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4 (12) December-February 2007

4 (12) December-February 2007
ОАО RZD outlines the long-term targets: Railway engineering development passes ahead of the general rates of industrial development in Russia. OAO RZD Vice-President Valentin Gapanovich comments on the basic prospects of the sector, production acceptance criteria and problems the national engineering sector is to face in the near future.

Target-Oriented Development: At present the RF Ministry of Transport is developing a new Federal target programme “Development of Transport System of Russia” with the budget worth RUR 3 trln. The programme will be implemented in 2010–2015 and is aimed at modernization of large-scaled projects in road, railway and sea transport.

Let’s fight rolling stock deficit!: Deficit in rolling stock has resulted in railway machine engineering boom and as a result growth of demand for new railway engineering production by OAO RZD and private operators. In 2007 growth of rolling stock production is estimated at 15%.
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РЖД-Партнер

Target-Oriented Development

At present the RF Ministry of Transport is developing a new Federal target programme (FTP) “Development of Transport System of Russia” with the budget worth RUR 3 trln. The programme will be implemented in 2010–2015 and is aimed at modernization of large-scaled projects in road, railway and sea transport.
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Focus on regions and international cooperation

Modernization and development of the Russian transport complex in the near future will be guided by several sectoral documents. First of all, this is the currently acting federal Target Programme which was developed to modernize the present-day transport system. This programme was worked out for the period until 2009. Starting from 2010 the RF Government will launch a new Federal Programme currently under development which focused on regional projects for transport infrastructure development. The first draft of the document will be first draft by the end of the year. The major line of the programme will have to do with the formation of the unified transport complex of Russia integrated into the Euro-Asian transport system. In the opinion of Andrey Klepach, Director of Macroeconomic Forecasting Department of the RF Ministry of Economic Development and Trade, its very undeveloped transport infrastructure prevents Russia from further economic development. “If now investment into the transport sector (excluding pipe-line transport) amounts to 11% from the general volume allocated to the state development, by 2010 this volume is to be worth 15% i.e. RUR 2.5-2.7 trln”, A.Klepach clarifies. The major part of this investment will be directed to road construction, sea ports modernization and railway net development.

Roads: More and Better

In 2007 RUR 300 bln (unprecedented volume for the state) will be allocated to the capital repair of bridges and city streets network development in the Russian built-up area, as well as to M-4-Don motorway repair. Investment into the road net will allow to operate 3.7-4 thousand kilometers of new roads after 2015, compared to the present-day network of 2.5 thousand kilometers. By 2020 about 8 thousand kilometers of roads will be constructed every year. According to Igor Levitin, his Ministry of Transport is developing the concept of the road sector restructuring where new instruments for introducing market principles to the sector will be developed. In his words, these principles are to improve consumer characteristics of the roads dramatically and increase the attractiveness of the road sector for private investment. In other words, it is being spoken of creating favourable conditions to attract private Russian and foreign investors.
In the programme of the road network development the Ministry also plans to focus on high-quality federal motorways construction and reconstruction of the roads that form International transport corridors of the European part of Russia in North-South and Center-Ural directions, as well as the Far East and Siberia.

…more port facilities…

Special attention in the programme will be paid to modernization and development of sea transport. In 2010-2015 regional port-hubs are to be constructed. They are to operate a modern infrastructure on the basis of special port zones. Modernization of the key ports of Vladivostok and Murmansk is also planned. “The sector needs growth of productive capacities of the domestic sea ports based on the construction of the new ones and reconstruction of the present-day complexes in order to provide the handling of export-import and coasting trade cargo, as well as international transit cargo on the East-West and North-West directions”, Sergey Darkin, Governor of Primorsky Krai (Russian Far East) and one of the programme developers, emphasizes. The new strategy of sea transport development will focus on elimination of such problems as port capacities deficit for import cargo handling, restricted opportunities in port infrastructure development caused by close location to built-up areas, unsatisfactory organization of border check-points functioning etc.

…more railways…

In respect of railways, the programme will be based on OAO RZD development strategy developed for the period to 2030. The concept divides the strategy into two stages. The first stage worked out up to 2015 envisages fundamental sector modernization. During the second stage strategically important lines 20 thousand kilometers in length are to be constructed.
“In its history, the USSR witnessed construction of over 6 thousand kilometers of railways”, – Vladimir Yakunin, OAO RZD President, emphasizes. In his words, by now the railway net length has shortened by 2.5 thousand kilometers. “We should bring our company up to modern demands of the economic development in the railway transportation sector”, V.Yakunin stressed.
The project of railway transport development by 2030 envisages investment worth RUR 7.9-10.9 trln, Alexander Misharin, Deputy Minister of Transport notes. In his words, over 50% of the required volume of investment is to be allocated by OAO RZD resources, 19-28% - by Federal budget, 7% - by regional budgets and about 15% - by private investors.
Among the most important directions in this respect is the transcontinental railway Pravaya Lena – Zyryanka – Uelen. The length of the line connecting Eastern Siberia and Bering Straits is 3.5 thousand kilometers. Other large-scaled projects are the launch of railway communication between continental part of Russia and Sakhalin, as well as the line in Polar Ural rich in mineral resources deposits.
Besides projects of transcontinental scale, there are projects of regional level which are important for railway business cooperation with foreign partners. In this respects major attention will be paid to railway infrastructure development in the North-West, since this region transports one third of the Russian export cargo; Siberia, which provides one third of load volumes, and the Urals, which is one of the most industrially-developed regions.
High-speed passenger transportation is one of the key tasks as well. By 2012-2014 a high-speed line connecting Moscow and Saint Petersburg will be constructed, Yekaterinburg and Chelyabinsk will also be connected by a high-speed railway with the speed of 160-200 km per hour. One more line to be developed in this respect is Moscow-Adler.

Good News for Investors

The period of 2010–2015 will become the turning-point for transport infrastructure development, since during this very time several large-scaled projects will be implemented. Transport promises to develop much faster than the other economic sectors, which can be easily explained: the infrastructure must be ready to host enhanced cargo flow long beforehand. The investment volume developed for this task is quite astonishing. Even considering the highest prices on oil, the Russian budget won’t be able to provide the required investment volume within given period. Thus, this is good news for investors.
By Maria Shevchenko

viewpoint

Alexander MisharinAlexander Misharin,
Deputy RF Minister of Transport:

– Speaking of the development structure of one or the other element of transport infrastructure, we are to discuss a significant investment growth for the road sector. By 2010 we should reach the normative level in respect of road financing, maintenance and repair. Now we construct 2.5 thousand kilometers of roads per year, but by 2010 this amount is to reach the level of 3.7 – 4 thousand kilometers, and by 2015–2020 - 8–10 thousand kilometers.
The second direction has to do with railway transport where the major goals are new railways construction, including high-speed lines development by 2015. That means a fundamental surge in the sector. I do not even mention technological problems regarding the insufficiency of rolling stock. We should also take into account the fact that railways development is considered in the context of the new structure of the Russian Economy. On the one hand, they are the projects in the Russian Far East and Eastern Siberia, which are closely connected with the whole programme and development strategy of the Far East. On the other, they are high-speed lines from Saint-Petersburg to Moscow, Voronezh towards South. All of them will create a totally different prospect of productive forces. Lastly, it is modernization of airports and aerodrome net, which will also happen during the period of 2010-2015 to provide transportation volume of 100-120 mln passengers per year and correspondence to new vessels with the new technical parameters. 

Vitaly YefimovVitaly Yefimov,
President of Transporters Union:

– The current strategy is transport modes development tailored for raw materials export needs. However, the growth of industrial and processing production needs these goods to increase their competitiveness on the foreign and domestic market. This fundamentally changes the economic demands to the transport sector in general and for its different modes in particular. In this respect our major goal is to create a market of competitive transport services. The matter is the international practice has already formulated such phenomenon in the following terms: door to door - sharp on-time - any cargo volume. Unfortunately, we haven’t reached this level yet. In my opinion, this standard is to be introduced with the help of legislation. Moreover, to calculate the prime-cost, the manufacturer needs to know all the details of the delivery (volume, term etc). This is the very reason why we can not use our transit potential entirely; we can not tell the foreign customer when exactly we will deliver the cargo.

Yuri MolchanovYuri Molchanov,
Vice-Governor of Saint-Petersburg:

– Saint-Petersburg transport-logistic complex forwards 20% from general volume of export-import cargo transportation, including 50% of import goods delivered to Russia by sea. One of the basic principles we are developing now is the coordinated development of Saint-Petersburg transport complex on the basis of private-and-state partnership. In the transport sector we are implementing five projects worth RUR 230 bln. Budgets of different levels and Investment Fund allocate RUR 110 bln and almost RUR 130 bln is attracted from private investment.


Valery ShantsevValery Shantsev,
Governor of Nizhegorodskii region:

– Our region provides communication between the center of Russia and TransVolga and Ural territories since Nizhegorodskii region is located on the cross-roads of Europe-Asia and North-South ways. In its turn, Nizhny Novgorod is situated in a zone of broad transport accessibility where population has higher than average purchasing capacities. This makes the city and the region a natural center suitable for development of consumer goods distribution. However, the intensively developing economy needs high-quality roads. Today this is a principal element in international transit routes development, leading to their growing competitiveness and opportunity to attract cargo flows and respective financial resources. The programme of road net development by 2022 performs as a guideline for transport strategy of the region.

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Focus on regions and international cooperation

Modernization and development of the Russian transport complex in the near future will be guided by several sectoral documents. First of all, this is the currently acting federal Target Programme which was developed to modernize the present-day transport system. This programme was worked out for the period until 2009. Starting from 2010 the RF Government will launch a new Federal Programme currently under development which focused on regional projects for transport infrastructure development. The first draft of the document will be first draft by the end of the year. The major line of the programme will have to do with the formation of the unified transport complex of Russia integrated into the Euro-Asian transport system. In the opinion of Andrey Klepach, Director of Macroeconomic Forecasting Department of the RF Ministry of Economic Development and Trade, its very undeveloped transport infrastructure prevents Russia from further economic development. “If now investment into the transport sector (excluding pipe-line transport) amounts to 11% from the general volume allocated to the state development, by 2010 this volume is to be worth 15% i.e. RUR 2.5-2.7 trln”, A.Klepach clarifies. The major part of this investment will be directed to road construction, sea ports modernization and railway net development.

Roads: More and Better

In 2007 RUR 300 bln (unprecedented volume for the state) will be allocated to the capital repair of bridges and city streets network development in the Russian built-up area, as well as to M-4-Don motorway repair. Investment into the road net will allow to operate 3.7-4 thousand kilometers of new roads after 2015, compared to the present-day network of 2.5 thousand kilometers. By 2020 about 8 thousand kilometers of roads will be constructed every year. According to Igor Levitin, his Ministry of Transport is developing the concept of the road sector restructuring where new instruments for introducing market principles to the sector will be developed. In his words, these principles are to improve consumer characteristics of the roads dramatically and increase the attractiveness of the road sector for private investment. In other words, it is being spoken of creating favourable conditions to attract private Russian and foreign investors.
In the programme of the road network development the Ministry also plans to focus on high-quality federal motorways construction and reconstruction of the roads that form International transport corridors of the European part of Russia in North-South and Center-Ural directions, as well as the Far East and Siberia.

…more port facilities…

Special attention in the programme will be paid to modernization and development of sea transport. In 2010-2015 regional port-hubs are to be constructed. They are to operate a modern infrastructure on the basis of special port zones. Modernization of the key ports of Vladivostok and Murmansk is also planned. “The sector needs growth of productive capacities of the domestic sea ports based on the construction of the new ones and reconstruction of the present-day complexes in order to provide the handling of export-import and coasting trade cargo, as well as international transit cargo on the East-West and North-West directions”, Sergey Darkin, Governor of Primorsky Krai (Russian Far East) and one of the programme developers, emphasizes. The new strategy of sea transport development will focus on elimination of such problems as port capacities deficit for import cargo handling, restricted opportunities in port infrastructure development caused by close location to built-up areas, unsatisfactory organization of border check-points functioning etc.

…more railways…

In respect of railways, the programme will be based on OAO RZD development strategy developed for the period to 2030. The concept divides the strategy into two stages. The first stage worked out up to 2015 envisages fundamental sector modernization. During the second stage strategically important lines 20 thousand kilometers in length are to be constructed.
“In its history, the USSR witnessed construction of over 6 thousand kilometers of railways”, – Vladimir Yakunin, OAO RZD President, emphasizes. In his words, by now the railway net length has shortened by 2.5 thousand kilometers. “We should bring our company up to modern demands of the economic development in the railway transportation sector”, V.Yakunin stressed.
The project of railway transport development by 2030 envisages investment worth RUR 7.9-10.9 trln, Alexander Misharin, Deputy Minister of Transport notes. In his words, over 50% of the required volume of investment is to be allocated by OAO RZD resources, 19-28% - by Federal budget, 7% - by regional budgets and about 15% - by private investors.
Among the most important directions in this respect is the transcontinental railway Pravaya Lena – Zyryanka – Uelen. The length of the line connecting Eastern Siberia and Bering Straits is 3.5 thousand kilometers. Other large-scaled projects are the launch of railway communication between continental part of Russia and Sakhalin, as well as the line in Polar Ural rich in mineral resources deposits.
Besides projects of transcontinental scale, there are projects of regional level which are important for railway business cooperation with foreign partners. In this respects major attention will be paid to railway infrastructure development in the North-West, since this region transports one third of the Russian export cargo; Siberia, which provides one third of load volumes, and the Urals, which is one of the most industrially-developed regions.
High-speed passenger transportation is one of the key tasks as well. By 2012-2014 a high-speed line connecting Moscow and Saint Petersburg will be constructed, Yekaterinburg and Chelyabinsk will also be connected by a high-speed railway with the speed of 160-200 km per hour. One more line to be developed in this respect is Moscow-Adler.

Good News for Investors

The period of 2010–2015 will become the turning-point for transport infrastructure development, since during this very time several large-scaled projects will be implemented. Transport promises to develop much faster than the other economic sectors, which can be easily explained: the infrastructure must be ready to host enhanced cargo flow long beforehand. The investment volume developed for this task is quite astonishing. Even considering the highest prices on oil, the Russian budget won’t be able to provide the required investment volume within given period. Thus, this is good news for investors.
By Maria Shevchenko

viewpoint

Alexander MisharinAlexander Misharin,
Deputy RF Minister of Transport:

– Speaking of the development structure of one or the other element of transport infrastructure, we are to discuss a significant investment growth for the road sector. By 2010 we should reach the normative level in respect of road financing, maintenance and repair. Now we construct 2.5 thousand kilometers of roads per year, but by 2010 this amount is to reach the level of 3.7 – 4 thousand kilometers, and by 2015–2020 - 8–10 thousand kilometers.
The second direction has to do with railway transport where the major goals are new railways construction, including high-speed lines development by 2015. That means a fundamental surge in the sector. I do not even mention technological problems regarding the insufficiency of rolling stock. We should also take into account the fact that railways development is considered in the context of the new structure of the Russian Economy. On the one hand, they are the projects in the Russian Far East and Eastern Siberia, which are closely connected with the whole programme and development strategy of the Far East. On the other, they are high-speed lines from Saint-Petersburg to Moscow, Voronezh towards South. All of them will create a totally different prospect of productive forces. Lastly, it is modernization of airports and aerodrome net, which will also happen during the period of 2010-2015 to provide transportation volume of 100-120 mln passengers per year and correspondence to new vessels with the new technical parameters. 

Vitaly YefimovVitaly Yefimov,
President of Transporters Union:

– The current strategy is transport modes development tailored for raw materials export needs. However, the growth of industrial and processing production needs these goods to increase their competitiveness on the foreign and domestic market. This fundamentally changes the economic demands to the transport sector in general and for its different modes in particular. In this respect our major goal is to create a market of competitive transport services. The matter is the international practice has already formulated such phenomenon in the following terms: door to door - sharp on-time - any cargo volume. Unfortunately, we haven’t reached this level yet. In my opinion, this standard is to be introduced with the help of legislation. Moreover, to calculate the prime-cost, the manufacturer needs to know all the details of the delivery (volume, term etc). This is the very reason why we can not use our transit potential entirely; we can not tell the foreign customer when exactly we will deliver the cargo.

Yuri MolchanovYuri Molchanov,
Vice-Governor of Saint-Petersburg:

– Saint-Petersburg transport-logistic complex forwards 20% from general volume of export-import cargo transportation, including 50% of import goods delivered to Russia by sea. One of the basic principles we are developing now is the coordinated development of Saint-Petersburg transport complex on the basis of private-and-state partnership. In the transport sector we are implementing five projects worth RUR 230 bln. Budgets of different levels and Investment Fund allocate RUR 110 bln and almost RUR 130 bln is attracted from private investment.


Valery ShantsevValery Shantsev,
Governor of Nizhegorodskii region:

– Our region provides communication between the center of Russia and TransVolga and Ural territories since Nizhegorodskii region is located on the cross-roads of Europe-Asia and North-South ways. In its turn, Nizhny Novgorod is situated in a zone of broad transport accessibility where population has higher than average purchasing capacities. This makes the city and the region a natural center suitable for development of consumer goods distribution. However, the intensively developing economy needs high-quality roads. Today this is a principal element in international transit routes development, leading to their growing competitiveness and opportunity to attract cargo flows and respective financial resources. The programme of road net development by 2022 performs as a guideline for transport strategy of the region.

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Focus on regions and international cooperation

Modernization and development of the Russian transport complex in the near future will be guided by several sectoral documents. First of all, this is the currently acting federal Target Programme which was developed to modernize the present-day transport system. This programme was worked out for the period until 2009. Starting from 2010 the RF Government will launch a new Federal Programme currently under development which focused on regional projects for transport infrastructure development. The first draft of the document will be first draft by the end of the year. The major line of the programme will have to do with the formation of the unified transport complex of Russia integrated into the Euro-Asian transport system. In the opinion of Andrey Klepach, Director of Macroeconomic Forecasting Department of the RF Ministry of Economic Development and Trade, its very undeveloped transport infrastructure prevents Russia from further economic development. “If now investment into the transport sector (excluding pipe-line transport) amounts to 11% from the general volume allocated to the state development, by 2010 this volume is to be worth 15% i.e. RUR 2.5-2.7 trln”, A.Klepach clarifies. The major part of this investment will be directed to road construction, sea ports modernization and railway net development.

Roads: More and Better

In 2007 RUR 300 bln (unprecedented volume for the state) will be allocated to the capital repair of bridges and city streets network development in the Russian built-up area, as well as to M-4-Don motorway repair. Investment into the road net will allow to operate 3.7-4 thousand kilometers of new roads after 2015, compared to the present-day network of 2.5 thousand kilometers. By 2020 about 8 thousand kilometers of roads will be constructed every year. According to Igor Levitin, his Ministry of Transport is developing the concept of the road sector restructuring where new instruments for introducing market principles to the sector will be developed. In his words, these principles are to improve consumer characteristics of the roads dramatically and increase the attractiveness of the road sector for private investment. In other words, it is being spoken of creating favourable conditions to attract private Russian and foreign investors.
In the programme of the road network development the Ministry also plans to focus on high-quality federal motorways construction and reconstruction of the roads that form International transport corridors of the European part of Russia in North-South and Center-Ural directions, as well as the Far East and Siberia.

…more port facilities…

Special attention in the programme will be paid to modernization and development of sea transport. In 2010-2015 regional port-hubs are to be constructed. They are to operate a modern infrastructure on the basis of special port zones. Modernization of the key ports of Vladivostok and Murmansk is also planned. “The sector needs growth of productive capacities of the domestic sea ports based on the construction of the new ones and reconstruction of the present-day complexes in order to provide the handling of export-import and coasting trade cargo, as well as international transit cargo on the East-West and North-West directions”, Sergey Darkin, Governor of Primorsky Krai (Russian Far East) and one of the programme developers, emphasizes. The new strategy of sea transport development will focus on elimination of such problems as port capacities deficit for import cargo handling, restricted opportunities in port infrastructure development caused by close location to built-up areas, unsatisfactory organization of border check-points functioning etc.

…more railways…

In respect of railways, the programme will be based on OAO RZD development strategy developed for the period to 2030. The concept divides the strategy into two stages. The first stage worked out up to 2015 envisages fundamental sector modernization. During the second stage strategically important lines 20 thousand kilometers in length are to be constructed.
“In its history, the USSR witnessed construction of over 6 thousand kilometers of railways”, – Vladimir Yakunin, OAO RZD President, emphasizes. In his words, by now the railway net length has shortened by 2.5 thousand kilometers. “We should bring our company up to modern demands of the economic development in the railway transportation sector”, V.Yakunin stressed.
The project of railway transport development by 2030 envisages investment worth RUR 7.9-10.9 trln, Alexander Misharin, Deputy Minister of Transport notes. In his words, over 50% of the required volume of investment is to be allocated by OAO RZD resources, 19-28% - by Federal budget, 7% - by regional budgets and about 15% - by private investors.
Among the most important directions in this respect is the transcontinental railway Pravaya Lena – Zyryanka – Uelen. The length of the line connecting Eastern Siberia and Bering Straits is 3.5 thousand kilometers. Other large-scaled projects are the launch of railway communication between continental part of Russia and Sakhalin, as well as the line in Polar Ural rich in mineral resources deposits.
Besides projects of transcontinental scale, there are projects of regional level which are important for railway business cooperation with foreign partners. In this respects major attention will be paid to railway infrastructure development in the North-West, since this region transports one third of the Russian export cargo; Siberia, which provides one third of load volumes, and the Urals, which is one of the most industrially-developed regions.
High-speed passenger transportation is one of the key tasks as well. By 2012-2014 a high-speed line connecting Moscow and Saint Petersburg will be constructed, Yekaterinburg and Chelyabinsk will also be connected by a high-speed railway with the speed of 160-200 km per hour. One more line to be developed in this respect is Moscow-Adler.

Good News for Investors

The period of 2010–2015 will become the turning-point for transport infrastructure development, since during this very time several large-scaled projects will be implemented. Transport promises to develop much faster than the other economic sectors, which can be easily explained: the infrastructure must be ready to host enhanced cargo flow long beforehand. The investment volume developed for this task is quite astonishing. Even considering the highest prices on oil, the Russian budget won’t be able to provide the required investment volume within given period. Thus, this is good news for investors.
By Maria Shevchenko

viewpoint

Alexander MisharinAlexander Misharin,
Deputy RF Minister of Transport:

– Speaking of the development structure of one or the other element of transport infrastructure, we are to discuss a significant investment growth for the road sector. By 2010 we should reach the normative level in respect of road financing, maintenance and repair. Now we construct 2.5 thousand kilometers of roads per year, but by 2010 this amount is to reach the level of 3.7 – 4 thousand kilometers, and by 2015–2020 - 8–10 thousand kilometers.
The second direction has to do with railway transport where the major goals are new railways construction, including high-speed lines development by 2015. That means a fundamental surge in the sector. I do not even mention technological problems regarding the insufficiency of rolling stock. We should also take into account the fact that railways development is considered in the context of the new structure of the Russian Economy. On the one hand, they are the projects in the Russian Far East and Eastern Siberia, which are closely connected with the whole programme and development strategy of the Far East. On the other, they are high-speed lines from Saint-Petersburg to Moscow, Voronezh towards South. All of them will create a totally different prospect of productive forces. Lastly, it is modernization of airports and aerodrome net, which will also happen during the period of 2010-2015 to provide transportation volume of 100-120 mln passengers per year and correspondence to new vessels with the new technical parameters. 

Vitaly YefimovVitaly Yefimov,
President of Transporters Union:

– The current strategy is transport modes development tailored for raw materials export needs. However, the growth of industrial and processing production needs these goods to increase their competitiveness on the foreign and domestic market. This fundamentally changes the economic demands to the transport sector in general and for its different modes in particular. In this respect our major goal is to create a market of competitive transport services. The matter is the international practice has already formulated such phenomenon in the following terms: door to door - sharp on-time - any cargo volume. Unfortunately, we haven’t reached this level yet. In my opinion, this standard is to be introduced with the help of legislation. Moreover, to calculate the prime-cost, the manufacturer needs to know all the details of the delivery (volume, term etc). This is the very reason why we can not use our transit potential entirely; we can not tell the foreign customer when exactly we will deliver the cargo.

Yuri MolchanovYuri Molchanov,
Vice-Governor of Saint-Petersburg:

– Saint-Petersburg transport-logistic complex forwards 20% from general volume of export-import cargo transportation, including 50% of import goods delivered to Russia by sea. One of the basic principles we are developing now is the coordinated development of Saint-Petersburg transport complex on the basis of private-and-state partnership. In the transport sector we are implementing five projects worth RUR 230 bln. Budgets of different levels and Investment Fund allocate RUR 110 bln and almost RUR 130 bln is attracted from private investment.


Valery ShantsevValery Shantsev,
Governor of Nizhegorodskii region:

– Our region provides communication between the center of Russia and TransVolga and Ural territories since Nizhegorodskii region is located on the cross-roads of Europe-Asia and North-South ways. In its turn, Nizhny Novgorod is situated in a zone of broad transport accessibility where population has higher than average purchasing capacities. This makes the city and the region a natural center suitable for development of consumer goods distribution. However, the intensively developing economy needs high-quality roads. Today this is a principal element in international transit routes development, leading to their growing competitiveness and opportunity to attract cargo flows and respective financial resources. The programme of road net development by 2022 performs as a guideline for transport strategy of the region.

[~DETAIL_TEXT] =>

Focus on regions and international cooperation

Modernization and development of the Russian transport complex in the near future will be guided by several sectoral documents. First of all, this is the currently acting federal Target Programme which was developed to modernize the present-day transport system. This programme was worked out for the period until 2009. Starting from 2010 the RF Government will launch a new Federal Programme currently under development which focused on regional projects for transport infrastructure development. The first draft of the document will be first draft by the end of the year. The major line of the programme will have to do with the formation of the unified transport complex of Russia integrated into the Euro-Asian transport system. In the opinion of Andrey Klepach, Director of Macroeconomic Forecasting Department of the RF Ministry of Economic Development and Trade, its very undeveloped transport infrastructure prevents Russia from further economic development. “If now investment into the transport sector (excluding pipe-line transport) amounts to 11% from the general volume allocated to the state development, by 2010 this volume is to be worth 15% i.e. RUR 2.5-2.7 trln”, A.Klepach clarifies. The major part of this investment will be directed to road construction, sea ports modernization and railway net development.

Roads: More and Better

In 2007 RUR 300 bln (unprecedented volume for the state) will be allocated to the capital repair of bridges and city streets network development in the Russian built-up area, as well as to M-4-Don motorway repair. Investment into the road net will allow to operate 3.7-4 thousand kilometers of new roads after 2015, compared to the present-day network of 2.5 thousand kilometers. By 2020 about 8 thousand kilometers of roads will be constructed every year. According to Igor Levitin, his Ministry of Transport is developing the concept of the road sector restructuring where new instruments for introducing market principles to the sector will be developed. In his words, these principles are to improve consumer characteristics of the roads dramatically and increase the attractiveness of the road sector for private investment. In other words, it is being spoken of creating favourable conditions to attract private Russian and foreign investors.
In the programme of the road network development the Ministry also plans to focus on high-quality federal motorways construction and reconstruction of the roads that form International transport corridors of the European part of Russia in North-South and Center-Ural directions, as well as the Far East and Siberia.

