% year-on-year, Polish freight – by 26.8%, Lithuanian one – by 10.4%, Estonian one – by 38.2%. Transit transportation from Germany doubled, and that one from Czech Republic increased eightfold. In the first half of 2010, BZD increased the volume of transit transportation of oil and petrochemicals by 30.1% compared with the similar period of 2009, that one of ferrous metals – by 86%, cars – by 80.5%, chemicals and soda – by 12.5%. Transportation of transit ore grew almost 7-fold.
The Byelorussian Railway pays much attention to improvement of the technology of freight transportation in direct fast trains, especially container ones. BZD has a large container park. Its existing capacities allow to service a freight flow twice as large as the current one. In the first half of 2010, the amount of transit containers transported via the Byelorussian railway network was 52,800, a 59.5% increase compared with the similar period of 2009. All container trains carried 99.800 TEU, a 60.1% growth year-on-year.
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RZD: 11.3% Rise in Cargo Transportation in January-July 2010 
Freight volume carried by RZD in the first 7 months of 2010 totalled 688.1 million tons, an increase of 11.3% as compared with the same period last year.
According to the latest figures, in the first 7 months Russian Railways shipped more than 166 million tons of coal (+10.2%), more than 7.4 million tons of coke (+37.7%), over 145.7 million tons of oil and petroleum products (+10%), 58.2 million tons of iron and manganese ore (+9.7%), 41.7 million tons of ferrous metals (+18.2%), about 11 million tons of ferrous metal scrap (+39.6%), about 26.5 million tons of chemicals and fertilizers (+21.3%), more than 18.3 million tons of cement (+12.9%), over 25.5 million tons of timber (5.5%), about 77.4 million tons of building materials (+7.2%), 14.7 million tons of ferrous and sulphur raw materials (+13.2%), 16.8 million tons of chemicals and soda (+23.9%), 19.9 million tons of industrial raw materials and moulding materials (+24.8%), 10.1 million tons of containerised cargo (+19.6%) and 10.5 million tons of grain and cereals (-18.3%).
Russian Railways recorded over 1,147 billion tariff ton-kilometers from January to July 2010, 11.1% more than in the same period in 2009.

LDz Cargo: 10.3% Decline in Cargo Transportation	
LDz Cargo, a subsidiary of Latvijas dzelzce (LDz), specializing in freight transportation, carried 25.289 million tons of cargo, which was 10.3% less compared with the first half of the previous year, when 28.179 million tons was transported.
According to the company’s information, import made the larger share of the transported volume – 21.817 million tons (-12.3% year-on-year). Of that, 20.012 million tons (-14.1%) was transported via port stations.
Transportation of export cargo grew by 44.4% to 1.643 million tons. Of this, 700,000 tons (+37.3%) was carried via port stations. 
Onland transit amounted to 1.269 million tons (+19.3%), and inland transportation fell to 560,000 tons (-7%).

New high-speed route opens in Russia
On 30 July 2010, Sapsan trains began running on the Moscow – Nizhny Novgorod line. With the launch of the Sapsan service between Moscow and Nizhny Novgorod, Russian Railways has established a new high-speed route: Nizhny Novgorod – Moscow – St Petersburg.
The ceremonial launch of the new Sapsan route took place at Nizhny Novgorod’s Moskovsky Station. Russian Railways President Vladimir Yakunin took part in the event.
“Today we have witnessed one more landmark step. This day has been eagerly awaited in Nizhny Novgorod, because now this city, with its population of over a million, will be linked to Moscow and St Petersburg by a high-speed, reliable, and comfortable means of transport”, Vladimir Yakunin said at the ceremony.
Sapsan services have been running between Moscow and St Petersburg since 17 December 2009, the company president remarked.
“Over this time, Sapsan trains have carried more than 880,000 passengers. The average occupancy rate of the trains is continually growing, and has reached almost 86%”.
“Sapsan is becoming a symbol of everything new and progressive. It is not only changing the profile of domestic rail transport. Sapsan represents our country’s prudent approach to development, with an emphasis on breakthrough technology”, Vladimir Yakunin said at the close of the ceremony.
To prepare for the high-speed service, the infrastructure oft the Moscow – Nizhny Novgorod line was modernized. The work was conducted from 2006 to 2010. Over this period, construction and reconstruction was carried out at 54 passenger platforms, 139 km of overhead lines were fully overhauled, barriers were built along 331 km of the route, and various other improvements were made.

Throughput of Russian seaports rises 10% 
Six-month freight flows volume handled in Russian seaports gained 10% to 260 million tons, the Russian Ministry of Transport said.
The statement said the ports handled 103.7 million tons of dry cargo, or a 14%-percent rise compared with six month of 2009 and 156.2 million tons of liquid cargo, an 8.2-percent growth. 
17.8 million tons of cargo was carried by sea transport, 1.5% up year-on-year. Of this, coastal trade volume amounted to 3.8 millions tons, a 17% increase compared with the first six months of 2009. International sea transportation volume was 14 million tons, thus there was a 2% decline comparing with the similar period of 2009. 
According to expert estimates, the throughput at Russian seaports in 2010 could reach 520 million tons. In 2010, their handling capacity is planned to expand by 30 million tons if the financing is sufficient. 
In 2010, RUR 103 billion is to be spent on Russian port infrastructure development. Of that, RUR 87 billion is to be invested by private companies, which exceeds the sum to be invested by the state more than five-fold.

KTZ Plans to Increase Cargo Transportation Tariffs by 15% in 2011
Kazakh national railway company Kazakhstan Temir Zholy (KTZ) plans to increase tariffs on freight transportation by 15% in 2011, Edil Iskakov, advisor to the president of the company, told journalists in July 2010 in Alma-Ata.
“We plan an increase in tariffs of cargo transportation. Tariffs on passenger transportation may grow either, though this issue is still under discussion. Tariffs on passenger transportation are a social matter, so we should think twice before increasing them. We are going to increase tariffs on cargo transportation by 15% on average,” he said.
In the words of Mr Iskakov, all these measures are taken to make the national company more efficient. “As you know, passenger transportation is unprofitable business everywhere and require state subsides. A growth of passenger tariffs this year is a necessary thing to improve the efficiency of the company’s work. All these measures are targeted at obtaining necessary funds to invest into rolling stock,” he added.
“There is a definite plan of actions and a 5-year programme for passenger transportation development, which envisage all investments necessary to renew the rolling stock. They envisage all mechanisms – the state budget, subsides, as well as systematic tariff increase – to reach lossless level. The problem won’t be solved at once. It won’t be solve this year, for sure,” he said.

One System to Manage Cargo Wagons Park of Four Countries
The Heads of the railway national companies of Ukraine, Russia, Belarus, and Kazakhstan signed a memorandum of intentions to develop a new conceptual mechanism to manage the rolling stock – a Single system to manage the park of cargo wagon regardless their form of ownership.
The document became the result of a round-table discussion “Principles of Cargo Wagons Exploitation in “1520 Area” under New Conditions” held in Kiev in July.
The target of the initiative is to increase the efficiency of rolling stock considering present economic conditions. Ukrzaliznytsya (The Ukrainian Railways) emphasised that there is a serous gap in the efficiency of rolling stock of different forms of ownership. If a cargo railcar from Ukrzaliznytsya’s inventory park pays off in 6-7 years, a similar private wagon pays off in 21-22 years. Taking into account the prospects for freight flows recommence and ageing rolling stock, this trend may lead to a shortage in transport capacities of railways. 
The situation becomes even worse since the share of the private park on the 1520 railway network is growing. Nowadays, private railcars make over 55.2% (over 808,000 units) of the total freight wagon park in the CIS. The share of inventory wagons is 44.8% or 656,000 units. 
The next step – signing of an international agreement on the Single System development – is to be made at the meeting of the CIS Railway Transport Council in autumn.

Eesti Raudtee: Throughput Up
The throughput of the Estonian railway company Eesti Raudtee amounted to 14.25 million tons in January-June 2010, which was by 16.7% more than in the first half of 2009.
Transit cargo made the lion share in the volume – 11.66 million tons. Its transportation grew by 14.4% year-on-year.
Domestic transportation amounted to 1.86 million tons (+43%).
To remind, in 2009 Eesti Raudtee transported 25.38 million tons. This year the company plans to transport approximately 23 million tons.

More transit for Byelorussian Railway	
In January-June 2010, transit cargo transportation via the Byelorussian railway network grew by 7.9% year-on-year to 23.1 million tons.
During this period, the Byelorussian Railway (BZD) carried 65.8 million tons of cargo, a 3.3% increase compared with the first half of 2009. 
The results of the first half of the year proved the stable dynamics of the increase in freight volume carried by BZD, which recommenced starting from the beginning of the year. 
The Byelorussian Railway is an important link to strengthen commercial and economic ties between the Kaliningrad region and Belarus and the regions of Russia. That is why the recommence of the transit freight flow from Russia via the ports in the Kaliningrad region was the most significant success for the Byelorussian Railway in the transit sector. In 2009, there was a decline in cargo transit in this direction because of the severe competition among freight transporters – Latvian and Lithuanian ports, and Russian harbours at the Baltic and the Black seas. Already in January-June 2010, the volume of transit transportation via the Kaliningrad region amounted to 6.8 million tons (+45% year-on-year).
Starting from January 2010, there is a stable trend of the rise in transit transportation of Russian cargoes (including the Kaliningrad region) – by 7.6% year-on-year, Polish freight – by 26.8%, Lithuanian one – by 10.4%, Estonian one – by 38.2%. Transit transportation from Germany doubled, and that one from Czech Republic increased eightfold. In the first half of 2010, BZD increased the volume of transit transportation of oil and petrochemicals by 30.1% compared with the similar period of 2009, that one of ferrous metals – by 86%, cars – by 80.5%, chemicals and soda – by 12.5%. Transportation of transit ore grew almost 7-fold.
The Byelorussian Railway pays much attention to improvement of the technology of freight transportation in direct fast trains, especially container ones. BZD has a large container park. Its existing capacities allow to service a freight flow twice as large as the current one. In the first half of 2010, the amount of transit containers transported via the Byelorussian railway network was 52,800, a 59.5% increase compared with the similar period of 2009. All container trains carried 99.800 TEU, a 60.1% growth year-on-year.
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RZD: 11.3% Rise in Cargo Transportation in January-July 2010 
Freight volume carried by RZD in the first 7 months of 2010 totalled 688.1 million tons, an increase of 11.3% as compared with the same period last year.
According to the latest figures, in the first 7 months Russian Railways shipped more than 166 million tons of coal (+10.2%), more than 7.4 million tons of coke (+37.7%), over 145.7 million tons of oil and petroleum products (+10%), 58.2 million tons of iron and manganese ore (+9.7%), 41.7 million tons of ferrous metals (+18.2%), about 11 million tons of ferrous metal scrap (+39.6%), about 26.5 million tons of chemicals and fertilizers (+21.3%), more than 18.3 million tons of cement (+12.9%), over 25.5 million tons of timber (5.5%), about 77.4 million tons of building materials (+7.2%), 14.7 million tons of ferrous and sulphur raw materials (+13.2%), 16.8 million tons of chemicals and soda (+23.9%), 19.9 million tons of industrial raw materials and moulding materials (+24.8%), 10.1 million tons of containerised cargo (+19.6%) and 10.5 million tons of grain and cereals (-18.3%).
Russian Railways recorded over 1,147 billion tariff ton-kilometers from January to July 2010, 11.1% more than in the same period in 2009.

LDz Cargo: 10.3% Decline in Cargo Transportation	
LDz Cargo, a subsidiary of Latvijas dzelzce (LDz), specializing in freight transportation, carried 25.289 million tons of cargo, which was 10.3% less compared with the first half of the previous year, when 28.179 million tons was transported.
According to the company’s information, import made the larger share of the transported volume – 21.817 million tons (-12.3% year-on-year). Of that, 20.012 million tons (-14.1%) was transported via port stations.
Transportation of export cargo grew by 44.4% to 1.643 million tons. Of this, 700,000 tons (+37.3%) was carried via port stations. 
Onland transit amounted to 1.269 million tons (+19.3%), and inland transportation fell to 560,000 tons (-7%).

New high-speed route opens in Russia
On 30 July 2010, Sapsan trains began running on the Moscow – Nizhny Novgorod line. With the launch of the Sapsan service between Moscow and Nizhny Novgorod, Russian Railways has established a new high-speed route: Nizhny Novgorod – Moscow – St Petersburg.
The ceremonial launch of the new Sapsan route took place at Nizhny Novgorod’s Moskovsky Station. Russian Railways President Vladimir Yakunin took part in the event.
“Today we have witnessed one more landmark step. This day has been eagerly awaited in Nizhny Novgorod, because now this city, with its population of over a million, will be linked to Moscow and St Petersburg by a high-speed, reliable, and comfortable means of transport”, Vladimir Yakunin said at the ceremony.
Sapsan services have been running between Moscow and St Petersburg since 17 December 2009, the company president remarked.
“Over this time, Sapsan trains have carried more than 880,000 passengers. The average occupancy rate of the trains is continually growing, and has reached almost 86%”.
“Sapsan is becoming a symbol of everything new and progressive. It is not only changing the profile of domestic rail transport. Sapsan represents our country’s prudent approach to development, with an emphasis on breakthrough technology”, Vladimir Yakunin said at the close of the ceremony.
To prepare for the high-speed service, the infrastructure oft the Moscow – Nizhny Novgorod line was modernized. The work was conducted from 2006 to 2010. Over this period, construction and reconstruction was carried out at 54 passenger platforms, 139 km of overhead lines were fully overhauled, barriers were built along 331 km of the route, and various other improvements were made.

Throughput of Russian seaports rises 10% 
Six-month freight flows volume handled in Russian seaports gained 10% to 260 million tons, the Russian Ministry of Transport said.
The statement said the ports handled 103.7 million tons of dry cargo, or a 14%-percent rise compared with six month of 2009 and 156.2 million tons of liquid cargo, an 8.2-percent growth. 
17.8 million tons of cargo was carried by sea transport, 1.5% up year-on-year. Of this, coastal trade volume amounted to 3.8 millions tons, a 17% increase compared with the first six months of 2009. International sea transportation volume was 14 million tons, thus there was a 2% decline comparing with the similar period of 2009. 
According to expert estimates, the throughput at Russian seaports in 2010 could reach 520 million tons. In 2010, their handling capacity is planned to expand by 30 million tons if the financing is sufficient. 
In 2010, RUR 103 billion is to be spent on Russian port infrastructure development. Of that, RUR 87 billion is to be invested by private companies, which exceeds the sum to be invested by the state more than five-fold.

KTZ Plans to Increase Cargo Transportation Tariffs by 15% in 2011
Kazakh national railway company Kazakhstan Temir Zholy (KTZ) plans to increase tariffs on freight transportation by 15% in 2011, Edil Iskakov, advisor to the president of the company, told journalists in July 2010 in Alma-Ata.
“We plan an increase in tariffs of cargo transportation. Tariffs on passenger transportation may grow either, though this issue is still under discussion. Tariffs on passenger transportation are a social matter, so we should think twice before increasing them. We are going to increase tariffs on cargo transportation by 15% on average,” he said.
In the words of Mr Iskakov, all these measures are taken to make the national company more efficient. “As you know, passenger transportation is unprofitable business everywhere and require state subsides. A growth of passenger tariffs this year is a necessary thing to improve the efficiency of the company’s work. All these measures are targeted at obtaining necessary funds to invest into rolling stock,” he added.
“There is a definite plan of actions and a 5-year programme for passenger transportation development, which envisage all investments necessary to renew the rolling stock. They envisage all mechanisms – the state budget, subsides, as well as systematic tariff increase – to reach lossless level. The problem won’t be solved at once. It won’t be solve this year, for sure,” he said.

One System to Manage Cargo Wagons Park of Four Countries
The Heads of the railway national companies of Ukraine, Russia, Belarus, and Kazakhstan signed a memorandum of intentions to develop a new conceptual mechanism to manage the rolling stock – a Single system to manage the park of cargo wagon regardless their form of ownership.
The document became the result of a round-table discussion “Principles of Cargo Wagons Exploitation in “1520 Area” under New Conditions” held in Kiev in July.
The target of the initiative is to increase the efficiency of rolling stock considering present economic conditions. Ukrzaliznytsya (The Ukrainian Railways) emphasised that there is a serous gap in the efficiency of rolling stock of different forms of ownership. If a cargo railcar from Ukrzaliznytsya’s inventory park pays off in 6-7 years, a similar private wagon pays off in 21-22 years. Taking into account the prospects for freight flows recommence and ageing rolling stock, this trend may lead to a shortage in transport capacities of railways. 
The situation becomes even worse since the share of the private park on the 1520 railway network is growing. Nowadays, private railcars make over 55.2% (over 808,000 units) of the total freight wagon park in the CIS. The share of inventory wagons is 44.8% or 656,000 units. 
The next step – signing of an international agreement on the Single System development – is to be made at the meeting of the CIS Railway Transport Council in autumn.

Eesti Raudtee: Throughput Up
The throughput of the Estonian railway company Eesti Raudtee amounted to 14.25 million tons in January-June 2010, which was by 16.7% more than in the first half of 2009.
Transit cargo made the lion share in the volume – 11.66 million tons. Its transportation grew by 14.4% year-on-year.
Domestic transportation amounted to 1.86 million tons (+43%).
To remind, in 2009 Eesti Raudtee transported 25.38 million tons. This year the company plans to transport approximately 23 million tons.

More transit for Byelorussian Railway	
In January-June 2010, transit cargo transportation via the Byelorussian railway network grew by 7.9% year-on-year to 23.1 million tons.
During this period, the Byelorussian Railway (BZD) carried 65.8 million tons of cargo, a 3.3% increase compared with the first half of 2009. 
The results of the first half of the year proved the stable dynamics of the increase in freight volume carried by BZD, which recommenced starting from the beginning of the year. 
The Byelorussian Railway is an important link to strengthen commercial and economic ties between the Kaliningrad region and Belarus and the regions of Russia. That is why the recommence of the transit freight flow from Russia via the ports in the Kaliningrad region was the most significant success for the Byelorussian Railway in the transit sector. In 2009, there was a decline in cargo transit in this direction because of the severe competition among freight transporters – Latvian and Lithuanian ports, and Russian harbours at the Baltic and the Black seas. Already in January-June 2010, the volume of transit transportation via the Kaliningrad region amounted to 6.8 million tons (+45% year-on-year).
Starting from January 2010, there is a stable trend of the rise in transit transportation of Russian cargoes (including the Kaliningrad region) – by 7.6% year-on-year, Polish freight – by 26.8%, Lithuanian one – by 10.4%, Estonian one – by 38.2%. Transit transportation from Germany doubled, and that one from Czech Republic increased eightfold. In the first half of 2010, BZD increased the volume of transit transportation of oil and petrochemicals by 30.1% compared with the similar period of 2009, that one of ferrous metals – by 86%, cars – by 80.5%, chemicals and soda – by 12.5%. Transportation of transit ore grew almost 7-fold.
The Byelorussian Railway pays much attention to improvement of the technology of freight transportation in direct fast trains, especially container ones. BZD has a large container park. Its existing capacities allow to service a freight flow twice as large as the current one. In the first half of 2010, the amount of transit containers transported via the Byelorussian railway network was 52,800, a 59.5% increase compared with the similar period of 2009. All container trains carried 99.800 TEU, a 60.1% growth year-on-year.
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RZD: 11.3% Rise in Cargo Transportation in January-July 2010 
Freight volume carried by RZD in the first 7 months of 2010 totalled 688.1 million tons, an increase of 11.3% as compared with the same period last year.
According to the latest figures, in the first 7 months Russian Railways shipped more than 166 million tons of coal (+10.2%), more than 7.4 million tons of coke (+37.7%), over 145.7 million tons of oil and petroleum products (+10%), 58.2 million tons of iron and manganese ore (+9.7%), 41.7 million tons of ferrous metals (+18.2%), about 11 million tons of ferrous metal scrap (+39.6%), about 26.5 million tons of chemicals and fertilizers (+21.3%), more than 18.3 million tons of cement (+12.9%), over 25.5 million tons of timber (5.5%), about 77.4 million tons of building materials (+7.2%), 14.7 million tons of ferrous and sulphur raw materials (+13.2%), 16.8 million tons of chemicals and soda (+23.9%), 19.9 million tons of industrial raw materials and moulding materials (+24.8%), 10.1 million tons of containerised cargo (+19.6%) and 10.5 million tons of grain and cereals (-18.3%).
Russian Railways recorded over 1,147 billion tariff ton-kilometers from January to July 2010, 11.1% more than in the same period in 2009.

LDz Cargo: 10.3% Decline in Cargo Transportation	
LDz Cargo, a subsidiary of Latvijas dzelzce (LDz), specializing in freight transportation, carried 25.289 million tons of cargo, which was 10.3% less compared with the first half of the previous year, when 28.179 million tons was transported.
According to the company’s information, import made the larger share of the transported volume – 21.817 million tons (-12.3% year-on-year). Of that, 20.012 million tons (-14.1%) was transported via port stations.
Transportation of export cargo grew by 44.4% to 1.643 million tons. Of this, 700,000 tons (+37.3%) was carried via port stations. 
Onland transit amounted to 1.269 million tons (+19.3%), and inland transportation fell to 560,000 tons (-7%).

New high-speed route opens in Russia
On 30 July 2010, Sapsan trains began running on the Moscow – Nizhny Novgorod line. With the launch of the Sapsan service between Moscow and Nizhny Novgorod, Russian Railways has established a new high-speed route: Nizhny Novgorod – Moscow – St Petersburg.
The ceremonial launch of the new Sapsan route took place at Nizhny Novgorod’s Moskovsky Station. Russian Railways President Vladimir Yakunin took part in the event.
“Today we have witnessed one more landmark step. This day has been eagerly awaited in Nizhny Novgorod, because now this city, with its population of over a million, will be linked to Moscow and St Petersburg by a high-speed, reliable, and comfortable means of transport”, Vladimir Yakunin said at the ceremony.
Sapsan services have been running between Moscow and St Petersburg since 17 December 2009, the company president remarked.
“Over this time, Sapsan trains have carried more than 880,000 passengers. The average occupancy rate of the trains is continually growing, and has reached almost 86%”.
“Sapsan is becoming a symbol of everything new and progressive. It is not only changing the profile of domestic rail transport. Sapsan represents our country’s prudent approach to development, with an emphasis on breakthrough technology”, Vladimir Yakunin said at the close of the ceremony.
To prepare for the high-speed service, the infrastructure oft the Moscow – Nizhny Novgorod line was modernized. The work was conducted from 2006 to 2010. Over this period, construction and reconstruction was carried out at 54 passenger platforms, 139 km of overhead lines were fully overhauled, barriers were built along 331 km of the route, and various other improvements were made.

Throughput of Russian seaports rises 10% 
Six-month freight flows volume handled in Russian seaports gained 10% to 260 million tons, the Russian Ministry of Transport said.
The statement said the ports handled 103.7 million tons of dry cargo, or a 14%-percent rise compared with six month of 2009 and 156.2 million tons of liquid cargo, an 8.2-percent growth. 
17.8 million tons of cargo was carried by sea transport, 1.5% up year-on-year. Of this, coastal trade volume amounted to 3.8 millions tons, a 17% increase compared with the first six months of 2009. International sea transportation volume was 14 million tons, thus there was a 2% decline comparing with the similar period of 2009. 
According to expert estimates, the throughput at Russian seaports in 2010 could reach 520 million tons. In 2010, their handling capacity is planned to expand by 30 million tons if the financing is sufficient. 
In 2010, RUR 103 billion is to be spent on Russian port infrastructure development. Of that, RUR 87 billion is to be invested by private companies, which exceeds the sum to be invested by the state more than five-fold.

KTZ Plans to Increase Cargo Transportation Tariffs by 15% in 2011
Kazakh national railway company Kazakhstan Temir Zholy (KTZ) plans to increase tariffs on freight transportation by 15% in 2011, Edil Iskakov, advisor to the president of the company, told journalists in July 2010 in Alma-Ata.
“We plan an increase in tariffs of cargo transportation. Tariffs on passenger transportation may grow either, though this issue is still under discussion. Tariffs on passenger transportation are a social matter, so we should think twice before increasing them. We are going to increase tariffs on cargo transportation by 15% on average,” he said.
In the words of Mr Iskakov, all these measures are taken to make the national company more efficient. “As you know, passenger transportation is unprofitable business everywhere and require state subsides. A growth of passenger tariffs this year is a necessary thing to improve the efficiency of the company’s work. All these measures are targeted at obtaining necessary funds to invest into rolling stock,” he added.
“There is a definite plan of actions and a 5-year programme for passenger transportation development, which envisage all investments necessary to renew the rolling stock. They envisage all mechanisms – the state budget, subsides, as well as systematic tariff increase – to reach lossless level. The problem won’t be solved at once. It won’t be solve this year, for sure,” he said.

One System to Manage Cargo Wagons Park of Four Countries
The Heads of the railway national companies of Ukraine, Russia, Belarus, and Kazakhstan signed a memorandum of intentions to develop a new conceptual mechanism to manage the rolling stock – a Single system to manage the park of cargo wagon regardless their form of ownership.
The document became the result of a round-table discussion “Principles of Cargo Wagons Exploitation in “1520 Area” under New Conditions” held in Kiev in July.
The target of the initiative is to increase the efficiency of rolling stock considering present economic conditions. Ukrzaliznytsya (The Ukrainian Railways) emphasised that there is a serous gap in the efficiency of rolling stock of different forms of ownership. If a cargo railcar from Ukrzaliznytsya’s inventory park pays off in 6-7 years, a similar private wagon pays off in 21-22 years. Taking into account the prospects for freight flows recommence and ageing rolling stock, this trend may lead to a shortage in transport capacities of railways. 
The situation becomes even worse since the share of the private park on the 1520 railway network is growing. Nowadays, private railcars make over 55.2% (over 808,000 units) of the total freight wagon park in the CIS. The share of inventory wagons is 44.8% or 656,000 units. 
The next step – signing of an international agreement on the Single System development – is to be made at the meeting of the CIS Railway Transport Council in autumn.

Eesti Raudtee: Throughput Up
The throughput of the Estonian railway company Eesti Raudtee amounted to 14.25 million tons in January-June 2010, which was by 16.7% more than in the first half of 2009.
Transit cargo made the lion share in the volume – 11.66 million tons. Its transportation grew by 14.4% year-on-year.
Domestic transportation amounted to 1.86 million tons (+43%).
To remind, in 2009 Eesti Raudtee transported 25.38 million tons. This year the company plans to transport approximately 23 million tons.

More transit for Byelorussian Railway	
In January-June 2010, transit cargo transportation via the Byelorussian railway network grew by 7.9% year-on-year to 23.1 million tons.
During this period, the Byelorussian Railway (BZD) carried 65.8 million tons of cargo, a 3.3% increase compared with the first half of 2009. 
The results of the first half of the year proved the stable dynamics of the increase in freight volume carried by BZD, which recommenced starting from the beginning of the year. 
The Byelorussian Railway is an important link to strengthen commercial and economic ties between the Kaliningrad region and Belarus and the regions of Russia. That is why the recommence of the transit freight flow from Russia via the ports in the Kaliningrad region was the most significant success for the Byelorussian Railway in the transit sector. In 2009, there was a decline in cargo transit in this direction because of the severe competition among freight transporters – Latvian and Lithuanian ports, and Russian harbours at the Baltic and the Black seas. Already in January-June 2010, the volume of transit transportation via the Kaliningrad region amounted to 6.8 million tons (+45% year-on-year).
Starting from January 2010, there is a stable trend of the rise in transit transportation of Russian cargoes (including the Kaliningrad region) – by 7.6% year-on-year, Polish freight – by 26.8%, Lithuanian one – by 10.4%, Estonian one – by 38.2%. Transit transportation from Germany doubled, and that one from Czech Republic increased eightfold. In the first half of 2010, BZD increased the volume of transit transportation of oil and petrochemicals by 30.1% compared with the similar period of 2009, that one of ferrous metals – by 86%, cars – by 80.5%, chemicals and soda – by 12.5%. Transportation of transit ore grew almost 7-fold.
The Byelorussian Railway pays much attention to improvement of the technology of freight transportation in direct fast trains, especially container ones. BZD has a large container park. Its existing capacities allow to service a freight flow twice as large as the current one. In the first half of 2010, the amount of transit containers transported via the Byelorussian railway network was 52,800, a 59.5% increase compared with the similar period of 2009. All container trains carried 99.800 TEU, a 60.1% growth year-on-year.
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Lack of Laws and Money
 Yulia Orlova, Department Director for the development of regional infrastructure at the Centre for the development of PPP, admitted in a recent interview: the implementation of PPP in general and concession agreements in particular has only just started to transfer from discussion into the sphere of practical realisation. All this despite the idea of cooperation between the state authorities and the business structures being talked about since the early 90s.
The curious fact is that Russia still lacks a federal law on PPP, and local authorities have to solve the problem themselves, based on their own comprehension. At the same time, the federal law on concessions, although passed in 2005, was useless from the very beginning, not only due to the absence of the subordinate legislation but also because it was simply a few years late.
Certainly the unfavourable macroeconomic climate of 2008-2009 was also one of the major reasons for the slow pace of development of cooperation between business and the state. In 2009, investments into infrastructure projects from Investment fund declined almost halved – from RUR 113 billion to RUR 56 billion. This year is following the same course of events with no surprises: the projects’ budgets make up only 40% of the 2009 level, i.e. RUR 35.5 billion. The budget of 2011 allocates only RUR 31 billion instead of the RUR 80 billion required.
As a result, the financial provisions for the Belkomur project have still not been adopted. Other projects such as Ural Promishlenniy – Ural Polyarniy, the railway line Kyzyl – Kuragino, the complex development in South Yakutia and at the Nizhneye Priangarie, suffer the same problems as well. Clearly, in these circumstances, private business has quite a negative view of the state as a strategic partner.

Concession Pioneers
 Despite a fairly pessimistic climate in the regions, certain steps towards the realisation of concession transactions have been taken in the centre. At present, concessions, which were so popular in pre-revolutionary Russia, are being revived in St Petersburg. Four projects in the northwest region are now in the spotlight: the West Speed Diameter (WSD), Orlov tunnel, elevated express way and Pulkovo airport modernisation. The first two were based on the federal law on concessions, the other two on the city law on PPP. It is worth mentioning that all these projects are rather significant from a financial point of view and well-founded, nevertheless not all of them are successful. 
In brief, the West Speed Diameter is a toll road, which is supposed to connect the Port of St Petersburg with transport routes to the Baltic States, Scandinavia and the Russian regions. This project is quite ambitious not only for Russia but for Europe as well. In order to launch the 50-metre route it is required to construct multiple bridges 35 to 55 metres high above the port waterways and road interchanges. The fact that over half of the highway consists of the overhead road sections adds to the project’s complexity.
In April 2008, the cost of the project was RUR 212,724 billion. The investors should provide RUR 107.9 billion, the Investment Fund has to put in RUR 71.3 billion and the city budget provides the remaining RUR 33.6 billion. Construction began five years ago, but until this year the fate of the highway was vague. In 2010, the subsidies from the federal budget declined by half from RUR 14.6 billion to RUR 7.3 billion. The city also cut the funding from RUR 3.6 billion to RUR 2.6 billion.
The state of affairs has changed since the RF Government issued a resolution on the provision of state guarantees on bond loans to continue the construction of the West Speed Diameter toll road. Thus the project’s investor was allowed to attract bond loans of RUR 25 billion for the period of 20 years under government guarantees.
Alexey Chichkanov, Head of the Committee for investment and strategic projects (CISP) in the region, mentioned that this approach solved the problem of attracting long-term rouble investments at acceptable rates.
The concession tender to engage a big investor, to finalise the project and run the highway, is to be held in 2011. Mr Chichkanov believes that, after the project starts making a profit, it will become more attractive for the investor.
As for the Orlov tunnel, this project has been almost forgotten in recent times and disappeared from the newspaper front pages. According to the plan, the tunnel should connect Smolnaya and Sverdlovskaya embankments, satisfying traffic needs because it will allow an undisturbed connection between the city districts, currently separated by the river, and prolong the time when Neva bridges are raised, which will enhance the capacity of the Volga-Baltic water-way. 
A few years ago, the construction cost was RUR 26.5 billion. However, a regulation for an additional RUR 16 billion was issued later. That was followed by lengthy arguments with the local community and ecologists, who were, as usual, against the project, particularly when it victimised park areas. Then came the crisis and things slackened. 
However the story progressed during the St Petersburg Economy Forum when the agreement to continue construction was signed. Now the estimated cost of the Orlov tunnel, which is to be constructed by 2015, is RUR 44.7 billion. The sum is impressive, given that the length of the tunnel is nearly a kilometre. As agreed, the financial load will be split up among the federal and the city budgets as well as the European Bank for Reconstruction, Vnesheconombank (VEB) and Sberbank.

Private Capital in Pulkovo
Proceeding with St Petersburg projects, let us recall the reconstruction of Pulkovo airport. Here, concession activities show a spark of life.
The authorities of St Petersburg gave the airport to the consortium Northern Capital Gateway for a period of 30 years in exchange for an investment of €1.2 billion. The budget of St Petersburg will not be involved in the construction, but the city authorities should provide transportation for passengers – an elevated express – which should be launched in 2013.
The financial capacity of the 25-kilometre light rail line project will be about RUR 12-14 billion. Its financial partner is also Sberbank of Russia. According to Herman Gref, President of Sberbank, the possibility of granting a loan or guarantees for the project Nadzemny Express for the amount of RUR 11 billion is being discussed. The contractor will have to prepare a public-private partnership agreement for the construction of the express line in December 2010. Thus two concession projects are bound together.
Next in line for a concession deal will be Sheremetyevo airport in Moscow. Moreover, representatives of the Federal Air Transport Agency of Russia have already expressed their attitude towards the development of concessions in the airline sector, namely that all international airports in Russia can be run by private companies.To complete the story about concessions it is worth mentioning the Moscow - St Petersburg toll highway. In autumn 2008, the government decided that the route should be completed by 2014. As for the “incredible” rate of the project’s development, let us note that the route appeared on the map due to the Ministry of Transport decree on July 31, 2006. The total investments in the highway will be about RUR 200-240 billion.
Today the construction of the 15-58 kilometre area is possible due to the government’s guarantees in the form of bonds for RUR 24.5 billion. Vnesheconombank, mentioned above, Sberbank of Russia and North-West Concession Company (NWCC), acting as the project manager, were engaged in financing the construction work in this segment.
In April they entered a loan agreement worth RUR 29.2 billion. The total cost of highway construction is RUR 63.4 billion. In addition to the funds from the Government of Russia to the tune of RUR 23 billion, and as well as the loans of VEB and Sberbank, it is planned to issue state guaranteed bonds worth RUR 10 billion with a maturity of 20 years.

Time to Begin
Until now none of the concession undertakings has been accomplished, and members of the transport market and potential investors are trying to analyse what has to be done to overcome years of stagnation in this field. While waiting for improvements in the legislation, they complain about the laziness of the state apparatus, the significant expenses the applicants incur when participating in projects and a lack of security in long-term private investments. Not to mention that the concession is the privilege of large investors and do damage to other forms of PPP. 
As for the concession mechanisms, they are traced rather than elaborated. For example, it took the applicants and the Federal Road Agency more than two years of joint work to reach the concession agreements for the construction of the Moscow - St Petersburg toll road (15-58 kilometres) and the bypass near the town of Odintsovo. 
Given that the market is still far from recovery after the crisis, and the planned state investments are in continual decline, private investors are no longer confident the state has the funds to fulfil its obligations to the projects later on. The lack of experience in granting tax concessions for investors into infrastructure and the lack of mechanisms to ensure state accountability and risk sharing complicates the matter. 
by Yana Charova
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Lack of Laws and Money
 Yulia Orlova, Department Director for the development of regional infrastructure at the Centre for the development of PPP, admitted in a recent interview: the implementation of PPP in general and concession agreements in particular has only just started to transfer from discussion into the sphere of practical realisation. All this despite the idea of cooperation between the state authorities and the business structures being talked about since the early 90s.
The curious fact is that Russia still lacks a federal law on PPP, and local authorities have to solve the problem themselves, based on their own comprehension. At the same time, the federal law on concessions, although passed in 2005, was useless from the very beginning, not only due to the absence of the subordinate legislation but also because it was simply a few years late.
Certainly the unfavourable macroeconomic climate of 2008-2009 was also one of the major reasons for the slow pace of development of cooperation between business and the state. In 2009, investments into infrastructure projects from Investment fund declined almost halved – from RUR 113 billion to RUR 56 billion. This year is following the same course of events with no surprises: the projects’ budgets make up only 40% of the 2009 level, i.e. RUR 35.5 billion. The budget of 2011 allocates only RUR 31 billion instead of the RUR 80 billion required.
As a result, the financial provisions for the Belkomur project have still not been adopted. Other projects such as Ural Promishlenniy – Ural Polyarniy, the railway line Kyzyl – Kuragino, the complex development in South Yakutia and at the Nizhneye Priangarie, suffer the same problems as well. Clearly, in these circumstances, private business has quite a negative view of the state as a strategic partner.

Concession Pioneers
 Despite a fairly pessimistic climate in the regions, certain steps towards the realisation of concession transactions have been taken in the centre. At present, concessions, which were so popular in pre-revolutionary Russia, are being revived in St Petersburg. Four projects in the northwest region are now in the spotlight: the West Speed Diameter (WSD), Orlov tunnel, elevated express way and Pulkovo airport modernisation. The first two were based on the federal law on concessions, the other two on the city law on PPP. It is worth mentioning that all these projects are rather significant from a financial point of view and well-founded, nevertheless not all of them are successful. 
In brief, the West Speed Diameter is a toll road, which is supposed to connect the Port of St Petersburg with transport routes to the Baltic States, Scandinavia and the Russian regions. This project is quite ambitious not only for Russia but for Europe as well. In order to launch the 50-metre route it is required to construct multiple bridges 35 to 55 metres high above the port waterways and road interchanges. The fact that over half of the highway consists of the overhead road sections adds to the project’s complexity.
In April 2008, the cost of the project was RUR 212,724 billion. The investors should provide RUR 107.9 billion, the Investment Fund has to put in RUR 71.3 billion and the city budget provides the remaining RUR 33.6 billion. Construction began five years ago, but until this year the fate of the highway was vague. In 2010, the subsidies from the federal budget declined by half from RUR 14.6 billion to RUR 7.3 billion. The city also cut the funding from RUR 3.6 billion to RUR 2.6 billion.
The state of affairs has changed since the RF Government issued a resolution on the provision of state guarantees on bond loans to continue the construction of the West Speed Diameter toll road. Thus the project’s investor was allowed to attract bond loans of RUR 25 billion for the period of 20 years under government guarantees.
Alexey Chichkanov, Head of the Committee for investment and strategic projects (CISP) in the region, mentioned that this approach solved the problem of attracting long-term rouble investments at acceptable rates.
The concession tender to engage a big investor, to finalise the project and run the highway, is to be held in 2011. Mr Chichkanov believes that, after the project starts making a profit, it will become more attractive for the investor.
As for the Orlov tunnel, this project has been almost forgotten in recent times and disappeared from the newspaper front pages. According to the plan, the tunnel should connect Smolnaya and Sverdlovskaya embankments, satisfying traffic needs because it will allow an undisturbed connection between the city districts, currently separated by the river, and prolong the time when Neva bridges are raised, which will enhance the capacity of the Volga-Baltic water-way. 
A few years ago, the construction cost was RUR 26.5 billion. However, a regulation for an additional RUR 16 billion was issued later. That was followed by lengthy arguments with the local community and ecologists, who were, as usual, against the project, particularly when it victimised park areas. Then came the crisis and things slackened. 
However the story progressed during the St Petersburg Economy Forum when the agreement to continue construction was signed. Now the estimated cost of the Orlov tunnel, which is to be constructed by 2015, is RUR 44.7 billion. The sum is impressive, given that the length of the tunnel is nearly a kilometre. As agreed, the financial load will be split up among the federal and the city budgets as well as the European Bank for Reconstruction, Vnesheconombank (VEB) and Sberbank.

Private Capital in Pulkovo
Proceeding with St Petersburg projects, let us recall the reconstruction of Pulkovo airport. Here, concession activities show a spark of life.
The authorities of St Petersburg gave the airport to the consortium Northern Capital Gateway for a period of 30 years in exchange for an investment of €1.2 billion. The budget of St Petersburg will not be involved in the construction, but the city authorities should provide transportation for passengers – an elevated express – which should be launched in 2013.
The financial capacity of the 25-kilometre light rail line project will be about RUR 12-14 billion. Its financial partner is also Sberbank of Russia. According to Herman Gref, President of Sberbank, the possibility of granting a loan or guarantees for the project Nadzemny Express for the amount of RUR 11 billion is being discussed. The contractor will have to prepare a public-private partnership agreement for the construction of the express line in December 2010. Thus two concession projects are bound together.
Next in line for a concession deal will be Sheremetyevo airport in Moscow. Moreover, representatives of the Federal Air Transport Agency of Russia have already expressed their attitude towards the development of concessions in the airline sector, namely that all international airports in Russia can be run by private companies.To complete the story about concessions it is worth mentioning the Moscow - St Petersburg toll highway. In autumn 2008, the government decided that the route should be completed by 2014. As for the “incredible” rate of the project’s development, let us note that the route appeared on the map due to the Ministry of Transport decree on July 31, 2006. The total investments in the highway will be about RUR 200-240 billion.
Today the construction of the 15-58 kilometre area is possible due to the government’s guarantees in the form of bonds for RUR 24.5 billion. Vnesheconombank, mentioned above, Sberbank of Russia and North-West Concession Company (NWCC), acting as the project manager, were engaged in financing the construction work in this segment.
In April they entered a loan agreement worth RUR 29.2 billion. The total cost of highway construction is RUR 63.4 billion. In addition to the funds from the Government of Russia to the tune of RUR 23 billion, and as well as the loans of VEB and Sberbank, it is planned to issue state guaranteed bonds worth RUR 10 billion with a maturity of 20 years.

Time to Begin
Until now none of the concession undertakings has been accomplished, and members of the transport market and potential investors are trying to analyse what has to be done to overcome years of stagnation in this field. While waiting for improvements in the legislation, they complain about the laziness of the state apparatus, the significant expenses the applicants incur when participating in projects and a lack of security in long-term private investments. Not to mention that the concession is the privilege of large investors and do damage to other forms of PPP. 
As for the concession mechanisms, they are traced rather than elaborated. For example, it took the applicants and the Federal Road Agency more than two years of joint work to reach the concession agreements for the construction of the Moscow - St Petersburg toll road (15-58 kilometres) and the bypass near the town of Odintsovo. 
Given that the market is still far from recovery after the crisis, and the planned state investments are in continual decline, private investors are no longer confident the state has the funds to fulfil its obligations to the projects later on. The lack of experience in granting tax concessions for investors into infrastructure and the lack of mechanisms to ensure state accountability and risk sharing complicates the matter. 
by Yana Charova
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Lack of Laws and Money
 Yulia Orlova, Department Director for the development of regional infrastructure at the Centre for the development of PPP, admitted in a recent interview: the implementation of PPP in general and concession agreements in particular has only just started to transfer from discussion into the sphere of practical realisation. All this despite the idea of cooperation between the state authorities and the business structures being talked about since the early 90s.
The curious fact is that Russia still lacks a federal law on PPP, and local authorities have to solve the problem themselves, based on their own comprehension. At the same time, the federal law on concessions, although passed in 2005, was useless from the very beginning, not only due to the absence of the subordinate legislation but also because it was simply a few years late.
Certainly the unfavourable macroeconomic climate of 2008-2009 was also one of the major reasons for the slow pace of development of cooperation between business and the state. In 2009, investments into infrastructure projects from Investment fund declined almost halved – from RUR 113 billion to RUR 56 billion. This year is following the same course of events with no surprises: the projects’ budgets make up only 40% of the 2009 level, i.e. RUR 35.5 billion. The budget of 2011 allocates only RUR 31 billion instead of the RUR 80 billion required.
As a result, the financial provisions for the Belkomur project have still not been adopted. Other projects such as Ural Promishlenniy – Ural Polyarniy, the railway line Kyzyl – Kuragino, the complex development in South Yakutia and at the Nizhneye Priangarie, suffer the same problems as well. Clearly, in these circumstances, private business has quite a negative view of the state as a strategic partner.

