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Expansion of the high-speed traffic in Russia is the reason why RZD JSC management is increasing the amount of appropriate rolling stock. As a result not only Sapsan trains, but also the new Talgo technology and trains from the Sinara and Siemens Joint Venture will be launched on the network in the near future.
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[DETAIL_TEXT] => Sokol is waiting for an addition to its family
The Velaro RUS was the first of the high-speed trains on RZD’s network. RZD and Siemens signed an agreement for the supply of eight Sapsan trains worth 276 million euros in May 2006. The train is able to reach up to 250 km / h, but the design provides the opportunity to do 330 km/ h at maximum speed. Each train is 250 m long. It consists of 10 cars and provides places for more than 600 passengers. Sapsan cars have two types of layout – tourist class and business class. There are modern air-conditioning systems and ergonomic seats, as well as special seats for passengers with disabilities. During the trip, passengers can eat in a bistro. The first train was launched in December 2009 on the Moscow-St Petersburg route. Travel time was 3 hours and 45 minutes. In late July 2010 a Sapsan train was launched on the Moscow-Nizhny Novgorod route. So, at the moment, trains run between St Petersburg, Moscow and Nizhny Novgorod. Time travel in 2012 will be 3 hours and 30 minutes.
It should be mentioned that since the beginning of spring last year the trains were about 90% full. “Often we face with a problem, when we can’t offer enough places in accordance with the demand. This happens on the weekends, holidays and pre-holiday periods,” recognizes RZD. Arranged for the end of this year is an agreement on the purchase of eight Sapsan trains between RZD JSC and Siemens Company, which is evidence of this demand. The agreement is expected to be signed in September 2011, as Valentine Gapanovich, Senior Vice President of RZD said recently. Speaking about contract terms, he noticed that “everything is as before”, the cost of trains will remain at 2005 levels and the two companies will soon discuss the financing scheme.
The First Lastochka
Besides the increase in the number of Sapsans, RZD has also agreed with Siemens to buy quite a few high-speed Desiro trains. In Russia they are called Lastochka. Let’s recall that according to the previous contract terms the Germans should produce 54 trains, 38 of which had to be made in Germany, and the remaining 16 trains in Russia. In late April of the current year Siemens had already started production of Lastochka trains for RZD in Germany. It was expected to use the trains for passenger transportation during the Sochi Olimpic Games in 2014. And after the Games, at first, the trains will run in Russia’s South and then in other regions of the country. The cost of producing 54 trains was 585.9 million euros, so, one train would cost RZD 10.85 million euros.
But in June of 2011, after Russia became the host of the 2018 World Cup, RZD decided to increase the order of Siemens high-speed trains. According to the terms of the new contract all 240 trains will be produced at Ural locomotives, which is a Siemens and Sinara Joint Venture, situated in Sverdlovsk Region. Siemens will supply 1,200 electric trains to the Russian factory. The production of trains is planned to be started in 2012. Even with the discount of 20%, German trains are more than twice as expensive as Russian ones, RZD will have to pay 2.1 billion euros. Earlier, Vladimir Yakunin estimated the investment volume in Lastochka production JV at 200 million euros. Together with this the level of product localization in the first stage should be 30%, and by 2017 it should reach 80%, so that they will be almost entirely Russian trains. The partners also agreed to set up a specialized engineering center for the development and modernization of rolling stock, which will allow RZD and other carriers to order trains with changes in the basic design and configuration. Other terms of the contract will be discussed during further negotiations.
By the end of 2012 RZD plans to launch Lastochka from Moscow to Yaroslavl. Instead of the present four hours’ travel time it would take two and a half hours. The management decided to accelerate the traffic of usual trains to Yaroslavl before this, in autumn 2011: the trains will do the distance in two hours and 55 minutes.
Besides this, RZD’s management is planning to use Lastochka the Moscow – Kursk, Tula, Yaroslavl and Kaluga routes. High-speed traffic on the Moscow – Tula – Kursk route is expected to be launched from 2014 to 2015. Travel time to Kursk will then be 4 and a half hours and to Tula – an hour and a half. At the moment the minimum travel time from Moscow to Tula is two hours and 40 minutes, and from Moscow to Kursk it is seven hours and 40 minutes. Testing of this train is going to be started in March 2012.
Desiro trains are able to go at up to 160 km / h, so, they are 40 km / h faster than domestic ones. Usually they are used as local trains. Desiro runs in tens of European countries, such as Bulgaria, Switzerland, Slovenia, Greece, Hungary, Austria and the UK. Lastochka’s auto stopping system and traction characteristics are designed to take into account safe operation in mountainous areas. In addition, the trains are able to adapt to extreme temperature conditions: from -50 C to +50 C. The train, designed on a Desiro standard platform has a streamlined form and its view is similar to that of the Sapsan high-speed train. Its cars are wider, and there are many-coloured comfortable seats inside.
Abroad in the company of seniors
Along with these projects RZD is planning to develop international routes, in particular, Moscow-Kiev and Moscow-Berlin. Representatives of the company and Spanish Patentes Talgo signed a contract on the development and supply of seven trains with 20 cars in each
in July 2011 to provide transportation along these routes. The sum mentioned in the contract is unknown, but according to the words of Mr Gapanovich, the cost of one passenger Talgo train, which RZD JSC is going to buy, varies from 14 to 20 million euros. He also said that RZD and the Spanish Company are planning establish a joint venture to serve Spanish trains on the territory of Russia.
It is expected that the usage of these trains will reduce travel time on Moscow-Kiev route by six hours (from 13 to 7 hours), and the Moscow-Berlin route’s travel time by nine hours (from 27 to 18 hours). Cutting travel time will be the result of technical features of the Talgo trains and procedures for border and customs control will be made during the trip. Talgo trains are equipped with a mechanism to automatically adapt to track width (in Spain it is 1668 mm in Europe 1435 mm, and in Russia 1520 mm) and with a car tilting system, which saves 20-30% of the time due to higher speeds around small-radius curves. In turn, the track-width system lets Talgo trains go from one track to other without stopping at a speed of 15 km/h.
Mr Yakunin, President of RZD JSC, said that in late April the system was already tested in Russia and it was very good. Its installation is planned in 2011 in Belarussian Brest, on the border with Poland. According to the data of Russian government representatives, Spanish trains could be launched on the Rostov-Sochi route in the near future, as well as between Sochi and Moscow. Besides the mentioned routes, Spanish representatives have also taken part in a tender on joint implementation of a project to build a Moscow-Berlin line in the future with a separate line to Prague, as well as one that will connect Tallinn, Riga and Vilnius with Kaliningrad and Poland.
However, these are only plans and, according to Mr Yakunin, there is a need to make an agreement with the rest of the countries through which the route will go before discussion of the viability of the project. But his opinion on this question is positive.
It should be noted that Talgo produces passenger diesel and electric trains capable of up to 200 km/h. Train with Talgo systems are used on high-speed lines and connect Madrid and Barcelona with different cities in Spain and abroad.
And What About Domestic Developments?
There are no alternatives to German Desiro train in Russia, as well to high-speed foreign trains such as the Sapsan, Allegro or Talgo. But in several years a competitor to the Desiro train could appear on Russia’s network. In autumn last year, Transmashholding and its shareholder, Alstom French Company started to design ED10 innovative electric train, which will be able to have the same speed as German trains – 160 km/h. This train will consist of four to 12 cars. It will have a new interior and exterior design and new technologies will be used in its construction.
This train will also be equipped with seats for wheelchair users. With the help of this innovation Transmashholding hopes to consolidate its leadership in the Russian market of traction rolling stock. But the ED10 prototype is planned to appear only in 2012. It isn’t known yet when it will be used. And while Transmashholding is only starting to design the innovative train, RZD JSC and Siemens are signing billions of dollars’ worth of contracts and localize the production of German trains in Russia.
By Maria Shevchenko
[~DETAIL_TEXT] => Sokol is waiting for an addition to its family
The Velaro RUS was the first of the high-speed trains on RZD’s network. RZD and Siemens signed an agreement for the supply of eight Sapsan trains worth 276 million euros in May 2006. The train is able to reach up to 250 km / h, but the design provides the opportunity to do 330 km/ h at maximum speed. Each train is 250 m long. It consists of 10 cars and provides places for more than 600 passengers. Sapsan cars have two types of layout – tourist class and business class. There are modern air-conditioning systems and ergonomic seats, as well as special seats for passengers with disabilities. During the trip, passengers can eat in a bistro. The first train was launched in December 2009 on the Moscow-St Petersburg route. Travel time was 3 hours and 45 minutes. In late July 2010 a Sapsan train was launched on the Moscow-Nizhny Novgorod route. So, at the moment, trains run between St Petersburg, Moscow and Nizhny Novgorod. Time travel in 2012 will be 3 hours and 30 minutes.
It should be mentioned that since the beginning of spring last year the trains were about 90% full. “Often we face with a problem, when we can’t offer enough places in accordance with the demand. This happens on the weekends, holidays and pre-holiday periods,” recognizes RZD. Arranged for the end of this year is an agreement on the purchase of eight Sapsan trains between RZD JSC and Siemens Company, which is evidence of this demand. The agreement is expected to be signed in September 2011, as Valentine Gapanovich, Senior Vice President of RZD said recently. Speaking about contract terms, he noticed that “everything is as before”, the cost of trains will remain at 2005 levels and the two companies will soon discuss the financing scheme.
The First Lastochka
Besides the increase in the number of Sapsans, RZD has also agreed with Siemens to buy quite a few high-speed Desiro trains. In Russia they are called Lastochka. Let’s recall that according to the previous contract terms the Germans should produce 54 trains, 38 of which had to be made in Germany, and the remaining 16 trains in Russia. In late April of the current year Siemens had already started production of Lastochka trains for RZD in Germany. It was expected to use the trains for passenger transportation during the Sochi Olimpic Games in 2014. And after the Games, at first, the trains will run in Russia’s South and then in other regions of the country. The cost of producing 54 trains was 585.9 million euros, so, one train would cost RZD 10.85 million euros.
But in June of 2011, after Russia became the host of the 2018 World Cup, RZD decided to increase the order of Siemens high-speed trains. According to the terms of the new contract all 240 trains will be produced at Ural locomotives, which is a Siemens and Sinara Joint Venture, situated in Sverdlovsk Region. Siemens will supply 1,200 electric trains to the Russian factory. The production of trains is planned to be started in 2012. Even with the discount of 20%, German trains are more than twice as expensive as Russian ones, RZD will have to pay 2.1 billion euros. Earlier, Vladimir Yakunin estimated the investment volume in Lastochka production JV at 200 million euros. Together with this the level of product localization in the first stage should be 30%, and by 2017 it should reach 80%, so that they will be almost entirely Russian trains. The partners also agreed to set up a specialized engineering center for the development and modernization of rolling stock, which will allow RZD and other carriers to order trains with changes in the basic design and configuration. Other terms of the contract will be discussed during further negotiations.
By the end of 2012 RZD plans to launch Lastochka from Moscow to Yaroslavl. Instead of the present four hours’ travel time it would take two and a half hours. The management decided to accelerate the traffic of usual trains to Yaroslavl before this, in autumn 2011: the trains will do the distance in two hours and 55 minutes.
Besides this, RZD’s management is planning to use Lastochka the Moscow – Kursk, Tula, Yaroslavl and Kaluga routes. High-speed traffic on the Moscow – Tula – Kursk route is expected to be launched from 2014 to 2015. Travel time to Kursk will then be 4 and a half hours and to Tula – an hour and a half. At the moment the minimum travel time from Moscow to Tula is two hours and 40 minutes, and from Moscow to Kursk it is seven hours and 40 minutes. Testing of this train is going to be started in March 2012.
Desiro trains are able to go at up to 160 km / h, so, they are 40 km / h faster than domestic ones. Usually they are used as local trains. Desiro runs in tens of European countries, such as Bulgaria, Switzerland, Slovenia, Greece, Hungary, Austria and the UK. Lastochka’s auto stopping system and traction characteristics are designed to take into account safe operation in mountainous areas. In addition, the trains are able to adapt to extreme temperature conditions: from -50 C to +50 C. The train, designed on a Desiro standard platform has a streamlined form and its view is similar to that of the Sapsan high-speed train. Its cars are wider, and there are many-coloured comfortable seats inside.
Abroad in the company of seniors
Along with these projects RZD is planning to develop international routes, in particular, Moscow-Kiev and Moscow-Berlin. Representatives of the company and Spanish Patentes Talgo signed a contract on the development and supply of seven trains with 20 cars in each
in July 2011 to provide transportation along these routes. The sum mentioned in the contract is unknown, but according to the words of Mr Gapanovich, the cost of one passenger Talgo train, which RZD JSC is going to buy, varies from 14 to 20 million euros. He also said that RZD and the Spanish Company are planning establish a joint venture to serve Spanish trains on the territory of Russia.
It is expected that the usage of these trains will reduce travel time on Moscow-Kiev route by six hours (from 13 to 7 hours), and the Moscow-Berlin route’s travel time by nine hours (from 27 to 18 hours). Cutting travel time will be the result of technical features of the Talgo trains and procedures for border and customs control will be made during the trip. Talgo trains are equipped with a mechanism to automatically adapt to track width (in Spain it is 1668 mm in Europe 1435 mm, and in Russia 1520 mm) and with a car tilting system, which saves 20-30% of the time due to higher speeds around small-radius curves. In turn, the track-width system lets Talgo trains go from one track to other without stopping at a speed of 15 km/h.
Mr Yakunin, President of RZD JSC, said that in late April the system was already tested in Russia and it was very good. Its installation is planned in 2011 in Belarussian Brest, on the border with Poland. According to the data of Russian government representatives, Spanish trains could be launched on the Rostov-Sochi route in the near future, as well as between Sochi and Moscow. Besides the mentioned routes, Spanish representatives have also taken part in a tender on joint implementation of a project to build a Moscow-Berlin line in the future with a separate line to Prague, as well as one that will connect Tallinn, Riga and Vilnius with Kaliningrad and Poland.
However, these are only plans and, according to Mr Yakunin, there is a need to make an agreement with the rest of the countries through which the route will go before discussion of the viability of the project. But his opinion on this question is positive.
It should be noted that Talgo produces passenger diesel and electric trains capable of up to 200 km/h. Train with Talgo systems are used on high-speed lines and connect Madrid and Barcelona with different cities in Spain and abroad.
And What About Domestic Developments?
There are no alternatives to German Desiro train in Russia, as well to high-speed foreign trains such as the Sapsan, Allegro or Talgo. But in several years a competitor to the Desiro train could appear on Russia’s network. In autumn last year, Transmashholding and its shareholder, Alstom French Company started to design ED10 innovative electric train, which will be able to have the same speed as German trains – 160 km/h. This train will consist of four to 12 cars. It will have a new interior and exterior design and new technologies will be used in its construction.
This train will also be equipped with seats for wheelchair users. With the help of this innovation Transmashholding hopes to consolidate its leadership in the Russian market of traction rolling stock. But the ED10 prototype is planned to appear only in 2012. It isn’t known yet when it will be used. And while Transmashholding is only starting to design the innovative train, RZD JSC and Siemens are signing billions of dollars’ worth of contracts and localize the production of German trains in Russia.
By Maria Shevchenko
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[DETAIL_TEXT] => Sokol is waiting for an addition to its family
The Velaro RUS was the first of the high-speed trains on RZD’s network. RZD and Siemens signed an agreement for the supply of eight Sapsan trains worth 276 million euros in May 2006. The train is able to reach up to 250 km / h, but the design provides the opportunity to do 330 km/ h at maximum speed. Each train is 250 m long. It consists of 10 cars and provides places for more than 600 passengers. Sapsan cars have two types of layout – tourist class and business class. There are modern air-conditioning systems and ergonomic seats, as well as special seats for passengers with disabilities. During the trip, passengers can eat in a bistro. The first train was launched in December 2009 on the Moscow-St Petersburg route. Travel time was 3 hours and 45 minutes. In late July 2010 a Sapsan train was launched on the Moscow-Nizhny Novgorod route. So, at the moment, trains run between St Petersburg, Moscow and Nizhny Novgorod. Time travel in 2012 will be 3 hours and 30 minutes.
It should be mentioned that since the beginning of spring last year the trains were about 90% full. “Often we face with a problem, when we can’t offer enough places in accordance with the demand. This happens on the weekends, holidays and pre-holiday periods,” recognizes RZD. Arranged for the end of this year is an agreement on the purchase of eight Sapsan trains between RZD JSC and Siemens Company, which is evidence of this demand. The agreement is expected to be signed in September 2011, as Valentine Gapanovich, Senior Vice President of RZD said recently. Speaking about contract terms, he noticed that “everything is as before”, the cost of trains will remain at 2005 levels and the two companies will soon discuss the financing scheme.
The First Lastochka
Besides the increase in the number of Sapsans, RZD has also agreed with Siemens to buy quite a few high-speed Desiro trains. In Russia they are called Lastochka. Let’s recall that according to the previous contract terms the Germans should produce 54 trains, 38 of which had to be made in Germany, and the remaining 16 trains in Russia. In late April of the current year Siemens had already started production of Lastochka trains for RZD in Germany. It was expected to use the trains for passenger transportation during the Sochi Olimpic Games in 2014. And after the Games, at first, the trains will run in Russia’s South and then in other regions of the country. The cost of producing 54 trains was 585.9 million euros, so, one train would cost RZD 10.85 million euros.
But in June of 2011, after Russia became the host of the 2018 World Cup, RZD decided to increase the order of Siemens high-speed trains. According to the terms of the new contract all 240 trains will be produced at Ural locomotives, which is a Siemens and Sinara Joint Venture, situated in Sverdlovsk Region. Siemens will supply 1,200 electric trains to the Russian factory. The production of trains is planned to be started in 2012. Even with the discount of 20%, German trains are more than twice as expensive as Russian ones, RZD will have to pay 2.1 billion euros. Earlier, Vladimir Yakunin estimated the investment volume in Lastochka production JV at 200 million euros. Together with this the level of product localization in the first stage should be 30%, and by 2017 it should reach 80%, so that they will be almost entirely Russian trains. The partners also agreed to set up a specialized engineering center for the development and modernization of rolling stock, which will allow RZD and other carriers to order trains with changes in the basic design and configuration. Other terms of the contract will be discussed during further negotiations.
By the end of 2012 RZD plans to launch Lastochka from Moscow to Yaroslavl. Instead of the present four hours’ travel time it would take two and a half hours. The management decided to accelerate the traffic of usual trains to Yaroslavl before this, in autumn 2011: the trains will do the distance in two hours and 55 minutes.
Besides this, RZD’s management is planning to use Lastochka the Moscow – Kursk, Tula, Yaroslavl and Kaluga routes. High-speed traffic on the Moscow – Tula – Kursk route is expected to be launched from 2014 to 2015. Travel time to Kursk will then be 4 and a half hours and to Tula – an hour and a half. At the moment the minimum travel time from Moscow to Tula is two hours and 40 minutes, and from Moscow to Kursk it is seven hours and 40 minutes. Testing of this train is going to be started in March 2012.
Desiro trains are able to go at up to 160 km / h, so, they are 40 km / h faster than domestic ones. Usually they are used as local trains. Desiro runs in tens of European countries, such as Bulgaria, Switzerland, Slovenia, Greece, Hungary, Austria and the UK. Lastochka’s auto stopping system and traction characteristics are designed to take into account safe operation in mountainous areas. In addition, the trains are able to adapt to extreme temperature conditions: from -50 C to +50 C. The train, designed on a Desiro standard platform has a streamlined form and its view is similar to that of the Sapsan high-speed train. Its cars are wider, and there are many-coloured comfortable seats inside.
Abroad in the company of seniors
Along with these projects RZD is planning to develop international routes, in particular, Moscow-Kiev and Moscow-Berlin. Representatives of the company and Spanish Patentes Talgo signed a contract on the development and supply of seven trains with 20 cars in each
in July 2011 to provide transportation along these routes. The sum mentioned in the contract is unknown, but according to the words of Mr Gapanovich, the cost of one passenger Talgo train, which RZD JSC is going to buy, varies from 14 to 20 million euros. He also said that RZD and the Spanish Company are planning establish a joint venture to serve Spanish trains on the territory of Russia.
It is expected that the usage of these trains will reduce travel time on Moscow-Kiev route by six hours (from 13 to 7 hours), and the Moscow-Berlin route’s travel time by nine hours (from 27 to 18 hours). Cutting travel time will be the result of technical features of the Talgo trains and procedures for border and customs control will be made during the trip. Talgo trains are equipped with a mechanism to automatically adapt to track width (in Spain it is 1668 mm in Europe 1435 mm, and in Russia 1520 mm) and with a car tilting system, which saves 20-30% of the time due to higher speeds around small-radius curves. In turn, the track-width system lets Talgo trains go from one track to other without stopping at a speed of 15 km/h.
Mr Yakunin, President of RZD JSC, said that in late April the system was already tested in Russia and it was very good. Its installation is planned in 2011 in Belarussian Brest, on the border with Poland. According to the data of Russian government representatives, Spanish trains could be launched on the Rostov-Sochi route in the near future, as well as between Sochi and Moscow. Besides the mentioned routes, Spanish representatives have also taken part in a tender on joint implementation of a project to build a Moscow-Berlin line in the future with a separate line to Prague, as well as one that will connect Tallinn, Riga and Vilnius with Kaliningrad and Poland.
However, these are only plans and, according to Mr Yakunin, there is a need to make an agreement with the rest of the countries through which the route will go before discussion of the viability of the project. But his opinion on this question is positive.
It should be noted that Talgo produces passenger diesel and electric trains capable of up to 200 km/h. Train with Talgo systems are used on high-speed lines and connect Madrid and Barcelona with different cities in Spain and abroad.
And What About Domestic Developments?
There are no alternatives to German Desiro train in Russia, as well to high-speed foreign trains such as the Sapsan, Allegro or Talgo. But in several years a competitor to the Desiro train could appear on Russia’s network. In autumn last year, Transmashholding and its shareholder, Alstom French Company started to design ED10 innovative electric train, which will be able to have the same speed as German trains – 160 km/h. This train will consist of four to 12 cars. It will have a new interior and exterior design and new technologies will be used in its construction.