…more port facilities…

Special attention in the programme will be paid to modernization and development of sea transport. In 2010-2015 regional port-hubs are to be constructed. They are to operate a modern infrastructure on the basis of special port zones. Modernization of the key ports of Vladivostok and Murmansk is also planned. “The sector needs growth of productive capacities of the domestic sea ports based on the construction of the new ones and reconstruction of the present-day complexes in order to provide the handling of export-import and coasting trade cargo, as well as international transit cargo on the East-West and North-West directions”, Sergey Darkin, Governor of Primorsky Krai (Russian Far East) and one of the programme developers, emphasizes. The new strategy of sea transport development will focus on elimination of such problems as port capacities deficit for import cargo handling, restricted opportunities in port infrastructure development caused by close location to built-up areas, unsatisfactory organization of border check-points functioning etc.

…more railways…

In respect of railways, the programme will be based on OAO RZD development strategy developed for the period to 2030. The concept divides the strategy into two stages. The first stage worked out up to 2015 envisages fundamental sector modernization. During the second stage strategically important lines 20 thousand kilometers in length are to be constructed.
“In its history, the USSR witnessed construction of over 6 thousand kilometers of railways”, – Vladimir Yakunin, OAO RZD President, emphasizes. In his words, by now the railway net length has shortened by 2.5 thousand kilometers. “We should bring our company up to modern demands of the economic development in the railway transportation sector”, V.Yakunin stressed.
The project of railway transport development by 2030 envisages investment worth RUR 7.9-10.9 trln, Alexander Misharin, Deputy Minister of Transport notes. In his words, over 50% of the required volume of investment is to be allocated by OAO RZD resources, 19-28% - by Federal budget, 7% - by regional budgets and about 15% - by private investors.
Among the most important directions in this respect is the transcontinental railway Pravaya Lena – Zyryanka – Uelen. The length of the line connecting Eastern Siberia and Bering Straits is 3.5 thousand kilometers. Other large-scaled projects are the launch of railway communication between continental part of Russia and Sakhalin, as well as the line in Polar Ural rich in mineral resources deposits.
Besides projects of transcontinental scale, there are projects of regional level which are important for railway business cooperation with foreign partners. In this respects major attention will be paid to railway infrastructure development in the North-West, since this region transports one third of the Russian export cargo; Siberia, which provides one third of load volumes, and the Urals, which is one of the most industrially-developed regions.
High-speed passenger transportation is one of the key tasks as well. By 2012-2014 a high-speed line connecting Moscow and Saint Petersburg will be constructed, Yekaterinburg and Chelyabinsk will also be connected by a high-speed railway with the speed of 160-200 km per hour. One more line to be developed in this respect is Moscow-Adler.

Good News for Investors

The period of 2010–2015 will become the turning-point for transport infrastructure development, since during this very time several large-scaled projects will be implemented. Transport promises to develop much faster than the other economic sectors, which can be easily explained: the infrastructure must be ready to host enhanced cargo flow long beforehand. The investment volume developed for this task is quite astonishing. Even considering the highest prices on oil, the Russian budget won’t be able to provide the required investment volume within given period. Thus, this is good news for investors.
By Maria Shevchenko

viewpoint

Alexander MisharinAlexander Misharin,
Deputy RF Minister of Transport:

– Speaking of the development structure of one or the other element of transport infrastructure, we are to discuss a significant investment growth for the road sector. By 2010 we should reach the normative level in respect of road financing, maintenance and repair. Now we construct 2.5 thousand kilometers of roads per year, but by 2010 this amount is to reach the level of 3.7 – 4 thousand kilometers, and by 2015–2020 - 8–10 thousand kilometers.
The second direction has to do with railway transport where the major goals are new railways construction, including high-speed lines development by 2015. That means a fundamental surge in the sector. I do not even mention technological problems regarding the insufficiency of rolling stock. We should also take into account the fact that railways development is considered in the context of the new structure of the Russian Economy. On the one hand, they are the projects in the Russian Far East and Eastern Siberia, which are closely connected with the whole programme and development strategy of the Far East. On the other, they are high-speed lines from Saint-Petersburg to Moscow, Voronezh towards South. All of them will create a totally different prospect of productive forces. Lastly, it is modernization of airports and aerodrome net, which will also happen during the period of 2010-2015 to provide transportation volume of 100-120 mln passengers per year and correspondence to new vessels with the new technical parameters. 

Vitaly YefimovVitaly Yefimov,
President of Transporters Union:

– The current strategy is transport modes development tailored for raw materials export needs. However, the growth of industrial and processing production needs these goods to increase their competitiveness on the foreign and domestic market. This fundamentally changes the economic demands to the transport sector in general and for its different modes in particular. In this respect our major goal is to create a market of competitive transport services. The matter is the international practice has already formulated such phenomenon in the following terms: door to door - sharp on-time - any cargo volume. Unfortunately, we haven’t reached this level yet. In my opinion, this standard is to be introduced with the help of legislation. Moreover, to calculate the prime-cost, the manufacturer needs to know all the details of the delivery (volume, term etc). This is the very reason why we can not use our transit potential entirely; we can not tell the foreign customer when exactly we will deliver the cargo.

Yuri MolchanovYuri Molchanov,
Vice-Governor of Saint-Petersburg:

– Saint-Petersburg transport-logistic complex forwards 20% from general volume of export-import cargo transportation, including 50% of import goods delivered to Russia by sea. One of the basic principles we are developing now is the coordinated development of Saint-Petersburg transport complex on the basis of private-and-state partnership. In the transport sector we are implementing five projects worth RUR 230 bln. Budgets of different levels and Investment Fund allocate RUR 110 bln and almost RUR 130 bln is attracted from private investment.


Valery ShantsevValery Shantsev,
Governor of Nizhegorodskii region:

– Our region provides communication between the center of Russia and TransVolga and Ural territories since Nizhegorodskii region is located on the cross-roads of Europe-Asia and North-South ways. In its turn, Nizhny Novgorod is situated in a zone of broad transport accessibility where population has higher than average purchasing capacities. This makes the city and the region a natural center suitable for development of consumer goods distribution. However, the intensively developing economy needs high-quality roads. Today this is a principal element in international transit routes development, leading to their growing competitiveness and opportunity to attract cargo flows and respective financial resources. The programme of road net development by 2022 performs as a guideline for transport strategy of the region.

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РЖД-Партнер

From ISO to IRIS?

A German agency for certification of DQS management systems intends to offer cooperation with OAO RZD regarding the launch of IRIS international standards in the rail industry of Russia. In its turn OAO RZD has agreed to assist in promoting IRIS in Russia.
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INTERNATIONAL STANDARDS FOR THE RAIL INDUSTRY

According to Michael Drechsel, Director of DQS GmbH, his company plans to offer to OAO RZD services on building up and certifying IRIS systems. “Now the IRIS Committee on behalf of UNIFE recommends railways, including those of Russia, launch the new unified specialised sector standard, – M.Drechsel says. – This is a crucially important point for the biggest international suppliers (Siemens and Bombardier) who plan to enter the Russian market. Our certification body also sees great potential for IRIS development in the RF. This standard was developed for manufacturers who produce rolling stock and components; it also goes hand in hand with modern requirements for rolling stock servicing and repair quality”.
As an example M.Drechsel gives Deutsche Bahn where the Board is considering an opportunity to cooperate with suppliers whose production has been certified by IRIS which is explained by the fact that assessment of production given by every single supplier is quite expensive and uncomfortable.
IRIS standard was developed two years ago by UNIFE on the basis of internationally recognised ISO 9001 quality standards with specific consideration for rail transport. The necessity to develop a new standard was justified by numerous claims raised by rolling stock producers as well as suppliers. Manufacturers were not satisfied with the quality of supplied components and suppliers were not happy about the huge number of audits held to control production quality. In order to set mutually comfortable conditions for all sides, i.e. railway operators, rolling stock manufacturers and their suppliers, the decision to develop unified international standard for railway industry was made.
In the words of M.Drechsel, UNIFE has authorised several bodies to certify enterprises for IRIS standards. In May 2006, DQS issued the first IRIS certificate for HARTING Technology Group (Germany). Now about 10 enterprises have received this sort of certificate. By 2009 it is planned to give about 2000 IRIS certificates to European companies involved in the rail business, having prepared about 50 accredited DQS auditors.

STAGED DEVELOPMENT

Galina Mazilova, CEO of the DQS Russian department, believes that OAO RZD openly demonstrates its intention to be guided by modern international quality standards. Thus, the whole range of repair enterprises belonging to the corporation have launched the system of quality management and acquired ISO 9001 certificates. This is exactly what is required to undergo IRIS certification procedures in future.
“It is quite logical to presume that the next step of the above-mentioned enterprise will be an IRIS launch, – G.Mazilova believes. –IRIS will undoubtedly reach the railway sector, moreover, considering the fact that more and more structural departments of OAO RZD are acquiring ISO 9001 certificates. For example, rail-welding train
№ 8 of the Northern railway has already received ISO 9001 and OHSAS 18001 certificates of integrated system quality and labour protection. By the way, this enterprise has moved far ahead of other enterprises in the Russian railways in terms of international quality standards, having demonstrated high efficiency in these standards”.
According to Igor Aibadullayev, Head of rail-welding train № 8, the staff of his enterprise feel positive about an IRIS launch if only the OAO RZD Board would entrust them with such an important project. However, the enterprise worries for the future of integrated management system since the funds required for inspection audits to support certificates given by DQS are not allocated by the corporation.
“This particular case makes us think: how thoroughly was the OAO RZD functional strategy of quality management developed? - Alexander Zakharov, Head of the Department of Technical Regulation, Licensing and Metrology of the Northern Railway, emphasises. – A great number of big Russian enterprises cooperate with famous foreign certification bodies, whose certificates are valid all over the world and constitute a pass to the global market. The same policy applies for the domestic plants who manufacture railway machinery. However, railways give no certainty as to whether OAO RZD departments cooperate with foreign certification bodies or manage with only a railway Register? What is the future of the pilot projects on certification implemented on the railways? Will the railway Register join the international IQNet like the biggest Russian certification bodies? Will structural units on quality management be organised at railways?”
In the opinion of A.Zakharov, these fundamental questions need to be answered before the large-scale work on quality management system launches starts on railways. Moreover, IRIS introduction and experts training is to be started on the prepared base only after the launch of ISO 9001 standard has been completed widely on the railway network. Particular attention is to be paid to auditors’ and consultants’ training since recently a negative tendency in this field can be observed. Now many education centres are ready to take the responsibility of preparing such experts, despite having no experience and untrained tutors.
Nikolay Yuryev

reference

A pilot project on quality management system development and launch was implemented at Northern railway in 2002. Rail-welding train № 8 (RWT¬8) was chosen as a basic enterprise. This one was not of high efficiency, though strategically important for railway functioning.  In its preparation for certification, the bottle-necks in production were found, and reconstruction and technical re-equipment worth RUR 100 million was performed.
By 2004 a launched quality management system was certified for ISO 9001 standard by three bodies: domestic Register of certification of the federal railway transport, German DQS and VSB ZERT centres. In 2005 the enterprise received an OHSAS 18001 labour protection certificate.
The launched integrated system has already proved its efficiency. The annual economic benefit now amounts to RUR 12 million. Thus, an insignificant department has turned into a leader.

viewpoint

Alexander LipatovAlexander Lipatov, OAO RZD Deputy Head of Technical Policy Department:
– OAO RZD does not consider such notions as “standard” or “certificate” as ends in themselves. It is much more important that requirements for production set by the corporation are fulfilled. IRIS is an internationally acknowledged standard for railway production suppliers. I believe, when choosing a supplier OAO RZD would do well to be guided by this standard where the basic requirements are formulated.
On the other hand, this policy carried out by OAO RZD will also allow it to feel confident on the world market of railway transport services. Any of our locomotive depots that correspond to IRIS standards and possess certificates are able to service foreign rolling stock. The major problem lies in the fact that the process of certification is connected with attracting foreign experts, which is quite costly. At the same time certificates issued by our railway Register are not acknowledged elsewhere in the world. This negatively influences the level of quality management. This is typical both for the corporation’s enterprises and Transmashholding plants as well, since their production often breaches world standards.
Cooperation with highly respected international certification organizations such as DQS, TUV, Lloyds Register, BIQ, Veritas allows a new level of production functioning to be reached. The experience of rail-welding train 8 can be given as an example. I think we are to launch a training centre on the basis of this railway, with a wider world standards launch to follow. Having certified this enterprise with IRIS we can show the world we have an enterprise which is able to service foreign companies. This will become our serious image breakthrough as, speaking honestly, OAO RZD enterprises can do many things on the European level, though they are not trained well enough to position themselves properly. This has only to be learned in the future.
At the same time OAO RZD has been developing corporate requirements to repair systems as well as those of service, corporate suppliers and quality management. The level of these requirements promises to rival world ones. Having developed this, we will realise we can easily get international standards and, thus, international recognition. 

[~DETAIL_TEXT] =>

INTERNATIONAL STANDARDS FOR THE RAIL INDUSTRY

According to Michael Drechsel, Director of DQS GmbH, his company plans to offer to OAO RZD services on building up and certifying IRIS systems. “Now the IRIS Committee on behalf of UNIFE recommends railways, including those of Russia, launch the new unified specialised sector standard, – M.Drechsel says. – This is a crucially important point for the biggest international suppliers (Siemens and Bombardier) who plan to enter the Russian market. Our certification body also sees great potential for IRIS development in the RF. This standard was developed for manufacturers who produce rolling stock and components; it also goes hand in hand with modern requirements for rolling stock servicing and repair quality”.
As an example M.Drechsel gives Deutsche Bahn where the Board is considering an opportunity to cooperate with suppliers whose production has been certified by IRIS which is explained by the fact that assessment of production given by every single supplier is quite expensive and uncomfortable.
IRIS standard was developed two years ago by UNIFE on the basis of internationally recognised ISO 9001 quality standards with specific consideration for rail transport. The necessity to develop a new standard was justified by numerous claims raised by rolling stock producers as well as suppliers. Manufacturers were not satisfied with the quality of supplied components and suppliers were not happy about the huge number of audits held to control production quality. In order to set mutually comfortable conditions for all sides, i.e. railway operators, rolling stock manufacturers and their suppliers, the decision to develop unified international standard for railway industry was made.
In the words of M.Drechsel, UNIFE has authorised several bodies to certify enterprises for IRIS standards. In May 2006, DQS issued the first IRIS certificate for HARTING Technology Group (Germany). Now about 10 enterprises have received this sort of certificate. By 2009 it is planned to give about 2000 IRIS certificates to European companies involved in the rail business, having prepared about 50 accredited DQS auditors.

STAGED DEVELOPMENT

Galina Mazilova, CEO of the DQS Russian department, believes that OAO RZD openly demonstrates its intention to be guided by modern international quality standards. Thus, the whole range of repair enterprises belonging to the corporation have launched the system of quality management and acquired ISO 9001 certificates. This is exactly what is required to undergo IRIS certification procedures in future.
“It is quite logical to presume that the next step of the above-mentioned enterprise will be an IRIS launch, – G.Mazilova believes. –IRIS will undoubtedly reach the railway sector, moreover, considering the fact that more and more structural departments of OAO RZD are acquiring ISO 9001 certificates. For example, rail-welding train
№ 8 of the Northern railway has already received ISO 9001 and OHSAS 18001 certificates of integrated system quality and labour protection. By the way, this enterprise has moved far ahead of other enterprises in the Russian railways in terms of international quality standards, having demonstrated high efficiency in these standards”.
According to Igor Aibadullayev, Head of rail-welding train № 8, the staff of his enterprise feel positive about an IRIS launch if only the OAO RZD Board would entrust them with such an important project. However, the enterprise worries for the future of integrated management system since the funds required for inspection audits to support certificates given by DQS are not allocated by the corporation.
“This particular case makes us think: how thoroughly was the OAO RZD functional strategy of quality management developed? - Alexander Zakharov, Head of the Department of Technical Regulation, Licensing and Metrology of the Northern Railway, emphasises. – A great number of big Russian enterprises cooperate with famous foreign certification bodies, whose certificates are valid all over the world and constitute a pass to the global market. The same policy applies for the domestic plants who manufacture railway machinery. However, railways give no certainty as to whether OAO RZD departments cooperate with foreign certification bodies or manage with only a railway Register? What is the future of the pilot projects on certification implemented on the railways? Will the railway Register join the international IQNet like the biggest Russian certification bodies? Will structural units on quality management be organised at railways?”
In the opinion of A.Zakharov, these fundamental questions need to be answered before the large-scale work on quality management system launches starts on railways. Moreover, IRIS introduction and experts training is to be started on the prepared base only after the launch of ISO 9001 standard has been completed widely on the railway network. Particular attention is to be paid to auditors’ and consultants’ training since recently a negative tendency in this field can be observed. Now many education centres are ready to take the responsibility of preparing such experts, despite having no experience and untrained tutors.
Nikolay Yuryev

reference

A pilot project on quality management system development and launch was implemented at Northern railway in 2002. Rail-welding train № 8 (RWT¬8) was chosen as a basic enterprise. This one was not of high efficiency, though strategically important for railway functioning.  In its preparation for certification, the bottle-necks in production were found, and reconstruction and technical re-equipment worth RUR 100 million was performed.
By 2004 a launched quality management system was certified for ISO 9001 standard by three bodies: domestic Register of certification of the federal railway transport, German DQS and VSB ZERT centres. In 2005 the enterprise received an OHSAS 18001 labour protection certificate.
The launched integrated system has already proved its efficiency. The annual economic benefit now amounts to RUR 12 million. Thus, an insignificant department has turned into a leader.

viewpoint

Alexander LipatovAlexander Lipatov, OAO RZD Deputy Head of Technical Policy Department:
– OAO RZD does not consider such notions as “standard” or “certificate” as ends in themselves. It is much more important that requirements for production set by the corporation are fulfilled. IRIS is an internationally acknowledged standard for railway production suppliers. I believe, when choosing a supplier OAO RZD would do well to be guided by this standard where the basic requirements are formulated.
On the other hand, this policy carried out by OAO RZD will also allow it to feel confident on the world market of railway transport services. Any of our locomotive depots that correspond to IRIS standards and possess certificates are able to service foreign rolling stock. The major problem lies in the fact that the process of certification is connected with attracting foreign experts, which is quite costly. At the same time certificates issued by our railway Register are not acknowledged elsewhere in the world. This negatively influences the level of quality management. This is typical both for the corporation’s enterprises and Transmashholding plants as well, since their production often breaches world standards.
Cooperation with highly respected international certification organizations such as DQS, TUV, Lloyds Register, BIQ, Veritas allows a new level of production functioning to be reached. The experience of rail-welding train 8 can be given as an example. I think we are to launch a training centre on the basis of this railway, with a wider world standards launch to follow. Having certified this enterprise with IRIS we can show the world we have an enterprise which is able to service foreign companies. This will become our serious image breakthrough as, speaking honestly, OAO RZD enterprises can do many things on the European level, though they are not trained well enough to position themselves properly. This has only to be learned in the future.
At the same time OAO RZD has been developing corporate requirements to repair systems as well as those of service, corporate suppliers and quality management. The level of these requirements promises to rival world ones. Having developed this, we will realise we can easily get international standards and, thus, international recognition. 

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INTERNATIONAL STANDARDS FOR THE RAIL INDUSTRY

According to Michael Drechsel, Director of DQS GmbH, his company plans to offer to OAO RZD services on building up and certifying IRIS systems. “Now the IRIS Committee on behalf of UNIFE recommends railways, including those of Russia, launch the new unified specialised sector standard, – M.Drechsel says. – This is a crucially important point for the biggest international suppliers (Siemens and Bombardier) who plan to enter the Russian market. Our certification body also sees great potential for IRIS development in the RF. This standard was developed for manufacturers who produce rolling stock and components; it also goes hand in hand with modern requirements for rolling stock servicing and repair quality”.
As an example M.Drechsel gives Deutsche Bahn where the Board is considering an opportunity to cooperate with suppliers whose production has been certified by IRIS which is explained by the fact that assessment of production given by every single supplier is quite expensive and uncomfortable.
IRIS standard was developed two years ago by UNIFE on the basis of internationally recognised ISO 9001 quality standards with specific consideration for rail transport. The necessity to develop a new standard was justified by numerous claims raised by rolling stock producers as well as suppliers. Manufacturers were not satisfied with the quality of supplied components and suppliers were not happy about the huge number of audits held to control production quality. In order to set mutually comfortable conditions for all sides, i.e. railway operators, rolling stock manufacturers and their suppliers, the decision to develop unified international standard for railway industry was made.
In the words of M.Drechsel, UNIFE has authorised several bodies to certify enterprises for IRIS standards. In May 2006, DQS issued the first IRIS certificate for HARTING Technology Group (Germany). Now about 10 enterprises have received this sort of certificate. By 2009 it is planned to give about 2000 IRIS certificates to European companies involved in the rail business, having prepared about 50 accredited DQS auditors.

STAGED DEVELOPMENT

Galina Mazilova, CEO of the DQS Russian department, believes that OAO RZD openly demonstrates its intention to be guided by modern international quality standards. Thus, the whole range of repair enterprises belonging to the corporation have launched the system of quality management and acquired ISO 9001 certificates. This is exactly what is required to undergo IRIS certification procedures in future.
“It is quite logical to presume that the next step of the above-mentioned enterprise will be an IRIS launch, – G.Mazilova believes. –IRIS will undoubtedly reach the railway sector, moreover, considering the fact that more and more structural departments of OAO RZD are acquiring ISO 9001 certificates. For example, rail-welding train
№ 8 of the Northern railway has already received ISO 9001 and OHSAS 18001 certificates of integrated system quality and labour protection. By the way, this enterprise has moved far ahead of other enterprises in the Russian railways in terms of international quality standards, having demonstrated high efficiency in these standards”.
According to Igor Aibadullayev, Head of rail-welding train № 8, the staff of his enterprise feel positive about an IRIS launch if only the OAO RZD Board would entrust them with such an important project. However, the enterprise worries for the future of integrated management system since the funds required for inspection audits to support certificates given by DQS are not allocated by the corporation.
“This particular case makes us think: how thoroughly was the OAO RZD functional strategy of quality management developed? - Alexander Zakharov, Head of the Department of Technical Regulation, Licensing and Metrology of the Northern Railway, emphasises. – A great number of big Russian enterprises cooperate with famous foreign certification bodies, whose certificates are valid all over the world and constitute a pass to the global market. The same policy applies for the domestic plants who manufacture railway machinery. However, railways give no certainty as to whether OAO RZD departments cooperate with foreign certification bodies or manage with only a railway Register? What is the future of the pilot projects on certification implemented on the railways? Will the railway Register join the international IQNet like the biggest Russian certification bodies? Will structural units on quality management be organised at railways?”
In the opinion of A.Zakharov, these fundamental questions need to be answered before the large-scale work on quality management system launches starts on railways. Moreover, IRIS introduction and experts training is to be started on the prepared base only after the launch of ISO 9001 standard has been completed widely on the railway network. Particular attention is to be paid to auditors’ and consultants’ training since recently a negative tendency in this field can be observed. Now many education centres are ready to take the responsibility of preparing such experts, despite having no experience and untrained tutors.
Nikolay Yuryev

reference

A pilot project on quality management system development and launch was implemented at Northern railway in 2002. Rail-welding train № 8 (RWT¬8) was chosen as a basic enterprise. This one was not of high efficiency, though strategically important for railway functioning.  In its preparation for certification, the bottle-necks in production were found, and reconstruction and technical re-equipment worth RUR 100 million was performed.
By 2004 a launched quality management system was certified for ISO 9001 standard by three bodies: domestic Register of certification of the federal railway transport, German DQS and VSB ZERT centres. In 2005 the enterprise received an OHSAS 18001 labour protection certificate.
The launched integrated system has already proved its efficiency. The annual economic benefit now amounts to RUR 12 million. Thus, an insignificant department has turned into a leader.

viewpoint

Alexander LipatovAlexander Lipatov, OAO RZD Deputy Head of Technical Policy Department:
– OAO RZD does not consider such notions as “standard” or “certificate” as ends in themselves. It is much more important that requirements for production set by the corporation are fulfilled. IRIS is an internationally acknowledged standard for railway production suppliers. I believe, when choosing a supplier OAO RZD would do well to be guided by this standard where the basic requirements are formulated.
On the other hand, this policy carried out by OAO RZD will also allow it to feel confident on the world market of railway transport services. Any of our locomotive depots that correspond to IRIS standards and possess certificates are able to service foreign rolling stock. The major problem lies in the fact that the process of certification is connected with attracting foreign experts, which is quite costly. At the same time certificates issued by our railway Register are not acknowledged elsewhere in the world. This negatively influences the level of quality management. This is typical both for the corporation’s enterprises and Transmashholding plants as well, since their production often breaches world standards.
Cooperation with highly respected international certification organizations such as DQS, TUV, Lloyds Register, BIQ, Veritas allows a new level of production functioning to be reached. The experience of rail-welding train 8 can be given as an example. I think we are to launch a training centre on the basis of this railway, with a wider world standards launch to follow. Having certified this enterprise with IRIS we can show the world we have an enterprise which is able to service foreign companies. This will become our serious image breakthrough as, speaking honestly, OAO RZD enterprises can do many things on the European level, though they are not trained well enough to position themselves properly. This has only to be learned in the future.
At the same time OAO RZD has been developing corporate requirements to repair systems as well as those of service, corporate suppliers and quality management. The level of these requirements promises to rival world ones. Having developed this, we will realise we can easily get international standards and, thus, international recognition. 

[~DETAIL_TEXT] =>

INTERNATIONAL STANDARDS FOR THE RAIL INDUSTRY

According to Michael Drechsel, Director of DQS GmbH, his company plans to offer to OAO RZD services on building up and certifying IRIS systems. “Now the IRIS Committee on behalf of UNIFE recommends railways, including those of Russia, launch the new unified specialised sector standard, – M.Drechsel says. – This is a crucially important point for the biggest international suppliers (Siemens and Bombardier) who plan to enter the Russian market. Our certification body also sees great potential for IRIS development in the RF. This standard was developed for manufacturers who produce rolling stock and components; it also goes hand in hand with modern requirements for rolling stock servicing and repair quality”.
As an example M.Drechsel gives Deutsche Bahn where the Board is considering an opportunity to cooperate with suppliers whose production has been certified by IRIS which is explained by the fact that assessment of production given by every single supplier is quite expensive and uncomfortable.
IRIS standard was developed two years ago by UNIFE on the basis of internationally recognised ISO 9001 quality standards with specific consideration for rail transport. The necessity to develop a new standard was justified by numerous claims raised by rolling stock producers as well as suppliers. Manufacturers were not satisfied with the quality of supplied components and suppliers were not happy about the huge number of audits held to control production quality. In order to set mutually comfortable conditions for all sides, i.e. railway operators, rolling stock manufacturers and their suppliers, the decision to develop unified international standard for railway industry was made.
In the words of M.Drechsel, UNIFE has authorised several bodies to certify enterprises for IRIS standards. In May 2006, DQS issued the first IRIS certificate for HARTING Technology Group (Germany). Now about 10 enterprises have received this sort of certificate. By 2009 it is planned to give about 2000 IRIS certificates to European companies involved in the rail business, having prepared about 50 accredited DQS auditors.