Concession Pioneers
 Despite a fairly pessimistic climate in the regions, certain steps towards the realisation of concession transactions have been taken in the centre. At present, concessions, which were so popular in pre-revolutionary Russia, are being revived in St Petersburg. Four projects in the northwest region are now in the spotlight: the West Speed Diameter (WSD), Orlov tunnel, elevated express way and Pulkovo airport modernisation. The first two were based on the federal law on concessions, the other two on the city law on PPP. It is worth mentioning that all these projects are rather significant from a financial point of view and well-founded, nevertheless not all of them are successful. 
In brief, the West Speed Diameter is a toll road, which is supposed to connect the Port of St Petersburg with transport routes to the Baltic States, Scandinavia and the Russian regions. This project is quite ambitious not only for Russia but for Europe as well. In order to launch the 50-metre route it is required to construct multiple bridges 35 to 55 metres high above the port waterways and road interchanges. The fact that over half of the highway consists of the overhead road sections adds to the project’s complexity.
In April 2008, the cost of the project was RUR 212,724 billion. The investors should provide RUR 107.9 billion, the Investment Fund has to put in RUR 71.3 billion and the city budget provides the remaining RUR 33.6 billion. Construction began five years ago, but until this year the fate of the highway was vague. In 2010, the subsidies from the federal budget declined by half from RUR 14.6 billion to RUR 7.3 billion. The city also cut the funding from RUR 3.6 billion to RUR 2.6 billion.
The state of affairs has changed since the RF Government issued a resolution on the provision of state guarantees on bond loans to continue the construction of the West Speed Diameter toll road. Thus the project’s investor was allowed to attract bond loans of RUR 25 billion for the period of 20 years under government guarantees.
Alexey Chichkanov, Head of the Committee for investment and strategic projects (CISP) in the region, mentioned that this approach solved the problem of attracting long-term rouble investments at acceptable rates.
The concession tender to engage a big investor, to finalise the project and run the highway, is to be held in 2011. Mr Chichkanov believes that, after the project starts making a profit, it will become more attractive for the investor.
As for the Orlov tunnel, this project has been almost forgotten in recent times and disappeared from the newspaper front pages. According to the plan, the tunnel should connect Smolnaya and Sverdlovskaya embankments, satisfying traffic needs because it will allow an undisturbed connection between the city districts, currently separated by the river, and prolong the time when Neva bridges are raised, which will enhance the capacity of the Volga-Baltic water-way. 
A few years ago, the construction cost was RUR 26.5 billion. However, a regulation for an additional RUR 16 billion was issued later. That was followed by lengthy arguments with the local community and ecologists, who were, as usual, against the project, particularly when it victimised park areas. Then came the crisis and things slackened. 
However the story progressed during the St Petersburg Economy Forum when the agreement to continue construction was signed. Now the estimated cost of the Orlov tunnel, which is to be constructed by 2015, is RUR 44.7 billion. The sum is impressive, given that the length of the tunnel is nearly a kilometre. As agreed, the financial load will be split up among the federal and the city budgets as well as the European Bank for Reconstruction, Vnesheconombank (VEB) and Sberbank.

Private Capital in Pulkovo
Proceeding with St Petersburg projects, let us recall the reconstruction of Pulkovo airport. Here, concession activities show a spark of life.
The authorities of St Petersburg gave the airport to the consortium Northern Capital Gateway for a period of 30 years in exchange for an investment of €1.2 billion. The budget of St Petersburg will not be involved in the construction, but the city authorities should provide transportation for passengers – an elevated express – which should be launched in 2013.
The financial capacity of the 25-kilometre light rail line project will be about RUR 12-14 billion. Its financial partner is also Sberbank of Russia. According to Herman Gref, President of Sberbank, the possibility of granting a loan or guarantees for the project Nadzemny Express for the amount of RUR 11 billion is being discussed. The contractor will have to prepare a public-private partnership agreement for the construction of the express line in December 2010. Thus two concession projects are bound together.
Next in line for a concession deal will be Sheremetyevo airport in Moscow. Moreover, representatives of the Federal Air Transport Agency of Russia have already expressed their attitude towards the development of concessions in the airline sector, namely that all international airports in Russia can be run by private companies.To complete the story about concessions it is worth mentioning the Moscow - St Petersburg toll highway. In autumn 2008, the government decided that the route should be completed by 2014. As for the “incredible” rate of the project’s development, let us note that the route appeared on the map due to the Ministry of Transport decree on July 31, 2006. The total investments in the highway will be about RUR 200-240 billion.
Today the construction of the 15-58 kilometre area is possible due to the government’s guarantees in the form of bonds for RUR 24.5 billion. Vnesheconombank, mentioned above, Sberbank of Russia and North-West Concession Company (NWCC), acting as the project manager, were engaged in financing the construction work in this segment.
In April they entered a loan agreement worth RUR 29.2 billion. The total cost of highway construction is RUR 63.4 billion. In addition to the funds from the Government of Russia to the tune of RUR 23 billion, and as well as the loans of VEB and Sberbank, it is planned to issue state guaranteed bonds worth RUR 10 billion with a maturity of 20 years.

Time to Begin
Until now none of the concession undertakings has been accomplished, and members of the transport market and potential investors are trying to analyse what has to be done to overcome years of stagnation in this field. While waiting for improvements in the legislation, they complain about the laziness of the state apparatus, the significant expenses the applicants incur when participating in projects and a lack of security in long-term private investments. Not to mention that the concession is the privilege of large investors and do damage to other forms of PPP. 
As for the concession mechanisms, they are traced rather than elaborated. For example, it took the applicants and the Federal Road Agency more than two years of joint work to reach the concession agreements for the construction of the Moscow - St Petersburg toll road (15-58 kilometres) and the bypass near the town of Odintsovo. 
Given that the market is still far from recovery after the crisis, and the planned state investments are in continual decline, private investors are no longer confident the state has the funds to fulfil its obligations to the projects later on. The lack of experience in granting tax concessions for investors into infrastructure and the lack of mechanisms to ensure state accountability and risk sharing complicates the matter. 
by Yana Charova
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Lack of Laws and Money
 Yulia Orlova, Department Director for the development of regional infrastructure at the Centre for the development of PPP, admitted in a recent interview: the implementation of PPP in general and concession agreements in particular has only just started to transfer from discussion into the sphere of practical realisation. All this despite the idea of cooperation between the state authorities and the business structures being talked about since the early 90s.
The curious fact is that Russia still lacks a federal law on PPP, and local authorities have to solve the problem themselves, based on their own comprehension. At the same time, the federal law on concessions, although passed in 2005, was useless from the very beginning, not only due to the absence of the subordinate legislation but also because it was simply a few years late.
Certainly the unfavourable macroeconomic climate of 2008-2009 was also one of the major reasons for the slow pace of development of cooperation between business and the state. In 2009, investments into infrastructure projects from Investment fund declined almost halved – from RUR 113 billion to RUR 56 billion. This year is following the same course of events with no surprises: the projects’ budgets make up only 40% of the 2009 level, i.e. RUR 35.5 billion. The budget of 2011 allocates only RUR 31 billion instead of the RUR 80 billion required.
As a result, the financial provisions for the Belkomur project have still not been adopted. Other projects such as Ural Promishlenniy – Ural Polyarniy, the railway line Kyzyl – Kuragino, the complex development in South Yakutia and at the Nizhneye Priangarie, suffer the same problems as well. Clearly, in these circumstances, private business has quite a negative view of the state as a strategic partner.

Concession Pioneers
 Despite a fairly pessimistic climate in the regions, certain steps towards the realisation of concession transactions have been taken in the centre. At present, concessions, which were so popular in pre-revolutionary Russia, are being revived in St Petersburg. Four projects in the northwest region are now in the spotlight: the West Speed Diameter (WSD), Orlov tunnel, elevated express way and Pulkovo airport modernisation. The first two were based on the federal law on concessions, the other two on the city law on PPP. It is worth mentioning that all these projects are rather significant from a financial point of view and well-founded, nevertheless not all of them are successful. 
In brief, the West Speed Diameter is a toll road, which is supposed to connect the Port of St Petersburg with transport routes to the Baltic States, Scandinavia and the Russian regions. This project is quite ambitious not only for Russia but for Europe as well. In order to launch the 50-metre route it is required to construct multiple bridges 35 to 55 metres high above the port waterways and road interchanges. The fact that over half of the highway consists of the overhead road sections adds to the project’s complexity.
In April 2008, the cost of the project was RUR 212,724 billion. The investors should provide RUR 107.9 billion, the Investment Fund has to put in RUR 71.3 billion and the city budget provides the remaining RUR 33.6 billion. Construction began five years ago, but until this year the fate of the highway was vague. In 2010, the subsidies from the federal budget declined by half from RUR 14.6 billion to RUR 7.3 billion. The city also cut the funding from RUR 3.6 billion to RUR 2.6 billion.
The state of affairs has changed since the RF Government issued a resolution on the provision of state guarantees on bond loans to continue the construction of the West Speed Diameter toll road. Thus the project’s investor was allowed to attract bond loans of RUR 25 billion for the period of 20 years under government guarantees.
Alexey Chichkanov, Head of the Committee for investment and strategic projects (CISP) in the region, mentioned that this approach solved the problem of attracting long-term rouble investments at acceptable rates.
The concession tender to engage a big investor, to finalise the project and run the highway, is to be held in 2011. Mr Chichkanov believes that, after the project starts making a profit, it will become more attractive for the investor.
As for the Orlov tunnel, this project has been almost forgotten in recent times and disappeared from the newspaper front pages. According to the plan, the tunnel should connect Smolnaya and Sverdlovskaya embankments, satisfying traffic needs because it will allow an undisturbed connection between the city districts, currently separated by the river, and prolong the time when Neva bridges are raised, which will enhance the capacity of the Volga-Baltic water-way. 
A few years ago, the construction cost was RUR 26.5 billion. However, a regulation for an additional RUR 16 billion was issued later. That was followed by lengthy arguments with the local community and ecologists, who were, as usual, against the project, particularly when it victimised park areas. Then came the crisis and things slackened. 
However the story progressed during the St Petersburg Economy Forum when the agreement to continue construction was signed. Now the estimated cost of the Orlov tunnel, which is to be constructed by 2015, is RUR 44.7 billion. The sum is impressive, given that the length of the tunnel is nearly a kilometre. As agreed, the financial load will be split up among the federal and the city budgets as well as the European Bank for Reconstruction, Vnesheconombank (VEB) and Sberbank.

Private Capital in Pulkovo
Proceeding with St Petersburg projects, let us recall the reconstruction of Pulkovo airport. Here, concession activities show a spark of life.
The authorities of St Petersburg gave the airport to the consortium Northern Capital Gateway for a period of 30 years in exchange for an investment of €1.2 billion. The budget of St Petersburg will not be involved in the construction, but the city authorities should provide transportation for passengers – an elevated express – which should be launched in 2013.
The financial capacity of the 25-kilometre light rail line project will be about RUR 12-14 billion. Its financial partner is also Sberbank of Russia. According to Herman Gref, President of Sberbank, the possibility of granting a loan or guarantees for the project Nadzemny Express for the amount of RUR 11 billion is being discussed. The contractor will have to prepare a public-private partnership agreement for the construction of the express line in December 2010. Thus two concession projects are bound together.
Next in line for a concession deal will be Sheremetyevo airport in Moscow. Moreover, representatives of the Federal Air Transport Agency of Russia have already expressed their attitude towards the development of concessions in the airline sector, namely that all international airports in Russia can be run by private companies.To complete the story about concessions it is worth mentioning the Moscow - St Petersburg toll highway. In autumn 2008, the government decided that the route should be completed by 2014. As for the “incredible” rate of the project’s development, let us note that the route appeared on the map due to the Ministry of Transport decree on July 31, 2006. The total investments in the highway will be about RUR 200-240 billion.
Today the construction of the 15-58 kilometre area is possible due to the government’s guarantees in the form of bonds for RUR 24.5 billion. Vnesheconombank, mentioned above, Sberbank of Russia and North-West Concession Company (NWCC), acting as the project manager, were engaged in financing the construction work in this segment.
In April they entered a loan agreement worth RUR 29.2 billion. The total cost of highway construction is RUR 63.4 billion. In addition to the funds from the Government of Russia to the tune of RUR 23 billion, and as well as the loans of VEB and Sberbank, it is planned to issue state guaranteed bonds worth RUR 10 billion with a maturity of 20 years.

Time to Begin
Until now none of the concession undertakings has been accomplished, and members of the transport market and potential investors are trying to analyse what has to be done to overcome years of stagnation in this field. While waiting for improvements in the legislation, they complain about the laziness of the state apparatus, the significant expenses the applicants incur when participating in projects and a lack of security in long-term private investments. Not to mention that the concession is the privilege of large investors and do damage to other forms of PPP. 
As for the concession mechanisms, they are traced rather than elaborated. For example, it took the applicants and the Federal Road Agency more than two years of joint work to reach the concession agreements for the construction of the Moscow - St Petersburg toll road (15-58 kilometres) and the bypass near the town of Odintsovo. 
Given that the market is still far from recovery after the crisis, and the planned state investments are in continual decline, private investors are no longer confident the state has the funds to fulfil its obligations to the projects later on. The lack of experience in granting tax concessions for investors into infrastructure and the lack of mechanisms to ensure state accountability and risk sharing complicates the matter. 
by Yana Charova
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    [DETAIL_TEXT] => 
Going Up 
International large-tonnage container traffic by the Transsib has not yet returned to pre-crisis levels. It fell by an average of 60% in 2009. In the first half of 2010 a partial restoration of volumes could be noticed. A total of 163,700 TEUs (103,500 containers) have been moved, which is 32% more than during the first six months of 2009 (124,100 TEU / 80,600 containers). 
It includes the growth of transit by 63% in the first half of 2010 which amounted to 12,900 TEU; imports, which grew by 69% and reached 83,400 TEUs and exports which grew by only 1% and amounted to 67,400 TEUs. 
Routes between Russia and the Republic of Korea showed the largest growth (52% up by the first half of 2009). Shipments of large-tonnage containers in this sector between January and June 2010 were 41,900 TEUs. This includes 22,700 TEU of imported cargoes (81% more than during the same period of 2009); 6,900 TEU in transit (13% up) and 12,300 TEU in export (37% up). 
The results for routes between Russia and China were half as good. There was only 25% growth. 96,500 TEU was transported here for the period January to June. This figure includes 58,400 TEU in import (62% up on the first half of 2009), 5,000 TEU in transit (291 % up) and 33,100 TEU in export (16% down). 
At the same time, the traffic volume on the routes between Russia and Japan continued to decline. During the first half of 2010,14,900 TEUs was carried, which is 22% less than a year earlier. This rate was influenced by the reduction of export (29% down), which was 11,900 TEUs. Export accounts for the largest share of transport between Russia and Japan, because a 30% increase in imports (2,900 TEU) and 140% increase in transits (28 TEU) have not changed the negative trend. 
TransContainer revealed that 2,017 container trains had made international runs on the railway network from January to June 2010. 926 of them were with TransContainer’s wagons. During the same period in 2009, these figures were 1,273 and 431 respectively. 226,510 TEU have been transported in container trains this year, including 123,060 TEU in TransContainer’s wagons. Last year these figures were141,360 TEU and 60,920 TEU respectively. In general, the volume of traffic in container trains grew by 60% in the first half of 2010, and by 102% in terms of TransContainer’s wagons. 
For exports (which are 44% up), 1,104 trains have run, carrying 134,500 TEUs (in the first half of 2009 there was 812 trains / 93,900 TEUs), and this figure included 60,690 of TransContainer’s wagons and 28,720 TEUs respectively. The main exported goods were pulp and paper products, polymers, caprolactam, aluminum, timber, synthetic rubber and fiberboard panels. 
Imports have grown by 110% (586 trains compared to 296, including 391 and 201 TransContainer wagons, respectively). In the 20-foot equivalent, it is 69,000 and 32,900 units, respectively. Among the key cargoes, one can note automotive parts, consumer goods, household appliances and construction materials. 
In transit traffic, 327 trains have made their runs, which is 58% more than in the previous year (165 trains). In the 20-foot equivalent, it is 23,000 and 14,600, respectively. 10,400 TEUs was carried by TransContainer’s wagons in the first half of 2010, compared with 5,200 TEUs carried by the company in 2009. Transit cargoes were mostly spare parts, consumer goods and ferroalloys. 
On 20th April 2010, Finnish freight forwarders Nurminen Logistics and Kuehne + Nagel Finland, Russian companies Transgarant and FESCO Integrated Transport (FIT), (with the participation of the Octyabrskaya Railways and VR Cargo of Finnish Railways) successfully organised the delivery of a complete container train (64 40-foot containers) from Finland by the route Hamina - Buslovskaya - Port East with further delivery on to China, Korea or Taiwan. 
This was done in the framework of the Coordinating Council on Transsiberian Transportation (CCTT). The train has gone through the Transsiberian railway for 10 days. “An important role in the organisation of this train and its forwarding by this route belongs to the RZD Central Traffic Directorate and the Federal Customs Service, which fulfilled the CCTT’s request to form this train (which consisted of 59 conventional wagons) in Finland and to run it to Buslovskaya station,” said Gennady Bessonov, Secretary-General of the CCTT, adding that RZD’s help was a significant factor behind this project’s competitive advantages. 
Having received permission to put containers on the flat wagons in a special way (doors outside), the company was able to considerably reduce the time taken by customs inspections. Also, FESCO Integrated Transport, a freight forwarding service company, took responsibility for the safety and security of the containers (the standard conditions are that RZD is responsible for cargo safety). 

Strengthening External Ties 
In the first half of 2010 TransContainer was able to improve its basic performance indicators. The company’s flat wagons moved 552,400 TEUs, which is 1.4% more than in the same period last year. Of this amount, 334,200 TEUs were moved on domestic routes, with 218,200 TEUs being international traffic. 
Cargo traffic on the company’s own flat wagons has grown by 17.9% in the 2nd quarter this year compared with the 1st quarter, which includes a 12.6% growth on domestic routes and 26.6% up in international communication. TransContainer’s terminals have handled 727,000 TEUs for 6 months of 2010, which is by 6.7% more than last year. 
The first half of the year was also remarkable, with the launch of several new international projects. A new service in the sector of chemical cargo container transport was started together with DB Schenker BTT GmbH. In the future, it is planned to expand the network of Russian terminals which can receive and handle chemicals. 
A door-to-door delivery service to the Caucasus has been developed too. A multi-modal logistics chain for the delivery of goods between Russia and Armenia via the crossing point Lars - Kazbegi on the Russian-Georgian border has been worked out together with Apaven, an agency from the Republic of Armenia. This overland border crossing point resumed work on March 1st, 2010. 
It is estimated that turnover in this direction will be 200 TEUs per month in the first stage of the project, and will continue growing, which will bring a revival and strengthening of trade and economic relations between the two countries. Also, the successful implementation of this transport solution paves the way for considering new alternative ways to transport cargo to the Middle East, including Iran. A full complex of forwarding services will be provided for the client, including delivery to the client’s warehouse. 
In June 2010 TransContainer has launched a new logistics scheme, which is an alternative to the old car parts delivery route from Italy to Yelabuga (Tatarstan) through the port of Novorossiysk. Now a new route is being tested, with a new departure point and without the use of sea transport. The new delivery method will take only nine days instead of the previous one month. A container train starts from the city of Pescara (Italy), which is 200 kilometres away from Rome, and arrives at the container terminal TransContainer — Slovakia a.s. in Dobre, before moving on to Tikhonovo station on the Kuibyshevskaya Railway network, where Tatarstan’s car assembly complex SOLLERS is located.
It is predicted that traffic there will be 500 TEUs per month. It is noteworthy that this project continues the trend of providing integrated logistics services for leading European automotive corporations that have assembly plants in Russia. Let us remember that TransContainer has already arranged the transport of automotive parts from Europe for the Volkswagen and Peugeot-Citroen industrial complexes in the Kaluga region. 
In order to enhance the export potential of Russia and to fulfil the task set by the RF Government to organise the export of grain to countries in South-East Asia, TransContainer and Contrail-Byte Siberia have shipped a container train with wheat. The train was formed at TransContainer’s terminal at Kleschiha station on the West-Siberian Railway, using a special system to load bulk grain and keep it safe. 
This train went to the port of Nakhodka and then on to consignees in the ports of South-Eeast Asia, without reloading at the ports. Its use of container transport technologies for grain exports circumvents the extra costs of reloading and accumulation of grain in the ports of departure. This makes cargo transport costs considerably lower. Unfortunately, this technology will not be tried until next year, since Russia has imposed a ban on grain exports until the end of 2010. 
In June 2010, TransContainer and GEFCO Group signed a memorandum of intent to create joint venture to develop multi-modal traffic between Europe and Russia. The main aim of this joint venture will be providing clients with comprehensive transport and forwarding services for container cargo delivery by railway, including organisation of the terminal handling of goods and services “from door to door”. The partners will develop optimal delivery routes, types and ways of providing transport and forwarding services for clients. Petr Baskakov, CEO of TransContainer says that, in the first stages, traffic could reach 2,000 TEU to 2,500 TEU per month. 
Joint Russian-German company Trans-Eurasia Logistics GmbH has started regular container services between Duisburg (Germany) and Moscow in June this year, with the support of TransContainer and DB Intermodal. A train called The Moskvich (Moscovite) runs once a week, travelling 2,200 kilometres in 107 hours. The service does not just feature container transport. It also provides terminal cargo handling at departure and arrival points, warehousing services, ongoing monitoring of container movement, and delivery by truck from the destination station to the warehouse. 
Here, a combined CIM-SMGS Invoice can be used, which makes customs clearance of cargoes at the destination much faster. The train runs up to the border of Poland and the Republic of Belarus, where containers are reloaded onto Transcontainer’s wagons. Additionally, it is possible to send containers to the various stations on the territory of Russia and the CIS countries.
In order to realise the new project, TransContainer has provided its own containers, which are located in the container depots of Hamburg, Rotterdam, Antwerp and Duisburg, where contracts on storing equipment are signed. Trans-Eurasia Logistics GmbH is the operator of these services. 
“Having seen the increased customer demand for logistics services in this region, we and our partners became the first who proposed a regular cross-cutting container train service from the centre of Germany to the Russian capital,” said Dr. Karl-Friedrich Rausch, Transport and Logistics Board Member of DB Mobility Logistics AG (DB ML AG). “We are making every effort to assure the good quality and high reliability of the new rail link for our customers,” he said. 
“The purpose of our joint project is to offer logistic services such as organisation of container transport between Western Europe and Russia, provided from a single source, and thereby to strengthen and make railway freight effective on this important European transport path,” commented Dr Alexander Hedderich, Chairman of DB Schenker Rail. 
Experts from TransContainer are confident that there is a high demand for the new service, and not just among European customers. “This project has aroused widespread interest from the main Russian exporters, which is made obvious by the high loading figures for their rolling stock in the western direction. Also, the delivery time of such containers to Duisburg has been halved, compared to the alternative transport via the Big Port of St Petersburg, and it is the best alternative to motor transport,” emphasised Pavel Sokolov, Deputy Sales Director at TransContainer. 
by Elena Ushkova
    [~DETAIL_TEXT] => 
Going Up 
International large-tonnage container traffic by the Transsib has not yet returned to pre-crisis levels. It fell by an average of 60% in 2009. In the first half of 2010 a partial restoration of volumes could be noticed. A total of 163,700 TEUs (103,500 containers) have been moved, which is 32% more than during the first six months of 2009 (124,100 TEU / 80,600 containers). 
It includes the growth of transit by 63% in the first half of 2010 which amounted to 12,900 TEU; imports, which grew by 69% and reached 83,400 TEUs and exports which grew by only 1% and amounted to 67,400 TEUs. 
Routes between Russia and the Republic of Korea showed the largest growth (52% up by the first half of 2009). Shipments of large-tonnage containers in this sector between January and June 2010 were 41,900 TEUs. This includes 22,700 TEU of imported cargoes (81% more than during the same period of 2009); 6,900 TEU in transit (13% up) and 12,300 TEU in export (37% up). 
The results for routes between Russia and China were half as good. There was only 25% growth. 96,500 TEU was transported here for the period January to June. This figure includes 58,400 TEU in import (62% up on the first half of 2009), 5,000 TEU in transit (291 % up) and 33,100 TEU in export (16% down). 
At the same time, the traffic volume on the routes between Russia and Japan continued to decline. During the first half of 2010,14,900 TEUs was carried, which is 22% less than a year earlier. This rate was influenced by the reduction of export (29% down), which was 11,900 TEUs. Export accounts for the largest share of transport between Russia and Japan, because a 30% increase in imports (2,900 TEU) and 140% increase in transits (28 TEU) have not changed the negative trend. 
TransContainer revealed that 2,017 container trains had made international runs on the railway network from January to June 2010. 926 of them were with TransContainer’s wagons. During the same period in 2009, these figures were 1,273 and 431 respectively. 226,510 TEU have been transported in container trains this year, including 123,060 TEU in TransContainer’s wagons. Last year these figures were141,360 TEU and 60,920 TEU respectively. In general, the volume of traffic in container trains grew by 60% in the first half of 2010, and by 102% in terms of TransContainer’s wagons. 
For exports (which are 44% up), 1,104 trains have run, carrying 134,500 TEUs (in the first half of 2009 there was 812 trains / 93,900 TEUs), and this figure included 60,690 of TransContainer’s wagons and 28,720 TEUs respectively. The main exported goods were pulp and paper products, polymers, caprolactam, aluminum, timber, synthetic rubber and fiberboard panels. 
Imports have grown by 110% (586 trains compared to 296, including 391 and 201 TransContainer wagons, respectively). In the 20-foot equivalent, it is 69,000 and 32,900 units, respectively. Among the key cargoes, one can note automotive parts, consumer goods, household appliances and construction materials. 
In transit traffic, 327 trains have made their runs, which is 58% more than in the previous year (165 trains). In the 20-foot equivalent, it is 23,000 and 14,600, respectively. 10,400 TEUs was carried by TransContainer’s wagons in the first half of 2010, compared with 5,200 TEUs carried by the company in 2009. Transit cargoes were mostly spare parts, consumer goods and ferroalloys. 
On 20th April 2010, Finnish freight forwarders Nurminen Logistics and Kuehne + Nagel Finland, Russian companies Transgarant and FESCO Integrated Transport (FIT), (with the participation of the Octyabrskaya Railways and VR Cargo of Finnish Railways) successfully organised the delivery of a complete container train (64 40-foot containers) from Finland by the route Hamina - Buslovskaya - Port East with further delivery on to China, Korea or Taiwan. 
This was done in the framework of the Coordinating Council on Transsiberian Transportation (CCTT). The train has gone through the Transsiberian railway for 10 days. “An important role in the organisation of this train and its forwarding by this route belongs to the RZD Central Traffic Directorate and the Federal Customs Service, which fulfilled the CCTT’s request to form this train (which consisted of 59 conventional wagons) in Finland and to run it to Buslovskaya station,” said Gennady Bessonov, Secretary-General of the CCTT, adding that RZD’s help was a significant factor behind this project’s competitive advantages. 
Having received permission to put containers on the flat wagons in a special way (doors outside), the company was able to considerably reduce the time taken by customs inspections. Also, FESCO Integrated Transport, a freight forwarding service company, took responsibility for the safety and security of the containers (the standard conditions are that RZD is responsible for cargo safety). 

Strengthening External Ties 
In the first half of 2010 TransContainer was able to improve its basic performance indicators. The company’s flat wagons moved 552,400 TEUs, which is 1.4% more than in the same period last year. Of this amount, 334,200 TEUs were moved on domestic routes, with 218,200 TEUs being international traffic. 
Cargo traffic on the company’s own flat wagons has grown by 17.9% in the 2nd quarter this year compared with the 1st quarter, which includes a 12.6% growth on domestic routes and 26.6% up in international communication. TransContainer’s terminals have handled 727,000 TEUs for 6 months of 2010, which is by 6.7% more than last year. 
The first half of the year was also remarkable, with the launch of several new international projects. A new service in the sector of chemical cargo container transport was started together with DB Schenker BTT GmbH. In the future, it is planned to expand the network of Russian terminals which can receive and handle chemicals. 
A door-to-door delivery service to the Caucasus has been developed too. A multi-modal logistics chain for the delivery of goods between Russia and Armenia via the crossing point Lars - Kazbegi on the Russian-Georgian border has been worked out together with Apaven, an agency from the Republic of Armenia. This overland border crossing point resumed work on March 1st, 2010. 
It is estimated that turnover in this direction will be 200 TEUs per month in the first stage of the project, and will continue growing, which will bring a revival and strengthening of trade and economic relations between the two countries. Also, the successful implementation of this transport solution paves the way for considering new alternative ways to transport cargo to the Middle East, including Iran. A full complex of forwarding services will be provided for the client, including delivery to the client’s warehouse. 
In June 2010 TransContainer has launched a new logistics scheme, which is an alternative to the old car parts delivery route from Italy to Yelabuga (Tatarstan) through the port of Novorossiysk. Now a new route is being tested, with a new departure point and without the use of sea transport. The new delivery method will take only nine days instead of the previous one month. A container train starts from the city of Pescara (Italy), which is 200 kilometres away from Rome, and arrives at the container terminal TransContainer — Slovakia a.s. in Dobre, before moving on to Tikhonovo station on the Kuibyshevskaya Railway network, where Tatarstan’s car assembly complex SOLLERS is located.
It is predicted that traffic there will be 500 TEUs per month. It is noteworthy that this project continues the trend of providing integrated logistics services for leading European automotive corporations that have assembly plants in Russia. Let us remember that TransContainer has already arranged the transport of automotive parts from Europe for the Volkswagen and Peugeot-Citroen industrial complexes in the Kaluga region. 
In order to enhance the export potential of Russia and to fulfil the task set by the RF Government to organise the export of grain to countries in South-East Asia, TransContainer and Contrail-Byte Siberia have shipped a container train with wheat. The train was formed at TransContainer’s terminal at Kleschiha station on the West-Siberian Railway, using a special system to load bulk grain and keep it safe. 
This train went to the port of Nakhodka and then on to consignees in the ports of South-Eeast Asia, without reloading at the ports. Its use of container transport technologies for grain exports circumvents the extra costs of reloading and accumulation of grain in the ports of departure. This makes cargo transport costs considerably lower. Unfortunately, this technology will not be tried until next year, since Russia has imposed a ban on grain exports until the end of 2010. 
In June 2010, TransContainer and GEFCO Group signed a memorandum of intent to create joint venture to develop multi-modal traffic between Europe and Russia. The main aim of this joint venture will be providing clients with comprehensive transport and forwarding services for container cargo delivery by railway, including organisation of the terminal handling of goods and services “from door to door”. The partners will develop optimal delivery routes, types and ways of providing transport and forwarding services for clients. Petr Baskakov, CEO of TransContainer says that, in the first stages, traffic could reach 2,000 TEU to 2,500 TEU per month. 
Joint Russian-German company Trans-Eurasia Logistics GmbH has started regular container services between Duisburg (Germany) and Moscow in June this year, with the support of TransContainer and DB Intermodal. A train called The Moskvich (Moscovite) runs once a week, travelling 2,200 kilometres in 107 hours. The service does not just feature container transport. It also provides terminal cargo handling at departure and arrival points, warehousing services, ongoing monitoring of container movement, and delivery by truck from the destination station to the warehouse. 
Here, a combined CIM-SMGS Invoice can be used, which makes customs clearance of cargoes at the destination much faster. The train runs up to the border of Poland and the Republic of Belarus, where containers are reloaded onto Transcontainer’s wagons. Additionally, it is possible to send containers to the various stations on the territory of Russia and the CIS countries.
In order to realise the new project, TransContainer has provided its own containers, which are located in the container depots of Hamburg, Rotterdam, Antwerp and Duisburg, where contracts on storing equipment are signed. Trans-Eurasia Logistics GmbH is the operator of these services. 
“Having seen the increased customer demand for logistics services in this region, we and our partners became the first who proposed a regular cross-cutting container train service from the centre of Germany to the Russian capital,” said Dr. Karl-Friedrich Rausch, Transport and Logistics Board Member of DB Mobility Logistics AG (DB ML AG). “We are making every effort to assure the good quality and high reliability of the new rail link for our customers,” he said. 
“The purpose of our joint project is to offer logistic services such as organisation of container transport between Western Europe and Russia, provided from a single source, and thereby to strengthen and make railway freight effective on this important European transport path,” commented Dr Alexander Hedderich, Chairman of DB Schenker Rail. 
Experts from TransContainer are confident that there is a high demand for the new service, and not just among European customers. “This project has aroused widespread interest from the main Russian exporters, which is made obvious by the high loading figures for their rolling stock in the western direction. Also, the delivery time of such containers to Duisburg has been halved, compared to the alternative transport via the Big Port of St Petersburg, and it is the best alternative to motor transport,” emphasised Pavel Sokolov, Deputy Sales Director at TransContainer. 
by Elena Ushkova
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    [DETAIL_TEXT] => 
Going Up 
International large-tonnage container traffic by the Transsib has not yet returned to pre-crisis levels. It fell by an average of 60% in 2009. In the first half of 2010 a partial restoration of volumes could be noticed. A total of 163,700 TEUs (103,500 containers) have been moved, which is 32% more than during the first six months of 2009 (124,100 TEU / 80,600 containers). 
It includes the growth of transit by 63% in the first half of 2010 which amounted to 12,900 TEU; imports, which grew by 69% and reached 83,400 TEUs and exports which grew by only 1% and amounted to 67,400 TEUs. 
Routes between Russia and the Republic of Korea showed the largest growth (52% up by the first half of 2009). Shipments of large-tonnage containers in this sector between January and June 2010 were 41,900 TEUs. This includes 22,700 TEU of imported cargoes (81% more than during the same period of 2009); 6,900 TEU in transit (13% up) and 12,300 TEU in export (37% up). 
The results for routes between Russia and China were half as good. There was only 25% growth. 96,500 TEU was transported here for the period January to June. This figure includes 58,400 TEU in import (62% up on the first half of 2009), 5,000 TEU in transit (291 % up) and 33,100 TEU in export (16% down). 
At the same time, the traffic volume on the routes between Russia and Japan continued to decline. During the first half of 2010,14,900 TEUs was carried, which is 22% less than a year earlier. This rate was influenced by the reduction of export (29% down), which was 11,900 TEUs. Export accounts for the largest share of transport between Russia and Japan, because a 30% increase in imports (2,900 TEU) and 140% increase in transits (28 TEU) have not changed the negative trend. 
TransContainer revealed that 2,017 container trains had made international runs on the railway network from January to June 2010. 926 of them were with TransContainer’s wagons. During the same period in 2009, these figures were 1,273 and 431 respectively. 226,510 TEU have been transported in container trains this year, including 123,060 TEU in TransContainer’s wagons. Last year these figures were141,360 TEU and 60,920 TEU respectively. In general, the volume of traffic in container trains grew by 60% in the first half of 2010, and by 102% in terms of TransContainer’s wagons. 
For exports (which are 44% up), 1,104 trains have run, carrying 134,500 TEUs (in the first half of 2009 there was 812 trains / 93,900 TEUs), and this figure included 60,690 of TransContainer’s wagons and 28,720 TEUs respectively. The main exported goods were pulp and paper products, polymers, caprolactam, aluminum, timber, synthetic rubber and fiberboard panels. 
Imports have grown by 110% (586 trains compared to 296, including 391 and 201 TransContainer wagons, respectively). In the 20-foot equivalent, it is 69,000 and 32,900 units, respectively. Among the key cargoes, one can note automotive parts, consumer goods, household appliances and construction materials. 
In transit traffic, 327 trains have made their runs, which is 58% more than in the previous year (165 trains). In the 20-foot equivalent, it is 23,000 and 14,600, respectively. 10,400 TEUs was carried by TransContainer’s wagons in the first half of 2010, compared with 5,200 TEUs carried by the company in 2009. Transit cargoes were mostly spare parts, consumer goods and ferroalloys. 
On 20th April 2010, Finnish freight forwarders Nurminen Logistics and Kuehne + Nagel Finland, Russian companies Transgarant and FESCO Integrated Transport (FIT), (with the participation of the Octyabrskaya Railways and VR Cargo of Finnish Railways) successfully organised the delivery of a complete container train (64 40-foot containers) from Finland by the route Hamina - Buslovskaya - Port East with further delivery on to China, Korea or Taiwan. 
This was done in the framework of the Coordinating Council on Transsiberian Transportation (CCTT). The train has gone through the Transsiberian railway for 10 days. “An important role in the organisation of this train and its forwarding by this route belongs to the RZD Central Traffic Directorate and the Federal Customs Service, which fulfilled the CCTT’s request to form this train (which consisted of 59 conventional wagons) in Finland and to run it to Buslovskaya station,” said Gennady Bessonov, Secretary-General of the CCTT, adding that RZD’s help was a significant factor behind this project’s competitive advantages. 
Having received permission to put containers on the flat wagons in a special way (doors outside), the company was able to considerably reduce the time taken by customs inspections. Also, FESCO Integrated Transport, a freight forwarding service company, took responsibility for the safety and security of the containers (the standard conditions are that RZD is responsible for cargo safety). 

Strengthening External Ties 
In the first half of 2010 TransContainer was able to improve its basic performance indicators. The company’s flat wagons moved 552,400 TEUs, which is 1.4% more than in the same period last year. Of this amount, 334,200 TEUs were moved on domestic routes, with 218,200 TEUs being international traffic. 
Cargo traffic on the company’s own flat wagons has grown by 17.9% in the 2nd quarter this year compared with the 1st quarter, which includes a 12.6% growth on domestic routes and 26.6% up in international communication. TransContainer’s terminals have handled 727,000 TEUs for 6 months of 2010, which is by 6.7% more than last year. 
The first half of the year was also remarkable, with the launch of several new international projects. A new service in the sector of chemical cargo container transport was started together with DB Schenker BTT GmbH. In the future, it is planned to expand the network of Russian terminals which can receive and handle chemicals. 
A door-to-door delivery service to the Caucasus has been developed too. A multi-modal logistics chain for the delivery of goods between Russia and Armenia via the crossing point Lars - Kazbegi on the Russian-Georgian border has been worked out together with Apaven, an agency from the Republic of Armenia. This overland border crossing point resumed work on March 1st, 2010. 
It is estimated that turnover in this direction will be 200 TEUs per month in the first stage of the project, and will continue growing, which will bring a revival and strengthening of trade and economic relations between the two countries. Also, the successful implementation of this transport solution paves the way for considering new alternative ways to transport cargo to the Middle East, including Iran. A full complex of forwarding services will be provided for the client, including delivery to the client’s warehouse. 
In June 2010 TransContainer has launched a new logistics scheme, which is an alternative to the old car parts delivery route from Italy to Yelabuga (Tatarstan) through the port of Novorossiysk. Now a new route is being tested, with a new departure point and without the use of sea transport. The new delivery method will take only nine days instead of the previous one month. A container train starts from the city of Pescara (Italy), which is 200 kilometres away from Rome, and arrives at the container terminal TransContainer — Slovakia a.s. in Dobre, before moving on to Tikhonovo station on the Kuibyshevskaya Railway network, where Tatarstan’s car assembly complex SOLLERS is located.
It is predicted that traffic there will be 500 TEUs per month. It is noteworthy that this project continues the trend of providing integrated logistics services for leading European automotive corporations that have assembly plants in Russia. Let us remember that TransContainer has already arranged the transport of automotive parts from Europe for the Volkswagen and Peugeot-Citroen industrial complexes in the Kaluga region. 
In order to enhance the export potential of Russia and to fulfil the task set by the RF Government to organise the export of grain to countries in South-East Asia, TransContainer and Contrail-Byte Siberia have shipped a container train with wheat. The train was formed at TransContainer’s terminal at Kleschiha station on the West-Siberian Railway, using a special system to load bulk grain and keep it safe. 
This train went to the port of Nakhodka and then on to consignees in the ports of South-Eeast Asia, without reloading at the ports. Its use of container transport technologies for grain exports circumvents the extra costs of reloading and accumulation of grain in the ports of departure. This makes cargo transport costs considerably lower. Unfortunately, this technology will not be tried until next year, since Russia has imposed a ban on grain exports until the end of 2010. 
In June 2010, TransContainer and GEFCO Group signed a memorandum of intent to create joint venture to develop multi-modal traffic between Europe and Russia. The main aim of this joint venture will be providing clients with comprehensive transport and forwarding services for container cargo delivery by railway, including organisation of the terminal handling of goods and services “from door to door”. The partners will develop optimal delivery routes, types and ways of providing transport and forwarding services for clients. Petr Baskakov, CEO of TransContainer says that, in the first stages, traffic could reach 2,000 TEU to 2,500 TEU per month. 
Joint Russian-German company Trans-Eurasia Logistics GmbH has started regular container services between Duisburg (Germany) and Moscow in June this year, with the support of TransContainer and DB Intermodal. A train called The Moskvich (Moscovite) runs once a week, travelling 2,200 kilometres in 107 hours. The service does not just feature container transport. It also provides terminal cargo handling at departure and arrival points, warehousing services, ongoing monitoring of container movement, and delivery by truck from the destination station to the warehouse. 
Here, a combined CIM-SMGS Invoice can be used, which makes customs clearance of cargoes at the destination much faster. The train runs up to the border of Poland and the Republic of Belarus, where containers are reloaded onto Transcontainer’s wagons. Additionally, it is possible to send containers to the various stations on the territory of Russia and the CIS countries.
In order to realise the new project, TransContainer has provided its own containers, which are located in the container depots of Hamburg, Rotterdam, Antwerp and Duisburg, where contracts on storing equipment are signed. Trans-Eurasia Logistics GmbH is the operator of these services. 
“Having seen the increased customer demand for logistics services in this region, we and our partners became the first who proposed a regular cross-cutting container train service from the centre of Germany to the Russian capital,” said Dr. Karl-Friedrich Rausch, Transport and Logistics Board Member of DB Mobility Logistics AG (DB ML AG). “We are making every effort to assure the good quality and high reliability of the new rail link for our customers,” he said. 
“The purpose of our joint project is to offer logistic services such as organisation of container transport between Western Europe and Russia, provided from a single source, and thereby to strengthen and make railway freight effective on this important European transport path,” commented Dr Alexander Hedderich, Chairman of DB Schenker Rail. 
Experts from TransContainer are confident that there is a high demand for the new service, and not just among European customers. “This project has aroused widespread interest from the main Russian exporters, which is made obvious by the high loading figures for their rolling stock in the western direction. Also, the delivery time of such containers to Duisburg has been halved, compared to the alternative transport via the Big Port of St Petersburg, and it is the best alternative to motor transport,” emphasised Pavel Sokolov, Deputy Sales Director at TransContainer. 
by Elena Ushkova
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Going Up 
International large-tonnage container traffic by the Transsib has not yet returned to pre-crisis levels. It fell by an average of 60% in 2009. In the first half of 2010 a partial restoration of volumes could be noticed. A total of 163,700 TEUs (103,500 containers) have been moved, which is 32% more than during the first six months of 2009 (124,100 TEU / 80,600 containers). 
It includes the growth of transit by 63% in the first half of 2010 which amounted to 12,900 TEU; imports, which grew by 69% and reached 83,400 TEUs and exports which grew by only 1% and amounted to 67,400 TEUs. 
Routes between Russia and the Republic of Korea showed the largest growth (52% up by the first half of 2009). Shipments of large-tonnage containers in this sector between January and June 2010 were 41,900 TEUs. This includes 22,700 TEU of imported cargoes (81% more than during the same period of 2009); 6,900 TEU in transit (13% up) and 12,300 TEU in export (37% up). 
The results for routes between Russia and China were half as good. There was only 25% growth. 96,500 TEU was transported here for the period January to June. This figure includes 58,400 TEU in import (62% up on the first half of 2009), 5,000 TEU in transit (291 % up) and 33,100 TEU in export (16% down). 
At the same time, the traffic volume on the routes between Russia and Japan continued to decline. During the first half of 2010,14,900 TEUs was carried, which is 22% less than a year earlier. This rate was influenced by the reduction of export (29% down), which was 11,900 TEUs. Export accounts for the largest share of transport between Russia and Japan, because a 30% increase in imports (2,900 TEU) and 140% increase in transits (28 TEU) have not changed the negative trend. 
TransContainer revealed that 2,017 container trains had made international runs on the railway network from January to June 2010. 926 of them were with TransContainer’s wagons. During the same period in 2009, these figures were 1,273 and 431 respectively. 226,510 TEU have been transported in container trains this year, including 123,060 TEU in TransContainer’s wagons. Last year these figures were141,360 TEU and 60,920 TEU respectively. In general, the volume of traffic in container trains grew by 60% in the first half of 2010, and by 102% in terms of TransContainer’s wagons. 
For exports (which are 44% up), 1,104 trains have run, carrying 134,500 TEUs (in the first half of 2009 there was 812 trains / 93,900 TEUs), and this figure included 60,690 of TransContainer’s wagons and 28,720 TEUs respectively. The main exported goods were pulp and paper products, polymers, caprolactam, aluminum, timber, synthetic rubber and fiberboard panels. 
Imports have grown by 110% (586 trains compared to 296, including 391 and 201 TransContainer wagons, respectively). In the 20-foot equivalent, it is 69,000 and 32,900 units, respectively. Among the key cargoes, one can note automotive parts, consumer goods, household appliances and construction materials. 
In transit traffic, 327 trains have made their runs, which is 58% more than in the previous year (165 trains). In the 20-foot equivalent, it is 23,000 and 14,600, respectively. 10,400 TEUs was carried by TransContainer’s wagons in the first half of 2010, compared with 5,200 TEUs carried by the company in 2009. Transit cargoes were mostly spare parts, consumer goods and ferroalloys. 
On 20th April 2010, Finnish freight forwarders Nurminen Logistics and Kuehne + Nagel Finland, Russian companies Transgarant and FESCO Integrated Transport (FIT), (with the participation of the Octyabrskaya Railways and VR Cargo of Finnish Railways) successfully organised the delivery of a complete container train (64 40-foot containers) from Finland by the route Hamina - Buslovskaya - Port East with further delivery on to China, Korea or Taiwan. 
This was done in the framework of the Coordinating Council on Transsiberian Transportation (CCTT). The train has gone through the Transsiberian railway for 10 days. “An important role in the organisation of this train and its forwarding by this route belongs to the RZD Central Traffic Directorate and the Federal Customs Service, which fulfilled the CCTT’s request to form this train (which consisted of 59 conventional wagons) in Finland and to run it to Buslovskaya station,” said Gennady Bessonov, Secretary-General of the CCTT, adding that RZD’s help was a significant factor behind this project’s competitive advantages. 
Having received permission to put containers on the flat wagons in a special way (doors outside), the company was able to considerably reduce the time taken by customs inspections. Also, FESCO Integrated Transport, a freight forwarding service company, took responsibility for the safety and security of the containers (the standard conditions are that RZD is responsible for cargo safety). 