This train will also be equipped with seats for wheelchair users. With the help of this innovation Transmashholding hopes to consolidate its leadership in the Russian market of traction rolling stock. But the ED10 prototype is planned to appear only in 2012. It isn’t known yet when it will be used. And while Transmashholding is only starting to design the innovative train, RZD JSC and Siemens are signing billions of dollars’ worth of contracts and localize the production of German trains in Russia.
By Maria Shevchenko
[~DETAIL_TEXT] => Sokol is waiting for an addition to its family
The Velaro RUS was the first of the high-speed trains on RZD’s network. RZD and Siemens signed an agreement for the supply of eight Sapsan trains worth 276 million euros in May 2006. The train is able to reach up to 250 km / h, but the design provides the opportunity to do 330 km/ h at maximum speed. Each train is 250 m long. It consists of 10 cars and provides places for more than 600 passengers. Sapsan cars have two types of layout – tourist class and business class. There are modern air-conditioning systems and ergonomic seats, as well as special seats for passengers with disabilities. During the trip, passengers can eat in a bistro. The first train was launched in December 2009 on the Moscow-St Petersburg route. Travel time was 3 hours and 45 minutes. In late July 2010 a Sapsan train was launched on the Moscow-Nizhny Novgorod route. So, at the moment, trains run between St Petersburg, Moscow and Nizhny Novgorod. Time travel in 2012 will be 3 hours and 30 minutes.
It should be mentioned that since the beginning of spring last year the trains were about 90% full. “Often we face with a problem, when we can’t offer enough places in accordance with the demand. This happens on the weekends, holidays and pre-holiday periods,” recognizes RZD. Arranged for the end of this year is an agreement on the purchase of eight Sapsan trains between RZD JSC and Siemens Company, which is evidence of this demand. The agreement is expected to be signed in September 2011, as Valentine Gapanovich, Senior Vice President of RZD said recently. Speaking about contract terms, he noticed that “everything is as before”, the cost of trains will remain at 2005 levels and the two companies will soon discuss the financing scheme.
The First Lastochka
Besides the increase in the number of Sapsans, RZD has also agreed with Siemens to buy quite a few high-speed Desiro trains. In Russia they are called Lastochka. Let’s recall that according to the previous contract terms the Germans should produce 54 trains, 38 of which had to be made in Germany, and the remaining 16 trains in Russia. In late April of the current year Siemens had already started production of Lastochka trains for RZD in Germany. It was expected to use the trains for passenger transportation during the Sochi Olimpic Games in 2014. And after the Games, at first, the trains will run in Russia’s South and then in other regions of the country. The cost of producing 54 trains was 585.9 million euros, so, one train would cost RZD 10.85 million euros.
But in June of 2011, after Russia became the host of the 2018 World Cup, RZD decided to increase the order of Siemens high-speed trains. According to the terms of the new contract all 240 trains will be produced at Ural locomotives, which is a Siemens and Sinara Joint Venture, situated in Sverdlovsk Region. Siemens will supply 1,200 electric trains to the Russian factory. The production of trains is planned to be started in 2012. Even with the discount of 20%, German trains are more than twice as expensive as Russian ones, RZD will have to pay 2.1 billion euros. Earlier, Vladimir Yakunin estimated the investment volume in Lastochka production JV at 200 million euros. Together with this the level of product localization in the first stage should be 30%, and by 2017 it should reach 80%, so that they will be almost entirely Russian trains. The partners also agreed to set up a specialized engineering center for the development and modernization of rolling stock, which will allow RZD and other carriers to order trains with changes in the basic design and configuration. Other terms of the contract will be discussed during further negotiations.
By the end of 2012 RZD plans to launch Lastochka from Moscow to Yaroslavl. Instead of the present four hours’ travel time it would take two and a half hours. The management decided to accelerate the traffic of usual trains to Yaroslavl before this, in autumn 2011: the trains will do the distance in two hours and 55 minutes.
Besides this, RZD’s management is planning to use Lastochka the Moscow – Kursk, Tula, Yaroslavl and Kaluga routes. High-speed traffic on the Moscow – Tula – Kursk route is expected to be launched from 2014 to 2015. Travel time to Kursk will then be 4 and a half hours and to Tula – an hour and a half. At the moment the minimum travel time from Moscow to Tula is two hours and 40 minutes, and from Moscow to Kursk it is seven hours and 40 minutes. Testing of this train is going to be started in March 2012.
Desiro trains are able to go at up to 160 km / h, so, they are 40 km / h faster than domestic ones. Usually they are used as local trains. Desiro runs in tens of European countries, such as Bulgaria, Switzerland, Slovenia, Greece, Hungary, Austria and the UK. Lastochka’s auto stopping system and traction characteristics are designed to take into account safe operation in mountainous areas. In addition, the trains are able to adapt to extreme temperature conditions: from -50 C to +50 C. The train, designed on a Desiro standard platform has a streamlined form and its view is similar to that of the Sapsan high-speed train. Its cars are wider, and there are many-coloured comfortable seats inside.
Abroad in the company of seniors
Along with these projects RZD is planning to develop international routes, in particular, Moscow-Kiev and Moscow-Berlin. Representatives of the company and Spanish Patentes Talgo signed a contract on the development and supply of seven trains with 20 cars in each
in July 2011 to provide transportation along these routes. The sum mentioned in the contract is unknown, but according to the words of Mr Gapanovich, the cost of one passenger Talgo train, which RZD JSC is going to buy, varies from 14 to 20 million euros. He also said that RZD and the Spanish Company are planning establish a joint venture to serve Spanish trains on the territory of Russia.
It is expected that the usage of these trains will reduce travel time on Moscow-Kiev route by six hours (from 13 to 7 hours), and the Moscow-Berlin route’s travel time by nine hours (from 27 to 18 hours). Cutting travel time will be the result of technical features of the Talgo trains and procedures for border and customs control will be made during the trip. Talgo trains are equipped with a mechanism to automatically adapt to track width (in Spain it is 1668 mm in Europe 1435 mm, and in Russia 1520 mm) and with a car tilting system, which saves 20-30% of the time due to higher speeds around small-radius curves. In turn, the track-width system lets Talgo trains go from one track to other without stopping at a speed of 15 km/h.
Mr Yakunin, President of RZD JSC, said that in late April the system was already tested in Russia and it was very good. Its installation is planned in 2011 in Belarussian Brest, on the border with Poland. According to the data of Russian government representatives, Spanish trains could be launched on the Rostov-Sochi route in the near future, as well as between Sochi and Moscow. Besides the mentioned routes, Spanish representatives have also taken part in a tender on joint implementation of a project to build a Moscow-Berlin line in the future with a separate line to Prague, as well as one that will connect Tallinn, Riga and Vilnius with Kaliningrad and Poland.
However, these are only plans and, according to Mr Yakunin, there is a need to make an agreement with the rest of the countries through which the route will go before discussion of the viability of the project. But his opinion on this question is positive.
It should be noted that Talgo produces passenger diesel and electric trains capable of up to 200 km/h. Train with Talgo systems are used on high-speed lines and connect Madrid and Barcelona with different cities in Spain and abroad.
And What About Domestic Developments?
There are no alternatives to German Desiro train in Russia, as well to high-speed foreign trains such as the Sapsan, Allegro or Talgo. But in several years a competitor to the Desiro train could appear on Russia’s network. In autumn last year, Transmashholding and its shareholder, Alstom French Company started to design ED10 innovative electric train, which will be able to have the same speed as German trains – 160 km/h. This train will consist of four to 12 cars. It will have a new interior and exterior design and new technologies will be used in its construction.
This train will also be equipped with seats for wheelchair users. With the help of this innovation Transmashholding hopes to consolidate its leadership in the Russian market of traction rolling stock. But the ED10 prototype is planned to appear only in 2012. It isn’t known yet when it will be used. And while Transmashholding is only starting to design the innovative train, RZD JSC and Siemens are signing billions of dollars’ worth of contracts and localize the production of German trains in Russia.
By Maria Shevchenko
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The Transport Ministry plans to set up an automated system of management of the transport complex (ASM TC), integrated with all the transportation processes of RF regions by 2015. It will help market participants to optimize logistics costs and get better services by integrating the existing information and network resources and intelligent transport systems of different sectors in industry.Array
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The general scheme of a Russian ASM TC was prepared in 2010. As explained by Alexey Semenov, Director of Development Programs at the Ministry of Transport, the aim of the project is to get the tool to model and predict the development of the industry. With the associated draft decisions and the help of modern technologies it is supposed to simplify the design of transport and logistics documents, reduce the transportation time of cargo and improve transportation service quality.
ASM TC should be integrated with a range of other programs. In particular, this year the government approved the unified state information system of transport security provision developed by the Ministry of Transport (USIS TSP), which in turn involves the integration of a number of information flows - from the information available from various sensors, to video surveillance, as well as electronics, implemented according to “smart” transportation infrastructure projects.
It is planned to integrate a lot of systems. However, the GPS / GLONASS subsystem of satellite navigation will become the main component of the information transport systems (ITS) and ASM TC. The two networks can be joined to each other easily. GPS is a universally recognized standard and GLONASS is Russia’s development. At the moment enough satellites have been launched into orbit for a geostationary satellite network to cover the whole territory of Russia. Alexander Kalko, Head of the Maintenance and Promotion of RIRT’s JSC projects, said since the 1st of July all passenger transporters must use GLONASS. Moreover, this has become the binding condition to get the licence to transport passengers. Since the same date all transporters of large, dangerous and heavy cargoes also must be connected to GLONASS.
It was not hard for the owners of modern rolling stock to comply with the requirement: satellite navigation is included in the tachographs and on-board computers of motor vehicle transport. Railway workers also use GLONASS. But this is quite a problem for aviation, because it has always relied on international standards, for example, foreign equipment is used at the airports. So, some time is needed for adaptation.
However, in the near future GLONASS will become part of Ground-based Augmentation Systems - GBAS, which enables the takeoff and landing of an aircraft. There is a similar situation in the sphere of water transport: Russia’s satellite navigation system is a component of navigation equipment, search and rescue COSPAS-SARSAT system, which has traditionally relied on other standard of satellite communications - Inmarsat.
Since the main strength of ASM TC is in the field of logistics, this determines the first landfall of its introduction. As Mr Semenov thinks that the best pilot project to test the basic components of the system would be the Olympic Transport Logistics Center (LTC). Specifications have been drafted with attention paid to the fact that now there is a dispatch center in the form of the “Transport Directorate of Olympic Games” Autonomous Nonprofit Organization, which provides satellite-based monitoring of freight transport, which is accredited at the Olympic facilities in Sochi. And further, the components of ASM TC, in the view of the Ministry of Transport, should be tested at major transportation hubs, such as Moscow, St Petersburg and Kazan.
It is assumed that the integration of ITS in areas of high freight traffic concentration will increase the traffic capacity of transport systems by 15-20% without significant capital investments into construction and reconstruction of infrastructure.
To what extent is it real? There is still no methodology for calculating the economic benefits of the integration of ITS in Russia. Therefore it is necessary to compare the estimated effect with foreign experience. Andrey Stepanov, Scientific Director of the International Scientific-Educational “Transport Logistics” Center has some interesting information on this subject. He said that the introduction of Oracle specialized transport information systems by a number of transport companies (their main task is the integration of existing products) has helped to reduce transport costs by $800, 000 per year.
DuPont company has managed to reduce transportation costs by $8 million a year by using ITS. This is precisely estimated at savings of 10-15% on total logistics costs. Moreover, it is so on developed markets. In Russia, the effectiveness of such projects should be even higher, which indicates that the Ministry’s of Transport estimates are well founded.
Consolidation of Resources
As Mr Shishkarev, Chairman of the Duma Committee on Transport, considers, we should be patient with these complicated processes, as information and transport systems have not yet received much development in Russia. Accordingly, the most general principles for the formation of a single virtual transport space are not yet developed. This makes businesses invest cautiously in projects that can be integrated with the Russian ASM TC.
Consequently, in the first place, according to Mr Shishkarev, we should adopt a law on Russian ITS, which will outline the general concept of intellectualization of transport. It should be based on the global ideology of ITS development, but with attention paid to the peculiarities of the Russian Federation. Many countries develop their networks with an eye on national practice. The issue is that a set of standards can stimulate domestic suppliers of equipment, and it conversely can inhibit innovation as well as give preference to competitors from other countries. The main objective of the amendments to Russian law is to create a framework within which private investors can easily enter the market with their projects.
In the concept, they are considered as superstructure. In other words, commercial initiatives are provided with access to the main communication channels and databases of ASM TC and local ITS. They can be linked, for example, with combined transportation services, services for optimization of traffic flow models or the provision of new logistic services.
Another problem which should be tackled is excluding duplication of the development of the ITS, which are created for different modes of transport. For example, the same motion sensor positioning is required for all of them. But the Russian motorists, railroad and defence agencies are creating their own systems. In this case, for example, motorists order systems which help identify and classify traffic violations (speeding, stopping in the wrong place, running a red light), as was explained by Igor Matsur, Associate Professor of Electronics Department at Tula State University. These developments are similar to the road network and “Look” AMS. They largely overlap with the developments of railway workers.
Similarly, you can talk about the project in terms of maintaining the health of drivers. As Valery Dementienko, General Director of Neurocom JSC, said, 80-90% of accidents in transportation are associated with human error.
Meanwhile, since the late 1980s the railway network has used the UKBM device, which was dubbed “handle vigilance”. When the relay is tripped there is signal to the driver about the possibility of an automatic train stop. If there is no reaction to the signal and a driver doesn’t press the handle of vigilance, then the train automatically stops. And similar procedure is repeated with each change of reading lights. Now similar principles are being applied as a basis for the development of a new system for truck drivers, but not with only one sensor but a whole system of “vigilance” sensors to bring the risk of incorrect actions due to fatigue or inattention at the wheel to a minimum. To do this, developers are analyzing measurements carried out in the cockpits of railway locomotives.
There are some specific details that may prove useful for motorists as well as rail workers. In particular, analysis of statistic showed that a driver falls asleep while driving once per 100 hours on average. But the testing of drivers using new methods showed that the probability of falling asleep can be considerably higher in practice: once in 30 hours. It makes specialists think about the benefits of sharing experiences. Indeed, conventional methods used on railroad workers do not fix every third case of a driver falling asleep. And, therefore, there is no alarm signal.
Open Architecture
Of course, each mode has its own specifics. But you can do, for example, as Finland does: don’t create any new expensive hardware platforms, said Eerni Seppo, Adviser on Transport at Ministry of Transport of Finland, but confine yourselves to creating local functional units and providing the interaction between them by following the principles of open architecture.
After all, Internet technologies for mobile devices (smartphones) are actively being developed at the moment. It is easy to connect to existing networks using conventional interfaces. This approach can make the creation of ITS 20-30% cheaper.
Experts agree. In particular, Vito Mauro, Chairman of the Advisory Council of SWARCO AG Company, considers that open architecture derives additional economic benefit from the combination of the basic systems (traffic control, transport management) with those for business services (informing of operators and participants of transportation).
However, said Mr Shishkarev, there are still many specific questions. For example, questions on the principles of unification of technical equipment and traffic control systems on various vehicles. Also there are questions on harmonization of existing sectoral and industry standards. Moreover, all innovations should be linked to the interests of consumers of transport services. We should also provide a mechanism for resolving conflicts between participants in the transportation process and their motivation to introduce advanced technologies.
The concept of the law also provides for integration with other information systems of Russia, which allows attraction of funds for transport projects from other programs. In particular, programmers associated with the creation of the information society in Russia, the introduction of electronic systems in government (traffic police, emergency response, etc).
In reality, the project would require a legal mechanism that provides protection against leaking of commercial data, and at the same time guaranteeing the creation of dedicated channels for users of AMS TC on clearly defined parameters. Accordingly, the interests of government and businesses should be combined and that creates the framework for effective public-private partnership.
by Andrey Lazarev
viewpoint
Sergei Shishkarev,
Chairman of the Duma Committee on Transport:
– One of the main obstacles to the development and implementation of ITS is a lack of basic legislation. Therefore, the State Duma Committee on Transport is considering the creation of a regulatory framework for the formation of a common transport information space and promotion of ITS technologies as a priority. A draft concept of the “Intelligent transportation system of Russia” federal law can be considered as the first intermediate result of this work.
Svetlana Vorontsova,
General Director of Research and Design Institute of Regional Development and Transport Infrastructure:
– With ITS’s designing there is a need to deal with the fact that forecasts for traffic in Russia are based on separate transport, economic and demographic research. Moreover, long-term mathematical modeling of traffic flows is not being used due to the fact that it does not fit into the budget of such research. So, later we will get high level of errors. AMS TC should help to overcome this shortcoming.
Fabrizio De Rossi,
Sales Manager in Russia, CIS and the Balkans at Ansaldo STS Company:
– The main objective of ITS is reducing the cost of traffic management. Incidentally, ITS helps solve a number of challenges: not only to optimize the schedules, but also to combat theft and unauthorized access to the wires on the ground. RZD’s JSC systems are fully consistent with those used in Russia radio blocking equipment and CLUB-U security systems on locomotives. Radio blocking equipment blocks a signal with the help of central control departments over satellite. This creates the prerequisites for the internationalization of developments in the transport systems sphere.
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The general scheme of a Russian ASM TC was prepared in 2010. As explained by Alexey Semenov, Director of Development Programs at the Ministry of Transport, the aim of the project is to get the tool to model and predict the development of the industry. With the associated draft decisions and the help of modern technologies it is supposed to simplify the design of transport and logistics documents, reduce the transportation time of cargo and improve transportation service quality.
ASM TC should be integrated with a range of other programs. In particular, this year the government approved the unified state information system of transport security provision developed by the Ministry of Transport (USIS TSP), which in turn involves the integration of a number of information flows - from the information available from various sensors, to video surveillance, as well as electronics, implemented according to “smart” transportation infrastructure projects.
It is planned to integrate a lot of systems. However, the GPS / GLONASS subsystem of satellite navigation will become the main component of the information transport systems (ITS) and ASM TC. The two networks can be joined to each other easily. GPS is a universally recognized standard and GLONASS is Russia’s development. At the moment enough satellites have been launched into orbit for a geostationary satellite network to cover the whole territory of Russia. Alexander Kalko, Head of the Maintenance and Promotion of RIRT’s JSC projects, said since the 1st of July all passenger transporters must use GLONASS. Moreover, this has become the binding condition to get the licence to transport passengers. Since the same date all transporters of large, dangerous and heavy cargoes also must be connected to GLONASS.
It was not hard for the owners of modern rolling stock to comply with the requirement: satellite navigation is included in the tachographs and on-board computers of motor vehicle transport. Railway workers also use GLONASS. But this is quite a problem for aviation, because it has always relied on international standards, for example, foreign equipment is used at the airports. So, some time is needed for adaptation.
However, in the near future GLONASS will become part of Ground-based Augmentation Systems - GBAS, which enables the takeoff and landing of an aircraft. There is a similar situation in the sphere of water transport: Russia’s satellite navigation system is a component of navigation equipment, search and rescue COSPAS-SARSAT system, which has traditionally relied on other standard of satellite communications - Inmarsat.
Since the main strength of ASM TC is in the field of logistics, this determines the first landfall of its introduction. As Mr Semenov thinks that the best pilot project to test the basic components of the system would be the Olympic Transport Logistics Center (LTC). Specifications have been drafted with attention paid to the fact that now there is a dispatch center in the form of the “Transport Directorate of Olympic Games” Autonomous Nonprofit Organization, which provides satellite-based monitoring of freight transport, which is accredited at the Olympic facilities in Sochi. And further, the components of ASM TC, in the view of the Ministry of Transport, should be tested at major transportation hubs, such as Moscow, St Petersburg and Kazan.
It is assumed that the integration of ITS in areas of high freight traffic concentration will increase the traffic capacity of transport systems by 15-20% without significant capital investments into construction and reconstruction of infrastructure.
To what extent is it real? There is still no methodology for calculating the economic benefits of the integration of ITS in Russia. Therefore it is necessary to compare the estimated effect with foreign experience. Andrey Stepanov, Scientific Director of the International Scientific-Educational “Transport Logistics” Center has some interesting information on this subject. He said that the introduction of Oracle specialized transport information systems by a number of transport companies (their main task is the integration of existing products) has helped to reduce transport costs by $800, 000 per year.
DuPont company has managed to reduce transportation costs by $8 million a year by using ITS. This is precisely estimated at savings of 10-15% on total logistics costs. Moreover, it is so on developed markets. In Russia, the effectiveness of such projects should be even higher, which indicates that the Ministry’s of Transport estimates are well founded.
Consolidation of Resources
As Mr Shishkarev, Chairman of the Duma Committee on Transport, considers, we should be patient with these complicated processes, as information and transport systems have not yet received much development in Russia. Accordingly, the most general principles for the formation of a single virtual transport space are not yet developed. This makes businesses invest cautiously in projects that can be integrated with the Russian ASM TC.
Consequently, in the first place, according to Mr Shishkarev, we should adopt a law on Russian ITS, which will outline the general concept of intellectualization of transport. It should be based on the global ideology of ITS development, but with attention paid to the peculiarities of the Russian Federation. Many countries develop their networks with an eye on national practice. The issue is that a set of standards can stimulate domestic suppliers of equipment, and it conversely can inhibit innovation as well as give preference to competitors from other countries. The main objective of the amendments to Russian law is to create a framework within which private investors can easily enter the market with their projects.
In the concept, they are considered as superstructure. In other words, commercial initiatives are provided with access to the main communication channels and databases of ASM TC and local ITS. They can be linked, for example, with combined transportation services, services for optimization of traffic flow models or the provision of new logistic services.