STAGED DEVELOPMENT

Galina Mazilova, CEO of the DQS Russian department, believes that OAO RZD openly demonstrates its intention to be guided by modern international quality standards. Thus, the whole range of repair enterprises belonging to the corporation have launched the system of quality management and acquired ISO 9001 certificates. This is exactly what is required to undergo IRIS certification procedures in future.
“It is quite logical to presume that the next step of the above-mentioned enterprise will be an IRIS launch, – G.Mazilova believes. –IRIS will undoubtedly reach the railway sector, moreover, considering the fact that more and more structural departments of OAO RZD are acquiring ISO 9001 certificates. For example, rail-welding train
№ 8 of the Northern railway has already received ISO 9001 and OHSAS 18001 certificates of integrated system quality and labour protection. By the way, this enterprise has moved far ahead of other enterprises in the Russian railways in terms of international quality standards, having demonstrated high efficiency in these standards”.
According to Igor Aibadullayev, Head of rail-welding train № 8, the staff of his enterprise feel positive about an IRIS launch if only the OAO RZD Board would entrust them with such an important project. However, the enterprise worries for the future of integrated management system since the funds required for inspection audits to support certificates given by DQS are not allocated by the corporation.
“This particular case makes us think: how thoroughly was the OAO RZD functional strategy of quality management developed? - Alexander Zakharov, Head of the Department of Technical Regulation, Licensing and Metrology of the Northern Railway, emphasises. – A great number of big Russian enterprises cooperate with famous foreign certification bodies, whose certificates are valid all over the world and constitute a pass to the global market. The same policy applies for the domestic plants who manufacture railway machinery. However, railways give no certainty as to whether OAO RZD departments cooperate with foreign certification bodies or manage with only a railway Register? What is the future of the pilot projects on certification implemented on the railways? Will the railway Register join the international IQNet like the biggest Russian certification bodies? Will structural units on quality management be organised at railways?”
In the opinion of A.Zakharov, these fundamental questions need to be answered before the large-scale work on quality management system launches starts on railways. Moreover, IRIS introduction and experts training is to be started on the prepared base only after the launch of ISO 9001 standard has been completed widely on the railway network. Particular attention is to be paid to auditors’ and consultants’ training since recently a negative tendency in this field can be observed. Now many education centres are ready to take the responsibility of preparing such experts, despite having no experience and untrained tutors.
Nikolay Yuryev

reference

A pilot project on quality management system development and launch was implemented at Northern railway in 2002. Rail-welding train № 8 (RWT¬8) was chosen as a basic enterprise. This one was not of high efficiency, though strategically important for railway functioning.  In its preparation for certification, the bottle-necks in production were found, and reconstruction and technical re-equipment worth RUR 100 million was performed.
By 2004 a launched quality management system was certified for ISO 9001 standard by three bodies: domestic Register of certification of the federal railway transport, German DQS and VSB ZERT centres. In 2005 the enterprise received an OHSAS 18001 labour protection certificate.
The launched integrated system has already proved its efficiency. The annual economic benefit now amounts to RUR 12 million. Thus, an insignificant department has turned into a leader.

viewpoint

Alexander LipatovAlexander Lipatov, OAO RZD Deputy Head of Technical Policy Department:
– OAO RZD does not consider such notions as “standard” or “certificate” as ends in themselves. It is much more important that requirements for production set by the corporation are fulfilled. IRIS is an internationally acknowledged standard for railway production suppliers. I believe, when choosing a supplier OAO RZD would do well to be guided by this standard where the basic requirements are formulated.
On the other hand, this policy carried out by OAO RZD will also allow it to feel confident on the world market of railway transport services. Any of our locomotive depots that correspond to IRIS standards and possess certificates are able to service foreign rolling stock. The major problem lies in the fact that the process of certification is connected with attracting foreign experts, which is quite costly. At the same time certificates issued by our railway Register are not acknowledged elsewhere in the world. This negatively influences the level of quality management. This is typical both for the corporation’s enterprises and Transmashholding plants as well, since their production often breaches world standards.
Cooperation with highly respected international certification organizations such as DQS, TUV, Lloyds Register, BIQ, Veritas allows a new level of production functioning to be reached. The experience of rail-welding train 8 can be given as an example. I think we are to launch a training centre on the basis of this railway, with a wider world standards launch to follow. Having certified this enterprise with IRIS we can show the world we have an enterprise which is able to service foreign companies. This will become our serious image breakthrough as, speaking honestly, OAO RZD enterprises can do many things on the European level, though they are not trained well enough to position themselves properly. This has only to be learned in the future.
At the same time OAO RZD has been developing corporate requirements to repair systems as well as those of service, corporate suppliers and quality management. The level of these requirements promises to rival world ones. Having developed this, we will realise we can easily get international standards and, thus, international recognition. 

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РЖД-Партнер

Panorama. Economics

Before 2015, forty terminal and logistics centres are to be constructed in the largest transport junctions of Russia as part of the framework of the Strategy of RF Railway Transport Development to 2030.
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OAO RZD: 40 Terminals by 2015

Before 2015, forty terminal and logistics centres are to be constructed in the largest transport junctions of Russia as part of the framework of the Strategy of RF Railway Transport Development to 2030.
35-40 terminal and logistics centres are just the first stage of the Strategy realisation from the logistics standpoint. Thus, the clients will be provided with a new level of quality logistics terminals and warehousing services. First of all, the terminal and logistics centres are to be built in Moscow (Kuntsevo, Kurskaya), the Moscow region (Beliy Rast), St. Petersburg (Shushary), Yekaterinburg, Nizhny Novgorod, Novosibirsk, Irkutsk, etc.
The development of a terminal and logistics centre network in key transport junctions will enable creation of a single technological and information area to fulfill all client’s requirements. Every terminal and logistics centre will be a large technological complex for servicing, warehousing, and customs clearance of cargoes and containers, providing a full range of additional services.   
For these terminal and logistics centres to work, participation is needed to form a single technological and information area for all transport modes (sea and road carriers, ports) and large cargo owners.

Tariffs on the Transsib to Be Fixed

At the 16th plenary session of the Coordinating Council on Transsiberian Transportation (CCTT), Deputy Transport Minister of the Russian Federation Alexander Misharin said that the special rates on transit cargo transportation by railway using the Transsiberian mainline (the Transsib) would be kept at 2007 levels. Their possible indexation will not exceed the inflation level.
Nowadays, the infrastructure constituent of the tariff on the route East – West is USD 900 for a loaded 40-foot container; on the route West – East it is USD 800 for a loaded 40-foot  container and USD 400 for an empty 40-foot container. On some destinations the tariffs are even lower.
Alexander Misharin highlighted that the tariffs are not detrimental for the railway, however, their profitability level is much lower than the export and import tariff rates. To increase the profitability it is necessary to attract additional volumes of cargo for transportation. A. Misharin believes that is the target for the business.

IPO of Russian Railways May Be Held after 2010

President of OAO RZD Vladimir Yakunin believes that a part of shares of OAO Russian Railways may be floated on the stock market after 2010. “A part of OAO RZD’s shares may be floated to construct new railways”, said Vladimir Yakunin at the Railway Congress.
He highlighted that the issue of OAO RZD’s shares selling may be discussed only after the third stage of state monopoly reform is completed, i.e. after 2010. “The shares may be floated. The necessary condition is that the state has full control for the railway infrastructure”, said the Head of OAO RZD.
“I consider it one of the ways the state supports railway transport and stimulates private investors”, added Vladimir Yakunin at a press-conference later.
OAO RZD could raise around 300 billion rubles (about $12 billion) from a public offering of 20% of its stock, VTB Bank CEO Andrei Kostin said.
Today OAO RZD is wholly-owned by the state and cannot hold an IPO. At the same time, OAO RZD could raise funds through the share offerings of its subsidiaries. 

IPO of TransContainer Postponed

OAO RZD postponed the IPO of OAO TransContainer until 2008, announced President of OAO RZD Vladimir Yakunin at the Railway Congress.
“The stock floatation had been planned before the so-called financial crisis took place. It has been decided to postpone it until 2008 because of the unfavourable situation on the stock markets”, said Vladimir Yakunin.  
Meanwhile, he emphasised that this year a private placement of the company’s shares would be held. “As for private placement, the documents are already signed and will be discussed at the next meeting of the Board of Directors”, stated Vladimir Yakunin.
Earlier, OAO RZD said it planned to float up to 15% shareholding of OAO TransContainer.

Russian Railways, Mitsui and Russian Troyka Have Reached a Consensus

On October 18, a Memorandum of Understanding was signed in Moscow by the Senior Vice-President of OAO Russian Railways Boris Lapidus, the Vice-President and Executive Director of Mitsui and Co. Ltd Tosikhiro Soedzimoy, and the Managing Director of ZAO Russian Troyka Vladimir Chisnakov.
According to the memorandum, the Japanese corporation Mitsui will provide Russian Troyka with freight for container transportation and also seek and attract clients in Japan and the countries of the Asia-Pacific region.
ZAO Russian Troyka will cooperate with Mitsui on organising container transportation on specific routes with the assistance of OAO Russian Railways.
Answering questions from journalists, Boris Lapidus emphasised the advantages of freight transportation by rail container, pointing out that overland delivery from Japan to Russia by the Trans-Siberian Main Line took 18 days compared to 45 days by sea. He also suggested that the freight flow between Russia and Japan would increase due to the increase of production in the two states and the growth of goods turnover.

Russian Federal Road Network to Enlarge by 500 km in 2007

The Federal Road Agency (Rosavtodor) plans to construct over 1,000 km of new roads in 2008, and over 1,500 km in 2009, said the Head of the Agency Oleg Belozerov. “This year the Federal road network will enlarge by 500 km”, he claimed.
In his words, next year will see the construction of federal roads Chita-Khabarovsk, “Don”, and federal motorways M-5 “Ural”, M-7 “Volga”, the motorways by-passing Sochi and Novosibirsk.
Oleg Belozerov noted that over 5,000 km of Russian roads are to be repaired. This year the figure is 3,500 km. “Nowadays, in Russia that is only 37% of normal roads, and we are going to improve the figure”, he said.
The Head of Rosavtodor also mentioned that to build and reconstruct the Russian roads, RUR 251 billion is to be given from the budget and over RUR 40 billion from the Investment Fund. In 2007 only RUR 223 billion was given from the RF budget for roads development.
According to O. Belozerov, the new strategy of transport system development in the Russian Federation in 2010-2015 is to be discussed. “This strategy also envisages the road sector development. In particular, according to it, over 60,000 km of roads is to be constructed in the RF. Over RUR 7 trillion will be invested to carry out the strategy”, said Oleg Belozerov.

Thales Is Eager to Cooperate with OAO RZD

The French company Thales plans to cooperate with OAO Russian Railways on delivery of traffic safety systems, said the company’s Executive President Olivier Houssin.
In his words, delivery of the systems for railway and air traffic management is the key activities of Thales in Russia.
Olivier Houssin highlighted that the company’s aim is strategic partnership and cooperation in technologies. “We are going to cooperate with Russian partners by either purchasing a minority shareholding in their authorized capital or launching a joint venture”, he said. Olivier Houssin did not say how much the company planned to invest in Russia. He just mentioned the investment volume would be “significant”.
He also noted the company is interested in the Russian oil and gas sector. According to him, Thales has cooperated with Gazprom for 15 years. The total volume of the contracts with the company has amounted to EUR 500 million. 

EU Gives EUR 3.5 Million to Liquidate Queues on RF Borders 

On October 25, the European Parliament supported the decision to give EUR 3.5 million to solve the problem of queues on the borders of European countries with Russia in 2008.
The money will be spent on construction of parking for trucks on the Latvian-Russian, Estonian-Russian and Finnish-Russian borders.
Because of insufficient capacity, queues run for 40 kilometres on the borders of Russia and the EU member states. Thousands of trucks loaded with goods exported to Russia idle there. Before now, money has been given only for parking construction.
If the project is a success, the EU will provide additional investments in 2009-2010 to modernise the border with Russia. 

Law “On Roads and Road Activities” Approved in Russia    

The upper chamber of the Russian parliament approved the law “On Roads and Road Activities” on October 26.
The law implements the classification of roads and the form of property. It also envisages the creation of a list of motorways of federal and regional importance.
The law also defines the powers of the Russian Federation, the RF subjects and local governments concerning roads and road activities. 
According to the law, charging fees for road usage is possible only if new roads are built or the existing ones are reconstructed. In centres of population, only toll roads may be built.

Sukhoi, Sberbank Sign Loan Deal Worth USD 134 Million

Sukhoi Civil Aircraft, a subsidiary of Sukhoi, and Russia’s state-run bank, Sberbank, agreed a 10-year loan worth EUR 100 million ($134 million) to finance the SuperJet 100 regional aircraft.
The SuperJet 100 project is a family of medium-range passenger aircraft developed by the Sukhoi Design Bureau in cooperation with major American and European aviation corporations, including Boeing, Snecma, Thales, Messier Dowty, Liebherr Aerospace, and Honeywell.
The company said that the loan will be used to purchase equipment and modernise production capacity, and also to start factory production and sales of the aircraft.
Sukhoi plans to produce at least 700 RRJs, and intends to sell 35% of them to North America, 25% to Europe, 10% to Latin America, and 7% to Russia and China.
So far, Sukhoi has secured over 70 orders for its regional aircraft and expects to increase the number to 100 by the end of the year. Aeroflot, Russia’s leading air carrier, is one of its largest clients, with contracts for the delivery of at least 45 planes.
The company held in September the first public presentation of the SuperJet 100 and said it was planning to start the first deliveries of the aircraft to customers in early 2008.
The catalogue price of a 95-seat basic version is $28 million, but the company is currently working on both smaller and larger capacity models of the SuperJet 100 series.
 

 

[~DETAIL_TEXT] =>

OAO RZD: 40 Terminals by 2015

Before 2015, forty terminal and logistics centres are to be constructed in the largest transport junctions of Russia as part of the framework of the Strategy of RF Railway Transport Development to 2030.
35-40 terminal and logistics centres are just the first stage of the Strategy realisation from the logistics standpoint. Thus, the clients will be provided with a new level of quality logistics terminals and warehousing services. First of all, the terminal and logistics centres are to be built in Moscow (Kuntsevo, Kurskaya), the Moscow region (Beliy Rast), St. Petersburg (Shushary), Yekaterinburg, Nizhny Novgorod, Novosibirsk, Irkutsk, etc.
The development of a terminal and logistics centre network in key transport junctions will enable creation of a single technological and information area to fulfill all client’s requirements. Every terminal and logistics centre will be a large technological complex for servicing, warehousing, and customs clearance of cargoes and containers, providing a full range of additional services.   
For these terminal and logistics centres to work, participation is needed to form a single technological and information area for all transport modes (sea and road carriers, ports) and large cargo owners.

Tariffs on the Transsib to Be Fixed

At the 16th plenary session of the Coordinating Council on Transsiberian Transportation (CCTT), Deputy Transport Minister of the Russian Federation Alexander Misharin said that the special rates on transit cargo transportation by railway using the Transsiberian mainline (the Transsib) would be kept at 2007 levels. Their possible indexation will not exceed the inflation level.
Nowadays, the infrastructure constituent of the tariff on the route East – West is USD 900 for a loaded 40-foot container; on the route West – East it is USD 800 for a loaded 40-foot  container and USD 400 for an empty 40-foot container. On some destinations the tariffs are even lower.
Alexander Misharin highlighted that the tariffs are not detrimental for the railway, however, their profitability level is much lower than the export and import tariff rates. To increase the profitability it is necessary to attract additional volumes of cargo for transportation. A. Misharin believes that is the target for the business.

IPO of Russian Railways May Be Held after 2010

President of OAO RZD Vladimir Yakunin believes that a part of shares of OAO Russian Railways may be floated on the stock market after 2010. “A part of OAO RZD’s shares may be floated to construct new railways”, said Vladimir Yakunin at the Railway Congress.
He highlighted that the issue of OAO RZD’s shares selling may be discussed only after the third stage of state monopoly reform is completed, i.e. after 2010. “The shares may be floated. The necessary condition is that the state has full control for the railway infrastructure”, said the Head of OAO RZD.
“I consider it one of the ways the state supports railway transport and stimulates private investors”, added Vladimir Yakunin at a press-conference later.
OAO RZD could raise around 300 billion rubles (about $12 billion) from a public offering of 20% of its stock, VTB Bank CEO Andrei Kostin said.
Today OAO RZD is wholly-owned by the state and cannot hold an IPO. At the same time, OAO RZD could raise funds through the share offerings of its subsidiaries. 

IPO of TransContainer Postponed

OAO RZD postponed the IPO of OAO TransContainer until 2008, announced President of OAO RZD Vladimir Yakunin at the Railway Congress.
“The stock floatation had been planned before the so-called financial crisis took place. It has been decided to postpone it until 2008 because of the unfavourable situation on the stock markets”, said Vladimir Yakunin.  
Meanwhile, he emphasised that this year a private placement of the company’s shares would be held. “As for private placement, the documents are already signed and will be discussed at the next meeting of the Board of Directors”, stated Vladimir Yakunin.
Earlier, OAO RZD said it planned to float up to 15% shareholding of OAO TransContainer.

Russian Railways, Mitsui and Russian Troyka Have Reached a Consensus

On October 18, a Memorandum of Understanding was signed in Moscow by the Senior Vice-President of OAO Russian Railways Boris Lapidus, the Vice-President and Executive Director of Mitsui and Co. Ltd Tosikhiro Soedzimoy, and the Managing Director of ZAO Russian Troyka Vladimir Chisnakov.
According to the memorandum, the Japanese corporation Mitsui will provide Russian Troyka with freight for container transportation and also seek and attract clients in Japan and the countries of the Asia-Pacific region.
ZAO Russian Troyka will cooperate with Mitsui on organising container transportation on specific routes with the assistance of OAO Russian Railways.
Answering questions from journalists, Boris Lapidus emphasised the advantages of freight transportation by rail container, pointing out that overland delivery from Japan to Russia by the Trans-Siberian Main Line took 18 days compared to 45 days by sea. He also suggested that the freight flow between Russia and Japan would increase due to the increase of production in the two states and the growth of goods turnover.

Russian Federal Road Network to Enlarge by 500 km in 2007

The Federal Road Agency (Rosavtodor) plans to construct over 1,000 km of new roads in 2008, and over 1,500 km in 2009, said the Head of the Agency Oleg Belozerov. “This year the Federal road network will enlarge by 500 km”, he claimed.
In his words, next year will see the construction of federal roads Chita-Khabarovsk, “Don”, and federal motorways M-5 “Ural”, M-7 “Volga”, the motorways by-passing Sochi and Novosibirsk.
Oleg Belozerov noted that over 5,000 km of Russian roads are to be repaired. This year the figure is 3,500 km. “Nowadays, in Russia that is only 37% of normal roads, and we are going to improve the figure”, he said.
The Head of Rosavtodor also mentioned that to build and reconstruct the Russian roads, RUR 251 billion is to be given from the budget and over RUR 40 billion from the Investment Fund. In 2007 only RUR 223 billion was given from the RF budget for roads development.
According to O. Belozerov, the new strategy of transport system development in the Russian Federation in 2010-2015 is to be discussed. “This strategy also envisages the road sector development. In particular, according to it, over 60,000 km of roads is to be constructed in the RF. Over RUR 7 trillion will be invested to carry out the strategy”, said Oleg Belozerov.

Thales Is Eager to Cooperate with OAO RZD

The French company Thales plans to cooperate with OAO Russian Railways on delivery of traffic safety systems, said the company’s Executive President Olivier Houssin.
In his words, delivery of the systems for railway and air traffic management is the key activities of Thales in Russia.
Olivier Houssin highlighted that the company’s aim is strategic partnership and cooperation in technologies. “We are going to cooperate with Russian partners by either purchasing a minority shareholding in their authorized capital or launching a joint venture”, he said. Olivier Houssin did not say how much the company planned to invest in Russia. He just mentioned the investment volume would be “significant”.
He also noted the company is interested in the Russian oil and gas sector. According to him, Thales has cooperated with Gazprom for 15 years. The total volume of the contracts with the company has amounted to EUR 500 million. 

EU Gives EUR 3.5 Million to Liquidate Queues on RF Borders 

On October 25, the European Parliament supported the decision to give EUR 3.5 million to solve the problem of queues on the borders of European countries with Russia in 2008.
The money will be spent on construction of parking for trucks on the Latvian-Russian, Estonian-Russian and Finnish-Russian borders.
Because of insufficient capacity, queues run for 40 kilometres on the borders of Russia and the EU member states. Thousands of trucks loaded with goods exported to Russia idle there. Before now, money has been given only for parking construction.
If the project is a success, the EU will provide additional investments in 2009-2010 to modernise the border with Russia. 

Law “On Roads and Road Activities” Approved in Russia    

The upper chamber of the Russian parliament approved the law “On Roads and Road Activities” on October 26.
The law implements the classification of roads and the form of property. It also envisages the creation of a list of motorways of federal and regional importance.
The law also defines the powers of the Russian Federation, the RF subjects and local governments concerning roads and road activities. 
According to the law, charging fees for road usage is possible only if new roads are built or the existing ones are reconstructed. In centres of population, only toll roads may be built.

Sukhoi, Sberbank Sign Loan Deal Worth USD 134 Million

Sukhoi Civil Aircraft, a subsidiary of Sukhoi, and Russia’s state-run bank, Sberbank, agreed a 10-year loan worth EUR 100 million ($134 million) to finance the SuperJet 100 regional aircraft.
The SuperJet 100 project is a family of medium-range passenger aircraft developed by the Sukhoi Design Bureau in cooperation with major American and European aviation corporations, including Boeing, Snecma, Thales, Messier Dowty, Liebherr Aerospace, and Honeywell.
The company said that the loan will be used to purchase equipment and modernise production capacity, and also to start factory production and sales of the aircraft.
Sukhoi plans to produce at least 700 RRJs, and intends to sell 35% of them to North America, 25% to Europe, 10% to Latin America, and 7% to Russia and China.
So far, Sukhoi has secured over 70 orders for its regional aircraft and expects to increase the number to 100 by the end of the year. Aeroflot, Russia’s leading air carrier, is one of its largest clients, with contracts for the delivery of at least 45 planes.
The company held in September the first public presentation of the SuperJet 100 and said it was planning to start the first deliveries of the aircraft to customers in early 2008.
The catalogue price of a 95-seat basic version is $28 million, but the company is currently working on both smaller and larger capacity models of the SuperJet 100 series.
 

 

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OAO RZD: 40 Terminals by 2015

Before 2015, forty terminal and logistics centres are to be constructed in the largest transport junctions of Russia as part of the framework of the Strategy of RF Railway Transport Development to 2030.
35-40 terminal and logistics centres are just the first stage of the Strategy realisation from the logistics standpoint. Thus, the clients will be provided with a new level of quality logistics terminals and warehousing services. First of all, the terminal and logistics centres are to be built in Moscow (Kuntsevo, Kurskaya), the Moscow region (Beliy Rast), St. Petersburg (Shushary), Yekaterinburg, Nizhny Novgorod, Novosibirsk, Irkutsk, etc.
The development of a terminal and logistics centre network in key transport junctions will enable creation of a single technological and information area to fulfill all client’s requirements. Every terminal and logistics centre will be a large technological complex for servicing, warehousing, and customs clearance of cargoes and containers, providing a full range of additional services.   
For these terminal and logistics centres to work, participation is needed to form a single technological and information area for all transport modes (sea and road carriers, ports) and large cargo owners.

Tariffs on the Transsib to Be Fixed

At the 16th plenary session of the Coordinating Council on Transsiberian Transportation (CCTT), Deputy Transport Minister of the Russian Federation Alexander Misharin said that the special rates on transit cargo transportation by railway using the Transsiberian mainline (the Transsib) would be kept at 2007 levels. Their possible indexation will not exceed the inflation level.
Nowadays, the infrastructure constituent of the tariff on the route East – West is USD 900 for a loaded 40-foot container; on the route West – East it is USD 800 for a loaded 40-foot  container and USD 400 for an empty 40-foot container. On some destinations the tariffs are even lower.
Alexander Misharin highlighted that the tariffs are not detrimental for the railway, however, their profitability level is much lower than the export and import tariff rates. To increase the profitability it is necessary to attract additional volumes of cargo for transportation. A. Misharin believes that is the target for the business.

IPO of Russian Railways May Be Held after 2010

President of OAO RZD Vladimir Yakunin believes that a part of shares of OAO Russian Railways may be floated on the stock market after 2010. “A part of OAO RZD’s shares may be floated to construct new railways”, said Vladimir Yakunin at the Railway Congress.
He highlighted that the issue of OAO RZD’s shares selling may be discussed only after the third stage of state monopoly reform is completed, i.e. after 2010. “The shares may be floated. The necessary condition is that the state has full control for the railway infrastructure”, said the Head of OAO RZD.
“I consider it one of the ways the state supports railway transport and stimulates private investors”, added Vladimir Yakunin at a press-conference later.
OAO RZD could raise around 300 billion rubles (about $12 billion) from a public offering of 20% of its stock, VTB Bank CEO Andrei Kostin said.
Today OAO RZD is wholly-owned by the state and cannot hold an IPO. At the same time, OAO RZD could raise funds through the share offerings of its subsidiaries. 

IPO of TransContainer Postponed

OAO RZD postponed the IPO of OAO TransContainer until 2008, announced President of OAO RZD Vladimir Yakunin at the Railway Congress.
“The stock floatation had been planned before the so-called financial crisis took place. It has been decided to postpone it until 2008 because of the unfavourable situation on the stock markets”, said Vladimir Yakunin.  
Meanwhile, he emphasised that this year a private placement of the company’s shares would be held. “As for private placement, the documents are already signed and will be discussed at the next meeting of the Board of Directors”, stated Vladimir Yakunin.
Earlier, OAO RZD said it planned to float up to 15% shareholding of OAO TransContainer.