Strengthening External Ties 
In the first half of 2010 TransContainer was able to improve its basic performance indicators. The company’s flat wagons moved 552,400 TEUs, which is 1.4% more than in the same period last year. Of this amount, 334,200 TEUs were moved on domestic routes, with 218,200 TEUs being international traffic. 
Cargo traffic on the company’s own flat wagons has grown by 17.9% in the 2nd quarter this year compared with the 1st quarter, which includes a 12.6% growth on domestic routes and 26.6% up in international communication. TransContainer’s terminals have handled 727,000 TEUs for 6 months of 2010, which is by 6.7% more than last year. 
The first half of the year was also remarkable, with the launch of several new international projects. A new service in the sector of chemical cargo container transport was started together with DB Schenker BTT GmbH. In the future, it is planned to expand the network of Russian terminals which can receive and handle chemicals. 
A door-to-door delivery service to the Caucasus has been developed too. A multi-modal logistics chain for the delivery of goods between Russia and Armenia via the crossing point Lars - Kazbegi on the Russian-Georgian border has been worked out together with Apaven, an agency from the Republic of Armenia. This overland border crossing point resumed work on March 1st, 2010. 
It is estimated that turnover in this direction will be 200 TEUs per month in the first stage of the project, and will continue growing, which will bring a revival and strengthening of trade and economic relations between the two countries. Also, the successful implementation of this transport solution paves the way for considering new alternative ways to transport cargo to the Middle East, including Iran. A full complex of forwarding services will be provided for the client, including delivery to the client’s warehouse. 
In June 2010 TransContainer has launched a new logistics scheme, which is an alternative to the old car parts delivery route from Italy to Yelabuga (Tatarstan) through the port of Novorossiysk. Now a new route is being tested, with a new departure point and without the use of sea transport. The new delivery method will take only nine days instead of the previous one month. A container train starts from the city of Pescara (Italy), which is 200 kilometres away from Rome, and arrives at the container terminal TransContainer — Slovakia a.s. in Dobre, before moving on to Tikhonovo station on the Kuibyshevskaya Railway network, where Tatarstan’s car assembly complex SOLLERS is located.
It is predicted that traffic there will be 500 TEUs per month. It is noteworthy that this project continues the trend of providing integrated logistics services for leading European automotive corporations that have assembly plants in Russia. Let us remember that TransContainer has already arranged the transport of automotive parts from Europe for the Volkswagen and Peugeot-Citroen industrial complexes in the Kaluga region. 
In order to enhance the export potential of Russia and to fulfil the task set by the RF Government to organise the export of grain to countries in South-East Asia, TransContainer and Contrail-Byte Siberia have shipped a container train with wheat. The train was formed at TransContainer’s terminal at Kleschiha station on the West-Siberian Railway, using a special system to load bulk grain and keep it safe. 
This train went to the port of Nakhodka and then on to consignees in the ports of South-Eeast Asia, without reloading at the ports. Its use of container transport technologies for grain exports circumvents the extra costs of reloading and accumulation of grain in the ports of departure. This makes cargo transport costs considerably lower. Unfortunately, this technology will not be tried until next year, since Russia has imposed a ban on grain exports until the end of 2010. 
In June 2010, TransContainer and GEFCO Group signed a memorandum of intent to create joint venture to develop multi-modal traffic between Europe and Russia. The main aim of this joint venture will be providing clients with comprehensive transport and forwarding services for container cargo delivery by railway, including organisation of the terminal handling of goods and services “from door to door”. The partners will develop optimal delivery routes, types and ways of providing transport and forwarding services for clients. Petr Baskakov, CEO of TransContainer says that, in the first stages, traffic could reach 2,000 TEU to 2,500 TEU per month. 
Joint Russian-German company Trans-Eurasia Logistics GmbH has started regular container services between Duisburg (Germany) and Moscow in June this year, with the support of TransContainer and DB Intermodal. A train called The Moskvich (Moscovite) runs once a week, travelling 2,200 kilometres in 107 hours. The service does not just feature container transport. It also provides terminal cargo handling at departure and arrival points, warehousing services, ongoing monitoring of container movement, and delivery by truck from the destination station to the warehouse. 
Here, a combined CIM-SMGS Invoice can be used, which makes customs clearance of cargoes at the destination much faster. The train runs up to the border of Poland and the Republic of Belarus, where containers are reloaded onto Transcontainer’s wagons. Additionally, it is possible to send containers to the various stations on the territory of Russia and the CIS countries.
In order to realise the new project, TransContainer has provided its own containers, which are located in the container depots of Hamburg, Rotterdam, Antwerp and Duisburg, where contracts on storing equipment are signed. Trans-Eurasia Logistics GmbH is the operator of these services. 
“Having seen the increased customer demand for logistics services in this region, we and our partners became the first who proposed a regular cross-cutting container train service from the centre of Germany to the Russian capital,” said Dr. Karl-Friedrich Rausch, Transport and Logistics Board Member of DB Mobility Logistics AG (DB ML AG). “We are making every effort to assure the good quality and high reliability of the new rail link for our customers,” he said. 
“The purpose of our joint project is to offer logistic services such as organisation of container transport between Western Europe and Russia, provided from a single source, and thereby to strengthen and make railway freight effective on this important European transport path,” commented Dr Alexander Hedderich, Chairman of DB Schenker Rail. 
Experts from TransContainer are confident that there is a high demand for the new service, and not just among European customers. “This project has aroused widespread interest from the main Russian exporters, which is made obvious by the high loading figures for their rolling stock in the western direction. Also, the delivery time of such containers to Duisburg has been halved, compared to the alternative transport via the Big Port of St Petersburg, and it is the best alternative to motor transport,” emphasised Pavel Sokolov, Deputy Sales Director at TransContainer. 
by Elena Ushkova
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On the Way to the Market 
The Ministry of Transport of Russia, the main developer of the Action Plan for the Railway Structural Reform for the period from 2010 to 2011, proceeded from those aims and objectives of the reforms that were expressed in the following previously adopted and implemented documents: the Program of Structural Reform (2001), The Targeted Model for Railway Transport Services (2007), the Program of Competition Development in Russia (2009) and others. 
The main direction for changes is the creation of market relations in railway transport. This landmark in the new project is not supposed to be changed in any respect, and moreover, details will be specified, such as de-monopolisation and establishment of a competitive environment in transport and repairs; tariff liberalisation; bringing some previously frozen assets into commercial turnover; sale of subsidiaries and affiliates, etc. 
When the Program was adopted, the goal was set clearly to create a well-developed, competitive railway market. However, it was envisaged to create an institution of independent carriers by the end of the third stage of the reform, whereas today transport activities remain in a monopolistic state. Now, an assessment had to be made as to whether this makes sense, and how to complete organisational separation of infrastructure from transport activities, as well as the possibility of creating a number of vertically integrated companies which would compete with each other. 
Neither the first nor the second has been implemented yet. Only two of the six strategic activities aimed at promoting competition in freight and passenger traffic had been implemented by the beginning of 2010. The first one is that most of freight cars were transferred into private ownership, and the second is that passenger and freight transport were separated from each other in organisational terms. 
Experts from the Ministry of Transport emphasise that, until now, the stimulus has not been created to transfer mainline locomotives into private hands. 
The main reason for this is the absence of enough provisions in the legislation for locomotive services and their costs in the tariff, which was stipulated both in the Program of Reform and in the Competition Development Program. Such legislative gaps do not allow businesses to calculate return on investments. Therefore private investors are not interested in this activity. Today the average age of RZD locomotives is 25 years (in 2003 it was 22 years). 
When the Ministry of Transport was creating its action plan to implement the objectives of the third stage of the reform (and also those tasks which were still unfulfilled from the previous stages), it decided that the focus should be on measures which were “aimed at creating the basic conditions for de-monopolisation of the shipment part of the railway service market”. As a result, there should be the following new developments: 
• Organisational and legal conditions for private cargo carriers to start working; 
• Incentives for the acquisition of assets by operating companies which would allow them to work as carriers; 
• Conditions for the development of competition on long-distance routes in passenger transport; 
• Conditions for reducing rolling stock repair costs by operators and carriers due to the development of competition in the repair sector; 
• Mechanisms of self-regulation in railways in various railway service market sectors and in allied services; 
• Tools to make sure military and special transport works in conditions of de-monopolisation of separate sectors of the railway service market. 
At the same time, the transport department indicates that, after 2011, the changes will continue following the goals and objectives set in the Railway Transport Strategy in The Russian Federation up to 2030. They will focus on the implementation of such priorities as creating incentives to improve the performance of all market participants; increased inward investment; better forms and methods of state regulation with the purpose of protecting competition in the sector; gradual reduction of regulated sectors as the competition develops, etc. 

The Targeted Model Will Give Answers 
The main intrigue is that the activities to create a carrier (not just operator) market are only mentioned in the Plan, but details are not disclosed. According to the draft, the development of the Targeted Market Model of Railway Freight Traffic up to 2015 should be completed in the third quarter of 2010, and the main responsibility for it does not lie with the Ministry of Transport and Ministry of Economic Development. Probably, this document will finally reveal the important details. 
Meanwhile, this is how the Ministry of Transport describes its standpoint: “At first, the activities of independent freight carriers may be localised or specialised by certain geographic criteria and/or types of traffic. Everything depends on business opportunities. If the territory for independent carriers is restricted to only certain railway lines with the mandatory implementation of any cargo operations, it will actually create local monopolies, rather than local competition.” 
Meanwhile, it is emphasised that the updated legislation in the form of the new Railway Law and the new Railway Charter does not necessarily mean changing the general scheme of the market model of the first legislative package, where the main players were the owners of infrastructure, carriers, shippers and other participants. It means that the legislation remains to be written for the institute of carriers only. At the same time, the Ministry of Transport explains that today it is really necessary to revise the list of rights, duties and responsibilities of market participants. 
“The most important issue addressed in the draft law is how to reconsider the mechanism of interaction between carriers and infrastructure owners, as it is the basis for the development of competition in transport. Despite the fact that currently RZD still remains both the only carrier of cargoes and the infrastructure owner, there are other infrastructure owners appearing, and new carriers are being created,” emphasises the Ministry of Transport. 
According to the Plan, changes are scheduled for adoption in the third quarter of 2010 for the Railway Law (the bill was submitted to the Government), and in the second quarter of 2011 for the new Charter (this document is being finalised after the approval procedures). 
The developers of the Action Plan have figured out from practice that the relations associated with the provision of infrastructure services require detailed regulation. 
They believe that, for this purpose, it is necessary to make additions to the rules of non-discriminatory access to infrastructure services by carriers, and to improve the infrastructure services. These activities are mentioned in the Plan with the same timelines — the fourth quarter of 2010. FAS Russia is responsible for the first part, and the Transport Ministry for the second. 
Also, a number of tariff measures are planned for the development of the transport market. 
For example, proposals are being prepared to reduce the size of cross-subsidies in freight tariffs for the cargoes of different tariff classes (third quarter of 2010, the Ministry of Economic Development) and determination of tariffs suggested to carriers for infrastructure services (fourth quarter of 2010, Federal Tariff Service). 
In addition, a departmental Ministry of Transport’s Act is to be adopted in the fourth quarter of 2010, which is to approve the criteria list for refusals to transport cargoes. Such a list has been already worked out and quite well discussed. 
Thus, once again we note that the basic details in the upcoming issue of the transportation market will be identified in the targeted market model of rail freight transport. 

Operators’ Business Is Not Standing Still 
Further development of the market of delivering freight wagons for loading (in Russia it has received the name of ‘operator market’) is in the Action Plan of the most developed ones. It covers a number of aspects. There are the following main events here. On October 1st 2010, RZD’s subsidiary starts its activities in freight transport, gradually receiving RZD’s public park of cargo wagons (it is conventionally called The Second Cargo Company, or VGK). 
It will be decided later when and how a controlling stake in The First Cargo Company will be sold, and the shares of other RZD’s subsidiaries will be implemented on a special schedule. Ministry of Economic Development is the first in the Plan to implement these operations. 
Also, it is proposed to sell up to 50,000 RZD’s wagons whose service life ends, to private investors, in 2010. The first such auction took place on July 5th. Independent Transport Company (NTK, a part of NLMK) became a winner of 10,000 gondola cars. The transaction amount became 2.6 times higher than the starting price and amounted to more than RUR 3 billion. Together with the purchase, NTK also acquired a commitment to overhaul gondola cars, which is estimated three times more than the amount already paid. 
Neither the Ministry of Transport, nor RZD, has any doubt that it is necessary to create VGK, because the current situation with the ownership of rolling stock is recognised by both as highly inappropriate. It simply does not fit any logical scheme, which has already been stated many times at all levels. At the same time, the Ministry of Transport notes that in order to solve the problem of making the whole fleet private, it is necessary to analyse PGK’s activity and to answer questions of how the public character of the transport is going to be provided, and how transport services are going to be rendered observing the state’s interests. 
Among the tariff measures aimed at creating conditions for a competitive market of operating freight wagons, the Plan first of all mentions tariff uniformity in the second and the third paragraphs of the Price List № 10-01. It is scheduled to assess the change in tariff burden on cargo owners, including for specific cargoes. 
It is also planned to prepare a proposal for the unification of tariffs for empty runs by private wagons, regardless of the classification type of the previously transported cargo. There is a widely held opinion that this change is also long overdue. 
An important innovation is the creation an electronic information site (exchange) with data about availability of empty wagons or cargoes on the network. This should be implemented in late 2010 by all involved under the leadership of the Ministry of Economic Development. 
There is also a curious item in the plan, which illustrates the eternal cargo owners’ dream about a stable, predictable, and certainly low freight rate. 
Shippers are persistently searching for guaranteed guidance to market operators’ prices, which has brought such an article as “the development of a mechanism to use operator’s wagons for freight so that the final transport price for shippers should not be higher than the same freight in public wagons”. Probably, those who are involved in solving this problem will first of all seek some guaranteed, stable and predictable schemes in world practices, in such sectors as oil, metals and other commodities. 
It is noteworthy that when railways offered to establish a correlation between transport tariffs and fluctuations in the selling price of transported goods, such attempts were mostly rejected. 

Resume
After all, while working on the Plan, it is necessary to prepare the criteria for evaluating results or impact of the structural reform in railway transport. By the end of 2010, a departmental act should be issued on this subject under the guidance of the Ministry of Economic Development.  At the same time, most experts believe that the reform should be evaluated not by the reformed sellers, but by the buyers of transport services. 

viewpoint
Alexey Mordashov, 
Chairman of the Russian Steel Consortium Supervisory Board:
– The remaining RZD wagons given to the Second Cargo Company, which is currently being created, will bring market monopolisation by RZD’s subsidiaries, and simultaneously, they will leave the scope of state price regulation. There will be a replacement of a natural monopoly by the oligopoly of the carrier and its subsidiaries with a high level of concentration of certain types of rolling stock. An inevitable consequence is that competition will be suppressed and the traffic burden on enterprises in the real sector will grow. Our experience with a few types of specialised rolling stock shows that if a company is a monopoly, it will prefer to create an artificial deficit, rather than reduce prices for its services. 

 
 
Gamid Bulatov, 
Deputy Director of Department of State Tariff Regulation, Infrastructural Reforms and Energy Efficiency, Ministry of Economic Development of the Russian Federation: 
– The position of the Ministry of Economic Development regarding the competition in transport is simple: if someone can carry cheaper and more efficiently than RZD, then why not? But there should be defined rules for it. A situation where an alternative carrier begins to work only on the “golden” routes is unacceptable. Otherwise, RZD will stay with the least busy lines and with a huge hole in its budget. It is necessary to create the conditions for competition to start on all routes, therefore the principle of creating an infrastructure tariff should be worked out for the whole network, with an opportunity to use rising and falling coefficients. 
Apart from the problematic tariffs (because the locomotive and infrastructure costs are not included in them), there are also purely technical issues of general transport process managing, maintenance and optimisation. Today they do not provide for the efficient operation of several carriers on a single infrastructure. Thus, it is necessary to move towards the creation of economic incentives, such as tariff conditions and removal of administrative barriers. The loss of a few routes by RZD must not reduce its income and the efficiency of the whole system. 


Valery Veremeev, 
Head of RZD Department of Economic Conditions and Strategic Development: 
– The question about prices for railway services after the creation of VGK was analysed enough. Today we can say quite definitely that we do not see any systematic risks for shippers that the total cost of transport may grow. Moreover, operator competition in certain market sectors will become stronger, and consequently, prices should fall. Therefore, the creation of VGK seems less important than the general wagon operator market situation and the overall wagon supply/demand balance. In our opinion, the shortage of rolling stock is much more a dangerous factor than the proposed market structure. 
If loading continues growing rapidly, and wagon purchases are hampered, there will not be enough wagons, which will lead to a considerable growth in the costs of operator services. And this will happen with any scenario, regardless of whether the public park stays or disappears. We understand that VGK will be much more active than RZD, buying wagons, using effective investment tools and thus contributing to solving the problem of a possible shortage of rolling stock. 

Dmitry Korolev, 
Executive Director of the Council of Railway Rolling Stock Operators Market: 
– Railway reform has been generally successful. Private investments are being actively attracted in railway rolling stock. RZD has been moderating all processes in transport so far, but after the public park disappears, the company will practically leave this sector. After VGK is created, operators will have to take responsibility for successful cargo shipments in railway wagons. Thus, the operator community has to take a proactive role to get the state authorities to draft and adopt legal documentation, technical regulations and rules relating to the legal status and exploitation of railway rolling stock on the networks of RZD, CIS and Baltic countries. 
The operator community will receive a new social responsibility after the public park is transferred completely to RZD’s operator companies. Operators will become a necessary party in the business of carrying goods by rail. Self-regulating organisations are to become the main platform for debates and drafting documents. This will gradually come to such a market model which will reject unreliable parties, and the availability of strong players adhering to the principles of fair competition will be among its main features.
    [~DETAIL_TEXT] => 
On the Way to the Market 
The Ministry of Transport of Russia, the main developer of the Action Plan for the Railway Structural Reform for the period from 2010 to 2011, proceeded from those aims and objectives of the reforms that were expressed in the following previously adopted and implemented documents: the Program of Structural Reform (2001), The Targeted Model for Railway Transport Services (2007), the Program of Competition Development in Russia (2009) and others. 
The main direction for changes is the creation of market relations in railway transport. This landmark in the new project is not supposed to be changed in any respect, and moreover, details will be specified, such as de-monopolisation and establishment of a competitive environment in transport and repairs; tariff liberalisation; bringing some previously frozen assets into commercial turnover; sale of subsidiaries and affiliates, etc. 
When the Program was adopted, the goal was set clearly to create a well-developed, competitive railway market. However, it was envisaged to create an institution of independent carriers by the end of the third stage of the reform, whereas today transport activities remain in a monopolistic state. Now, an assessment had to be made as to whether this makes sense, and how to complete organisational separation of infrastructure from transport activities, as well as the possibility of creating a number of vertically integrated companies which would compete with each other. 
Neither the first nor the second has been implemented yet. Only two of the six strategic activities aimed at promoting competition in freight and passenger traffic had been implemented by the beginning of 2010. The first one is that most of freight cars were transferred into private ownership, and the second is that passenger and freight transport were separated from each other in organisational terms. 
Experts from the Ministry of Transport emphasise that, until now, the stimulus has not been created to transfer mainline locomotives into private hands. 
The main reason for this is the absence of enough provisions in the legislation for locomotive services and their costs in the tariff, which was stipulated both in the Program of Reform and in the Competition Development Program. Such legislative gaps do not allow businesses to calculate return on investments. Therefore private investors are not interested in this activity. Today the average age of RZD locomotives is 25 years (in 2003 it was 22 years). 
When the Ministry of Transport was creating its action plan to implement the objectives of the third stage of the reform (and also those tasks which were still unfulfilled from the previous stages), it decided that the focus should be on measures which were “aimed at creating the basic conditions for de-monopolisation of the shipment part of the railway service market”. As a result, there should be the following new developments: 
• Organisational and legal conditions for private cargo carriers to start working; 
• Incentives for the acquisition of assets by operating companies which would allow them to work as carriers; 
• Conditions for the development of competition on long-distance routes in passenger transport; 
• Conditions for reducing rolling stock repair costs by operators and carriers due to the development of competition in the repair sector; 
• Mechanisms of self-regulation in railways in various railway service market sectors and in allied services; 
• Tools to make sure military and special transport works in conditions of de-monopolisation of separate sectors of the railway service market. 
At the same time, the transport department indicates that, after 2011, the changes will continue following the goals and objectives set in the Railway Transport Strategy in The Russian Federation up to 2030. They will focus on the implementation of such priorities as creating incentives to improve the performance of all market participants; increased inward investment; better forms and methods of state regulation with the purpose of protecting competition in the sector; gradual reduction of regulated sectors as the competition develops, etc. 

The Targeted Model Will Give Answers 
The main intrigue is that the activities to create a carrier (not just operator) market are only mentioned in the Plan, but details are not disclosed. According to the draft, the development of the Targeted Market Model of Railway Freight Traffic up to 2015 should be completed in the third quarter of 2010, and the main responsibility for it does not lie with the Ministry of Transport and Ministry of Economic Development. Probably, this document will finally reveal the important details. 
Meanwhile, this is how the Ministry of Transport describes its standpoint: “At first, the activities of independent freight carriers may be localised or specialised by certain geographic criteria and/or types of traffic. Everything depends on business opportunities. If the territory for independent carriers is restricted to only certain railway lines with the mandatory implementation of any cargo operations, it will actually create local monopolies, rather than local competition.” 
Meanwhile, it is emphasised that the updated legislation in the form of the new Railway Law and the new Railway Charter does not necessarily mean changing the general scheme of the market model of the first legislative package, where the main players were the owners of infrastructure, carriers, shippers and other participants. It means that the legislation remains to be written for the institute of carriers only. At the same time, the Ministry of Transport explains that today it is really necessary to revise the list of rights, duties and responsibilities of market participants. 
“The most important issue addressed in the draft law is how to reconsider the mechanism of interaction between carriers and infrastructure owners, as it is the basis for the development of competition in transport. Despite the fact that currently RZD still remains both the only carrier of cargoes and the infrastructure owner, there are other infrastructure owners appearing, and new carriers are being created,” emphasises the Ministry of Transport. 
According to the Plan, changes are scheduled for adoption in the third quarter of 2010 for the Railway Law (the bill was submitted to the Government), and in the second quarter of 2011 for the new Charter (this document is being finalised after the approval procedures). 
The developers of the Action Plan have figured out from practice that the relations associated with the provision of infrastructure services require detailed regulation. 
They believe that, for this purpose, it is necessary to make additions to the rules of non-discriminatory access to infrastructure services by carriers, and to improve the infrastructure services. These activities are mentioned in the Plan with the same timelines — the fourth quarter of 2010. FAS Russia is responsible for the first part, and the Transport Ministry for the second. 
Also, a number of tariff measures are planned for the development of the transport market. 
For example, proposals are being prepared to reduce the size of cross-subsidies in freight tariffs for the cargoes of different tariff classes (third quarter of 2010, the Ministry of Economic Development) and determination of tariffs suggested to carriers for infrastructure services (fourth quarter of 2010, Federal Tariff Service). 
In addition, a departmental Ministry of Transport’s Act is to be adopted in the fourth quarter of 2010, which is to approve the criteria list for refusals to transport cargoes. Such a list has been already worked out and quite well discussed. 
Thus, once again we note that the basic details in the upcoming issue of the transportation market will be identified in the targeted market model of rail freight transport. 

Operators’ Business Is Not Standing Still 
Further development of the market of delivering freight wagons for loading (in Russia it has received the name of ‘operator market’) is in the Action Plan of the most developed ones. It covers a number of aspects. There are the following main events here. On October 1st 2010, RZD’s subsidiary starts its activities in freight transport, gradually receiving RZD’s public park of cargo wagons (it is conventionally called The Second Cargo Company, or VGK). 
It will be decided later when and how a controlling stake in The First Cargo Company will be sold, and the shares of other RZD’s subsidiaries will be implemented on a special schedule. Ministry of Economic Development is the first in the Plan to implement these operations. 
Also, it is proposed to sell up to 50,000 RZD’s wagons whose service life ends, to private investors, in 2010. The first such auction took place on July 5th. Independent Transport Company (NTK, a part of NLMK) became a winner of 10,000 gondola cars. The transaction amount became 2.6 times higher than the starting price and amounted to more than RUR 3 billion. Together with the purchase, NTK also acquired a commitment to overhaul gondola cars, which is estimated three times more than the amount already paid. 
Neither the Ministry of Transport, nor RZD, has any doubt that it is necessary to create VGK, because the current situation with the ownership of rolling stock is recognised by both as highly inappropriate. It simply does not fit any logical scheme, which has already been stated many times at all levels. At the same time, the Ministry of Transport notes that in order to solve the problem of making the whole fleet private, it is necessary to analyse PGK’s activity and to answer questions of how the public character of the transport is going to be provided, and how transport services are going to be rendered observing the state’s interests. 
Among the tariff measures aimed at creating conditions for a competitive market of operating freight wagons, the Plan first of all mentions tariff uniformity in the second and the third paragraphs of the Price List № 10-01. It is scheduled to assess the change in tariff burden on cargo owners, including for specific cargoes. 
It is also planned to prepare a proposal for the unification of tariffs for empty runs by private wagons, regardless of the classification type of the previously transported cargo. There is a widely held opinion that this change is also long overdue. 
An important innovation is the creation an electronic information site (exchange) with data about availability of empty wagons or cargoes on the network. This should be implemented in late 2010 by all involved under the leadership of the Ministry of Economic Development. 
There is also a curious item in the plan, which illustrates the eternal cargo owners’ dream about a stable, predictable, and certainly low freight rate. 
Shippers are persistently searching for guaranteed guidance to market operators’ prices, which has brought such an article as “the development of a mechanism to use operator’s wagons for freight so that the final transport price for shippers should not be higher than the same freight in public wagons”. Probably, those who are involved in solving this problem will first of all seek some guaranteed, stable and predictable schemes in world practices, in such sectors as oil, metals and other commodities. 
It is noteworthy that when railways offered to establish a correlation between transport tariffs and fluctuations in the selling price of transported goods, such attempts were mostly rejected. 

Resume
After all, while working on the Plan, it is necessary to prepare the criteria for evaluating results or impact of the structural reform in railway transport. By the end of 2010, a departmental act should be issued on this subject under the guidance of the Ministry of Economic Development.  At the same time, most experts believe that the reform should be evaluated not by the reformed sellers, but by the buyers of transport services. 

viewpoint
Alexey Mordashov, 
Chairman of the Russian Steel Consortium Supervisory Board:
– The remaining RZD wagons given to the Second Cargo Company, which is currently being created, will bring market monopolisation by RZD’s subsidiaries, and simultaneously, they will leave the scope of state price regulation. There will be a replacement of a natural monopoly by the oligopoly of the carrier and its subsidiaries with a high level of concentration of certain types of rolling stock. An inevitable consequence is that competition will be suppressed and the traffic burden on enterprises in the real sector will grow. Our experience with a few types of specialised rolling stock shows that if a company is a monopoly, it will prefer to create an artificial deficit, rather than reduce prices for its services. 

 
 
Gamid Bulatov, 
Deputy Director of Department of State Tariff Regulation, Infrastructural Reforms and Energy Efficiency, Ministry of Economic Development of the Russian Federation: 
– The position of the Ministry of Economic Development regarding the competition in transport is simple: if someone can carry cheaper and more efficiently than RZD, then why not? But there should be defined rules for it. A situation where an alternative carrier begins to work only on the “golden” routes is unacceptable. Otherwise, RZD will stay with the least busy lines and with a huge hole in its budget. It is necessary to create the conditions for competition to start on all routes, therefore the principle of creating an infrastructure tariff should be worked out for the whole network, with an opportunity to use rising and falling coefficients. 
Apart from the problematic tariffs (because the locomotive and infrastructure costs are not included in them), there are also purely technical issues of general transport process managing, maintenance and optimisation. Today they do not provide for the efficient operation of several carriers on a single infrastructure. Thus, it is necessary to move towards the creation of economic incentives, such as tariff conditions and removal of administrative barriers. The loss of a few routes by RZD must not reduce its income and the efficiency of the whole system. 


Valery Veremeev, 
Head of RZD Department of Economic Conditions and Strategic Development: 
– The question about prices for railway services after the creation of VGK was analysed enough. Today we can say quite definitely that we do not see any systematic risks for shippers that the total cost of transport may grow. Moreover, operator competition in certain market sectors will become stronger, and consequently, prices should fall. Therefore, the creation of VGK seems less important than the general wagon operator market situation and the overall wagon supply/demand balance. In our opinion, the shortage of rolling stock is much more a dangerous factor than the proposed market structure. 
If loading continues growing rapidly, and wagon purchases are hampered, there will not be enough wagons, which will lead to a considerable growth in the costs of operator services. And this will happen with any scenario, regardless of whether the public park stays or disappears. We understand that VGK will be much more active than RZD, buying wagons, using effective investment tools and thus contributing to solving the problem of a possible shortage of rolling stock. 

Dmitry Korolev, 
Executive Director of the Council of Railway Rolling Stock Operators Market: 
– Railway reform has been generally successful. Private investments are being actively attracted in railway rolling stock. RZD has been moderating all processes in transport so far, but after the public park disappears, the company will practically leave this sector. After VGK is created, operators will have to take responsibility for successful cargo shipments in railway wagons. Thus, the operator community has to take a proactive role to get the state authorities to draft and adopt legal documentation, technical regulations and rules relating to the legal status and exploitation of railway rolling stock on the networks of RZD, CIS and Baltic countries. 
The operator community will receive a new social responsibility after the public park is transferred completely to RZD’s operator companies. Operators will become a necessary party in the business of carrying goods by rail. Self-regulating organisations are to become the main platform for debates and drafting documents. This will gradually come to such a market model which will reject unreliable parties, and the availability of strong players adhering to the principles of fair competition will be among its main features.
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    [~PREVIEW_TEXT] => The Ministry of Transport of Russia has proposed to extend the ongoing structural railway reform to the end of 2011, meaning for another year. The plan of appropriate activities is now before the government for approval. What was not implemented in the time allotted to the reform? Will the general trends of the Russian transport market be followed as before?
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            [SECTION_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2010/3/6.jpg" border="1" alt=" " hspace="5" width="200" height="264" align="left" />The Ministry of Transport of Russia has proposed to extend the ongoing structural railway reform to the end of 2011, meaning for another year. The plan of appropriate activities is now before the government for approval. What was not implemented in the time allotted to the reform? Will the general trends of the Russian transport market be followed as before?
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            [ELEMENT_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2010/3/6.jpg" border="1" alt=" " hspace="5" width="200" height="264" align="left" />The Ministry of Transport of Russia has proposed to extend the ongoing structural railway reform to the end of 2011, meaning for another year. The plan of appropriate activities is now before the government for approval. What was not implemented in the time allotted to the reform? Will the general trends of the Russian transport market be followed as before?
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On the Way to the Market 
The Ministry of Transport of Russia, the main developer of the Action Plan for the Railway Structural Reform for the period from 2010 to 2011, proceeded from those aims and objectives of the reforms that were expressed in the following previously adopted and implemented documents: the Program of Structural Reform (2001), The Targeted Model for Railway Transport Services (2007), the Program of Competition Development in Russia (2009) and others. 
The main direction for changes is the creation of market relations in railway transport. This landmark in the new project is not supposed to be changed in any respect, and moreover, details will be specified, such as de-monopolisation and establishment of a competitive environment in transport and repairs; tariff liberalisation; bringing some previously frozen assets into commercial turnover; sale of subsidiaries and affiliates, etc. 
When the Program was adopted, the goal was set clearly to create a well-developed, competitive railway market. However, it was envisaged to create an institution of independent carriers by the end of the third stage of the reform, whereas today transport activities remain in a monopolistic state. Now, an assessment had to be made as to whether this makes sense, and how to complete organisational separation of infrastructure from transport activities, as well as the possibility of creating a number of vertically integrated companies which would compete with each other. 
Neither the first nor the second has been implemented yet. Only two of the six strategic activities aimed at promoting competition in freight and passenger traffic had been implemented by the beginning of 2010. The first one is that most of freight cars were transferred into private ownership, and the second is that passenger and freight transport were separated from each other in organisational terms. 
Experts from the Ministry of Transport emphasise that, until now, the stimulus has not been created to transfer mainline locomotives into private hands. 
The main reason for this is the absence of enough provisions in the legislation for locomotive services and their costs in the tariff, which was stipulated both in the Program of Reform and in the Competition Development Program. Such legislative gaps do not allow businesses to calculate return on investments. Therefore private investors are not interested in this activity. Today the average age of RZD locomotives is 25 years (in 2003 it was 22 years). 
When the Ministry of Transport was creating its action plan to implement the objectives of the third stage of the reform (and also those tasks which were still unfulfilled from the previous stages), it decided that the focus should be on measures which were “aimed at creating the basic conditions for de-monopolisation of the shipment part of the railway service market”. As a result, there should be the following new developments: 
• Organisational and legal conditions for private cargo carriers to start working; 
• Incentives for the acquisition of assets by operating companies which would allow them to work as carriers; 
• Conditions for the development of competition on long-distance routes in passenger transport; 
• Conditions for reducing rolling stock repair costs by operators and carriers due to the development of competition in the repair sector; 
• Mechanisms of self-regulation in railways in various railway service market sectors and in allied services; 
• Tools to make sure military and special transport works in conditions of de-monopolisation of separate sectors of the railway service market. 
At the same time, the transport department indicates that, after 2011, the changes will continue following the goals and objectives set in the Railway Transport Strategy in The Russian Federation up to 2030. They will focus on the implementation of such priorities as creating incentives to improve the performance of all market participants; increased inward investment; better forms and methods of state regulation with the purpose of protecting competition in the sector; gradual reduction of regulated sectors as the competition develops, etc. 

The Targeted Model Will Give Answers 
The main intrigue is that the activities to create a carrier (not just operator) market are only mentioned in the Plan, but details are not disclosed. According to the draft, the development of the Targeted Market Model of Railway Freight Traffic up to 2015 should be completed in the third quarter of 2010, and the main responsibility for it does not lie with the Ministry of Transport and Ministry of Economic Development. Probably, this document will finally reveal the important details. 
Meanwhile, this is how the Ministry of Transport describes its standpoint: “At first, the activities of independent freight carriers may be localised or specialised by certain geographic criteria and/or types of traffic. Everything depends on business opportunities. If the territory for independent carriers is restricted to only certain railway lines with the mandatory implementation of any cargo operations, it will actually create local monopolies, rather than local competition.” 
Meanwhile, it is emphasised that the updated legislation in the form of the new Railway Law and the new Railway Charter does not necessarily mean changing the general scheme of the market model of the first legislative package, where the main players were the owners of infrastructure, carriers, shippers and other participants. It means that the legislation remains to be written for the institute of carriers only. At the same time, the Ministry of Transport explains that today it is really necessary to revise the list of rights, duties and responsibilities of market participants. 
“The most important issue addressed in the draft law is how to reconsider the mechanism of interaction between carriers and infrastructure owners, as it is the basis for the development of competition in transport. Despite the fact that currently RZD still remains both the only carrier of cargoes and the infrastructure owner, there are other infrastructure owners appearing, and new carriers are being created,” emphasises the Ministry of Transport. 
According to the Plan, changes are scheduled for adoption in the third quarter of 2010 for the Railway Law (the bill was submitted to the Government), and in the second quarter of 2011 for the new Charter (this document is being finalised after the approval procedures). 
The developers of the Action Plan have figured out from practice that the relations associated with the provision of infrastructure services require detailed regulation. 
They believe that, for this purpose, it is necessary to make additions to the rules of non-discriminatory access to infrastructure services by carriers, and to improve the infrastructure services. These activities are mentioned in the Plan with the same timelines — the fourth quarter of 2010. FAS Russia is responsible for the first part, and the Transport Ministry for the second. 
Also, a number of tariff measures are planned for the development of the transport market. 
For example, proposals are being prepared to reduce the size of cross-subsidies in freight tariffs for the cargoes of different tariff classes (third quarter of 2010, the Ministry of Economic Development) and determination of tariffs suggested to carriers for infrastructure services (fourth quarter of 2010, Federal Tariff Service). 
In addition, a departmental Ministry of Transport’s Act is to be adopted in the fourth quarter of 2010, which is to approve the criteria list for refusals to transport cargoes. Such a list has been already worked out and quite well discussed. 
Thus, once again we note that the basic details in the upcoming issue of the transportation market will be identified in the targeted market model of rail freight transport. 

Operators’ Business Is Not Standing Still 
Further development of the market of delivering freight wagons for loading (in Russia it has received the name of ‘operator market’) is in the Action Plan of the most developed ones. It covers a number of aspects. There are the following main events here. On October 1st 2010, RZD’s subsidiary starts its activities in freight transport, gradually receiving RZD’s public park of cargo wagons (it is conventionally called The Second Cargo Company, or VGK). 
It will be decided later when and how a controlling stake in The First Cargo Company will be sold, and the shares of other RZD’s subsidiaries will be implemented on a special schedule. Ministry of Economic Development is the first in the Plan to implement these operations. 
Also, it is proposed to sell up to 50,000 RZD’s wagons whose service life ends, to private investors, in 2010. The first such auction took place on July 5th. Independent Transport Company (NTK, a part of NLMK) became a winner of 10,000 gondola cars. The transaction amount became 2.6 times higher than the starting price and amounted to more than RUR 3 billion. Together with the purchase, NTK also acquired a commitment to overhaul gondola cars, which is estimated three times more than the amount already paid. 
Neither the Ministry of Transport, nor RZD, has any doubt that it is necessary to create VGK, because the current situation with the ownership of rolling stock is recognised by both as highly inappropriate. It simply does not fit any logical scheme, which has already been stated many times at all levels. At the same time, the Ministry of Transport notes that in order to solve the problem of making the whole fleet private, it is necessary to analyse PGK’s activity and to answer questions of how the public character of the transport is going to be provided, and how transport services are going to be rendered observing the state’s interests. 
Among the tariff measures aimed at creating conditions for a competitive market of operating freight wagons, the Plan first of all mentions tariff uniformity in the second and the third paragraphs of the Price List № 10-01. It is scheduled to assess the change in tariff burden on cargo owners, including for specific cargoes. 
It is also planned to prepare a proposal for the unification of tariffs for empty runs by private wagons, regardless of the classification type of the previously transported cargo. There is a widely held opinion that this change is also long overdue. 
An important innovation is the creation an electronic information site (exchange) with data about availability of empty wagons or cargoes on the network. This should be implemented in late 2010 by all involved under the leadership of the Ministry of Economic Development. 
There is also a curious item in the plan, which illustrates the eternal cargo owners’ dream about a stable, predictable, and certainly low freight rate. 
Shippers are persistently searching for guaranteed guidance to market operators’ prices, which has brought such an article as “the development of a mechanism to use operator’s wagons for freight so that the final transport price for shippers should not be higher than the same freight in public wagons”. Probably, those who are involved in solving this problem will first of all seek some guaranteed, stable and predictable schemes in world practices, in such sectors as oil, metals and other commodities. 
It is noteworthy that when railways offered to establish a correlation between transport tariffs and fluctuations in the selling price of transported goods, such attempts were mostly rejected. 

Resume
After all, while working on the Plan, it is necessary to prepare the criteria for evaluating results or impact of the structural reform in railway transport. By the end of 2010, a departmental act should be issued on this subject under the guidance of the Ministry of Economic Development.  At the same time, most experts believe that the reform should be evaluated not by the reformed sellers, but by the buyers of transport services. 

viewpoint
Alexey Mordashov, 
Chairman of the Russian Steel Consortium Supervisory Board:
– The remaining RZD wagons given to the Second Cargo Company, which is currently being created, will bring market monopolisation by RZD’s subsidiaries, and simultaneously, they will leave the scope of state price regulation. There will be a replacement of a natural monopoly by the oligopoly of the carrier and its subsidiaries with a high level of concentration of certain types of rolling stock. An inevitable consequence is that competition will be suppressed and the traffic burden on enterprises in the real sector will grow. Our experience with a few types of specialised rolling stock shows that if a company is a monopoly, it will prefer to create an artificial deficit, rather than reduce prices for its services. 

 
 
Gamid Bulatov, 
Deputy Director of Department of State Tariff Regulation, Infrastructural Reforms and Energy Efficiency, Ministry of Economic Development of the Russian Federation: 
– The position of the Ministry of Economic Development regarding the competition in transport is simple: if someone can carry cheaper and more efficiently than RZD, then why not? But there should be defined rules for it. A situation where an alternative carrier begins to work only on the “golden” routes is unacceptable. Otherwise, RZD will stay with the least busy lines and with a huge hole in its budget. It is necessary to create the conditions for competition to start on all routes, therefore the principle of creating an infrastructure tariff should be worked out for the whole network, with an opportunity to use rising and falling coefficients. 
Apart from the problematic tariffs (because the locomotive and infrastructure costs are not included in them), there are also purely technical issues of general transport process managing, maintenance and optimisation. Today they do not provide for the efficient operation of several carriers on a single infrastructure. Thus, it is necessary to move towards the creation of economic incentives, such as tariff conditions and removal of administrative barriers. The loss of a few routes by RZD must not reduce its income and the efficiency of the whole system. 


Valery Veremeev, 
Head of RZD Department of Economic Conditions and Strategic Development: 
– The question about prices for railway services after the creation of VGK was analysed enough. Today we can say quite definitely that we do not see any systematic risks for shippers that the total cost of transport may grow. Moreover, operator competition in certain market sectors will become stronger, and consequently, prices should fall. Therefore, the creation of VGK seems less important than the general wagon operator market situation and the overall wagon supply/demand balance. In our opinion, the shortage of rolling stock is much more a dangerous factor than the proposed market structure. 
If loading continues growing rapidly, and wagon purchases are hampered, there will not be enough wagons, which will lead to a considerable growth in the costs of operator services. And this will happen with any scenario, regardless of whether the public park stays or disappears. We understand that VGK will be much more active than RZD, buying wagons, using effective investment tools and thus contributing to solving the problem of a possible shortage of rolling stock. 

Dmitry Korolev, 
Executive Director of the Council of Railway Rolling Stock Operators Market: 
– Railway reform has been generally successful. Private investments are being actively attracted in railway rolling stock. RZD has been moderating all processes in transport so far, but after the public park disappears, the company will practically leave this sector. After VGK is created, operators will have to take responsibility for successful cargo shipments in railway wagons. Thus, the operator community has to take a proactive role to get the state authorities to draft and adopt legal documentation, technical regulations and rules relating to the legal status and exploitation of railway rolling stock on the networks of RZD, CIS and Baltic countries. 
The operator community will receive a new social responsibility after the public park is transferred completely to RZD’s operator companies. Operators will become a necessary party in the business of carrying goods by rail. Self-regulating organisations are to become the main platform for debates and drafting documents. This will gradually come to such a market model which will reject unreliable parties, and the availability of strong players adhering to the principles of fair competition will be among its main features.
    [~DETAIL_TEXT] => 
On the Way to the Market 
The Ministry of Transport of Russia, the main developer of the Action Plan for the Railway Structural Reform for the period from 2010 to 2011, proceeded from those aims and objectives of the reforms that were expressed in the following previously adopted and implemented documents: the Program of Structural Reform (2001), The Targeted Model for Railway Transport Services (2007), the Program of Competition Development in Russia (2009) and others. 
The main direction for changes is the creation of market relations in railway transport. This landmark in the new project is not supposed to be changed in any respect, and moreover, details will be specified, such as de-monopolisation and establishment of a competitive environment in transport and repairs; tariff liberalisation; bringing some previously frozen assets into commercial turnover; sale of subsidiaries and affiliates, etc. 
When the Program was adopted, the goal was set clearly to create a well-developed, competitive railway market. However, it was envisaged to create an institution of independent carriers by the end of the third stage of the reform, whereas today transport activities remain in a monopolistic state. Now, an assessment had to be made as to whether this makes sense, and how to complete organisational separation of infrastructure from transport activities, as well as the possibility of creating a number of vertically integrated companies which would compete with each other. 
Neither the first nor the second has been implemented yet. Only two of the six strategic activities aimed at promoting competition in freight and passenger traffic had been implemented by the beginning of 2010. The first one is that most of freight cars were transferred into private ownership, and the second is that passenger and freight transport were separated from each other in organisational terms. 
Experts from the Ministry of Transport emphasise that, until now, the stimulus has not been created to transfer mainline locomotives into private hands. 
The main reason for this is the absence of enough provisions in the legislation for locomotive services and their costs in the tariff, which was stipulated both in the Program of Reform and in the Competition Development Program. Such legislative gaps do not allow businesses to calculate return on investments. Therefore private investors are not interested in this activity. Today the average age of RZD locomotives is 25 years (in 2003 it was 22 years). 
When the Ministry of Transport was creating its action plan to implement the objectives of the third stage of the reform (and also those tasks which were still unfulfilled from the previous stages), it decided that the focus should be on measures which were “aimed at creating the basic conditions for de-monopolisation of the shipment part of the railway service market”. As a result, there should be the following new developments: 
• Organisational and legal conditions for private cargo carriers to start working; 
• Incentives for the acquisition of assets by operating companies which would allow them to work as carriers; 
• Conditions for the development of competition on long-distance routes in passenger transport; 
• Conditions for reducing rolling stock repair costs by operators and carriers due to the development of competition in the repair sector; 
• Mechanisms of self-regulation in railways in various railway service market sectors and in allied services; 
• Tools to make sure military and special transport works in conditions of de-monopolisation of separate sectors of the railway service market. 
At the same time, the transport department indicates that, after 2011, the changes will continue following the goals and objectives set in the Railway Transport Strategy in The Russian Federation up to 2030. They will focus on the implementation of such priorities as creating incentives to improve the performance of all market participants; increased inward investment; better forms and methods of state regulation with the purpose of protecting competition in the sector; gradual reduction of regulated sectors as the competition develops, etc. 