Another problem which should be tackled is excluding duplication of the development of the ITS, which are created for different modes of transport. For example, the same motion sensor positioning is required for all of them. But the Russian motorists, railroad and defence agencies are creating their own systems. In this case, for example, motorists order systems which help identify and classify traffic violations (speeding, stopping in the wrong place, running a red light), as was explained by Igor Matsur, Associate Professor of Electronics Department at Tula State University. These developments are similar to the road network and “Look” AMS. They largely overlap with the developments of railway workers.
Similarly, you can talk about the project in terms of maintaining the health of drivers. As Valery Dementienko, General Director of Neurocom JSC, said, 80-90% of accidents in transportation are associated with human error.
Meanwhile, since the late 1980s the railway network has used the UKBM device, which was dubbed “handle vigilance”. When the relay is tripped there is signal to the driver about the possibility of an automatic train stop. If there is no reaction to the signal and a driver doesn’t press the handle of vigilance, then the train automatically stops. And similar procedure is repeated with each change of reading lights. Now similar principles are being applied as a basis for the development of a new system for truck drivers, but not with only one sensor but a whole system of “vigilance” sensors to bring the risk of incorrect actions due to fatigue or inattention at the wheel to a minimum. To do this, developers are analyzing measurements carried out in the cockpits of railway locomotives.
There are some specific details that may prove useful for motorists as well as rail workers. In particular, analysis of statistic showed that a driver falls asleep while driving once per 100 hours on average. But the testing of drivers using new methods showed that the probability of falling asleep can be considerably higher in practice: once in 30 hours. It makes specialists think about the benefits of sharing experiences. Indeed, conventional methods used on railroad workers do not fix every third case of a driver falling asleep. And, therefore, there is no alarm signal.
Open Architecture
Of course, each mode has its own specifics. But you can do, for example, as Finland does: don’t create any new expensive hardware platforms, said Eerni Seppo, Adviser on Transport at Ministry of Transport of Finland, but confine yourselves to creating local functional units and providing the interaction between them by following the principles of open architecture.
After all, Internet technologies for mobile devices (smartphones) are actively being developed at the moment. It is easy to connect to existing networks using conventional interfaces. This approach can make the creation of ITS 20-30% cheaper.
Experts agree. In particular, Vito Mauro, Chairman of the Advisory Council of SWARCO AG Company, considers that open architecture derives additional economic benefit from the combination of the basic systems (traffic control, transport management) with those for business services (informing of operators and participants of transportation).
However, said Mr Shishkarev, there are still many specific questions. For example, questions on the principles of unification of technical equipment and traffic control systems on various vehicles. Also there are questions on harmonization of existing sectoral and industry standards. Moreover, all innovations should be linked to the interests of consumers of transport services. We should also provide a mechanism for resolving conflicts between participants in the transportation process and their motivation to introduce advanced technologies.
The concept of the law also provides for integration with other information systems of Russia, which allows attraction of funds for transport projects from other programs. In particular, programmers associated with the creation of the information society in Russia, the introduction of electronic systems in government (traffic police, emergency response, etc).
In reality, the project would require a legal mechanism that provides protection against leaking of commercial data, and at the same time guaranteeing the creation of dedicated channels for users of AMS TC on clearly defined parameters. Accordingly, the interests of government and businesses should be combined and that creates the framework for effective public-private partnership.
by Andrey Lazarev
viewpoint
Sergei Shishkarev,
Chairman of the Duma Committee on Transport:
– One of the main obstacles to the development and implementation of ITS is a lack of basic legislation. Therefore, the State Duma Committee on Transport is considering the creation of a regulatory framework for the formation of a common transport information space and promotion of ITS technologies as a priority. A draft concept of the “Intelligent transportation system of Russia” federal law can be considered as the first intermediate result of this work.
Svetlana Vorontsova,
General Director of Research and Design Institute of Regional Development and Transport Infrastructure:
– With ITS’s designing there is a need to deal with the fact that forecasts for traffic in Russia are based on separate transport, economic and demographic research. Moreover, long-term mathematical modeling of traffic flows is not being used due to the fact that it does not fit into the budget of such research. So, later we will get high level of errors. AMS TC should help to overcome this shortcoming.
Fabrizio De Rossi,
Sales Manager in Russia, CIS and the Balkans at Ansaldo STS Company:
– The main objective of ITS is reducing the cost of traffic management. Incidentally, ITS helps solve a number of challenges: not only to optimize the schedules, but also to combat theft and unauthorized access to the wires on the ground. RZD’s JSC systems are fully consistent with those used in Russia radio blocking equipment and CLUB-U security systems on locomotives. Radio blocking equipment blocks a signal with the help of central control departments over satellite. This creates the prerequisites for the internationalization of developments in the transport systems sphere.
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[SECTION_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2011/3/15.jpg" border="1" alt=" " hspace="5" width="300" height="227" align="left" />The Transport Ministry plans to set up an automated system of management of the transport complex (ASM TC), integrated with all the transportation processes of RF regions by 2015. It will help market participants to optimize logistics costs and get better services by integrating the existing information and network resources and intelligent transport systems of different sectors in industry.
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[ELEMENT_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2011/3/15.jpg" border="1" alt=" " hspace="5" width="300" height="227" align="left" />The Transport Ministry plans to set up an automated system of management of the transport complex (ASM TC), integrated with all the transportation processes of RF regions by 2015. It will help market participants to optimize logistics costs and get better services by integrating the existing information and network resources and intelligent transport systems of different sectors in industry.
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The general scheme of a Russian ASM TC was prepared in 2010. As explained by Alexey Semenov, Director of Development Programs at the Ministry of Transport, the aim of the project is to get the tool to model and predict the development of the industry. With the associated draft decisions and the help of modern technologies it is supposed to simplify the design of transport and logistics documents, reduce the transportation time of cargo and improve transportation service quality.
ASM TC should be integrated with a range of other programs. In particular, this year the government approved the unified state information system of transport security provision developed by the Ministry of Transport (USIS TSP), which in turn involves the integration of a number of information flows - from the information available from various sensors, to video surveillance, as well as electronics, implemented according to “smart” transportation infrastructure projects.
It is planned to integrate a lot of systems. However, the GPS / GLONASS subsystem of satellite navigation will become the main component of the information transport systems (ITS) and ASM TC. The two networks can be joined to each other easily. GPS is a universally recognized standard and GLONASS is Russia’s development. At the moment enough satellites have been launched into orbit for a geostationary satellite network to cover the whole territory of Russia. Alexander Kalko, Head of the Maintenance and Promotion of RIRT’s JSC projects, said since the 1st of July all passenger transporters must use GLONASS. Moreover, this has become the binding condition to get the licence to transport passengers. Since the same date all transporters of large, dangerous and heavy cargoes also must be connected to GLONASS.
It was not hard for the owners of modern rolling stock to comply with the requirement: satellite navigation is included in the tachographs and on-board computers of motor vehicle transport. Railway workers also use GLONASS. But this is quite a problem for aviation, because it has always relied on international standards, for example, foreign equipment is used at the airports. So, some time is needed for adaptation.
However, in the near future GLONASS will become part of Ground-based Augmentation Systems - GBAS, which enables the takeoff and landing of an aircraft. There is a similar situation in the sphere of water transport: Russia’s satellite navigation system is a component of navigation equipment, search and rescue COSPAS-SARSAT system, which has traditionally relied on other standard of satellite communications - Inmarsat.
Since the main strength of ASM TC is in the field of logistics, this determines the first landfall of its introduction. As Mr Semenov thinks that the best pilot project to test the basic components of the system would be the Olympic Transport Logistics Center (LTC). Specifications have been drafted with attention paid to the fact that now there is a dispatch center in the form of the “Transport Directorate of Olympic Games” Autonomous Nonprofit Organization, which provides satellite-based monitoring of freight transport, which is accredited at the Olympic facilities in Sochi. And further, the components of ASM TC, in the view of the Ministry of Transport, should be tested at major transportation hubs, such as Moscow, St Petersburg and Kazan.
It is assumed that the integration of ITS in areas of high freight traffic concentration will increase the traffic capacity of transport systems by 15-20% without significant capital investments into construction and reconstruction of infrastructure.
To what extent is it real? There is still no methodology for calculating the economic benefits of the integration of ITS in Russia. Therefore it is necessary to compare the estimated effect with foreign experience. Andrey Stepanov, Scientific Director of the International Scientific-Educational “Transport Logistics” Center has some interesting information on this subject. He said that the introduction of Oracle specialized transport information systems by a number of transport companies (their main task is the integration of existing products) has helped to reduce transport costs by $800, 000 per year.
DuPont company has managed to reduce transportation costs by $8 million a year by using ITS. This is precisely estimated at savings of 10-15% on total logistics costs. Moreover, it is so on developed markets. In Russia, the effectiveness of such projects should be even higher, which indicates that the Ministry’s of Transport estimates are well founded.
Consolidation of Resources
As Mr Shishkarev, Chairman of the Duma Committee on Transport, considers, we should be patient with these complicated processes, as information and transport systems have not yet received much development in Russia. Accordingly, the most general principles for the formation of a single virtual transport space are not yet developed. This makes businesses invest cautiously in projects that can be integrated with the Russian ASM TC.
Consequently, in the first place, according to Mr Shishkarev, we should adopt a law on Russian ITS, which will outline the general concept of intellectualization of transport. It should be based on the global ideology of ITS development, but with attention paid to the peculiarities of the Russian Federation. Many countries develop their networks with an eye on national practice. The issue is that a set of standards can stimulate domestic suppliers of equipment, and it conversely can inhibit innovation as well as give preference to competitors from other countries. The main objective of the amendments to Russian law is to create a framework within which private investors can easily enter the market with their projects.
In the concept, they are considered as superstructure. In other words, commercial initiatives are provided with access to the main communication channels and databases of ASM TC and local ITS. They can be linked, for example, with combined transportation services, services for optimization of traffic flow models or the provision of new logistic services.
Another problem which should be tackled is excluding duplication of the development of the ITS, which are created for different modes of transport. For example, the same motion sensor positioning is required for all of them. But the Russian motorists, railroad and defence agencies are creating their own systems. In this case, for example, motorists order systems which help identify and classify traffic violations (speeding, stopping in the wrong place, running a red light), as was explained by Igor Matsur, Associate Professor of Electronics Department at Tula State University. These developments are similar to the road network and “Look” AMS. They largely overlap with the developments of railway workers.
Similarly, you can talk about the project in terms of maintaining the health of drivers. As Valery Dementienko, General Director of Neurocom JSC, said, 80-90% of accidents in transportation are associated with human error.
Meanwhile, since the late 1980s the railway network has used the UKBM device, which was dubbed “handle vigilance”. When the relay is tripped there is signal to the driver about the possibility of an automatic train stop. If there is no reaction to the signal and a driver doesn’t press the handle of vigilance, then the train automatically stops. And similar procedure is repeated with each change of reading lights. Now similar principles are being applied as a basis for the development of a new system for truck drivers, but not with only one sensor but a whole system of “vigilance” sensors to bring the risk of incorrect actions due to fatigue or inattention at the wheel to a minimum. To do this, developers are analyzing measurements carried out in the cockpits of railway locomotives.
There are some specific details that may prove useful for motorists as well as rail workers. In particular, analysis of statistic showed that a driver falls asleep while driving once per 100 hours on average. But the testing of drivers using new methods showed that the probability of falling asleep can be considerably higher in practice: once in 30 hours. It makes specialists think about the benefits of sharing experiences. Indeed, conventional methods used on railroad workers do not fix every third case of a driver falling asleep. And, therefore, there is no alarm signal.
Open Architecture
Of course, each mode has its own specifics. But you can do, for example, as Finland does: don’t create any new expensive hardware platforms, said Eerni Seppo, Adviser on Transport at Ministry of Transport of Finland, but confine yourselves to creating local functional units and providing the interaction between them by following the principles of open architecture.
After all, Internet technologies for mobile devices (smartphones) are actively being developed at the moment. It is easy to connect to existing networks using conventional interfaces. This approach can make the creation of ITS 20-30% cheaper.
Experts agree. In particular, Vito Mauro, Chairman of the Advisory Council of SWARCO AG Company, considers that open architecture derives additional economic benefit from the combination of the basic systems (traffic control, transport management) with those for business services (informing of operators and participants of transportation).
However, said Mr Shishkarev, there are still many specific questions. For example, questions on the principles of unification of technical equipment and traffic control systems on various vehicles. Also there are questions on harmonization of existing sectoral and industry standards. Moreover, all innovations should be linked to the interests of consumers of transport services. We should also provide a mechanism for resolving conflicts between participants in the transportation process and their motivation to introduce advanced technologies.
The concept of the law also provides for integration with other information systems of Russia, which allows attraction of funds for transport projects from other programs. In particular, programmers associated with the creation of the information society in Russia, the introduction of electronic systems in government (traffic police, emergency response, etc).
In reality, the project would require a legal mechanism that provides protection against leaking of commercial data, and at the same time guaranteeing the creation of dedicated channels for users of AMS TC on clearly defined parameters. Accordingly, the interests of government and businesses should be combined and that creates the framework for effective public-private partnership.
by Andrey Lazarev
viewpoint
Sergei Shishkarev,
Chairman of the Duma Committee on Transport:
– One of the main obstacles to the development and implementation of ITS is a lack of basic legislation. Therefore, the State Duma Committee on Transport is considering the creation of a regulatory framework for the formation of a common transport information space and promotion of ITS technologies as a priority. A draft concept of the “Intelligent transportation system of Russia” federal law can be considered as the first intermediate result of this work.
Svetlana Vorontsova,
General Director of Research and Design Institute of Regional Development and Transport Infrastructure:
– With ITS’s designing there is a need to deal with the fact that forecasts for traffic in Russia are based on separate transport, economic and demographic research. Moreover, long-term mathematical modeling of traffic flows is not being used due to the fact that it does not fit into the budget of such research. So, later we will get high level of errors. AMS TC should help to overcome this shortcoming.
Fabrizio De Rossi,
Sales Manager in Russia, CIS and the Balkans at Ansaldo STS Company:
– The main objective of ITS is reducing the cost of traffic management. Incidentally, ITS helps solve a number of challenges: not only to optimize the schedules, but also to combat theft and unauthorized access to the wires on the ground. RZD’s JSC systems are fully consistent with those used in Russia radio blocking equipment and CLUB-U security systems on locomotives. Radio blocking equipment blocks a signal with the help of central control departments over satellite. This creates the prerequisites for the internationalization of developments in the transport systems sphere.
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The general scheme of a Russian ASM TC was prepared in 2010. As explained by Alexey Semenov, Director of Development Programs at the Ministry of Transport, the aim of the project is to get the tool to model and predict the development of the industry. With the associated draft decisions and the help of modern technologies it is supposed to simplify the design of transport and logistics documents, reduce the transportation time of cargo and improve transportation service quality.
ASM TC should be integrated with a range of other programs. In particular, this year the government approved the unified state information system of transport security provision developed by the Ministry of Transport (USIS TSP), which in turn involves the integration of a number of information flows - from the information available from various sensors, to video surveillance, as well as electronics, implemented according to “smart” transportation infrastructure projects.
It is planned to integrate a lot of systems. However, the GPS / GLONASS subsystem of satellite navigation will become the main component of the information transport systems (ITS) and ASM TC. The two networks can be joined to each other easily. GPS is a universally recognized standard and GLONASS is Russia’s development. At the moment enough satellites have been launched into orbit for a geostationary satellite network to cover the whole territory of Russia. Alexander Kalko, Head of the Maintenance and Promotion of RIRT’s JSC projects, said since the 1st of July all passenger transporters must use GLONASS. Moreover, this has become the binding condition to get the licence to transport passengers. Since the same date all transporters of large, dangerous and heavy cargoes also must be connected to GLONASS.
It was not hard for the owners of modern rolling stock to comply with the requirement: satellite navigation is included in the tachographs and on-board computers of motor vehicle transport. Railway workers also use GLONASS. But this is quite a problem for aviation, because it has always relied on international standards, for example, foreign equipment is used at the airports. So, some time is needed for adaptation.
However, in the near future GLONASS will become part of Ground-based Augmentation Systems - GBAS, which enables the takeoff and landing of an aircraft. There is a similar situation in the sphere of water transport: Russia’s satellite navigation system is a component of navigation equipment, search and rescue COSPAS-SARSAT system, which has traditionally relied on other standard of satellite communications - Inmarsat.
Since the main strength of ASM TC is in the field of logistics, this determines the first landfall of its introduction. As Mr Semenov thinks that the best pilot project to test the basic components of the system would be the Olympic Transport Logistics Center (LTC). Specifications have been drafted with attention paid to the fact that now there is a dispatch center in the form of the “Transport Directorate of Olympic Games” Autonomous Nonprofit Organization, which provides satellite-based monitoring of freight transport, which is accredited at the Olympic facilities in Sochi. And further, the components of ASM TC, in the view of the Ministry of Transport, should be tested at major transportation hubs, such as Moscow, St Petersburg and Kazan.
It is assumed that the integration of ITS in areas of high freight traffic concentration will increase the traffic capacity of transport systems by 15-20% without significant capital investments into construction and reconstruction of infrastructure.
To what extent is it real? There is still no methodology for calculating the economic benefits of the integration of ITS in Russia. Therefore it is necessary to compare the estimated effect with foreign experience. Andrey Stepanov, Scientific Director of the International Scientific-Educational “Transport Logistics” Center has some interesting information on this subject. He said that the introduction of Oracle specialized transport information systems by a number of transport companies (their main task is the integration of existing products) has helped to reduce transport costs by $800, 000 per year.
DuPont company has managed to reduce transportation costs by $8 million a year by using ITS. This is precisely estimated at savings of 10-15% on total logistics costs. Moreover, it is so on developed markets. In Russia, the effectiveness of such projects should be even higher, which indicates that the Ministry’s of Transport estimates are well founded.
Consolidation of Resources
As Mr Shishkarev, Chairman of the Duma Committee on Transport, considers, we should be patient with these complicated processes, as information and transport systems have not yet received much development in Russia. Accordingly, the most general principles for the formation of a single virtual transport space are not yet developed. This makes businesses invest cautiously in projects that can be integrated with the Russian ASM TC.
Consequently, in the first place, according to Mr Shishkarev, we should adopt a law on Russian ITS, which will outline the general concept of intellectualization of transport. It should be based on the global ideology of ITS development, but with attention paid to the peculiarities of the Russian Federation. Many countries develop their networks with an eye on national practice. The issue is that a set of standards can stimulate domestic suppliers of equipment, and it conversely can inhibit innovation as well as give preference to competitors from other countries. The main objective of the amendments to Russian law is to create a framework within which private investors can easily enter the market with their projects.
In the concept, they are considered as superstructure. In other words, commercial initiatives are provided with access to the main communication channels and databases of ASM TC and local ITS. They can be linked, for example, with combined transportation services, services for optimization of traffic flow models or the provision of new logistic services.
Another problem which should be tackled is excluding duplication of the development of the ITS, which are created for different modes of transport. For example, the same motion sensor positioning is required for all of them. But the Russian motorists, railroad and defence agencies are creating their own systems. In this case, for example, motorists order systems which help identify and classify traffic violations (speeding, stopping in the wrong place, running a red light), as was explained by Igor Matsur, Associate Professor of Electronics Department at Tula State University. These developments are similar to the road network and “Look” AMS. They largely overlap with the developments of railway workers.
Similarly, you can talk about the project in terms of maintaining the health of drivers. As Valery Dementienko, General Director of Neurocom JSC, said, 80-90% of accidents in transportation are associated with human error.
Meanwhile, since the late 1980s the railway network has used the UKBM device, which was dubbed “handle vigilance”. When the relay is tripped there is signal to the driver about the possibility of an automatic train stop. If there is no reaction to the signal and a driver doesn’t press the handle of vigilance, then the train automatically stops. And similar procedure is repeated with each change of reading lights. Now similar principles are being applied as a basis for the development of a new system for truck drivers, but not with only one sensor but a whole system of “vigilance” sensors to bring the risk of incorrect actions due to fatigue or inattention at the wheel to a minimum. To do this, developers are analyzing measurements carried out in the cockpits of railway locomotives.
There are some specific details that may prove useful for motorists as well as rail workers. In particular, analysis of statistic showed that a driver falls asleep while driving once per 100 hours on average. But the testing of drivers using new methods showed that the probability of falling asleep can be considerably higher in practice: once in 30 hours. It makes specialists think about the benefits of sharing experiences. Indeed, conventional methods used on railroad workers do not fix every third case of a driver falling asleep. And, therefore, there is no alarm signal.
Open Architecture
Of course, each mode has its own specifics. But you can do, for example, as Finland does: don’t create any new expensive hardware platforms, said Eerni Seppo, Adviser on Transport at Ministry of Transport of Finland, but confine yourselves to creating local functional units and providing the interaction between them by following the principles of open architecture.
After all, Internet technologies for mobile devices (smartphones) are actively being developed at the moment. It is easy to connect to existing networks using conventional interfaces. This approach can make the creation of ITS 20-30% cheaper.
Experts agree. In particular, Vito Mauro, Chairman of the Advisory Council of SWARCO AG Company, considers that open architecture derives additional economic benefit from the combination of the basic systems (traffic control, transport management) with those for business services (informing of operators and participants of transportation).
However, said Mr Shishkarev, there are still many specific questions. For example, questions on the principles of unification of technical equipment and traffic control systems on various vehicles. Also there are questions on harmonization of existing sectoral and industry standards. Moreover, all innovations should be linked to the interests of consumers of transport services. We should also provide a mechanism for resolving conflicts between participants in the transportation process and their motivation to introduce advanced technologies.
The concept of the law also provides for integration with other information systems of Russia, which allows attraction of funds for transport projects from other programs. In particular, programmers associated with the creation of the information society in Russia, the introduction of electronic systems in government (traffic police, emergency response, etc).
In reality, the project would require a legal mechanism that provides protection against leaking of commercial data, and at the same time guaranteeing the creation of dedicated channels for users of AMS TC on clearly defined parameters. Accordingly, the interests of government and businesses should be combined and that creates the framework for effective public-private partnership.
by Andrey Lazarev
viewpoint
Sergei Shishkarev,
Chairman of the Duma Committee on Transport:
– One of the main obstacles to the development and implementation of ITS is a lack of basic legislation. Therefore, the State Duma Committee on Transport is considering the creation of a regulatory framework for the formation of a common transport information space and promotion of ITS technologies as a priority. A draft concept of the “Intelligent transportation system of Russia” federal law can be considered as the first intermediate result of this work.