Russian Railways, Mitsui and Russian Troyka Have Reached a Consensus

On October 18, a Memorandum of Understanding was signed in Moscow by the Senior Vice-President of OAO Russian Railways Boris Lapidus, the Vice-President and Executive Director of Mitsui and Co. Ltd Tosikhiro Soedzimoy, and the Managing Director of ZAO Russian Troyka Vladimir Chisnakov.
According to the memorandum, the Japanese corporation Mitsui will provide Russian Troyka with freight for container transportation and also seek and attract clients in Japan and the countries of the Asia-Pacific region.
ZAO Russian Troyka will cooperate with Mitsui on organising container transportation on specific routes with the assistance of OAO Russian Railways.
Answering questions from journalists, Boris Lapidus emphasised the advantages of freight transportation by rail container, pointing out that overland delivery from Japan to Russia by the Trans-Siberian Main Line took 18 days compared to 45 days by sea. He also suggested that the freight flow between Russia and Japan would increase due to the increase of production in the two states and the growth of goods turnover.

Russian Federal Road Network to Enlarge by 500 km in 2007

The Federal Road Agency (Rosavtodor) plans to construct over 1,000 km of new roads in 2008, and over 1,500 km in 2009, said the Head of the Agency Oleg Belozerov. “This year the Federal road network will enlarge by 500 km”, he claimed.
In his words, next year will see the construction of federal roads Chita-Khabarovsk, “Don”, and federal motorways M-5 “Ural”, M-7 “Volga”, the motorways by-passing Sochi and Novosibirsk.
Oleg Belozerov noted that over 5,000 km of Russian roads are to be repaired. This year the figure is 3,500 km. “Nowadays, in Russia that is only 37% of normal roads, and we are going to improve the figure”, he said.
The Head of Rosavtodor also mentioned that to build and reconstruct the Russian roads, RUR 251 billion is to be given from the budget and over RUR 40 billion from the Investment Fund. In 2007 only RUR 223 billion was given from the RF budget for roads development.
According to O. Belozerov, the new strategy of transport system development in the Russian Federation in 2010-2015 is to be discussed. “This strategy also envisages the road sector development. In particular, according to it, over 60,000 km of roads is to be constructed in the RF. Over RUR 7 trillion will be invested to carry out the strategy”, said Oleg Belozerov.

Thales Is Eager to Cooperate with OAO RZD

The French company Thales plans to cooperate with OAO Russian Railways on delivery of traffic safety systems, said the company’s Executive President Olivier Houssin.
In his words, delivery of the systems for railway and air traffic management is the key activities of Thales in Russia.
Olivier Houssin highlighted that the company’s aim is strategic partnership and cooperation in technologies. “We are going to cooperate with Russian partners by either purchasing a minority shareholding in their authorized capital or launching a joint venture”, he said. Olivier Houssin did not say how much the company planned to invest in Russia. He just mentioned the investment volume would be “significant”.
He also noted the company is interested in the Russian oil and gas sector. According to him, Thales has cooperated with Gazprom for 15 years. The total volume of the contracts with the company has amounted to EUR 500 million. 

EU Gives EUR 3.5 Million to Liquidate Queues on RF Borders 

On October 25, the European Parliament supported the decision to give EUR 3.5 million to solve the problem of queues on the borders of European countries with Russia in 2008.
The money will be spent on construction of parking for trucks on the Latvian-Russian, Estonian-Russian and Finnish-Russian borders.
Because of insufficient capacity, queues run for 40 kilometres on the borders of Russia and the EU member states. Thousands of trucks loaded with goods exported to Russia idle there. Before now, money has been given only for parking construction.
If the project is a success, the EU will provide additional investments in 2009-2010 to modernise the border with Russia. 

Law “On Roads and Road Activities” Approved in Russia    

The upper chamber of the Russian parliament approved the law “On Roads and Road Activities” on October 26.
The law implements the classification of roads and the form of property. It also envisages the creation of a list of motorways of federal and regional importance.
The law also defines the powers of the Russian Federation, the RF subjects and local governments concerning roads and road activities. 
According to the law, charging fees for road usage is possible only if new roads are built or the existing ones are reconstructed. In centres of population, only toll roads may be built.

Sukhoi, Sberbank Sign Loan Deal Worth USD 134 Million

Sukhoi Civil Aircraft, a subsidiary of Sukhoi, and Russia’s state-run bank, Sberbank, agreed a 10-year loan worth EUR 100 million ($134 million) to finance the SuperJet 100 regional aircraft.
The SuperJet 100 project is a family of medium-range passenger aircraft developed by the Sukhoi Design Bureau in cooperation with major American and European aviation corporations, including Boeing, Snecma, Thales, Messier Dowty, Liebherr Aerospace, and Honeywell.
The company said that the loan will be used to purchase equipment and modernise production capacity, and also to start factory production and sales of the aircraft.
Sukhoi plans to produce at least 700 RRJs, and intends to sell 35% of them to North America, 25% to Europe, 10% to Latin America, and 7% to Russia and China.
So far, Sukhoi has secured over 70 orders for its regional aircraft and expects to increase the number to 100 by the end of the year. Aeroflot, Russia’s leading air carrier, is one of its largest clients, with contracts for the delivery of at least 45 planes.
The company held in September the first public presentation of the SuperJet 100 and said it was planning to start the first deliveries of the aircraft to customers in early 2008.
The catalogue price of a 95-seat basic version is $28 million, but the company is currently working on both smaller and larger capacity models of the SuperJet 100 series.
 

 

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OAO RZD: 40 Terminals by 2015

Before 2015, forty terminal and logistics centres are to be constructed in the largest transport junctions of Russia as part of the framework of the Strategy of RF Railway Transport Development to 2030.
35-40 terminal and logistics centres are just the first stage of the Strategy realisation from the logistics standpoint. Thus, the clients will be provided with a new level of quality logistics terminals and warehousing services. First of all, the terminal and logistics centres are to be built in Moscow (Kuntsevo, Kurskaya), the Moscow region (Beliy Rast), St. Petersburg (Shushary), Yekaterinburg, Nizhny Novgorod, Novosibirsk, Irkutsk, etc.
The development of a terminal and logistics centre network in key transport junctions will enable creation of a single technological and information area to fulfill all client’s requirements. Every terminal and logistics centre will be a large technological complex for servicing, warehousing, and customs clearance of cargoes and containers, providing a full range of additional services.   
For these terminal and logistics centres to work, participation is needed to form a single technological and information area for all transport modes (sea and road carriers, ports) and large cargo owners.

Tariffs on the Transsib to Be Fixed

At the 16th plenary session of the Coordinating Council on Transsiberian Transportation (CCTT), Deputy Transport Minister of the Russian Federation Alexander Misharin said that the special rates on transit cargo transportation by railway using the Transsiberian mainline (the Transsib) would be kept at 2007 levels. Their possible indexation will not exceed the inflation level.
Nowadays, the infrastructure constituent of the tariff on the route East – West is USD 900 for a loaded 40-foot container; on the route West – East it is USD 800 for a loaded 40-foot  container and USD 400 for an empty 40-foot container. On some destinations the tariffs are even lower.
Alexander Misharin highlighted that the tariffs are not detrimental for the railway, however, their profitability level is much lower than the export and import tariff rates. To increase the profitability it is necessary to attract additional volumes of cargo for transportation. A. Misharin believes that is the target for the business.

IPO of Russian Railways May Be Held after 2010

President of OAO RZD Vladimir Yakunin believes that a part of shares of OAO Russian Railways may be floated on the stock market after 2010. “A part of OAO RZD’s shares may be floated to construct new railways”, said Vladimir Yakunin at the Railway Congress.
He highlighted that the issue of OAO RZD’s shares selling may be discussed only after the third stage of state monopoly reform is completed, i.e. after 2010. “The shares may be floated. The necessary condition is that the state has full control for the railway infrastructure”, said the Head of OAO RZD.
“I consider it one of the ways the state supports railway transport and stimulates private investors”, added Vladimir Yakunin at a press-conference later.
OAO RZD could raise around 300 billion rubles (about $12 billion) from a public offering of 20% of its stock, VTB Bank CEO Andrei Kostin said.
Today OAO RZD is wholly-owned by the state and cannot hold an IPO. At the same time, OAO RZD could raise funds through the share offerings of its subsidiaries. 

IPO of TransContainer Postponed

OAO RZD postponed the IPO of OAO TransContainer until 2008, announced President of OAO RZD Vladimir Yakunin at the Railway Congress.
“The stock floatation had been planned before the so-called financial crisis took place. It has been decided to postpone it until 2008 because of the unfavourable situation on the stock markets”, said Vladimir Yakunin.  
Meanwhile, he emphasised that this year a private placement of the company’s shares would be held. “As for private placement, the documents are already signed and will be discussed at the next meeting of the Board of Directors”, stated Vladimir Yakunin.
Earlier, OAO RZD said it planned to float up to 15% shareholding of OAO TransContainer.

Russian Railways, Mitsui and Russian Troyka Have Reached a Consensus

On October 18, a Memorandum of Understanding was signed in Moscow by the Senior Vice-President of OAO Russian Railways Boris Lapidus, the Vice-President and Executive Director of Mitsui and Co. Ltd Tosikhiro Soedzimoy, and the Managing Director of ZAO Russian Troyka Vladimir Chisnakov.
According to the memorandum, the Japanese corporation Mitsui will provide Russian Troyka with freight for container transportation and also seek and attract clients in Japan and the countries of the Asia-Pacific region.
ZAO Russian Troyka will cooperate with Mitsui on organising container transportation on specific routes with the assistance of OAO Russian Railways.
Answering questions from journalists, Boris Lapidus emphasised the advantages of freight transportation by rail container, pointing out that overland delivery from Japan to Russia by the Trans-Siberian Main Line took 18 days compared to 45 days by sea. He also suggested that the freight flow between Russia and Japan would increase due to the increase of production in the two states and the growth of goods turnover.

Russian Federal Road Network to Enlarge by 500 km in 2007

The Federal Road Agency (Rosavtodor) plans to construct over 1,000 km of new roads in 2008, and over 1,500 km in 2009, said the Head of the Agency Oleg Belozerov. “This year the Federal road network will enlarge by 500 km”, he claimed.
In his words, next year will see the construction of federal roads Chita-Khabarovsk, “Don”, and federal motorways M-5 “Ural”, M-7 “Volga”, the motorways by-passing Sochi and Novosibirsk.
Oleg Belozerov noted that over 5,000 km of Russian roads are to be repaired. This year the figure is 3,500 km. “Nowadays, in Russia that is only 37% of normal roads, and we are going to improve the figure”, he said.
The Head of Rosavtodor also mentioned that to build and reconstruct the Russian roads, RUR 251 billion is to be given from the budget and over RUR 40 billion from the Investment Fund. In 2007 only RUR 223 billion was given from the RF budget for roads development.
According to O. Belozerov, the new strategy of transport system development in the Russian Federation in 2010-2015 is to be discussed. “This strategy also envisages the road sector development. In particular, according to it, over 60,000 km of roads is to be constructed in the RF. Over RUR 7 trillion will be invested to carry out the strategy”, said Oleg Belozerov.

Thales Is Eager to Cooperate with OAO RZD

The French company Thales plans to cooperate with OAO Russian Railways on delivery of traffic safety systems, said the company’s Executive President Olivier Houssin.
In his words, delivery of the systems for railway and air traffic management is the key activities of Thales in Russia.
Olivier Houssin highlighted that the company’s aim is strategic partnership and cooperation in technologies. “We are going to cooperate with Russian partners by either purchasing a minority shareholding in their authorized capital or launching a joint venture”, he said. Olivier Houssin did not say how much the company planned to invest in Russia. He just mentioned the investment volume would be “significant”.
He also noted the company is interested in the Russian oil and gas sector. According to him, Thales has cooperated with Gazprom for 15 years. The total volume of the contracts with the company has amounted to EUR 500 million. 

EU Gives EUR 3.5 Million to Liquidate Queues on RF Borders 

On October 25, the European Parliament supported the decision to give EUR 3.5 million to solve the problem of queues on the borders of European countries with Russia in 2008.
The money will be spent on construction of parking for trucks on the Latvian-Russian, Estonian-Russian and Finnish-Russian borders.
Because of insufficient capacity, queues run for 40 kilometres on the borders of Russia and the EU member states. Thousands of trucks loaded with goods exported to Russia idle there. Before now, money has been given only for parking construction.
If the project is a success, the EU will provide additional investments in 2009-2010 to modernise the border with Russia. 

Law “On Roads and Road Activities” Approved in Russia    

The upper chamber of the Russian parliament approved the law “On Roads and Road Activities” on October 26.
The law implements the classification of roads and the form of property. It also envisages the creation of a list of motorways of federal and regional importance.
The law also defines the powers of the Russian Federation, the RF subjects and local governments concerning roads and road activities. 
According to the law, charging fees for road usage is possible only if new roads are built or the existing ones are reconstructed. In centres of population, only toll roads may be built.

Sukhoi, Sberbank Sign Loan Deal Worth USD 134 Million

Sukhoi Civil Aircraft, a subsidiary of Sukhoi, and Russia’s state-run bank, Sberbank, agreed a 10-year loan worth EUR 100 million ($134 million) to finance the SuperJet 100 regional aircraft.
The SuperJet 100 project is a family of medium-range passenger aircraft developed by the Sukhoi Design Bureau in cooperation with major American and European aviation corporations, including Boeing, Snecma, Thales, Messier Dowty, Liebherr Aerospace, and Honeywell.
The company said that the loan will be used to purchase equipment and modernise production capacity, and also to start factory production and sales of the aircraft.
Sukhoi plans to produce at least 700 RRJs, and intends to sell 35% of them to North America, 25% to Europe, 10% to Latin America, and 7% to Russia and China.
So far, Sukhoi has secured over 70 orders for its regional aircraft and expects to increase the number to 100 by the end of the year. Aeroflot, Russia’s leading air carrier, is one of its largest clients, with contracts for the delivery of at least 45 planes.
The company held in September the first public presentation of the SuperJet 100 and said it was planning to start the first deliveries of the aircraft to customers in early 2008.
The catalogue price of a 95-seat basic version is $28 million, but the company is currently working on both smaller and larger capacity models of the SuperJet 100 series.
 

 

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РЖД-Партнер

Too many passengers for too few coaches

 ОАО RZD has been searching the way out to solve the problem with the passengers rolling stock deficit from a long-term perspective. The present situation shows that the Russian industry is unable to cope with this deficit that makes the corporation take active steps to launch their own production. The major hope in this respect is laid upon cooperation with foreign companies who operate innovative modern technologies.
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The Deficit is increasing

One fact can clearly show how important the problem of design and manufacture of modern coaches for the corporation. Thus, last April during the exhibition of passengers’ rolling stock the Head of Passenger Directorate of OAO RZD, Valery Shatayev was the most fastidious visitor. He tried to clarify all the possible details: checked video and stereo systems, inquired about bogies’ construction and took keen interest in how the coach feels while running, etc. Having analysed the current state of the passenger rolling stock of the company this interest can be easily understood.
Nowadays the Passenger Directorate of OAO RZD operates 25 thousand units of rolling stock.
Considering wear-and-tear period and passenger turnover growth to sustain the park on the needed level and provide required renewal the company has to purchase about 1.2 thousand new coaches annually. However, the purchase volume doesn’t allow it to liquidate deficit which is explained by quite limited industrial capacities as well as financial opportunities for the carrier. Thus, in 1992 railways got 1.615 rolling stock units, in 1998 this number amounted to only 183 units. Starting from 2000 the rolling stock park has decreased by 5% and the volume of worn rolling stock units totals to 25%.
As a result by 2015 the annual volume of deficit will make 370 coaches. At the same time the level of wear-and-tear amounts to 65% and, for certain types of the rolling stock, makes 80%. In 2006–2007 the company has to get rid of 10% of the park, 40% units more are operated over 19 years and 70% of coaches are not equipped with air-conditioning systems.
It should be noted that the number of manufactured rolling stock has practically reached the required volume, though this is the ultimate volume for producers.
According to the Passenger Directorate of OAO RZD, in 2006 the company purchased 735 coaches worth RUR 12 billion, including 61 units acquired by the corporation own funds and 674 within leasing schemes. Plans for 2007 are more impressive i.e. about 911 coaches are to be purchased with the cost of RUR 16.3 billion
(+176 units year-on-year) from the above-mentioned number 343 units are acquired at company’s own funds and leasing contracts work for the rest 568 coaches.
Under conditions of maximum use of industrial capacities investment plan for the period of 2008–2010 looks as follows:
• 2008 – 1139 units worth RUR 22.029 billion;
• 2009 – 1293 units worth RUR 29.791 billion;
• 2010 – 1410 units worth RUR 36 billion;
Federal Directorate experts single out five key directions for the area of new rolling stock construction and improvement within the short-term perspective:
• expanding the typical range of passenger coaches;
• renewal of the rolling stock for international transportation and purchase high comfort coaches;
• development of innovative rolling stock for high-speed transportation;
• improvement general parameters of production coaches;
• development of infrastructure for new-generation rolling stock servicing.
There is a good reason to comment on some of the above-mentioned aspects since they clearly show the major direction of car production development as well as that of the whole passenger complex.

Do it yourself

In September 2006, with the aim to cover the deficit, OAO RZD made the decision to start its own production of passenger rolling stock on the base of Vagonremmash enterprises. Actually this means a new market player arrival through joining the minority together with Vagonmash JSC and Tsirkon-Service JSC who manufacture small volumes for specific market niches. The monopolist on this market is Tver Car Engineering plant which takes 95% of the Russian market and joins Transmashholding JSC.
In the words of Vladimir Pashkevich, the acting head of Vagonremmash, now in accordance with the decision of OAO RZD Board, seven repair plants have been turned into daughter companies. They are Vologodsky Repair Plant, Alatyrsky Car Engineering Plant, Vladikavkazsky Car Engineering Plant, Moscow Car Engineering Plant “Red way”, Moscow Car Engineering Plant, Petukhovsky Car Engineering Plant and Krasnoyarsk Car Engineering Plant. Vagomremmash in its turn has been taking steps to stop activities of these previous OAO RZD departments starting from July 1, 2008. Four of them together with Voronezhsky, Tambovsky and Novorossiysky Car Engineering Plants will be joined into the single structure and three enterprises will operate as OAO RZD daughter companies.
Manufacturing of double-deck stock will be launched at three enterprises: Voronezhsky, Tambovsky and Novorossiysky Car Engineering Plants. Under conditions of keeping their capacities on major repair and coaches modernisation their project capacities will make 250 units of rolling stock per year.
In the opinion of V.Pashkevich, certain aspects can balance OAO RZD and passenger turnover and new coaches purchase is to be guided by these very factors. Among basic ones he mentions:
• highly efficient satisfaction of the population needs in rolling stock;
• shortening the share of low-profitable coaches with low comfort parameters and their substitution by higher class units;
• increase of the coaches performing inter-regional runs to satisfy requirements of the population for short-distance transportation;
• rolling stock park renewal i.e. double-deck stock production

Longer run brings less repair

Besides extensive schemes of development OAO RZD follows another way of the park renewal. The company amends requirements set for new passenger rolling stock, their technical-operation parameters as well as financial-economic characteristics. New technologies of production and service typical for the international community are to result in more solid reliability, greater capacity and comfort and, thus, cost saving for repair and operation and giving rise to profits per production unit and passenger-kilometre.
Generally speaking, according to the Passenger Directorate technical requirements for new rolling stock is to correspond to modern international standards and be based on the unified platforms. This sort of platform is produced as a module construction that allows construction of any coaches of the required configuration in accordance with the customer order. New machinery operation life will amount to 40 years with the period guarantee maintenance of 6 years and no repair run period worth 1 million kilometres. Preferences will be given to the systems with pneumatic car body setting, gapless automatic couplers, containment car-to-car communication, centralised power supply and plate brakes. This is explained by the opportunity to decrease operation costs due to reduction of expenditures on train traction, improvement its gliding properties as well as comfort parameters. Wood details are planned to be substituted by plastic components which demonstrate higher solidity and fire resistance.
By the way, the above-mentioned path was chosen by Tverskoy Car Engineering Plant who performs as a leader of the sector. In the words of Vladimir Shneidmuller, Deputy CEO on technical and technological policy of Transmashholding JSC, by 2010 the company plans to produce 1 thousand rail cars against 850 units manufactured in 2006. Next year Transmashholding plans to manufacture new models. Car bodies will be produced from corrosion-resistant steel that will increase normative operation period up to 40 years (now it is 28 years). Moreover, thanks to this sort of steel, no car body repair will be needed during the capital repair of the stock which looks like a significant advantage.
Innovations in doors construction and facing will allow to provide reliable maintenance in temperatures ranging from – -50°С to
+ 50°C
The model range is formed on the basic platform that will make it possible to develop, certify and produce new modifications for customers. In particular, an idea to construct models of open type coach for OAO RZD (no side berths, three berths are located above each other) was discussed.
VIP transportation brings the most
significant profit
In the course of pushing passenger transportation to profitability ОАО RZD develops two approaches: giving services on high comfort transportation and widening the range of services within social transportation.
The stake on comfort is quite reasonable from an economic point of view. This can be demonstrated by several private projects implemented within so-called VIP-transportation. The results are as follows: 109 high comfort trains were formed from 3.7 thousand coaches. Last year they transported 29 million passengers (+1 million year-on-year). The share of high comfort trains in the general volume of passenger transportation made 25% and in profits – 39%. Costs were covered by profits by 136% (under profits of RUR 32.2 billion). High comfort segment of OAO RZD in 2006 brought profit of RUR 8 billion against RUR 6 billion in 2005.
The same situation can be observed in high comfort coaches since their popularity grows by 750 thousand passengers annually. In 2001 the sector showed results of 2.6 million passengers, in 2005 – 6.4 million, and in 2006 increased by 16% – to 7.4 million. At the same time the number of high comfort coaches grew from 458 units in 2001 to 2251 coaches in 2006. During five recent years their share in the park boosted from 1.9% to 9% i.e. over four-fold.
By 2010 the number of high comfort coaches will grow twofold (to 4.5 thousand units) which will make 18% from aggregate park volume and by 2017 – already 29%.
In high comfort coaches a passenger can take a shower, surf the internet, watch videos and use stereo systems.
Moreover, ideas to satisfy more fastidious passengers are being developed. There are plans to develop a hyper-allergic coach, gym-coach and even a sauna coach.
In other words, the problem with new stock manufacturing has to do not only with the lack of required capacities or limited financial resources but also with new demands to the stock and, thus, with new innovative technologies development. Will the national industry meet the challenge? Quite probably, the answer will give rise to a number of interesting projects and one of them is double-deck stock production.

Double-Deck Stock Needed

The project of double-deck stock production envisages implementation of all the above-mentioned directions being developed at the moment: widening the model range, introduction of new modern requirements, comfort parameters improvement, etc. As was said above the new model will be produced at Vagonmash car engineering enterprise.
«The business plan developed by ОАО Giprotyazhmash shows that the most efficient way to launch production is to organise manufacturing at three enterprises. Thus, Voronezhsky Car Engineering Plant will produce car bodies, Tambovsky plant will concentrate on bogies and Novorossyisky – on electrical equipment», V.Pashkevich says.
Double deck rolling stock launch seems reasonable due to the following favourable opportunities:
• due to the launch of the unified base platform a reduction of 30–50% in terms of costs of models of different classes and functionality can be reached compared with present-day practices;
• operation life increase up to 40 years;
• increase of functioning lines carrying capacity by 20–30% without their enhancement;
• reduction of maintenance expenditures by 15–20%.
V.Pashkevich refers to VNIIZHT marketing data and believes that double-deck stock production is quite promising for the sector in terms of technical-economic parameters. Speaking of certain model constructions, experts suppose double-deck stock will be advantageous on the inter-regional routes offering coaches with seats and sleeping cars for long-distance transportation.
Initially choosing a partner, OAO RZD negotiated with the Finnish Transtech company, however, afterwards due to certain problems with permissive documents all interested world producers were invited to participate. In the words of V.Pashkevich, based on the results of consultations held by foreign car engineering companies, implementation of the project will take three years wherein two will be spent on technical documentation development and samples manufacturing and certification together with trial exploitation, which will take a year.

Summing Up

ОАО RZD and manufacturers, Transmashholding in particular, demonstrate modern approaches to car engineering i.e. they increase carrying capacities not only due to more intensive production of railroad cars but mostly thanks to intensive use of new technologies and service development. At the same time the corporation feels positive about cooperation with foreign partners to follow the course of world tendencies in the sector. Quite probably, in the near future Russia will turn from an importer of technologies to an exporter. Most profit from this export will be received by those foreign companies who will exploit the growing niche in the Russian market first.
by ivan supachenko
[~DETAIL_TEXT] =>

The Deficit is increasing

One fact can clearly show how important the problem of design and manufacture of modern coaches for the corporation. Thus, last April during the exhibition of passengers’ rolling stock the Head of Passenger Directorate of OAO RZD, Valery Shatayev was the most fastidious visitor. He tried to clarify all the possible details: checked video and stereo systems, inquired about bogies’ construction and took keen interest in how the coach feels while running, etc. Having analysed the current state of the passenger rolling stock of the company this interest can be easily understood.
Nowadays the Passenger Directorate of OAO RZD operates 25 thousand units of rolling stock.
Considering wear-and-tear period and passenger turnover growth to sustain the park on the needed level and provide required renewal the company has to purchase about 1.2 thousand new coaches annually. However, the purchase volume doesn’t allow it to liquidate deficit which is explained by quite limited industrial capacities as well as financial opportunities for the carrier. Thus, in 1992 railways got 1.615 rolling stock units, in 1998 this number amounted to only 183 units. Starting from 2000 the rolling stock park has decreased by 5% and the volume of worn rolling stock units totals to 25%.
As a result by 2015 the annual volume of deficit will make 370 coaches. At the same time the level of wear-and-tear amounts to 65% and, for certain types of the rolling stock, makes 80%. In 2006–2007 the company has to get rid of 10% of the park, 40% units more are operated over 19 years and 70% of coaches are not equipped with air-conditioning systems.
It should be noted that the number of manufactured rolling stock has practically reached the required volume, though this is the ultimate volume for producers.
According to the Passenger Directorate of OAO RZD, in 2006 the company purchased 735 coaches worth RUR 12 billion, including 61 units acquired by the corporation own funds and 674 within leasing schemes. Plans for 2007 are more impressive i.e. about 911 coaches are to be purchased with the cost of RUR 16.3 billion
(+176 units year-on-year) from the above-mentioned number 343 units are acquired at company’s own funds and leasing contracts work for the rest 568 coaches.
Under conditions of maximum use of industrial capacities investment plan for the period of 2008–2010 looks as follows:
• 2008 – 1139 units worth RUR 22.029 billion;
• 2009 – 1293 units worth RUR 29.791 billion;
• 2010 – 1410 units worth RUR 36 billion;
Federal Directorate experts single out five key directions for the area of new rolling stock construction and improvement within the short-term perspective:
• expanding the typical range of passenger coaches;
• renewal of the rolling stock for international transportation and purchase high comfort coaches;
• development of innovative rolling stock for high-speed transportation;
• improvement general parameters of production coaches;
• development of infrastructure for new-generation rolling stock servicing.
There is a good reason to comment on some of the above-mentioned aspects since they clearly show the major direction of car production development as well as that of the whole passenger complex.