The Targeted Model Will Give Answers 
The main intrigue is that the activities to create a carrier (not just operator) market are only mentioned in the Plan, but details are not disclosed. According to the draft, the development of the Targeted Market Model of Railway Freight Traffic up to 2015 should be completed in the third quarter of 2010, and the main responsibility for it does not lie with the Ministry of Transport and Ministry of Economic Development. Probably, this document will finally reveal the important details. 
Meanwhile, this is how the Ministry of Transport describes its standpoint: “At first, the activities of independent freight carriers may be localised or specialised by certain geographic criteria and/or types of traffic. Everything depends on business opportunities. If the territory for independent carriers is restricted to only certain railway lines with the mandatory implementation of any cargo operations, it will actually create local monopolies, rather than local competition.” 
Meanwhile, it is emphasised that the updated legislation in the form of the new Railway Law and the new Railway Charter does not necessarily mean changing the general scheme of the market model of the first legislative package, where the main players were the owners of infrastructure, carriers, shippers and other participants. It means that the legislation remains to be written for the institute of carriers only. At the same time, the Ministry of Transport explains that today it is really necessary to revise the list of rights, duties and responsibilities of market participants. 
“The most important issue addressed in the draft law is how to reconsider the mechanism of interaction between carriers and infrastructure owners, as it is the basis for the development of competition in transport. Despite the fact that currently RZD still remains both the only carrier of cargoes and the infrastructure owner, there are other infrastructure owners appearing, and new carriers are being created,” emphasises the Ministry of Transport. 
According to the Plan, changes are scheduled for adoption in the third quarter of 2010 for the Railway Law (the bill was submitted to the Government), and in the second quarter of 2011 for the new Charter (this document is being finalised after the approval procedures). 
The developers of the Action Plan have figured out from practice that the relations associated with the provision of infrastructure services require detailed regulation. 
They believe that, for this purpose, it is necessary to make additions to the rules of non-discriminatory access to infrastructure services by carriers, and to improve the infrastructure services. These activities are mentioned in the Plan with the same timelines — the fourth quarter of 2010. FAS Russia is responsible for the first part, and the Transport Ministry for the second. 
Also, a number of tariff measures are planned for the development of the transport market. 
For example, proposals are being prepared to reduce the size of cross-subsidies in freight tariffs for the cargoes of different tariff classes (third quarter of 2010, the Ministry of Economic Development) and determination of tariffs suggested to carriers for infrastructure services (fourth quarter of 2010, Federal Tariff Service). 
In addition, a departmental Ministry of Transport’s Act is to be adopted in the fourth quarter of 2010, which is to approve the criteria list for refusals to transport cargoes. Such a list has been already worked out and quite well discussed. 
Thus, once again we note that the basic details in the upcoming issue of the transportation market will be identified in the targeted market model of rail freight transport. 

Operators’ Business Is Not Standing Still 
Further development of the market of delivering freight wagons for loading (in Russia it has received the name of ‘operator market’) is in the Action Plan of the most developed ones. It covers a number of aspects. There are the following main events here. On October 1st 2010, RZD’s subsidiary starts its activities in freight transport, gradually receiving RZD’s public park of cargo wagons (it is conventionally called The Second Cargo Company, or VGK). 
It will be decided later when and how a controlling stake in The First Cargo Company will be sold, and the shares of other RZD’s subsidiaries will be implemented on a special schedule. Ministry of Economic Development is the first in the Plan to implement these operations. 
Also, it is proposed to sell up to 50,000 RZD’s wagons whose service life ends, to private investors, in 2010. The first such auction took place on July 5th. Independent Transport Company (NTK, a part of NLMK) became a winner of 10,000 gondola cars. The transaction amount became 2.6 times higher than the starting price and amounted to more than RUR 3 billion. Together with the purchase, NTK also acquired a commitment to overhaul gondola cars, which is estimated three times more than the amount already paid. 
Neither the Ministry of Transport, nor RZD, has any doubt that it is necessary to create VGK, because the current situation with the ownership of rolling stock is recognised by both as highly inappropriate. It simply does not fit any logical scheme, which has already been stated many times at all levels. At the same time, the Ministry of Transport notes that in order to solve the problem of making the whole fleet private, it is necessary to analyse PGK’s activity and to answer questions of how the public character of the transport is going to be provided, and how transport services are going to be rendered observing the state’s interests. 
Among the tariff measures aimed at creating conditions for a competitive market of operating freight wagons, the Plan first of all mentions tariff uniformity in the second and the third paragraphs of the Price List № 10-01. It is scheduled to assess the change in tariff burden on cargo owners, including for specific cargoes. 
It is also planned to prepare a proposal for the unification of tariffs for empty runs by private wagons, regardless of the classification type of the previously transported cargo. There is a widely held opinion that this change is also long overdue. 
An important innovation is the creation an electronic information site (exchange) with data about availability of empty wagons or cargoes on the network. This should be implemented in late 2010 by all involved under the leadership of the Ministry of Economic Development. 
There is also a curious item in the plan, which illustrates the eternal cargo owners’ dream about a stable, predictable, and certainly low freight rate. 
Shippers are persistently searching for guaranteed guidance to market operators’ prices, which has brought such an article as “the development of a mechanism to use operator’s wagons for freight so that the final transport price for shippers should not be higher than the same freight in public wagons”. Probably, those who are involved in solving this problem will first of all seek some guaranteed, stable and predictable schemes in world practices, in such sectors as oil, metals and other commodities. 
It is noteworthy that when railways offered to establish a correlation between transport tariffs and fluctuations in the selling price of transported goods, such attempts were mostly rejected. 

Resume
After all, while working on the Plan, it is necessary to prepare the criteria for evaluating results or impact of the structural reform in railway transport. By the end of 2010, a departmental act should be issued on this subject under the guidance of the Ministry of Economic Development.  At the same time, most experts believe that the reform should be evaluated not by the reformed sellers, but by the buyers of transport services. 

viewpoint
Alexey Mordashov, 
Chairman of the Russian Steel Consortium Supervisory Board:
– The remaining RZD wagons given to the Second Cargo Company, which is currently being created, will bring market monopolisation by RZD’s subsidiaries, and simultaneously, they will leave the scope of state price regulation. There will be a replacement of a natural monopoly by the oligopoly of the carrier and its subsidiaries with a high level of concentration of certain types of rolling stock. An inevitable consequence is that competition will be suppressed and the traffic burden on enterprises in the real sector will grow. Our experience with a few types of specialised rolling stock shows that if a company is a monopoly, it will prefer to create an artificial deficit, rather than reduce prices for its services. 

 
 
Gamid Bulatov, 
Deputy Director of Department of State Tariff Regulation, Infrastructural Reforms and Energy Efficiency, Ministry of Economic Development of the Russian Federation: 
– The position of the Ministry of Economic Development regarding the competition in transport is simple: if someone can carry cheaper and more efficiently than RZD, then why not? But there should be defined rules for it. A situation where an alternative carrier begins to work only on the “golden” routes is unacceptable. Otherwise, RZD will stay with the least busy lines and with a huge hole in its budget. It is necessary to create the conditions for competition to start on all routes, therefore the principle of creating an infrastructure tariff should be worked out for the whole network, with an opportunity to use rising and falling coefficients. 
Apart from the problematic tariffs (because the locomotive and infrastructure costs are not included in them), there are also purely technical issues of general transport process managing, maintenance and optimisation. Today they do not provide for the efficient operation of several carriers on a single infrastructure. Thus, it is necessary to move towards the creation of economic incentives, such as tariff conditions and removal of administrative barriers. The loss of a few routes by RZD must not reduce its income and the efficiency of the whole system. 


Valery Veremeev, 
Head of RZD Department of Economic Conditions and Strategic Development: 
– The question about prices for railway services after the creation of VGK was analysed enough. Today we can say quite definitely that we do not see any systematic risks for shippers that the total cost of transport may grow. Moreover, operator competition in certain market sectors will become stronger, and consequently, prices should fall. Therefore, the creation of VGK seems less important than the general wagon operator market situation and the overall wagon supply/demand balance. In our opinion, the shortage of rolling stock is much more a dangerous factor than the proposed market structure. 
If loading continues growing rapidly, and wagon purchases are hampered, there will not be enough wagons, which will lead to a considerable growth in the costs of operator services. And this will happen with any scenario, regardless of whether the public park stays or disappears. We understand that VGK will be much more active than RZD, buying wagons, using effective investment tools and thus contributing to solving the problem of a possible shortage of rolling stock. 

Dmitry Korolev, 
Executive Director of the Council of Railway Rolling Stock Operators Market: 
– Railway reform has been generally successful. Private investments are being actively attracted in railway rolling stock. RZD has been moderating all processes in transport so far, but after the public park disappears, the company will practically leave this sector. After VGK is created, operators will have to take responsibility for successful cargo shipments in railway wagons. Thus, the operator community has to take a proactive role to get the state authorities to draft and adopt legal documentation, technical regulations and rules relating to the legal status and exploitation of railway rolling stock on the networks of RZD, CIS and Baltic countries. 
The operator community will receive a new social responsibility after the public park is transferred completely to RZD’s operator companies. Operators will become a necessary party in the business of carrying goods by rail. Self-regulating organisations are to become the main platform for debates and drafting documents. This will gradually come to such a market model which will reject unreliable parties, and the availability of strong players adhering to the principles of fair competition will be among its main features.
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            [SECTION_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2010/3/6.jpg" border="1" alt=" " hspace="5" width="200" height="264" align="left" />The Ministry of Transport of Russia has proposed to extend the ongoing structural railway reform to the end of 2011, meaning for another year. The plan of appropriate activities is now before the government for approval. What was not implemented in the time allotted to the reform? Will the general trends of the Russian transport market be followed as before?
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            [ELEMENT_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2010/3/6.jpg" border="1" alt=" " hspace="5" width="200" height="264" align="left" />The Ministry of Transport of Russia has proposed to extend the ongoing structural railway reform to the end of 2011, meaning for another year. The plan of appropriate activities is now before the government for approval. What was not implemented in the time allotted to the reform? Will the general trends of the Russian transport market be followed as before?
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    [DETAIL_TEXT] => 
Better Safety for Russian Transport
The Russian Transport Ministry developed a programme to provide transport safety to 2014. Its total sum is RUR 46.7 billion, said Igor Levitin, Russian Transport Minister, at the meeting of the presidium of the RF Government in early August. 
In his words, RUR 7.8 billion is to be spent in the framework of the programme in 2010. He noted that the Ministry’s commission in charge had already chosen seven bus stations and 11 railway stations, where pilot zones with increased safety would be organised. 
The Minister also added that similar zones would be launched in eight Russian cities where there is a subway.

$250 million for Ulan-Batorskaya Railway
Russia may put $250 million into the authorised capital of the Ulan-Batorskaya Railway, owned by Russia and Mongolia on parity shares.
“Nowadays, the Government is discussing the issue of giving $250 million into the authorised capital of the Ulan-Batorskaya Railway,” said Igor Levitin, Russian Transport Minister, at IV Pacific Economic Congress held in Vladivostok in early July. 
The Minister emphasised that Russia considers this transport corridor important for freight transit transportation between Russia and China.
Another international project in the Far Eastern region is the construction of the Hasan (Russia) –Rason (The Democratic People’s Republic of Korea) line. Nowadays, the railway line is being built and its capacity will be 15 pairs of trains daily.

Russian Railways invests over RUR 111 billion in six months
In the first half of 2010, Russian Railways spent RUR 111.2 billion on its investment programme. The company spent more than RUR 13 billion on new locomotives and took delivery of 185 freight and passenger locomotives, including 122 electric and 63 diesel locomotives. RZD also purchased 343 motorised wagons for more than RUR 5 billion.
In addition, various other investment projects are being driven forward, in particular the complete reconstruction of the sections between Mga - Gatchina - Veimarn - Ivangorod and the rail approaches to ports on the southern coast of the Gulf of Finland Maxim Gorky - Kotelnikov - Tikhoretskaya - Krimskaya with a bypass of the Krasnodar Hub Karymskaya - Zabaikalsk. 
RZD is also rapidly carrying out the construction of Olympic facilities for the Winter Games in Sochi and, in the first half of 2010, began major work on the integrated rail-road link between Adler - Alpika mountain resort - Servis, which is the main Olympic transport route.
Russian Railways is building six tunnels in the mountains and has completed construction of the first 6km section of the road. Bridges have been built across the rivers Mzymta, Kudepsta and Khost to allow a second track to be laid along the coastal section between Sochi - Adler - Veseloe.
As part of the Olympic project “Improving the Infrastructure of the Tuapse - Adler Railway Line” services have begun on the second track on the section between Dagomys - Sochi.
Construction of the passenger rail terminal at Sochi airport has also been completed, which is just one part of the project “Railway Line from Adler to Sochi Airport.”
More than RUR 50 billion was invested in the first six months of 2010, including two railway bridges across the Obvodnyi (Bypass) Canal in the Moscow direction of October Railways, the Malyi (Small) Novorossiysk Tunnel on North Caucasus Railways and the TR-3 workshop at the Kinel-Gruzovoi locomotive depot on Kuibyshev Railways.
Garages have also been built for motor locomotives and car transportation for the signalling division at Novaya Chara station and the luggage department at Vikhorevka station on East-Siberian Railways.

One-Window Principle for the Federal Customs Service 	
The Russian Government discussed the bill “On the Russian Federation’s Joining The International Convention on the Simplification and Harmonisation of Customs Procedures from May 18, 1973 Redrafted by the Protocol on Amendments to The International Convention on the Simplification and Harmonisation of Customs Procedures from June 26, 1999”, which was developed by the Ministry of Foreign Affairs and the Federal Customs Service.
The obligations of the Russian Federation are limited by the General Application to the Convention. 
The International Convention on the Simplification and Harmonisation of Customs Procedures makes the parties use simplified customs procedures, relevant international standards, as well as a procedure to appeal decisions, etc.
The authors of the document paid special attention to the maximum use of IT technologies. After Russia joins The International Convention on the Simplification and Harmonisation of Customs Procedures, its Customs Service will start to work according to the “one-window” principle. 

RZD signs cooperation deals with Siemens	
At Russian-German intergovernmental consultations in Yekaterinburg on July 15, 2010, in the presence of Russian President Dmitry Medvedev and German Chancellor Angela Merkel, Russian Railways President Vladimir Yakunin signed a range of documents with Siemens CEO Peter Loescher aimed at expanding cooperation in the modernisation of rolling stock.
The signing of a memorandum on creating a joint venture to produce, supply and service modern Russian electric trains represents an important step in implementing the countries’ joint project to localise production of electric trains using the Siemens technology platform.
The document stipulates the development, by the start of autumn 2010, of specific action plans to create a joint venture involving Siemens and Aeroexpress, and also to localise production of Desiro Rus electric trains. The partners in the joint venture will take a decision on where in Russia to locate the production base by the end of summer 2010.
Russian Railways will order from this joint venture 1,200 Desiro Rus-series electric train carriages. A supply contract will be signed in spring 2011. Desiro Rus electric trains are planned to be used for suburban passenger transport in Russia’s major cities.
The second document is a memorandum of understanding on the joint implementation of projects to modernise railway yards. The partners intend to create a joint venture which will work on modernising sorting humps at stations on the Russian rail network. In total, at least 22 stations (with 34 sorting humps) are to be modernised by 2026. Also, from the fifth year of the joint venture’s operations, the parties plan to gradually increase the degree of localisation of production to 80%.
Commenting on the signed documents, Russian Railways President Vladimir Yakunin said: “Russian Railways pays particular attention to developing cooperation with our German partners in rail transport. The joint projects we have carried out are of a strategic nature in both their depth and scale. Our interaction is multi-faceted, encompassing freight and passenger transport, international logistics, the joint creation of innovative, cutting-edge technologies in machine-building, staff training, and other areas. 
We are satisfied with the effective and diverse cooperation between Russian Railways and our German partners, and are ready to step up coordinated activities to boost our presence on the market of transport and logistics services and machine-building production in Europe and Asia.”

Cargo Railway Tariffs in Russia May Increase by 8% in 2011
Railway tariffs on cargo transportation may grow by 8% in 2011, said Vladimir Yakunin, President of RZD, after a meeting with Vladimir Putin, Russian Prime Minister, at the beginning of June.
“The tariff increase is likely to amount to 8%,” he said.
In the words of Mr Yakunin, the Prime Minister mentioned that RZD may get direct subsidies from the budget and indirect support in the form of compensation for lost revenue from suburban transportation in 2011. 
Speaking about the compensation from the budget for lost revenue (this year it is RUR 50 billion), Mr Yakunin emphasised that next year RZD’s losses may amount to RUR 40 billion if the compensation is not awarded.
The final decision on the increase of tariffs on freight transportation in 2011 will be taken at a special meeting of the RF Government.
Earlier, on May 19, 2010, Mr Yakunin sent a letter to Mr Putin, in which he offered to increase the tariffs on freight transportation by railway by 12.1% in 2011 and to keep the subsides at the same level – RUR 50 billion. Without donations, he recommended increasing the tariffs by 17.8%.

RZD and Gazprom to reconstruct two spurs of Salekhard-Nadym railway line
RZD will reconstruct the Labytnangi – Chum – Konosha railway section, and Gazprom – Nadym – Pangody section, which will allow the transportation of liquefied hydrocarbons westward from 2015. This was announced by Ural Industrial – Ural Polar Corporation which is carrying out the Salekhard-Nadym railway construction. The two spurs reconstructed by RZD and Gazprom will join the new railway.
The Corporation emphasised in its report that “as a result of the joint work of Corporation Ural Industrial - Ural Polar, RZD and Gazprom, the reserves were found for the reconstruction of the Labytnangi - Chum - Konosha (RZD) and Nadym-Pangody (Gazprom) sections on the Salekhard - Nadym railroad.” 
During their meeting at the Transport Ministry, the participants of the workgroup announced the completion of all the necessary preparatory work and the approval of the prepared conclusions regarding the estimates of road load.
The designed railway line Salekhard - Nadym is a part of the prospective railway line Chum-Salekhard-Igarka-Norilsk, lying on the territories of the Priuralskiy and Nadymskiy districts of Yamal-Nenets Autonomous region. Geographically, the route is located in the northern part of the West Siberian lowland at the meeting of the Ob and Nadym rivers. 
The Salekhard-Nadym line will have a one-way gauge, its total maintained length will be 354.6 km. It will feature 47 bridges, three stations, and 28 crossing loops. The time of construction is 2011-2014.
    [~DETAIL_TEXT] => 
Better Safety for Russian Transport
The Russian Transport Ministry developed a programme to provide transport safety to 2014. Its total sum is RUR 46.7 billion, said Igor Levitin, Russian Transport Minister, at the meeting of the presidium of the RF Government in early August. 
In his words, RUR 7.8 billion is to be spent in the framework of the programme in 2010. He noted that the Ministry’s commission in charge had already chosen seven bus stations and 11 railway stations, where pilot zones with increased safety would be organised. 
The Minister also added that similar zones would be launched in eight Russian cities where there is a subway.

$250 million for Ulan-Batorskaya Railway
Russia may put $250 million into the authorised capital of the Ulan-Batorskaya Railway, owned by Russia and Mongolia on parity shares.
“Nowadays, the Government is discussing the issue of giving $250 million into the authorised capital of the Ulan-Batorskaya Railway,” said Igor Levitin, Russian Transport Minister, at IV Pacific Economic Congress held in Vladivostok in early July. 
The Minister emphasised that Russia considers this transport corridor important for freight transit transportation between Russia and China.
Another international project in the Far Eastern region is the construction of the Hasan (Russia) –Rason (The Democratic People’s Republic of Korea) line. Nowadays, the railway line is being built and its capacity will be 15 pairs of trains daily.

Russian Railways invests over RUR 111 billion in six months
In the first half of 2010, Russian Railways spent RUR 111.2 billion on its investment programme. The company spent more than RUR 13 billion on new locomotives and took delivery of 185 freight and passenger locomotives, including 122 electric and 63 diesel locomotives. RZD also purchased 343 motorised wagons for more than RUR 5 billion.
In addition, various other investment projects are being driven forward, in particular the complete reconstruction of the sections between Mga - Gatchina - Veimarn - Ivangorod and the rail approaches to ports on the southern coast of the Gulf of Finland Maxim Gorky - Kotelnikov - Tikhoretskaya - Krimskaya with a bypass of the Krasnodar Hub Karymskaya - Zabaikalsk. 
RZD is also rapidly carrying out the construction of Olympic facilities for the Winter Games in Sochi and, in the first half of 2010, began major work on the integrated rail-road link between Adler - Alpika mountain resort - Servis, which is the main Olympic transport route.
Russian Railways is building six tunnels in the mountains and has completed construction of the first 6km section of the road. Bridges have been built across the rivers Mzymta, Kudepsta and Khost to allow a second track to be laid along the coastal section between Sochi - Adler - Veseloe.
As part of the Olympic project “Improving the Infrastructure of the Tuapse - Adler Railway Line” services have begun on the second track on the section between Dagomys - Sochi.
Construction of the passenger rail terminal at Sochi airport has also been completed, which is just one part of the project “Railway Line from Adler to Sochi Airport.”
More than RUR 50 billion was invested in the first six months of 2010, including two railway bridges across the Obvodnyi (Bypass) Canal in the Moscow direction of October Railways, the Malyi (Small) Novorossiysk Tunnel on North Caucasus Railways and the TR-3 workshop at the Kinel-Gruzovoi locomotive depot on Kuibyshev Railways.
Garages have also been built for motor locomotives and car transportation for the signalling division at Novaya Chara station and the luggage department at Vikhorevka station on East-Siberian Railways.

One-Window Principle for the Federal Customs Service 	
The Russian Government discussed the bill “On the Russian Federation’s Joining The International Convention on the Simplification and Harmonisation of Customs Procedures from May 18, 1973 Redrafted by the Protocol on Amendments to The International Convention on the Simplification and Harmonisation of Customs Procedures from June 26, 1999”, which was developed by the Ministry of Foreign Affairs and the Federal Customs Service.
The obligations of the Russian Federation are limited by the General Application to the Convention. 
The International Convention on the Simplification and Harmonisation of Customs Procedures makes the parties use simplified customs procedures, relevant international standards, as well as a procedure to appeal decisions, etc.
The authors of the document paid special attention to the maximum use of IT technologies. After Russia joins The International Convention on the Simplification and Harmonisation of Customs Procedures, its Customs Service will start to work according to the “one-window” principle. 

RZD signs cooperation deals with Siemens	
At Russian-German intergovernmental consultations in Yekaterinburg on July 15, 2010, in the presence of Russian President Dmitry Medvedev and German Chancellor Angela Merkel, Russian Railways President Vladimir Yakunin signed a range of documents with Siemens CEO Peter Loescher aimed at expanding cooperation in the modernisation of rolling stock.
The signing of a memorandum on creating a joint venture to produce, supply and service modern Russian electric trains represents an important step in implementing the countries’ joint project to localise production of electric trains using the Siemens technology platform.
The document stipulates the development, by the start of autumn 2010, of specific action plans to create a joint venture involving Siemens and Aeroexpress, and also to localise production of Desiro Rus electric trains. The partners in the joint venture will take a decision on where in Russia to locate the production base by the end of summer 2010.
Russian Railways will order from this joint venture 1,200 Desiro Rus-series electric train carriages. A supply contract will be signed in spring 2011. Desiro Rus electric trains are planned to be used for suburban passenger transport in Russia’s major cities.
The second document is a memorandum of understanding on the joint implementation of projects to modernise railway yards. The partners intend to create a joint venture which will work on modernising sorting humps at stations on the Russian rail network. In total, at least 22 stations (with 34 sorting humps) are to be modernised by 2026. Also, from the fifth year of the joint venture’s operations, the parties plan to gradually increase the degree of localisation of production to 80%.
Commenting on the signed documents, Russian Railways President Vladimir Yakunin said: “Russian Railways pays particular attention to developing cooperation with our German partners in rail transport. The joint projects we have carried out are of a strategic nature in both their depth and scale. Our interaction is multi-faceted, encompassing freight and passenger transport, international logistics, the joint creation of innovative, cutting-edge technologies in machine-building, staff training, and other areas. 
We are satisfied with the effective and diverse cooperation between Russian Railways and our German partners, and are ready to step up coordinated activities to boost our presence on the market of transport and logistics services and machine-building production in Europe and Asia.”

Cargo Railway Tariffs in Russia May Increase by 8% in 2011
Railway tariffs on cargo transportation may grow by 8% in 2011, said Vladimir Yakunin, President of RZD, after a meeting with Vladimir Putin, Russian Prime Minister, at the beginning of June.
“The tariff increase is likely to amount to 8%,” he said.
In the words of Mr Yakunin, the Prime Minister mentioned that RZD may get direct subsidies from the budget and indirect support in the form of compensation for lost revenue from suburban transportation in 2011. 
Speaking about the compensation from the budget for lost revenue (this year it is RUR 50 billion), Mr Yakunin emphasised that next year RZD’s losses may amount to RUR 40 billion if the compensation is not awarded.
The final decision on the increase of tariffs on freight transportation in 2011 will be taken at a special meeting of the RF Government.
Earlier, on May 19, 2010, Mr Yakunin sent a letter to Mr Putin, in which he offered to increase the tariffs on freight transportation by railway by 12.1% in 2011 and to keep the subsides at the same level – RUR 50 billion. Without donations, he recommended increasing the tariffs by 17.8%.

RZD and Gazprom to reconstruct two spurs of Salekhard-Nadym railway line
RZD will reconstruct the Labytnangi – Chum – Konosha railway section, and Gazprom – Nadym – Pangody section, which will allow the transportation of liquefied hydrocarbons westward from 2015. This was announced by Ural Industrial – Ural Polar Corporation which is carrying out the Salekhard-Nadym railway construction. The two spurs reconstructed by RZD and Gazprom will join the new railway.
The Corporation emphasised in its report that “as a result of the joint work of Corporation Ural Industrial - Ural Polar, RZD and Gazprom, the reserves were found for the reconstruction of the Labytnangi - Chum - Konosha (RZD) and Nadym-Pangody (Gazprom) sections on the Salekhard - Nadym railroad.” 
During their meeting at the Transport Ministry, the participants of the workgroup announced the completion of all the necessary preparatory work and the approval of the prepared conclusions regarding the estimates of road load.
The designed railway line Salekhard - Nadym is a part of the prospective railway line Chum-Salekhard-Igarka-Norilsk, lying on the territories of the Priuralskiy and Nadymskiy districts of Yamal-Nenets Autonomous region. Geographically, the route is located in the northern part of the West Siberian lowland at the meeting of the Ob and Nadym rivers. 
The Salekhard-Nadym line will have a one-way gauge, its total maintained length will be 354.6 km. It will feature 47 bridges, three stations, and 28 crossing loops. The time of construction is 2011-2014.
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    [DETAIL_TEXT] => 
Better Safety for Russian Transport
The Russian Transport Ministry developed a programme to provide transport safety to 2014. Its total sum is RUR 46.7 billion, said Igor Levitin, Russian Transport Minister, at the meeting of the presidium of the RF Government in early August. 
In his words, RUR 7.8 billion is to be spent in the framework of the programme in 2010. He noted that the Ministry’s commission in charge had already chosen seven bus stations and 11 railway stations, where pilot zones with increased safety would be organised. 
The Minister also added that similar zones would be launched in eight Russian cities where there is a subway.

$250 million for Ulan-Batorskaya Railway
Russia may put $250 million into the authorised capital of the Ulan-Batorskaya Railway, owned by Russia and Mongolia on parity shares.
“Nowadays, the Government is discussing the issue of giving $250 million into the authorised capital of the Ulan-Batorskaya Railway,” said Igor Levitin, Russian Transport Minister, at IV Pacific Economic Congress held in Vladivostok in early July. 
The Minister emphasised that Russia considers this transport corridor important for freight transit transportation between Russia and China.
Another international project in the Far Eastern region is the construction of the Hasan (Russia) –Rason (The Democratic People’s Republic of Korea) line. Nowadays, the railway line is being built and its capacity will be 15 pairs of trains daily.

Russian Railways invests over RUR 111 billion in six months
In the first half of 2010, Russian Railways spent RUR 111.2 billion on its investment programme. The company spent more than RUR 13 billion on new locomotives and took delivery of 185 freight and passenger locomotives, including 122 electric and 63 diesel locomotives. RZD also purchased 343 motorised wagons for more than RUR 5 billion.
In addition, various other investment projects are being driven forward, in particular the complete reconstruction of the sections between Mga - Gatchina - Veimarn - Ivangorod and the rail approaches to ports on the southern coast of the Gulf of Finland Maxim Gorky - Kotelnikov - Tikhoretskaya - Krimskaya with a bypass of the Krasnodar Hub Karymskaya - Zabaikalsk. 
RZD is also rapidly carrying out the construction of Olympic facilities for the Winter Games in Sochi and, in the first half of 2010, began major work on the integrated rail-road link between Adler - Alpika mountain resort - Servis, which is the main Olympic transport route.
Russian Railways is building six tunnels in the mountains and has completed construction of the first 6km section of the road. Bridges have been built across the rivers Mzymta, Kudepsta and Khost to allow a second track to be laid along the coastal section between Sochi - Adler - Veseloe.
As part of the Olympic project “Improving the Infrastructure of the Tuapse - Adler Railway Line” services have begun on the second track on the section between Dagomys - Sochi.
Construction of the passenger rail terminal at Sochi airport has also been completed, which is just one part of the project “Railway Line from Adler to Sochi Airport.”
More than RUR 50 billion was invested in the first six months of 2010, including two railway bridges across the Obvodnyi (Bypass) Canal in the Moscow direction of October Railways, the Malyi (Small) Novorossiysk Tunnel on North Caucasus Railways and the TR-3 workshop at the Kinel-Gruzovoi locomotive depot on Kuibyshev Railways.
Garages have also been built for motor locomotives and car transportation for the signalling division at Novaya Chara station and the luggage department at Vikhorevka station on East-Siberian Railways.

One-Window Principle for the Federal Customs Service 	
The Russian Government discussed the bill “On the Russian Federation’s Joining The International Convention on the Simplification and Harmonisation of Customs Procedures from May 18, 1973 Redrafted by the Protocol on Amendments to The International Convention on the Simplification and Harmonisation of Customs Procedures from June 26, 1999”, which was developed by the Ministry of Foreign Affairs and the Federal Customs Service.
The obligations of the Russian Federation are limited by the General Application to the Convention. 
The International Convention on the Simplification and Harmonisation of Customs Procedures makes the parties use simplified customs procedures, relevant international standards, as well as a procedure to appeal decisions, etc.
The authors of the document paid special attention to the maximum use of IT technologies. After Russia joins The International Convention on the Simplification and Harmonisation of Customs Procedures, its Customs Service will start to work according to the “one-window” principle. 

RZD signs cooperation deals with Siemens	
At Russian-German intergovernmental consultations in Yekaterinburg on July 15, 2010, in the presence of Russian President Dmitry Medvedev and German Chancellor Angela Merkel, Russian Railways President Vladimir Yakunin signed a range of documents with Siemens CEO Peter Loescher aimed at expanding cooperation in the modernisation of rolling stock.
The signing of a memorandum on creating a joint venture to produce, supply and service modern Russian electric trains represents an important step in implementing the countries’ joint project to localise production of electric trains using the Siemens technology platform.
The document stipulates the development, by the start of autumn 2010, of specific action plans to create a joint venture involving Siemens and Aeroexpress, and also to localise production of Desiro Rus electric trains. The partners in the joint venture will take a decision on where in Russia to locate the production base by the end of summer 2010.
Russian Railways will order from this joint venture 1,200 Desiro Rus-series electric train carriages. A supply contract will be signed in spring 2011. Desiro Rus electric trains are planned to be used for suburban passenger transport in Russia’s major cities.
The second document is a memorandum of understanding on the joint implementation of projects to modernise railway yards. The partners intend to create a joint venture which will work on modernising sorting humps at stations on the Russian rail network. In total, at least 22 stations (with 34 sorting humps) are to be modernised by 2026. Also, from the fifth year of the joint venture’s operations, the parties plan to gradually increase the degree of localisation of production to 80%.
Commenting on the signed documents, Russian Railways President Vladimir Yakunin said: “Russian Railways pays particular attention to developing cooperation with our German partners in rail transport. The joint projects we have carried out are of a strategic nature in both their depth and scale. Our interaction is multi-faceted, encompassing freight and passenger transport, international logistics, the joint creation of innovative, cutting-edge technologies in machine-building, staff training, and other areas. 
We are satisfied with the effective and diverse cooperation between Russian Railways and our German partners, and are ready to step up coordinated activities to boost our presence on the market of transport and logistics services and machine-building production in Europe and Asia.”

Cargo Railway Tariffs in Russia May Increase by 8% in 2011
Railway tariffs on cargo transportation may grow by 8% in 2011, said Vladimir Yakunin, President of RZD, after a meeting with Vladimir Putin, Russian Prime Minister, at the beginning of June.
“The tariff increase is likely to amount to 8%,” he said.
In the words of Mr Yakunin, the Prime Minister mentioned that RZD may get direct subsidies from the budget and indirect support in the form of compensation for lost revenue from suburban transportation in 2011. 
Speaking about the compensation from the budget for lost revenue (this year it is RUR 50 billion), Mr Yakunin emphasised that next year RZD’s losses may amount to RUR 40 billion if the compensation is not awarded.
The final decision on the increase of tariffs on freight transportation in 2011 will be taken at a special meeting of the RF Government.
Earlier, on May 19, 2010, Mr Yakunin sent a letter to Mr Putin, in which he offered to increase the tariffs on freight transportation by railway by 12.1% in 2011 and to keep the subsides at the same level – RUR 50 billion. Without donations, he recommended increasing the tariffs by 17.8%.

RZD and Gazprom to reconstruct two spurs of Salekhard-Nadym railway line
RZD will reconstruct the Labytnangi – Chum – Konosha railway section, and Gazprom – Nadym – Pangody section, which will allow the transportation of liquefied hydrocarbons westward from 2015. This was announced by Ural Industrial – Ural Polar Corporation which is carrying out the Salekhard-Nadym railway construction. The two spurs reconstructed by RZD and Gazprom will join the new railway.
The Corporation emphasised in its report that “as a result of the joint work of Corporation Ural Industrial - Ural Polar, RZD and Gazprom, the reserves were found for the reconstruction of the Labytnangi - Chum - Konosha (RZD) and Nadym-Pangody (Gazprom) sections on the Salekhard - Nadym railroad.” 
During their meeting at the Transport Ministry, the participants of the workgroup announced the completion of all the necessary preparatory work and the approval of the prepared conclusions regarding the estimates of road load.
The designed railway line Salekhard - Nadym is a part of the prospective railway line Chum-Salekhard-Igarka-Norilsk, lying on the territories of the Priuralskiy and Nadymskiy districts of Yamal-Nenets Autonomous region. Geographically, the route is located in the northern part of the West Siberian lowland at the meeting of the Ob and Nadym rivers. 
The Salekhard-Nadym line will have a one-way gauge, its total maintained length will be 354.6 km. It will feature 47 bridges, three stations, and 28 crossing loops. The time of construction is 2011-2014.
    [~DETAIL_TEXT] => 
Better Safety for Russian Transport
The Russian Transport Ministry developed a programme to provide transport safety to 2014. Its total sum is RUR 46.7 billion, said Igor Levitin, Russian Transport Minister, at the meeting of the presidium of the RF Government in early August. 
In his words, RUR 7.8 billion is to be spent in the framework of the programme in 2010. He noted that the Ministry’s commission in charge had already chosen seven bus stations and 11 railway stations, where pilot zones with increased safety would be organised. 
The Minister also added that similar zones would be launched in eight Russian cities where there is a subway.

$250 million for Ulan-Batorskaya Railway
Russia may put $250 million into the authorised capital of the Ulan-Batorskaya Railway, owned by Russia and Mongolia on parity shares.
“Nowadays, the Government is discussing the issue of giving $250 million into the authorised capital of the Ulan-Batorskaya Railway,” said Igor Levitin, Russian Transport Minister, at IV Pacific Economic Congress held in Vladivostok in early July. 
The Minister emphasised that Russia considers this transport corridor important for freight transit transportation between Russia and China.
Another international project in the Far Eastern region is the construction of the Hasan (Russia) –Rason (The Democratic People’s Republic of Korea) line. Nowadays, the railway line is being built and its capacity will be 15 pairs of trains daily.

Russian Railways invests over RUR 111 billion in six months
In the first half of 2010, Russian Railways spent RUR 111.2 billion on its investment programme. The company spent more than RUR 13 billion on new locomotives and took delivery of 185 freight and passenger locomotives, including 122 electric and 63 diesel locomotives. RZD also purchased 343 motorised wagons for more than RUR 5 billion.
In addition, various other investment projects are being driven forward, in particular the complete reconstruction of the sections between Mga - Gatchina - Veimarn - Ivangorod and the rail approaches to ports on the southern coast of the Gulf of Finland Maxim Gorky - Kotelnikov - Tikhoretskaya - Krimskaya with a bypass of the Krasnodar Hub Karymskaya - Zabaikalsk. 
RZD is also rapidly carrying out the construction of Olympic facilities for the Winter Games in Sochi and, in the first half of 2010, began major work on the integrated rail-road link between Adler - Alpika mountain resort - Servis, which is the main Olympic transport route.
Russian Railways is building six tunnels in the mountains and has completed construction of the first 6km section of the road. Bridges have been built across the rivers Mzymta, Kudepsta and Khost to allow a second track to be laid along the coastal section between Sochi - Adler - Veseloe.
As part of the Olympic project “Improving the Infrastructure of the Tuapse - Adler Railway Line” services have begun on the second track on the section between Dagomys - Sochi.
Construction of the passenger rail terminal at Sochi airport has also been completed, which is just one part of the project “Railway Line from Adler to Sochi Airport.”
More than RUR 50 billion was invested in the first six months of 2010, including two railway bridges across the Obvodnyi (Bypass) Canal in the Moscow direction of October Railways, the Malyi (Small) Novorossiysk Tunnel on North Caucasus Railways and the TR-3 workshop at the Kinel-Gruzovoi locomotive depot on Kuibyshev Railways.
Garages have also been built for motor locomotives and car transportation for the signalling division at Novaya Chara station and the luggage department at Vikhorevka station on East-Siberian Railways.

One-Window Principle for the Federal Customs Service 	
The Russian Government discussed the bill “On the Russian Federation’s Joining The International Convention on the Simplification and Harmonisation of Customs Procedures from May 18, 1973 Redrafted by the Protocol on Amendments to The International Convention on the Simplification and Harmonisation of Customs Procedures from June 26, 1999”, which was developed by the Ministry of Foreign Affairs and the Federal Customs Service.
The obligations of the Russian Federation are limited by the General Application to the Convention. 
The International Convention on the Simplification and Harmonisation of Customs Procedures makes the parties use simplified customs procedures, relevant international standards, as well as a procedure to appeal decisions, etc.
The authors of the document paid special attention to the maximum use of IT technologies. After Russia joins The International Convention on the Simplification and Harmonisation of Customs Procedures, its Customs Service will start to work according to the “one-window” principle. 

RZD signs cooperation deals with Siemens	
At Russian-German intergovernmental consultations in Yekaterinburg on July 15, 2010, in the presence of Russian President Dmitry Medvedev and German Chancellor Angela Merkel, Russian Railways President Vladimir Yakunin signed a range of documents with Siemens CEO Peter Loescher aimed at expanding cooperation in the modernisation of rolling stock.
The signing of a memorandum on creating a joint venture to produce, supply and service modern Russian electric trains represents an important step in implementing the countries’ joint project to localise production of electric trains using the Siemens technology platform.
The document stipulates the development, by the start of autumn 2010, of specific action plans to create a joint venture involving Siemens and Aeroexpress, and also to localise production of Desiro Rus electric trains. The partners in the joint venture will take a decision on where in Russia to locate the production base by the end of summer 2010.
Russian Railways will order from this joint venture 1,200 Desiro Rus-series electric train carriages. A supply contract will be signed in spring 2011. Desiro Rus electric trains are planned to be used for suburban passenger transport in Russia’s major cities.
The second document is a memorandum of understanding on the joint implementation of projects to modernise railway yards. The partners intend to create a joint venture which will work on modernising sorting humps at stations on the Russian rail network. In total, at least 22 stations (with 34 sorting humps) are to be modernised by 2026. Also, from the fifth year of the joint venture’s operations, the parties plan to gradually increase the degree of localisation of production to 80%.
Commenting on the signed documents, Russian Railways President Vladimir Yakunin said: “Russian Railways pays particular attention to developing cooperation with our German partners in rail transport. The joint projects we have carried out are of a strategic nature in both their depth and scale. Our interaction is multi-faceted, encompassing freight and passenger transport, international logistics, the joint creation of innovative, cutting-edge technologies in machine-building, staff training, and other areas. 
We are satisfied with the effective and diverse cooperation between Russian Railways and our German partners, and are ready to step up coordinated activities to boost our presence on the market of transport and logistics services and machine-building production in Europe and Asia.”

Cargo Railway Tariffs in Russia May Increase by 8% in 2011
Railway tariffs on cargo transportation may grow by 8% in 2011, said Vladimir Yakunin, President of RZD, after a meeting with Vladimir Putin, Russian Prime Minister, at the beginning of June.
“The tariff increase is likely to amount to 8%,” he said.
In the words of Mr Yakunin, the Prime Minister mentioned that RZD may get direct subsidies from the budget and indirect support in the form of compensation for lost revenue from suburban transportation in 2011. 
Speaking about the compensation from the budget for lost revenue (this year it is RUR 50 billion), Mr Yakunin emphasised that next year RZD’s losses may amount to RUR 40 billion if the compensation is not awarded.
The final decision on the increase of tariffs on freight transportation in 2011 will be taken at a special meeting of the RF Government.
Earlier, on May 19, 2010, Mr Yakunin sent a letter to Mr Putin, in which he offered to increase the tariffs on freight transportation by railway by 12.1% in 2011 and to keep the subsides at the same level – RUR 50 billion. Without donations, he recommended increasing the tariffs by 17.8%.