Svetlana Vorontsova,
General Director of Research and Design Institute of Regional Development and Transport Infrastructure:
– With ITS’s designing there is a need to deal with the fact that forecasts for traffic in Russia are based on separate transport, economic and demographic research. Moreover, long-term mathematical modeling of traffic flows is not being used due to the fact that it does not fit into the budget of such research. So, later we will get high level of errors. AMS TC should help to overcome this shortcoming.
Fabrizio De Rossi,
Sales Manager in Russia, CIS and the Balkans at Ansaldo STS Company:
– The main objective of ITS is reducing the cost of traffic management. Incidentally, ITS helps solve a number of challenges: not only to optimize the schedules, but also to combat theft and unauthorized access to the wires on the ground. RZD’s JSC systems are fully consistent with those used in Russia radio blocking equipment and CLUB-U security systems on locomotives. Radio blocking equipment blocks a signal with the help of central control departments over satellite. This creates the prerequisites for the internationalization of developments in the transport systems sphere.
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[ELEMENT_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2011/3/15.jpg" border="1" alt=" " hspace="5" width="300" height="227" align="left" />The Transport Ministry plans to set up an automated system of management of the transport complex (ASM TC), integrated with all the transportation processes of RF regions by 2015. It will help market participants to optimize logistics costs and get better services by integrating the existing information and network resources and intelligent transport systems of different sectors in industry.
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The first results of operation of gondolas with a high axle load have demonstrated great efficiency. According to the operators, such rolling stock helps reduce the costs for the current detaching repair by up to 40%, while the number of detaches is reduced by almost seven times compared to the baseline models.Array
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[DETAIL_TEXT] => Ten Years to Prepare
Let’s recall that the first information about the development of a new gondola appeared in Russia in the early 2000s. For example, from 1999 to 2002, Federal State Unitary Enterprise” Production Association “Uralvagonzavod “ (it was called so at that time), Bryansk Engineering Plant, and Ruzkhimmash JSC designed and manufactured a number of models (gondolas, tanks, hopper-batchers, platform) with axle loads of 25 tons instead of the 23.5 tons existing at that time according to the requirements of VNIIZhT JSC. However, testing of new models, correcting deficiencies and certification of the samples lasted for many years.
In 2008, the gondolas were tested in the VNIIZhT JSC, and the results showed that the rolling stock was suitable for use on any patch of a track construction. “There is no need to change the existing infrastructure of the company and the existing places of loading and unloading do not require special preparation,” experts of VNIIZhT JSC said. In their opinion, new models of cargo cars would help to increase the efficiency of the transportation process, to reduce operating costs and to increase service life as well as mileage of a car from the moment of being built to the first scheduled repair.
As a result, only in a crisis year of 2009 an innovative form of car started to operate for RZD JSC on the network. “Since December 2008, there have been 284 cars in controlled operation on the network of trunk railways of the Russian Federation. At the moment 3,000 gondolas are being made for the Universal Cargo Logistics Holding (UCL Holding) Transport Group”, said Uralvagonzavod JSC.
According to market operators and technical developers, the past two years of usage have showed that the new models have a big advantage over the existing analogs. “According to results of operation of these gondola cars (12-196-01 model) it can be noted that the amount of detaches is almost seven times fewer compared with the baseline models. This is primarily explained by the usage of trolleys with cassette bearings, while the old one used trolleys with roller bearings. 12-196-01 gondola model has 15 times fewer detaches caused by faulty wheelsets and by friction of bearings,” said Sergey Kaletin, Deputy General Director of Technical Development, Chief Engineer of Freight One Company.
He is supported by representatives of Rail Garant Holding.”Based on our experience gained from operating such cars, we have reached the following conclusion: the transportation of goods in universal cars of increased capacity can be beneficial from a commercial point of view only if transporting first-class goods. If we consider the special rolling stock, then, of course, the new cars are out of competition for transportation of any goods,” says Alexander Pyrkov, Technical Director of Pipe Transport Company (Rail Garant Group of Companies ) LLC. He agrees with his colleague, that such models tend to have a more reliable and quality chassis, on which the stable operation of the car very much depends. “We are sure, that it will reduce costs for the current detaching repair by up to 40%,” concludes Mr Pyrkov.
Narrow Testing Area
Curiously, cars of high axle load were originally assumed to operate only on a limited area, but later it became clear that there was no noticeable effect on the track caused by such cars. Particularly, Maxim Kuzemchenko, Director of Tikhvin Car Building Works CJSC Trading House, says that according to RZD JSC requirements, the indicators of the new rolling stock, which determine the impact on the track, should be not worse than the indicators of a standard car with a standard load of 23.5 tons per axle. “Results of tests on the influence of cars of Barber S-2-R trolley type of 18-9855 model with 25 tons axle load on a track confirmed full compliance of the new cars with these requirements,” he says. Thus, producers are confident that there won’t be any additional negative impact on the way. Also according to operators, already used trolleys “generally do not affect the existing infrastructure. Railway track facilities are ready to use high-load cars,” Mr Pyrkov is sure.
Representatives of Freight One Company agree with this opinion. They pay attention to the fact that the cars with higher axle load affect the infrastructure in the same way as models with an axial load of 23.5 tons do. “Tests prove that. Together with this it is necessary to accumulate experience of network-wide exploitation of this type of rolling stock. At the moment the loading rate of the new model cars is comparable to loading of the ordinary gondola cars - no more than 69-70 tons, although the loading is gradually increasing, approaching the level indicated in technical conditions - 75 tons,” said Mr Kaletin.
Entrance to World Economy
Despite the reduction in detaching repairs (which is very important at the moment in conditions of a marked reduction in the quality of produced equipment), the increase of production is another factor that distinguish innovative developments. “Cars with a high axle load of 25 tons and high carrying capacity (for example, 12-196-01 gondola car model has a carrying capacity of 75 tons) have higher productivity, even when other indicators are equal. Therefore, these cars are the first to be demanded by the transporters of bulk cargo with a well thought-out logistics,” said Uralvagonzavod representatives.
Operators are sure, that the issue is that there is no sense just to change one type of car on other type of car. It is necessary to replace outdated models with those that are able to carry more. “This will help to optimize the rolling stock volume (as we know, there are difficulties on certain railway roads with cargo traffic because of an overabundance of rolling stock). This is promising, more competitive and this will reduce the expenses of consignors,” one of the major operating companies says.
Indeed, implementation of such a technique into exploitation will generally increase cargo volume on the RZD network. In turn, this will help the Russian industry to integrate into the world economy. “Some calculations show that due to a high axle load and high carrying capacity, the productivity of the new cars increases by 5–10%. Increasing axle loads to 25 tons will let it carry more cargo volume, and that means that the traffic capacity of the railway network will be also increased,” says Mr Kaletin. Cars with high carrying capacity are very promising in Russia, agrees Мr Kuzemchenko. “The network can carry more, up to 7-8% more, using the same park. This saves money on the tariffs, on repairs and on the investment and also allows development of narrow section of track,” believes Tikhvin Car Building Work. In general, experts agree that in the future, the transition to cars with higher axle loads is unavoidable in Russia.
Operator is Waiting for Motivation
However, operators, as well as producers of that equipment can point to a number of disadvantages. “Speaking of operating at full capacity with attention on increasing speed performance, we should understand that we need to upgrade the existing infrastructure. In particular, this is about the railway lines,” notices Mr Pyrkov. There is also a problem of exploitation of international directions. As some companies say, in Lithuania particularly, cars with cassette axle-boxes are banned, and if the car got to the county somehow, then it would stay near the border and wait for permission for a long time.
“In the medium term, Russian companies may reduce demand for the gondola due to various factors. At the same time, we assume that cars with better performance will compete with the ordinary models,” say the specialists of Uralvagonzavod JSC. Mr Kuzemchenko describes the factors that can cause a decline in demand: “To use the increased carrying capacity, the car must be bigger than the standard model. This will lead to problems, as the increase in size is limited by the existing infrastructure, for example, by the size of car dumpers and by the length of loading and unloading tracks. As long as the wider system, allowing use of the increased capacity is not developed, increased axle load won’t bring economic benefits to the operator. So demand is low.”
And Should It Be More?
Meanwhile, market experts point out that the widespread usage of cars with axle loads higher than 25 tons is almost impossible for the existing network, considering the poor state of tracks of uncommon use that is really bad comparing with the infrastructure of the complex of RZD JSC. As the Department of Path and Constriction of RZD JSC said, “technical requirements for new freight cars with higher axle loads, agreed with the department, should be provided with improved chassis”. According to tests on the new rolling stock it became known that the dynamic load on the track of the new cars (25 tons per axle) does not exceed the load created by the rolling stock that is operated at the moment, but so far it is the maximum allowable value.
“There are a lot of bridges and other artificial establishments on a rail network - an average of one for each kilometre of a track. They have been designed and built to handle a certain pressure, so the mass use of cars with an axle load of 27 tons and 30 tons is impossible there without strengthening all of these constructs. In the coming decades we can speak only about the exploitation of cars with a load of 27 tons per axle only on specific routes that are suitable for this,” says Mr Kuzemchenko.
He predicts that such cars are able to operate on a broader area of the rail network, but in this case there is a need to make a significant reduction in operating speeds that would nullify the whole effect which could be obtained by increasing the carrying capacity. However, such an intensive exploitation of heavier cars is not required in the near future.
“In international practice, cars with an axle load of 27-30 tonnes are used on strictly defined routes, where the economic effect of increasing the carrying capacity (based on established permissible speed of traffic) exceeds the cost of maintaining the track associated with the organization of heavy traffic,”,says Mr Kaletin. Currently, there are real limits in Russia’s infrastructure for the implementation of traffic with a load of 27-30 tonnes per axle, agrees Uralvagonzavod, but at the same time it adds that heavy traffic is foreseen as part of the strategic development of rail transport and in the future infrastructure will be preparing for loads of 27 tons per axle and more.
By Maria Shevchenko
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Let’s recall that the first information about the development of a new gondola appeared in Russia in the early 2000s. For example, from 1999 to 2002, Federal State Unitary Enterprise” Production Association “Uralvagonzavod “ (it was called so at that time), Bryansk Engineering Plant, and Ruzkhimmash JSC designed and manufactured a number of models (gondolas, tanks, hopper-batchers, platform) with axle loads of 25 tons instead of the 23.5 tons existing at that time according to the requirements of VNIIZhT JSC. However, testing of new models, correcting deficiencies and certification of the samples lasted for many years.
In 2008, the gondolas were tested in the VNIIZhT JSC, and the results showed that the rolling stock was suitable for use on any patch of a track construction. “There is no need to change the existing infrastructure of the company and the existing places of loading and unloading do not require special preparation,” experts of VNIIZhT JSC said. In their opinion, new models of cargo cars would help to increase the efficiency of the transportation process, to reduce operating costs and to increase service life as well as mileage of a car from the moment of being built to the first scheduled repair.
As a result, only in a crisis year of 2009 an innovative form of car started to operate for RZD JSC on the network. “Since December 2008, there have been 284 cars in controlled operation on the network of trunk railways of the Russian Federation. At the moment 3,000 gondolas are being made for the Universal Cargo Logistics Holding (UCL Holding) Transport Group”, said Uralvagonzavod JSC.
According to market operators and technical developers, the past two years of usage have showed that the new models have a big advantage over the existing analogs. “According to results of operation of these gondola cars (12-196-01 model) it can be noted that the amount of detaches is almost seven times fewer compared with the baseline models. This is primarily explained by the usage of trolleys with cassette bearings, while the old one used trolleys with roller bearings. 12-196-01 gondola model has 15 times fewer detaches caused by faulty wheelsets and by friction of bearings,” said Sergey Kaletin, Deputy General Director of Technical Development, Chief Engineer of Freight One Company.
He is supported by representatives of Rail Garant Holding.”Based on our experience gained from operating such cars, we have reached the following conclusion: the transportation of goods in universal cars of increased capacity can be beneficial from a commercial point of view only if transporting first-class goods. If we consider the special rolling stock, then, of course, the new cars are out of competition for transportation of any goods,” says Alexander Pyrkov, Technical Director of Pipe Transport Company (Rail Garant Group of Companies ) LLC. He agrees with his colleague, that such models tend to have a more reliable and quality chassis, on which the stable operation of the car very much depends. “We are sure, that it will reduce costs for the current detaching repair by up to 40%,” concludes Mr Pyrkov.
Narrow Testing Area
Curiously, cars of high axle load were originally assumed to operate only on a limited area, but later it became clear that there was no noticeable effect on the track caused by such cars. Particularly, Maxim Kuzemchenko, Director of Tikhvin Car Building Works CJSC Trading House, says that according to RZD JSC requirements, the indicators of the new rolling stock, which determine the impact on the track, should be not worse than the indicators of a standard car with a standard load of 23.5 tons per axle. “Results of tests on the influence of cars of Barber S-2-R trolley type of 18-9855 model with 25 tons axle load on a track confirmed full compliance of the new cars with these requirements,” he says. Thus, producers are confident that there won’t be any additional negative impact on the way. Also according to operators, already used trolleys “generally do not affect the existing infrastructure. Railway track facilities are ready to use high-load cars,” Mr Pyrkov is sure.
Representatives of Freight One Company agree with this opinion. They pay attention to the fact that the cars with higher axle load affect the infrastructure in the same way as models with an axial load of 23.5 tons do. “Tests prove that. Together with this it is necessary to accumulate experience of network-wide exploitation of this type of rolling stock. At the moment the loading rate of the new model cars is comparable to loading of the ordinary gondola cars - no more than 69-70 tons, although the loading is gradually increasing, approaching the level indicated in technical conditions - 75 tons,” said Mr Kaletin.
Entrance to World Economy
Despite the reduction in detaching repairs (which is very important at the moment in conditions of a marked reduction in the quality of produced equipment), the increase of production is another factor that distinguish innovative developments. “Cars with a high axle load of 25 tons and high carrying capacity (for example, 12-196-01 gondola car model has a carrying capacity of 75 tons) have higher productivity, even when other indicators are equal. Therefore, these cars are the first to be demanded by the transporters of bulk cargo with a well thought-out logistics,” said Uralvagonzavod representatives.
Operators are sure, that the issue is that there is no sense just to change one type of car on other type of car. It is necessary to replace outdated models with those that are able to carry more. “This will help to optimize the rolling stock volume (as we know, there are difficulties on certain railway roads with cargo traffic because of an overabundance of rolling stock). This is promising, more competitive and this will reduce the expenses of consignors,” one of the major operating companies says.
Indeed, implementation of such a technique into exploitation will generally increase cargo volume on the RZD network. In turn, this will help the Russian industry to integrate into the world economy. “Some calculations show that due to a high axle load and high carrying capacity, the productivity of the new cars increases by 5–10%. Increasing axle loads to 25 tons will let it carry more cargo volume, and that means that the traffic capacity of the railway network will be also increased,” says Mr Kaletin. Cars with high carrying capacity are very promising in Russia, agrees Мr Kuzemchenko. “The network can carry more, up to 7-8% more, using the same park. This saves money on the tariffs, on repairs and on the investment and also allows development of narrow section of track,” believes Tikhvin Car Building Work. In general, experts agree that in the future, the transition to cars with higher axle loads is unavoidable in Russia.
Operator is Waiting for Motivation
However, operators, as well as producers of that equipment can point to a number of disadvantages. “Speaking of operating at full capacity with attention on increasing speed performance, we should understand that we need to upgrade the existing infrastructure. In particular, this is about the railway lines,” notices Mr Pyrkov. There is also a problem of exploitation of international directions. As some companies say, in Lithuania particularly, cars with cassette axle-boxes are banned, and if the car got to the county somehow, then it would stay near the border and wait for permission for a long time.
“In the medium term, Russian companies may reduce demand for the gondola due to various factors. At the same time, we assume that cars with better performance will compete with the ordinary models,” say the specialists of Uralvagonzavod JSC. Mr Kuzemchenko describes the factors that can cause a decline in demand: “To use the increased carrying capacity, the car must be bigger than the standard model. This will lead to problems, as the increase in size is limited by the existing infrastructure, for example, by the size of car dumpers and by the length of loading and unloading tracks. As long as the wider system, allowing use of the increased capacity is not developed, increased axle load won’t bring economic benefits to the operator. So demand is low.”
And Should It Be More?
Meanwhile, market experts point out that the widespread usage of cars with axle loads higher than 25 tons is almost impossible for the existing network, considering the poor state of tracks of uncommon use that is really bad comparing with the infrastructure of the complex of RZD JSC. As the Department of Path and Constriction of RZD JSC said, “technical requirements for new freight cars with higher axle loads, agreed with the department, should be provided with improved chassis”. According to tests on the new rolling stock it became known that the dynamic load on the track of the new cars (25 tons per axle) does not exceed the load created by the rolling stock that is operated at the moment, but so far it is the maximum allowable value.
“There are a lot of bridges and other artificial establishments on a rail network - an average of one for each kilometre of a track. They have been designed and built to handle a certain pressure, so the mass use of cars with an axle load of 27 tons and 30 tons is impossible there without strengthening all of these constructs. In the coming decades we can speak only about the exploitation of cars with a load of 27 tons per axle only on specific routes that are suitable for this,” says Mr Kuzemchenko.
He predicts that such cars are able to operate on a broader area of the rail network, but in this case there is a need to make a significant reduction in operating speeds that would nullify the whole effect which could be obtained by increasing the carrying capacity. However, such an intensive exploitation of heavier cars is not required in the near future.
“In international practice, cars with an axle load of 27-30 tonnes are used on strictly defined routes, where the economic effect of increasing the carrying capacity (based on established permissible speed of traffic) exceeds the cost of maintaining the track associated with the organization of heavy traffic,”,says Mr Kaletin. Currently, there are real limits in Russia’s infrastructure for the implementation of traffic with a load of 27-30 tonnes per axle, agrees Uralvagonzavod, but at the same time it adds that heavy traffic is foreseen as part of the strategic development of rail transport and in the future infrastructure will be preparing for loads of 27 tons per axle and more.
By Maria Shevchenko
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[SECTION_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2011/3/14.jpg" border="1" alt=" " hspace="5" width="200" height="264" align="left" />The first results of operation of gondolas with a high axle load have demonstrated great efficiency. According to the operators, such rolling stock helps reduce the costs for the current detaching repair by up to 40%, while the number of detaches is reduced by almost seven times compared to the baseline models.
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[DETAIL_TEXT] => Ten Years to Prepare
Let’s recall that the first information about the development of a new gondola appeared in Russia in the early 2000s. For example, from 1999 to 2002, Federal State Unitary Enterprise” Production Association “Uralvagonzavod “ (it was called so at that time), Bryansk Engineering Plant, and Ruzkhimmash JSC designed and manufactured a number of models (gondolas, tanks, hopper-batchers, platform) with axle loads of 25 tons instead of the 23.5 tons existing at that time according to the requirements of VNIIZhT JSC. However, testing of new models, correcting deficiencies and certification of the samples lasted for many years.
In 2008, the gondolas were tested in the VNIIZhT JSC, and the results showed that the rolling stock was suitable for use on any patch of a track construction. “There is no need to change the existing infrastructure of the company and the existing places of loading and unloading do not require special preparation,” experts of VNIIZhT JSC said. In their opinion, new models of cargo cars would help to increase the efficiency of the transportation process, to reduce operating costs and to increase service life as well as mileage of a car from the moment of being built to the first scheduled repair.
As a result, only in a crisis year of 2009 an innovative form of car started to operate for RZD JSC on the network. “Since December 2008, there have been 284 cars in controlled operation on the network of trunk railways of the Russian Federation. At the moment 3,000 gondolas are being made for the Universal Cargo Logistics Holding (UCL Holding) Transport Group”, said Uralvagonzavod JSC.
According to market operators and technical developers, the past two years of usage have showed that the new models have a big advantage over the existing analogs. “According to results of operation of these gondola cars (12-196-01 model) it can be noted that the amount of detaches is almost seven times fewer compared with the baseline models. This is primarily explained by the usage of trolleys with cassette bearings, while the old one used trolleys with roller bearings. 12-196-01 gondola model has 15 times fewer detaches caused by faulty wheelsets and by friction of bearings,” said Sergey Kaletin, Deputy General Director of Technical Development, Chief Engineer of Freight One Company.
He is supported by representatives of Rail Garant Holding.”Based on our experience gained from operating such cars, we have reached the following conclusion: the transportation of goods in universal cars of increased capacity can be beneficial from a commercial point of view only if transporting first-class goods. If we consider the special rolling stock, then, of course, the new cars are out of competition for transportation of any goods,” says Alexander Pyrkov, Technical Director of Pipe Transport Company (Rail Garant Group of Companies ) LLC. He agrees with his colleague, that such models tend to have a more reliable and quality chassis, on which the stable operation of the car very much depends. “We are sure, that it will reduce costs for the current detaching repair by up to 40%,” concludes Mr Pyrkov.
Narrow Testing Area
Curiously, cars of high axle load were originally assumed to operate only on a limited area, but later it became clear that there was no noticeable effect on the track caused by such cars. Particularly, Maxim Kuzemchenko, Director of Tikhvin Car Building Works CJSC Trading House, says that according to RZD JSC requirements, the indicators of the new rolling stock, which determine the impact on the track, should be not worse than the indicators of a standard car with a standard load of 23.5 tons per axle. “Results of tests on the influence of cars of Barber S-2-R trolley type of 18-9855 model with 25 tons axle load on a track confirmed full compliance of the new cars with these requirements,” he says. Thus, producers are confident that there won’t be any additional negative impact on the way. Also according to operators, already used trolleys “generally do not affect the existing infrastructure. Railway track facilities are ready to use high-load cars,” Mr Pyrkov is sure.