Do it yourself

In September 2006, with the aim to cover the deficit, OAO RZD made the decision to start its own production of passenger rolling stock on the base of Vagonremmash enterprises. Actually this means a new market player arrival through joining the minority together with Vagonmash JSC and Tsirkon-Service JSC who manufacture small volumes for specific market niches. The monopolist on this market is Tver Car Engineering plant which takes 95% of the Russian market and joins Transmashholding JSC.
In the words of Vladimir Pashkevich, the acting head of Vagonremmash, now in accordance with the decision of OAO RZD Board, seven repair plants have been turned into daughter companies. They are Vologodsky Repair Plant, Alatyrsky Car Engineering Plant, Vladikavkazsky Car Engineering Plant, Moscow Car Engineering Plant “Red way”, Moscow Car Engineering Plant, Petukhovsky Car Engineering Plant and Krasnoyarsk Car Engineering Plant. Vagomremmash in its turn has been taking steps to stop activities of these previous OAO RZD departments starting from July 1, 2008. Four of them together with Voronezhsky, Tambovsky and Novorossiysky Car Engineering Plants will be joined into the single structure and three enterprises will operate as OAO RZD daughter companies.
Manufacturing of double-deck stock will be launched at three enterprises: Voronezhsky, Tambovsky and Novorossiysky Car Engineering Plants. Under conditions of keeping their capacities on major repair and coaches modernisation their project capacities will make 250 units of rolling stock per year.
In the opinion of V.Pashkevich, certain aspects can balance OAO RZD and passenger turnover and new coaches purchase is to be guided by these very factors. Among basic ones he mentions:
• highly efficient satisfaction of the population needs in rolling stock;
• shortening the share of low-profitable coaches with low comfort parameters and their substitution by higher class units;
• increase of the coaches performing inter-regional runs to satisfy requirements of the population for short-distance transportation;
• rolling stock park renewal i.e. double-deck stock production

Longer run brings less repair

Besides extensive schemes of development OAO RZD follows another way of the park renewal. The company amends requirements set for new passenger rolling stock, their technical-operation parameters as well as financial-economic characteristics. New technologies of production and service typical for the international community are to result in more solid reliability, greater capacity and comfort and, thus, cost saving for repair and operation and giving rise to profits per production unit and passenger-kilometre.
Generally speaking, according to the Passenger Directorate technical requirements for new rolling stock is to correspond to modern international standards and be based on the unified platforms. This sort of platform is produced as a module construction that allows construction of any coaches of the required configuration in accordance with the customer order. New machinery operation life will amount to 40 years with the period guarantee maintenance of 6 years and no repair run period worth 1 million kilometres. Preferences will be given to the systems with pneumatic car body setting, gapless automatic couplers, containment car-to-car communication, centralised power supply and plate brakes. This is explained by the opportunity to decrease operation costs due to reduction of expenditures on train traction, improvement its gliding properties as well as comfort parameters. Wood details are planned to be substituted by plastic components which demonstrate higher solidity and fire resistance.
By the way, the above-mentioned path was chosen by Tverskoy Car Engineering Plant who performs as a leader of the sector. In the words of Vladimir Shneidmuller, Deputy CEO on technical and technological policy of Transmashholding JSC, by 2010 the company plans to produce 1 thousand rail cars against 850 units manufactured in 2006. Next year Transmashholding plans to manufacture new models. Car bodies will be produced from corrosion-resistant steel that will increase normative operation period up to 40 years (now it is 28 years). Moreover, thanks to this sort of steel, no car body repair will be needed during the capital repair of the stock which looks like a significant advantage.
Innovations in doors construction and facing will allow to provide reliable maintenance in temperatures ranging from – -50°С to
+ 50°C
The model range is formed on the basic platform that will make it possible to develop, certify and produce new modifications for customers. In particular, an idea to construct models of open type coach for OAO RZD (no side berths, three berths are located above each other) was discussed.
VIP transportation brings the most
significant profit
In the course of pushing passenger transportation to profitability ОАО RZD develops two approaches: giving services on high comfort transportation and widening the range of services within social transportation.
The stake on comfort is quite reasonable from an economic point of view. This can be demonstrated by several private projects implemented within so-called VIP-transportation. The results are as follows: 109 high comfort trains were formed from 3.7 thousand coaches. Last year they transported 29 million passengers (+1 million year-on-year). The share of high comfort trains in the general volume of passenger transportation made 25% and in profits – 39%. Costs were covered by profits by 136% (under profits of RUR 32.2 billion). High comfort segment of OAO RZD in 2006 brought profit of RUR 8 billion against RUR 6 billion in 2005.
The same situation can be observed in high comfort coaches since their popularity grows by 750 thousand passengers annually. In 2001 the sector showed results of 2.6 million passengers, in 2005 – 6.4 million, and in 2006 increased by 16% – to 7.4 million. At the same time the number of high comfort coaches grew from 458 units in 2001 to 2251 coaches in 2006. During five recent years their share in the park boosted from 1.9% to 9% i.e. over four-fold.
By 2010 the number of high comfort coaches will grow twofold (to 4.5 thousand units) which will make 18% from aggregate park volume and by 2017 – already 29%.
In high comfort coaches a passenger can take a shower, surf the internet, watch videos and use stereo systems.
Moreover, ideas to satisfy more fastidious passengers are being developed. There are plans to develop a hyper-allergic coach, gym-coach and even a sauna coach.
In other words, the problem with new stock manufacturing has to do not only with the lack of required capacities or limited financial resources but also with new demands to the stock and, thus, with new innovative technologies development. Will the national industry meet the challenge? Quite probably, the answer will give rise to a number of interesting projects and one of them is double-deck stock production.

Double-Deck Stock Needed

The project of double-deck stock production envisages implementation of all the above-mentioned directions being developed at the moment: widening the model range, introduction of new modern requirements, comfort parameters improvement, etc. As was said above the new model will be produced at Vagonmash car engineering enterprise.
«The business plan developed by ОАО Giprotyazhmash shows that the most efficient way to launch production is to organise manufacturing at three enterprises. Thus, Voronezhsky Car Engineering Plant will produce car bodies, Tambovsky plant will concentrate on bogies and Novorossyisky – on electrical equipment», V.Pashkevich says.
Double deck rolling stock launch seems reasonable due to the following favourable opportunities:
• due to the launch of the unified base platform a reduction of 30–50% in terms of costs of models of different classes and functionality can be reached compared with present-day practices;
• operation life increase up to 40 years;
• increase of functioning lines carrying capacity by 20–30% without their enhancement;
• reduction of maintenance expenditures by 15–20%.
V.Pashkevich refers to VNIIZHT marketing data and believes that double-deck stock production is quite promising for the sector in terms of technical-economic parameters. Speaking of certain model constructions, experts suppose double-deck stock will be advantageous on the inter-regional routes offering coaches with seats and sleeping cars for long-distance transportation.
Initially choosing a partner, OAO RZD negotiated with the Finnish Transtech company, however, afterwards due to certain problems with permissive documents all interested world producers were invited to participate. In the words of V.Pashkevich, based on the results of consultations held by foreign car engineering companies, implementation of the project will take three years wherein two will be spent on technical documentation development and samples manufacturing and certification together with trial exploitation, which will take a year.

Summing Up

ОАО RZD and manufacturers, Transmashholding in particular, demonstrate modern approaches to car engineering i.e. they increase carrying capacities not only due to more intensive production of railroad cars but mostly thanks to intensive use of new technologies and service development. At the same time the corporation feels positive about cooperation with foreign partners to follow the course of world tendencies in the sector. Quite probably, in the near future Russia will turn from an importer of technologies to an exporter. Most profit from this export will be received by those foreign companies who will exploit the growing niche in the Russian market first.
by ivan supachenko
[DETAIL_TEXT_TYPE] => html [~DETAIL_TEXT_TYPE] => html [PREVIEW_TEXT] =>  ОАО RZD has been searching the way out to solve the problem with the passengers rolling stock deficit from a long-term perspective. The present situation shows that the Russian industry is unable to cope with this deficit that makes the corporation take active steps to launch their own production. The major hope in this respect is laid upon cooperation with foreign companies who operate innovative modern technologies. [~PREVIEW_TEXT] =>  ОАО RZD has been searching the way out to solve the problem with the passengers rolling stock deficit from a long-term perspective. The present situation shows that the Russian industry is unable to cope with this deficit that makes the corporation take active steps to launch their own production. The major hope in this respect is laid upon cooperation with foreign companies who operate innovative modern technologies. 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The Deficit is increasing

One fact can clearly show how important the problem of design and manufacture of modern coaches for the corporation. Thus, last April during the exhibition of passengers’ rolling stock the Head of Passenger Directorate of OAO RZD, Valery Shatayev was the most fastidious visitor. He tried to clarify all the possible details: checked video and stereo systems, inquired about bogies’ construction and took keen interest in how the coach feels while running, etc. Having analysed the current state of the passenger rolling stock of the company this interest can be easily understood.
Nowadays the Passenger Directorate of OAO RZD operates 25 thousand units of rolling stock.
Considering wear-and-tear period and passenger turnover growth to sustain the park on the needed level and provide required renewal the company has to purchase about 1.2 thousand new coaches annually. However, the purchase volume doesn’t allow it to liquidate deficit which is explained by quite limited industrial capacities as well as financial opportunities for the carrier. Thus, in 1992 railways got 1.615 rolling stock units, in 1998 this number amounted to only 183 units. Starting from 2000 the rolling stock park has decreased by 5% and the volume of worn rolling stock units totals to 25%.
As a result by 2015 the annual volume of deficit will make 370 coaches. At the same time the level of wear-and-tear amounts to 65% and, for certain types of the rolling stock, makes 80%. In 2006–2007 the company has to get rid of 10% of the park, 40% units more are operated over 19 years and 70% of coaches are not equipped with air-conditioning systems.
It should be noted that the number of manufactured rolling stock has practically reached the required volume, though this is the ultimate volume for producers.
According to the Passenger Directorate of OAO RZD, in 2006 the company purchased 735 coaches worth RUR 12 billion, including 61 units acquired by the corporation own funds and 674 within leasing schemes. Plans for 2007 are more impressive i.e. about 911 coaches are to be purchased with the cost of RUR 16.3 billion
(+176 units year-on-year) from the above-mentioned number 343 units are acquired at company’s own funds and leasing contracts work for the rest 568 coaches.
Under conditions of maximum use of industrial capacities investment plan for the period of 2008–2010 looks as follows:
• 2008 – 1139 units worth RUR 22.029 billion;
• 2009 – 1293 units worth RUR 29.791 billion;
• 2010 – 1410 units worth RUR 36 billion;
Federal Directorate experts single out five key directions for the area of new rolling stock construction and improvement within the short-term perspective:
• expanding the typical range of passenger coaches;
• renewal of the rolling stock for international transportation and purchase high comfort coaches;
• development of innovative rolling stock for high-speed transportation;
• improvement general parameters of production coaches;
• development of infrastructure for new-generation rolling stock servicing.
There is a good reason to comment on some of the above-mentioned aspects since they clearly show the major direction of car production development as well as that of the whole passenger complex.

Do it yourself

In September 2006, with the aim to cover the deficit, OAO RZD made the decision to start its own production of passenger rolling stock on the base of Vagonremmash enterprises. Actually this means a new market player arrival through joining the minority together with Vagonmash JSC and Tsirkon-Service JSC who manufacture small volumes for specific market niches. The monopolist on this market is Tver Car Engineering plant which takes 95% of the Russian market and joins Transmashholding JSC.
In the words of Vladimir Pashkevich, the acting head of Vagonremmash, now in accordance with the decision of OAO RZD Board, seven repair plants have been turned into daughter companies. They are Vologodsky Repair Plant, Alatyrsky Car Engineering Plant, Vladikavkazsky Car Engineering Plant, Moscow Car Engineering Plant “Red way”, Moscow Car Engineering Plant, Petukhovsky Car Engineering Plant and Krasnoyarsk Car Engineering Plant. Vagomremmash in its turn has been taking steps to stop activities of these previous OAO RZD departments starting from July 1, 2008. Four of them together with Voronezhsky, Tambovsky and Novorossiysky Car Engineering Plants will be joined into the single structure and three enterprises will operate as OAO RZD daughter companies.
Manufacturing of double-deck stock will be launched at three enterprises: Voronezhsky, Tambovsky and Novorossiysky Car Engineering Plants. Under conditions of keeping their capacities on major repair and coaches modernisation their project capacities will make 250 units of rolling stock per year.
In the opinion of V.Pashkevich, certain aspects can balance OAO RZD and passenger turnover and new coaches purchase is to be guided by these very factors. Among basic ones he mentions:
• highly efficient satisfaction of the population needs in rolling stock;
• shortening the share of low-profitable coaches with low comfort parameters and their substitution by higher class units;
• increase of the coaches performing inter-regional runs to satisfy requirements of the population for short-distance transportation;
• rolling stock park renewal i.e. double-deck stock production

Longer run brings less repair

Besides extensive schemes of development OAO RZD follows another way of the park renewal. The company amends requirements set for new passenger rolling stock, their technical-operation parameters as well as financial-economic characteristics. New technologies of production and service typical for the international community are to result in more solid reliability, greater capacity and comfort and, thus, cost saving for repair and operation and giving rise to profits per production unit and passenger-kilometre.
Generally speaking, according to the Passenger Directorate technical requirements for new rolling stock is to correspond to modern international standards and be based on the unified platforms. This sort of platform is produced as a module construction that allows construction of any coaches of the required configuration in accordance with the customer order. New machinery operation life will amount to 40 years with the period guarantee maintenance of 6 years and no repair run period worth 1 million kilometres. Preferences will be given to the systems with pneumatic car body setting, gapless automatic couplers, containment car-to-car communication, centralised power supply and plate brakes. This is explained by the opportunity to decrease operation costs due to reduction of expenditures on train traction, improvement its gliding properties as well as comfort parameters. Wood details are planned to be substituted by plastic components which demonstrate higher solidity and fire resistance.
By the way, the above-mentioned path was chosen by Tverskoy Car Engineering Plant who performs as a leader of the sector. In the words of Vladimir Shneidmuller, Deputy CEO on technical and technological policy of Transmashholding JSC, by 2010 the company plans to produce 1 thousand rail cars against 850 units manufactured in 2006. Next year Transmashholding plans to manufacture new models. Car bodies will be produced from corrosion-resistant steel that will increase normative operation period up to 40 years (now it is 28 years). Moreover, thanks to this sort of steel, no car body repair will be needed during the capital repair of the stock which looks like a significant advantage.
Innovations in doors construction and facing will allow to provide reliable maintenance in temperatures ranging from – -50°С to
+ 50°C
The model range is formed on the basic platform that will make it possible to develop, certify and produce new modifications for customers. In particular, an idea to construct models of open type coach for OAO RZD (no side berths, three berths are located above each other) was discussed.
VIP transportation brings the most
significant profit
In the course of pushing passenger transportation to profitability ОАО RZD develops two approaches: giving services on high comfort transportation and widening the range of services within social transportation.
The stake on comfort is quite reasonable from an economic point of view. This can be demonstrated by several private projects implemented within so-called VIP-transportation. The results are as follows: 109 high comfort trains were formed from 3.7 thousand coaches. Last year they transported 29 million passengers (+1 million year-on-year). The share of high comfort trains in the general volume of passenger transportation made 25% and in profits – 39%. Costs were covered by profits by 136% (under profits of RUR 32.2 billion). High comfort segment of OAO RZD in 2006 brought profit of RUR 8 billion against RUR 6 billion in 2005.
The same situation can be observed in high comfort coaches since their popularity grows by 750 thousand passengers annually. In 2001 the sector showed results of 2.6 million passengers, in 2005 – 6.4 million, and in 2006 increased by 16% – to 7.4 million. At the same time the number of high comfort coaches grew from 458 units in 2001 to 2251 coaches in 2006. During five recent years their share in the park boosted from 1.9% to 9% i.e. over four-fold.
By 2010 the number of high comfort coaches will grow twofold (to 4.5 thousand units) which will make 18% from aggregate park volume and by 2017 – already 29%.
In high comfort coaches a passenger can take a shower, surf the internet, watch videos and use stereo systems.
Moreover, ideas to satisfy more fastidious passengers are being developed. There are plans to develop a hyper-allergic coach, gym-coach and even a sauna coach.
In other words, the problem with new stock manufacturing has to do not only with the lack of required capacities or limited financial resources but also with new demands to the stock and, thus, with new innovative technologies development. Will the national industry meet the challenge? Quite probably, the answer will give rise to a number of interesting projects and one of them is double-deck stock production.

Double-Deck Stock Needed

The project of double-deck stock production envisages implementation of all the above-mentioned directions being developed at the moment: widening the model range, introduction of new modern requirements, comfort parameters improvement, etc. As was said above the new model will be produced at Vagonmash car engineering enterprise.
«The business plan developed by ОАО Giprotyazhmash shows that the most efficient way to launch production is to organise manufacturing at three enterprises. Thus, Voronezhsky Car Engineering Plant will produce car bodies, Tambovsky plant will concentrate on bogies and Novorossyisky – on electrical equipment», V.Pashkevich says.
Double deck rolling stock launch seems reasonable due to the following favourable opportunities:
• due to the launch of the unified base platform a reduction of 30–50% in terms of costs of models of different classes and functionality can be reached compared with present-day practices;
• operation life increase up to 40 years;
• increase of functioning lines carrying capacity by 20–30% without their enhancement;
• reduction of maintenance expenditures by 15–20%.
V.Pashkevich refers to VNIIZHT marketing data and believes that double-deck stock production is quite promising for the sector in terms of technical-economic parameters. Speaking of certain model constructions, experts suppose double-deck stock will be advantageous on the inter-regional routes offering coaches with seats and sleeping cars for long-distance transportation.
Initially choosing a partner, OAO RZD negotiated with the Finnish Transtech company, however, afterwards due to certain problems with permissive documents all interested world producers were invited to participate. In the words of V.Pashkevich, based on the results of consultations held by foreign car engineering companies, implementation of the project will take three years wherein two will be spent on technical documentation development and samples manufacturing and certification together with trial exploitation, which will take a year.

Summing Up

ОАО RZD and manufacturers, Transmashholding in particular, demonstrate modern approaches to car engineering i.e. they increase carrying capacities not only due to more intensive production of railroad cars but mostly thanks to intensive use of new technologies and service development. At the same time the corporation feels positive about cooperation with foreign partners to follow the course of world tendencies in the sector. Quite probably, in the near future Russia will turn from an importer of technologies to an exporter. Most profit from this export will be received by those foreign companies who will exploit the growing niche in the Russian market first.
by ivan supachenko
[~DETAIL_TEXT] =>

The Deficit is increasing

One fact can clearly show how important the problem of design and manufacture of modern coaches for the corporation. Thus, last April during the exhibition of passengers’ rolling stock the Head of Passenger Directorate of OAO RZD, Valery Shatayev was the most fastidious visitor. He tried to clarify all the possible details: checked video and stereo systems, inquired about bogies’ construction and took keen interest in how the coach feels while running, etc. Having analysed the current state of the passenger rolling stock of the company this interest can be easily understood.
Nowadays the Passenger Directorate of OAO RZD operates 25 thousand units of rolling stock.
Considering wear-and-tear period and passenger turnover growth to sustain the park on the needed level and provide required renewal the company has to purchase about 1.2 thousand new coaches annually. However, the purchase volume doesn’t allow it to liquidate deficit which is explained by quite limited industrial capacities as well as financial opportunities for the carrier. Thus, in 1992 railways got 1.615 rolling stock units, in 1998 this number amounted to only 183 units. Starting from 2000 the rolling stock park has decreased by 5% and the volume of worn rolling stock units totals to 25%.
As a result by 2015 the annual volume of deficit will make 370 coaches. At the same time the level of wear-and-tear amounts to 65% and, for certain types of the rolling stock, makes 80%. In 2006–2007 the company has to get rid of 10% of the park, 40% units more are operated over 19 years and 70% of coaches are not equipped with air-conditioning systems.
It should be noted that the number of manufactured rolling stock has practically reached the required volume, though this is the ultimate volume for producers.
According to the Passenger Directorate of OAO RZD, in 2006 the company purchased 735 coaches worth RUR 12 billion, including 61 units acquired by the corporation own funds and 674 within leasing schemes. Plans for 2007 are more impressive i.e. about 911 coaches are to be purchased with the cost of RUR 16.3 billion
(+176 units year-on-year) from the above-mentioned number 343 units are acquired at company’s own funds and leasing contracts work for the rest 568 coaches.
Under conditions of maximum use of industrial capacities investment plan for the period of 2008–2010 looks as follows:
• 2008 – 1139 units worth RUR 22.029 billion;
• 2009 – 1293 units worth RUR 29.791 billion;
• 2010 – 1410 units worth RUR 36 billion;
Federal Directorate experts single out five key directions for the area of new rolling stock construction and improvement within the short-term perspective:
• expanding the typical range of passenger coaches;
• renewal of the rolling stock for international transportation and purchase high comfort coaches;
• development of innovative rolling stock for high-speed transportation;
• improvement general parameters of production coaches;
• development of infrastructure for new-generation rolling stock servicing.
There is a good reason to comment on some of the above-mentioned aspects since they clearly show the major direction of car production development as well as that of the whole passenger complex.

Do it yourself

In September 2006, with the aim to cover the deficit, OAO RZD made the decision to start its own production of passenger rolling stock on the base of Vagonremmash enterprises. Actually this means a new market player arrival through joining the minority together with Vagonmash JSC and Tsirkon-Service JSC who manufacture small volumes for specific market niches. The monopolist on this market is Tver Car Engineering plant which takes 95% of the Russian market and joins Transmashholding JSC.
In the words of Vladimir Pashkevich, the acting head of Vagonremmash, now in accordance with the decision of OAO RZD Board, seven repair plants have been turned into daughter companies. They are Vologodsky Repair Plant, Alatyrsky Car Engineering Plant, Vladikavkazsky Car Engineering Plant, Moscow Car Engineering Plant “Red way”, Moscow Car Engineering Plant, Petukhovsky Car Engineering Plant and Krasnoyarsk Car Engineering Plant. Vagomremmash in its turn has been taking steps to stop activities of these previous OAO RZD departments starting from July 1, 2008. Four of them together with Voronezhsky, Tambovsky and Novorossiysky Car Engineering Plants will be joined into the single structure and three enterprises will operate as OAO RZD daughter companies.
Manufacturing of double-deck stock will be launched at three enterprises: Voronezhsky, Tambovsky and Novorossiysky Car Engineering Plants. Under conditions of keeping their capacities on major repair and coaches modernisation their project capacities will make 250 units of rolling stock per year.
In the opinion of V.Pashkevich, certain aspects can balance OAO RZD and passenger turnover and new coaches purchase is to be guided by these very factors. Among basic ones he mentions:
• highly efficient satisfaction of the population needs in rolling stock;
• shortening the share of low-profitable coaches with low comfort parameters and their substitution by higher class units;
• increase of the coaches performing inter-regional runs to satisfy requirements of the population for short-distance transportation;
• rolling stock park renewal i.e. double-deck stock production

Longer run brings less repair

Besides extensive schemes of development OAO RZD follows another way of the park renewal. The company amends requirements set for new passenger rolling stock, their technical-operation parameters as well as financial-economic characteristics. New technologies of production and service typical for the international community are to result in more solid reliability, greater capacity and comfort and, thus, cost saving for repair and operation and giving rise to profits per production unit and passenger-kilometre.
Generally speaking, according to the Passenger Directorate technical requirements for new rolling stock is to correspond to modern international standards and be based on the unified platforms. This sort of platform is produced as a module construction that allows construction of any coaches of the required configuration in accordance with the customer order. New machinery operation life will amount to 40 years with the period guarantee maintenance of 6 years and no repair run period worth 1 million kilometres. Preferences will be given to the systems with pneumatic car body setting, gapless automatic couplers, containment car-to-car communication, centralised power supply and plate brakes. This is explained by the opportunity to decrease operation costs due to reduction of expenditures on train traction, improvement its gliding properties as well as comfort parameters. Wood details are planned to be substituted by plastic components which demonstrate higher solidity and fire resistance.
By the way, the above-mentioned path was chosen by Tverskoy Car Engineering Plant who performs as a leader of the sector. In the words of Vladimir Shneidmuller, Deputy CEO on technical and technological policy of Transmashholding JSC, by 2010 the company plans to produce 1 thousand rail cars against 850 units manufactured in 2006. Next year Transmashholding plans to manufacture new models. Car bodies will be produced from corrosion-resistant steel that will increase normative operation period up to 40 years (now it is 28 years). Moreover, thanks to this sort of steel, no car body repair will be needed during the capital repair of the stock which looks like a significant advantage.
Innovations in doors construction and facing will allow to provide reliable maintenance in temperatures ranging from – -50°С to
+ 50°C
The model range is formed on the basic platform that will make it possible to develop, certify and produce new modifications for customers. In particular, an idea to construct models of open type coach for OAO RZD (no side berths, three berths are located above each other) was discussed.
VIP transportation brings the most
significant profit
In the course of pushing passenger transportation to profitability ОАО RZD develops two approaches: giving services on high comfort transportation and widening the range of services within social transportation.
The stake on comfort is quite reasonable from an economic point of view. This can be demonstrated by several private projects implemented within so-called VIP-transportation. The results are as follows: 109 high comfort trains were formed from 3.7 thousand coaches. Last year they transported 29 million passengers (+1 million year-on-year). The share of high comfort trains in the general volume of passenger transportation made 25% and in profits – 39%. Costs were covered by profits by 136% (under profits of RUR 32.2 billion). High comfort segment of OAO RZD in 2006 brought profit of RUR 8 billion against RUR 6 billion in 2005.
The same situation can be observed in high comfort coaches since their popularity grows by 750 thousand passengers annually. In 2001 the sector showed results of 2.6 million passengers, in 2005 – 6.4 million, and in 2006 increased by 16% – to 7.4 million. At the same time the number of high comfort coaches grew from 458 units in 2001 to 2251 coaches in 2006. During five recent years their share in the park boosted from 1.9% to 9% i.e. over four-fold.
By 2010 the number of high comfort coaches will grow twofold (to 4.5 thousand units) which will make 18% from aggregate park volume and by 2017 – already 29%.
In high comfort coaches a passenger can take a shower, surf the internet, watch videos and use stereo systems.
Moreover, ideas to satisfy more fastidious passengers are being developed. There are plans to develop a hyper-allergic coach, gym-coach and even a sauna coach.
In other words, the problem with new stock manufacturing has to do not only with the lack of required capacities or limited financial resources but also with new demands to the stock and, thus, with new innovative technologies development. Will the national industry meet the challenge? Quite probably, the answer will give rise to a number of interesting projects and one of them is double-deck stock production.