RZD and Gazprom to reconstruct two spurs of Salekhard-Nadym railway line
RZD will reconstruct the Labytnangi – Chum – Konosha railway section, and Gazprom – Nadym – Pangody section, which will allow the transportation of liquefied hydrocarbons westward from 2015. This was announced by Ural Industrial – Ural Polar Corporation which is carrying out the Salekhard-Nadym railway construction. The two spurs reconstructed by RZD and Gazprom will join the new railway.
The Corporation emphasised in its report that “as a result of the joint work of Corporation Ural Industrial - Ural Polar, RZD and Gazprom, the reserves were found for the reconstruction of the Labytnangi - Chum - Konosha (RZD) and Nadym-Pangody (Gazprom) sections on the Salekhard - Nadym railroad.” 
During their meeting at the Transport Ministry, the participants of the workgroup announced the completion of all the necessary preparatory work and the approval of the prepared conclusions regarding the estimates of road load.
The designed railway line Salekhard - Nadym is a part of the prospective railway line Chum-Salekhard-Igarka-Norilsk, lying on the territories of the Priuralskiy and Nadymskiy districts of Yamal-Nenets Autonomous region. Geographically, the route is located in the northern part of the West Siberian lowland at the meeting of the Ob and Nadym rivers. 
The Salekhard-Nadym line will have a one-way gauge, its total maintained length will be 354.6 km. It will feature 47 bridges, three stations, and 28 crossing loops. The time of construction is 2011-2014.
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    [DETAIL_TEXT] => In 2011 “Uralvagonzavod” will celebrate its 75th birthday. For all these years it has had a strong lead in developing and manufacturing up-to-date railway vehicles for the railways of Russia and CIS countries. In the last years more than a million of freight railway cars of various modifications has come off the factory assembly line.
 “Uralvagonzavod” is the enterprise traditionally oriented to the mass production of freight railway cars, and first of all, multipurpose gondola cars. However, competitive expansion in production of freight railway vehicles steadily observed in the recent years has turned the Ural railway car builders to designing and developing the small-scale production of wide range of freight railway cars. The Ural railway car builders vigorously work to expand the family of freight cars for 1520-mm railways, improve design of the existing models, and develop next-generation railway vehicles with enhanced axle loads. Thanks to all this the factory succeeds in retaining 25% of the railway car building market of Russia and CIS countries. 
Crisis which overwhelmed the world economy certainly influenced the state of affairs at “Uralvagonzavod”. 2009 became the hardest time for the Corporation. Nevertheless efficient measures undertaken by the Corporation top management helped to reverse the situation. From the beginning of 2010 the production output at “Uralvagonzavod” has been characterized by stable growth. Almost eight and a half thousand gondola cars and tank cars have been produced and dispatched in six months which is two and a half times more compared to the corresponding period of the previous year. 
Nowadays “Uralvagonzavod” offers 19 types of new-generation railway cars to the railwaymen. All of them meet the latest operational and technical requirements. Improved technical and economic performance and enhanced reliability are inherent to the design of the railway cars developed by the specialists of the Ural Design Office of Railway Car Building. The Design Office is the part of the Corporation. It is the head railway car building office in designing running gear elements and automatic couplers. All car-building plants and many car-repair plants in Russia and CIS countries use the Ural design engineers’ projects in their work. 
When designing a new-generation car with improved technical and economic performance and enhanced serviceability the design engineers use a comprehensive approach involving the development of challenging designs of standard car units (bogie, automatic coupler, braking system) and application of high-strength materials. 
Rated capacity of “Uralvagonzavod” enables the production of more than 20.000 railway stock units a year. The car assembly factory along with the metallurgical factory, tool making factory, mechanical assembly factory, mechanical repair factory and others is a part of the Corporation and comprises three barrel making lines and five assembly conveyors for gondola car and tank car production. 
Elaborated production technology provides for monitoring the product release process at all stages. This huge plant, listed in the Guinness Book of World Records due to the extent of its production area, have an advantage of wheelset and bogie production at special-purpose sections of workshops. Centre sills, bogie frames and side frames are assembled at flow lines with automatic welding. And the quality of metal and its machining as well as the assembly reliability are inspected at each stage.
Furthermore the Corporation has its own testing facility which is accredited by the Certification Register on Federal Railroad Transport and the Russian Shipping Register. This facility is used for almost all kinds of testing on both serial products and novel assemblies and parts. It includes test-bench equipment and a car and production research centre for prototype assemblies and dummies which allows the carrying out of dynamic testing in the field and impact testing.
The Corporation strategic partners are “Russian Railways”, “First Freight Company” and “Vostokneftetrans”. This enterprise, established by “Uralvagonzavod” in association with OJSC “AK “Transneft”, ensures the transportation of oil products in UVZ tank cars under the project “Eastern Siberia – Pacific Ocean”. 
The most popular development of the Ural railway car builders in the Russian market is the gondola car 12-132 with bogie 18-100 (axle load 23.5 tf) and increased body. It features simple design and reliable performance. This type of gondola car serves as the basis for different modified models among which is the gondola car 12-132-03.
The latter is specifically designed for JSC “Russian Railways” with regard to safety and reliability requirements. Its competitive advantage consists of an increased service life of 24 years. It is the first model used with bogie 18-578 and is characterised by an improved dynamic performance and specified 500 km run before the first depot repair, which is two-and-a-half times longer than series-produced gondola cars. The bogie divided brake system increases brake reliability and ensures safe running.
The most advanced late development of the Ural railway car builders is the gondola car 12-196-01. This model is developed with the use of modern design methods including simulation technique which contributed to considerable improvement of gondola car performance. The car body has a reinforced structure and features an enhanced volume of 88 m3, providing a load-carrying capacity of 75 tons. 
Unloading bulk cargo can be performed via both car dumpers and through 14 dumping holes. The designers paid special attention to increasing the fatigue strength of the main bearing body members – they are all made of high-strength steel grades. Commercial gondola car 12-196-01 is the first gondola car in Russia fitted to bogie 18-194-1. A range of introduced design innovations allowed an increase in the axle load to 25 tf. 
For the moment the new generation gondola car has passed comprehensive testing, been accepted by the inspection board and certified for conforming with the Certification Register on Federal Railroad Transport. The first batch of such gondola cars has been successfully operated by JSC “Russian Railways” since 2008.
In addition to different gondola car modifications the Corporation offers a wide range of tank cars. Tank cars are in high demand among freight forwarders. The oil, chemical and gas industries are also in need of a modern reliable means of transportation for hazardous cargos. 
Serial production of oil tank cars by “Uralvagonzavod” was launched at the beginning of 1990s. In a relatively short time, the first and only tank car building facility was created in Russia. It was made possible thanks to the large scientific, technical and human resources of the Corporation. “Uralvagonzavod” was one of the first in the industry to implement computer-aided simulation and design to link a chain of designers, process engineers and producers through a single product computer model. 
The Corporation remains the leading tank car builder. Its tank cars are used for transporting light and dark viscous oil, gasoline and gasoline fractions, commercial sulphuric acid, oleum, commercial caustic soda, methanol and other products.
These models are created with the aid of a modular approach which consists of using the unified platform of tank cars 13-149 as a base and detailed barrel adaptation for a certain group of transported goods. This approach substantially reduced the time and cost of designing. 
In addition, the Corporation specialists have developed a whole range of tank containers for transportation of various raw products and provision. One of the most promising models is tank container КЦ 25/1,8 for the transportation of propane-butane and propane-butane fractions. The tank container is designed to transport the maximum quantity of liquid product with minimum gross weight.
“Uralvagonzavod” manufactures hopper cars for transporting bulk cargoes requiring weather protection. The hopper cars enable transportation of bulk pelletised large-grained crystal mineral fertilisers and bulk powdered raw materials for their production. 
One more favorable production set-up at “Uralvagonzavod” is the building of a family of flat cars. The flat cars are produced in batches for transportation of timber with a stowage factor 100 m3 and for transportation of one 40-foot container or two 20-foot containers as well as individually to the customer’s specific requirements. 
For example, “Uralvagonzavod” has produced several lots of flat cars for transportation of slabs with a load-carrying capacity of 70, 90, and 110 tons according to the individual order of one enterprise. 
Spending great sums on enterprise reconstruction, new engineering developments and the application of advanced and more costly materials, the Ural railway car builders are confident that the competitive properties of their products will continue to attract consumers doing stable and reliable business on the trunk railways of Russia and CIS countries and, in future, of Eastern and Western Europe.
    [~DETAIL_TEXT] => In 2011 “Uralvagonzavod” will celebrate its 75th birthday. For all these years it has had a strong lead in developing and manufacturing up-to-date railway vehicles for the railways of Russia and CIS countries. In the last years more than a million of freight railway cars of various modifications has come off the factory assembly line.
 “Uralvagonzavod” is the enterprise traditionally oriented to the mass production of freight railway cars, and first of all, multipurpose gondola cars. However, competitive expansion in production of freight railway vehicles steadily observed in the recent years has turned the Ural railway car builders to designing and developing the small-scale production of wide range of freight railway cars. The Ural railway car builders vigorously work to expand the family of freight cars for 1520-mm railways, improve design of the existing models, and develop next-generation railway vehicles with enhanced axle loads. Thanks to all this the factory succeeds in retaining 25% of the railway car building market of Russia and CIS countries. 
Crisis which overwhelmed the world economy certainly influenced the state of affairs at “Uralvagonzavod”. 2009 became the hardest time for the Corporation. Nevertheless efficient measures undertaken by the Corporation top management helped to reverse the situation. From the beginning of 2010 the production output at “Uralvagonzavod” has been characterized by stable growth. Almost eight and a half thousand gondola cars and tank cars have been produced and dispatched in six months which is two and a half times more compared to the corresponding period of the previous year. 
Nowadays “Uralvagonzavod” offers 19 types of new-generation railway cars to the railwaymen. All of them meet the latest operational and technical requirements. Improved technical and economic performance and enhanced reliability are inherent to the design of the railway cars developed by the specialists of the Ural Design Office of Railway Car Building. The Design Office is the part of the Corporation. It is the head railway car building office in designing running gear elements and automatic couplers. All car-building plants and many car-repair plants in Russia and CIS countries use the Ural design engineers’ projects in their work. 
When designing a new-generation car with improved technical and economic performance and enhanced serviceability the design engineers use a comprehensive approach involving the development of challenging designs of standard car units (bogie, automatic coupler, braking system) and application of high-strength materials. 
Rated capacity of “Uralvagonzavod” enables the production of more than 20.000 railway stock units a year. The car assembly factory along with the metallurgical factory, tool making factory, mechanical assembly factory, mechanical repair factory and others is a part of the Corporation and comprises three barrel making lines and five assembly conveyors for gondola car and tank car production. 
Elaborated production technology provides for monitoring the product release process at all stages. This huge plant, listed in the Guinness Book of World Records due to the extent of its production area, have an advantage of wheelset and bogie production at special-purpose sections of workshops. Centre sills, bogie frames and side frames are assembled at flow lines with automatic welding. And the quality of metal and its machining as well as the assembly reliability are inspected at each stage.
Furthermore the Corporation has its own testing facility which is accredited by the Certification Register on Federal Railroad Transport and the Russian Shipping Register. This facility is used for almost all kinds of testing on both serial products and novel assemblies and parts. It includes test-bench equipment and a car and production research centre for prototype assemblies and dummies which allows the carrying out of dynamic testing in the field and impact testing.
The Corporation strategic partners are “Russian Railways”, “First Freight Company” and “Vostokneftetrans”. This enterprise, established by “Uralvagonzavod” in association with OJSC “AK “Transneft”, ensures the transportation of oil products in UVZ tank cars under the project “Eastern Siberia – Pacific Ocean”. 
The most popular development of the Ural railway car builders in the Russian market is the gondola car 12-132 with bogie 18-100 (axle load 23.5 tf) and increased body. It features simple design and reliable performance. This type of gondola car serves as the basis for different modified models among which is the gondola car 12-132-03.
The latter is specifically designed for JSC “Russian Railways” with regard to safety and reliability requirements. Its competitive advantage consists of an increased service life of 24 years. It is the first model used with bogie 18-578 and is characterised by an improved dynamic performance and specified 500 km run before the first depot repair, which is two-and-a-half times longer than series-produced gondola cars. The bogie divided brake system increases brake reliability and ensures safe running.
The most advanced late development of the Ural railway car builders is the gondola car 12-196-01. This model is developed with the use of modern design methods including simulation technique which contributed to considerable improvement of gondola car performance. The car body has a reinforced structure and features an enhanced volume of 88 m3, providing a load-carrying capacity of 75 tons. 
Unloading bulk cargo can be performed via both car dumpers and through 14 dumping holes. The designers paid special attention to increasing the fatigue strength of the main bearing body members – they are all made of high-strength steel grades. Commercial gondola car 12-196-01 is the first gondola car in Russia fitted to bogie 18-194-1. A range of introduced design innovations allowed an increase in the axle load to 25 tf. 
For the moment the new generation gondola car has passed comprehensive testing, been accepted by the inspection board and certified for conforming with the Certification Register on Federal Railroad Transport. The first batch of such gondola cars has been successfully operated by JSC “Russian Railways” since 2008.
In addition to different gondola car modifications the Corporation offers a wide range of tank cars. Tank cars are in high demand among freight forwarders. The oil, chemical and gas industries are also in need of a modern reliable means of transportation for hazardous cargos. 
Serial production of oil tank cars by “Uralvagonzavod” was launched at the beginning of 1990s. In a relatively short time, the first and only tank car building facility was created in Russia. It was made possible thanks to the large scientific, technical and human resources of the Corporation. “Uralvagonzavod” was one of the first in the industry to implement computer-aided simulation and design to link a chain of designers, process engineers and producers through a single product computer model. 
The Corporation remains the leading tank car builder. Its tank cars are used for transporting light and dark viscous oil, gasoline and gasoline fractions, commercial sulphuric acid, oleum, commercial caustic soda, methanol and other products.
These models are created with the aid of a modular approach which consists of using the unified platform of tank cars 13-149 as a base and detailed barrel adaptation for a certain group of transported goods. This approach substantially reduced the time and cost of designing. 
In addition, the Corporation specialists have developed a whole range of tank containers for transportation of various raw products and provision. One of the most promising models is tank container КЦ 25/1,8 for the transportation of propane-butane and propane-butane fractions. The tank container is designed to transport the maximum quantity of liquid product with minimum gross weight.
“Uralvagonzavod” manufactures hopper cars for transporting bulk cargoes requiring weather protection. The hopper cars enable transportation of bulk pelletised large-grained crystal mineral fertilisers and bulk powdered raw materials for their production. 
One more favorable production set-up at “Uralvagonzavod” is the building of a family of flat cars. The flat cars are produced in batches for transportation of timber with a stowage factor 100 m3 and for transportation of one 40-foot container or two 20-foot containers as well as individually to the customer’s specific requirements. 
For example, “Uralvagonzavod” has produced several lots of flat cars for transportation of slabs with a load-carrying capacity of 70, 90, and 110 tons according to the individual order of one enterprise. 
Spending great sums on enterprise reconstruction, new engineering developments and the application of advanced and more costly materials, the Ural railway car builders are confident that the competitive properties of their products will continue to attract consumers doing stable and reliable business on the trunk railways of Russia and CIS countries and, in future, of Eastern and Western Europe.
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    [DETAIL_TEXT] => In 2011 “Uralvagonzavod” will celebrate its 75th birthday. For all these years it has had a strong lead in developing and manufacturing up-to-date railway vehicles for the railways of Russia and CIS countries. In the last years more than a million of freight railway cars of various modifications has come off the factory assembly line.
 “Uralvagonzavod” is the enterprise traditionally oriented to the mass production of freight railway cars, and first of all, multipurpose gondola cars. However, competitive expansion in production of freight railway vehicles steadily observed in the recent years has turned the Ural railway car builders to designing and developing the small-scale production of wide range of freight railway cars. The Ural railway car builders vigorously work to expand the family of freight cars for 1520-mm railways, improve design of the existing models, and develop next-generation railway vehicles with enhanced axle loads. Thanks to all this the factory succeeds in retaining 25% of the railway car building market of Russia and CIS countries. 
Crisis which overwhelmed the world economy certainly influenced the state of affairs at “Uralvagonzavod”. 2009 became the hardest time for the Corporation. Nevertheless efficient measures undertaken by the Corporation top management helped to reverse the situation. From the beginning of 2010 the production output at “Uralvagonzavod” has been characterized by stable growth. Almost eight and a half thousand gondola cars and tank cars have been produced and dispatched in six months which is two and a half times more compared to the corresponding period of the previous year. 
Nowadays “Uralvagonzavod” offers 19 types of new-generation railway cars to the railwaymen. All of them meet the latest operational and technical requirements. Improved technical and economic performance and enhanced reliability are inherent to the design of the railway cars developed by the specialists of the Ural Design Office of Railway Car Building. The Design Office is the part of the Corporation. It is the head railway car building office in designing running gear elements and automatic couplers. All car-building plants and many car-repair plants in Russia and CIS countries use the Ural design engineers’ projects in their work. 
When designing a new-generation car with improved technical and economic performance and enhanced serviceability the design engineers use a comprehensive approach involving the development of challenging designs of standard car units (bogie, automatic coupler, braking system) and application of high-strength materials. 
Rated capacity of “Uralvagonzavod” enables the production of more than 20.000 railway stock units a year. The car assembly factory along with the metallurgical factory, tool making factory, mechanical assembly factory, mechanical repair factory and others is a part of the Corporation and comprises three barrel making lines and five assembly conveyors for gondola car and tank car production. 
Elaborated production technology provides for monitoring the product release process at all stages. This huge plant, listed in the Guinness Book of World Records due to the extent of its production area, have an advantage of wheelset and bogie production at special-purpose sections of workshops. Centre sills, bogie frames and side frames are assembled at flow lines with automatic welding. And the quality of metal and its machining as well as the assembly reliability are inspected at each stage.
Furthermore the Corporation has its own testing facility which is accredited by the Certification Register on Federal Railroad Transport and the Russian Shipping Register. This facility is used for almost all kinds of testing on both serial products and novel assemblies and parts. It includes test-bench equipment and a car and production research centre for prototype assemblies and dummies which allows the carrying out of dynamic testing in the field and impact testing.
The Corporation strategic partners are “Russian Railways”, “First Freight Company” and “Vostokneftetrans”. This enterprise, established by “Uralvagonzavod” in association with OJSC “AK “Transneft”, ensures the transportation of oil products in UVZ tank cars under the project “Eastern Siberia – Pacific Ocean”. 
The most popular development of the Ural railway car builders in the Russian market is the gondola car 12-132 with bogie 18-100 (axle load 23.5 tf) and increased body. It features simple design and reliable performance. This type of gondola car serves as the basis for different modified models among which is the gondola car 12-132-03.
The latter is specifically designed for JSC “Russian Railways” with regard to safety and reliability requirements. Its competitive advantage consists of an increased service life of 24 years. It is the first model used with bogie 18-578 and is characterised by an improved dynamic performance and specified 500 km run before the first depot repair, which is two-and-a-half times longer than series-produced gondola cars. The bogie divided brake system increases brake reliability and ensures safe running.
The most advanced late development of the Ural railway car builders is the gondola car 12-196-01. This model is developed with the use of modern design methods including simulation technique which contributed to considerable improvement of gondola car performance. The car body has a reinforced structure and features an enhanced volume of 88 m3, providing a load-carrying capacity of 75 tons. 
Unloading bulk cargo can be performed via both car dumpers and through 14 dumping holes. The designers paid special attention to increasing the fatigue strength of the main bearing body members – they are all made of high-strength steel grades. Commercial gondola car 12-196-01 is the first gondola car in Russia fitted to bogie 18-194-1. A range of introduced design innovations allowed an increase in the axle load to 25 tf. 
For the moment the new generation gondola car has passed comprehensive testing, been accepted by the inspection board and certified for conforming with the Certification Register on Federal Railroad Transport. The first batch of such gondola cars has been successfully operated by JSC “Russian Railways” since 2008.
In addition to different gondola car modifications the Corporation offers a wide range of tank cars. Tank cars are in high demand among freight forwarders. The oil, chemical and gas industries are also in need of a modern reliable means of transportation for hazardous cargos. 
Serial production of oil tank cars by “Uralvagonzavod” was launched at the beginning of 1990s. In a relatively short time, the first and only tank car building facility was created in Russia. It was made possible thanks to the large scientific, technical and human resources of the Corporation. “Uralvagonzavod” was one of the first in the industry to implement computer-aided simulation and design to link a chain of designers, process engineers and producers through a single product computer model. 
The Corporation remains the leading tank car builder. Its tank cars are used for transporting light and dark viscous oil, gasoline and gasoline fractions, commercial sulphuric acid, oleum, commercial caustic soda, methanol and other products.
These models are created with the aid of a modular approach which consists of using the unified platform of tank cars 13-149 as a base and detailed barrel adaptation for a certain group of transported goods. This approach substantially reduced the time and cost of designing. 
In addition, the Corporation specialists have developed a whole range of tank containers for transportation of various raw products and provision. One of the most promising models is tank container КЦ 25/1,8 for the transportation of propane-butane and propane-butane fractions. The tank container is designed to transport the maximum quantity of liquid product with minimum gross weight.
“Uralvagonzavod” manufactures hopper cars for transporting bulk cargoes requiring weather protection. The hopper cars enable transportation of bulk pelletised large-grained crystal mineral fertilisers and bulk powdered raw materials for their production. 
One more favorable production set-up at “Uralvagonzavod” is the building of a family of flat cars. The flat cars are produced in batches for transportation of timber with a stowage factor 100 m3 and for transportation of one 40-foot container or two 20-foot containers as well as individually to the customer’s specific requirements. 
For example, “Uralvagonzavod” has produced several lots of flat cars for transportation of slabs with a load-carrying capacity of 70, 90, and 110 tons according to the individual order of one enterprise. 
Spending great sums on enterprise reconstruction, new engineering developments and the application of advanced and more costly materials, the Ural railway car builders are confident that the competitive properties of their products will continue to attract consumers doing stable and reliable business on the trunk railways of Russia and CIS countries and, in future, of Eastern and Western Europe.
    [~DETAIL_TEXT] => In 2011 “Uralvagonzavod” will celebrate its 75th birthday. For all these years it has had a strong lead in developing and manufacturing up-to-date railway vehicles for the railways of Russia and CIS countries. In the last years more than a million of freight railway cars of various modifications has come off the factory assembly line.
 “Uralvagonzavod” is the enterprise traditionally oriented to the mass production of freight railway cars, and first of all, multipurpose gondola cars. However, competitive expansion in production of freight railway vehicles steadily observed in the recent years has turned the Ural railway car builders to designing and developing the small-scale production of wide range of freight railway cars. The Ural railway car builders vigorously work to expand the family of freight cars for 1520-mm railways, improve design of the existing models, and develop next-generation railway vehicles with enhanced axle loads. Thanks to all this the factory succeeds in retaining 25% of the railway car building market of Russia and CIS countries. 
Crisis which overwhelmed the world economy certainly influenced the state of affairs at “Uralvagonzavod”. 2009 became the hardest time for the Corporation. Nevertheless efficient measures undertaken by the Corporation top management helped to reverse the situation. From the beginning of 2010 the production output at “Uralvagonzavod” has been characterized by stable growth. Almost eight and a half thousand gondola cars and tank cars have been produced and dispatched in six months which is two and a half times more compared to the corresponding period of the previous year. 
Nowadays “Uralvagonzavod” offers 19 types of new-generation railway cars to the railwaymen. All of them meet the latest operational and technical requirements. Improved technical and economic performance and enhanced reliability are inherent to the design of the railway cars developed by the specialists of the Ural Design Office of Railway Car Building. The Design Office is the part of the Corporation. It is the head railway car building office in designing running gear elements and automatic couplers. All car-building plants and many car-repair plants in Russia and CIS countries use the Ural design engineers’ projects in their work. 
When designing a new-generation car with improved technical and economic performance and enhanced serviceability the design engineers use a comprehensive approach involving the development of challenging designs of standard car units (bogie, automatic coupler, braking system) and application of high-strength materials. 
Rated capacity of “Uralvagonzavod” enables the production of more than 20.000 railway stock units a year. The car assembly factory along with the metallurgical factory, tool making factory, mechanical assembly factory, mechanical repair factory and others is a part of the Corporation and comprises three barrel making lines and five assembly conveyors for gondola car and tank car production. 
Elaborated production technology provides for monitoring the product release process at all stages. This huge plant, listed in the Guinness Book of World Records due to the extent of its production area, have an advantage of wheelset and bogie production at special-purpose sections of workshops. Centre sills, bogie frames and side frames are assembled at flow lines with automatic welding. And the quality of metal and its machining as well as the assembly reliability are inspected at each stage.
Furthermore the Corporation has its own testing facility which is accredited by the Certification Register on Federal Railroad Transport and the Russian Shipping Register. This facility is used for almost all kinds of testing on both serial products and novel assemblies and parts. It includes test-bench equipment and a car and production research centre for prototype assemblies and dummies which allows the carrying out of dynamic testing in the field and impact testing.
The Corporation strategic partners are “Russian Railways”, “First Freight Company” and “Vostokneftetrans”. This enterprise, established by “Uralvagonzavod” in association with OJSC “AK “Transneft”, ensures the transportation of oil products in UVZ tank cars under the project “Eastern Siberia – Pacific Ocean”. 
The most popular development of the Ural railway car builders in the Russian market is the gondola car 12-132 with bogie 18-100 (axle load 23.5 tf) and increased body. It features simple design and reliable performance. This type of gondola car serves as the basis for different modified models among which is the gondola car 12-132-03.
The latter is specifically designed for JSC “Russian Railways” with regard to safety and reliability requirements. Its competitive advantage consists of an increased service life of 24 years. It is the first model used with bogie 18-578 and is characterised by an improved dynamic performance and specified 500 km run before the first depot repair, which is two-and-a-half times longer than series-produced gondola cars. The bogie divided brake system increases brake reliability and ensures safe running.
The most advanced late development of the Ural railway car builders is the gondola car 12-196-01. This model is developed with the use of modern design methods including simulation technique which contributed to considerable improvement of gondola car performance. The car body has a reinforced structure and features an enhanced volume of 88 m3, providing a load-carrying capacity of 75 tons. 
Unloading bulk cargo can be performed via both car dumpers and through 14 dumping holes. The designers paid special attention to increasing the fatigue strength of the main bearing body members – they are all made of high-strength steel grades. Commercial gondola car 12-196-01 is the first gondola car in Russia fitted to bogie 18-194-1. A range of introduced design innovations allowed an increase in the axle load to 25 tf. 
For the moment the new generation gondola car has passed comprehensive testing, been accepted by the inspection board and certified for conforming with the Certification Register on Federal Railroad Transport. The first batch of such gondola cars has been successfully operated by JSC “Russian Railways” since 2008.
In addition to different gondola car modifications the Corporation offers a wide range of tank cars. Tank cars are in high demand among freight forwarders. The oil, chemical and gas industries are also in need of a modern reliable means of transportation for hazardous cargos. 
Serial production of oil tank cars by “Uralvagonzavod” was launched at the beginning of 1990s. In a relatively short time, the first and only tank car building facility was created in Russia. It was made possible thanks to the large scientific, technical and human resources of the Corporation. “Uralvagonzavod” was one of the first in the industry to implement computer-aided simulation and design to link a chain of designers, process engineers and producers through a single product computer model. 
The Corporation remains the leading tank car builder. Its tank cars are used for transporting light and dark viscous oil, gasoline and gasoline fractions, commercial sulphuric acid, oleum, commercial caustic soda, methanol and other products.
These models are created with the aid of a modular approach which consists of using the unified platform of tank cars 13-149 as a base and detailed barrel adaptation for a certain group of transported goods. This approach substantially reduced the time and cost of designing. 
In addition, the Corporation specialists have developed a whole range of tank containers for transportation of various raw products and provision. One of the most promising models is tank container КЦ 25/1,8 for the transportation of propane-butane and propane-butane fractions. The tank container is designed to transport the maximum quantity of liquid product with minimum gross weight.
“Uralvagonzavod” manufactures hopper cars for transporting bulk cargoes requiring weather protection. The hopper cars enable transportation of bulk pelletised large-grained crystal mineral fertilisers and bulk powdered raw materials for their production. 
One more favorable production set-up at “Uralvagonzavod” is the building of a family of flat cars. The flat cars are produced in batches for transportation of timber with a stowage factor 100 m3 and for transportation of one 40-foot container or two 20-foot containers as well as individually to the customer’s specific requirements. 
For example, “Uralvagonzavod” has produced several lots of flat cars for transportation of slabs with a load-carrying capacity of 70, 90, and 110 tons according to the individual order of one enterprise. 
Spending great sums on enterprise reconstruction, new engineering developments and the application of advanced and more costly materials, the Ural railway car builders are confident that the competitive properties of their products will continue to attract consumers doing stable and reliable business on the trunk railways of Russia and CIS countries and, in future, of Eastern and Western Europe.
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    [DETAIL_TEXT] => NIIAS has accomplished R&D and technical promotion for both single solutions (or single technologies) and complex information and management systems in the fields of safety, traffic control, transportation processes, logistics operations, infrastructure monitoring, engineering & geodetic support to project designing works, constructing and operating railways. 
Particular attention is paid to creating a single coordination space and unified geospatial database systems in RZD, which will allow creation of a reliable mechanism to integrate and synchronise various  information and control systems for practical purposes. 
The GLONASS/GPS satellite systems and information services have provided a guaranteed opportunity to accurately track the locations, movement parameters and the state of all systems on board passenger and freight trains, including special and dangerous cargoes, self-propelled mobile facilities, transport teams, etc. 
A high-precision navigation field created by the GLONASS/GPS differential correction system will directly contribute to reducing the cost of engineering investigations, designing, construction and operation of railways. Continuous monitoring of spatial parameters of railway tracks and other infrastructure units will ensure traffic safety and take timely steps to prevent and eliminate all negative impacts. 
The expected payback period for these innovative satellite technologies is three years. 
There is active development in Russian production of navigation equipment, software and services rendered in order to use the results of space activities in the country’s transport. 
The priority in terms of the implementation of innovative satellite technology on Russia’s railways, is to provide a strategic transition to modern integrated systems of intellectual railway transport, including safety, train traffic interval regulation and transport process management by means of real-time control over the movement of rolling stock, passengers and cargoes. 
Particular attention is paid to creating intelligent train and railway station control systems, new generations of information systems for transport process modelling and analysis and organising situation centres, which would provide a synergistic effect from implementation of innovative solutions in this sector. 
In order to achieve the above-mentioned goals, the Institute’s efforts are aimed at creating: 
• Complex multi-level transport safety systems using a new generation of locomotive safety devices, satellite technology and digital radio; 
• Systems of train interval regulation using satellite navigation and digital radio channels, in order to increase the frequency of train runs and railway throughput, including at less busy railway sections in areas with difficult climatic conditions; 
• Satellite technologies for monitoring and managing rolling stock, in order to save energy and fuel, and also to reduce wear in “wheel - rail” units; 
• Fundamentally new integrated systems of infrastructure and rolling stock diagnostics and monitoring; 
• Machinery optimisation technologies for track repairs during technological time breaks, linked to the train run management, in order to maximise throughput of those railway line sections where repairs are taking place; 
• Infrastructure optimisation technologies with higher levels of automation and replacement of information systems by information & control systems; 
• Transport control technologies to prevent risks of emergencies with hazardous cargoes; 
• Satellite technologies to provide monitoring of potentially dangerous natural or man-made processes, and cost-efficient ways of removing their possible consequences; 
• High-precision coordination systems, planning and mapping software based on the use of satellite navigation and high resolution photography, in order to reduce costs and labour consumption during engineering research or designing, construction and operating railways. 
9,719 rolling stock units (this includes locomotives, railcars and special self-propelled mobile facilities) are equipped currently with complex CLUB-U locomotive safety devices or CLUB-UP locomotive safety devices for special self-propelled rolling stock, which use the Russian made satellite navigation receiver GLONASS / GPS. 
Satellite navigation and communication devices are included in the means of transport diagnostics (such as track-measuring wagons, defect detectors and mobile laboratories), in traffic recovery trains, rail lubricating locomotives, track machine stations and in staff carriages of passenger trains. 
A total of 12,000 mobile units are equipped with satellite navigation. It is 36% of the total rolling stock on RZD’s railways which has to be equipped with means of satellite navigation. 
RZD has had positive experience in developing systems for receiving, processing and providing information for users from various service units and departments. Work continues to create a unified information and communication environment for collecting, processing and presenting information about the location and movement parameters of all those railway vehicle types which are fitted with navigation and communication devices. 
This approach is promising good results, because it presents the opportunity to create a single digital geo-informational database (electronic maps) across the Russian railway network, linking it with global coordinate systems and the linear rail system. 
With respect to the real need of railway transport in high-precision coordinate systems, Russian Ministry of Transport, Ministry of Industry of Russia, Roscosmos, Roszheldor and RZD have been given the task of developing and implementing technical solutions for wide-range and regional ground-based GLONASS / GPS differential correction systems for the satellite’s time and coordinates information. 
The main purpose is to achieve the accuracy and proper performance needed for the mass application of satellite technologies in the infrastructure management, track monitoring and diagnostics, topographical explorations for engineering design, construction, reconstruction, repair and operation of railways at all stages of their life cycles. 
Developers of satellite navigation equipment are paying special attention to the creation and production of domestic integrated satellite / inertial systems installed in rolling stock units. These systems will provide highly accurate characteristics, continuity and sustainability of navigation. 
NIIAS is working to improve aerospace technologies for the monitoring and geotechnical diagnosis of potentially dangerous railway lines, identification of natural and man-made processes which affect infrastructure. The purpose is to create information and advising systems, which would reduce risks in operating railway infrastructure. 
It has been decided that a priority is to create a “cross-cutting” technology for the integrated use of modern methods in aerospace, air or land-based laser, opto-electronic, thermal and georadar filming. The results of these studies will form the foundation for RZD’s unified geospatial database of technical and geodetic investigations for engineering design, construction, reconstruction and operating railways. 
Of particular importance is the issue of improving the regulatory and legislative framework for new satellite technologies on railways and across the entire transport sector of the country. 
Positive developments in introducing satellite technologies are evident today. However, the effect would be immeasurably greater if it was possible to use them universally, for all types of transport. The economic advantage for the whole transport sector and national economy would be especially noticeable in the reduction of time wagons spent idling at border crossing points, and in optimisation of border and customs handling and cargo loading and unloading operations.  
Let us hope that the rich experience of RZD in these areas will prove useful and be in demand throughout the whole of the transport industry in Russia.  
Professor S. E. Adadurov, 
Doctor of Technical Sciences and General Director of NIIAS

I. N. Rosenberg, 
Doctor of Technical Sciences and Deputy General  Director of NIIAS
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Particular attention is paid to creating a single coordination space and unified geospatial database systems in RZD, which will allow creation of a reliable mechanism to integrate and synchronise various  information and control systems for practical purposes. 
The GLONASS/GPS satellite systems and information services have provided a guaranteed opportunity to accurately track the locations, movement parameters and the state of all systems on board passenger and freight trains, including special and dangerous cargoes, self-propelled mobile facilities, transport teams, etc. 
A high-precision navigation field created by the GLONASS/GPS differential correction system will directly contribute to reducing the cost of engineering investigations, designing, construction and operation of railways. Continuous monitoring of spatial parameters of railway tracks and other infrastructure units will ensure traffic safety and take timely steps to prevent and eliminate all negative impacts. 
The expected payback period for these innovative satellite technologies is three years. 
There is active development in Russian production of navigation equipment, software and services rendered in order to use the results of space activities in the country’s transport. 
The priority in terms of the implementation of innovative satellite technology on Russia’s railways, is to provide a strategic transition to modern integrated systems of intellectual railway transport, including safety, train traffic interval regulation and transport process management by means of real-time control over the movement of rolling stock, passengers and cargoes. 
Particular attention is paid to creating intelligent train and railway station control systems, new generations of information systems for transport process modelling and analysis and organising situation centres, which would provide a synergistic effect from implementation of innovative solutions in this sector. 
In order to achieve the above-mentioned goals, the Institute’s efforts are aimed at creating: 
• Complex multi-level transport safety systems using a new generation of locomotive safety devices, satellite technology and digital radio; 
• Systems of train interval regulation using satellite navigation and digital radio channels, in order to increase the frequency of train runs and railway throughput, including at less busy railway sections in areas with difficult climatic conditions; 
• Satellite technologies for monitoring and managing rolling stock, in order to save energy and fuel, and also to reduce wear in “wheel - rail” units; 
• Fundamentally new integrated systems of infrastructure and rolling stock diagnostics and monitoring; 
• Machinery optimisation technologies for track repairs during technological time breaks, linked to the train run management, in order to maximise throughput of those railway line sections where repairs are taking place; 
• Infrastructure optimisation technologies with higher levels of automation and replacement of information systems by information & control systems; 
• Transport control technologies to prevent risks of emergencies with hazardous cargoes; 
• Satellite technologies to provide monitoring of potentially dangerous natural or man-made processes, and cost-efficient ways of removing their possible consequences; 
• High-precision coordination systems, planning and mapping software based on the use of satellite navigation and high resolution photography, in order to reduce costs and labour consumption during engineering research or designing, construction and operating railways. 
9,719 rolling stock units (this includes locomotives, railcars and special self-propelled mobile facilities) are equipped currently with complex CLUB-U locomotive safety devices or CLUB-UP locomotive safety devices for special self-propelled rolling stock, which use the Russian made satellite navigation receiver GLONASS / GPS. 
Satellite navigation and communication devices are included in the means of transport diagnostics (such as track-measuring wagons, defect detectors and mobile laboratories), in traffic recovery trains, rail lubricating locomotives, track machine stations and in staff carriages of passenger trains. 
A total of 12,000 mobile units are equipped with satellite navigation. It is 36% of the total rolling stock on RZD’s railways which has to be equipped with means of satellite navigation. 
RZD has had positive experience in developing systems for receiving, processing and providing information for users from various service units and departments. Work continues to create a unified information and communication environment for collecting, processing and presenting information about the location and movement parameters of all those railway vehicle types which are fitted with navigation and communication devices. 
This approach is promising good results, because it presents the opportunity to create a single digital geo-informational database (electronic maps) across the Russian railway network, linking it with global coordinate systems and the linear rail system. 
With respect to the real need of railway transport in high-precision coordinate systems, Russian Ministry of Transport, Ministry of Industry of Russia, Roscosmos, Roszheldor and RZD have been given the task of developing and implementing technical solutions for wide-range and regional ground-based GLONASS / GPS differential correction systems for the satellite’s time and coordinates information. 
The main purpose is to achieve the accuracy and proper performance needed for the mass application of satellite technologies in the infrastructure management, track monitoring and diagnostics, topographical explorations for engineering design, construction, reconstruction, repair and operation of railways at all stages of their life cycles. 
Developers of satellite navigation equipment are paying special attention to the creation and production of domestic integrated satellite / inertial systems installed in rolling stock units. These systems will provide highly accurate characteristics, continuity and sustainability of navigation. 
NIIAS is working to improve aerospace technologies for the monitoring and geotechnical diagnosis of potentially dangerous railway lines, identification of natural and man-made processes which affect infrastructure. The purpose is to create information and advising systems, which would reduce risks in operating railway infrastructure. 
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Particular attention is paid to creating intelligent train and railway station control systems, new generations of information systems for transport process modelling and analysis and organising situation centres, which would provide a synergistic effect from implementation of innovative solutions in this sector. 
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• Systems of train interval regulation using satellite navigation and digital radio channels, in order to increase the frequency of train runs and railway throughput, including at less busy railway sections in areas with difficult climatic conditions; 
• Satellite technologies for monitoring and managing rolling stock, in order to save energy and fuel, and also to reduce wear in “wheel - rail” units; 
• Fundamentally new integrated systems of infrastructure and rolling stock diagnostics and monitoring; 
• Machinery optimisation technologies for track repairs during technological time breaks, linked to the train run management, in order to maximise throughput of those railway line sections where repairs are taking place; 
• Infrastructure optimisation technologies with higher levels of automation and replacement of information systems by information & control systems; 
• Transport control technologies to prevent risks of emergencies with hazardous cargoes; 
• Satellite technologies to provide monitoring of potentially dangerous natural or man-made processes, and cost-efficient ways of removing their possible consequences; 
• High-precision coordination systems, planning and mapping software based on the use of satellite navigation and high resolution photography, in order to reduce costs and labour consumption during engineering research or designing, construction and operating railways. 
9,719 rolling stock units (this includes locomotives, railcars and special self-propelled mobile facilities) are equipped currently with complex CLUB-U locomotive safety devices or CLUB-UP locomotive safety devices for special self-propelled rolling stock, which use the Russian made satellite navigation receiver GLONASS / GPS. 
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RZD has had positive experience in developing systems for receiving, processing and providing information for users from various service units and departments. Work continues to create a unified information and communication environment for collecting, processing and presenting information about the location and movement parameters of all those railway vehicle types which are fitted with navigation and communication devices. 
This approach is promising good results, because it presents the opportunity to create a single digital geo-informational database (electronic maps) across the Russian railway network, linking it with global coordinate systems and the linear rail system. 
With respect to the real need of railway transport in high-precision coordinate systems, Russian Ministry of Transport, Ministry of Industry of Russia, Roscosmos, Roszheldor and RZD have been given the task of developing and implementing technical solutions for wide-range and regional ground-based GLONASS / GPS differential correction systems for the satellite’s time and coordinates information. 
The main purpose is to achieve the accuracy and proper performance needed for the mass application of satellite technologies in the infrastructure management, track monitoring and diagnostics, topographical explorations for engineering design, construction, reconstruction, repair and operation of railways at all stages of their life cycles. 
Developers of satellite navigation equipment are paying special attention to the creation and production of domestic integrated satellite / inertial systems installed in rolling stock units. These systems will provide highly accurate characteristics, continuity and sustainability of navigation. 
NIIAS is working to improve aerospace technologies for the monitoring and geotechnical diagnosis of potentially dangerous railway lines, identification of natural and man-made processes which affect infrastructure. The purpose is to create information and advising systems, which would reduce risks in operating railway infrastructure. 
It has been decided that a priority is to create a “cross-cutting” technology for the integrated use of modern methods in aerospace, air or land-based laser, opto-electronic, thermal and georadar filming. The results of these studies will form the foundation for RZD’s unified geospatial database of technical and geodetic investigations for engineering design, construction, reconstruction and operating railways. 
Of particular importance is the issue of improving the regulatory and legislative framework for new satellite technologies on railways and across the entire transport sector of the country. 
Positive developments in introducing satellite technologies are evident today. However, the effect would be immeasurably greater if it was possible to use them universally, for all types of transport. The economic advantage for the whole transport sector and national economy would be especially noticeable in the reduction of time wagons spent idling at border crossing points, and in optimisation of border and customs handling and cargo loading and unloading operations.  
Let us hope that the rich experience of RZD in these areas will prove useful and be in demand throughout the whole of the transport industry in Russia.  
Professor S. E. Adadurov, 
Doctor of Technical Sciences and General Director of NIIAS

I. N. Rosenberg, 
Doctor of Technical Sciences and Deputy General  Director of NIIAS
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Particular attention is paid to creating a single coordination space and unified geospatial database systems in RZD, which will allow creation of a reliable mechanism to integrate and synchronise various  information and control systems for practical purposes. 
The GLONASS/GPS satellite systems and information services have provided a guaranteed opportunity to accurately track the locations, movement parameters and the state of all systems on board passenger and freight trains, including special and dangerous cargoes, self-propelled mobile facilities, transport teams, etc. 
A high-precision navigation field created by the GLONASS/GPS differential correction system will directly contribute to reducing the cost of engineering investigations, designing, construction and operation of railways. Continuous monitoring of spatial parameters of railway tracks and other infrastructure units will ensure traffic safety and take timely steps to prevent and eliminate all negative impacts. 
The expected payback period for these innovative satellite technologies is three years. 
There is active development in Russian production of navigation equipment, software and services rendered in order to use the results of space activities in the country’s transport. 
The priority in terms of the implementation of innovative satellite technology on Russia’s railways, is to provide a strategic transition to modern integrated systems of intellectual railway transport, including safety, train traffic interval regulation and transport process management by means of real-time control over the movement of rolling stock, passengers and cargoes. 
Particular attention is paid to creating intelligent train and railway station control systems, new generations of information systems for transport process modelling and analysis and organising situation centres, which would provide a synergistic effect from implementation of innovative solutions in this sector. 
In order to achieve the above-mentioned goals, the Institute’s efforts are aimed at creating: 
• Complex multi-level transport safety systems using a new generation of locomotive safety devices, satellite technology and digital radio; 
• Systems of train interval regulation using satellite navigation and digital radio channels, in order to increase the frequency of train runs and railway throughput, including at less busy railway sections in areas with difficult climatic conditions; 
• Satellite technologies for monitoring and managing rolling stock, in order to save energy and fuel, and also to reduce wear in “wheel - rail” units; 
• Fundamentally new integrated systems of infrastructure and rolling stock diagnostics and monitoring; 
• Machinery optimisation technologies for track repairs during technological time breaks, linked to the train run management, in order to maximise throughput of those railway line sections where repairs are taking place; 
• Infrastructure optimisation technologies with higher levels of automation and replacement of information systems by information & control systems; 
• Transport control technologies to prevent risks of emergencies with hazardous cargoes; 
• Satellite technologies to provide monitoring of potentially dangerous natural or man-made processes, and cost-efficient ways of removing their possible consequences; 
• High-precision coordination systems, planning and mapping software based on the use of satellite navigation and high resolution photography, in order to reduce costs and labour consumption during engineering research or designing, construction and operating railways. 
9,719 rolling stock units (this includes locomotives, railcars and special self-propelled mobile facilities) are equipped currently with complex CLUB-U locomotive safety devices or CLUB-UP locomotive safety devices for special self-propelled rolling stock, which use the Russian made satellite navigation receiver GLONASS / GPS. 
Satellite navigation and communication devices are included in the means of transport diagnostics (such as track-measuring wagons, defect detectors and mobile laboratories), in traffic recovery trains, rail lubricating locomotives, track machine stations and in staff carriages of passenger trains. 
A total of 12,000 mobile units are equipped with satellite navigation. It is 36% of the total rolling stock on RZD’s railways which has to be equipped with means of satellite navigation. 
RZD has had positive experience in developing systems for receiving, processing and providing information for users from various service units and departments. Work continues to create a unified information and communication environment for collecting, processing and presenting information about the location and movement parameters of all those railway vehicle types which are fitted with navigation and communication devices. 
This approach is promising good results, because it presents the opportunity to create a single digital geo-informational database (electronic maps) across the Russian railway network, linking it with global coordinate systems and the linear rail system. 
With respect to the real need of railway transport in high-precision coordinate systems, Russian Ministry of Transport, Ministry of Industry of Russia, Roscosmos, Roszheldor and RZD have been given the task of developing and implementing technical solutions for wide-range and regional ground-based GLONASS / GPS differential correction systems for the satellite’s time and coordinates information. 
The main purpose is to achieve the accuracy and proper performance needed for the mass application of satellite technologies in the infrastructure management, track monitoring and diagnostics, topographical explorations for engineering design, construction, reconstruction, repair and operation of railways at all stages of their life cycles. 
Developers of satellite navigation equipment are paying special attention to the creation and production of domestic integrated satellite / inertial systems installed in rolling stock units. These systems will provide highly accurate characteristics, continuity and sustainability of navigation. 
NIIAS is working to improve aerospace technologies for the monitoring and geotechnical diagnosis of potentially dangerous railway lines, identification of natural and man-made processes which affect infrastructure. The purpose is to create information and advising systems, which would reduce risks in operating railway infrastructure. 
It has been decided that a priority is to create a “cross-cutting” technology for the integrated use of modern methods in aerospace, air or land-based laser, opto-electronic, thermal and georadar filming. The results of these studies will form the foundation for RZD’s unified geospatial database of technical and geodetic investigations for engineering design, construction, reconstruction and operating railways. 
Of particular importance is the issue of improving the regulatory and legislative framework for new satellite technologies on railways and across the entire transport sector of the country. 
Positive developments in introducing satellite technologies are evident today. However, the effect would be immeasurably greater if it was possible to use them universally, for all types of transport. The economic advantage for the whole transport sector and national economy would be especially noticeable in the reduction of time wagons spent idling at border crossing points, and in optimisation of border and customs handling and cargo loading and unloading operations.  
Let us hope that the rich experience of RZD in these areas will prove useful and be in demand throughout the whole of the transport industry in Russia.  
Professor S. E. Adadurov, 
Doctor of Technical Sciences and General Director of NIIAS

I. N. Rosenberg, 
Doctor of Technical Sciences and Deputy General  Director of NIIAS
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Time for a break through 
The general transport strategy of the Government of Russia and the development of Russian electronic industry promotes the use of satellite technologies in the transport network of the country. It is not a surprise that many projects related to satellite systems in transport are being facilitated. 
2010 is considered to be a turning point for Russia’s satellite navigation systems. Thus, the GLONASS positioning system chip has appeared. Its characteristics are similar to its analogues created for the GPS network. In the 1st half of 2010, Russian enterprises and their foreign partners started mass production of a new generation of receivers which work with all satellite systems including GLONASS, GPS, GALILEO and COMPASS. The total cost of the project which is being implemented by Russian experts is estimated at not less than EUR 10 million. 
The Ministry of Transport of Russia has allocated more funds for this purpose in 2010 than before. The money is to be used to purchase about 4,000 sensors for the Russian satellite positioning system GLONASS, which are to be installed on official transport and special road maintenance equipment. Satellite systems were also used for the first time during the 2010 navigation season to monitor the movement of water taxis on rivers and canals in St Petersburg. 
Russian Ministry of Transport and Ministry of Industry and Communications are creating a unified national information system for transport security (EGIS), which is impossible without the GLONASS/GPS. It should cover all types of transport, including railways, the most advanced in certain aspects among other sectors in terms of development of modern information technologies.