Representatives of Freight One Company agree with this opinion. They pay attention to the fact that the cars with higher axle load affect the infrastructure in the same way as models with an axial load of 23.5 tons do. “Tests prove that. Together with this it is necessary to accumulate experience of network-wide exploitation of this type of rolling stock. At the moment the loading rate of the new model cars is comparable to loading of the ordinary gondola cars - no more than 69-70 tons, although the loading is gradually increasing, approaching the level indicated in technical conditions - 75 tons,” said Mr Kaletin.
Entrance to World Economy
Despite the reduction in detaching repairs (which is very important at the moment in conditions of a marked reduction in the quality of produced equipment), the increase of production is another factor that distinguish innovative developments. “Cars with a high axle load of 25 tons and high carrying capacity (for example, 12-196-01 gondola car model has a carrying capacity of 75 tons) have higher productivity, even when other indicators are equal. Therefore, these cars are the first to be demanded by the transporters of bulk cargo with a well thought-out logistics,” said Uralvagonzavod representatives.
Operators are sure, that the issue is that there is no sense just to change one type of car on other type of car. It is necessary to replace outdated models with those that are able to carry more. “This will help to optimize the rolling stock volume (as we know, there are difficulties on certain railway roads with cargo traffic because of an overabundance of rolling stock). This is promising, more competitive and this will reduce the expenses of consignors,” one of the major operating companies says.
Indeed, implementation of such a technique into exploitation will generally increase cargo volume on the RZD network. In turn, this will help the Russian industry to integrate into the world economy. “Some calculations show that due to a high axle load and high carrying capacity, the productivity of the new cars increases by 5–10%. Increasing axle loads to 25 tons will let it carry more cargo volume, and that means that the traffic capacity of the railway network will be also increased,” says Mr Kaletin. Cars with high carrying capacity are very promising in Russia, agrees Мr Kuzemchenko. “The network can carry more, up to 7-8% more, using the same park. This saves money on the tariffs, on repairs and on the investment and also allows development of narrow section of track,” believes Tikhvin Car Building Work. In general, experts agree that in the future, the transition to cars with higher axle loads is unavoidable in Russia.
Operator is Waiting for Motivation
However, operators, as well as producers of that equipment can point to a number of disadvantages. “Speaking of operating at full capacity with attention on increasing speed performance, we should understand that we need to upgrade the existing infrastructure. In particular, this is about the railway lines,” notices Mr Pyrkov. There is also a problem of exploitation of international directions. As some companies say, in Lithuania particularly, cars with cassette axle-boxes are banned, and if the car got to the county somehow, then it would stay near the border and wait for permission for a long time.
“In the medium term, Russian companies may reduce demand for the gondola due to various factors. At the same time, we assume that cars with better performance will compete with the ordinary models,” say the specialists of Uralvagonzavod JSC. Mr Kuzemchenko describes the factors that can cause a decline in demand: “To use the increased carrying capacity, the car must be bigger than the standard model. This will lead to problems, as the increase in size is limited by the existing infrastructure, for example, by the size of car dumpers and by the length of loading and unloading tracks. As long as the wider system, allowing use of the increased capacity is not developed, increased axle load won’t bring economic benefits to the operator. So demand is low.”
And Should It Be More?
Meanwhile, market experts point out that the widespread usage of cars with axle loads higher than 25 tons is almost impossible for the existing network, considering the poor state of tracks of uncommon use that is really bad comparing with the infrastructure of the complex of RZD JSC. As the Department of Path and Constriction of RZD JSC said, “technical requirements for new freight cars with higher axle loads, agreed with the department, should be provided with improved chassis”. According to tests on the new rolling stock it became known that the dynamic load on the track of the new cars (25 tons per axle) does not exceed the load created by the rolling stock that is operated at the moment, but so far it is the maximum allowable value.
“There are a lot of bridges and other artificial establishments on a rail network - an average of one for each kilometre of a track. They have been designed and built to handle a certain pressure, so the mass use of cars with an axle load of 27 tons and 30 tons is impossible there without strengthening all of these constructs. In the coming decades we can speak only about the exploitation of cars with a load of 27 tons per axle only on specific routes that are suitable for this,” says Mr Kuzemchenko.
He predicts that such cars are able to operate on a broader area of the rail network, but in this case there is a need to make a significant reduction in operating speeds that would nullify the whole effect which could be obtained by increasing the carrying capacity. However, such an intensive exploitation of heavier cars is not required in the near future.
“In international practice, cars with an axle load of 27-30 tonnes are used on strictly defined routes, where the economic effect of increasing the carrying capacity (based on established permissible speed of traffic) exceeds the cost of maintaining the track associated with the organization of heavy traffic,”,says Mr Kaletin. Currently, there are real limits in Russia’s infrastructure for the implementation of traffic with a load of 27-30 tonnes per axle, agrees Uralvagonzavod, but at the same time it adds that heavy traffic is foreseen as part of the strategic development of rail transport and in the future infrastructure will be preparing for loads of 27 tons per axle and more.
By Maria Shevchenko
[~DETAIL_TEXT] => Ten Years to Prepare
Let’s recall that the first information about the development of a new gondola appeared in Russia in the early 2000s. For example, from 1999 to 2002, Federal State Unitary Enterprise” Production Association “Uralvagonzavod “ (it was called so at that time), Bryansk Engineering Plant, and Ruzkhimmash JSC designed and manufactured a number of models (gondolas, tanks, hopper-batchers, platform) with axle loads of 25 tons instead of the 23.5 tons existing at that time according to the requirements of VNIIZhT JSC. However, testing of new models, correcting deficiencies and certification of the samples lasted for many years.
In 2008, the gondolas were tested in the VNIIZhT JSC, and the results showed that the rolling stock was suitable for use on any patch of a track construction. “There is no need to change the existing infrastructure of the company and the existing places of loading and unloading do not require special preparation,” experts of VNIIZhT JSC said. In their opinion, new models of cargo cars would help to increase the efficiency of the transportation process, to reduce operating costs and to increase service life as well as mileage of a car from the moment of being built to the first scheduled repair.
As a result, only in a crisis year of 2009 an innovative form of car started to operate for RZD JSC on the network. “Since December 2008, there have been 284 cars in controlled operation on the network of trunk railways of the Russian Federation. At the moment 3,000 gondolas are being made for the Universal Cargo Logistics Holding (UCL Holding) Transport Group”, said Uralvagonzavod JSC.
According to market operators and technical developers, the past two years of usage have showed that the new models have a big advantage over the existing analogs. “According to results of operation of these gondola cars (12-196-01 model) it can be noted that the amount of detaches is almost seven times fewer compared with the baseline models. This is primarily explained by the usage of trolleys with cassette bearings, while the old one used trolleys with roller bearings. 12-196-01 gondola model has 15 times fewer detaches caused by faulty wheelsets and by friction of bearings,” said Sergey Kaletin, Deputy General Director of Technical Development, Chief Engineer of Freight One Company.
He is supported by representatives of Rail Garant Holding.”Based on our experience gained from operating such cars, we have reached the following conclusion: the transportation of goods in universal cars of increased capacity can be beneficial from a commercial point of view only if transporting first-class goods. If we consider the special rolling stock, then, of course, the new cars are out of competition for transportation of any goods,” says Alexander Pyrkov, Technical Director of Pipe Transport Company (Rail Garant Group of Companies ) LLC. He agrees with his colleague, that such models tend to have a more reliable and quality chassis, on which the stable operation of the car very much depends. “We are sure, that it will reduce costs for the current detaching repair by up to 40%,” concludes Mr Pyrkov.
Narrow Testing Area
Curiously, cars of high axle load were originally assumed to operate only on a limited area, but later it became clear that there was no noticeable effect on the track caused by such cars. Particularly, Maxim Kuzemchenko, Director of Tikhvin Car Building Works CJSC Trading House, says that according to RZD JSC requirements, the indicators of the new rolling stock, which determine the impact on the track, should be not worse than the indicators of a standard car with a standard load of 23.5 tons per axle. “Results of tests on the influence of cars of Barber S-2-R trolley type of 18-9855 model with 25 tons axle load on a track confirmed full compliance of the new cars with these requirements,” he says. Thus, producers are confident that there won’t be any additional negative impact on the way. Also according to operators, already used trolleys “generally do not affect the existing infrastructure. Railway track facilities are ready to use high-load cars,” Mr Pyrkov is sure.
Representatives of Freight One Company agree with this opinion. They pay attention to the fact that the cars with higher axle load affect the infrastructure in the same way as models with an axial load of 23.5 tons do. “Tests prove that. Together with this it is necessary to accumulate experience of network-wide exploitation of this type of rolling stock. At the moment the loading rate of the new model cars is comparable to loading of the ordinary gondola cars - no more than 69-70 tons, although the loading is gradually increasing, approaching the level indicated in technical conditions - 75 tons,” said Mr Kaletin.
Entrance to World Economy
Despite the reduction in detaching repairs (which is very important at the moment in conditions of a marked reduction in the quality of produced equipment), the increase of production is another factor that distinguish innovative developments. “Cars with a high axle load of 25 tons and high carrying capacity (for example, 12-196-01 gondola car model has a carrying capacity of 75 tons) have higher productivity, even when other indicators are equal. Therefore, these cars are the first to be demanded by the transporters of bulk cargo with a well thought-out logistics,” said Uralvagonzavod representatives.
Operators are sure, that the issue is that there is no sense just to change one type of car on other type of car. It is necessary to replace outdated models with those that are able to carry more. “This will help to optimize the rolling stock volume (as we know, there are difficulties on certain railway roads with cargo traffic because of an overabundance of rolling stock). This is promising, more competitive and this will reduce the expenses of consignors,” one of the major operating companies says.
Indeed, implementation of such a technique into exploitation will generally increase cargo volume on the RZD network. In turn, this will help the Russian industry to integrate into the world economy. “Some calculations show that due to a high axle load and high carrying capacity, the productivity of the new cars increases by 5–10%. Increasing axle loads to 25 tons will let it carry more cargo volume, and that means that the traffic capacity of the railway network will be also increased,” says Mr Kaletin. Cars with high carrying capacity are very promising in Russia, agrees Мr Kuzemchenko. “The network can carry more, up to 7-8% more, using the same park. This saves money on the tariffs, on repairs and on the investment and also allows development of narrow section of track,” believes Tikhvin Car Building Work. In general, experts agree that in the future, the transition to cars with higher axle loads is unavoidable in Russia.
Operator is Waiting for Motivation
However, operators, as well as producers of that equipment can point to a number of disadvantages. “Speaking of operating at full capacity with attention on increasing speed performance, we should understand that we need to upgrade the existing infrastructure. In particular, this is about the railway lines,” notices Mr Pyrkov. There is also a problem of exploitation of international directions. As some companies say, in Lithuania particularly, cars with cassette axle-boxes are banned, and if the car got to the county somehow, then it would stay near the border and wait for permission for a long time.
“In the medium term, Russian companies may reduce demand for the gondola due to various factors. At the same time, we assume that cars with better performance will compete with the ordinary models,” say the specialists of Uralvagonzavod JSC. Mr Kuzemchenko describes the factors that can cause a decline in demand: “To use the increased carrying capacity, the car must be bigger than the standard model. This will lead to problems, as the increase in size is limited by the existing infrastructure, for example, by the size of car dumpers and by the length of loading and unloading tracks. As long as the wider system, allowing use of the increased capacity is not developed, increased axle load won’t bring economic benefits to the operator. So demand is low.”
And Should It Be More?
Meanwhile, market experts point out that the widespread usage of cars with axle loads higher than 25 tons is almost impossible for the existing network, considering the poor state of tracks of uncommon use that is really bad comparing with the infrastructure of the complex of RZD JSC. As the Department of Path and Constriction of RZD JSC said, “technical requirements for new freight cars with higher axle loads, agreed with the department, should be provided with improved chassis”. According to tests on the new rolling stock it became known that the dynamic load on the track of the new cars (25 tons per axle) does not exceed the load created by the rolling stock that is operated at the moment, but so far it is the maximum allowable value.
“There are a lot of bridges and other artificial establishments on a rail network - an average of one for each kilometre of a track. They have been designed and built to handle a certain pressure, so the mass use of cars with an axle load of 27 tons and 30 tons is impossible there without strengthening all of these constructs. In the coming decades we can speak only about the exploitation of cars with a load of 27 tons per axle only on specific routes that are suitable for this,” says Mr Kuzemchenko.
He predicts that such cars are able to operate on a broader area of the rail network, but in this case there is a need to make a significant reduction in operating speeds that would nullify the whole effect which could be obtained by increasing the carrying capacity. However, such an intensive exploitation of heavier cars is not required in the near future.
“In international practice, cars with an axle load of 27-30 tonnes are used on strictly defined routes, where the economic effect of increasing the carrying capacity (based on established permissible speed of traffic) exceeds the cost of maintaining the track associated with the organization of heavy traffic,”,says Mr Kaletin. Currently, there are real limits in Russia’s infrastructure for the implementation of traffic with a load of 27-30 tonnes per axle, agrees Uralvagonzavod, but at the same time it adds that heavy traffic is foreseen as part of the strategic development of rail transport and in the future infrastructure will be preparing for loads of 27 tons per axle and more.
By Maria Shevchenko
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Global Ports Investments (GPI), the largest port operator in Russia, conducted a successful IPO on the London Stock Exchange (LSE). In the opinion of investors and investment banks, the keystone of success was the rational valuation of a company with good potential for growth.Array
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The total offering amounted to $588 million. In the first day of the offering, the price for the company’s shares grew by 16% on the offer price – from $15 to $17.4. Also, Deutsche Bank, Goldman Sachs International, Morgan Stanley and Russia’s Troika Dialog investment company – joint global coordinators and joint bookrunners for the offering – exercised the full over-allotment option (10% of the basic size of the deal).
Experts named the IPO of Global Ports one of the most successful in 2011, although the price for the company’s securities was not the maximum. On the eve of the IPO, the company was estimated at $2.2-2.4 billion (the initial estimate was $2.7 billion). The estimate of the cost became worse because of a complicated market situation.
Of the $588 million made, the company will receive $100 million, and the rest will be given to its only shareholder – Transportation Investments Holding Limited (TIHL).
Global Ports Investments PLC (GPI group of companies) is one of the leading operators of container terminals in Russia. It is incorporated into N-Trans group of companies – the largest private operator in the market of transport services and infrastructure in Russia. GPI controls three Russian container terminals (Petrolesport and Mobi Dick in the Big Port of St Petersburg, Vostochnaya Stevedoring Company in the Vostochny port), two container terminals in Finland (MLT-Kotka in the port of Kotka, and MLT-Helsinki in the Vuosaari port).
GPI group of companies also incorporates the Yanino inland terminal near St Petersburg, and the largest terminal for petrochemicals handling in the Baltic Sea basin Vopak E.O.S., located in Estonia. The share of the group’s container terminals is 30% of total Russian container turnover. Vopak E.O.S. handles 28% of the total volume of fuel oil exported from the former Soviet countries.
Market Situation
In 2010, the Russian container transportation market exceeded experts’ forecasts – it recovered to pre-crisis volumes, while everyone had expected this would happen only in 2012. Nobody believed that, after the successful 2007-2008, when sea terminals were bursting with containers, and stevedores put boxes of Maersk, CMA CGM or MSC one by one for loading, and the disastrous 2009, when a lot of clients disappeared as if they had been swept away by waves, the market would come back to life so soon.
The potential for container market growth in the RF to 2013 is approximately 60%, the throughput may increase to 6.9 million 20-foot boxes, consider experts from Drewry agency (London). On average, the Russian container market grows by 18.6% every year. It is twice as much as world growth, because the level of cargo containerisation increases, and it is still low in Russia in comparison with the leading countries in the world.
According to the results of 2010, Global Ports Group became second-biggest container stevedore in the country – its terminals in the Big Port of St Petersburg (Petrolesport and Mobi Dick) and in the Vostochny port (Vostochnaya Stevedoring Company) handled 1.096 million TEUs. In the 1st quarter of 2011, however, the group of companies rose to the top of the list, as its market share amounted to 30%.
In the 1st quarter of 2011, the group’s financial results also increased: its consolidated revenue – by 60.8% year-on-year to $122.9 million, and EBITDA grew 2.5-fold to $67.3 million. Meanwhile, the group’s revenue in 2010 amounted to $ 382.4 million (+39.3% in comparison with 2009), and its EBITDA was $206.6 million (+58.3% year-on-year).
N-Trans has experience of holding two IPOs, in which the group of companies participated - those of Globaltrans and Mostotrest. In both cases, the companies issued their securities amid a so-called “low” market. Globaltrans held its IPO in the 2nd half of 2008, when the second wave of the global economic crisis overwhelmed Russia, and the SPO in 2009, when everyone else was busy trying to survive. Mostotrest held an IPO in November 2010, and analysts forecasted (the same as they did with Global Ports) that the demand for it would be low.
The EBRD Put Its Contribution
During the company’s initial public offering on the London Stock Exchange, the European Bank of Reconstruction and Development (EBRD) purchased a 2.98% shareholding in GPI.
The $70 million investment shows that the EBRD is eager to support the development of Russian infrastructure, and are a part of the strategy to support companies attracting means on international capital markets and operating mainly in the key economic sectors, which have a significant need for long-tem investments, specialists of the bank said.
After the IPO, the share of the Global Ports free float was 25% of the total number of allotted shares. Investors were offered global depositary receipts (GDRs), with one GDR representing an interest in three ordinary shares of Global Ports. The EBRD’s share in the total placement was 11.9%.
In the words of Varel Freeman, First Vice President of the EBRD, this was the first transport and infrastructure IPO from Russia and Eastern Europe since the 2008-2009 financial crisis, and its success showed the opportunities for private players to attract capital for modernisation projects aimed at increasing capacity to handle growing cargo volumes.
“Today’s IPO has in addition given the EBRD an opportunity to support the badly needed expansion in order to eliminate bottlenecks in the country’s transport system and make terminal services accessible to a larger group of customers, a development in which private terminals have a vital role to play”, Mr Freeman added.
The proceeds raised by Global Ports through this share purchase by EBRD will be used for capital investments in Global Ports’ infrastructure in Russia, including replacing older equipment with more environmentally friendly and energy-efficient versions one of the Bank’s major priorities. Energy costs (fuel, electricity and gas) have a significant impact on the price-formation of the group’s products.
What Is the Role of TransContainer?
Some analysts regard the IPO of Global Ports as its shareholders’ ambition to attract the means to purchase Russia’s largest railway container operator – TransContainer.
Last April, the Board of Directors of Russian Railways (the owner of the operator) approved the decision to sell 25% + 1 share in its daughter company, having estimated the shareholding at RUR 10.7 billion (about $370 million). Valery Reshetnikov, a Senior Vice President of RZD, said that the company intended to sell this shareholding before the autumn.
Managers of Global Ports note that “the group of companies is going to use the proceeds raised through the IPO to finance the programme of capital investments into the group’s port sector in Russia”. At the beginning of the year, the company announced its plans to invest $90 million into port development in 2011. About $57 million was spent for this purpose in 2010. Some sources in the sector believe that no IPO was needed for investments into terminals, the GPI can make them at the expense of its profit.
In the opinion of Anna Kupriyanova, an analyst at Uralsib Managing Company, “the market situation [for shares placement] is not favourable, so the shareholders must be searching for funds to buy other companies.” “Out of all possible assets, in my opinion, the purchase of TransContainer would be the best for business development, especially if we take into account Global Ports’ specialisation in the container business. Also, it would give a good synergistic effect,” said the analyst.
N-Trans will fight with FESCO (which owns a 12.5% stake in the operator and will lay claim to the controlling interest) for TransContainer. They will hardly purchase Freight One, and TransContainer is a strategic asset for the group of companies – they can find new development schemes, a source in the sector agrees with Mrs Kupriyanova.
On the contrary, Konstantin Yuminov, an analyst at Raiffeisenbank, believes there is no sense in the company participating in the auction, where 25%+1 share in TransContainer will be sold. “Neither N-Trans, nor its daughter companies (Globaltrans or Global Ports) are interested in being a minority shareholder, as they will not be able to influence the company. Also, RZD and FESCO have their shareholdings in TransContainer, and they do not expect that N-Trans will join them,” he said. In the opinion of Mr Yuminov, it is worth participating in the auction, if a 50% stake in the operator is sold.
A Qualitative Asset
“The estimation of Global Ports was quite reasonable. And there is potential. I think, the company could be estimated at $3 billion, if the market situation was better,” said one of the asset managers.
The price for GDR of Global Ports in London increased by 10% to $16.5 soon after the placement. The bookbuilding process for the IPO was completed three days before the road show. In the words of a source close to the offering, the book was oversubscribed – the cap price almost doubled and the floor price grew three-fold. The majority of the placement was purchased by western long-only funds.
According to Vladimir Dorogov, an analyst at Alfa-Bank, Global Ports held the IPO having 7.8 EV/EBITDA multiple. That of NMTP (Novorossiysk Commercial Sea Port) is 7.6. Meanwhile, similar companies from developing markets are almost 40% more expensive – 14-15 EV/EBITDA, and those from developed markets have an 11 EV/EBITDA multiple.
“Naturally, the economic situation in the world may change, but as far as now, this (Global Ports) is a very qualitative asset,” he said, supposing that the potential for its price growth is 30% of the placement price.
The company thinks that the successful placement, “shows that there is significant interest from investors in the leading infrastructure companies operating on the growing markets.”
“I think the placement was in line with the market situation – high volatility on the world markets and the beginning of the summer season, when business activity is low. Considering all this, the company had an adequate placement – without an obvious premium and with a slight discount in comparison with other similar companies,” noted Andrey Rozhkov, an analyst at Metropol Investment Financial Company.
Elena Sakhnova, an analyst at VTB Capital, shares his viewpoint. She says that the company’s placement was a success, because “it showed investors its good story.”
By Stanislav Russkov
[~DETAIL_TEXT] => Take a Little, And Give the Rest to Investors
The total offering amounted to $588 million. In the first day of the offering, the price for the company’s shares grew by 16% on the offer price – from $15 to $17.4. Also, Deutsche Bank, Goldman Sachs International, Morgan Stanley and Russia’s Troika Dialog investment company – joint global coordinators and joint bookrunners for the offering – exercised the full over-allotment option (10% of the basic size of the deal).