Double-Deck Stock Needed

The project of double-deck stock production envisages implementation of all the above-mentioned directions being developed at the moment: widening the model range, introduction of new modern requirements, comfort parameters improvement, etc. As was said above the new model will be produced at Vagonmash car engineering enterprise.
«The business plan developed by ОАО Giprotyazhmash shows that the most efficient way to launch production is to organise manufacturing at three enterprises. Thus, Voronezhsky Car Engineering Plant will produce car bodies, Tambovsky plant will concentrate on bogies and Novorossyisky – on electrical equipment», V.Pashkevich says.
Double deck rolling stock launch seems reasonable due to the following favourable opportunities:
• due to the launch of the unified base platform a reduction of 30–50% in terms of costs of models of different classes and functionality can be reached compared with present-day practices;
• operation life increase up to 40 years;
• increase of functioning lines carrying capacity by 20–30% without their enhancement;
• reduction of maintenance expenditures by 15–20%.
V.Pashkevich refers to VNIIZHT marketing data and believes that double-deck stock production is quite promising for the sector in terms of technical-economic parameters. Speaking of certain model constructions, experts suppose double-deck stock will be advantageous on the inter-regional routes offering coaches with seats and sleeping cars for long-distance transportation.
Initially choosing a partner, OAO RZD negotiated with the Finnish Transtech company, however, afterwards due to certain problems with permissive documents all interested world producers were invited to participate. In the words of V.Pashkevich, based on the results of consultations held by foreign car engineering companies, implementation of the project will take three years wherein two will be spent on technical documentation development and samples manufacturing and certification together with trial exploitation, which will take a year.

Summing Up

ОАО RZD and manufacturers, Transmashholding in particular, demonstrate modern approaches to car engineering i.e. they increase carrying capacities not only due to more intensive production of railroad cars but mostly thanks to intensive use of new technologies and service development. At the same time the corporation feels positive about cooperation with foreign partners to follow the course of world tendencies in the sector. Quite probably, in the near future Russia will turn from an importer of technologies to an exporter. Most profit from this export will be received by those foreign companies who will exploit the growing niche in the Russian market first.
by ivan supachenko
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РЖД-Партнер

Let’s fight rolling stock deficit!

Deficit in rolling stock has resulted in railway machine engineering boom and as a result growth of demand for new railway engineering production by OAO RZD and private operators.
In 2007 growth of rolling stock production is estimated at 15%.
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From tank cars and gondolas to the wide range of models

In 2006 in Russia some 33.5 thousand of railroad cars were manufactured (-4.8% year-on-year). According to the Ministry of Industry and Energy, in 2006 Russian enterprises acquired 40 thousand rail cargo cars including 31 thousand units purchased by private companies. Research held by IA InfoLine “Market of cargo railway rolling stock of Russia” on the basis of the data received from the enterprises and the Federal Customs Service clarifies the structure of the market, however, it does not consider export of second hand rolling stock (1.071 units in 2006) as well as OAO RZD rolling stock sale to private companies on the auctions.
In the opinion of experts, in 2007 growth in rolling stock production is expected to amount to 15% year-on-year due to boost of volumes manufactured by the biggest railway engineering enterprises of Russia who produce 85% of rail cars in the state and launch of gondola cars production by Promtractor JSC. In mid-term perspective rates of production growth will slow down a bit, though profits will be growing due to re-directing the enterprises to more expensive and technological types of rolling stock.
If to analyze the structure of cargo rail cars in terms of types of produced rolling stock, it can be found that after the period of active tank cars production in 2002-2003 the period of 2004-2006 became the one when gondola cars manufacturing dominated. In 2007 due to the fact that OAO RZD has increased the number of ordered units at Uralvagonzavod JSC, their amount will grow only at the above-mentioned enterprise. The rest market players do their best to diversify their production. This situation can be explained by such factors as follows: first of all, private companies diversify their business and, thus, diversify their demands to manufacturer, secondly, gondola cars production is rather low-profitable compared to other types of rolling stock manufacture, and at last now the Russian enterprises have to compete with the Ukrainian plants who took the course at manufacturing hoppers, fitting platforms, specialized rolling stock etc.
The volume of cargo cars export in 2006 made over 5.5 thousand units; Uralvagonzavod performed as the biggest supplier to the foreign markets. Over 80% of export cargo cars was purchased by Kazakhstan. Thus, despite significant import volumes, Russian enterprises sell about 16% to foreign buyers. This fact can be explained by several reasons. Firstly, this has to do with rather low level of competition in terms of prices set for domestic manufacturers’ production compared with that of Ukrainian; and, secondly, with the opportunity to conclude long-term export contracts that allows to optimize and forecast load of production capacities. The domestic market practices mainly one year long contracts.

Buyer market

OAO RZD performs as the biggest buyer of railway engineering production. Thus, according to the Strategy of the RF railway transport development to 2030, the corporation plans to spend over RUR 3.1 trln (RUR 986 bln to locomotives purchase, RUR 1.3 trln to cargo rail cars, RUR 529 bln to passenger cars purchase and RUR 280 bln to motor-wagon rolling stock). These investments will bring to the sector over 23.3 thousand locomotives, 996.000 cargo rail cars, over 29.5 passenger cars and 24.4 thousand of motor-wagon rolling stock units.
To satisfy economic demands in transportation the Strategy of development envisages to substitute wear-and-tear locomotives and rail cars to 2015. Technical requirements of the new rolling stock will correspond to the world standards in terms of safety, cargo carrying capacity, ecology, life cycle structure etc.
To implement these plans the corporation already now pays greatest attention to park renewal since the condition of the park impacts directly on satisfaction of the Russian industrial enterprises with transportation of raw material and their furnished production. In particular, according to the investment programme of the company in 2007 about 10 thousand gondola cars produced by Uralvagonzavod will be purchased as well as 1 thousand of hoppers manufactured by OAO Ruzkhimmash to transport cement. Moreover, at present the company considers opportunity to acquire additional 10 thousand cargo rail cars including 7 thousand gondola cars, 2 thousand boxcars and 1 thousand hoppers in 2007.
In general, next year will become the year of significant growth in new locomotives supply to the sector. Russian railways are to receive 500 locomotives in 2008 and almost 1.900 units in 2008-2010. “The sector of traction electric equipment is in crucial situation now since there is no production balance. Our locomotive market takes the share of only 13% from the world volume. This looks quite strange considering the fact that Russia is the biggest country in the world. Speaking of OAO RZD’s needs and possibilities of domestic manufacturers, Vadim Morozov, OAO RZD Vice-President, clarified this summer that they are misbalanced in 2 thousand locomotives”, – Yevgeny Kopein, CEO of ОАО Sinara – Transport Machines. In his view this is a huge amount since Sinara operates only 7.5 thousand units and at the same time the wear-an-tear share of the park makes 75-80%.
Another problem to pay attention to is the necessity to substitute about 700-800 worn-out locomotives annually. “However, this amount is not covered by those opportunities which were available for the biggest domestic manufacturers in the Soviet era i.e. Tbilissky electric engineering plant and Novocherkassky electric engineering works which in aggregate produced about 700 units of rolling stock annually”, Y.Kopein says.
Long-term contracts are the base for the sector forecasted development
To solve these problems OAO RZD is concluding long-term contracts within the programme of its park renewal. Thus, at the International Salon of railway machinery and technologies EXPO 1520 in Moscow, Vladimir Yakunin, OAO RZD President and Dmitry Komissarov, Head of Transmashholding Board concluded the contract on production and supply of 212 units of E5К and EP2К new electric locomotives in 2007-2009. Main line electric locomotive E5К is sequential in the series of Yermak electric locomotives and is to substitute worn-out locomotive of VL60К series. This year Russian railways are to host 10 electric locomotives and in next three years – 109 units.
New domestic EP2К electric locomotive will service the lines instead of Czech locomotives CHS2 whose maintenance cycle is over. In 2007 about 12 electric locomotives of this type will be put into operation and by 2010 – 103 units.
Moreover, ОАО RZD and Uralvagonzavod concluded a three year contract worth RUR 68 bln on supply of 40 thousand cargo rail cars until 2010. The contract was concluded on mutually profitable terms and will allow OAO RZD to cover 70-80% of needs in gondola cars, – Vladimir Yakunin emphasized. In his words, within the third stage of railway restructuring the corporation has to solve the problem of significant wear-and-tear share suffered by basic assets that makes 58% in average, including that of cargo rail cars – about 80%.
Also, OAO RZD concluded the contract with Car Engineering Plant of Mordovia, one of the biggest manufacturers of tank cars in the CIS. Thus, contractual obligations envisage supply of one thousand cement wagons in 2007 and six thousand units in 2008.
Moreover, negotiations resulted in creation of the working group which will be responsible for development of the agreement on long-term cooperation of OAO RZD and the Car Engineering Plant of Mordovia aimed at railway sector modernization and annual supply of 6-8 thousand cars of different modification.
At last, until 2010 Sinara Group JSC is to invest RUR 5.2 mln into industrial capacities of OAO Ural Car Engineering plant to produce electric locomotives of new generation. Projected capacities of the plant will make 120 units per year. In July 2007 the company signed a contract with OAO RZD that envisages supply of 25 cargo electric locomotives of direct current with commutator motor 2ES6. The contract totals RUR 2 bln. In 2008 8 two-sectional locomotives will be delivered and in 2009 – the delivery of 16 units is planned.
Y.Kopein adds that the investment volume directed into production of shunting diesel locomotives of different modes, track machinery as well as modernization of Lyudinovsky Diesel Locomotive Engineering Plant taking 20% of the Russian market of shunting diesel locomotives will make RUR 2.3 bln in 2007-2008.

Summing up

The review of the basic investment projects of the sector shows that the deficit of rolling stock is unlikely to be liquidated in long-term perspective.
In such conditions one of the most obvious ways out can become transfer to production that requires less maintenance costs but allow domestic manufacturing enterprises to expand their capacities. It is not impossible that in near future we’ll see projects on new locomotive and cars engineering plants construction. [~DETAIL_TEXT] =>

From tank cars and gondolas to the wide range of models

In 2006 in Russia some 33.5 thousand of railroad cars were manufactured (-4.8% year-on-year). According to the Ministry of Industry and Energy, in 2006 Russian enterprises acquired 40 thousand rail cargo cars including 31 thousand units purchased by private companies. Research held by IA InfoLine “Market of cargo railway rolling stock of Russia” on the basis of the data received from the enterprises and the Federal Customs Service clarifies the structure of the market, however, it does not consider export of second hand rolling stock (1.071 units in 2006) as well as OAO RZD rolling stock sale to private companies on the auctions.
In the opinion of experts, in 2007 growth in rolling stock production is expected to amount to 15% year-on-year due to boost of volumes manufactured by the biggest railway engineering enterprises of Russia who produce 85% of rail cars in the state and launch of gondola cars production by Promtractor JSC. In mid-term perspective rates of production growth will slow down a bit, though profits will be growing due to re-directing the enterprises to more expensive and technological types of rolling stock.
If to analyze the structure of cargo rail cars in terms of types of produced rolling stock, it can be found that after the period of active tank cars production in 2002-2003 the period of 2004-2006 became the one when gondola cars manufacturing dominated. In 2007 due to the fact that OAO RZD has increased the number of ordered units at Uralvagonzavod JSC, their amount will grow only at the above-mentioned enterprise. The rest market players do their best to diversify their production. This situation can be explained by such factors as follows: first of all, private companies diversify their business and, thus, diversify their demands to manufacturer, secondly, gondola cars production is rather low-profitable compared to other types of rolling stock manufacture, and at last now the Russian enterprises have to compete with the Ukrainian plants who took the course at manufacturing hoppers, fitting platforms, specialized rolling stock etc.
The volume of cargo cars export in 2006 made over 5.5 thousand units; Uralvagonzavod performed as the biggest supplier to the foreign markets. Over 80% of export cargo cars was purchased by Kazakhstan. Thus, despite significant import volumes, Russian enterprises sell about 16% to foreign buyers. This fact can be explained by several reasons. Firstly, this has to do with rather low level of competition in terms of prices set for domestic manufacturers’ production compared with that of Ukrainian; and, secondly, with the opportunity to conclude long-term export contracts that allows to optimize and forecast load of production capacities. The domestic market practices mainly one year long contracts.

Buyer market

OAO RZD performs as the biggest buyer of railway engineering production. Thus, according to the Strategy of the RF railway transport development to 2030, the corporation plans to spend over RUR 3.1 trln (RUR 986 bln to locomotives purchase, RUR 1.3 trln to cargo rail cars, RUR 529 bln to passenger cars purchase and RUR 280 bln to motor-wagon rolling stock). These investments will bring to the sector over 23.3 thousand locomotives, 996.000 cargo rail cars, over 29.5 passenger cars and 24.4 thousand of motor-wagon rolling stock units.
To satisfy economic demands in transportation the Strategy of development envisages to substitute wear-and-tear locomotives and rail cars to 2015. Technical requirements of the new rolling stock will correspond to the world standards in terms of safety, cargo carrying capacity, ecology, life cycle structure etc.
To implement these plans the corporation already now pays greatest attention to park renewal since the condition of the park impacts directly on satisfaction of the Russian industrial enterprises with transportation of raw material and their furnished production. In particular, according to the investment programme of the company in 2007 about 10 thousand gondola cars produced by Uralvagonzavod will be purchased as well as 1 thousand of hoppers manufactured by OAO Ruzkhimmash to transport cement. Moreover, at present the company considers opportunity to acquire additional 10 thousand cargo rail cars including 7 thousand gondola cars, 2 thousand boxcars and 1 thousand hoppers in 2007.
In general, next year will become the year of significant growth in new locomotives supply to the sector. Russian railways are to receive 500 locomotives in 2008 and almost 1.900 units in 2008-2010. “The sector of traction electric equipment is in crucial situation now since there is no production balance. Our locomotive market takes the share of only 13% from the world volume. This looks quite strange considering the fact that Russia is the biggest country in the world. Speaking of OAO RZD’s needs and possibilities of domestic manufacturers, Vadim Morozov, OAO RZD Vice-President, clarified this summer that they are misbalanced in 2 thousand locomotives”, – Yevgeny Kopein, CEO of ОАО Sinara – Transport Machines. In his view this is a huge amount since Sinara operates only 7.5 thousand units and at the same time the wear-an-tear share of the park makes 75-80%.
Another problem to pay attention to is the necessity to substitute about 700-800 worn-out locomotives annually. “However, this amount is not covered by those opportunities which were available for the biggest domestic manufacturers in the Soviet era i.e. Tbilissky electric engineering plant and Novocherkassky electric engineering works which in aggregate produced about 700 units of rolling stock annually”, Y.Kopein says.
Long-term contracts are the base for the sector forecasted development
To solve these problems OAO RZD is concluding long-term contracts within the programme of its park renewal. Thus, at the International Salon of railway machinery and technologies EXPO 1520 in Moscow, Vladimir Yakunin, OAO RZD President and Dmitry Komissarov, Head of Transmashholding Board concluded the contract on production and supply of 212 units of E5К and EP2К new electric locomotives in 2007-2009. Main line electric locomotive E5К is sequential in the series of Yermak electric locomotives and is to substitute worn-out locomotive of VL60К series. This year Russian railways are to host 10 electric locomotives and in next three years – 109 units.
New domestic EP2К electric locomotive will service the lines instead of Czech locomotives CHS2 whose maintenance cycle is over. In 2007 about 12 electric locomotives of this type will be put into operation and by 2010 – 103 units.
Moreover, ОАО RZD and Uralvagonzavod concluded a three year contract worth RUR 68 bln on supply of 40 thousand cargo rail cars until 2010. The contract was concluded on mutually profitable terms and will allow OAO RZD to cover 70-80% of needs in gondola cars, – Vladimir Yakunin emphasized. In his words, within the third stage of railway restructuring the corporation has to solve the problem of significant wear-and-tear share suffered by basic assets that makes 58% in average, including that of cargo rail cars – about 80%.
Also, OAO RZD concluded the contract with Car Engineering Plant of Mordovia, one of the biggest manufacturers of tank cars in the CIS. Thus, contractual obligations envisage supply of one thousand cement wagons in 2007 and six thousand units in 2008.
Moreover, negotiations resulted in creation of the working group which will be responsible for development of the agreement on long-term cooperation of OAO RZD and the Car Engineering Plant of Mordovia aimed at railway sector modernization and annual supply of 6-8 thousand cars of different modification.
At last, until 2010 Sinara Group JSC is to invest RUR 5.2 mln into industrial capacities of OAO Ural Car Engineering plant to produce electric locomotives of new generation. Projected capacities of the plant will make 120 units per year. In July 2007 the company signed a contract with OAO RZD that envisages supply of 25 cargo electric locomotives of direct current with commutator motor 2ES6. The contract totals RUR 2 bln. In 2008 8 two-sectional locomotives will be delivered and in 2009 – the delivery of 16 units is planned.
Y.Kopein adds that the investment volume directed into production of shunting diesel locomotives of different modes, track machinery as well as modernization of Lyudinovsky Diesel Locomotive Engineering Plant taking 20% of the Russian market of shunting diesel locomotives will make RUR 2.3 bln in 2007-2008.

Summing up

The review of the basic investment projects of the sector shows that the deficit of rolling stock is unlikely to be liquidated in long-term perspective.
In such conditions one of the most obvious ways out can become transfer to production that requires less maintenance costs but allow domestic manufacturing enterprises to expand their capacities. It is not impossible that in near future we’ll see projects on new locomotive and cars engineering plants construction. [DETAIL_TEXT_TYPE] => html [~DETAIL_TEXT_TYPE] => html [PREVIEW_TEXT] => Deficit in rolling stock has resulted in railway machine engineering boom and as a result growth of demand for new railway engineering production by OAO RZD and private operators.
In 2007 growth of rolling stock production is estimated at 15%. [~PREVIEW_TEXT] => Deficit in rolling stock has resulted in railway machine engineering boom and as a result growth of demand for new railway engineering production by OAO RZD and private operators.
In 2007 growth of rolling stock production is estimated at 15%. 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From tank cars and gondolas to the wide range of models

In 2006 in Russia some 33.5 thousand of railroad cars were manufactured (-4.8% year-on-year). According to the Ministry of Industry and Energy, in 2006 Russian enterprises acquired 40 thousand rail cargo cars including 31 thousand units purchased by private companies. Research held by IA InfoLine “Market of cargo railway rolling stock of Russia” on the basis of the data received from the enterprises and the Federal Customs Service clarifies the structure of the market, however, it does not consider export of second hand rolling stock (1.071 units in 2006) as well as OAO RZD rolling stock sale to private companies on the auctions.
In the opinion of experts, in 2007 growth in rolling stock production is expected to amount to 15% year-on-year due to boost of volumes manufactured by the biggest railway engineering enterprises of Russia who produce 85% of rail cars in the state and launch of gondola cars production by Promtractor JSC. In mid-term perspective rates of production growth will slow down a bit, though profits will be growing due to re-directing the enterprises to more expensive and technological types of rolling stock.
If to analyze the structure of cargo rail cars in terms of types of produced rolling stock, it can be found that after the period of active tank cars production in 2002-2003 the period of 2004-2006 became the one when gondola cars manufacturing dominated. In 2007 due to the fact that OAO RZD has increased the number of ordered units at Uralvagonzavod JSC, their amount will grow only at the above-mentioned enterprise. The rest market players do their best to diversify their production. This situation can be explained by such factors as follows: first of all, private companies diversify their business and, thus, diversify their demands to manufacturer, secondly, gondola cars production is rather low-profitable compared to other types of rolling stock manufacture, and at last now the Russian enterprises have to compete with the Ukrainian plants who took the course at manufacturing hoppers, fitting platforms, specialized rolling stock etc.
The volume of cargo cars export in 2006 made over 5.5 thousand units; Uralvagonzavod performed as the biggest supplier to the foreign markets. Over 80% of export cargo cars was purchased by Kazakhstan. Thus, despite significant import volumes, Russian enterprises sell about 16% to foreign buyers. This fact can be explained by several reasons. Firstly, this has to do with rather low level of competition in terms of prices set for domestic manufacturers’ production compared with that of Ukrainian; and, secondly, with the opportunity to conclude long-term export contracts that allows to optimize and forecast load of production capacities. The domestic market practices mainly one year long contracts.

Buyer market

OAO RZD performs as the biggest buyer of railway engineering production. Thus, according to the Strategy of the RF railway transport development to 2030, the corporation plans to spend over RUR 3.1 trln (RUR 986 bln to locomotives purchase, RUR 1.3 trln to cargo rail cars, RUR 529 bln to passenger cars purchase and RUR 280 bln to motor-wagon rolling stock). These investments will bring to the sector over 23.3 thousand locomotives, 996.000 cargo rail cars, over 29.5 passenger cars and 24.4 thousand of motor-wagon rolling stock units.
To satisfy economic demands in transportation the Strategy of development envisages to substitute wear-and-tear locomotives and rail cars to 2015. Technical requirements of the new rolling stock will correspond to the world standards in terms of safety, cargo carrying capacity, ecology, life cycle structure etc.
To implement these plans the corporation already now pays greatest attention to park renewal since the condition of the park impacts directly on satisfaction of the Russian industrial enterprises with transportation of raw material and their furnished production. In particular, according to the investment programme of the company in 2007 about 10 thousand gondola cars produced by Uralvagonzavod will be purchased as well as 1 thousand of hoppers manufactured by OAO Ruzkhimmash to transport cement. Moreover, at present the company considers opportunity to acquire additional 10 thousand cargo rail cars including 7 thousand gondola cars, 2 thousand boxcars and 1 thousand hoppers in 2007.
In general, next year will become the year of significant growth in new locomotives supply to the sector. Russian railways are to receive 500 locomotives in 2008 and almost 1.900 units in 2008-2010. “The sector of traction electric equipment is in crucial situation now since there is no production balance. Our locomotive market takes the share of only 13% from the world volume. This looks quite strange considering the fact that Russia is the biggest country in the world. Speaking of OAO RZD’s needs and possibilities of domestic manufacturers, Vadim Morozov, OAO RZD Vice-President, clarified this summer that they are misbalanced in 2 thousand locomotives”, – Yevgeny Kopein, CEO of ОАО Sinara – Transport Machines. In his view this is a huge amount since Sinara operates only 7.5 thousand units and at the same time the wear-an-tear share of the park makes 75-80%.
Another problem to pay attention to is the necessity to substitute about 700-800 worn-out locomotives annually. “However, this amount is not covered by those opportunities which were available for the biggest domestic manufacturers in the Soviet era i.e. Tbilissky electric engineering plant and Novocherkassky electric engineering works which in aggregate produced about 700 units of rolling stock annually”, Y.Kopein says.
Long-term contracts are the base for the sector forecasted development
To solve these problems OAO RZD is concluding long-term contracts within the programme of its park renewal. Thus, at the International Salon of railway machinery and technologies EXPO 1520 in Moscow, Vladimir Yakunin, OAO RZD President and Dmitry Komissarov, Head of Transmashholding Board concluded the contract on production and supply of 212 units of E5К and EP2К new electric locomotives in 2007-2009. Main line electric locomotive E5К is sequential in the series of Yermak electric locomotives and is to substitute worn-out locomotive of VL60К series. This year Russian railways are to host 10 electric locomotives and in next three years – 109 units.
New domestic EP2К electric locomotive will service the lines instead of Czech locomotives CHS2 whose maintenance cycle is over. In 2007 about 12 electric locomotives of this type will be put into operation and by 2010 – 103 units.
Moreover, ОАО RZD and Uralvagonzavod concluded a three year contract worth RUR 68 bln on supply of 40 thousand cargo rail cars until 2010. The contract was concluded on mutually profitable terms and will allow OAO RZD to cover 70-80% of needs in gondola cars, – Vladimir Yakunin emphasized. In his words, within the third stage of railway restructuring the corporation has to solve the problem of significant wear-and-tear share suffered by basic assets that makes 58% in average, including that of cargo rail cars – about 80%.
Also, OAO RZD concluded the contract with Car Engineering Plant of Mordovia, one of the biggest manufacturers of tank cars in the CIS. Thus, contractual obligations envisage supply of one thousand cement wagons in 2007 and six thousand units in 2008.
Moreover, negotiations resulted in creation of the working group which will be responsible for development of the agreement on long-term cooperation of OAO RZD and the Car Engineering Plant of Mordovia aimed at railway sector modernization and annual supply of 6-8 thousand cars of different modification.
At last, until 2010 Sinara Group JSC is to invest RUR 5.2 mln into industrial capacities of OAO Ural Car Engineering plant to produce electric locomotives of new generation. Projected capacities of the plant will make 120 units per year. In July 2007 the company signed a contract with OAO RZD that envisages supply of 25 cargo electric locomotives of direct current with commutator motor 2ES6. The contract totals RUR 2 bln. In 2008 8 two-sectional locomotives will be delivered and in 2009 – the delivery of 16 units is planned.
Y.Kopein adds that the investment volume directed into production of shunting diesel locomotives of different modes, track machinery as well as modernization of Lyudinovsky Diesel Locomotive Engineering Plant taking 20% of the Russian market of shunting diesel locomotives will make RUR 2.3 bln in 2007-2008.

Summing up

The review of the basic investment projects of the sector shows that the deficit of rolling stock is unlikely to be liquidated in long-term perspective.
In such conditions one of the most obvious ways out can become transfer to production that requires less maintenance costs but allow domestic manufacturing enterprises to expand their capacities. It is not impossible that in near future we’ll see projects on new locomotive and cars engineering plants construction. [~DETAIL_TEXT] =>

From tank cars and gondolas to the wide range of models

In 2006 in Russia some 33.5 thousand of railroad cars were manufactured (-4.8% year-on-year). According to the Ministry of Industry and Energy, in 2006 Russian enterprises acquired 40 thousand rail cargo cars including 31 thousand units purchased by private companies. Research held by IA InfoLine “Market of cargo railway rolling stock of Russia” on the basis of the data received from the enterprises and the Federal Customs Service clarifies the structure of the market, however, it does not consider export of second hand rolling stock (1.071 units in 2006) as well as OAO RZD rolling stock sale to private companies on the auctions.
In the opinion of experts, in 2007 growth in rolling stock production is expected to amount to 15% year-on-year due to boost of volumes manufactured by the biggest railway engineering enterprises of Russia who produce 85% of rail cars in the state and launch of gondola cars production by Promtractor JSC. In mid-term perspective rates of production growth will slow down a bit, though profits will be growing due to re-directing the enterprises to more expensive and technological types of rolling stock.
If to analyze the structure of cargo rail cars in terms of types of produced rolling stock, it can be found that after the period of active tank cars production in 2002-2003 the period of 2004-2006 became the one when gondola cars manufacturing dominated. In 2007 due to the fact that OAO RZD has increased the number of ordered units at Uralvagonzavod JSC, their amount will grow only at the above-mentioned enterprise. The rest market players do their best to diversify their production. This situation can be explained by such factors as follows: first of all, private companies diversify their business and, thus, diversify their demands to manufacturer, secondly, gondola cars production is rather low-profitable compared to other types of rolling stock manufacture, and at last now the Russian enterprises have to compete with the Ukrainian plants who took the course at manufacturing hoppers, fitting platforms, specialized rolling stock etc.
The volume of cargo cars export in 2006 made over 5.5 thousand units; Uralvagonzavod performed as the biggest supplier to the foreign markets. Over 80% of export cargo cars was purchased by Kazakhstan. Thus, despite significant import volumes, Russian enterprises sell about 16% to foreign buyers. This fact can be explained by several reasons. Firstly, this has to do with rather low level of competition in terms of prices set for domestic manufacturers’ production compared with that of Ukrainian; and, secondly, with the opportunity to conclude long-term export contracts that allows to optimize and forecast load of production capacities. The domestic market practices mainly one year long contracts.