Locomotives Are Controlled from Orbit 
A Satellite Technology Program Up To 2015 was approved by RZD in 2008. A number of areas is listed there, and here we shall briefly characterise them. 
Experts especially appreciated the results of activities on railways to establish a centre of coordinates. Deputy Minister of Transport of Russia spoke about it recently. Professionals are interested in this experience first of all, because it can be used in other types of transport too. 
In the future, satellite systems must not only register the position of trains, but also, they have to determine if the trains stay intact. Also, the goal is set that the technologies of satellite sensing are to be integrated with a unified system of coordinate control. The complex of modern information and satellite technology helps to track movement of trains. 
The Center for Strategic Research and Design Institute of Information, Automation and Communication in Railway Transport specifies that nowadays, satellite navigation systems are installed in 11,000 locomotives, which is 35% of their total number on Russian railways. 
So far, the devices are working offline, without signaling the location of the locomotive to the dispatching centre. This creates a serious inconvenience to the RZD’s Transportation Directorate. 
Izhevsk Radio Plant promised to equip Russian locomotives with combined satellite devices which include navigation units. Also, the device manufacturers have pledged to increase the accuracy and quality of positioning. For example, trains often run through dense urban conurbations, where the satellite signal can be blocked by external interference. 
Navigators of the same type will be installed in high-speed trains “Sapsan” shuttling between Moscow and St Petersburg. Currently, the location of trains and the speed of its movement are tracked using speed sensors installed on the axles of locomotives and rolling stock multiple units. One disadvantage of this method is insufficient accuracy of data and signal delay caused by passing through the chain of sensors. 

Beware of the train! 
Satellite technology is created to improve the integrated security on the railway network. For this purpose, RZD has introduced a high-tech system to inform repair crews about a train coming. This method of alerts is to reduce risks of injuries with railway staff. 
All information is received by the system in the automatic mode on the server, and then transmitted to the repairmen’s mobile messaging devices. The new messaging system is passing its tests on the section between Reshetnikovo and Zavidovo (Oktyabrskaya Railway). All infrastructure service units working between Moscow and St Petersburg will be equipped with such  system very soon. 
Informing the maintenance crews about approaching trains is not the only task the new system fulfils. It also informs drivers about people working on the road and warning about possible emergency situations. Because satellite technologies are to help pinpoint the location of damaged lines. 
The pilot project was implemented on the route between Moscow and Klin. A differential Navigation Satellite System (DGNSS) was created to this purpose. It consists of four permanent satellite reference stations (RS), established at the Moskovsky Terminal in St. Petersburg, railway stations and the computer center in Moscow. 
DGNSS operates according to the navigation standards of the European Position Determination System (EUPOSR). Satellite dual-frequency devices GLONASS / GPS GX1230 are used as receivers on PC. Differential correction of the DGNSS equipment helps accuracy in determining coordinates of objects, and web-based interface sewn into a new version of the software is to improve functionality of receivers. 
Repair equipment is supposed to include satellite navigation too. It consolidates signals of GLONASS / GPS which come from the orbit and from GSM and GPRS devices (cellular communication and mobile Internet), transferred from board of the special equipment. 
All signals are converted into coordinates, which allows for automatically keeping track of repair machinery to the place where work is carried out. Thus, it is possible to monitor the implementation of repairs during the “windows” in the train schedule designated especially for this purpose. 
Satellite system also helps in positioning objects of railway infrastructure for digitizing maps. Satellite data is usually reconfirmed by measuring from moving diagnostic vehicles, as well as by means of GIS spatial data capture. 

Everything is clear  from above! 
Information and satellite systems are to help protecting  infrastructure, rolling stock and cargo from unlawful interference, and they allow customers to see in real time on their computer screens how their cargoes move across the network of steel railway lines. And even more: they can operate the additional equipment installed on the rolling stock by its owner. 
The above mentioned is included the project implemented by Refservis for informational support of fast refrigerator trains. Integrated loading centers have been created at the Oktyabrskaya and the Far Eastern railways in the framework of this project. These centres generate all information. 
Satellite tracking and remote control systems allow setting information flows between the equipment and the dispatch centre improving the quality of transport and reducing maintenance costs for refrigerators and refrigerated containers en route. 
Here we are to note that the refrigerated container can operate autonomously for 18 days. However, it is necessary to make changes in its operation mode, depending on the shipping conditions. In addition, an operator must be sure that the equipment is in proper order, therefore a remote control of GPS type is installed on refrigerated containers. In principle, refrigeration units can be operated via satellite channels using Internet. Test drives have been made on the route between St Petersburg railway hub and stations of Siberia. 

“Green” monitoring 
Using satellite technologies on Russian railways is not limited to the mentioned above functions. Valentin Gapanovich, Senior Vice President of RZD, says that a comprehensive survey of air quality in cities and industrial areas is being done together with the Institute of Atmospheric Physics of Russian Academy of Sciences, to assess the impact on the environment made by different industries and economic activities, including railway transport. A high-tech complex of laboratory trains is also created for this purpose. 
There is a transport monitoring of special and dangerous cargoes performed on the basis of GLONASS satellite system and digital communication systems.  
The Ministry of Transport’s data is that 65% of dangerous cargoes is transported in Russia by motorways, and the remaining share belongs to railways almost entirely. Therefore, Transport Ministry proposes to oblige carriers of these two segments to equip vehicles with satellite navigation system. Satellite technologies are needed to enhance the security of oil transports. Simultaneously, this should help in improving accounting for it. After all, it is still unclear, how much oil is sold on the domestic market and how much is exported from Russia, said Nikolai Lyamov. 
by Andrey Lazarev 
    [~DETAIL_TEXT] => 
Time for a break through 
The general transport strategy of the Government of Russia and the development of Russian electronic industry promotes the use of satellite technologies in the transport network of the country. It is not a surprise that many projects related to satellite systems in transport are being facilitated. 
2010 is considered to be a turning point for Russia’s satellite navigation systems. Thus, the GLONASS positioning system chip has appeared. Its characteristics are similar to its analogues created for the GPS network. In the 1st half of 2010, Russian enterprises and their foreign partners started mass production of a new generation of receivers which work with all satellite systems including GLONASS, GPS, GALILEO and COMPASS. The total cost of the project which is being implemented by Russian experts is estimated at not less than EUR 10 million. 
The Ministry of Transport of Russia has allocated more funds for this purpose in 2010 than before. The money is to be used to purchase about 4,000 sensors for the Russian satellite positioning system GLONASS, which are to be installed on official transport and special road maintenance equipment. Satellite systems were also used for the first time during the 2010 navigation season to monitor the movement of water taxis on rivers and canals in St Petersburg. 
Russian Ministry of Transport and Ministry of Industry and Communications are creating a unified national information system for transport security (EGIS), which is impossible without the GLONASS/GPS. It should cover all types of transport, including railways, the most advanced in certain aspects among other sectors in terms of development of modern information technologies.

Locomotives Are Controlled from Orbit 
A Satellite Technology Program Up To 2015 was approved by RZD in 2008. A number of areas is listed there, and here we shall briefly characterise them. 
Experts especially appreciated the results of activities on railways to establish a centre of coordinates. Deputy Minister of Transport of Russia spoke about it recently. Professionals are interested in this experience first of all, because it can be used in other types of transport too. 
In the future, satellite systems must not only register the position of trains, but also, they have to determine if the trains stay intact. Also, the goal is set that the technologies of satellite sensing are to be integrated with a unified system of coordinate control. The complex of modern information and satellite technology helps to track movement of trains. 
The Center for Strategic Research and Design Institute of Information, Automation and Communication in Railway Transport specifies that nowadays, satellite navigation systems are installed in 11,000 locomotives, which is 35% of their total number on Russian railways. 
So far, the devices are working offline, without signaling the location of the locomotive to the dispatching centre. This creates a serious inconvenience to the RZD’s Transportation Directorate. 
Izhevsk Radio Plant promised to equip Russian locomotives with combined satellite devices which include navigation units. Also, the device manufacturers have pledged to increase the accuracy and quality of positioning. For example, trains often run through dense urban conurbations, where the satellite signal can be blocked by external interference. 
Navigators of the same type will be installed in high-speed trains “Sapsan” shuttling between Moscow and St Petersburg. Currently, the location of trains and the speed of its movement are tracked using speed sensors installed on the axles of locomotives and rolling stock multiple units. One disadvantage of this method is insufficient accuracy of data and signal delay caused by passing through the chain of sensors. 

Beware of the train! 
Satellite technology is created to improve the integrated security on the railway network. For this purpose, RZD has introduced a high-tech system to inform repair crews about a train coming. This method of alerts is to reduce risks of injuries with railway staff. 
All information is received by the system in the automatic mode on the server, and then transmitted to the repairmen’s mobile messaging devices. The new messaging system is passing its tests on the section between Reshetnikovo and Zavidovo (Oktyabrskaya Railway). All infrastructure service units working between Moscow and St Petersburg will be equipped with such  system very soon. 
Informing the maintenance crews about approaching trains is not the only task the new system fulfils. It also informs drivers about people working on the road and warning about possible emergency situations. Because satellite technologies are to help pinpoint the location of damaged lines. 
The pilot project was implemented on the route between Moscow and Klin. A differential Navigation Satellite System (DGNSS) was created to this purpose. It consists of four permanent satellite reference stations (RS), established at the Moskovsky Terminal in St. Petersburg, railway stations and the computer center in Moscow. 
DGNSS operates according to the navigation standards of the European Position Determination System (EUPOSR). Satellite dual-frequency devices GLONASS / GPS GX1230 are used as receivers on PC. Differential correction of the DGNSS equipment helps accuracy in determining coordinates of objects, and web-based interface sewn into a new version of the software is to improve functionality of receivers. 
Repair equipment is supposed to include satellite navigation too. It consolidates signals of GLONASS / GPS which come from the orbit and from GSM and GPRS devices (cellular communication and mobile Internet), transferred from board of the special equipment. 
All signals are converted into coordinates, which allows for automatically keeping track of repair machinery to the place where work is carried out. Thus, it is possible to monitor the implementation of repairs during the “windows” in the train schedule designated especially for this purpose. 
Satellite system also helps in positioning objects of railway infrastructure for digitizing maps. Satellite data is usually reconfirmed by measuring from moving diagnostic vehicles, as well as by means of GIS spatial data capture. 

Everything is clear  from above! 
Information and satellite systems are to help protecting  infrastructure, rolling stock and cargo from unlawful interference, and they allow customers to see in real time on their computer screens how their cargoes move across the network of steel railway lines. And even more: they can operate the additional equipment installed on the rolling stock by its owner. 
The above mentioned is included the project implemented by Refservis for informational support of fast refrigerator trains. Integrated loading centers have been created at the Oktyabrskaya and the Far Eastern railways in the framework of this project. These centres generate all information. 
Satellite tracking and remote control systems allow setting information flows between the equipment and the dispatch centre improving the quality of transport and reducing maintenance costs for refrigerators and refrigerated containers en route. 
Here we are to note that the refrigerated container can operate autonomously for 18 days. However, it is necessary to make changes in its operation mode, depending on the shipping conditions. In addition, an operator must be sure that the equipment is in proper order, therefore a remote control of GPS type is installed on refrigerated containers. In principle, refrigeration units can be operated via satellite channels using Internet. Test drives have been made on the route between St Petersburg railway hub and stations of Siberia. 

“Green” monitoring 
Using satellite technologies on Russian railways is not limited to the mentioned above functions. Valentin Gapanovich, Senior Vice President of RZD, says that a comprehensive survey of air quality in cities and industrial areas is being done together with the Institute of Atmospheric Physics of Russian Academy of Sciences, to assess the impact on the environment made by different industries and economic activities, including railway transport. A high-tech complex of laboratory trains is also created for this purpose. 
There is a transport monitoring of special and dangerous cargoes performed on the basis of GLONASS satellite system and digital communication systems.  
The Ministry of Transport’s data is that 65% of dangerous cargoes is transported in Russia by motorways, and the remaining share belongs to railways almost entirely. Therefore, Transport Ministry proposes to oblige carriers of these two segments to equip vehicles with satellite navigation system. Satellite technologies are needed to enhance the security of oil transports. Simultaneously, this should help in improving accounting for it. After all, it is still unclear, how much oil is sold on the domestic market and how much is exported from Russia, said Nikolai Lyamov. 
by Andrey Lazarev 
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Time for a break through 
The general transport strategy of the Government of Russia and the development of Russian electronic industry promotes the use of satellite technologies in the transport network of the country. It is not a surprise that many projects related to satellite systems in transport are being facilitated. 
2010 is considered to be a turning point for Russia’s satellite navigation systems. Thus, the GLONASS positioning system chip has appeared. Its characteristics are similar to its analogues created for the GPS network. In the 1st half of 2010, Russian enterprises and their foreign partners started mass production of a new generation of receivers which work with all satellite systems including GLONASS, GPS, GALILEO and COMPASS. The total cost of the project which is being implemented by Russian experts is estimated at not less than EUR 10 million. 
The Ministry of Transport of Russia has allocated more funds for this purpose in 2010 than before. The money is to be used to purchase about 4,000 sensors for the Russian satellite positioning system GLONASS, which are to be installed on official transport and special road maintenance equipment. Satellite systems were also used for the first time during the 2010 navigation season to monitor the movement of water taxis on rivers and canals in St Petersburg. 
Russian Ministry of Transport and Ministry of Industry and Communications are creating a unified national information system for transport security (EGIS), which is impossible without the GLONASS/GPS. It should cover all types of transport, including railways, the most advanced in certain aspects among other sectors in terms of development of modern information technologies.

Locomotives Are Controlled from Orbit 
A Satellite Technology Program Up To 2015 was approved by RZD in 2008. A number of areas is listed there, and here we shall briefly characterise them. 
Experts especially appreciated the results of activities on railways to establish a centre of coordinates. Deputy Minister of Transport of Russia spoke about it recently. Professionals are interested in this experience first of all, because it can be used in other types of transport too. 
In the future, satellite systems must not only register the position of trains, but also, they have to determine if the trains stay intact. Also, the goal is set that the technologies of satellite sensing are to be integrated with a unified system of coordinate control. The complex of modern information and satellite technology helps to track movement of trains. 
The Center for Strategic Research and Design Institute of Information, Automation and Communication in Railway Transport specifies that nowadays, satellite navigation systems are installed in 11,000 locomotives, which is 35% of their total number on Russian railways. 
So far, the devices are working offline, without signaling the location of the locomotive to the dispatching centre. This creates a serious inconvenience to the RZD’s Transportation Directorate. 
Izhevsk Radio Plant promised to equip Russian locomotives with combined satellite devices which include navigation units. Also, the device manufacturers have pledged to increase the accuracy and quality of positioning. For example, trains often run through dense urban conurbations, where the satellite signal can be blocked by external interference. 
Navigators of the same type will be installed in high-speed trains “Sapsan” shuttling between Moscow and St Petersburg. Currently, the location of trains and the speed of its movement are tracked using speed sensors installed on the axles of locomotives and rolling stock multiple units. One disadvantage of this method is insufficient accuracy of data and signal delay caused by passing through the chain of sensors. 

Beware of the train! 
Satellite technology is created to improve the integrated security on the railway network. For this purpose, RZD has introduced a high-tech system to inform repair crews about a train coming. This method of alerts is to reduce risks of injuries with railway staff. 
All information is received by the system in the automatic mode on the server, and then transmitted to the repairmen’s mobile messaging devices. The new messaging system is passing its tests on the section between Reshetnikovo and Zavidovo (Oktyabrskaya Railway). All infrastructure service units working between Moscow and St Petersburg will be equipped with such  system very soon. 
Informing the maintenance crews about approaching trains is not the only task the new system fulfils. It also informs drivers about people working on the road and warning about possible emergency situations. Because satellite technologies are to help pinpoint the location of damaged lines. 
The pilot project was implemented on the route between Moscow and Klin. A differential Navigation Satellite System (DGNSS) was created to this purpose. It consists of four permanent satellite reference stations (RS), established at the Moskovsky Terminal in St. Petersburg, railway stations and the computer center in Moscow. 
DGNSS operates according to the navigation standards of the European Position Determination System (EUPOSR). Satellite dual-frequency devices GLONASS / GPS GX1230 are used as receivers on PC. Differential correction of the DGNSS equipment helps accuracy in determining coordinates of objects, and web-based interface sewn into a new version of the software is to improve functionality of receivers. 
Repair equipment is supposed to include satellite navigation too. It consolidates signals of GLONASS / GPS which come from the orbit and from GSM and GPRS devices (cellular communication and mobile Internet), transferred from board of the special equipment. 
All signals are converted into coordinates, which allows for automatically keeping track of repair machinery to the place where work is carried out. Thus, it is possible to monitor the implementation of repairs during the “windows” in the train schedule designated especially for this purpose. 
Satellite system also helps in positioning objects of railway infrastructure for digitizing maps. Satellite data is usually reconfirmed by measuring from moving diagnostic vehicles, as well as by means of GIS spatial data capture. 

Everything is clear  from above! 
Information and satellite systems are to help protecting  infrastructure, rolling stock and cargo from unlawful interference, and they allow customers to see in real time on their computer screens how their cargoes move across the network of steel railway lines. And even more: they can operate the additional equipment installed on the rolling stock by its owner. 
The above mentioned is included the project implemented by Refservis for informational support of fast refrigerator trains. Integrated loading centers have been created at the Oktyabrskaya and the Far Eastern railways in the framework of this project. These centres generate all information. 
Satellite tracking and remote control systems allow setting information flows between the equipment and the dispatch centre improving the quality of transport and reducing maintenance costs for refrigerators and refrigerated containers en route. 
Here we are to note that the refrigerated container can operate autonomously for 18 days. However, it is necessary to make changes in its operation mode, depending on the shipping conditions. In addition, an operator must be sure that the equipment is in proper order, therefore a remote control of GPS type is installed on refrigerated containers. In principle, refrigeration units can be operated via satellite channels using Internet. Test drives have been made on the route between St Petersburg railway hub and stations of Siberia. 

“Green” monitoring 
Using satellite technologies on Russian railways is not limited to the mentioned above functions. Valentin Gapanovich, Senior Vice President of RZD, says that a comprehensive survey of air quality in cities and industrial areas is being done together with the Institute of Atmospheric Physics of Russian Academy of Sciences, to assess the impact on the environment made by different industries and economic activities, including railway transport. A high-tech complex of laboratory trains is also created for this purpose. 
There is a transport monitoring of special and dangerous cargoes performed on the basis of GLONASS satellite system and digital communication systems.  
The Ministry of Transport’s data is that 65% of dangerous cargoes is transported in Russia by motorways, and the remaining share belongs to railways almost entirely. Therefore, Transport Ministry proposes to oblige carriers of these two segments to equip vehicles with satellite navigation system. Satellite technologies are needed to enhance the security of oil transports. Simultaneously, this should help in improving accounting for it. After all, it is still unclear, how much oil is sold on the domestic market and how much is exported from Russia, said Nikolai Lyamov. 
by Andrey Lazarev 
    [~DETAIL_TEXT] => 
Time for a break through 
The general transport strategy of the Government of Russia and the development of Russian electronic industry promotes the use of satellite technologies in the transport network of the country. It is not a surprise that many projects related to satellite systems in transport are being facilitated. 
2010 is considered to be a turning point for Russia’s satellite navigation systems. Thus, the GLONASS positioning system chip has appeared. Its characteristics are similar to its analogues created for the GPS network. In the 1st half of 2010, Russian enterprises and their foreign partners started mass production of a new generation of receivers which work with all satellite systems including GLONASS, GPS, GALILEO and COMPASS. The total cost of the project which is being implemented by Russian experts is estimated at not less than EUR 10 million. 
The Ministry of Transport of Russia has allocated more funds for this purpose in 2010 than before. The money is to be used to purchase about 4,000 sensors for the Russian satellite positioning system GLONASS, which are to be installed on official transport and special road maintenance equipment. Satellite systems were also used for the first time during the 2010 navigation season to monitor the movement of water taxis on rivers and canals in St Petersburg. 
Russian Ministry of Transport and Ministry of Industry and Communications are creating a unified national information system for transport security (EGIS), which is impossible without the GLONASS/GPS. It should cover all types of transport, including railways, the most advanced in certain aspects among other sectors in terms of development of modern information technologies.

Locomotives Are Controlled from Orbit 
A Satellite Technology Program Up To 2015 was approved by RZD in 2008. A number of areas is listed there, and here we shall briefly characterise them. 
Experts especially appreciated the results of activities on railways to establish a centre of coordinates. Deputy Minister of Transport of Russia spoke about it recently. Professionals are interested in this experience first of all, because it can be used in other types of transport too. 
In the future, satellite systems must not only register the position of trains, but also, they have to determine if the trains stay intact. Also, the goal is set that the technologies of satellite sensing are to be integrated with a unified system of coordinate control. The complex of modern information and satellite technology helps to track movement of trains. 
The Center for Strategic Research and Design Institute of Information, Automation and Communication in Railway Transport specifies that nowadays, satellite navigation systems are installed in 11,000 locomotives, which is 35% of their total number on Russian railways. 
So far, the devices are working offline, without signaling the location of the locomotive to the dispatching centre. This creates a serious inconvenience to the RZD’s Transportation Directorate. 
Izhevsk Radio Plant promised to equip Russian locomotives with combined satellite devices which include navigation units. Also, the device manufacturers have pledged to increase the accuracy and quality of positioning. For example, trains often run through dense urban conurbations, where the satellite signal can be blocked by external interference. 
Navigators of the same type will be installed in high-speed trains “Sapsan” shuttling between Moscow and St Petersburg. Currently, the location of trains and the speed of its movement are tracked using speed sensors installed on the axles of locomotives and rolling stock multiple units. One disadvantage of this method is insufficient accuracy of data and signal delay caused by passing through the chain of sensors. 

Beware of the train! 
Satellite technology is created to improve the integrated security on the railway network. For this purpose, RZD has introduced a high-tech system to inform repair crews about a train coming. This method of alerts is to reduce risks of injuries with railway staff. 
All information is received by the system in the automatic mode on the server, and then transmitted to the repairmen’s mobile messaging devices. The new messaging system is passing its tests on the section between Reshetnikovo and Zavidovo (Oktyabrskaya Railway). All infrastructure service units working between Moscow and St Petersburg will be equipped with such  system very soon. 
Informing the maintenance crews about approaching trains is not the only task the new system fulfils. It also informs drivers about people working on the road and warning about possible emergency situations. Because satellite technologies are to help pinpoint the location of damaged lines. 
The pilot project was implemented on the route between Moscow and Klin. A differential Navigation Satellite System (DGNSS) was created to this purpose. It consists of four permanent satellite reference stations (RS), established at the Moskovsky Terminal in St. Petersburg, railway stations and the computer center in Moscow. 
DGNSS operates according to the navigation standards of the European Position Determination System (EUPOSR). Satellite dual-frequency devices GLONASS / GPS GX1230 are used as receivers on PC. Differential correction of the DGNSS equipment helps accuracy in determining coordinates of objects, and web-based interface sewn into a new version of the software is to improve functionality of receivers. 
Repair equipment is supposed to include satellite navigation too. It consolidates signals of GLONASS / GPS which come from the orbit and from GSM and GPRS devices (cellular communication and mobile Internet), transferred from board of the special equipment. 
All signals are converted into coordinates, which allows for automatically keeping track of repair machinery to the place where work is carried out. Thus, it is possible to monitor the implementation of repairs during the “windows” in the train schedule designated especially for this purpose. 
Satellite system also helps in positioning objects of railway infrastructure for digitizing maps. Satellite data is usually reconfirmed by measuring from moving diagnostic vehicles, as well as by means of GIS spatial data capture. 

Everything is clear  from above! 
Information and satellite systems are to help protecting  infrastructure, rolling stock and cargo from unlawful interference, and they allow customers to see in real time on their computer screens how their cargoes move across the network of steel railway lines. And even more: they can operate the additional equipment installed on the rolling stock by its owner. 
The above mentioned is included the project implemented by Refservis for informational support of fast refrigerator trains. Integrated loading centers have been created at the Oktyabrskaya and the Far Eastern railways in the framework of this project. These centres generate all information. 
Satellite tracking and remote control systems allow setting information flows between the equipment and the dispatch centre improving the quality of transport and reducing maintenance costs for refrigerators and refrigerated containers en route. 
Here we are to note that the refrigerated container can operate autonomously for 18 days. However, it is necessary to make changes in its operation mode, depending on the shipping conditions. In addition, an operator must be sure that the equipment is in proper order, therefore a remote control of GPS type is installed on refrigerated containers. In principle, refrigeration units can be operated via satellite channels using Internet. Test drives have been made on the route between St Petersburg railway hub and stations of Siberia. 

“Green” monitoring 
Using satellite technologies on Russian railways is not limited to the mentioned above functions. Valentin Gapanovich, Senior Vice President of RZD, says that a comprehensive survey of air quality in cities and industrial areas is being done together with the Institute of Atmospheric Physics of Russian Academy of Sciences, to assess the impact on the environment made by different industries and economic activities, including railway transport. A high-tech complex of laboratory trains is also created for this purpose. 
There is a transport monitoring of special and dangerous cargoes performed on the basis of GLONASS satellite system and digital communication systems.  
The Ministry of Transport’s data is that 65% of dangerous cargoes is transported in Russia by motorways, and the remaining share belongs to railways almost entirely. Therefore, Transport Ministry proposes to oblige carriers of these two segments to equip vehicles with satellite navigation system. Satellite technologies are needed to enhance the security of oil transports. Simultaneously, this should help in improving accounting for it. After all, it is still unclear, how much oil is sold on the domestic market and how much is exported from Russia, said Nikolai Lyamov. 
by Andrey Lazarev 
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“Intelligent” Trains
Let us consider the recent news. One of the innovations in the field of rolling stock has been developed by specialists of the Ural State University of Means of Communications. It is new electropneumatic brakes for freight trains recently introduced in Yekaterinburg during the exhibition “Innoprom 2010. Its peculiarity is that it is wireless.
Experts from the University’s research laboratory “Train Weight” say that the fundamental difference between this technical device and other samples is that, on one hand, it reduces the braking distance, and on the other hand, it makes it more gently than usual brakes do.
The first samples of electropneumatic brakes appeared in Russia almost simultaneously with the appearance of foreign models. This was at about the end of 1960s. Since then, the construction of electropneumatic brakes was improved several times. The latest generation of such a system allows for simultaneous action of the brakes in each wagon of a train, and the train can either reduce the speed due to the system work or keep moving when the brakes are released. Such cable brakes are applied successfully in route trains in some western countries.
They make traffic safer. A loaded train is heavy, which is the reason of its large inertia. So, the train cannot slow down easily. It has to make a long way before it stops completely. This distance can be significantly reduced by electropneumatic system. Other types of brakes are not as effective, so there are more risks of derailing. This risk is especially great if a train includes both loaded and empty wagons, because they are inhibited in different way. Multi-vector forces which influence train run must be balanced. And here the advantage of wireless systems speaks for itself.
This is the problem which has been being solved since 2003 by a team of scientists in partnership with manufacturers of rolling stock. The Ural State University of Communications believes that they managed to be among the first in the world to solve this task.
New brakes help to reduce the wear on brake pads. A monitoring is supposed to be held constantly regarding axle boxes heating levels and the state of the rim (riding surface) of the wheels. System reliability is increased exactly because there are less cable connections in it. Therefore, if the brakes do not work in some wagons, the system will have time to immediately “retrain itself”, as experts say. In other words, it will be able to change the operation mode in case the equipment fails in some wagons. 
Simultaneously, the new device facilitates functioning of the train internal information and diagnostic systems.
This device is revolutionary in comparison with other pneumatic brakes used on Russian railways today, the same as the invention of automatic brakes or coupling was revolutionary long time ago.
Russian wagon builders have got interested in this novelty very much, which, according to scientific calculations, allows to reduce costs by RUR 7.6 billion for only one year of their travelling the routes of steel road. This amount is achieved by energy-saving train traction, reduced wear of brake pads and less turnaround times of heavy route trains. Let us explain it. A train can not move with the same speed all the time. It can run faster in some areas, while in others it must slow down. In the first case, the locomotive consumes more energy to speed up, and in the second case, it wastes time to slow down the speed. There is a real cost saving opportunities in optimising these parameters.
It will be necessary to spend approximately USD 4.25 billion in order to equip all wagons plying the Russian standard routes with such a system. This means that operators’ revenue will exceed expenses by more than RUR 3 billion in the first year of exploitation. It turns out that the payback period for this innovation is shorter than one year.
But this is only the first move. On the second implementation stage, this unit will become a part of freight train information and diagnostic system, which is operated by an on-board computer. In this case, a driver can receive a real-time information about the state of axle boxes and the surface of wheel sets. If there is a dangerous situation, the computer will immediately identify it, and the risk for bogies to derail will be minimised.
The same on-board system can be multifunctional. For example, it can be connected with sensors which are monitoring cargo safety. It helps to establish monitoring of the most important systems and moving parts of wagons, and this will also cut costs for rolling stock maintenance. Moreover, if this opportunity is considered properly, there can be a several-fold reduction in costs. 

Microprocessors for the Points
An important condition to make railway transport work safely is improving the quality of automatic and telemechanical devices of railway switching networks (ZHAT). The main objective is to establish a highly reliable low maintenance automation and remote control network, and this topic is in the field of RZD’s activities. In Russia, specialised conferences are regularly held with participation of scientists from research institutes, specialized rail universities, manufacturers and ZHAT suppliers.
ZHAT networks are being developed by means of creation and implementation of microprocessor-based systems adapted to real conditions on railroads. It is the most sensitive point in Russia, as the harsh climate imposes particularly strict requirements for the reliability of ZHAT. Many international developments which are well applied in the mild European climate, do not pass tests in Russia. They have to be provided with additional protection circuits.
The same as for automation systems installed on rolling stock, the important feature for ZHAT is a function of diagnostics and reservation depending on the intensity of traffic on railroad sections.
In this regard, it is interesting to look at a novelty tested at the Chelyabinsk-Glavny station of the South-Ural Railway. This is a centralised electrical system Ebilok-950, which will replace old electrical centralisation relay systems served for more than forty years in the park of this passenger station.
The old EC is no longer providing the required level of reliability. It is cumbersome and energy intensive. Installation of the new EC is scheduled immediately after the construction is finished near a suburban train station, and it is going to be launched in 2010.
Technical Department of Automation and Telemechanics Service of South-Ural Railway emphasises that “Ebilok” is a microprocessor system designed to control railway switches and signals. The old racks (a huge size construction for placement and installation of cable for EC equipment) will be replaced by compact metal cabinets with electronic plates, which will occupy only one third of the current space. A large display in the station duty room will be replaced by a computer monitor, and a keyboard and a mouse will be used instead of the panel with numerous controls.
Computers improve reliability of signalling, centralisation and blocking (SCB), which is a set of technical means to ensure safety and control movement of trains. Electronics help to provide a continuous monitoring of the system, report on the pre-failure state of devices and helps minimising risks of failures in the system.
The fact that the system is compact and consumes less power, allows for using the regime of independent power supply in the centralisation devices, so that in cases of emergency power failure, EC can operate for another three hours from uninterrupted power supply blocks. But this is not the main thing also. The computer is not only able to monitor SCB systems at the station. It also transmits information to central dispatcher. Thus, it is possible to remove intermediate links in the railway management system and simultaneously to speed up adopting railway traffic management operational decisions.
The new system will also reduce operating costs, as microprocessors do not require such a regular maintenance as older systems. Also, labour consumption in repairs is reduced, as, for example, in cases where contacts had to be soldered or relays had to be adjusted after replacing. There is no need in such operations anymore, as microprocessor units are easily replaced.
A similar system has been already launched (though on a smaller scale) at the New Yelovka station at Krasnoyarsk railway. A digital remote-manipulator has been installed on the slopes of marshalling yards, which makes the control of railway switches absolutely automated. 
Such devices should appear on all key stations of RZD’s network. But the scientists are going further on. There is a pilot project carried out on the network to apply a risk-analysis for railways. Virtual models are designed to improve the safety of real trains. It is especially important for providing  movement of heavy freight trains and organising high-speed passenger traffics.

How to Optimise Wagon Flows
RZD Central Directorate for Traffic Control has told us about new information technologies being applied to improve the rolling stock management . On February 1st, 2010, RZD has started a pilot project to manage the First Freight Company’s (PGK) gondola fleet by the carrier using the method of automatic addressing. In fact, wagon fleet management regulations for interaction between RZD and PGK had been drawn up before, in 2008. The main goal is to regulate the movement of trains on freight routes so that a good value for money and quality services to be offered to the customers  (large industrial enterprises related to the market of ferrous metals, ores and raw materials), a wide geographical range to be covered with traffic, the fleet of empty wagons is to be bound to certain addresses, and wagons are to be sent to loading stations according to agreed applications from cargo shippers. In order to do this, an Automated System for Dynamic Allocation of Wagons (AC DRPV) was created. This system has been developed based on mathematical models which allow to minimise empty runs. AC DRPV assumes that, after unloading, empty gondola shipping documentation is generated following PGK’s orders for the wagons, and it also optimises costs (such as minimising costs of empty runs, minimising routes of empty run, maximising profitability, etc.).
During the detailed analysis of this automated system, the Central Traffic Management Directorate and the Company Technical Service Centre have developed a number of technical solutions in the form of technical tasks , which are aimed at improving empty run of private wagons. They are based on the following principles:
• An empty wagon core flow is to be formed, which is to move from the places of mass unloading (like ports, steel mills and other large sites) to the places of mass loading;
• Operator working practices must look like network control methods as much as possible;
• High level of technical and sending routing must be guaranteed;
• A rational configuration of empty wagon flow is to be worked out;
• Empty runs to be reduced by minimising the counter traffic;
• Shippers’ applications should be timely fulfilled;
• Economic efficiency of each empty run should be observed.
Technical tasks have established addresses of wagon home stations for those areas where too many gondola cars are unloaded. Marshalling yards are defined in such areas too. Train movement is being analysed, and most stable wagon flow destinations are being identified, which will allow for systematising empty runs and improving routing. Special routes for empty wagons are expected to be worked out for a good number of railway destinations. 
by Andrey Lazarev
    [~DETAIL_TEXT] => 
“Intelligent” Trains
Let us consider the recent news. One of the innovations in the field of rolling stock has been developed by specialists of the Ural State University of Means of Communications. It is new electropneumatic brakes for freight trains recently introduced in Yekaterinburg during the exhibition “Innoprom 2010. Its peculiarity is that it is wireless.
Experts from the University’s research laboratory “Train Weight” say that the fundamental difference between this technical device and other samples is that, on one hand, it reduces the braking distance, and on the other hand, it makes it more gently than usual brakes do.
The first samples of electropneumatic brakes appeared in Russia almost simultaneously with the appearance of foreign models. This was at about the end of 1960s. Since then, the construction of electropneumatic brakes was improved several times. The latest generation of such a system allows for simultaneous action of the brakes in each wagon of a train, and the train can either reduce the speed due to the system work or keep moving when the brakes are released. Such cable brakes are applied successfully in route trains in some western countries.
They make traffic safer. A loaded train is heavy, which is the reason of its large inertia. So, the train cannot slow down easily. It has to make a long way before it stops completely. This distance can be significantly reduced by electropneumatic system. Other types of brakes are not as effective, so there are more risks of derailing. This risk is especially great if a train includes both loaded and empty wagons, because they are inhibited in different way. Multi-vector forces which influence train run must be balanced. And here the advantage of wireless systems speaks for itself.
This is the problem which has been being solved since 2003 by a team of scientists in partnership with manufacturers of rolling stock. The Ural State University of Communications believes that they managed to be among the first in the world to solve this task.
New brakes help to reduce the wear on brake pads. A monitoring is supposed to be held constantly regarding axle boxes heating levels and the state of the rim (riding surface) of the wheels. System reliability is increased exactly because there are less cable connections in it. Therefore, if the brakes do not work in some wagons, the system will have time to immediately “retrain itself”, as experts say. In other words, it will be able to change the operation mode in case the equipment fails in some wagons. 
Simultaneously, the new device facilitates functioning of the train internal information and diagnostic systems.
This device is revolutionary in comparison with other pneumatic brakes used on Russian railways today, the same as the invention of automatic brakes or coupling was revolutionary long time ago.
Russian wagon builders have got interested in this novelty very much, which, according to scientific calculations, allows to reduce costs by RUR 7.6 billion for only one year of their travelling the routes of steel road. This amount is achieved by energy-saving train traction, reduced wear of brake pads and less turnaround times of heavy route trains. Let us explain it. A train can not move with the same speed all the time. It can run faster in some areas, while in others it must slow down. In the first case, the locomotive consumes more energy to speed up, and in the second case, it wastes time to slow down the speed. There is a real cost saving opportunities in optimising these parameters.
It will be necessary to spend approximately USD 4.25 billion in order to equip all wagons plying the Russian standard routes with such a system. This means that operators’ revenue will exceed expenses by more than RUR 3 billion in the first year of exploitation. It turns out that the payback period for this innovation is shorter than one year.
But this is only the first move. On the second implementation stage, this unit will become a part of freight train information and diagnostic system, which is operated by an on-board computer. In this case, a driver can receive a real-time information about the state of axle boxes and the surface of wheel sets. If there is a dangerous situation, the computer will immediately identify it, and the risk for bogies to derail will be minimised.
The same on-board system can be multifunctional. For example, it can be connected with sensors which are monitoring cargo safety. It helps to establish monitoring of the most important systems and moving parts of wagons, and this will also cut costs for rolling stock maintenance. Moreover, if this opportunity is considered properly, there can be a several-fold reduction in costs. 

Microprocessors for the Points
An important condition to make railway transport work safely is improving the quality of automatic and telemechanical devices of railway switching networks (ZHAT). The main objective is to establish a highly reliable low maintenance automation and remote control network, and this topic is in the field of RZD’s activities. In Russia, specialised conferences are regularly held with participation of scientists from research institutes, specialized rail universities, manufacturers and ZHAT suppliers.
ZHAT networks are being developed by means of creation and implementation of microprocessor-based systems adapted to real conditions on railroads. It is the most sensitive point in Russia, as the harsh climate imposes particularly strict requirements for the reliability of ZHAT. Many international developments which are well applied in the mild European climate, do not pass tests in Russia. They have to be provided with additional protection circuits.
The same as for automation systems installed on rolling stock, the important feature for ZHAT is a function of diagnostics and reservation depending on the intensity of traffic on railroad sections.
In this regard, it is interesting to look at a novelty tested at the Chelyabinsk-Glavny station of the South-Ural Railway. This is a centralised electrical system Ebilok-950, which will replace old electrical centralisation relay systems served for more than forty years in the park of this passenger station.
The old EC is no longer providing the required level of reliability. It is cumbersome and energy intensive. Installation of the new EC is scheduled immediately after the construction is finished near a suburban train station, and it is going to be launched in 2010.
Technical Department of Automation and Telemechanics Service of South-Ural Railway emphasises that “Ebilok” is a microprocessor system designed to control railway switches and signals. The old racks (a huge size construction for placement and installation of cable for EC equipment) will be replaced by compact metal cabinets with electronic plates, which will occupy only one third of the current space. A large display in the station duty room will be replaced by a computer monitor, and a keyboard and a mouse will be used instead of the panel with numerous controls.
Computers improve reliability of signalling, centralisation and blocking (SCB), which is a set of technical means to ensure safety and control movement of trains. Electronics help to provide a continuous monitoring of the system, report on the pre-failure state of devices and helps minimising risks of failures in the system.
The fact that the system is compact and consumes less power, allows for using the regime of independent power supply in the centralisation devices, so that in cases of emergency power failure, EC can operate for another three hours from uninterrupted power supply blocks. But this is not the main thing also. The computer is not only able to monitor SCB systems at the station. It also transmits information to central dispatcher. Thus, it is possible to remove intermediate links in the railway management system and simultaneously to speed up adopting railway traffic management operational decisions.
The new system will also reduce operating costs, as microprocessors do not require such a regular maintenance as older systems. Also, labour consumption in repairs is reduced, as, for example, in cases where contacts had to be soldered or relays had to be adjusted after replacing. There is no need in such operations anymore, as microprocessor units are easily replaced.
A similar system has been already launched (though on a smaller scale) at the New Yelovka station at Krasnoyarsk railway. A digital remote-manipulator has been installed on the slopes of marshalling yards, which makes the control of railway switches absolutely automated. 
Such devices should appear on all key stations of RZD’s network. But the scientists are going further on. There is a pilot project carried out on the network to apply a risk-analysis for railways. Virtual models are designed to improve the safety of real trains. It is especially important for providing  movement of heavy freight trains and organising high-speed passenger traffics.