Experts named the IPO of Global Ports one of the most successful in 2011, although the price for the company’s securities was not the maximum. On the eve of the IPO, the company was estimated at $2.2-2.4 billion (the initial estimate was $2.7 billion). The estimate of the cost became worse because of a complicated market situation.
Of the $588 million made, the company will receive $100 million, and the rest will be given to its only shareholder – Transportation Investments Holding Limited (TIHL).
Global Ports Investments PLC (GPI group of companies) is one of the leading operators of container terminals in Russia. It is incorporated into N-Trans group of companies – the largest private operator in the market of transport services and infrastructure in Russia. GPI controls three Russian container terminals (Petrolesport and Mobi Dick in the Big Port of St Petersburg, Vostochnaya Stevedoring Company in the Vostochny port), two container terminals in Finland (MLT-Kotka in the port of Kotka, and MLT-Helsinki in the Vuosaari port).
GPI group of companies also incorporates the Yanino inland terminal near St Petersburg, and the largest terminal for petrochemicals handling in the Baltic Sea basin Vopak E.O.S., located in Estonia. The share of the group’s container terminals is 30% of total Russian container turnover. Vopak E.O.S. handles 28% of the total volume of fuel oil exported from the former Soviet countries.
Market Situation
In 2010, the Russian container transportation market exceeded experts’ forecasts – it recovered to pre-crisis volumes, while everyone had expected this would happen only in 2012. Nobody believed that, after the successful 2007-2008, when sea terminals were bursting with containers, and stevedores put boxes of Maersk, CMA CGM or MSC one by one for loading, and the disastrous 2009, when a lot of clients disappeared as if they had been swept away by waves, the market would come back to life so soon.
The potential for container market growth in the RF to 2013 is approximately 60%, the throughput may increase to 6.9 million 20-foot boxes, consider experts from Drewry agency (London). On average, the Russian container market grows by 18.6% every year. It is twice as much as world growth, because the level of cargo containerisation increases, and it is still low in Russia in comparison with the leading countries in the world.
According to the results of 2010, Global Ports Group became second-biggest container stevedore in the country – its terminals in the Big Port of St Petersburg (Petrolesport and Mobi Dick) and in the Vostochny port (Vostochnaya Stevedoring Company) handled 1.096 million TEUs. In the 1st quarter of 2011, however, the group of companies rose to the top of the list, as its market share amounted to 30%.
In the 1st quarter of 2011, the group’s financial results also increased: its consolidated revenue – by 60.8% year-on-year to $122.9 million, and EBITDA grew 2.5-fold to $67.3 million. Meanwhile, the group’s revenue in 2010 amounted to $ 382.4 million (+39.3% in comparison with 2009), and its EBITDA was $206.6 million (+58.3% year-on-year).
N-Trans has experience of holding two IPOs, in which the group of companies participated - those of Globaltrans and Mostotrest. In both cases, the companies issued their securities amid a so-called “low” market. Globaltrans held its IPO in the 2nd half of 2008, when the second wave of the global economic crisis overwhelmed Russia, and the SPO in 2009, when everyone else was busy trying to survive. Mostotrest held an IPO in November 2010, and analysts forecasted (the same as they did with Global Ports) that the demand for it would be low.
The EBRD Put Its Contribution
During the company’s initial public offering on the London Stock Exchange, the European Bank of Reconstruction and Development (EBRD) purchased a 2.98% shareholding in GPI.
The $70 million investment shows that the EBRD is eager to support the development of Russian infrastructure, and are a part of the strategy to support companies attracting means on international capital markets and operating mainly in the key economic sectors, which have a significant need for long-tem investments, specialists of the bank said.
After the IPO, the share of the Global Ports free float was 25% of the total number of allotted shares. Investors were offered global depositary receipts (GDRs), with one GDR representing an interest in three ordinary shares of Global Ports. The EBRD’s share in the total placement was 11.9%.
In the words of Varel Freeman, First Vice President of the EBRD, this was the first transport and infrastructure IPO from Russia and Eastern Europe since the 2008-2009 financial crisis, and its success showed the opportunities for private players to attract capital for modernisation projects aimed at increasing capacity to handle growing cargo volumes.
“Today’s IPO has in addition given the EBRD an opportunity to support the badly needed expansion in order to eliminate bottlenecks in the country’s transport system and make terminal services accessible to a larger group of customers, a development in which private terminals have a vital role to play”, Mr Freeman added.
The proceeds raised by Global Ports through this share purchase by EBRD will be used for capital investments in Global Ports’ infrastructure in Russia, including replacing older equipment with more environmentally friendly and energy-efficient versions one of the Bank’s major priorities. Energy costs (fuel, electricity and gas) have a significant impact on the price-formation of the group’s products.
What Is the Role of TransContainer?
Some analysts regard the IPO of Global Ports as its shareholders’ ambition to attract the means to purchase Russia’s largest railway container operator – TransContainer.
Last April, the Board of Directors of Russian Railways (the owner of the operator) approved the decision to sell 25% + 1 share in its daughter company, having estimated the shareholding at RUR 10.7 billion (about $370 million). Valery Reshetnikov, a Senior Vice President of RZD, said that the company intended to sell this shareholding before the autumn.
Managers of Global Ports note that “the group of companies is going to use the proceeds raised through the IPO to finance the programme of capital investments into the group’s port sector in Russia”. At the beginning of the year, the company announced its plans to invest $90 million into port development in 2011. About $57 million was spent for this purpose in 2010. Some sources in the sector believe that no IPO was needed for investments into terminals, the GPI can make them at the expense of its profit.
In the opinion of Anna Kupriyanova, an analyst at Uralsib Managing Company, “the market situation [for shares placement] is not favourable, so the shareholders must be searching for funds to buy other companies.” “Out of all possible assets, in my opinion, the purchase of TransContainer would be the best for business development, especially if we take into account Global Ports’ specialisation in the container business. Also, it would give a good synergistic effect,” said the analyst.
N-Trans will fight with FESCO (which owns a 12.5% stake in the operator and will lay claim to the controlling interest) for TransContainer. They will hardly purchase Freight One, and TransContainer is a strategic asset for the group of companies – they can find new development schemes, a source in the sector agrees with Mrs Kupriyanova.
On the contrary, Konstantin Yuminov, an analyst at Raiffeisenbank, believes there is no sense in the company participating in the auction, where 25%+1 share in TransContainer will be sold. “Neither N-Trans, nor its daughter companies (Globaltrans or Global Ports) are interested in being a minority shareholder, as they will not be able to influence the company. Also, RZD and FESCO have their shareholdings in TransContainer, and they do not expect that N-Trans will join them,” he said. In the opinion of Mr Yuminov, it is worth participating in the auction, if a 50% stake in the operator is sold.
A Qualitative Asset
“The estimation of Global Ports was quite reasonable. And there is potential. I think, the company could be estimated at $3 billion, if the market situation was better,” said one of the asset managers.
The price for GDR of Global Ports in London increased by 10% to $16.5 soon after the placement. The bookbuilding process for the IPO was completed three days before the road show. In the words of a source close to the offering, the book was oversubscribed – the cap price almost doubled and the floor price grew three-fold. The majority of the placement was purchased by western long-only funds.
According to Vladimir Dorogov, an analyst at Alfa-Bank, Global Ports held the IPO having 7.8 EV/EBITDA multiple. That of NMTP (Novorossiysk Commercial Sea Port) is 7.6. Meanwhile, similar companies from developing markets are almost 40% more expensive – 14-15 EV/EBITDA, and those from developed markets have an 11 EV/EBITDA multiple.
“Naturally, the economic situation in the world may change, but as far as now, this (Global Ports) is a very qualitative asset,” he said, supposing that the potential for its price growth is 30% of the placement price.
The company thinks that the successful placement, “shows that there is significant interest from investors in the leading infrastructure companies operating on the growing markets.”
“I think the placement was in line with the market situation – high volatility on the world markets and the beginning of the summer season, when business activity is low. Considering all this, the company had an adequate placement – without an obvious premium and with a slight discount in comparison with other similar companies,” noted Andrey Rozhkov, an analyst at Metropol Investment Financial Company.
Elena Sakhnova, an analyst at VTB Capital, shares his viewpoint. She says that the company’s placement was a success, because “it showed investors its good story.”
By Stanislav Russkov
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[SECTION_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2011/3/13.jpg" border="1" alt=" " hspace="5" width="450" height="151" align="left" />Global Ports Investments (GPI), the largest port operator in Russia, conducted a successful IPO on the London Stock Exchange (LSE). In the opinion of investors and investment banks, the keystone of success was the rational valuation of a company with good potential for growth.
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[DETAIL_TEXT] => Take a Little, And Give the Rest to Investors
The total offering amounted to $588 million. In the first day of the offering, the price for the company’s shares grew by 16% on the offer price – from $15 to $17.4. Also, Deutsche Bank, Goldman Sachs International, Morgan Stanley and Russia’s Troika Dialog investment company – joint global coordinators and joint bookrunners for the offering – exercised the full over-allotment option (10% of the basic size of the deal).
Experts named the IPO of Global Ports one of the most successful in 2011, although the price for the company’s securities was not the maximum. On the eve of the IPO, the company was estimated at $2.2-2.4 billion (the initial estimate was $2.7 billion). The estimate of the cost became worse because of a complicated market situation.
Of the $588 million made, the company will receive $100 million, and the rest will be given to its only shareholder – Transportation Investments Holding Limited (TIHL).
Global Ports Investments PLC (GPI group of companies) is one of the leading operators of container terminals in Russia. It is incorporated into N-Trans group of companies – the largest private operator in the market of transport services and infrastructure in Russia. GPI controls three Russian container terminals (Petrolesport and Mobi Dick in the Big Port of St Petersburg, Vostochnaya Stevedoring Company in the Vostochny port), two container terminals in Finland (MLT-Kotka in the port of Kotka, and MLT-Helsinki in the Vuosaari port).
GPI group of companies also incorporates the Yanino inland terminal near St Petersburg, and the largest terminal for petrochemicals handling in the Baltic Sea basin Vopak E.O.S., located in Estonia. The share of the group’s container terminals is 30% of total Russian container turnover. Vopak E.O.S. handles 28% of the total volume of fuel oil exported from the former Soviet countries.
Market Situation
In 2010, the Russian container transportation market exceeded experts’ forecasts – it recovered to pre-crisis volumes, while everyone had expected this would happen only in 2012. Nobody believed that, after the successful 2007-2008, when sea terminals were bursting with containers, and stevedores put boxes of Maersk, CMA CGM or MSC one by one for loading, and the disastrous 2009, when a lot of clients disappeared as if they had been swept away by waves, the market would come back to life so soon.
The potential for container market growth in the RF to 2013 is approximately 60%, the throughput may increase to 6.9 million 20-foot boxes, consider experts from Drewry agency (London). On average, the Russian container market grows by 18.6% every year. It is twice as much as world growth, because the level of cargo containerisation increases, and it is still low in Russia in comparison with the leading countries in the world.
According to the results of 2010, Global Ports Group became second-biggest container stevedore in the country – its terminals in the Big Port of St Petersburg (Petrolesport and Mobi Dick) and in the Vostochny port (Vostochnaya Stevedoring Company) handled 1.096 million TEUs. In the 1st quarter of 2011, however, the group of companies rose to the top of the list, as its market share amounted to 30%.
In the 1st quarter of 2011, the group’s financial results also increased: its consolidated revenue – by 60.8% year-on-year to $122.9 million, and EBITDA grew 2.5-fold to $67.3 million. Meanwhile, the group’s revenue in 2010 amounted to $ 382.4 million (+39.3% in comparison with 2009), and its EBITDA was $206.6 million (+58.3% year-on-year).
N-Trans has experience of holding two IPOs, in which the group of companies participated - those of Globaltrans and Mostotrest. In both cases, the companies issued their securities amid a so-called “low” market. Globaltrans held its IPO in the 2nd half of 2008, when the second wave of the global economic crisis overwhelmed Russia, and the SPO in 2009, when everyone else was busy trying to survive. Mostotrest held an IPO in November 2010, and analysts forecasted (the same as they did with Global Ports) that the demand for it would be low.
The EBRD Put Its Contribution
During the company’s initial public offering on the London Stock Exchange, the European Bank of Reconstruction and Development (EBRD) purchased a 2.98% shareholding in GPI.
The $70 million investment shows that the EBRD is eager to support the development of Russian infrastructure, and are a part of the strategy to support companies attracting means on international capital markets and operating mainly in the key economic sectors, which have a significant need for long-tem investments, specialists of the bank said.
After the IPO, the share of the Global Ports free float was 25% of the total number of allotted shares. Investors were offered global depositary receipts (GDRs), with one GDR representing an interest in three ordinary shares of Global Ports. The EBRD’s share in the total placement was 11.9%.
In the words of Varel Freeman, First Vice President of the EBRD, this was the first transport and infrastructure IPO from Russia and Eastern Europe since the 2008-2009 financial crisis, and its success showed the opportunities for private players to attract capital for modernisation projects aimed at increasing capacity to handle growing cargo volumes.
“Today’s IPO has in addition given the EBRD an opportunity to support the badly needed expansion in order to eliminate bottlenecks in the country’s transport system and make terminal services accessible to a larger group of customers, a development in which private terminals have a vital role to play”, Mr Freeman added.
The proceeds raised by Global Ports through this share purchase by EBRD will be used for capital investments in Global Ports’ infrastructure in Russia, including replacing older equipment with more environmentally friendly and energy-efficient versions one of the Bank’s major priorities. Energy costs (fuel, electricity and gas) have a significant impact on the price-formation of the group’s products.
What Is the Role of TransContainer?
Some analysts regard the IPO of Global Ports as its shareholders’ ambition to attract the means to purchase Russia’s largest railway container operator – TransContainer.
Last April, the Board of Directors of Russian Railways (the owner of the operator) approved the decision to sell 25% + 1 share in its daughter company, having estimated the shareholding at RUR 10.7 billion (about $370 million). Valery Reshetnikov, a Senior Vice President of RZD, said that the company intended to sell this shareholding before the autumn.
Managers of Global Ports note that “the group of companies is going to use the proceeds raised through the IPO to finance the programme of capital investments into the group’s port sector in Russia”. At the beginning of the year, the company announced its plans to invest $90 million into port development in 2011. About $57 million was spent for this purpose in 2010. Some sources in the sector believe that no IPO was needed for investments into terminals, the GPI can make them at the expense of its profit.
In the opinion of Anna Kupriyanova, an analyst at Uralsib Managing Company, “the market situation [for shares placement] is not favourable, so the shareholders must be searching for funds to buy other companies.” “Out of all possible assets, in my opinion, the purchase of TransContainer would be the best for business development, especially if we take into account Global Ports’ specialisation in the container business. Also, it would give a good synergistic effect,” said the analyst.
N-Trans will fight with FESCO (which owns a 12.5% stake in the operator and will lay claim to the controlling interest) for TransContainer. They will hardly purchase Freight One, and TransContainer is a strategic asset for the group of companies – they can find new development schemes, a source in the sector agrees with Mrs Kupriyanova.
On the contrary, Konstantin Yuminov, an analyst at Raiffeisenbank, believes there is no sense in the company participating in the auction, where 25%+1 share in TransContainer will be sold. “Neither N-Trans, nor its daughter companies (Globaltrans or Global Ports) are interested in being a minority shareholder, as they will not be able to influence the company. Also, RZD and FESCO have their shareholdings in TransContainer, and they do not expect that N-Trans will join them,” he said. In the opinion of Mr Yuminov, it is worth participating in the auction, if a 50% stake in the operator is sold.
A Qualitative Asset
“The estimation of Global Ports was quite reasonable. And there is potential. I think, the company could be estimated at $3 billion, if the market situation was better,” said one of the asset managers.
The price for GDR of Global Ports in London increased by 10% to $16.5 soon after the placement. The bookbuilding process for the IPO was completed three days before the road show. In the words of a source close to the offering, the book was oversubscribed – the cap price almost doubled and the floor price grew three-fold. The majority of the placement was purchased by western long-only funds.
According to Vladimir Dorogov, an analyst at Alfa-Bank, Global Ports held the IPO having 7.8 EV/EBITDA multiple. That of NMTP (Novorossiysk Commercial Sea Port) is 7.6. Meanwhile, similar companies from developing markets are almost 40% more expensive – 14-15 EV/EBITDA, and those from developed markets have an 11 EV/EBITDA multiple.
“Naturally, the economic situation in the world may change, but as far as now, this (Global Ports) is a very qualitative asset,” he said, supposing that the potential for its price growth is 30% of the placement price.
The company thinks that the successful placement, “shows that there is significant interest from investors in the leading infrastructure companies operating on the growing markets.”
“I think the placement was in line with the market situation – high volatility on the world markets and the beginning of the summer season, when business activity is low. Considering all this, the company had an adequate placement – without an obvious premium and with a slight discount in comparison with other similar companies,” noted Andrey Rozhkov, an analyst at Metropol Investment Financial Company.
Elena Sakhnova, an analyst at VTB Capital, shares his viewpoint. She says that the company’s placement was a success, because “it showed investors its good story.”
By Stanislav Russkov
[~DETAIL_TEXT] => Take a Little, And Give the Rest to Investors
The total offering amounted to $588 million. In the first day of the offering, the price for the company’s shares grew by 16% on the offer price – from $15 to $17.4. Also, Deutsche Bank, Goldman Sachs International, Morgan Stanley and Russia’s Troika Dialog investment company – joint global coordinators and joint bookrunners for the offering – exercised the full over-allotment option (10% of the basic size of the deal).
Experts named the IPO of Global Ports one of the most successful in 2011, although the price for the company’s securities was not the maximum. On the eve of the IPO, the company was estimated at $2.2-2.4 billion (the initial estimate was $2.7 billion). The estimate of the cost became worse because of a complicated market situation.
Of the $588 million made, the company will receive $100 million, and the rest will be given to its only shareholder – Transportation Investments Holding Limited (TIHL).
Global Ports Investments PLC (GPI group of companies) is one of the leading operators of container terminals in Russia. It is incorporated into N-Trans group of companies – the largest private operator in the market of transport services and infrastructure in Russia. GPI controls three Russian container terminals (Petrolesport and Mobi Dick in the Big Port of St Petersburg, Vostochnaya Stevedoring Company in the Vostochny port), two container terminals in Finland (MLT-Kotka in the port of Kotka, and MLT-Helsinki in the Vuosaari port).
GPI group of companies also incorporates the Yanino inland terminal near St Petersburg, and the largest terminal for petrochemicals handling in the Baltic Sea basin Vopak E.O.S., located in Estonia. The share of the group’s container terminals is 30% of total Russian container turnover. Vopak E.O.S. handles 28% of the total volume of fuel oil exported from the former Soviet countries.
Market Situation
In 2010, the Russian container transportation market exceeded experts’ forecasts – it recovered to pre-crisis volumes, while everyone had expected this would happen only in 2012. Nobody believed that, after the successful 2007-2008, when sea terminals were bursting with containers, and stevedores put boxes of Maersk, CMA CGM or MSC one by one for loading, and the disastrous 2009, when a lot of clients disappeared as if they had been swept away by waves, the market would come back to life so soon.
The potential for container market growth in the RF to 2013 is approximately 60%, the throughput may increase to 6.9 million 20-foot boxes, consider experts from Drewry agency (London). On average, the Russian container market grows by 18.6% every year. It is twice as much as world growth, because the level of cargo containerisation increases, and it is still low in Russia in comparison with the leading countries in the world.
According to the results of 2010, Global Ports Group became second-biggest container stevedore in the country – its terminals in the Big Port of St Petersburg (Petrolesport and Mobi Dick) and in the Vostochny port (Vostochnaya Stevedoring Company) handled 1.096 million TEUs. In the 1st quarter of 2011, however, the group of companies rose to the top of the list, as its market share amounted to 30%.
In the 1st quarter of 2011, the group’s financial results also increased: its consolidated revenue – by 60.8% year-on-year to $122.9 million, and EBITDA grew 2.5-fold to $67.3 million. Meanwhile, the group’s revenue in 2010 amounted to $ 382.4 million (+39.3% in comparison with 2009), and its EBITDA was $206.6 million (+58.3% year-on-year).
N-Trans has experience of holding two IPOs, in which the group of companies participated - those of Globaltrans and Mostotrest. In both cases, the companies issued their securities amid a so-called “low” market. Globaltrans held its IPO in the 2nd half of 2008, when the second wave of the global economic crisis overwhelmed Russia, and the SPO in 2009, when everyone else was busy trying to survive. Mostotrest held an IPO in November 2010, and analysts forecasted (the same as they did with Global Ports) that the demand for it would be low.
The EBRD Put Its Contribution
During the company’s initial public offering on the London Stock Exchange, the European Bank of Reconstruction and Development (EBRD) purchased a 2.98% shareholding in GPI.
The $70 million investment shows that the EBRD is eager to support the development of Russian infrastructure, and are a part of the strategy to support companies attracting means on international capital markets and operating mainly in the key economic sectors, which have a significant need for long-tem investments, specialists of the bank said.
After the IPO, the share of the Global Ports free float was 25% of the total number of allotted shares. Investors were offered global depositary receipts (GDRs), with one GDR representing an interest in three ordinary shares of Global Ports. The EBRD’s share in the total placement was 11.9%.
In the words of Varel Freeman, First Vice President of the EBRD, this was the first transport and infrastructure IPO from Russia and Eastern Europe since the 2008-2009 financial crisis, and its success showed the opportunities for private players to attract capital for modernisation projects aimed at increasing capacity to handle growing cargo volumes.
“Today’s IPO has in addition given the EBRD an opportunity to support the badly needed expansion in order to eliminate bottlenecks in the country’s transport system and make terminal services accessible to a larger group of customers, a development in which private terminals have a vital role to play”, Mr Freeman added.