Buyer market

OAO RZD performs as the biggest buyer of railway engineering production. Thus, according to the Strategy of the RF railway transport development to 2030, the corporation plans to spend over RUR 3.1 trln (RUR 986 bln to locomotives purchase, RUR 1.3 trln to cargo rail cars, RUR 529 bln to passenger cars purchase and RUR 280 bln to motor-wagon rolling stock). These investments will bring to the sector over 23.3 thousand locomotives, 996.000 cargo rail cars, over 29.5 passenger cars and 24.4 thousand of motor-wagon rolling stock units.
To satisfy economic demands in transportation the Strategy of development envisages to substitute wear-and-tear locomotives and rail cars to 2015. Technical requirements of the new rolling stock will correspond to the world standards in terms of safety, cargo carrying capacity, ecology, life cycle structure etc.
To implement these plans the corporation already now pays greatest attention to park renewal since the condition of the park impacts directly on satisfaction of the Russian industrial enterprises with transportation of raw material and their furnished production. In particular, according to the investment programme of the company in 2007 about 10 thousand gondola cars produced by Uralvagonzavod will be purchased as well as 1 thousand of hoppers manufactured by OAO Ruzkhimmash to transport cement. Moreover, at present the company considers opportunity to acquire additional 10 thousand cargo rail cars including 7 thousand gondola cars, 2 thousand boxcars and 1 thousand hoppers in 2007.
In general, next year will become the year of significant growth in new locomotives supply to the sector. Russian railways are to receive 500 locomotives in 2008 and almost 1.900 units in 2008-2010. “The sector of traction electric equipment is in crucial situation now since there is no production balance. Our locomotive market takes the share of only 13% from the world volume. This looks quite strange considering the fact that Russia is the biggest country in the world. Speaking of OAO RZD’s needs and possibilities of domestic manufacturers, Vadim Morozov, OAO RZD Vice-President, clarified this summer that they are misbalanced in 2 thousand locomotives”, – Yevgeny Kopein, CEO of ОАО Sinara – Transport Machines. In his view this is a huge amount since Sinara operates only 7.5 thousand units and at the same time the wear-an-tear share of the park makes 75-80%.
Another problem to pay attention to is the necessity to substitute about 700-800 worn-out locomotives annually. “However, this amount is not covered by those opportunities which were available for the biggest domestic manufacturers in the Soviet era i.e. Tbilissky electric engineering plant and Novocherkassky electric engineering works which in aggregate produced about 700 units of rolling stock annually”, Y.Kopein says.
Long-term contracts are the base for the sector forecasted development
To solve these problems OAO RZD is concluding long-term contracts within the programme of its park renewal. Thus, at the International Salon of railway machinery and technologies EXPO 1520 in Moscow, Vladimir Yakunin, OAO RZD President and Dmitry Komissarov, Head of Transmashholding Board concluded the contract on production and supply of 212 units of E5К and EP2К new electric locomotives in 2007-2009. Main line electric locomotive E5К is sequential in the series of Yermak electric locomotives and is to substitute worn-out locomotive of VL60К series. This year Russian railways are to host 10 electric locomotives and in next three years – 109 units.
New domestic EP2К electric locomotive will service the lines instead of Czech locomotives CHS2 whose maintenance cycle is over. In 2007 about 12 electric locomotives of this type will be put into operation and by 2010 – 103 units.
Moreover, ОАО RZD and Uralvagonzavod concluded a three year contract worth RUR 68 bln on supply of 40 thousand cargo rail cars until 2010. The contract was concluded on mutually profitable terms and will allow OAO RZD to cover 70-80% of needs in gondola cars, – Vladimir Yakunin emphasized. In his words, within the third stage of railway restructuring the corporation has to solve the problem of significant wear-and-tear share suffered by basic assets that makes 58% in average, including that of cargo rail cars – about 80%.
Also, OAO RZD concluded the contract with Car Engineering Plant of Mordovia, one of the biggest manufacturers of tank cars in the CIS. Thus, contractual obligations envisage supply of one thousand cement wagons in 2007 and six thousand units in 2008.
Moreover, negotiations resulted in creation of the working group which will be responsible for development of the agreement on long-term cooperation of OAO RZD and the Car Engineering Plant of Mordovia aimed at railway sector modernization and annual supply of 6-8 thousand cars of different modification.
At last, until 2010 Sinara Group JSC is to invest RUR 5.2 mln into industrial capacities of OAO Ural Car Engineering plant to produce electric locomotives of new generation. Projected capacities of the plant will make 120 units per year. In July 2007 the company signed a contract with OAO RZD that envisages supply of 25 cargo electric locomotives of direct current with commutator motor 2ES6. The contract totals RUR 2 bln. In 2008 8 two-sectional locomotives will be delivered and in 2009 – the delivery of 16 units is planned.
Y.Kopein adds that the investment volume directed into production of shunting diesel locomotives of different modes, track machinery as well as modernization of Lyudinovsky Diesel Locomotive Engineering Plant taking 20% of the Russian market of shunting diesel locomotives will make RUR 2.3 bln in 2007-2008.

Summing up

The review of the basic investment projects of the sector shows that the deficit of rolling stock is unlikely to be liquidated in long-term perspective.
In such conditions one of the most obvious ways out can become transfer to production that requires less maintenance costs but allow domestic manufacturing enterprises to expand their capacities. It is not impossible that in near future we’ll see projects on new locomotive and cars engineering plants construction. [DETAIL_TEXT_TYPE] => html [~DETAIL_TEXT_TYPE] => html [PREVIEW_TEXT] => Deficit in rolling stock has resulted in railway machine engineering boom and as a result growth of demand for new railway engineering production by OAO RZD and private operators.
In 2007 growth of rolling stock production is estimated at 15%. [~PREVIEW_TEXT] => Deficit in rolling stock has resulted in railway machine engineering boom and as a result growth of demand for new railway engineering production by OAO RZD and private operators.
In 2007 growth of rolling stock production is estimated at 15%. 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РЖД-Партнер

ОАО RZD outlines the long-term targets

Mr.GapanovichRailway engineering development passes ahead of the general rates of industrial development in Russia.  OAO RZD Vice-President Valentin Gapanovich comments on the basic prospects of the sector, production acceptance criteria and problems the national engineering sector is to face in the near future. 
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 A Technological break is needed

– Mr.Gapanovich, what were the offers OAO RZD submitted to the developers of the Strategy of transport engineering? In your opinion, how helpful can this document be for OAO RZD rolling stock renewal?
– Being the biggest consumer of machine engineering production OAO RZD is objectively interested in rapid development of this sector. That was the reason why the corporation actively participated in the Strategy’s development having submitted about 20 proposals for the document’s amendment. Most of them were regarded positively and incorporated into the document.
OAO RZD concentrated mainly on the problem of whether the transport engineers will be capable of providing the quality and efficiency of manufactured production needed in the short-term. Another crucial issue for us was if the machine engineering sector can cover significant technological lag we are observing at the moment and how the problem of staff deficit at the enterprises will be solved. OAO RZD interest in these very problems is quite understandable. Cargo turnover growth and passenger turnover increase are forecasted to reach 13% and 5% respectively by 2010. Consequently, to meet these plans we need to increase train mass and speed as well as to improve locomotives haulage parameters and enhance the rolling stock park with the new generation of railroad cars. Moreover, for the past 15 years the sector has accumulated systemic problems concerning technical equipment and they are still unsolved. This, first of all, has to do with poor state of locomotive and cargo rail cars parks. Thus, annual additional expenditures to operate worn-out machinery amount to RUR 5 bln. To solve this problem we need to work out and produce modern high-technology train units and locomotives. In particular, this sounds more realistic considering the fact that OAO RZD’s general scheme of development envisages purchase of modern machinery that corresponds to world standards. That is why the basis of the transport engineering development strategy should be formed in the light of the ability of the domestic railway machinery manufacturers to satisfy the national market in the next 25-30 years under conditions of tough competition with foreign market players. Also, we are to consider the fact that, on average, developing complicated railway machinery takes about 10 years and the term of this machinery maintenance – about 40 years.
– In your opinion, does domestic engineering production correspond to world technical and technological standards?
– Nowadays, the transport engineering sector faces certain difficulties that have to do with obsolete equipment, lack of professional staff as well as poor financing and support from the state, tough competition from foreign manufacturers and technological lag. To solve these problems we need to consolidate our efforts and develop the mechanisms of state-and-private partnership for key projects and unfolding programmes.
Not long before due to certain transport engineering sector stagnation, OAO RZD used to perform as a developer of new rolling stock, having invested hundreds of millions of rubles into these projects. The company’s efforts were useful and brought new models to the market to substitute worn-out rolling stock. Currently, new types of fuel are being developed; new locomotives using natural gas are being worked on. Hydrogen technologies are being looked at as well.
Now OAO RZD performs as a strategic customer of the modern rolling stock and is ready to give technical demands for the production of locomotives, motor wagon rolling stock, cargo and passenger rail cars of a new generation. The Board of the company has approved a strategy of innovative development that defines the directions of railway complex functioning for the next 10 years. That is why the company is capable of outlining long-term technological guidelines for the machine engineering complex. At the same time it is crucially important to combine innovative domestic improvements with foreign technologies since this very approach will prevent us from losing time and money on efforts to reach the level of the world producers and give Russian engineers a chance to concentrate on new generation rolling stock construction based on what they have achieved so far. To substitute worn-out railway rolling stock domestic manufacturers produce the whole range of the newest models of machinery. However, compared with the foreign units they do not stand up in terms of reliability. The basic reason for such failure is obsolete technological equipment in Russian machine engineering plants.
Thus, due to low rates of rolling stock renewal, OAO RZD has to operate about 7 thousand worn-out locomotives, 2 thousand passenger rail cars, 3 thousand electric train cars and over 110 thousand cargo rail cars. The average age of the locomotive the company operates is 20 years, passenger cars – 17 years, and cargo rail cars – 21 years. To cope with transportation volumes planned for 2010 the corporation will have to purchase about 20 thousand new rail cars annually, including gondola cars – about 15 - 18 thousand units per year.

Success lies in cooperation of consumer and manufacturer

– What are OAO RZD’s requests to their suppliers?
– In respect of rolling stock our goal is to reduce maintenance costs which can only be achieved by purchase of new generation rolling stock. Reaching this will be possible if the Russian machine engineering complex amends its general development strategy and solves two major tasks:
• to improve technical-economic level of the acting cars and locomotives;
• to keep the prices for the new modern production on a level acceptable to the Russian railways and national economics.
By placing orders for railway machinery for the long-term perspective with domestic enterprises, OAO RZD aspires to find improvement in quality and the approach to collaboration between customer and manufacturer. By now ОАО RZD has been using all their possible opportunities and potential resources to grow and develop. That is why the further development of the national machine engineering complex will be a success only with state support and coordination.
It should be mentioned that sometimes OAO RZD has to buy production which does not correspond to set requirements. For example, it often happens that supplied rail cars have high tare weight and, thus, low carrying capacity. Consequently, they are not competitive compared with foreign units. This year we have started trials of rail cars with aluminium extrusive profiles. This new construction will allow us to operate a car body volume of 100 cubic meters with a tare mass of 18 tons and to increase car carrying capacity by 6 tons.
Requirements set for enhancing a car run to 500 thousand kilometers haven’t been realized yet. New samples of bodies are only trying to reach this level. Considering the growing demands in rolling stock and analyzing the present day situation our key tasks are as follows:
• production capacities enhancement and rolling stock manufacturing growth;
• activation of trial-construction work and liquidation of the technological lag between domestic and foreign manufacturers.

New Technologies Wanted

– Are the modern technologies for new types of rolling stock being introduced in domestic enterprises?
– The major problem of successful development of the sector is the technological lag our enterprises suffer. The efficient ways to eliminate this lag between domestic manufacturers and leading world engineering companies are the practice of giving customs privileges to foreign technologies bringing localization in to the country; creation of an experimental special economic zone developed for solving the current problems and aimed at developing new types of rolling stock on the basis of localized foreign technologies; allocation of subsidies within the Federal target programme “Modernization of the RF transport system” to implement crucially important projects.
At present there are certain areas which need innovations badly. For example, manufacturing rolling stock and elements for high-speed transportation hasn’t been launched. To develop this production we need modern technologies and scientific projects. In particular, this was the reason behind the joint venture launch implemented by Transmashholding and Bombardier Transportation. This enterprise plans to produce power converters for the new generation of electric locomotives on the basis of the latest technologies developed by Bombardier Transportation.
Another example of the need to apply world technologies can be given. Now the corporation has been testing a cassette type of railroad ball bearing with a stated overhaul period of 1 million kilometers. However, the initial results received within the trial haven’t proved the capability of the bearing to be functional with no repair for the 8 year- period stated by the manufacturer. To solve this problem OAO RZD is transferring to new principles of dealing with suppliers that would be harmonized according to the ISO and IRIS international standards. All these standards guarantee complex parameters of safety, maintenance reliability and cost of life-cycle of the rolling stock units that would form the basis of technical and commercial policy carried out by the corporation towards machine engineering enterprises. New technical requirements are given in the documents developed for new rolling stock order and these requirements are much tougher than they used to be. Thus, they envisage heavier responsibility for manufacturers for the production supplied to the corporation.
– What projects are implemented regarding high-speed transportation now?
– The most important result achieved now is the launch of the first stage of the high-speed transportation development programme carried out by OAO RZD. At present traveling time from Moscow to Saint-Petersburg is 3 hours 55 minutes. In future high-speed transportation will be organized on the route Saint-Petersburg – Moscow – Nizhny Novgorod. The train unit will consist of 10 coaches with an average trainload of 605 passengers.
Now we are launching a joint-venture with the Finnish railways to organize high-speed transportation on the route Saint-Petersburg – Helsinki. Currently the activities to harmonize the EU and Russian standards in respect of rolling stock certification are implemented. First of all, this has to do with the parameters of car body strength and electromagnetic compatibility. This direction of the RF transport system development needs fundamentally new high-technological production. Transport engineering development will assist in a quality improvement of the Russian economic structure and stimulate development of an innovative sector of the state. Growth in locomotive and railroad car production will provide enterprises with the full load of industrial capacities and provide an opportunity to set up great number of new working places.
– What steps is the OAO RZD developing to eliminate the problems transport sector faces now?
– To solve all the above-mentioned problems we need to consolidate our efforts. In other words, in order to strengthen partnership with machine engineering enterprises, to follow the integration policy and coordinate production, OAO RZD initiates the launch of the Russian Union of Railway Machine Engineering Manufacturers. Among the companies ready to join the Union are: ZАО Transmashholding, Evrazholding, Railroad Car Machine Engineering Company of Mordovia, Nizhnetagilsky and Novokuznetsky metallurgical complexes, Vyksunsky metallurgical works, Uralvagonzavod JSC etc. The Union is to support the interests of the Russian Federation for high-technology project promotion in international markets. In general the situation in the Russian transport engineering market is improving. Production growth rates in the transport engineering sector exceed growth rates demonstrated by the industry in general. Domestic demand on high-technology production showed by railways is creating a basis to turn national railway engineering into a “locomotive” of economic growth. I am sure, railway engineering development is to become a key priority of state innovative and industrial policy in the near future. That is why the state has to strengthen intersectoral support – industrial complexes launching in the transport sector. In this respect it should be said that balancing the participants’ interests with joining mutually profitable efforts will allow creation of perspective projects of a new generation and implement intersectoral projects of technical re-equipment of railway transport.
– What are the innovations the transport business community has to expect regarding amendment of the normative and legislative base?
– Consider the fact that administrative reform is currently unfolding and the old normative base does not correspond to modern market conditions. Moreover, the current normative base does not correspond to the law “On technical regulation” which has set the new structure of obligatory demands regarding production and services. As a result, now about 8.5 thousand documents regulating railway transport functioning are to be amended and turned into special technical regulations, national standards and norms for enterprises. The normative base reform is being carried out in the following directions:
• formation of the documents dictating obligatory terms for every single participant in the railway market – special technical regulations (federal laws and Governmental regulations);
• development of supporting documents (Governmental regulations);
• development of national standards.
Moreover, having no state support we cannot be efficient in promoting Russian railway engineering production in international markets. Besides traditional CIS markets our engineering complex can enter the market of Central Asia, India and Africa. To solve this task we need state support for highly efficient rolling stock development. This will allow Russia to create one of the world centers of locomotive and car engineering that in its turn will need significant concentration of industrial capacities, experience and capital.
Moreover, we should not forget that the infrastructure of innovative activities will demand highly professional staff capable of reaching a break-through in railway engineering.

biography

Born in 1955, Gapanovich graduated from the Novosibirsk Institute of Railway Engineers in 1992, and in 1998 studied at the Academy of Economics under the Government of the Russian Federation. Gapanovich specialises in rail transport processes. He has held various posts at Russian Railways, including: 1989-1998: Head, Locomotive Depot, Novokuznetsk-Kemerovo Railways; Chief Engineer, Novokuznets Section of Kemerovo Railways; Deputy Engineer, Kuzbass Section, West Siberian Railways. 1998-1999: Deputy Head, Locomotive and Wagon Management, West Siberian Railways, Deputy Head, Railways. 2000-2003: Chief Engineer, October Railways. 2003: Vice-President, Russian Railways. Gapanovich is also chairman of a number of important committees and working groups at Russian Railways. 

[~DETAIL_TEXT] =>

 A Technological break is needed

– Mr.Gapanovich, what were the offers OAO RZD submitted to the developers of the Strategy of transport engineering? In your opinion, how helpful can this document be for OAO RZD rolling stock renewal?
– Being the biggest consumer of machine engineering production OAO RZD is objectively interested in rapid development of this sector. That was the reason why the corporation actively participated in the Strategy’s development having submitted about 20 proposals for the document’s amendment. Most of them were regarded positively and incorporated into the document.
OAO RZD concentrated mainly on the problem of whether the transport engineers will be capable of providing the quality and efficiency of manufactured production needed in the short-term. Another crucial issue for us was if the machine engineering sector can cover significant technological lag we are observing at the moment and how the problem of staff deficit at the enterprises will be solved. OAO RZD interest in these very problems is quite understandable. Cargo turnover growth and passenger turnover increase are forecasted to reach 13% and 5% respectively by 2010. Consequently, to meet these plans we need to increase train mass and speed as well as to improve locomotives haulage parameters and enhance the rolling stock park with the new generation of railroad cars. Moreover, for the past 15 years the sector has accumulated systemic problems concerning technical equipment and they are still unsolved. This, first of all, has to do with poor state of locomotive and cargo rail cars parks. Thus, annual additional expenditures to operate worn-out machinery amount to RUR 5 bln. To solve this problem we need to work out and produce modern high-technology train units and locomotives. In particular, this sounds more realistic considering the fact that OAO RZD’s general scheme of development envisages purchase of modern machinery that corresponds to world standards. That is why the basis of the transport engineering development strategy should be formed in the light of the ability of the domestic railway machinery manufacturers to satisfy the national market in the next 25-30 years under conditions of tough competition with foreign market players. Also, we are to consider the fact that, on average, developing complicated railway machinery takes about 10 years and the term of this machinery maintenance – about 40 years.
– In your opinion, does domestic engineering production correspond to world technical and technological standards?
– Nowadays, the transport engineering sector faces certain difficulties that have to do with obsolete equipment, lack of professional staff as well as poor financing and support from the state, tough competition from foreign manufacturers and technological lag. To solve these problems we need to consolidate our efforts and develop the mechanisms of state-and-private partnership for key projects and unfolding programmes.
Not long before due to certain transport engineering sector stagnation, OAO RZD used to perform as a developer of new rolling stock, having invested hundreds of millions of rubles into these projects. The company’s efforts were useful and brought new models to the market to substitute worn-out rolling stock. Currently, new types of fuel are being developed; new locomotives using natural gas are being worked on. Hydrogen technologies are being looked at as well.
Now OAO RZD performs as a strategic customer of the modern rolling stock and is ready to give technical demands for the production of locomotives, motor wagon rolling stock, cargo and passenger rail cars of a new generation. The Board of the company has approved a strategy of innovative development that defines the directions of railway complex functioning for the next 10 years. That is why the company is capable of outlining long-term technological guidelines for the machine engineering complex. At the same time it is crucially important to combine innovative domestic improvements with foreign technologies since this very approach will prevent us from losing time and money on efforts to reach the level of the world producers and give Russian engineers a chance to concentrate on new generation rolling stock construction based on what they have achieved so far. To substitute worn-out railway rolling stock domestic manufacturers produce the whole range of the newest models of machinery. However, compared with the foreign units they do not stand up in terms of reliability. The basic reason for such failure is obsolete technological equipment in Russian machine engineering plants.
Thus, due to low rates of rolling stock renewal, OAO RZD has to operate about 7 thousand worn-out locomotives, 2 thousand passenger rail cars, 3 thousand electric train cars and over 110 thousand cargo rail cars. The average age of the locomotive the company operates is 20 years, passenger cars – 17 years, and cargo rail cars – 21 years. To cope with transportation volumes planned for 2010 the corporation will have to purchase about 20 thousand new rail cars annually, including gondola cars – about 15 - 18 thousand units per year.

Success lies in cooperation of consumer and manufacturer

– What are OAO RZD’s requests to their suppliers?
– In respect of rolling stock our goal is to reduce maintenance costs which can only be achieved by purchase of new generation rolling stock. Reaching this will be possible if the Russian machine engineering complex amends its general development strategy and solves two major tasks:
• to improve technical-economic level of the acting cars and locomotives;
• to keep the prices for the new modern production on a level acceptable to the Russian railways and national economics.
By placing orders for railway machinery for the long-term perspective with domestic enterprises, OAO RZD aspires to find improvement in quality and the approach to collaboration between customer and manufacturer. By now ОАО RZD has been using all their possible opportunities and potential resources to grow and develop. That is why the further development of the national machine engineering complex will be a success only with state support and coordination.
It should be mentioned that sometimes OAO RZD has to buy production which does not correspond to set requirements. For example, it often happens that supplied rail cars have high tare weight and, thus, low carrying capacity. Consequently, they are not competitive compared with foreign units. This year we have started trials of rail cars with aluminium extrusive profiles. This new construction will allow us to operate a car body volume of 100 cubic meters with a tare mass of 18 tons and to increase car carrying capacity by 6 tons.
Requirements set for enhancing a car run to 500 thousand kilometers haven’t been realized yet. New samples of bodies are only trying to reach this level. Considering the growing demands in rolling stock and analyzing the present day situation our key tasks are as follows:
• production capacities enhancement and rolling stock manufacturing growth;
• activation of trial-construction work and liquidation of the technological lag between domestic and foreign manufacturers.

New Technologies Wanted

– Are the modern technologies for new types of rolling stock being introduced in domestic enterprises?
– The major problem of successful development of the sector is the technological lag our enterprises suffer. The efficient ways to eliminate this lag between domestic manufacturers and leading world engineering companies are the practice of giving customs privileges to foreign technologies bringing localization in to the country; creation of an experimental special economic zone developed for solving the current problems and aimed at developing new types of rolling stock on the basis of localized foreign technologies; allocation of subsidies within the Federal target programme “Modernization of the RF transport system” to implement crucially important projects.
At present there are certain areas which need innovations badly. For example, manufacturing rolling stock and elements for high-speed transportation hasn’t been launched. To develop this production we need modern technologies and scientific projects. In particular, this was the reason behind the joint venture launch implemented by Transmashholding and Bombardier Transportation. This enterprise plans to produce power converters for the new generation of electric locomotives on the basis of the latest technologies developed by Bombardier Transportation.
Another example of the need to apply world technologies can be given. Now the corporation has been testing a cassette type of railroad ball bearing with a stated overhaul period of 1 million kilometers. However, the initial results received within the trial haven’t proved the capability of the bearing to be functional with no repair for the 8 year- period stated by the manufacturer. To solve this problem OAO RZD is transferring to new principles of dealing with suppliers that would be harmonized according to the ISO and IRIS international standards. All these standards guarantee complex parameters of safety, maintenance reliability and cost of life-cycle of the rolling stock units that would form the basis of technical and commercial policy carried out by the corporation towards machine engineering enterprises. New technical requirements are given in the documents developed for new rolling stock order and these requirements are much tougher than they used to be. Thus, they envisage heavier responsibility for manufacturers for the production supplied to the corporation.
– What projects are implemented regarding high-speed transportation now?
– The most important result achieved now is the launch of the first stage of the high-speed transportation development programme carried out by OAO RZD. At present traveling time from Moscow to Saint-Petersburg is 3 hours 55 minutes. In future high-speed transportation will be organized on the route Saint-Petersburg – Moscow – Nizhny Novgorod. The train unit will consist of 10 coaches with an average trainload of 605 passengers.
Now we are launching a joint-venture with the Finnish railways to organize high-speed transportation on the route Saint-Petersburg – Helsinki. Currently the activities to harmonize the EU and Russian standards in respect of rolling stock certification are implemented. First of all, this has to do with the parameters of car body strength and electromagnetic compatibility. This direction of the RF transport system development needs fundamentally new high-technological production. Transport engineering development will assist in a quality improvement of the Russian economic structure and stimulate development of an innovative sector of the state. Growth in locomotive and railroad car production will provide enterprises with the full load of industrial capacities and provide an opportunity to set up great number of new working places.
– What steps is the OAO RZD developing to eliminate the problems transport sector faces now?
– To solve all the above-mentioned problems we need to consolidate our efforts. In other words, in order to strengthen partnership with machine engineering enterprises, to follow the integration policy and coordinate production, OAO RZD initiates the launch of the Russian Union of Railway Machine Engineering Manufacturers. Among the companies ready to join the Union are: ZАО Transmashholding, Evrazholding, Railroad Car Machine Engineering Company of Mordovia, Nizhnetagilsky and Novokuznetsky metallurgical complexes, Vyksunsky metallurgical works, Uralvagonzavod JSC etc. The Union is to support the interests of the Russian Federation for high-technology project promotion in international markets. In general the situation in the Russian transport engineering market is improving. Production growth rates in the transport engineering sector exceed growth rates demonstrated by the industry in general. Domestic demand on high-technology production showed by railways is creating a basis to turn national railway engineering into a “locomotive” of economic growth. I am sure, railway engineering development is to become a key priority of state innovative and industrial policy in the near future. That is why the state has to strengthen intersectoral support – industrial complexes launching in the transport sector. In this respect it should be said that balancing the participants’ interests with joining mutually profitable efforts will allow creation of perspective projects of a new generation and implement intersectoral projects of technical re-equipment of railway transport.
– What are the innovations the transport business community has to expect regarding amendment of the normative and legislative base?
– Consider the fact that administrative reform is currently unfolding and the old normative base does not correspond to modern market conditions. Moreover, the current normative base does not correspond to the law “On technical regulation” which has set the new structure of obligatory demands regarding production and services. As a result, now about 8.5 thousand documents regulating railway transport functioning are to be amended and turned into special technical regulations, national standards and norms for enterprises. The normative base reform is being carried out in the following directions:
• formation of the documents dictating obligatory terms for every single participant in the railway market – special technical regulations (federal laws and Governmental regulations);
• development of supporting documents (Governmental regulations);
• development of national standards.
Moreover, having no state support we cannot be efficient in promoting Russian railway engineering production in international markets. Besides traditional CIS markets our engineering complex can enter the market of Central Asia, India and Africa. To solve this task we need state support for highly efficient rolling stock development. This will allow Russia to create one of the world centers of locomotive and car engineering that in its turn will need significant concentration of industrial capacities, experience and capital.
Moreover, we should not forget that the infrastructure of innovative activities will demand highly professional staff capable of reaching a break-through in railway engineering.

biography

Born in 1955, Gapanovich graduated from the Novosibirsk Institute of Railway Engineers in 1992, and in 1998 studied at the Academy of Economics under the Government of the Russian Federation. Gapanovich specialises in rail transport processes. He has held various posts at Russian Railways, including: 1989-1998: Head, Locomotive Depot, Novokuznetsk-Kemerovo Railways; Chief Engineer, Novokuznets Section of Kemerovo Railways; Deputy Engineer, Kuzbass Section, West Siberian Railways. 1998-1999: Deputy Head, Locomotive and Wagon Management, West Siberian Railways, Deputy Head, Railways. 2000-2003: Chief Engineer, October Railways. 2003: Vice-President, Russian Railways. Gapanovich is also chairman of a number of important committees and working groups at Russian Railways. 