How to Optimise Wagon Flows
RZD Central Directorate for Traffic Control has told us about new information technologies being applied to improve the rolling stock management . On February 1st, 2010, RZD has started a pilot project to manage the First Freight Company’s (PGK) gondola fleet by the carrier using the method of automatic addressing. In fact, wagon fleet management regulations for interaction between RZD and PGK had been drawn up before, in 2008. The main goal is to regulate the movement of trains on freight routes so that a good value for money and quality services to be offered to the customers  (large industrial enterprises related to the market of ferrous metals, ores and raw materials), a wide geographical range to be covered with traffic, the fleet of empty wagons is to be bound to certain addresses, and wagons are to be sent to loading stations according to agreed applications from cargo shippers. In order to do this, an Automated System for Dynamic Allocation of Wagons (AC DRPV) was created. This system has been developed based on mathematical models which allow to minimise empty runs. AC DRPV assumes that, after unloading, empty gondola shipping documentation is generated following PGK’s orders for the wagons, and it also optimises costs (such as minimising costs of empty runs, minimising routes of empty run, maximising profitability, etc.).
During the detailed analysis of this automated system, the Central Traffic Management Directorate and the Company Technical Service Centre have developed a number of technical solutions in the form of technical tasks , which are aimed at improving empty run of private wagons. They are based on the following principles:
• An empty wagon core flow is to be formed, which is to move from the places of mass unloading (like ports, steel mills and other large sites) to the places of mass loading;
• Operator working practices must look like network control methods as much as possible;
• High level of technical and sending routing must be guaranteed;
• A rational configuration of empty wagon flow is to be worked out;
• Empty runs to be reduced by minimising the counter traffic;
• Shippers’ applications should be timely fulfilled;
• Economic efficiency of each empty run should be observed.
Technical tasks have established addresses of wagon home stations for those areas where too many gondola cars are unloaded. Marshalling yards are defined in such areas too. Train movement is being analysed, and most stable wagon flow destinations are being identified, which will allow for systematising empty runs and improving routing. Special routes for empty wagons are expected to be worked out for a good number of railway destinations. 
by Andrey Lazarev
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    [DETAIL_TEXT] => 
“Intelligent” Trains
Let us consider the recent news. One of the innovations in the field of rolling stock has been developed by specialists of the Ural State University of Means of Communications. It is new electropneumatic brakes for freight trains recently introduced in Yekaterinburg during the exhibition “Innoprom 2010. Its peculiarity is that it is wireless.
Experts from the University’s research laboratory “Train Weight” say that the fundamental difference between this technical device and other samples is that, on one hand, it reduces the braking distance, and on the other hand, it makes it more gently than usual brakes do.
The first samples of electropneumatic brakes appeared in Russia almost simultaneously with the appearance of foreign models. This was at about the end of 1960s. Since then, the construction of electropneumatic brakes was improved several times. The latest generation of such a system allows for simultaneous action of the brakes in each wagon of a train, and the train can either reduce the speed due to the system work or keep moving when the brakes are released. Such cable brakes are applied successfully in route trains in some western countries.
They make traffic safer. A loaded train is heavy, which is the reason of its large inertia. So, the train cannot slow down easily. It has to make a long way before it stops completely. This distance can be significantly reduced by electropneumatic system. Other types of brakes are not as effective, so there are more risks of derailing. This risk is especially great if a train includes both loaded and empty wagons, because they are inhibited in different way. Multi-vector forces which influence train run must be balanced. And here the advantage of wireless systems speaks for itself.
This is the problem which has been being solved since 2003 by a team of scientists in partnership with manufacturers of rolling stock. The Ural State University of Communications believes that they managed to be among the first in the world to solve this task.
New brakes help to reduce the wear on brake pads. A monitoring is supposed to be held constantly regarding axle boxes heating levels and the state of the rim (riding surface) of the wheels. System reliability is increased exactly because there are less cable connections in it. Therefore, if the brakes do not work in some wagons, the system will have time to immediately “retrain itself”, as experts say. In other words, it will be able to change the operation mode in case the equipment fails in some wagons. 
Simultaneously, the new device facilitates functioning of the train internal information and diagnostic systems.
This device is revolutionary in comparison with other pneumatic brakes used on Russian railways today, the same as the invention of automatic brakes or coupling was revolutionary long time ago.
Russian wagon builders have got interested in this novelty very much, which, according to scientific calculations, allows to reduce costs by RUR 7.6 billion for only one year of their travelling the routes of steel road. This amount is achieved by energy-saving train traction, reduced wear of brake pads and less turnaround times of heavy route trains. Let us explain it. A train can not move with the same speed all the time. It can run faster in some areas, while in others it must slow down. In the first case, the locomotive consumes more energy to speed up, and in the second case, it wastes time to slow down the speed. There is a real cost saving opportunities in optimising these parameters.
It will be necessary to spend approximately USD 4.25 billion in order to equip all wagons plying the Russian standard routes with such a system. This means that operators’ revenue will exceed expenses by more than RUR 3 billion in the first year of exploitation. It turns out that the payback period for this innovation is shorter than one year.
But this is only the first move. On the second implementation stage, this unit will become a part of freight train information and diagnostic system, which is operated by an on-board computer. In this case, a driver can receive a real-time information about the state of axle boxes and the surface of wheel sets. If there is a dangerous situation, the computer will immediately identify it, and the risk for bogies to derail will be minimised.
The same on-board system can be multifunctional. For example, it can be connected with sensors which are monitoring cargo safety. It helps to establish monitoring of the most important systems and moving parts of wagons, and this will also cut costs for rolling stock maintenance. Moreover, if this opportunity is considered properly, there can be a several-fold reduction in costs. 

Microprocessors for the Points
An important condition to make railway transport work safely is improving the quality of automatic and telemechanical devices of railway switching networks (ZHAT). The main objective is to establish a highly reliable low maintenance automation and remote control network, and this topic is in the field of RZD’s activities. In Russia, specialised conferences are regularly held with participation of scientists from research institutes, specialized rail universities, manufacturers and ZHAT suppliers.
ZHAT networks are being developed by means of creation and implementation of microprocessor-based systems adapted to real conditions on railroads. It is the most sensitive point in Russia, as the harsh climate imposes particularly strict requirements for the reliability of ZHAT. Many international developments which are well applied in the mild European climate, do not pass tests in Russia. They have to be provided with additional protection circuits.
The same as for automation systems installed on rolling stock, the important feature for ZHAT is a function of diagnostics and reservation depending on the intensity of traffic on railroad sections.
In this regard, it is interesting to look at a novelty tested at the Chelyabinsk-Glavny station of the South-Ural Railway. This is a centralised electrical system Ebilok-950, which will replace old electrical centralisation relay systems served for more than forty years in the park of this passenger station.
The old EC is no longer providing the required level of reliability. It is cumbersome and energy intensive. Installation of the new EC is scheduled immediately after the construction is finished near a suburban train station, and it is going to be launched in 2010.
Technical Department of Automation and Telemechanics Service of South-Ural Railway emphasises that “Ebilok” is a microprocessor system designed to control railway switches and signals. The old racks (a huge size construction for placement and installation of cable for EC equipment) will be replaced by compact metal cabinets with electronic plates, which will occupy only one third of the current space. A large display in the station duty room will be replaced by a computer monitor, and a keyboard and a mouse will be used instead of the panel with numerous controls.
Computers improve reliability of signalling, centralisation and blocking (SCB), which is a set of technical means to ensure safety and control movement of trains. Electronics help to provide a continuous monitoring of the system, report on the pre-failure state of devices and helps minimising risks of failures in the system.
The fact that the system is compact and consumes less power, allows for using the regime of independent power supply in the centralisation devices, so that in cases of emergency power failure, EC can operate for another three hours from uninterrupted power supply blocks. But this is not the main thing also. The computer is not only able to monitor SCB systems at the station. It also transmits information to central dispatcher. Thus, it is possible to remove intermediate links in the railway management system and simultaneously to speed up adopting railway traffic management operational decisions.
The new system will also reduce operating costs, as microprocessors do not require such a regular maintenance as older systems. Also, labour consumption in repairs is reduced, as, for example, in cases where contacts had to be soldered or relays had to be adjusted after replacing. There is no need in such operations anymore, as microprocessor units are easily replaced.
A similar system has been already launched (though on a smaller scale) at the New Yelovka station at Krasnoyarsk railway. A digital remote-manipulator has been installed on the slopes of marshalling yards, which makes the control of railway switches absolutely automated. 
Such devices should appear on all key stations of RZD’s network. But the scientists are going further on. There is a pilot project carried out on the network to apply a risk-analysis for railways. Virtual models are designed to improve the safety of real trains. It is especially important for providing  movement of heavy freight trains and organising high-speed passenger traffics.

How to Optimise Wagon Flows
RZD Central Directorate for Traffic Control has told us about new information technologies being applied to improve the rolling stock management . On February 1st, 2010, RZD has started a pilot project to manage the First Freight Company’s (PGK) gondola fleet by the carrier using the method of automatic addressing. In fact, wagon fleet management regulations for interaction between RZD and PGK had been drawn up before, in 2008. The main goal is to regulate the movement of trains on freight routes so that a good value for money and quality services to be offered to the customers  (large industrial enterprises related to the market of ferrous metals, ores and raw materials), a wide geographical range to be covered with traffic, the fleet of empty wagons is to be bound to certain addresses, and wagons are to be sent to loading stations according to agreed applications from cargo shippers. In order to do this, an Automated System for Dynamic Allocation of Wagons (AC DRPV) was created. This system has been developed based on mathematical models which allow to minimise empty runs. AC DRPV assumes that, after unloading, empty gondola shipping documentation is generated following PGK’s orders for the wagons, and it also optimises costs (such as minimising costs of empty runs, minimising routes of empty run, maximising profitability, etc.).
During the detailed analysis of this automated system, the Central Traffic Management Directorate and the Company Technical Service Centre have developed a number of technical solutions in the form of technical tasks , which are aimed at improving empty run of private wagons. They are based on the following principles:
• An empty wagon core flow is to be formed, which is to move from the places of mass unloading (like ports, steel mills and other large sites) to the places of mass loading;
• Operator working practices must look like network control methods as much as possible;
• High level of technical and sending routing must be guaranteed;
• A rational configuration of empty wagon flow is to be worked out;
• Empty runs to be reduced by minimising the counter traffic;
• Shippers’ applications should be timely fulfilled;
• Economic efficiency of each empty run should be observed.
Technical tasks have established addresses of wagon home stations for those areas where too many gondola cars are unloaded. Marshalling yards are defined in such areas too. Train movement is being analysed, and most stable wagon flow destinations are being identified, which will allow for systematising empty runs and improving routing. Special routes for empty wagons are expected to be worked out for a good number of railway destinations. 
by Andrey Lazarev
    [~DETAIL_TEXT] => 
“Intelligent” Trains
Let us consider the recent news. One of the innovations in the field of rolling stock has been developed by specialists of the Ural State University of Means of Communications. It is new electropneumatic brakes for freight trains recently introduced in Yekaterinburg during the exhibition “Innoprom 2010. Its peculiarity is that it is wireless.
Experts from the University’s research laboratory “Train Weight” say that the fundamental difference between this technical device and other samples is that, on one hand, it reduces the braking distance, and on the other hand, it makes it more gently than usual brakes do.
The first samples of electropneumatic brakes appeared in Russia almost simultaneously with the appearance of foreign models. This was at about the end of 1960s. Since then, the construction of electropneumatic brakes was improved several times. The latest generation of such a system allows for simultaneous action of the brakes in each wagon of a train, and the train can either reduce the speed due to the system work or keep moving when the brakes are released. Such cable brakes are applied successfully in route trains in some western countries.
They make traffic safer. A loaded train is heavy, which is the reason of its large inertia. So, the train cannot slow down easily. It has to make a long way before it stops completely. This distance can be significantly reduced by electropneumatic system. Other types of brakes are not as effective, so there are more risks of derailing. This risk is especially great if a train includes both loaded and empty wagons, because they are inhibited in different way. Multi-vector forces which influence train run must be balanced. And here the advantage of wireless systems speaks for itself.
This is the problem which has been being solved since 2003 by a team of scientists in partnership with manufacturers of rolling stock. The Ural State University of Communications believes that they managed to be among the first in the world to solve this task.
New brakes help to reduce the wear on brake pads. A monitoring is supposed to be held constantly regarding axle boxes heating levels and the state of the rim (riding surface) of the wheels. System reliability is increased exactly because there are less cable connections in it. Therefore, if the brakes do not work in some wagons, the system will have time to immediately “retrain itself”, as experts say. In other words, it will be able to change the operation mode in case the equipment fails in some wagons. 
Simultaneously, the new device facilitates functioning of the train internal information and diagnostic systems.
This device is revolutionary in comparison with other pneumatic brakes used on Russian railways today, the same as the invention of automatic brakes or coupling was revolutionary long time ago.
Russian wagon builders have got interested in this novelty very much, which, according to scientific calculations, allows to reduce costs by RUR 7.6 billion for only one year of their travelling the routes of steel road. This amount is achieved by energy-saving train traction, reduced wear of brake pads and less turnaround times of heavy route trains. Let us explain it. A train can not move with the same speed all the time. It can run faster in some areas, while in others it must slow down. In the first case, the locomotive consumes more energy to speed up, and in the second case, it wastes time to slow down the speed. There is a real cost saving opportunities in optimising these parameters.
It will be necessary to spend approximately USD 4.25 billion in order to equip all wagons plying the Russian standard routes with such a system. This means that operators’ revenue will exceed expenses by more than RUR 3 billion in the first year of exploitation. It turns out that the payback period for this innovation is shorter than one year.
But this is only the first move. On the second implementation stage, this unit will become a part of freight train information and diagnostic system, which is operated by an on-board computer. In this case, a driver can receive a real-time information about the state of axle boxes and the surface of wheel sets. If there is a dangerous situation, the computer will immediately identify it, and the risk for bogies to derail will be minimised.
The same on-board system can be multifunctional. For example, it can be connected with sensors which are monitoring cargo safety. It helps to establish monitoring of the most important systems and moving parts of wagons, and this will also cut costs for rolling stock maintenance. Moreover, if this opportunity is considered properly, there can be a several-fold reduction in costs. 

Microprocessors for the Points
An important condition to make railway transport work safely is improving the quality of automatic and telemechanical devices of railway switching networks (ZHAT). The main objective is to establish a highly reliable low maintenance automation and remote control network, and this topic is in the field of RZD’s activities. In Russia, specialised conferences are regularly held with participation of scientists from research institutes, specialized rail universities, manufacturers and ZHAT suppliers.
ZHAT networks are being developed by means of creation and implementation of microprocessor-based systems adapted to real conditions on railroads. It is the most sensitive point in Russia, as the harsh climate imposes particularly strict requirements for the reliability of ZHAT. Many international developments which are well applied in the mild European climate, do not pass tests in Russia. They have to be provided with additional protection circuits.
The same as for automation systems installed on rolling stock, the important feature for ZHAT is a function of diagnostics and reservation depending on the intensity of traffic on railroad sections.
In this regard, it is interesting to look at a novelty tested at the Chelyabinsk-Glavny station of the South-Ural Railway. This is a centralised electrical system Ebilok-950, which will replace old electrical centralisation relay systems served for more than forty years in the park of this passenger station.
The old EC is no longer providing the required level of reliability. It is cumbersome and energy intensive. Installation of the new EC is scheduled immediately after the construction is finished near a suburban train station, and it is going to be launched in 2010.
Technical Department of Automation and Telemechanics Service of South-Ural Railway emphasises that “Ebilok” is a microprocessor system designed to control railway switches and signals. The old racks (a huge size construction for placement and installation of cable for EC equipment) will be replaced by compact metal cabinets with electronic plates, which will occupy only one third of the current space. A large display in the station duty room will be replaced by a computer monitor, and a keyboard and a mouse will be used instead of the panel with numerous controls.
Computers improve reliability of signalling, centralisation and blocking (SCB), which is a set of technical means to ensure safety and control movement of trains. Electronics help to provide a continuous monitoring of the system, report on the pre-failure state of devices and helps minimising risks of failures in the system.
The fact that the system is compact and consumes less power, allows for using the regime of independent power supply in the centralisation devices, so that in cases of emergency power failure, EC can operate for another three hours from uninterrupted power supply blocks. But this is not the main thing also. The computer is not only able to monitor SCB systems at the station. It also transmits information to central dispatcher. Thus, it is possible to remove intermediate links in the railway management system and simultaneously to speed up adopting railway traffic management operational decisions.
The new system will also reduce operating costs, as microprocessors do not require such a regular maintenance as older systems. Also, labour consumption in repairs is reduced, as, for example, in cases where contacts had to be soldered or relays had to be adjusted after replacing. There is no need in such operations anymore, as microprocessor units are easily replaced.
A similar system has been already launched (though on a smaller scale) at the New Yelovka station at Krasnoyarsk railway. A digital remote-manipulator has been installed on the slopes of marshalling yards, which makes the control of railway switches absolutely automated. 
Such devices should appear on all key stations of RZD’s network. But the scientists are going further on. There is a pilot project carried out on the network to apply a risk-analysis for railways. Virtual models are designed to improve the safety of real trains. It is especially important for providing  movement of heavy freight trains and organising high-speed passenger traffics.

How to Optimise Wagon Flows
RZD Central Directorate for Traffic Control has told us about new information technologies being applied to improve the rolling stock management . On February 1st, 2010, RZD has started a pilot project to manage the First Freight Company’s (PGK) gondola fleet by the carrier using the method of automatic addressing. In fact, wagon fleet management regulations for interaction between RZD and PGK had been drawn up before, in 2008. The main goal is to regulate the movement of trains on freight routes so that a good value for money and quality services to be offered to the customers  (large industrial enterprises related to the market of ferrous metals, ores and raw materials), a wide geographical range to be covered with traffic, the fleet of empty wagons is to be bound to certain addresses, and wagons are to be sent to loading stations according to agreed applications from cargo shippers. In order to do this, an Automated System for Dynamic Allocation of Wagons (AC DRPV) was created. This system has been developed based on mathematical models which allow to minimise empty runs. AC DRPV assumes that, after unloading, empty gondola shipping documentation is generated following PGK’s orders for the wagons, and it also optimises costs (such as minimising costs of empty runs, minimising routes of empty run, maximising profitability, etc.).
During the detailed analysis of this automated system, the Central Traffic Management Directorate and the Company Technical Service Centre have developed a number of technical solutions in the form of technical tasks , which are aimed at improving empty run of private wagons. They are based on the following principles:
• An empty wagon core flow is to be formed, which is to move from the places of mass unloading (like ports, steel mills and other large sites) to the places of mass loading;
• Operator working practices must look like network control methods as much as possible;
• High level of technical and sending routing must be guaranteed;
• A rational configuration of empty wagon flow is to be worked out;
• Empty runs to be reduced by minimising the counter traffic;
• Shippers’ applications should be timely fulfilled;
• Economic efficiency of each empty run should be observed.
Technical tasks have established addresses of wagon home stations for those areas where too many gondola cars are unloaded. Marshalling yards are defined in such areas too. Train movement is being analysed, and most stable wagon flow destinations are being identified, which will allow for systematising empty runs and improving routing. Special routes for empty wagons are expected to be worked out for a good number of railway destinations. 
by Andrey Lazarev
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Global targets
Entering the logistics market, RZD plans to become the largest transport company and to turn into a leading international logistic operator. The role of logistics in the development of railway transport in modern Russia can hardly be overestimated. Russian railwaymen, as well as those in Europe, are paying more and more attention to logistics – a relatively new sector, however widely recognised it in the transport market.
This notion connects all players in the freight transportation market. Supply chains of goods transportation appear in production logistics, which step by step turns into the logistics of finished commodities sale and supplies of raw materials, with which transport logistics is closely connected. This forms the infrastructure of goods flows – both internally and externally.
Undoubtedly, logistics has become a link for trade relations between countries. On the one hand, different transport modes continue to compete to carry global cargo flows, on the other hand, they have to interact with each other more and more frequently. The demand for mutually beneficial cooperation between transport market players is growing. The state is interested in this too. In recent years, a lot was done to improve junctions on the Russian transport system, which were sometimes proving bottle-necks for cargo flows. 
In turn, this creates the conditions for the extension of national transport systems’ international integration. Nowadays, they interact more and more closely. Their interaction is so close that transport problems are discussed at intergovernmental level in the context of developing foreign trade. The increase in international cargo transportation volumes links the questions of transportation and service quality improvement. Meanwhile, it is impossible to increase throughput without implementing innovations and modern technologies. 

Logistics in Russia         
A well-known aphorism: the tragedy of age is not ageing but continuing to feel young. It is a characteristic feature of Russian railways – one of the oldest transport systems and businesses in the country. That is why Russian Railways was among the first companies which felt the need to develop integration and new forms of cooperation to realise the political tasks the RF Government gave to transporters. 
Among the aims were the removal of barriers preventing regular freight flow, orientation towards the free market and free trade. This is an objective requirement for transporters as well as for the Russian economy as a whole.
The peculiarity of railway companies is that they have to take into consideration the interests of their partners and neighbours. When a client chooses the route for freight transportation, his prime interest is the through tariff. And its constituents must be closely connected with each other. If someone wants to get unjustified benefit, he will put his partners at a disadvantage. However, in this case, underwater reefs lurk beneath the surface on the through transportation route, and those striving to get rich at their neighbours’ expense will fall foul of them. The business will not be a success. Consequently, neither participant of the transport chain will profit. 
The transport and logistic services market had been developing rather dynamically until the middle of 2008. In that period the economy of the Russian Federation had been keeping pace with the world economy. As in other countries, in Russia the demand for servicing cargo flows – both internal and foreign trade ones – had increased. Everyone had been earning money in this sector of the market.
The global financial crisis, which later turned into the economic recession, changed a lot in the transport and logistic services market. Under those conditions, the value by volume of the market reduced. According to analysts, it fell from $50 billion to the current level of $37 billion. It is not much for such a country as Russia. And the potential not being realised in the transport and logistic services market is colossal. 
To structure the market and to make use of the fruits it may give, one should understand: the structure of the Russian transport and logistic market significantly differs from the global one due to the low level of development in logistics. Its share in the RF is approximately 17%, while in developed countries it amounts to 52% on average. 
Thus, one can easily estimate the value of the pent-up demand for logistics services. Meanwhile, freight transportation remains the dominating segment in the market – its share in the total volume of services exceeds 80%.
The crisis is not everlasting. Most analysts forecast that the volume of cargo transportation will increase significantly in 2015. Considering all the circumstances, the future of the Russian transport and logistic services market is rather promising.
Meanwhile, relevant infrastructure is needed to form high-tech logistics services. It must be accessible for clients in the transport market. Unfortunately, there are few logistics centres in Russia whose technical characteristics and service levels meet modern requirements.

Warehouses from A to D
He who does not feel a favourable wind does not know the direction in which he is moving. RZD knows what to strive for.
A and B class terminals prevail in the warehousing real estate market in the countries where logistics are well developed; in Russia there are mainly C and D class terminals. Their share in Moscow and St Petersburg is 60-70%, while in other Russian regions it amounts to 80-90%. The logistics business in the RF has not reached multi-modality level yet. And the warehouses announced by their owners to be of C or D class do not sometimes meet the international terminal and warehousing infrastructure norms. 
Today’s terminals and warehousing terminals of A and B class must be equipped with modern loading and lifting-transport facilities as well as modern engineering networks, reserve power supplies, cargo storage mode registering systems, fiber-optic communications, advanced information systems, efficient room planning and a professional security service. These are the services of such complexes, for which there is a demand.
The crisis provoked a decline in investment into the construction of up-to-date terminal and warehousing capacities. However, the world financial and economic crisis should not stop realisation of plans for long-term infrastructure development. Kleanthes, a Greek Stoic philosopher, said “Fate guides the willing, but drags the unwilling.”
Without development of an advanced logistics infrastructure, Russian companies will lag behind foreign ones in the global transport market once the crisis is over. Logistics development is one of RZD’s strategic directions in terms of diversification. A significant synergy exists between logistics and the main business of the company – railway cargo transportation. 
It should be based on the ability to provide a comprehensive freight delivery service from producers to consumers including so-called final preparation of goods before transportation. In other words, there should be a service with added value (packing, sorting, accumulating cargo batches).
Forwarding is also a business linked to cargo transportation. RZD leaves open the possibility of launching its own forwarding companies. They could occupy a worthy place in the market. It has nothing to do with accusations that RZD seeks to monopolise another market. The company simply wants to enter this market and compete there with other players. The targets are similar to those of any other company: RZD must compensate for the money invested by the owner (in this case – the Russian Federation), and increase the value of the property given to railwaymen.   
Let’s not specify what changes were sparked in the Russian economy by the global crisis. It is not an easy topic. Even now, experts have no single opinion on what its real underlying causes were, and what mechanisms could relieve the global economy from the crisis with minimal losses. The situation reminds of a doctor who is not sure about his diagnosis, which is why he is unable to prescribe an efficient medicine to cure the disease. 
Consequently, there appears the question: what is the most efficient way for transporters to integrate into the global market. Thus, they have to be guided by common sense and focus on the fact that railway transport is a part of the real sector of the economy. And its fulfillment has nothing to do with the notorious derivatives – instruments, the prices of which are based on the parameters of another.
Railway transport is a basic service. This premise is the foundation of railway transport development strategy.
Russian Railways have enough property, the company has a network of terminals, which were historically based around small containers. Nowadays, they are not as efficient as sea containers. Meanwhile, there is a foundation for the logistics infrastructure of the Russian railways. Their network covers almost all the territory of the RF, includes all key zones where cargo flows run, and has an outlet to the domestic as well as foreign strategic market. 
That is why railway logistics is a network-based project. It concerns the system of block trains running between the most important centres of goods production. Such a system is to be joined with the railway logistics of neighbouring states. This gives additional stimuli for the development of a Russian railway logistics network and the upgrading of its resources so they meet international standards. Common interests with other players on the transport services market in this sector can also attract clients to railway transport. 
RZD plans to become not only the largest transport company but one of the leading international logistics companies. 
An example of the company’s ability to solve logistical tasks is the organisation of the work of container trains. In particular, the delivery of car components to the car-making plant of Volkswagen AG in Kaluga, in cooperation with Deutsche Bahn. Volkswagen AG considers the services of the railway company as a high-quality service comparable to those found in Europe.
After the in-depth study of international and Russian experience of the logistics organisation, the company’s specialists determined the strategic directions for RZD’s logistics business development. 
Among them is the formation of infrastructure to create a system of modern terminal and logistics complexes throughout the Russian railway network, the construction and optimisation of the existing terminal and warehousing assets of RZD, and the development of the terminal operation business. 
Finally, an additional interface with consumers of transport services should be created for RZD’s entrance into the complex client-oriented logistic services market. They can have new elements – retail (shop-warehouse) and industrial services (a service accompanying transportation).
To achieve this, the plan is to implement an advanced kind of freight arrangement or, in other words, to create multi-modal terminal and logistic centres along the entire Russian railway network. At first, it should be launched in the large transport junctions with the freight flows influencing the structure of the railway throughput and distributing the loading on the transport network adjacent to these junctions.

A network of terminal and logistics centres
In April 2009, a centre for terminal development was launched by RZD administrative staff. Nowadays, its responsibility is to organise the preparation of projects to create and develop RZD’s terminal and logistics complexes, to control the realisation of these projects, as well as to develop and carry out a single, unified policy in this sector.
A prospective network of terminal and logistics centres (TLC) is closely connected with the system of regular container trains working on schedule, which reduces delivery time and sees batches of goods delivered following the “in time” principle. In future, the basic network of regular container routes is to cover all key transport railway junctions.
It is supposed to use a unified technology of freight handling, to create a single tariff policy as well as a single information space.
The unprecedented scaled programme envisages:
• construction of over 50 large TLCs, including off-dock terminals in the Far East, and in the Baltic and the Azov – the Black Sea regions;
• complex reconstruction of approximately 60 large goods yards;
• modernisation of lifting transport facilities at about 400 goods yards;
• reconstruction of the railway complex at the approaches to terminals and transport junctions.
One of the most remarkable projects is being carried out already. It is the project to build TLC “Belyi Rast” in the Moscow region. A strategic partner of RZD, Deutsche Bahn AG is taking part in the development of the project. It is the first object we would like to launch to create the system of off-dock terminals located outside major cities and equipped with a developed access system including railway and an outlet to the Moscow ring road. Companies from other countries are following the project. For example, representatives from Finnish Railways showed their interest in it.  
The TLC will be located on a plot of land measuring over 100 hectares. There will be a container terminal with an annual capacity of 290,000 TEU, a universal terminal to handle industrial cargoes, a universal warehousing complex, a centre for cargo customs registration, as well as business administration and educational centres.
The specialists at the centre for terminals development and DB International GmbH made the feasibility study of the TLC project and commercial offers to potential investors.
Naturally, the project is not cheap. The estimated cost is RUR 20 billion and there are no comparable projects in Russia. According to preliminary calculations, the pay-back period is 3-4 years. Despite the crisis, the project is attractive for investors. 
Practice shows that in Russia, projects to create large modern TLCs without railway approaches have serious problems because of the irregular deliveries of large consignments. And their work is very complicated because of traffic jams on the roads. Thus, TLC construction projects in which RZD participates have more advantages.
Among other prospective infrastructure projects being developed there are the construction of a dry port in the Leningrad region near the Shushary railway station, and the creation of Doskino logistics centre in the Nizhny Novgorod region. These projects are also being used to develop the model, which will be later used for creation of other TLCs. The main thing is to work out the schemes of cooperation with major consignors.
I would like to mention that it is not only railwaymen and investors but also the RF authorities that are interested in the construction of new TLCs. It is supported by the federal government.
They create additional jobs and stimulate the development of the economy in the regions, making them more attractive for investors to launch new manufacturing projects.
TLC network development is impossible without partnerships with operators. Nowadays, Freight One and TransContainer work successfully in the market. In 2010, Freight Two is expected to appear.
It is considered that only private capital is efficient and everything created by the state will bring little profit. Why does state capital account for half of asset turnover in the USA? Why isn’t there a country in Europe where the share of state money is less than 37%? Who uses such capital inefficiently? Unfortunately, the share of the state in the economy in Russia fell to 18%.  
An important target of RZD is the creation of a 3PL logistics provider in the structure of the holding company. In other words, the company will provide logistics services. The provider of the service is the link between the producer and the consumer. 3PL provider offers a full range of services to move the product along the supply chain. In fact, he manages logistics chains as an outsourcer. 
The functions of 3PL providers are organisation of transportation, stock management as well as registration, storage, and goods services, preparation of documentation and delivery to the final consumer.  A client purchases a full package of the services he needs. 
The available resource base of RZD and its subsidiaries is supposed to be used efficiently to form such services. It means that we are going to launch a new business with high added value created due to advanced logistics technologies.

International products
Naturally, the main business of RZD is the provision of transport services – railway transportation. That is why a wide range of transport services divided according to level of quality, delivery time, price, and other criteria must be implemented in the market. Among them, there must be a line of products oriented at servicing transport corridors. 
The company is going to strengthen the role of RZD along the Eurasian corridor, where the main goods flow to the world market is focused. In particular, in the “Transsib in 7 Days” project. To carry it out, the company plans to improve the technology of transportation, including transit.
“Transsib in 7 Days” is becoming the business card of Russian railways. It is an innovative transport product which will deliver freight from the Far East ports to the western border of Russia in a week in 2012. And then there is the opportunity to transport it to Germany in a similar period of time.
When discussing new products with railwaymen from other states, RZD wants to understand which railways can participate in the existing container transportation system. Naturally, we focus on the largest freight flows. These plans envisage new rolling stock supplies, infrastructure capacity improvement, advanced IT implementation, and adaptation of Russian railway technologies to international standards.
One of the most significant programmes to strengthen international cooperation in the railway sector is the concession of the Armenian railways.
There are projects connected with the construction of railways in Mongolia, railway transportation development in Central Asia on the route to Kazakhstan and China. We are analysing the project of a railway line to be built along the North-South international transport corridor. 
We should not forget about the East-West corridor providing cargo delivery from the ocean coast to the Baltic ports. Throughput on the line may exceed 25 million tons. The prospects of launching railway-ferry lines and railways with a 1520 mm wide gauge to Bratislava and Vienna are being discussed.  
All these projects may provide the infrastructure to offer a new level of transport and logistics services to RZD clients. Many countries are interested in the wide gauge on their territory. It is considered to be the basis for intermodal service. In this case, the solution reduces the expenses of consignors, because any cargo handling means additional expenses. I will give just one example: they get $500 in Poland for “re-writing” one set of transport documents. Railway logistics will make such middle men tighten their belts.

Access to RF sea ports 
RZD is paying a lot of attention to the development of railway access to the ports of Russia.
In fact, close interaction between different transport modes is envisaged in the framework of these projects. Initially, it should be the interaction of railway and sea transport. An up-to-date sea port in the RF cannot exist without railway infrastructure. For RZD, it is an ally in their fight for cargo.
In 2009, the cargo transportation volume to Russia ports amounted to 199.1 million tons, a rise of 4.1% year-on-year. 
To tackle transporting the prospective volumes via distant approaches to ports in the Russian north-west, RZD fulfilled a significant amount of work to construct the second track, to electrify, and to prolong receiving and dispatching tracks at the limiting areas.
Large investments are being made into the development of the railway approaches to the ports of Ust-Luga, Primorsk, Vysotsk, Murmansk and Kaliningrad. To make its logistics efficient, the company and its subsidiaries have become shareholders in the sea ports. Unfortunately, such  an opportunity was missed in the Far Eastern region.
Nowadays, it is difficult to agree on a coordinated tariff policy with Far Eastern stevedoring companies. Nevertheless, RZD has invested RUR 20 billion into railway accesses to the Far Eastern ports in the past three years.
As a result, the cargo flow to the ports of Vladivostok, Nakhodka, and Vostochny increased by 20% compared with the Soviet period. If such investments had not been made, continual traffic jams would have developed and enterprises in the Far Eastern region would have idled.
Nowadays, we are analysing the feasibility of launching managing companies in the largest ports to coordinate the investment policy and actions of all the participants in the supply chain. This will be based on a single traffic control service monitoring freight flows across all transport modes.

Joint projects with other market players
We have joined in efforts to negotiate the issues of normative and legislative regulation of technical and technological problems occurring at the interaction of railway and sea transport (adherence to the agreed transportation terms and measures of mutual responsibility for breaking them, development of the law on transit). 
RZD has accumulated significant experience of working with shipping companies in the Far East – namely the Far Eastern Shipping Company.
The company is also making a more efficient model of interaction with Customs based on e-document turnover. A potentially important instrument of the company’s influence on the formation of a competitive and economically efficient through rate is the establishment of joint ventures with sea transporters and forwarding companies. 
To develop multimodal logistics chains for cargo delivery to consumers, mixed railway and ferry transportation is being developed. In 2007, the Ust-Luga – Baltiysk (Russia) – Sassnitz/Mukran (Germany) ferry line was opened. It is serviced by the “Vilnius” and “Baltiysk” ferries.
A special Russian-German council for the combined railway-ferry line Ust-Luga – Baltiysk – Sassnitz was created to solve the issues of ferry transportation development on this route. After the decision on Russia’s joining of the OTIF (the Intergovernmental Organisation for International Carriage by Rail) and the COTIF (Convention concerning International Carriage by Rail) was made, it became possible to use the CIM/SMGS universal consignment note for cargo transportation on the route.
The issue of regular direct railway-ferry communication between the ports of Kavkaz (Krasnodar region, Russia) and Samsun (Turkey) is being analysed. Black Sea Ferries Ltd, a subsidiary of RZD, actively participated in its launch. This company provides transport services on the line Kavkaz – Poti.

Staff training and marketing
As you see, the company has a host of important and complicated tasks that cannot be fulfilled without detailed market research and highly trained specialists. RZD needs experts in the logistics sector (management of terminals, supply chains, stores, creation of special IT systems) and to properly retrain – or train – managers at RZD and its subsidiaries. Taking into account the plans for RZD’s logistics business development and their scale, the demand for professional managers in the logistics sector will grow several times over in the near future.
The International Logistics and Supply Chains Management Centre was opened to help reach these strategic targets in St Petersburg. It must. The centre is unique because it is the first structural sub-unit launched at Russia’s oldest university and initiated and financed by two of the largest railway companies – RZD and Deutsche Bahn AG. The most important activities at the centre are the training programmes for Russian and German railway employees and freight transportation market research.
The project aims to create a link between the European Business School and St Petersburg State Railway University. An important feature of logistics projects is their high synergy. By the way, the domestic equipment manufacturing industry has the highest synergetic efficiency of all economic sectors (a synergy coefficient of 1.99). Transport is second (1.58). All projects concerning the logistics sector are synergies aimed at the creation of infrastructure for Russia’s economic development. 
Vladimir Yakunin, President of Russian Railways
    [~DETAIL_TEXT] => 
Global targets
Entering the logistics market, RZD plans to become the largest transport company and to turn into a leading international logistic operator. The role of logistics in the development of railway transport in modern Russia can hardly be overestimated. Russian railwaymen, as well as those in Europe, are paying more and more attention to logistics – a relatively new sector, however widely recognised it in the transport market.
This notion connects all players in the freight transportation market. Supply chains of goods transportation appear in production logistics, which step by step turns into the logistics of finished commodities sale and supplies of raw materials, with which transport logistics is closely connected. This forms the infrastructure of goods flows – both internally and externally.
Undoubtedly, logistics has become a link for trade relations between countries. On the one hand, different transport modes continue to compete to carry global cargo flows, on the other hand, they have to interact with each other more and more frequently. The demand for mutually beneficial cooperation between transport market players is growing. The state is interested in this too. In recent years, a lot was done to improve junctions on the Russian transport system, which were sometimes proving bottle-necks for cargo flows. 
In turn, this creates the conditions for the extension of national transport systems’ international integration. Nowadays, they interact more and more closely. Their interaction is so close that transport problems are discussed at intergovernmental level in the context of developing foreign trade. The increase in international cargo transportation volumes links the questions of transportation and service quality improvement. Meanwhile, it is impossible to increase throughput without implementing innovations and modern technologies. 

Logistics in Russia         
A well-known aphorism: the tragedy of age is not ageing but continuing to feel young. It is a characteristic feature of Russian railways – one of the oldest transport systems and businesses in the country. That is why Russian Railways was among the first companies which felt the need to develop integration and new forms of cooperation to realise the political tasks the RF Government gave to transporters. 
Among the aims were the removal of barriers preventing regular freight flow, orientation towards the free market and free trade. This is an objective requirement for transporters as well as for the Russian economy as a whole.
The peculiarity of railway companies is that they have to take into consideration the interests of their partners and neighbours. When a client chooses the route for freight transportation, his prime interest is the through tariff. And its constituents must be closely connected with each other. If someone wants to get unjustified benefit, he will put his partners at a disadvantage. However, in this case, underwater reefs lurk beneath the surface on the through transportation route, and those striving to get rich at their neighbours’ expense will fall foul of them. The business will not be a success. Consequently, neither participant of the transport chain will profit. 
The transport and logistic services market had been developing rather dynamically until the middle of 2008. In that period the economy of the Russian Federation had been keeping pace with the world economy. As in other countries, in Russia the demand for servicing cargo flows – both internal and foreign trade ones – had increased. Everyone had been earning money in this sector of the market.
The global financial crisis, which later turned into the economic recession, changed a lot in the transport and logistic services market. Under those conditions, the value by volume of the market reduced. According to analysts, it fell from $50 billion to the current level of $37 billion. It is not much for such a country as Russia. And the potential not being realised in the transport and logistic services market is colossal. 
To structure the market and to make use of the fruits it may give, one should understand: the structure of the Russian transport and logistic market significantly differs from the global one due to the low level of development in logistics. Its share in the RF is approximately 17%, while in developed countries it amounts to 52% on average. 
Thus, one can easily estimate the value of the pent-up demand for logistics services. Meanwhile, freight transportation remains the dominating segment in the market – its share in the total volume of services exceeds 80%.
The crisis is not everlasting. Most analysts forecast that the volume of cargo transportation will increase significantly in 2015. Considering all the circumstances, the future of the Russian transport and logistic services market is rather promising.
Meanwhile, relevant infrastructure is needed to form high-tech logistics services. It must be accessible for clients in the transport market. Unfortunately, there are few logistics centres in Russia whose technical characteristics and service levels meet modern requirements.

Warehouses from A to D
He who does not feel a favourable wind does not know the direction in which he is moving. RZD knows what to strive for.
A and B class terminals prevail in the warehousing real estate market in the countries where logistics are well developed; in Russia there are mainly C and D class terminals. Their share in Moscow and St Petersburg is 60-70%, while in other Russian regions it amounts to 80-90%. The logistics business in the RF has not reached multi-modality level yet. And the warehouses announced by their owners to be of C or D class do not sometimes meet the international terminal and warehousing infrastructure norms. 
Today’s terminals and warehousing terminals of A and B class must be equipped with modern loading and lifting-transport facilities as well as modern engineering networks, reserve power supplies, cargo storage mode registering systems, fiber-optic communications, advanced information systems, efficient room planning and a professional security service. These are the services of such complexes, for which there is a demand.
The crisis provoked a decline in investment into the construction of up-to-date terminal and warehousing capacities. However, the world financial and economic crisis should not stop realisation of plans for long-term infrastructure development. Kleanthes, a Greek Stoic philosopher, said “Fate guides the willing, but drags the unwilling.”
Without development of an advanced logistics infrastructure, Russian companies will lag behind foreign ones in the global transport market once the crisis is over. Logistics development is one of RZD’s strategic directions in terms of diversification. A significant synergy exists between logistics and the main business of the company – railway cargo transportation. 
It should be based on the ability to provide a comprehensive freight delivery service from producers to consumers including so-called final preparation of goods before transportation. In other words, there should be a service with added value (packing, sorting, accumulating cargo batches).
Forwarding is also a business linked to cargo transportation. RZD leaves open the possibility of launching its own forwarding companies. They could occupy a worthy place in the market. It has nothing to do with accusations that RZD seeks to monopolise another market. The company simply wants to enter this market and compete there with other players. The targets are similar to those of any other company: RZD must compensate for the money invested by the owner (in this case – the Russian Federation), and increase the value of the property given to railwaymen.   
Let’s not specify what changes were sparked in the Russian economy by the global crisis. It is not an easy topic. Even now, experts have no single opinion on what its real underlying causes were, and what mechanisms could relieve the global economy from the crisis with minimal losses. The situation reminds of a doctor who is not sure about his diagnosis, which is why he is unable to prescribe an efficient medicine to cure the disease. 
Consequently, there appears the question: what is the most efficient way for transporters to integrate into the global market. Thus, they have to be guided by common sense and focus on the fact that railway transport is a part of the real sector of the economy. And its fulfillment has nothing to do with the notorious derivatives – instruments, the prices of which are based on the parameters of another.
Railway transport is a basic service. This premise is the foundation of railway transport development strategy.
Russian Railways have enough property, the company has a network of terminals, which were historically based around small containers. Nowadays, they are not as efficient as sea containers. Meanwhile, there is a foundation for the logistics infrastructure of the Russian railways. Their network covers almost all the territory of the RF, includes all key zones where cargo flows run, and has an outlet to the domestic as well as foreign strategic market. 
That is why railway logistics is a network-based project. It concerns the system of block trains running between the most important centres of goods production. Such a system is to be joined with the railway logistics of neighbouring states. This gives additional stimuli for the development of a Russian railway logistics network and the upgrading of its resources so they meet international standards. Common interests with other players on the transport services market in this sector can also attract clients to railway transport. 
RZD plans to become not only the largest transport company but one of the leading international logistics companies. 
An example of the company’s ability to solve logistical tasks is the organisation of the work of container trains. In particular, the delivery of car components to the car-making plant of Volkswagen AG in Kaluga, in cooperation with Deutsche Bahn. Volkswagen AG considers the services of the railway company as a high-quality service comparable to those found in Europe.
After the in-depth study of international and Russian experience of the logistics organisation, the company’s specialists determined the strategic directions for RZD’s logistics business development. 
Among them is the formation of infrastructure to create a system of modern terminal and logistics complexes throughout the Russian railway network, the construction and optimisation of the existing terminal and warehousing assets of RZD, and the development of the terminal operation business. 
Finally, an additional interface with consumers of transport services should be created for RZD’s entrance into the complex client-oriented logistic services market. They can have new elements – retail (shop-warehouse) and industrial services (a service accompanying transportation).
To achieve this, the plan is to implement an advanced kind of freight arrangement or, in other words, to create multi-modal terminal and logistic centres along the entire Russian railway network. At first, it should be launched in the large transport junctions with the freight flows influencing the structure of the railway throughput and distributing the loading on the transport network adjacent to these junctions.