The proceeds raised by Global Ports through this share purchase by EBRD will be used for capital investments in Global Ports’ infrastructure in Russia, including replacing older equipment with more environmentally friendly and energy-efficient versions one of the Bank’s major priorities. Energy costs (fuel, electricity and gas) have a significant impact on the price-formation of the group’s products.
What Is the Role of TransContainer?
Some analysts regard the IPO of Global Ports as its shareholders’ ambition to attract the means to purchase Russia’s largest railway container operator – TransContainer.
Last April, the Board of Directors of Russian Railways (the owner of the operator) approved the decision to sell 25% + 1 share in its daughter company, having estimated the shareholding at RUR 10.7 billion (about $370 million). Valery Reshetnikov, a Senior Vice President of RZD, said that the company intended to sell this shareholding before the autumn.
Managers of Global Ports note that “the group of companies is going to use the proceeds raised through the IPO to finance the programme of capital investments into the group’s port sector in Russia”. At the beginning of the year, the company announced its plans to invest $90 million into port development in 2011. About $57 million was spent for this purpose in 2010. Some sources in the sector believe that no IPO was needed for investments into terminals, the GPI can make them at the expense of its profit.
In the opinion of Anna Kupriyanova, an analyst at Uralsib Managing Company, “the market situation [for shares placement] is not favourable, so the shareholders must be searching for funds to buy other companies.” “Out of all possible assets, in my opinion, the purchase of TransContainer would be the best for business development, especially if we take into account Global Ports’ specialisation in the container business. Also, it would give a good synergistic effect,” said the analyst.
N-Trans will fight with FESCO (which owns a 12.5% stake in the operator and will lay claim to the controlling interest) for TransContainer. They will hardly purchase Freight One, and TransContainer is a strategic asset for the group of companies – they can find new development schemes, a source in the sector agrees with Mrs Kupriyanova.
On the contrary, Konstantin Yuminov, an analyst at Raiffeisenbank, believes there is no sense in the company participating in the auction, where 25%+1 share in TransContainer will be sold. “Neither N-Trans, nor its daughter companies (Globaltrans or Global Ports) are interested in being a minority shareholder, as they will not be able to influence the company. Also, RZD and FESCO have their shareholdings in TransContainer, and they do not expect that N-Trans will join them,” he said. In the opinion of Mr Yuminov, it is worth participating in the auction, if a 50% stake in the operator is sold.
A Qualitative Asset
“The estimation of Global Ports was quite reasonable. And there is potential. I think, the company could be estimated at $3 billion, if the market situation was better,” said one of the asset managers.
The price for GDR of Global Ports in London increased by 10% to $16.5 soon after the placement. The bookbuilding process for the IPO was completed three days before the road show. In the words of a source close to the offering, the book was oversubscribed – the cap price almost doubled and the floor price grew three-fold. The majority of the placement was purchased by western long-only funds.
According to Vladimir Dorogov, an analyst at Alfa-Bank, Global Ports held the IPO having 7.8 EV/EBITDA multiple. That of NMTP (Novorossiysk Commercial Sea Port) is 7.6. Meanwhile, similar companies from developing markets are almost 40% more expensive – 14-15 EV/EBITDA, and those from developed markets have an 11 EV/EBITDA multiple.
“Naturally, the economic situation in the world may change, but as far as now, this (Global Ports) is a very qualitative asset,” he said, supposing that the potential for its price growth is 30% of the placement price.
The company thinks that the successful placement, “shows that there is significant interest from investors in the leading infrastructure companies operating on the growing markets.”
“I think the placement was in line with the market situation – high volatility on the world markets and the beginning of the summer season, when business activity is low. Considering all this, the company had an adequate placement – without an obvious premium and with a slight discount in comparison with other similar companies,” noted Andrey Rozhkov, an analyst at Metropol Investment Financial Company.
Elena Sakhnova, an analyst at VTB Capital, shares his viewpoint. She says that the company’s placement was a success, because “it showed investors its good story.”
By Stanislav Russkov
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More and more often, perishables are transported in reefers instead of refrigerator and isothermal railcars. Meanwhile, transport market players frequently face different problems when they use this equipment.Array
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[DETAIL_TEXT] => There Will Hardly Be Any “Wheeled Fridges” Soon
In the Soviet era, there were 55,000 isothermal railcars for perishables transportation via the national railway network. They were purchased in accordance with a special document issued by the Gosplan (the State Planning Committee responsible for economic planning in the Soviet Union). The decision on it was made on a governmental level to supply people with high-quality foodstuffs, no matter where the products had been produced. The railcars were rather expensive, but at that time the state often solved social problems without thinking of economic feasibility. Special rolling stock was manufactured at the Dessau Plant in Germany and at Bryansk Machine Building Plant in Russia. The design of the wagons was slightly different.
Those made in Bryansk were a little bit larger in volume and had an aluminum coating; German railcars were zinc-coated. Meanwhile, the latter were better in terms of quality and performance features.
However, the economic trends changed, and popularity of door-to-door technologies caused the almost total extinction of special wagons for perishables. The existing isothermal rolling stock is getting old, their numbers are falling, and no new railcars of this type are being manufactured. Market players think that there will be no “wheeled fridges” in Russia in less than a decade.
“Refrigerator and isothermal railcars will be replaced step by step by reefers, which TransContainer started to use in 2007. Due to the transfer to container transportation of cargoes needing a special temperature, there is practically no prospect for the recommence of refrigerator and isothermal railcars in Russia. The global market of perishables railway transportation demonstrates a trend of replacing special rolling stock by refrigerated containers. Russia’s transportation market is developing in the framework of this trend as well,” say experts at IA INFOLine.
Naturally, under market economy conditions, the technology of cargo delivery in small consignments is rather popular with cargo owners. And this technology may be applied only if large-capacity refrigerated containers (or reefers) are used. Nowadays, more than 1,500 such containers and 50 specially equipped coupled railcar units are in operation on the Russian railways network. Such coupled railcar units usually belong to operators and consist of 12 electrified container flat wagons, which have sockets to plug in large-capacity reefers, and a maintenance railcar-diesel electric generating station. As a rule, the latter is located in the middle of the coupled railcar units. According to some evaluations, the volume of perishables carried in large capacity reefers doubled in 2010.
Transportation Volume Could Have Been Even Larger
These figures would have been even more significant if companies operating these facilities had not faced a number of problems. The most serious barrier for a wide circulation of large-capacity reefers is a noncompetitive tariff. Specialists at the All-Russian Railway Research Institute (VNIIZhT) calculated that RZD’s profitability from large-capacity reefers for perishables transportation is very high – from 20% to 60%. Meanwhile, this figure is just 10-14% if the cargo is carried in private isothermal rolling stock.
Experts believe that the reason for such a difference is that tariffs on freight transportation in large-capacity reefers were developed when they were just being put into operation, so the present-day formation schemes and design-specific features of the coupled railcar units used by transport and forwarding companies could not be taken into account at that time. Practice shows that the existing system of transportation tariff determination, which has complicated and awkward modifying coefficients used to calculate the transportation fees etc., provokes a lot of questions and criticism from consumers of railway services. The RF Federal Tariff Service answered consignors’ questions many times, and issued different specifications for application of the modifying coefficients system.
According to Tariff Regulation №10-01, tariffs on freight transportation in large-capacity reefers are calculated per container (it depends on the size of a container, to whom it belongs, and the power supply system). The Rules of Cargo Transportation by Railway do not contain a ban on incomplete dispatch of large-capacity reefers when they are transported in rented railcars. Thus, a cargo owner may transport not two but only one 20-foot reefer on a long-base container wagon and the transportation fee will be half in this case. Meanwhile, the main price-forming factor, determining RZD’s expenditure on infrastructure and traction, is not complete loading of every railcar, but the number of wagons transported and their length.
There Is a Way Out
Taking all these peculiarities into account, market players think tariffs should be calculated per wagon in accordance with its type (length) and complete/incomplete loading. This will minimise transport expenses, because an operator will strive to use a railcar’s capacity more efficiently and use the most suitable types of flat wagons. A cargo owner will think carefully before choosing an operator, as transportation of large-capacity reefers on completely loaded flat wagons will mean a smaller transportation tariff per container.
Moreover, the current tariff differentiation depending on the number of flat wagons in a coupled railcar unit is not quite correct, because transport expenditure of railways is based on the unit’s length and weight, but not on the number of wagons in it. In the opinion of specialists, this problem may disappear if tariffs per wagon were put into operation, because they would determine the transportation fee for each wagon in a coupled railcar unit (container flat wagons, railcar-diesel electric generating station, and others).
This approach will help to simplify the system of tariffs on transportation of cargo in large-capacity reefers – there will be a smaller number of price schemes and modifying coefficients set in accordance with the type of transportation and to whom the elements of the coupled railcar units belong to.
Application of the basic tariffs per wagon for large-capacity reefers does not hinder calculation of the transportation fee per reefer. For it, the sum of tariffs per wagon for a coupled railcar unit should be divided by the total number of large-capacity reefers on the unit. Specialists at VNIIZhT, developing solutions for tariff problems, stick to this approach of making the system of tariffs on freight transportation in large-capacity reefers.
According to the legislation, any consumers of railway services may give the RF Federal Tariff Service their suggestions about the revisions to cargo transportation tariffs. And operators working in this sector did this several times. In spite of this, no changes have taken place in the acting tariff system. Experts think that its drawbacks may be removed in the framework of the declared programme of tariff liberalisation in railway transport.
Under Pressure from Rosselkhoznadzor
Another problem arising in organisation of perishables railway transportation is the issue of interaction with the Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor). Any inaccuracy and even slight mistakes made when filling in a veterinary certificate at the station of departure cause additional delays at the receiving station when transportation documents are formalised. Companies say that neither client nor forwarder can influence the situation. “A representative of Rosselkhoznadzor at the receiving station establishes the fact that documents were filled in improperly, and then unloading is blocked.
And he makes no efforts to communicate with his colleague from the station of departure or higher authorities,” complain representatives of Reftransportation Agency. Forwarders at station of departure and destination have to persuade the representatives of Rosselkhoznadzor to communicate with each other to resolve the issue. Often, this means negotiations between Moscow and Vladivostok.
More than that, market players doubt that representatives of Rosselkhoznadzor have the right to inspect perishables in reefers during transit transportation. According to normative documents, transit cargo should not be checked at interim stations. Unfortunately, representatives of Rosselkhoznadzor often delay transportation, motivated by Article 7 of The Rules of Railway Transportation of Cargoes under the Control of Rosselkhoznadzor. The document runs that “a representative of Rosselkhoznadzor inspects cargo when it is loaded, unloaded and in places where it is reloaded.” Representatives of the state bodies have their own version of the “cargo reloading” term.
For example, if a properly sealed refrigerated container is removed from a flat wagon onto a terminal’s plot to await loading onto a road vehicle, representatives of Rosselkhoznadzor consider it a reloading and think that a cargo inspection is needed.
What’s Old Is New Again
While some market players are promoting a more advanced method of transporting perishables, Refservice (a subsidiary of RZD) is making ambitious plans to break even as soon as in 2012. The list of measures to be taken by the company to emerge from the crisis envisages enlargement of the complex and the total cost of services, and an increase of its share in the perishables railway transportation market (it was 27% in 2010). Simultaneously, the company plans to optimise the structure of its wagon park and improve labour efficiency to cut costs.
Refservice is going to improve its competitiveness by means of research and development activities and by choosing the most prospective models for further renewal of its rolling stock park. So far, the operator has suffered a net loss. Last year it was RUR 541.6 million, while the company’s revenue was RUR 1.9 billion. “The company’s 2010 results show that the major forecasted risks took place,” said a representative of Refservice. In particular, the decrease in the demand for railway transportation of LNG was one such risk.
“One of the reasons for the decline in import volume was the ban on chicken meat imports from the USA, which was in force in January-August 2010. Also, the RF Government reduced quotas on imports of poultry meat by 18% in 2010 to 780,000 tons. As for domestic transportation, a low level of salmon fishing was the reason for the cut in demand for refsections and their accumulation in the Far East region,” he explained.
Also, specialists at Refservice point at the 6% decline in beer volume in Russia because of the growth in excise taxes, and brewers’ transferral to road transport in the regions. According to the company’s information, in the past three years the share of beer transportation in refrigerated railcars fell from 35% to 21%. However, analysts say that another reason for it was the liberalisation of standards for perishables transportation in the RF. This allowed breweries and juice-making companies to use alternative rolling stock to transport their production.
In the opinion of experts, development of foodstuffs (semi-finished products, meat) manufacturing in the regions and construction of plants producing different beverages in different parts of Russia negatively impact perishables railway transportation and makes road transport more popular among clients.
By Ksenia Mikhailova
[~DETAIL_TEXT] => There Will Hardly Be Any “Wheeled Fridges” Soon
In the Soviet era, there were 55,000 isothermal railcars for perishables transportation via the national railway network. They were purchased in accordance with a special document issued by the Gosplan (the State Planning Committee responsible for economic planning in the Soviet Union). The decision on it was made on a governmental level to supply people with high-quality foodstuffs, no matter where the products had been produced. The railcars were rather expensive, but at that time the state often solved social problems without thinking of economic feasibility. Special rolling stock was manufactured at the Dessau Plant in Germany and at Bryansk Machine Building Plant in Russia. The design of the wagons was slightly different.
Those made in Bryansk were a little bit larger in volume and had an aluminum coating; German railcars were zinc-coated. Meanwhile, the latter were better in terms of quality and performance features.
However, the economic trends changed, and popularity of door-to-door technologies caused the almost total extinction of special wagons for perishables. The existing isothermal rolling stock is getting old, their numbers are falling, and no new railcars of this type are being manufactured. Market players think that there will be no “wheeled fridges” in Russia in less than a decade.
“Refrigerator and isothermal railcars will be replaced step by step by reefers, which TransContainer started to use in 2007. Due to the transfer to container transportation of cargoes needing a special temperature, there is practically no prospect for the recommence of refrigerator and isothermal railcars in Russia. The global market of perishables railway transportation demonstrates a trend of replacing special rolling stock by refrigerated containers. Russia’s transportation market is developing in the framework of this trend as well,” say experts at IA INFOLine.
Naturally, under market economy conditions, the technology of cargo delivery in small consignments is rather popular with cargo owners. And this technology may be applied only if large-capacity refrigerated containers (or reefers) are used. Nowadays, more than 1,500 such containers and 50 specially equipped coupled railcar units are in operation on the Russian railways network. Such coupled railcar units usually belong to operators and consist of 12 electrified container flat wagons, which have sockets to plug in large-capacity reefers, and a maintenance railcar-diesel electric generating station. As a rule, the latter is located in the middle of the coupled railcar units. According to some evaluations, the volume of perishables carried in large capacity reefers doubled in 2010.
Transportation Volume Could Have Been Even Larger
These figures would have been even more significant if companies operating these facilities had not faced a number of problems. The most serious barrier for a wide circulation of large-capacity reefers is a noncompetitive tariff. Specialists at the All-Russian Railway Research Institute (VNIIZhT) calculated that RZD’s profitability from large-capacity reefers for perishables transportation is very high – from 20% to 60%. Meanwhile, this figure is just 10-14% if the cargo is carried in private isothermal rolling stock.
Experts believe that the reason for such a difference is that tariffs on freight transportation in large-capacity reefers were developed when they were just being put into operation, so the present-day formation schemes and design-specific features of the coupled railcar units used by transport and forwarding companies could not be taken into account at that time. Practice shows that the existing system of transportation tariff determination, which has complicated and awkward modifying coefficients used to calculate the transportation fees etc., provokes a lot of questions and criticism from consumers of railway services. The RF Federal Tariff Service answered consignors’ questions many times, and issued different specifications for application of the modifying coefficients system.
According to Tariff Regulation №10-01, tariffs on freight transportation in large-capacity reefers are calculated per container (it depends on the size of a container, to whom it belongs, and the power supply system). The Rules of Cargo Transportation by Railway do not contain a ban on incomplete dispatch of large-capacity reefers when they are transported in rented railcars. Thus, a cargo owner may transport not two but only one 20-foot reefer on a long-base container wagon and the transportation fee will be half in this case. Meanwhile, the main price-forming factor, determining RZD’s expenditure on infrastructure and traction, is not complete loading of every railcar, but the number of wagons transported and their length.
There Is a Way Out
Taking all these peculiarities into account, market players think tariffs should be calculated per wagon in accordance with its type (length) and complete/incomplete loading. This will minimise transport expenses, because an operator will strive to use a railcar’s capacity more efficiently and use the most suitable types of flat wagons. A cargo owner will think carefully before choosing an operator, as transportation of large-capacity reefers on completely loaded flat wagons will mean a smaller transportation tariff per container.
Moreover, the current tariff differentiation depending on the number of flat wagons in a coupled railcar unit is not quite correct, because transport expenditure of railways is based on the unit’s length and weight, but not on the number of wagons in it. In the opinion of specialists, this problem may disappear if tariffs per wagon were put into operation, because they would determine the transportation fee for each wagon in a coupled railcar unit (container flat wagons, railcar-diesel electric generating station, and others).
This approach will help to simplify the system of tariffs on transportation of cargo in large-capacity reefers – there will be a smaller number of price schemes and modifying coefficients set in accordance with the type of transportation and to whom the elements of the coupled railcar units belong to.
Application of the basic tariffs per wagon for large-capacity reefers does not hinder calculation of the transportation fee per reefer. For it, the sum of tariffs per wagon for a coupled railcar unit should be divided by the total number of large-capacity reefers on the unit. Specialists at VNIIZhT, developing solutions for tariff problems, stick to this approach of making the system of tariffs on freight transportation in large-capacity reefers.
According to the legislation, any consumers of railway services may give the RF Federal Tariff Service their suggestions about the revisions to cargo transportation tariffs. And operators working in this sector did this several times. In spite of this, no changes have taken place in the acting tariff system. Experts think that its drawbacks may be removed in the framework of the declared programme of tariff liberalisation in railway transport.
Under Pressure from Rosselkhoznadzor
Another problem arising in organisation of perishables railway transportation is the issue of interaction with the Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor). Any inaccuracy and even slight mistakes made when filling in a veterinary certificate at the station of departure cause additional delays at the receiving station when transportation documents are formalised. Companies say that neither client nor forwarder can influence the situation. “A representative of Rosselkhoznadzor at the receiving station establishes the fact that documents were filled in improperly, and then unloading is blocked.
And he makes no efforts to communicate with his colleague from the station of departure or higher authorities,” complain representatives of Reftransportation Agency. Forwarders at station of departure and destination have to persuade the representatives of Rosselkhoznadzor to communicate with each other to resolve the issue. Often, this means negotiations between Moscow and Vladivostok.
More than that, market players doubt that representatives of Rosselkhoznadzor have the right to inspect perishables in reefers during transit transportation. According to normative documents, transit cargo should not be checked at interim stations. Unfortunately, representatives of Rosselkhoznadzor often delay transportation, motivated by Article 7 of The Rules of Railway Transportation of Cargoes under the Control of Rosselkhoznadzor. The document runs that “a representative of Rosselkhoznadzor inspects cargo when it is loaded, unloaded and in places where it is reloaded.” Representatives of the state bodies have their own version of the “cargo reloading” term.
For example, if a properly sealed refrigerated container is removed from a flat wagon onto a terminal’s plot to await loading onto a road vehicle, representatives of Rosselkhoznadzor consider it a reloading and think that a cargo inspection is needed.
What’s Old Is New Again
While some market players are promoting a more advanced method of transporting perishables, Refservice (a subsidiary of RZD) is making ambitious plans to break even as soon as in 2012. The list of measures to be taken by the company to emerge from the crisis envisages enlargement of the complex and the total cost of services, and an increase of its share in the perishables railway transportation market (it was 27% in 2010). Simultaneously, the company plans to optimise the structure of its wagon park and improve labour efficiency to cut costs.
Refservice is going to improve its competitiveness by means of research and development activities and by choosing the most prospective models for further renewal of its rolling stock park. So far, the operator has suffered a net loss. Last year it was RUR 541.6 million, while the company’s revenue was RUR 1.9 billion. “The company’s 2010 results show that the major forecasted risks took place,” said a representative of Refservice. In particular, the decrease in the demand for railway transportation of LNG was one such risk.
“One of the reasons for the decline in import volume was the ban on chicken meat imports from the USA, which was in force in January-August 2010. Also, the RF Government reduced quotas on imports of poultry meat by 18% in 2010 to 780,000 tons. As for domestic transportation, a low level of salmon fishing was the reason for the cut in demand for refsections and their accumulation in the Far East region,” he explained.
Also, specialists at Refservice point at the 6% decline in beer volume in Russia because of the growth in excise taxes, and brewers’ transferral to road transport in the regions. According to the company’s information, in the past three years the share of beer transportation in refrigerated railcars fell from 35% to 21%. However, analysts say that another reason for it was the liberalisation of standards for perishables transportation in the RF. This allowed breweries and juice-making companies to use alternative rolling stock to transport their production.
In the opinion of experts, development of foodstuffs (semi-finished products, meat) manufacturing in the regions and construction of plants producing different beverages in different parts of Russia negatively impact perishables railway transportation and makes road transport more popular among clients.
By Ksenia Mikhailova
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Experts think that only the will of the sector regulators may help to solve the problems.
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Experts think that only the will of the sector regulators may help to solve the problems.
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[DETAIL_TEXT] => There Will Hardly Be Any “Wheeled Fridges” Soon
In the Soviet era, there were 55,000 isothermal railcars for perishables transportation via the national railway network. They were purchased in accordance with a special document issued by the Gosplan (the State Planning Committee responsible for economic planning in the Soviet Union). The decision on it was made on a governmental level to supply people with high-quality foodstuffs, no matter where the products had been produced. The railcars were rather expensive, but at that time the state often solved social problems without thinking of economic feasibility. Special rolling stock was manufactured at the Dessau Plant in Germany and at Bryansk Machine Building Plant in Russia. The design of the wagons was slightly different.
Those made in Bryansk were a little bit larger in volume and had an aluminum coating; German railcars were zinc-coated. Meanwhile, the latter were better in terms of quality and performance features.