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 A Technological break is needed

– Mr.Gapanovich, what were the offers OAO RZD submitted to the developers of the Strategy of transport engineering? In your opinion, how helpful can this document be for OAO RZD rolling stock renewal?
– Being the biggest consumer of machine engineering production OAO RZD is objectively interested in rapid development of this sector. That was the reason why the corporation actively participated in the Strategy’s development having submitted about 20 proposals for the document’s amendment. Most of them were regarded positively and incorporated into the document.
OAO RZD concentrated mainly on the problem of whether the transport engineers will be capable of providing the quality and efficiency of manufactured production needed in the short-term. Another crucial issue for us was if the machine engineering sector can cover significant technological lag we are observing at the moment and how the problem of staff deficit at the enterprises will be solved. OAO RZD interest in these very problems is quite understandable. Cargo turnover growth and passenger turnover increase are forecasted to reach 13% and 5% respectively by 2010. Consequently, to meet these plans we need to increase train mass and speed as well as to improve locomotives haulage parameters and enhance the rolling stock park with the new generation of railroad cars. Moreover, for the past 15 years the sector has accumulated systemic problems concerning technical equipment and they are still unsolved. This, first of all, has to do with poor state of locomotive and cargo rail cars parks. Thus, annual additional expenditures to operate worn-out machinery amount to RUR 5 bln. To solve this problem we need to work out and produce modern high-technology train units and locomotives. In particular, this sounds more realistic considering the fact that OAO RZD’s general scheme of development envisages purchase of modern machinery that corresponds to world standards. That is why the basis of the transport engineering development strategy should be formed in the light of the ability of the domestic railway machinery manufacturers to satisfy the national market in the next 25-30 years under conditions of tough competition with foreign market players. Also, we are to consider the fact that, on average, developing complicated railway machinery takes about 10 years and the term of this machinery maintenance – about 40 years.
– In your opinion, does domestic engineering production correspond to world technical and technological standards?
– Nowadays, the transport engineering sector faces certain difficulties that have to do with obsolete equipment, lack of professional staff as well as poor financing and support from the state, tough competition from foreign manufacturers and technological lag. To solve these problems we need to consolidate our efforts and develop the mechanisms of state-and-private partnership for key projects and unfolding programmes.
Not long before due to certain transport engineering sector stagnation, OAO RZD used to perform as a developer of new rolling stock, having invested hundreds of millions of rubles into these projects. The company’s efforts were useful and brought new models to the market to substitute worn-out rolling stock. Currently, new types of fuel are being developed; new locomotives using natural gas are being worked on. Hydrogen technologies are being looked at as well.
Now OAO RZD performs as a strategic customer of the modern rolling stock and is ready to give technical demands for the production of locomotives, motor wagon rolling stock, cargo and passenger rail cars of a new generation. The Board of the company has approved a strategy of innovative development that defines the directions of railway complex functioning for the next 10 years. That is why the company is capable of outlining long-term technological guidelines for the machine engineering complex. At the same time it is crucially important to combine innovative domestic improvements with foreign technologies since this very approach will prevent us from losing time and money on efforts to reach the level of the world producers and give Russian engineers a chance to concentrate on new generation rolling stock construction based on what they have achieved so far. To substitute worn-out railway rolling stock domestic manufacturers produce the whole range of the newest models of machinery. However, compared with the foreign units they do not stand up in terms of reliability. The basic reason for such failure is obsolete technological equipment in Russian machine engineering plants.
Thus, due to low rates of rolling stock renewal, OAO RZD has to operate about 7 thousand worn-out locomotives, 2 thousand passenger rail cars, 3 thousand electric train cars and over 110 thousand cargo rail cars. The average age of the locomotive the company operates is 20 years, passenger cars – 17 years, and cargo rail cars – 21 years. To cope with transportation volumes planned for 2010 the corporation will have to purchase about 20 thousand new rail cars annually, including gondola cars – about 15 - 18 thousand units per year.

Success lies in cooperation of consumer and manufacturer

– What are OAO RZD’s requests to their suppliers?
– In respect of rolling stock our goal is to reduce maintenance costs which can only be achieved by purchase of new generation rolling stock. Reaching this will be possible if the Russian machine engineering complex amends its general development strategy and solves two major tasks:
• to improve technical-economic level of the acting cars and locomotives;
• to keep the prices for the new modern production on a level acceptable to the Russian railways and national economics.
By placing orders for railway machinery for the long-term perspective with domestic enterprises, OAO RZD aspires to find improvement in quality and the approach to collaboration between customer and manufacturer. By now ОАО RZD has been using all their possible opportunities and potential resources to grow and develop. That is why the further development of the national machine engineering complex will be a success only with state support and coordination.
It should be mentioned that sometimes OAO RZD has to buy production which does not correspond to set requirements. For example, it often happens that supplied rail cars have high tare weight and, thus, low carrying capacity. Consequently, they are not competitive compared with foreign units. This year we have started trials of rail cars with aluminium extrusive profiles. This new construction will allow us to operate a car body volume of 100 cubic meters with a tare mass of 18 tons and to increase car carrying capacity by 6 tons.
Requirements set for enhancing a car run to 500 thousand kilometers haven’t been realized yet. New samples of bodies are only trying to reach this level. Considering the growing demands in rolling stock and analyzing the present day situation our key tasks are as follows:
• production capacities enhancement and rolling stock manufacturing growth;
• activation of trial-construction work and liquidation of the technological lag between domestic and foreign manufacturers.

New Technologies Wanted

– Are the modern technologies for new types of rolling stock being introduced in domestic enterprises?
– The major problem of successful development of the sector is the technological lag our enterprises suffer. The efficient ways to eliminate this lag between domestic manufacturers and leading world engineering companies are the practice of giving customs privileges to foreign technologies bringing localization in to the country; creation of an experimental special economic zone developed for solving the current problems and aimed at developing new types of rolling stock on the basis of localized foreign technologies; allocation of subsidies within the Federal target programme “Modernization of the RF transport system” to implement crucially important projects.
At present there are certain areas which need innovations badly. For example, manufacturing rolling stock and elements for high-speed transportation hasn’t been launched. To develop this production we need modern technologies and scientific projects. In particular, this was the reason behind the joint venture launch implemented by Transmashholding and Bombardier Transportation. This enterprise plans to produce power converters for the new generation of electric locomotives on the basis of the latest technologies developed by Bombardier Transportation.
Another example of the need to apply world technologies can be given. Now the corporation has been testing a cassette type of railroad ball bearing with a stated overhaul period of 1 million kilometers. However, the initial results received within the trial haven’t proved the capability of the bearing to be functional with no repair for the 8 year- period stated by the manufacturer. To solve this problem OAO RZD is transferring to new principles of dealing with suppliers that would be harmonized according to the ISO and IRIS international standards. All these standards guarantee complex parameters of safety, maintenance reliability and cost of life-cycle of the rolling stock units that would form the basis of technical and commercial policy carried out by the corporation towards machine engineering enterprises. New technical requirements are given in the documents developed for new rolling stock order and these requirements are much tougher than they used to be. Thus, they envisage heavier responsibility for manufacturers for the production supplied to the corporation.
– What projects are implemented regarding high-speed transportation now?
– The most important result achieved now is the launch of the first stage of the high-speed transportation development programme carried out by OAO RZD. At present traveling time from Moscow to Saint-Petersburg is 3 hours 55 minutes. In future high-speed transportation will be organized on the route Saint-Petersburg – Moscow – Nizhny Novgorod. The train unit will consist of 10 coaches with an average trainload of 605 passengers.
Now we are launching a joint-venture with the Finnish railways to organize high-speed transportation on the route Saint-Petersburg – Helsinki. Currently the activities to harmonize the EU and Russian standards in respect of rolling stock certification are implemented. First of all, this has to do with the parameters of car body strength and electromagnetic compatibility. This direction of the RF transport system development needs fundamentally new high-technological production. Transport engineering development will assist in a quality improvement of the Russian economic structure and stimulate development of an innovative sector of the state. Growth in locomotive and railroad car production will provide enterprises with the full load of industrial capacities and provide an opportunity to set up great number of new working places.
– What steps is the OAO RZD developing to eliminate the problems transport sector faces now?
– To solve all the above-mentioned problems we need to consolidate our efforts. In other words, in order to strengthen partnership with machine engineering enterprises, to follow the integration policy and coordinate production, OAO RZD initiates the launch of the Russian Union of Railway Machine Engineering Manufacturers. Among the companies ready to join the Union are: ZАО Transmashholding, Evrazholding, Railroad Car Machine Engineering Company of Mordovia, Nizhnetagilsky and Novokuznetsky metallurgical complexes, Vyksunsky metallurgical works, Uralvagonzavod JSC etc. The Union is to support the interests of the Russian Federation for high-technology project promotion in international markets. In general the situation in the Russian transport engineering market is improving. Production growth rates in the transport engineering sector exceed growth rates demonstrated by the industry in general. Domestic demand on high-technology production showed by railways is creating a basis to turn national railway engineering into a “locomotive” of economic growth. I am sure, railway engineering development is to become a key priority of state innovative and industrial policy in the near future. That is why the state has to strengthen intersectoral support – industrial complexes launching in the transport sector. In this respect it should be said that balancing the participants’ interests with joining mutually profitable efforts will allow creation of perspective projects of a new generation and implement intersectoral projects of technical re-equipment of railway transport.
– What are the innovations the transport business community has to expect regarding amendment of the normative and legislative base?
– Consider the fact that administrative reform is currently unfolding and the old normative base does not correspond to modern market conditions. Moreover, the current normative base does not correspond to the law “On technical regulation” which has set the new structure of obligatory demands regarding production and services. As a result, now about 8.5 thousand documents regulating railway transport functioning are to be amended and turned into special technical regulations, national standards and norms for enterprises. The normative base reform is being carried out in the following directions:
• formation of the documents dictating obligatory terms for every single participant in the railway market – special technical regulations (federal laws and Governmental regulations);
• development of supporting documents (Governmental regulations);
• development of national standards.
Moreover, having no state support we cannot be efficient in promoting Russian railway engineering production in international markets. Besides traditional CIS markets our engineering complex can enter the market of Central Asia, India and Africa. To solve this task we need state support for highly efficient rolling stock development. This will allow Russia to create one of the world centers of locomotive and car engineering that in its turn will need significant concentration of industrial capacities, experience and capital.
Moreover, we should not forget that the infrastructure of innovative activities will demand highly professional staff capable of reaching a break-through in railway engineering.

biography

Born in 1955, Gapanovich graduated from the Novosibirsk Institute of Railway Engineers in 1992, and in 1998 studied at the Academy of Economics under the Government of the Russian Federation. Gapanovich specialises in rail transport processes. He has held various posts at Russian Railways, including: 1989-1998: Head, Locomotive Depot, Novokuznetsk-Kemerovo Railways; Chief Engineer, Novokuznets Section of Kemerovo Railways; Deputy Engineer, Kuzbass Section, West Siberian Railways. 1998-1999: Deputy Head, Locomotive and Wagon Management, West Siberian Railways, Deputy Head, Railways. 2000-2003: Chief Engineer, October Railways. 2003: Vice-President, Russian Railways. Gapanovich is also chairman of a number of important committees and working groups at Russian Railways. 

[~DETAIL_TEXT] =>

 A Technological break is needed

– Mr.Gapanovich, what were the offers OAO RZD submitted to the developers of the Strategy of transport engineering? In your opinion, how helpful can this document be for OAO RZD rolling stock renewal?
– Being the biggest consumer of machine engineering production OAO RZD is objectively interested in rapid development of this sector. That was the reason why the corporation actively participated in the Strategy’s development having submitted about 20 proposals for the document’s amendment. Most of them were regarded positively and incorporated into the document.
OAO RZD concentrated mainly on the problem of whether the transport engineers will be capable of providing the quality and efficiency of manufactured production needed in the short-term. Another crucial issue for us was if the machine engineering sector can cover significant technological lag we are observing at the moment and how the problem of staff deficit at the enterprises will be solved. OAO RZD interest in these very problems is quite understandable. Cargo turnover growth and passenger turnover increase are forecasted to reach 13% and 5% respectively by 2010. Consequently, to meet these plans we need to increase train mass and speed as well as to improve locomotives haulage parameters and enhance the rolling stock park with the new generation of railroad cars. Moreover, for the past 15 years the sector has accumulated systemic problems concerning technical equipment and they are still unsolved. This, first of all, has to do with poor state of locomotive and cargo rail cars parks. Thus, annual additional expenditures to operate worn-out machinery amount to RUR 5 bln. To solve this problem we need to work out and produce modern high-technology train units and locomotives. In particular, this sounds more realistic considering the fact that OAO RZD’s general scheme of development envisages purchase of modern machinery that corresponds to world standards. That is why the basis of the transport engineering development strategy should be formed in the light of the ability of the domestic railway machinery manufacturers to satisfy the national market in the next 25-30 years under conditions of tough competition with foreign market players. Also, we are to consider the fact that, on average, developing complicated railway machinery takes about 10 years and the term of this machinery maintenance – about 40 years.
– In your opinion, does domestic engineering production correspond to world technical and technological standards?
– Nowadays, the transport engineering sector faces certain difficulties that have to do with obsolete equipment, lack of professional staff as well as poor financing and support from the state, tough competition from foreign manufacturers and technological lag. To solve these problems we need to consolidate our efforts and develop the mechanisms of state-and-private partnership for key projects and unfolding programmes.
Not long before due to certain transport engineering sector stagnation, OAO RZD used to perform as a developer of new rolling stock, having invested hundreds of millions of rubles into these projects. The company’s efforts were useful and brought new models to the market to substitute worn-out rolling stock. Currently, new types of fuel are being developed; new locomotives using natural gas are being worked on. Hydrogen technologies are being looked at as well.
Now OAO RZD performs as a strategic customer of the modern rolling stock and is ready to give technical demands for the production of locomotives, motor wagon rolling stock, cargo and passenger rail cars of a new generation. The Board of the company has approved a strategy of innovative development that defines the directions of railway complex functioning for the next 10 years. That is why the company is capable of outlining long-term technological guidelines for the machine engineering complex. At the same time it is crucially important to combine innovative domestic improvements with foreign technologies since this very approach will prevent us from losing time and money on efforts to reach the level of the world producers and give Russian engineers a chance to concentrate on new generation rolling stock construction based on what they have achieved so far. To substitute worn-out railway rolling stock domestic manufacturers produce the whole range of the newest models of machinery. However, compared with the foreign units they do not stand up in terms of reliability. The basic reason for such failure is obsolete technological equipment in Russian machine engineering plants.
Thus, due to low rates of rolling stock renewal, OAO RZD has to operate about 7 thousand worn-out locomotives, 2 thousand passenger rail cars, 3 thousand electric train cars and over 110 thousand cargo rail cars. The average age of the locomotive the company operates is 20 years, passenger cars – 17 years, and cargo rail cars – 21 years. To cope with transportation volumes planned for 2010 the corporation will have to purchase about 20 thousand new rail cars annually, including gondola cars – about 15 - 18 thousand units per year.

Success lies in cooperation of consumer and manufacturer

– What are OAO RZD’s requests to their suppliers?
– In respect of rolling stock our goal is to reduce maintenance costs which can only be achieved by purchase of new generation rolling stock. Reaching this will be possible if the Russian machine engineering complex amends its general development strategy and solves two major tasks:
• to improve technical-economic level of the acting cars and locomotives;
• to keep the prices for the new modern production on a level acceptable to the Russian railways and national economics.
By placing orders for railway machinery for the long-term perspective with domestic enterprises, OAO RZD aspires to find improvement in quality and the approach to collaboration between customer and manufacturer. By now ОАО RZD has been using all their possible opportunities and potential resources to grow and develop. That is why the further development of the national machine engineering complex will be a success only with state support and coordination.
It should be mentioned that sometimes OAO RZD has to buy production which does not correspond to set requirements. For example, it often happens that supplied rail cars have high tare weight and, thus, low carrying capacity. Consequently, they are not competitive compared with foreign units. This year we have started trials of rail cars with aluminium extrusive profiles. This new construction will allow us to operate a car body volume of 100 cubic meters with a tare mass of 18 tons and to increase car carrying capacity by 6 tons.
Requirements set for enhancing a car run to 500 thousand kilometers haven’t been realized yet. New samples of bodies are only trying to reach this level. Considering the growing demands in rolling stock and analyzing the present day situation our key tasks are as follows:
• production capacities enhancement and rolling stock manufacturing growth;
• activation of trial-construction work and liquidation of the technological lag between domestic and foreign manufacturers.

New Technologies Wanted

– Are the modern technologies for new types of rolling stock being introduced in domestic enterprises?
– The major problem of successful development of the sector is the technological lag our enterprises suffer. The efficient ways to eliminate this lag between domestic manufacturers and leading world engineering companies are the practice of giving customs privileges to foreign technologies bringing localization in to the country; creation of an experimental special economic zone developed for solving the current problems and aimed at developing new types of rolling stock on the basis of localized foreign technologies; allocation of subsidies within the Federal target programme “Modernization of the RF transport system” to implement crucially important projects.
At present there are certain areas which need innovations badly. For example, manufacturing rolling stock and elements for high-speed transportation hasn’t been launched. To develop this production we need modern technologies and scientific projects. In particular, this was the reason behind the joint venture launch implemented by Transmashholding and Bombardier Transportation. This enterprise plans to produce power converters for the new generation of electric locomotives on the basis of the latest technologies developed by Bombardier Transportation.
Another example of the need to apply world technologies can be given. Now the corporation has been testing a cassette type of railroad ball bearing with a stated overhaul period of 1 million kilometers. However, the initial results received within the trial haven’t proved the capability of the bearing to be functional with no repair for the 8 year- period stated by the manufacturer. To solve this problem OAO RZD is transferring to new principles of dealing with suppliers that would be harmonized according to the ISO and IRIS international standards. All these standards guarantee complex parameters of safety, maintenance reliability and cost of life-cycle of the rolling stock units that would form the basis of technical and commercial policy carried out by the corporation towards machine engineering enterprises. New technical requirements are given in the documents developed for new rolling stock order and these requirements are much tougher than they used to be. Thus, they envisage heavier responsibility for manufacturers for the production supplied to the corporation.
– What projects are implemented regarding high-speed transportation now?
– The most important result achieved now is the launch of the first stage of the high-speed transportation development programme carried out by OAO RZD. At present traveling time from Moscow to Saint-Petersburg is 3 hours 55 minutes. In future high-speed transportation will be organized on the route Saint-Petersburg – Moscow – Nizhny Novgorod. The train unit will consist of 10 coaches with an average trainload of 605 passengers.
Now we are launching a joint-venture with the Finnish railways to organize high-speed transportation on the route Saint-Petersburg – Helsinki. Currently the activities to harmonize the EU and Russian standards in respect of rolling stock certification are implemented. First of all, this has to do with the parameters of car body strength and electromagnetic compatibility. This direction of the RF transport system development needs fundamentally new high-technological production. Transport engineering development will assist in a quality improvement of the Russian economic structure and stimulate development of an innovative sector of the state. Growth in locomotive and railroad car production will provide enterprises with the full load of industrial capacities and provide an opportunity to set up great number of new working places.
– What steps is the OAO RZD developing to eliminate the problems transport sector faces now?
– To solve all the above-mentioned problems we need to consolidate our efforts. In other words, in order to strengthen partnership with machine engineering enterprises, to follow the integration policy and coordinate production, OAO RZD initiates the launch of the Russian Union of Railway Machine Engineering Manufacturers. Among the companies ready to join the Union are: ZАО Transmashholding, Evrazholding, Railroad Car Machine Engineering Company of Mordovia, Nizhnetagilsky and Novokuznetsky metallurgical complexes, Vyksunsky metallurgical works, Uralvagonzavod JSC etc. The Union is to support the interests of the Russian Federation for high-technology project promotion in international markets. In general the situation in the Russian transport engineering market is improving. Production growth rates in the transport engineering sector exceed growth rates demonstrated by the industry in general. Domestic demand on high-technology production showed by railways is creating a basis to turn national railway engineering into a “locomotive” of economic growth. I am sure, railway engineering development is to become a key priority of state innovative and industrial policy in the near future. That is why the state has to strengthen intersectoral support – industrial complexes launching in the transport sector. In this respect it should be said that balancing the participants’ interests with joining mutually profitable efforts will allow creation of perspective projects of a new generation and implement intersectoral projects of technical re-equipment of railway transport.
– What are the innovations the transport business community has to expect regarding amendment of the normative and legislative base?
– Consider the fact that administrative reform is currently unfolding and the old normative base does not correspond to modern market conditions. Moreover, the current normative base does not correspond to the law “On technical regulation” which has set the new structure of obligatory demands regarding production and services. As a result, now about 8.5 thousand documents regulating railway transport functioning are to be amended and turned into special technical regulations, national standards and norms for enterprises. The normative base reform is being carried out in the following directions:
• formation of the documents dictating obligatory terms for every single participant in the railway market – special technical regulations (federal laws and Governmental regulations);
• development of supporting documents (Governmental regulations);
• development of national standards.
Moreover, having no state support we cannot be efficient in promoting Russian railway engineering production in international markets. Besides traditional CIS markets our engineering complex can enter the market of Central Asia, India and Africa. To solve this task we need state support for highly efficient rolling stock development. This will allow Russia to create one of the world centers of locomotive and car engineering that in its turn will need significant concentration of industrial capacities, experience and capital.
Moreover, we should not forget that the infrastructure of innovative activities will demand highly professional staff capable of reaching a break-through in railway engineering.

biography

Born in 1955, Gapanovich graduated from the Novosibirsk Institute of Railway Engineers in 1992, and in 1998 studied at the Academy of Economics under the Government of the Russian Federation. Gapanovich specialises in rail transport processes. He has held various posts at Russian Railways, including: 1989-1998: Head, Locomotive Depot, Novokuznetsk-Kemerovo Railways; Chief Engineer, Novokuznets Section of Kemerovo Railways; Deputy Engineer, Kuzbass Section, West Siberian Railways. 1998-1999: Deputy Head, Locomotive and Wagon Management, West Siberian Railways, Deputy Head, Railways. 2000-2003: Chief Engineer, October Railways. 2003: Vice-President, Russian Railways. Gapanovich is also chairman of a number of important committees and working groups at Russian Railways. 

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=> 30 [LIST_TYPE] => L [MULTIPLE] => N [XML_ID] => [FILE_TYPE] => pdf [MULTIPLE_CNT] => 5 [LINK_IBLOCK_ID] => 0 [WITH_DESCRIPTION] => N [SEARCHABLE] => N [FILTRABLE] => N [IS_REQUIRED] => N [VERSION] => 2 [USER_TYPE] => [USER_TYPE_SETTINGS] => [HINT] => [~NAME] => Прикрепленный PDF [~DEFAULT_VALUE] => [VALUE_ENUM] => [VALUE_XML_ID] => [VALUE_SORT] => [VALUE] => [PROPERTY_VALUE_ID] => 108726:324 [DESCRIPTION] => [~DESCRIPTION] => [~VALUE] => ) ) [DISPLAY_PROPERTIES] => Array ( ) [IPROPERTY_VALUES] => Array ( [SECTION_META_TITLE] => ОАО RZD outlines the long-term targets [SECTION_META_KEYWORDS] => оао rzd outlines the long-term targets [SECTION_META_DESCRIPTION] => <img src="/ufiles/image/rus/partner/2007/4/002.png" border="1" alt="Mr.Gapanovich" title="Mr.Gapanovich" hspace="5" width="110" height="140" align="left" />Railway engineering development passes ahead of the general rates of industrial development in Russia.  OAO RZD Vice-President Valentin Gapanovich comments on the basic prospects of the sector, production acceptance criteria and problems the national engineering sector is to face in the near future.  [ELEMENT_META_TITLE] => ОАО RZD outlines the long-term targets [ELEMENT_META_KEYWORDS] => оао rzd outlines the long-term targets [ELEMENT_META_DESCRIPTION] => <img src="/ufiles/image/rus/partner/2007/4/002.png" border="1" alt="Mr.Gapanovich" title="Mr.Gapanovich" hspace="5" width="110" height="140" align="left" />Railway engineering development passes ahead of the general rates of industrial development in Russia.  OAO RZD Vice-President Valentin Gapanovich comments on the basic prospects of the sector, production acceptance criteria and problems the national engineering sector is to face in the near future.  [SECTION_PICTURE_FILE_ALT] => ОАО RZD outlines the long-term targets [SECTION_PICTURE_FILE_TITLE] => ОАО RZD outlines the long-term targets [SECTION_DETAIL_PICTURE_FILE_ALT] => ОАО RZD outlines the long-term targets [SECTION_DETAIL_PICTURE_FILE_TITLE] => ОАО RZD outlines the long-term targets [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => ОАО RZD outlines the long-term targets [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => ОАО RZD outlines the long-term targets [ELEMENT_DETAIL_PICTURE_FILE_ALT] => ОАО RZD outlines the long-term targets [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => ОАО RZD outlines the long-term targets ) )



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