A network of terminal and logistics centres
In April 2009, a centre for terminal development was launched by RZD administrative staff. Nowadays, its responsibility is to organise the preparation of projects to create and develop RZD’s terminal and logistics complexes, to control the realisation of these projects, as well as to develop and carry out a single, unified policy in this sector.
A prospective network of terminal and logistics centres (TLC) is closely connected with the system of regular container trains working on schedule, which reduces delivery time and sees batches of goods delivered following the “in time” principle. In future, the basic network of regular container routes is to cover all key transport railway junctions.
It is supposed to use a unified technology of freight handling, to create a single tariff policy as well as a single information space.
The unprecedented scaled programme envisages:
• construction of over 50 large TLCs, including off-dock terminals in the Far East, and in the Baltic and the Azov – the Black Sea regions;
• complex reconstruction of approximately 60 large goods yards;
• modernisation of lifting transport facilities at about 400 goods yards;
• reconstruction of the railway complex at the approaches to terminals and transport junctions.
One of the most remarkable projects is being carried out already. It is the project to build TLC “Belyi Rast” in the Moscow region. A strategic partner of RZD, Deutsche Bahn AG is taking part in the development of the project. It is the first object we would like to launch to create the system of off-dock terminals located outside major cities and equipped with a developed access system including railway and an outlet to the Moscow ring road. Companies from other countries are following the project. For example, representatives from Finnish Railways showed their interest in it.  
The TLC will be located on a plot of land measuring over 100 hectares. There will be a container terminal with an annual capacity of 290,000 TEU, a universal terminal to handle industrial cargoes, a universal warehousing complex, a centre for cargo customs registration, as well as business administration and educational centres.
The specialists at the centre for terminals development and DB International GmbH made the feasibility study of the TLC project and commercial offers to potential investors.
Naturally, the project is not cheap. The estimated cost is RUR 20 billion and there are no comparable projects in Russia. According to preliminary calculations, the pay-back period is 3-4 years. Despite the crisis, the project is attractive for investors. 
Practice shows that in Russia, projects to create large modern TLCs without railway approaches have serious problems because of the irregular deliveries of large consignments. And their work is very complicated because of traffic jams on the roads. Thus, TLC construction projects in which RZD participates have more advantages.
Among other prospective infrastructure projects being developed there are the construction of a dry port in the Leningrad region near the Shushary railway station, and the creation of Doskino logistics centre in the Nizhny Novgorod region. These projects are also being used to develop the model, which will be later used for creation of other TLCs. The main thing is to work out the schemes of cooperation with major consignors.
I would like to mention that it is not only railwaymen and investors but also the RF authorities that are interested in the construction of new TLCs. It is supported by the federal government.
They create additional jobs and stimulate the development of the economy in the regions, making them more attractive for investors to launch new manufacturing projects.
TLC network development is impossible without partnerships with operators. Nowadays, Freight One and TransContainer work successfully in the market. In 2010, Freight Two is expected to appear.
It is considered that only private capital is efficient and everything created by the state will bring little profit. Why does state capital account for half of asset turnover in the USA? Why isn’t there a country in Europe where the share of state money is less than 37%? Who uses such capital inefficiently? Unfortunately, the share of the state in the economy in Russia fell to 18%.  
An important target of RZD is the creation of a 3PL logistics provider in the structure of the holding company. In other words, the company will provide logistics services. The provider of the service is the link between the producer and the consumer. 3PL provider offers a full range of services to move the product along the supply chain. In fact, he manages logistics chains as an outsourcer. 
The functions of 3PL providers are organisation of transportation, stock management as well as registration, storage, and goods services, preparation of documentation and delivery to the final consumer.  A client purchases a full package of the services he needs. 
The available resource base of RZD and its subsidiaries is supposed to be used efficiently to form such services. It means that we are going to launch a new business with high added value created due to advanced logistics technologies.

International products
Naturally, the main business of RZD is the provision of transport services – railway transportation. That is why a wide range of transport services divided according to level of quality, delivery time, price, and other criteria must be implemented in the market. Among them, there must be a line of products oriented at servicing transport corridors. 
The company is going to strengthen the role of RZD along the Eurasian corridor, where the main goods flow to the world market is focused. In particular, in the “Transsib in 7 Days” project. To carry it out, the company plans to improve the technology of transportation, including transit.
“Transsib in 7 Days” is becoming the business card of Russian railways. It is an innovative transport product which will deliver freight from the Far East ports to the western border of Russia in a week in 2012. And then there is the opportunity to transport it to Germany in a similar period of time.
When discussing new products with railwaymen from other states, RZD wants to understand which railways can participate in the existing container transportation system. Naturally, we focus on the largest freight flows. These plans envisage new rolling stock supplies, infrastructure capacity improvement, advanced IT implementation, and adaptation of Russian railway technologies to international standards.
One of the most significant programmes to strengthen international cooperation in the railway sector is the concession of the Armenian railways.
There are projects connected with the construction of railways in Mongolia, railway transportation development in Central Asia on the route to Kazakhstan and China. We are analysing the project of a railway line to be built along the North-South international transport corridor. 
We should not forget about the East-West corridor providing cargo delivery from the ocean coast to the Baltic ports. Throughput on the line may exceed 25 million tons. The prospects of launching railway-ferry lines and railways with a 1520 mm wide gauge to Bratislava and Vienna are being discussed.  
All these projects may provide the infrastructure to offer a new level of transport and logistics services to RZD clients. Many countries are interested in the wide gauge on their territory. It is considered to be the basis for intermodal service. In this case, the solution reduces the expenses of consignors, because any cargo handling means additional expenses. I will give just one example: they get $500 in Poland for “re-writing” one set of transport documents. Railway logistics will make such middle men tighten their belts.

Access to RF sea ports 
RZD is paying a lot of attention to the development of railway access to the ports of Russia.
In fact, close interaction between different transport modes is envisaged in the framework of these projects. Initially, it should be the interaction of railway and sea transport. An up-to-date sea port in the RF cannot exist without railway infrastructure. For RZD, it is an ally in their fight for cargo.
In 2009, the cargo transportation volume to Russia ports amounted to 199.1 million tons, a rise of 4.1% year-on-year. 
To tackle transporting the prospective volumes via distant approaches to ports in the Russian north-west, RZD fulfilled a significant amount of work to construct the second track, to electrify, and to prolong receiving and dispatching tracks at the limiting areas.
Large investments are being made into the development of the railway approaches to the ports of Ust-Luga, Primorsk, Vysotsk, Murmansk and Kaliningrad. To make its logistics efficient, the company and its subsidiaries have become shareholders in the sea ports. Unfortunately, such  an opportunity was missed in the Far Eastern region.
Nowadays, it is difficult to agree on a coordinated tariff policy with Far Eastern stevedoring companies. Nevertheless, RZD has invested RUR 20 billion into railway accesses to the Far Eastern ports in the past three years.
As a result, the cargo flow to the ports of Vladivostok, Nakhodka, and Vostochny increased by 20% compared with the Soviet period. If such investments had not been made, continual traffic jams would have developed and enterprises in the Far Eastern region would have idled.
Nowadays, we are analysing the feasibility of launching managing companies in the largest ports to coordinate the investment policy and actions of all the participants in the supply chain. This will be based on a single traffic control service monitoring freight flows across all transport modes.

Joint projects with other market players
We have joined in efforts to negotiate the issues of normative and legislative regulation of technical and technological problems occurring at the interaction of railway and sea transport (adherence to the agreed transportation terms and measures of mutual responsibility for breaking them, development of the law on transit). 
RZD has accumulated significant experience of working with shipping companies in the Far East – namely the Far Eastern Shipping Company.
The company is also making a more efficient model of interaction with Customs based on e-document turnover. A potentially important instrument of the company’s influence on the formation of a competitive and economically efficient through rate is the establishment of joint ventures with sea transporters and forwarding companies. 
To develop multimodal logistics chains for cargo delivery to consumers, mixed railway and ferry transportation is being developed. In 2007, the Ust-Luga – Baltiysk (Russia) – Sassnitz/Mukran (Germany) ferry line was opened. It is serviced by the “Vilnius” and “Baltiysk” ferries.
A special Russian-German council for the combined railway-ferry line Ust-Luga – Baltiysk – Sassnitz was created to solve the issues of ferry transportation development on this route. After the decision on Russia’s joining of the OTIF (the Intergovernmental Organisation for International Carriage by Rail) and the COTIF (Convention concerning International Carriage by Rail) was made, it became possible to use the CIM/SMGS universal consignment note for cargo transportation on the route.
The issue of regular direct railway-ferry communication between the ports of Kavkaz (Krasnodar region, Russia) and Samsun (Turkey) is being analysed. Black Sea Ferries Ltd, a subsidiary of RZD, actively participated in its launch. This company provides transport services on the line Kavkaz – Poti.

Staff training and marketing
As you see, the company has a host of important and complicated tasks that cannot be fulfilled without detailed market research and highly trained specialists. RZD needs experts in the logistics sector (management of terminals, supply chains, stores, creation of special IT systems) and to properly retrain – or train – managers at RZD and its subsidiaries. Taking into account the plans for RZD’s logistics business development and their scale, the demand for professional managers in the logistics sector will grow several times over in the near future.
The International Logistics and Supply Chains Management Centre was opened to help reach these strategic targets in St Petersburg. It must. The centre is unique because it is the first structural sub-unit launched at Russia’s oldest university and initiated and financed by two of the largest railway companies – RZD and Deutsche Bahn AG. The most important activities at the centre are the training programmes for Russian and German railway employees and freight transportation market research.
The project aims to create a link between the European Business School and St Petersburg State Railway University. An important feature of logistics projects is their high synergy. By the way, the domestic equipment manufacturing industry has the highest synergetic efficiency of all economic sectors (a synergy coefficient of 1.99). Transport is second (1.58). All projects concerning the logistics sector are synergies aimed at the creation of infrastructure for Russia’s economic development. 
Vladimir Yakunin, President of Russian Railways
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            [SECTION_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2010/3/2.jpg" border="1" alt=" " hspace="5" width="200" height="300" align="left" />The field of logistics was born on sea routes. People in the West became so accustomed to it that they didn’t immediately notice a new stage of logistics development, which was closely connected with railways. In Europe, railway companies actively interact with other transport modes and have turned into the largest logistics operators providing freight transportation door-to-door. There are similar processes in Russia.
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Global targets
Entering the logistics market, RZD plans to become the largest transport company and to turn into a leading international logistic operator. The role of logistics in the development of railway transport in modern Russia can hardly be overestimated. Russian railwaymen, as well as those in Europe, are paying more and more attention to logistics – a relatively new sector, however widely recognised it in the transport market.
This notion connects all players in the freight transportation market. Supply chains of goods transportation appear in production logistics, which step by step turns into the logistics of finished commodities sale and supplies of raw materials, with which transport logistics is closely connected. This forms the infrastructure of goods flows – both internally and externally.
Undoubtedly, logistics has become a link for trade relations between countries. On the one hand, different transport modes continue to compete to carry global cargo flows, on the other hand, they have to interact with each other more and more frequently. The demand for mutually beneficial cooperation between transport market players is growing. The state is interested in this too. In recent years, a lot was done to improve junctions on the Russian transport system, which were sometimes proving bottle-necks for cargo flows. 
In turn, this creates the conditions for the extension of national transport systems’ international integration. Nowadays, they interact more and more closely. Their interaction is so close that transport problems are discussed at intergovernmental level in the context of developing foreign trade. The increase in international cargo transportation volumes links the questions of transportation and service quality improvement. Meanwhile, it is impossible to increase throughput without implementing innovations and modern technologies. 

Logistics in Russia         
A well-known aphorism: the tragedy of age is not ageing but continuing to feel young. It is a characteristic feature of Russian railways – one of the oldest transport systems and businesses in the country. That is why Russian Railways was among the first companies which felt the need to develop integration and new forms of cooperation to realise the political tasks the RF Government gave to transporters. 
Among the aims were the removal of barriers preventing regular freight flow, orientation towards the free market and free trade. This is an objective requirement for transporters as well as for the Russian economy as a whole.
The peculiarity of railway companies is that they have to take into consideration the interests of their partners and neighbours. When a client chooses the route for freight transportation, his prime interest is the through tariff. And its constituents must be closely connected with each other. If someone wants to get unjustified benefit, he will put his partners at a disadvantage. However, in this case, underwater reefs lurk beneath the surface on the through transportation route, and those striving to get rich at their neighbours’ expense will fall foul of them. The business will not be a success. Consequently, neither participant of the transport chain will profit. 
The transport and logistic services market had been developing rather dynamically until the middle of 2008. In that period the economy of the Russian Federation had been keeping pace with the world economy. As in other countries, in Russia the demand for servicing cargo flows – both internal and foreign trade ones – had increased. Everyone had been earning money in this sector of the market.
The global financial crisis, which later turned into the economic recession, changed a lot in the transport and logistic services market. Under those conditions, the value by volume of the market reduced. According to analysts, it fell from $50 billion to the current level of $37 billion. It is not much for such a country as Russia. And the potential not being realised in the transport and logistic services market is colossal. 
To structure the market and to make use of the fruits it may give, one should understand: the structure of the Russian transport and logistic market significantly differs from the global one due to the low level of development in logistics. Its share in the RF is approximately 17%, while in developed countries it amounts to 52% on average. 
Thus, one can easily estimate the value of the pent-up demand for logistics services. Meanwhile, freight transportation remains the dominating segment in the market – its share in the total volume of services exceeds 80%.
The crisis is not everlasting. Most analysts forecast that the volume of cargo transportation will increase significantly in 2015. Considering all the circumstances, the future of the Russian transport and logistic services market is rather promising.
Meanwhile, relevant infrastructure is needed to form high-tech logistics services. It must be accessible for clients in the transport market. Unfortunately, there are few logistics centres in Russia whose technical characteristics and service levels meet modern requirements.

Warehouses from A to D
He who does not feel a favourable wind does not know the direction in which he is moving. RZD knows what to strive for.
A and B class terminals prevail in the warehousing real estate market in the countries where logistics are well developed; in Russia there are mainly C and D class terminals. Their share in Moscow and St Petersburg is 60-70%, while in other Russian regions it amounts to 80-90%. The logistics business in the RF has not reached multi-modality level yet. And the warehouses announced by their owners to be of C or D class do not sometimes meet the international terminal and warehousing infrastructure norms. 
Today’s terminals and warehousing terminals of A and B class must be equipped with modern loading and lifting-transport facilities as well as modern engineering networks, reserve power supplies, cargo storage mode registering systems, fiber-optic communications, advanced information systems, efficient room planning and a professional security service. These are the services of such complexes, for which there is a demand.
The crisis provoked a decline in investment into the construction of up-to-date terminal and warehousing capacities. However, the world financial and economic crisis should not stop realisation of plans for long-term infrastructure development. Kleanthes, a Greek Stoic philosopher, said “Fate guides the willing, but drags the unwilling.”
Without development of an advanced logistics infrastructure, Russian companies will lag behind foreign ones in the global transport market once the crisis is over. Logistics development is one of RZD’s strategic directions in terms of diversification. A significant synergy exists between logistics and the main business of the company – railway cargo transportation. 
It should be based on the ability to provide a comprehensive freight delivery service from producers to consumers including so-called final preparation of goods before transportation. In other words, there should be a service with added value (packing, sorting, accumulating cargo batches).
Forwarding is also a business linked to cargo transportation. RZD leaves open the possibility of launching its own forwarding companies. They could occupy a worthy place in the market. It has nothing to do with accusations that RZD seeks to monopolise another market. The company simply wants to enter this market and compete there with other players. The targets are similar to those of any other company: RZD must compensate for the money invested by the owner (in this case – the Russian Federation), and increase the value of the property given to railwaymen.   
Let’s not specify what changes were sparked in the Russian economy by the global crisis. It is not an easy topic. Even now, experts have no single opinion on what its real underlying causes were, and what mechanisms could relieve the global economy from the crisis with minimal losses. The situation reminds of a doctor who is not sure about his diagnosis, which is why he is unable to prescribe an efficient medicine to cure the disease. 
Consequently, there appears the question: what is the most efficient way for transporters to integrate into the global market. Thus, they have to be guided by common sense and focus on the fact that railway transport is a part of the real sector of the economy. And its fulfillment has nothing to do with the notorious derivatives – instruments, the prices of which are based on the parameters of another.
Railway transport is a basic service. This premise is the foundation of railway transport development strategy.
Russian Railways have enough property, the company has a network of terminals, which were historically based around small containers. Nowadays, they are not as efficient as sea containers. Meanwhile, there is a foundation for the logistics infrastructure of the Russian railways. Their network covers almost all the territory of the RF, includes all key zones where cargo flows run, and has an outlet to the domestic as well as foreign strategic market. 
That is why railway logistics is a network-based project. It concerns the system of block trains running between the most important centres of goods production. Such a system is to be joined with the railway logistics of neighbouring states. This gives additional stimuli for the development of a Russian railway logistics network and the upgrading of its resources so they meet international standards. Common interests with other players on the transport services market in this sector can also attract clients to railway transport. 
RZD plans to become not only the largest transport company but one of the leading international logistics companies. 
An example of the company’s ability to solve logistical tasks is the organisation of the work of container trains. In particular, the delivery of car components to the car-making plant of Volkswagen AG in Kaluga, in cooperation with Deutsche Bahn. Volkswagen AG considers the services of the railway company as a high-quality service comparable to those found in Europe.
After the in-depth study of international and Russian experience of the logistics organisation, the company’s specialists determined the strategic directions for RZD’s logistics business development. 
Among them is the formation of infrastructure to create a system of modern terminal and logistics complexes throughout the Russian railway network, the construction and optimisation of the existing terminal and warehousing assets of RZD, and the development of the terminal operation business. 
Finally, an additional interface with consumers of transport services should be created for RZD’s entrance into the complex client-oriented logistic services market. They can have new elements – retail (shop-warehouse) and industrial services (a service accompanying transportation).
To achieve this, the plan is to implement an advanced kind of freight arrangement or, in other words, to create multi-modal terminal and logistic centres along the entire Russian railway network. At first, it should be launched in the large transport junctions with the freight flows influencing the structure of the railway throughput and distributing the loading on the transport network adjacent to these junctions.

A network of terminal and logistics centres
In April 2009, a centre for terminal development was launched by RZD administrative staff. Nowadays, its responsibility is to organise the preparation of projects to create and develop RZD’s terminal and logistics complexes, to control the realisation of these projects, as well as to develop and carry out a single, unified policy in this sector.
A prospective network of terminal and logistics centres (TLC) is closely connected with the system of regular container trains working on schedule, which reduces delivery time and sees batches of goods delivered following the “in time” principle. In future, the basic network of regular container routes is to cover all key transport railway junctions.
It is supposed to use a unified technology of freight handling, to create a single tariff policy as well as a single information space.
The unprecedented scaled programme envisages:
• construction of over 50 large TLCs, including off-dock terminals in the Far East, and in the Baltic and the Azov – the Black Sea regions;
• complex reconstruction of approximately 60 large goods yards;
• modernisation of lifting transport facilities at about 400 goods yards;
• reconstruction of the railway complex at the approaches to terminals and transport junctions.
One of the most remarkable projects is being carried out already. It is the project to build TLC “Belyi Rast” in the Moscow region. A strategic partner of RZD, Deutsche Bahn AG is taking part in the development of the project. It is the first object we would like to launch to create the system of off-dock terminals located outside major cities and equipped with a developed access system including railway and an outlet to the Moscow ring road. Companies from other countries are following the project. For example, representatives from Finnish Railways showed their interest in it.  
The TLC will be located on a plot of land measuring over 100 hectares. There will be a container terminal with an annual capacity of 290,000 TEU, a universal terminal to handle industrial cargoes, a universal warehousing complex, a centre for cargo customs registration, as well as business administration and educational centres.
The specialists at the centre for terminals development and DB International GmbH made the feasibility study of the TLC project and commercial offers to potential investors.
Naturally, the project is not cheap. The estimated cost is RUR 20 billion and there are no comparable projects in Russia. According to preliminary calculations, the pay-back period is 3-4 years. Despite the crisis, the project is attractive for investors. 
Practice shows that in Russia, projects to create large modern TLCs without railway approaches have serious problems because of the irregular deliveries of large consignments. And their work is very complicated because of traffic jams on the roads. Thus, TLC construction projects in which RZD participates have more advantages.
Among other prospective infrastructure projects being developed there are the construction of a dry port in the Leningrad region near the Shushary railway station, and the creation of Doskino logistics centre in the Nizhny Novgorod region. These projects are also being used to develop the model, which will be later used for creation of other TLCs. The main thing is to work out the schemes of cooperation with major consignors.
I would like to mention that it is not only railwaymen and investors but also the RF authorities that are interested in the construction of new TLCs. It is supported by the federal government.
They create additional jobs and stimulate the development of the economy in the regions, making them more attractive for investors to launch new manufacturing projects.
TLC network development is impossible without partnerships with operators. Nowadays, Freight One and TransContainer work successfully in the market. In 2010, Freight Two is expected to appear.
It is considered that only private capital is efficient and everything created by the state will bring little profit. Why does state capital account for half of asset turnover in the USA? Why isn’t there a country in Europe where the share of state money is less than 37%? Who uses such capital inefficiently? Unfortunately, the share of the state in the economy in Russia fell to 18%.  
An important target of RZD is the creation of a 3PL logistics provider in the structure of the holding company. In other words, the company will provide logistics services. The provider of the service is the link between the producer and the consumer. 3PL provider offers a full range of services to move the product along the supply chain. In fact, he manages logistics chains as an outsourcer. 
The functions of 3PL providers are organisation of transportation, stock management as well as registration, storage, and goods services, preparation of documentation and delivery to the final consumer.  A client purchases a full package of the services he needs. 
The available resource base of RZD and its subsidiaries is supposed to be used efficiently to form such services. It means that we are going to launch a new business with high added value created due to advanced logistics technologies.

International products
Naturally, the main business of RZD is the provision of transport services – railway transportation. That is why a wide range of transport services divided according to level of quality, delivery time, price, and other criteria must be implemented in the market. Among them, there must be a line of products oriented at servicing transport corridors. 
The company is going to strengthen the role of RZD along the Eurasian corridor, where the main goods flow to the world market is focused. In particular, in the “Transsib in 7 Days” project. To carry it out, the company plans to improve the technology of transportation, including transit.
“Transsib in 7 Days” is becoming the business card of Russian railways. It is an innovative transport product which will deliver freight from the Far East ports to the western border of Russia in a week in 2012. And then there is the opportunity to transport it to Germany in a similar period of time.
When discussing new products with railwaymen from other states, RZD wants to understand which railways can participate in the existing container transportation system. Naturally, we focus on the largest freight flows. These plans envisage new rolling stock supplies, infrastructure capacity improvement, advanced IT implementation, and adaptation of Russian railway technologies to international standards.
One of the most significant programmes to strengthen international cooperation in the railway sector is the concession of the Armenian railways.
There are projects connected with the construction of railways in Mongolia, railway transportation development in Central Asia on the route to Kazakhstan and China. We are analysing the project of a railway line to be built along the North-South international transport corridor. 
We should not forget about the East-West corridor providing cargo delivery from the ocean coast to the Baltic ports. Throughput on the line may exceed 25 million tons. The prospects of launching railway-ferry lines and railways with a 1520 mm wide gauge to Bratislava and Vienna are being discussed.  
All these projects may provide the infrastructure to offer a new level of transport and logistics services to RZD clients. Many countries are interested in the wide gauge on their territory. It is considered to be the basis for intermodal service. In this case, the solution reduces the expenses of consignors, because any cargo handling means additional expenses. I will give just one example: they get $500 in Poland for “re-writing” one set of transport documents. Railway logistics will make such middle men tighten their belts.

Access to RF sea ports 
RZD is paying a lot of attention to the development of railway access to the ports of Russia.
In fact, close interaction between different transport modes is envisaged in the framework of these projects. Initially, it should be the interaction of railway and sea transport. An up-to-date sea port in the RF cannot exist without railway infrastructure. For RZD, it is an ally in their fight for cargo.
In 2009, the cargo transportation volume to Russia ports amounted to 199.1 million tons, a rise of 4.1% year-on-year. 
To tackle transporting the prospective volumes via distant approaches to ports in the Russian north-west, RZD fulfilled a significant amount of work to construct the second track, to electrify, and to prolong receiving and dispatching tracks at the limiting areas.
Large investments are being made into the development of the railway approaches to the ports of Ust-Luga, Primorsk, Vysotsk, Murmansk and Kaliningrad. To make its logistics efficient, the company and its subsidiaries have become shareholders in the sea ports. Unfortunately, such  an opportunity was missed in the Far Eastern region.
Nowadays, it is difficult to agree on a coordinated tariff policy with Far Eastern stevedoring companies. Nevertheless, RZD has invested RUR 20 billion into railway accesses to the Far Eastern ports in the past three years.
As a result, the cargo flow to the ports of Vladivostok, Nakhodka, and Vostochny increased by 20% compared with the Soviet period. If such investments had not been made, continual traffic jams would have developed and enterprises in the Far Eastern region would have idled.
Nowadays, we are analysing the feasibility of launching managing companies in the largest ports to coordinate the investment policy and actions of all the participants in the supply chain. This will be based on a single traffic control service monitoring freight flows across all transport modes.

Joint projects with other market players
We have joined in efforts to negotiate the issues of normative and legislative regulation of technical and technological problems occurring at the interaction of railway and sea transport (adherence to the agreed transportation terms and measures of mutual responsibility for breaking them, development of the law on transit). 
RZD has accumulated significant experience of working with shipping companies in the Far East – namely the Far Eastern Shipping Company.
The company is also making a more efficient model of interaction with Customs based on e-document turnover. A potentially important instrument of the company’s influence on the formation of a competitive and economically efficient through rate is the establishment of joint ventures with sea transporters and forwarding companies. 
To develop multimodal logistics chains for cargo delivery to consumers, mixed railway and ferry transportation is being developed. In 2007, the Ust-Luga – Baltiysk (Russia) – Sassnitz/Mukran (Germany) ferry line was opened. It is serviced by the “Vilnius” and “Baltiysk” ferries.
A special Russian-German council for the combined railway-ferry line Ust-Luga – Baltiysk – Sassnitz was created to solve the issues of ferry transportation development on this route. After the decision on Russia’s joining of the OTIF (the Intergovernmental Organisation for International Carriage by Rail) and the COTIF (Convention concerning International Carriage by Rail) was made, it became possible to use the CIM/SMGS universal consignment note for cargo transportation on the route.
The issue of regular direct railway-ferry communication between the ports of Kavkaz (Krasnodar region, Russia) and Samsun (Turkey) is being analysed. Black Sea Ferries Ltd, a subsidiary of RZD, actively participated in its launch. This company provides transport services on the line Kavkaz – Poti.

Staff training and marketing
As you see, the company has a host of important and complicated tasks that cannot be fulfilled without detailed market research and highly trained specialists. RZD needs experts in the logistics sector (management of terminals, supply chains, stores, creation of special IT systems) and to properly retrain – or train – managers at RZD and its subsidiaries. Taking into account the plans for RZD’s logistics business development and their scale, the demand for professional managers in the logistics sector will grow several times over in the near future.
The International Logistics and Supply Chains Management Centre was opened to help reach these strategic targets in St Petersburg. It must. The centre is unique because it is the first structural sub-unit launched at Russia’s oldest university and initiated and financed by two of the largest railway companies – RZD and Deutsche Bahn AG. The most important activities at the centre are the training programmes for Russian and German railway employees and freight transportation market research.
The project aims to create a link between the European Business School and St Petersburg State Railway University. An important feature of logistics projects is their high synergy. By the way, the domestic equipment manufacturing industry has the highest synergetic efficiency of all economic sectors (a synergy coefficient of 1.99). Transport is second (1.58). All projects concerning the logistics sector are synergies aimed at the creation of infrastructure for Russia’s economic development. 
Vladimir Yakunin, President of Russian Railways
    [~DETAIL_TEXT] => 
Global targets
Entering the logistics market, RZD plans to become the largest transport company and to turn into a leading international logistic operator. The role of logistics in the development of railway transport in modern Russia can hardly be overestimated. Russian railwaymen, as well as those in Europe, are paying more and more attention to logistics – a relatively new sector, however widely recognised it in the transport market.
This notion connects all players in the freight transportation market. Supply chains of goods transportation appear in production logistics, which step by step turns into the logistics of finished commodities sale and supplies of raw materials, with which transport logistics is closely connected. This forms the infrastructure of goods flows – both internally and externally.
Undoubtedly, logistics has become a link for trade relations between countries. On the one hand, different transport modes continue to compete to carry global cargo flows, on the other hand, they have to interact with each other more and more frequently. The demand for mutually beneficial cooperation between transport market players is growing. The state is interested in this too. In recent years, a lot was done to improve junctions on the Russian transport system, which were sometimes proving bottle-necks for cargo flows. 
In turn, this creates the conditions for the extension of national transport systems’ international integration. Nowadays, they interact more and more closely. Their interaction is so close that transport problems are discussed at intergovernmental level in the context of developing foreign trade. The increase in international cargo transportation volumes links the questions of transportation and service quality improvement. Meanwhile, it is impossible to increase throughput without implementing innovations and modern technologies. 

Logistics in Russia         
A well-known aphorism: the tragedy of age is not ageing but continuing to feel young. It is a characteristic feature of Russian railways – one of the oldest transport systems and businesses in the country. That is why Russian Railways was among the first companies which felt the need to develop integration and new forms of cooperation to realise the political tasks the RF Government gave to transporters. 
Among the aims were the removal of barriers preventing regular freight flow, orientation towards the free market and free trade. This is an objective requirement for transporters as well as for the Russian economy as a whole.
The peculiarity of railway companies is that they have to take into consideration the interests of their partners and neighbours. When a client chooses the route for freight transportation, his prime interest is the through tariff. And its constituents must be closely connected with each other. If someone wants to get unjustified benefit, he will put his partners at a disadvantage. However, in this case, underwater reefs lurk beneath the surface on the through transportation route, and those striving to get rich at their neighbours’ expense will fall foul of them. The business will not be a success. Consequently, neither participant of the transport chain will profit. 
The transport and logistic services market had been developing rather dynamically until the middle of 2008. In that period the economy of the Russian Federation had been keeping pace with the world economy. As in other countries, in Russia the demand for servicing cargo flows – both internal and foreign trade ones – had increased. Everyone had been earning money in this sector of the market.
The global financial crisis, which later turned into the economic recession, changed a lot in the transport and logistic services market. Under those conditions, the value by volume of the market reduced. According to analysts, it fell from $50 billion to the current level of $37 billion. It is not much for such a country as Russia. And the potential not being realised in the transport and logistic services market is colossal. 
To structure the market and to make use of the fruits it may give, one should understand: the structure of the Russian transport and logistic market significantly differs from the global one due to the low level of development in logistics. Its share in the RF is approximately 17%, while in developed countries it amounts to 52% on average. 
Thus, one can easily estimate the value of the pent-up demand for logistics services. Meanwhile, freight transportation remains the dominating segment in the market – its share in the total volume of services exceeds 80%.
The crisis is not everlasting. Most analysts forecast that the volume of cargo transportation will increase significantly in 2015. Considering all the circumstances, the future of the Russian transport and logistic services market is rather promising.
Meanwhile, relevant infrastructure is needed to form high-tech logistics services. It must be accessible for clients in the transport market. Unfortunately, there are few logistics centres in Russia whose technical characteristics and service levels meet modern requirements.

Warehouses from A to D
He who does not feel a favourable wind does not know the direction in which he is moving. RZD knows what to strive for.
A and B class terminals prevail in the warehousing real estate market in the countries where logistics are well developed; in Russia there are mainly C and D class terminals. Their share in Moscow and St Petersburg is 60-70%, while in other Russian regions it amounts to 80-90%. The logistics business in the RF has not reached multi-modality level yet. And the warehouses announced by their owners to be of C or D class do not sometimes meet the international terminal and warehousing infrastructure norms. 
Today’s terminals and warehousing terminals of A and B class must be equipped with modern loading and lifting-transport facilities as well as modern engineering networks, reserve power supplies, cargo storage mode registering systems, fiber-optic communications, advanced information systems, efficient room planning and a professional security service. These are the services of such complexes, for which there is a demand.
The crisis provoked a decline in investment into the construction of up-to-date terminal and warehousing capacities. However, the world financial and economic crisis should not stop realisation of plans for long-term infrastructure development. Kleanthes, a Greek Stoic philosopher, said “Fate guides the willing, but drags the unwilling.”
Without development of an advanced logistics infrastructure, Russian companies will lag behind foreign ones in the global transport market once the crisis is over. Logistics development is one of RZD’s strategic directions in terms of diversification. A significant synergy exists between logistics and the main business of the company – railway cargo transportation. 
It should be based on the ability to provide a comprehensive freight delivery service from producers to consumers including so-called final preparation of goods before transportation. In other words, there should be a service with added value (packing, sorting, accumulating cargo batches).
Forwarding is also a business linked to cargo transportation. RZD leaves open the possibility of launching its own forwarding companies. They could occupy a worthy place in the market. It has nothing to do with accusations that RZD seeks to monopolise another market. The company simply wants to enter this market and compete there with other players. The targets are similar to those of any other company: RZD must compensate for the money invested by the owner (in this case – the Russian Federation), and increase the value of the property given to railwaymen.   
Let’s not specify what changes were sparked in the Russian economy by the global crisis. It is not an easy topic. Even now, experts have no single opinion on what its real underlying causes were, and what mechanisms could relieve the global economy from the crisis with minimal losses. The situation reminds of a doctor who is not sure about his diagnosis, which is why he is unable to prescribe an efficient medicine to cure the disease. 
Consequently, there appears the question: what is the most efficient way for transporters to integrate into the global market. Thus, they have to be guided by common sense and focus on the fact that railway transport is a part of the real sector of the economy. And its fulfillment has nothing to do with the notorious derivatives – instruments, the prices of which are based on the parameters of another.
Railway transport is a basic service. This premise is the foundation of railway transport development strategy.
Russian Railways have enough property, the company has a network of terminals, which were historically based around small containers. Nowadays, they are not as efficient as sea containers. Meanwhile, there is a foundation for the logistics infrastructure of the Russian railways. Their network covers almost all the territory of the RF, includes all key zones where cargo flows run, and has an outlet to the domestic as well as foreign strategic market. 
That is why railway logistics is a network-based project. It concerns the system of block trains running between the most important centres of goods production. Such a system is to be joined with the railway logistics of neighbouring states. This gives additional stimuli for the development of a Russian railway logistics network and the upgrading of its resources so they meet international standards. Common interests with other players on the transport services market in this sector can also attract clients to railway transport. 
RZD plans to become not only the largest transport company but one of the leading international logistics companies. 
An example of the company’s ability to solve logistical tasks is the organisation of the work of container trains. In particular, the delivery of car components to the car-making plant of Volkswagen AG in Kaluga, in cooperation with Deutsche Bahn. Volkswagen AG considers the services of the railway company as a high-quality service comparable to those found in Europe.
After the in-depth study of international and Russian experience of the logistics organisation, the company’s specialists determined the strategic directions for RZD’s logistics business development. 
Among them is the formation of infrastructure to create a system of modern terminal and logistics complexes throughout the Russian railway network, the construction and optimisation of the existing terminal and warehousing assets of RZD, and the development of the terminal operation business. 
Finally, an additional interface with consumers of transport services should be created for RZD’s entrance into the complex client-oriented logistic services market. They can have new elements – retail (shop-warehouse) and industrial services (a service accompanying transportation).
To achieve this, the plan is to implement an advanced kind of freight arrangement or, in other words, to create multi-modal terminal and logistic centres along the entire Russian railway network. At first, it should be launched in the large transport junctions with the freight flows influencing the structure of the railway throughput and distributing the loading on the transport network adjacent to these junctions.

A network of terminal and logistics centres
In April 2009, a centre for terminal development was launched by RZD administrative staff. Nowadays, its responsibility is to organise the preparation of projects to create and develop RZD’s terminal and logistics complexes, to control the realisation of these projects, as well as to develop and carry out a single, unified policy in this sector.
A prospective network of terminal and logistics centres (TLC) is closely connected with the system of regular container trains working on schedule, which reduces delivery time and sees batches of goods delivered following the “in time” principle. In future, the basic network of regular container routes is to cover all key transport railway junctions.
It is supposed to use a unified technology of freight handling, to create a single tariff policy as well as a single information space.
The unprecedented scaled programme envisages:
• construction of over 50 large TLCs, including off-dock terminals in the Far East, and in the Baltic and the Azov – the Black Sea regions;
• complex reconstruction of approximately 60 large goods yards;
• modernisation of lifting transport facilities at about 400 goods yards;
• reconstruction of the railway complex at the approaches to terminals and transport junctions.
One of the most remarkable projects is being carried out already. It is the project to build TLC “Belyi Rast” in the Moscow region. A strategic partner of RZD, Deutsche Bahn AG is taking part in the development of the project. It is the first object we would like to launch to create the system of off-dock terminals located outside major cities and equipped with a developed access system including railway and an outlet to the Moscow ring road. Companies from other countries are following the project. For example, representatives from Finnish Railways showed their interest in it.  
The TLC will be located on a plot of land measuring over 100 hectares. There will be a container terminal with an annual capacity of 290,000 TEU, a universal terminal to handle industrial cargoes, a universal warehousing complex, a centre for cargo customs registration, as well as business administration and educational centres.
The specialists at the centre for terminals development and DB International GmbH made the feasibility study of the TLC project and commercial offers to potential investors.
Naturally, the project is not cheap. The estimated cost is RUR 20 billion and there are no comparable projects in Russia. According to preliminary calculations, the pay-back period is 3-4 years. Despite the crisis, the project is attractive for investors. 
Practice shows that in Russia, projects to create large modern TLCs without railway approaches have serious problems because of the irregular deliveries of large consignments. And their work is very complicated because of traffic jams on the roads. Thus, TLC construction projects in which RZD participates have more advantages.
Among other prospective infrastructure projects being developed there are the construction of a dry port in the Leningrad region near the Shushary railway station, and the creation of Doskino logistics centre in the Nizhny Novgorod region. These projects are also being used to develop the model, which will be later used for creation of other TLCs. The main thing is to work out the schemes of cooperation with major consignors.
I would like to mention that it is not only railwaymen and investors but also the RF authorities that are interested in the construction of new TLCs. It is supported by the federal government.
They create additional jobs and stimulate the development of the economy in the regions, making them more attractive for investors to launch new manufacturing projects.
TLC network development is impossible without partnerships with operators. Nowadays, Freight One and TransContainer work successfully in the market. In 2010, Freight Two is expected to appear.
It is considered that only private capital is efficient and everything created by the state will bring little profit. Why does state capital account for half of asset turnover in the USA? Why isn’t there a country in Europe where the share of state money is less than 37%? Who uses such capital inefficiently? Unfortunately, the share of the state in the economy in Russia fell to 18%.  
An important target of RZD is the creation of a 3PL logistics provider in the structure of the holding company. In other words, the company will provide logistics services. The provider of the service is the link between the producer and the consumer. 3PL provider offers a full range of services to move the product along the supply chain. In fact, he manages logistics chains as an outsourcer. 
The functions of 3PL providers are organisation of transportation, stock management as well as registration, storage, and goods services, preparation of documentation and delivery to the final consumer.  A client purchases a full package of the services he needs. 
The available resource base of RZD and its subsidiaries is supposed to be used efficiently to form such services. It means that we are going to launch a new business with high added value created due to advanced logistics technologies.

International products
Naturally, the main business of RZD is the provision of transport services – railway transportation. That is why a wide range of transport services divided according to level of quality, delivery time, price, and other criteria must be implemented in the market. Among them, there must be a line of products oriented at servicing transport corridors. 
The company is going to strengthen the role of RZD along the Eurasian corridor, where the main goods flow to the world market is focused. In particular, in the “Transsib in 7 Days” project. To carry it out, the company plans to improve the technology of transportation, including transit.
“Transsib in 7 Days” is becoming the business card of Russian railways. It is an innovative transport product which will deliver freight from the Far East ports to the western border of Russia in a week in 2012. And then there is the opportunity to transport it to Germany in a similar period of time.
When discussing new products with railwaymen from other states, RZD wants to understand which railways can participate in the existing container transportation system. Naturally, we focus on the largest freight flows. These plans envisage new rolling stock supplies, infrastructure capacity improvement, advanced IT implementation, and adaptation of Russian railway technologies to international standards.
One of the most significant programmes to strengthen international cooperation in the railway sector is the concession of the Armenian railways.
There are projects connected with the construction of railways in Mongolia, railway transportation development in Central Asia on the route to Kazakhstan and China. We are analysing the project of a railway line to be built along the North-South international transport corridor. 
We should not forget about the East-West corridor providing cargo delivery from the ocean coast to the Baltic ports. Throughput on the line may exceed 25 million tons. The prospects of launching railway-ferry lines and railways with a 1520 mm wide gauge to Bratislava and Vienna are being discussed.  
All these projects may provide the infrastructure to offer a new level of transport and logistics services to RZD clients. Many countries are interested in the wide gauge on their territory. It is considered to be the basis for intermodal service. In this case, the solution reduces the expenses of consignors, because any cargo handling means additional expenses. I will give just one example: they get $500 in Poland for “re-writing” one set of transport documents. Railway logistics will make such middle men tighten their belts.

Access to RF sea ports 
RZD is paying a lot of attention to the development of railway access to the ports of Russia.
In fact, close interaction between different transport modes is envisaged in the framework of these projects. Initially, it should be the interaction of railway and sea transport. An up-to-date sea port in the RF cannot exist without railway infrastructure. For RZD, it is an ally in their fight for cargo.
In 2009, the cargo transportation volume to Russia ports amounted to 199.1 million tons, a rise of 4.1% year-on-year. 
To tackle transporting the prospective volumes via distant approaches to ports in the Russian north-west, RZD fulfilled a significant amount of work to construct the second track, to electrify, and to prolong receiving and dispatching tracks at the limiting areas.
Large investments are being made into the development of the railway approaches to the ports of Ust-Luga, Primorsk, Vysotsk, Murmansk and Kaliningrad. To make its logistics efficient, the company and its subsidiaries have become shareholders in the sea ports. Unfortunately, such  an opportunity was missed in the Far Eastern region.
Nowadays, it is difficult to agree on a coordinated tariff policy with Far Eastern stevedoring companies. Nevertheless, RZD has invested RUR 20 billion into railway accesses to the Far Eastern ports in the past three years.
As a result, the cargo flow to the ports of Vladivostok, Nakhodka, and Vostochny increased by 20% compared with the Soviet period. If such investments had not been made, continual traffic jams would have developed and enterprises in the Far Eastern region would have idled.
Nowadays, we are analysing the feasibility of launching managing companies in the largest ports to coordinate the investment policy and actions of all the participants in the supply chain. This will be based on a single traffic control service monitoring freight flows across all transport modes.

Joint projects with other market players
We have joined in efforts to negotiate the issues of normative and legislative regulation of technical and technological problems occurring at the interaction of railway and sea transport (adherence to the agreed transportation terms and measures of mutual responsibility for breaking them, development of the law on transit). 
RZD has accumulated significant experience of working with shipping companies in the Far East – namely the Far Eastern Shipping Company.
The company is also making a more efficient model of interaction with Customs based on e-document turnover. A potentially important instrument of the company’s influence on the formation of a competitive and economically efficient through rate is the establishment of joint ventures with sea transporters and forwarding companies. 
To develop multimodal logistics chains for cargo delivery to consumers, mixed railway and ferry transportation is being developed. In 2007, the Ust-Luga – Baltiysk (Russia) – Sassnitz/Mukran (Germany) ferry line was opened. It is serviced by the “Vilnius” and “Baltiysk” ferries.
A special Russian-German council for the combined railway-ferry line Ust-Luga – Baltiysk – Sassnitz was created to solve the issues of ferry transportation development on this route. After the decision on Russia’s joining of the OTIF (the Intergovernmental Organisation for International Carriage by Rail) and the COTIF (Convention concerning International Carriage by Rail) was made, it became possible to use the CIM/SMGS universal consignment note for cargo transportation on the route.
The issue of regular direct railway-ferry communication between the ports of Kavkaz (Krasnodar region, Russia) and Samsun (Turkey) is being analysed. Black Sea Ferries Ltd, a subsidiary of RZD, actively participated in its launch. This company provides transport services on the line Kavkaz – Poti.

Staff training and marketing
As you see, the company has a host of important and complicated tasks that cannot be fulfilled without detailed market research and highly trained specialists. RZD needs experts in the logistics sector (management of terminals, supply chains, stores, creation of special IT systems) and to properly retrain – or train – managers at RZD and its subsidiaries. Taking into account the plans for RZD’s logistics business development and their scale, the demand for professional managers in the logistics sector will grow several times over in the near future.
The International Logistics and Supply Chains Management Centre was opened to help reach these strategic targets in St Petersburg. It must. The centre is unique because it is the first structural sub-unit launched at Russia’s oldest university and initiated and financed by two of the largest railway companies – RZD and Deutsche Bahn AG. The most important activities at the centre are the training programmes for Russian and German railway employees and freight transportation market research.
The project aims to create a link between the European Business School and St Petersburg State Railway University. An important feature of logistics projects is their high synergy. By the way, the domestic equipment manufacturing industry has the highest synergetic efficiency of all economic sectors (a synergy coefficient of 1.99). Transport is second (1.58). All projects concerning the logistics sector are synergies aimed at the creation of infrastructure for Russia’s economic development. 
Vladimir Yakunin, President of Russian Railways
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            [SECTION_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2010/3/2.jpg" border="1" alt=" " hspace="5" width="200" height="300" align="left" />The field of logistics was born on sea routes. People in the West became so accustomed to it that they didn’t immediately notice a new stage of logistics development, which was closely connected with railways. In Europe, railway companies actively interact with other transport modes and have turned into the largest logistics operators providing freight transportation door-to-door. There are similar processes in Russia.
            [ELEMENT_META_TITLE] => Synergy  of logistics
            [ELEMENT_META_KEYWORDS] => synergy  of logistics
            [ELEMENT_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2010/3/2.jpg" border="1" alt=" " hspace="5" width="200" height="300" align="left" />The field of logistics was born on sea routes. People in the West became so accustomed to it that they didn’t immediately notice a new stage of logistics development, which was closely connected with railways. In Europe, railway companies actively interact with other transport modes and have turned into the largest logistics operators providing freight transportation door-to-door. There are similar processes in Russia.
            [SECTION_PICTURE_FILE_ALT] => Synergy  of logistics
            [SECTION_PICTURE_FILE_TITLE] => Synergy  of logistics
            [SECTION_DETAIL_PICTURE_FILE_ALT] => Synergy  of logistics
            [SECTION_DETAIL_PICTURE_FILE_TITLE] => Synergy  of logistics
            [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => Synergy  of logistics
            [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => Synergy  of logistics
            [ELEMENT_DETAIL_PICTURE_FILE_ALT] => Synergy  of logistics
            [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => Synergy  of logistics
        )

)