However, the economic trends changed, and popularity of door-to-door technologies caused the almost total extinction of special wagons for perishables. The existing isothermal rolling stock is getting old, their numbers are falling, and no new railcars of this type are being manufactured. Market players think that there will be no “wheeled fridges” in Russia in less than a decade.
“Refrigerator and isothermal railcars will be replaced step by step by reefers, which TransContainer started to use in 2007. Due to the transfer to container transportation of cargoes needing a special temperature, there is practically no prospect for the recommence of refrigerator and isothermal railcars in Russia. The global market of perishables railway transportation demonstrates a trend of replacing special rolling stock by refrigerated containers. Russia’s transportation market is developing in the framework of this trend as well,” say experts at IA INFOLine.
Naturally, under market economy conditions, the technology of cargo delivery in small consignments is rather popular with cargo owners. And this technology may be applied only if large-capacity refrigerated containers (or reefers) are used. Nowadays, more than 1,500 such containers and 50 specially equipped coupled railcar units are in operation on the Russian railways network. Such coupled railcar units usually belong to operators and consist of 12 electrified container flat wagons, which have sockets to plug in large-capacity reefers, and a maintenance railcar-diesel electric generating station. As a rule, the latter is located in the middle of the coupled railcar units. According to some evaluations, the volume of perishables carried in large capacity reefers doubled in 2010.
Transportation Volume Could Have Been Even Larger
These figures would have been even more significant if companies operating these facilities had not faced a number of problems. The most serious barrier for a wide circulation of large-capacity reefers is a noncompetitive tariff. Specialists at the All-Russian Railway Research Institute (VNIIZhT) calculated that RZD’s profitability from large-capacity reefers for perishables transportation is very high – from 20% to 60%. Meanwhile, this figure is just 10-14% if the cargo is carried in private isothermal rolling stock.
Experts believe that the reason for such a difference is that tariffs on freight transportation in large-capacity reefers were developed when they were just being put into operation, so the present-day formation schemes and design-specific features of the coupled railcar units used by transport and forwarding companies could not be taken into account at that time. Practice shows that the existing system of transportation tariff determination, which has complicated and awkward modifying coefficients used to calculate the transportation fees etc., provokes a lot of questions and criticism from consumers of railway services. The RF Federal Tariff Service answered consignors’ questions many times, and issued different specifications for application of the modifying coefficients system.
According to Tariff Regulation №10-01, tariffs on freight transportation in large-capacity reefers are calculated per container (it depends on the size of a container, to whom it belongs, and the power supply system). The Rules of Cargo Transportation by Railway do not contain a ban on incomplete dispatch of large-capacity reefers when they are transported in rented railcars. Thus, a cargo owner may transport not two but only one 20-foot reefer on a long-base container wagon and the transportation fee will be half in this case. Meanwhile, the main price-forming factor, determining RZD’s expenditure on infrastructure and traction, is not complete loading of every railcar, but the number of wagons transported and their length.
There Is a Way Out
Taking all these peculiarities into account, market players think tariffs should be calculated per wagon in accordance with its type (length) and complete/incomplete loading. This will minimise transport expenses, because an operator will strive to use a railcar’s capacity more efficiently and use the most suitable types of flat wagons. A cargo owner will think carefully before choosing an operator, as transportation of large-capacity reefers on completely loaded flat wagons will mean a smaller transportation tariff per container.
Moreover, the current tariff differentiation depending on the number of flat wagons in a coupled railcar unit is not quite correct, because transport expenditure of railways is based on the unit’s length and weight, but not on the number of wagons in it. In the opinion of specialists, this problem may disappear if tariffs per wagon were put into operation, because they would determine the transportation fee for each wagon in a coupled railcar unit (container flat wagons, railcar-diesel electric generating station, and others).
This approach will help to simplify the system of tariffs on transportation of cargo in large-capacity reefers – there will be a smaller number of price schemes and modifying coefficients set in accordance with the type of transportation and to whom the elements of the coupled railcar units belong to.
Application of the basic tariffs per wagon for large-capacity reefers does not hinder calculation of the transportation fee per reefer. For it, the sum of tariffs per wagon for a coupled railcar unit should be divided by the total number of large-capacity reefers on the unit. Specialists at VNIIZhT, developing solutions for tariff problems, stick to this approach of making the system of tariffs on freight transportation in large-capacity reefers.
According to the legislation, any consumers of railway services may give the RF Federal Tariff Service their suggestions about the revisions to cargo transportation tariffs. And operators working in this sector did this several times. In spite of this, no changes have taken place in the acting tariff system. Experts think that its drawbacks may be removed in the framework of the declared programme of tariff liberalisation in railway transport.
Under Pressure from Rosselkhoznadzor
Another problem arising in organisation of perishables railway transportation is the issue of interaction with the Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor). Any inaccuracy and even slight mistakes made when filling in a veterinary certificate at the station of departure cause additional delays at the receiving station when transportation documents are formalised. Companies say that neither client nor forwarder can influence the situation. “A representative of Rosselkhoznadzor at the receiving station establishes the fact that documents were filled in improperly, and then unloading is blocked.
And he makes no efforts to communicate with his colleague from the station of departure or higher authorities,” complain representatives of Reftransportation Agency. Forwarders at station of departure and destination have to persuade the representatives of Rosselkhoznadzor to communicate with each other to resolve the issue. Often, this means negotiations between Moscow and Vladivostok.
More than that, market players doubt that representatives of Rosselkhoznadzor have the right to inspect perishables in reefers during transit transportation. According to normative documents, transit cargo should not be checked at interim stations. Unfortunately, representatives of Rosselkhoznadzor often delay transportation, motivated by Article 7 of The Rules of Railway Transportation of Cargoes under the Control of Rosselkhoznadzor. The document runs that “a representative of Rosselkhoznadzor inspects cargo when it is loaded, unloaded and in places where it is reloaded.” Representatives of the state bodies have their own version of the “cargo reloading” term.
For example, if a properly sealed refrigerated container is removed from a flat wagon onto a terminal’s plot to await loading onto a road vehicle, representatives of Rosselkhoznadzor consider it a reloading and think that a cargo inspection is needed.
What’s Old Is New Again
While some market players are promoting a more advanced method of transporting perishables, Refservice (a subsidiary of RZD) is making ambitious plans to break even as soon as in 2012. The list of measures to be taken by the company to emerge from the crisis envisages enlargement of the complex and the total cost of services, and an increase of its share in the perishables railway transportation market (it was 27% in 2010). Simultaneously, the company plans to optimise the structure of its wagon park and improve labour efficiency to cut costs.
Refservice is going to improve its competitiveness by means of research and development activities and by choosing the most prospective models for further renewal of its rolling stock park. So far, the operator has suffered a net loss. Last year it was RUR 541.6 million, while the company’s revenue was RUR 1.9 billion. “The company’s 2010 results show that the major forecasted risks took place,” said a representative of Refservice. In particular, the decrease in the demand for railway transportation of LNG was one such risk.
“One of the reasons for the decline in import volume was the ban on chicken meat imports from the USA, which was in force in January-August 2010. Also, the RF Government reduced quotas on imports of poultry meat by 18% in 2010 to 780,000 tons. As for domestic transportation, a low level of salmon fishing was the reason for the cut in demand for refsections and their accumulation in the Far East region,” he explained.
Also, specialists at Refservice point at the 6% decline in beer volume in Russia because of the growth in excise taxes, and brewers’ transferral to road transport in the regions. According to the company’s information, in the past three years the share of beer transportation in refrigerated railcars fell from 35% to 21%. However, analysts say that another reason for it was the liberalisation of standards for perishables transportation in the RF. This allowed breweries and juice-making companies to use alternative rolling stock to transport their production.
In the opinion of experts, development of foodstuffs (semi-finished products, meat) manufacturing in the regions and construction of plants producing different beverages in different parts of Russia negatively impact perishables railway transportation and makes road transport more popular among clients.
By Ksenia Mikhailova
[~DETAIL_TEXT] => There Will Hardly Be Any “Wheeled Fridges” Soon
In the Soviet era, there were 55,000 isothermal railcars for perishables transportation via the national railway network. They were purchased in accordance with a special document issued by the Gosplan (the State Planning Committee responsible for economic planning in the Soviet Union). The decision on it was made on a governmental level to supply people with high-quality foodstuffs, no matter where the products had been produced. The railcars were rather expensive, but at that time the state often solved social problems without thinking of economic feasibility. Special rolling stock was manufactured at the Dessau Plant in Germany and at Bryansk Machine Building Plant in Russia. The design of the wagons was slightly different.
Those made in Bryansk were a little bit larger in volume and had an aluminum coating; German railcars were zinc-coated. Meanwhile, the latter were better in terms of quality and performance features.
However, the economic trends changed, and popularity of door-to-door technologies caused the almost total extinction of special wagons for perishables. The existing isothermal rolling stock is getting old, their numbers are falling, and no new railcars of this type are being manufactured. Market players think that there will be no “wheeled fridges” in Russia in less than a decade.
“Refrigerator and isothermal railcars will be replaced step by step by reefers, which TransContainer started to use in 2007. Due to the transfer to container transportation of cargoes needing a special temperature, there is practically no prospect for the recommence of refrigerator and isothermal railcars in Russia. The global market of perishables railway transportation demonstrates a trend of replacing special rolling stock by refrigerated containers. Russia’s transportation market is developing in the framework of this trend as well,” say experts at IA INFOLine.
Naturally, under market economy conditions, the technology of cargo delivery in small consignments is rather popular with cargo owners. And this technology may be applied only if large-capacity refrigerated containers (or reefers) are used. Nowadays, more than 1,500 such containers and 50 specially equipped coupled railcar units are in operation on the Russian railways network. Such coupled railcar units usually belong to operators and consist of 12 electrified container flat wagons, which have sockets to plug in large-capacity reefers, and a maintenance railcar-diesel electric generating station. As a rule, the latter is located in the middle of the coupled railcar units. According to some evaluations, the volume of perishables carried in large capacity reefers doubled in 2010.
Transportation Volume Could Have Been Even Larger
These figures would have been even more significant if companies operating these facilities had not faced a number of problems. The most serious barrier for a wide circulation of large-capacity reefers is a noncompetitive tariff. Specialists at the All-Russian Railway Research Institute (VNIIZhT) calculated that RZD’s profitability from large-capacity reefers for perishables transportation is very high – from 20% to 60%. Meanwhile, this figure is just 10-14% if the cargo is carried in private isothermal rolling stock.
Experts believe that the reason for such a difference is that tariffs on freight transportation in large-capacity reefers were developed when they were just being put into operation, so the present-day formation schemes and design-specific features of the coupled railcar units used by transport and forwarding companies could not be taken into account at that time. Practice shows that the existing system of transportation tariff determination, which has complicated and awkward modifying coefficients used to calculate the transportation fees etc., provokes a lot of questions and criticism from consumers of railway services. The RF Federal Tariff Service answered consignors’ questions many times, and issued different specifications for application of the modifying coefficients system.
According to Tariff Regulation №10-01, tariffs on freight transportation in large-capacity reefers are calculated per container (it depends on the size of a container, to whom it belongs, and the power supply system). The Rules of Cargo Transportation by Railway do not contain a ban on incomplete dispatch of large-capacity reefers when they are transported in rented railcars. Thus, a cargo owner may transport not two but only one 20-foot reefer on a long-base container wagon and the transportation fee will be half in this case. Meanwhile, the main price-forming factor, determining RZD’s expenditure on infrastructure and traction, is not complete loading of every railcar, but the number of wagons transported and their length.
There Is a Way Out
Taking all these peculiarities into account, market players think tariffs should be calculated per wagon in accordance with its type (length) and complete/incomplete loading. This will minimise transport expenses, because an operator will strive to use a railcar’s capacity more efficiently and use the most suitable types of flat wagons. A cargo owner will think carefully before choosing an operator, as transportation of large-capacity reefers on completely loaded flat wagons will mean a smaller transportation tariff per container.
Moreover, the current tariff differentiation depending on the number of flat wagons in a coupled railcar unit is not quite correct, because transport expenditure of railways is based on the unit’s length and weight, but not on the number of wagons in it. In the opinion of specialists, this problem may disappear if tariffs per wagon were put into operation, because they would determine the transportation fee for each wagon in a coupled railcar unit (container flat wagons, railcar-diesel electric generating station, and others).
This approach will help to simplify the system of tariffs on transportation of cargo in large-capacity reefers – there will be a smaller number of price schemes and modifying coefficients set in accordance with the type of transportation and to whom the elements of the coupled railcar units belong to.
Application of the basic tariffs per wagon for large-capacity reefers does not hinder calculation of the transportation fee per reefer. For it, the sum of tariffs per wagon for a coupled railcar unit should be divided by the total number of large-capacity reefers on the unit. Specialists at VNIIZhT, developing solutions for tariff problems, stick to this approach of making the system of tariffs on freight transportation in large-capacity reefers.
According to the legislation, any consumers of railway services may give the RF Federal Tariff Service their suggestions about the revisions to cargo transportation tariffs. And operators working in this sector did this several times. In spite of this, no changes have taken place in the acting tariff system. Experts think that its drawbacks may be removed in the framework of the declared programme of tariff liberalisation in railway transport.
Under Pressure from Rosselkhoznadzor
Another problem arising in organisation of perishables railway transportation is the issue of interaction with the Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor). Any inaccuracy and even slight mistakes made when filling in a veterinary certificate at the station of departure cause additional delays at the receiving station when transportation documents are formalised. Companies say that neither client nor forwarder can influence the situation. “A representative of Rosselkhoznadzor at the receiving station establishes the fact that documents were filled in improperly, and then unloading is blocked.
And he makes no efforts to communicate with his colleague from the station of departure or higher authorities,” complain representatives of Reftransportation Agency. Forwarders at station of departure and destination have to persuade the representatives of Rosselkhoznadzor to communicate with each other to resolve the issue. Often, this means negotiations between Moscow and Vladivostok.
More than that, market players doubt that representatives of Rosselkhoznadzor have the right to inspect perishables in reefers during transit transportation. According to normative documents, transit cargo should not be checked at interim stations. Unfortunately, representatives of Rosselkhoznadzor often delay transportation, motivated by Article 7 of The Rules of Railway Transportation of Cargoes under the Control of Rosselkhoznadzor. The document runs that “a representative of Rosselkhoznadzor inspects cargo when it is loaded, unloaded and in places where it is reloaded.” Representatives of the state bodies have their own version of the “cargo reloading” term.
For example, if a properly sealed refrigerated container is removed from a flat wagon onto a terminal’s plot to await loading onto a road vehicle, representatives of Rosselkhoznadzor consider it a reloading and think that a cargo inspection is needed.
What’s Old Is New Again
While some market players are promoting a more advanced method of transporting perishables, Refservice (a subsidiary of RZD) is making ambitious plans to break even as soon as in 2012. The list of measures to be taken by the company to emerge from the crisis envisages enlargement of the complex and the total cost of services, and an increase of its share in the perishables railway transportation market (it was 27% in 2010). Simultaneously, the company plans to optimise the structure of its wagon park and improve labour efficiency to cut costs.
Refservice is going to improve its competitiveness by means of research and development activities and by choosing the most prospective models for further renewal of its rolling stock park. So far, the operator has suffered a net loss. Last year it was RUR 541.6 million, while the company’s revenue was RUR 1.9 billion. “The company’s 2010 results show that the major forecasted risks took place,” said a representative of Refservice. In particular, the decrease in the demand for railway transportation of LNG was one such risk.
“One of the reasons for the decline in import volume was the ban on chicken meat imports from the USA, which was in force in January-August 2010. Also, the RF Government reduced quotas on imports of poultry meat by 18% in 2010 to 780,000 tons. As for domestic transportation, a low level of salmon fishing was the reason for the cut in demand for refsections and their accumulation in the Far East region,” he explained.
Also, specialists at Refservice point at the 6% decline in beer volume in Russia because of the growth in excise taxes, and brewers’ transferral to road transport in the regions. According to the company’s information, in the past three years the share of beer transportation in refrigerated railcars fell from 35% to 21%. However, analysts say that another reason for it was the liberalisation of standards for perishables transportation in the RF. This allowed breweries and juice-making companies to use alternative rolling stock to transport their production.
In the opinion of experts, development of foodstuffs (semi-finished products, meat) manufacturing in the regions and construction of plants producing different beverages in different parts of Russia negatively impact perishables railway transportation and makes road transport more popular among clients.
By Ksenia Mikhailova
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For the first time, Russian and Latvian specialists are developing together a large railway project – the launch of a fast passenger line between Moscow and Riga. Born in December 2010, during the official visit of the Latvian delegation to Moscow, the idea will soon be carried out in practice.Array
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[DETAIL_TEXT] => To Create a Line or to Renovate?
Last December, Dmitry Medvedev, the Russian President, and Valdis Zatlers, now ex-president of Latvia, announced their intention to launch a passenger railway line connecting Riga and Moscow. Thus, it is planned to open a new line connecting the capitals of the two countries by 2018, when the FIFA World Cup is held in Russia.
In April 2011, at the meeting of Transport Ministers in Riga, it was announced that work had started on the project. Igor Levitin, Russia’s Transport Minister, emphasised that this project wasn’t political, but economic; and private investments might be attracted to realise it. As an example of such cooperation, Mr Levitin mentioned the successful experience of a public-private partnership (PPP) used to launch a passenger line connecting Helsinki and St Petersburg.
In June 2011, at the 5th meeting of the Russian-Latvian Intergovernmental Commission for Economic, Research and Engineering, Humanitarian and Cultural Cooperation in Liepaja, the parties agreed to present economic justification for the project and variants of the launch of railway communication on this route.
Specialists are actively discussing two solutions – either to build a new track parallel to the existing one, or to modernise and reconstruct the acting line with its electrification. According to Aja Pochi, Head of Project Management Department at Latvijas Dzelzcels (LDz), the parties are now examining the technical and other characteristics of the future line, and calculating the cost of a new railway corridor.
It is clear that construction of a special fast railway in Latvia, where trains could run at a speed of 200 kph from Riga to Moscow and the travel time could be 4-6 hours, is not a realistic project. Specialists assess the solution envisaging construction of the new line, electrification, and rolling stock at €5 billion, and this sum can hardly be found in the country now. (In Latvia, the total expenditure of the fixed budget is 3.3 billion lats or €4.7 billion).
A more realistic project is modernisation of the existing single-track line to provide speed of more than 100 kph instead of the present-day 70-80 kph in some sectors. Its cost is up to €2 billion. The travel time will fall from 17.5 hours to 11 hours. (By the way, if customs and border checks are optimised as was done on the Finnish-Russian line, where controls are carried out on the way, several more hours may be saved.)
Artis Kampars, the Latvian Minister of Economy and a co-chairman of the Intergovernmental Commission, said recently that the working groups had been commissioned to examine both variants.
Anyway, the question of investments remains open. Traditionally, when planning large infrastructure projects, Latvia stakes a claim on European funds. Meanwhile, the EU was less than enthusiastic about the Riga-Moscow train launch, and hinted that it was not ready to give the project financial support.
It is difficult to discuss now the volume of money and work to be carried out by the Russian party. The total length of the Riga-Moscow line is 922 km. Of that, 282 km is on Latvian territory, and the rest, 639 km, is in Russia’s area.
Specialists Stand for Modernisation
“If we consider reconstruction of the existing tracks to increase the speed to 100-120 kph, serious technical work will be needed there, including electrification, replacement of the railway profile, straightening of some sectors of the mainline, because a train may pick-up only on straight-line segments,” said Mrs Pocha. She added that the final report on the Latvian rail line’s electrification would be made soon. At present, there are 80 km of power lines on the Riga-Aizkraukle section; another 200 km long section needs electrification. In her words, construction is possible in phases, and first of all it will be realised on the Zilupe-Rezekne-Krustpils section, the stations of which lie not far from the Russian border.
In the opinion of Vyacheslav Rybkin, CEO of Lengiprotrans – OJSC for research and design of transport construction objects, modernisation seems to be the better variant, if the current passenger and freight flows in Latvia are considered. According to technical and economic calculations made by the Economy and Transport Development Institute (100% subsidiary of RZD), approximately 20,000 passengers per month will use this line in 2018 during the FIFA World Cup. “We could speak of a special line if the travel time was less than three hours. In this case, the train could compete with road transport,” said Mr Rybkin. Also, a special rail line needs serious investment, which usually isn’t paid back, whether they are state investments, private ones or PPP.
Guntar Yanson, Head of the Planning Department at LDz, shares this viewpoint. “If passengers have to go by train more than four hours, air transport wins.” Consequently, the decrease in travel time from 17.5 to 11 hours will not be very important.
As the Head of Lengiprotrans said, the project of the Riga-Moscow fast train is interesting and efficient in prospect. With such trains, the mobility of the population increases, and adjacent economy sectors are involved in this business. The cost of the land, where such infrastructure is built, grows. Moreover, electrified railway has a minimum impact on the environment.
At Full Capacity
In summer, there are two pairs of passenger trains on the Riga-Moscow line daily, and only one pair in winter. The rest of the time, cargo trains run there. Since the line has no second track on the larger part of its Latvian section, reconstruction of the existing railway (the second variant of the project) envisages stage-by-stage expensive electrification and construction of the second track as well. Double-track railway in the East-West corridor in Latvia is only on the Riga-Skrivery section. A 52 km long double-track railway is being built between Skrivery and Krustpils.
The remaining 200 km is a single track. That is why the carrying capacity of the line is almost exhausted. According to a source in LDz, realisation of the fast passenger train project and existing tracks modernisation, which envisages construction of the line, is to the enterprise’s advantage.
The decision must be taken anyway – the carrying capacity of the East-West corridor in Latvia is almost exhausted, while the cargo flows are growing. On average, about 50 million tons of cargo is transported via the Latvian mainline per annum. Transportation volumes in January-May 2011 increased by 27% compared with the same period the previous year. And Russia remains one of its major partners. The share of Russian cargo in the total railway transportation volume is 55%; that of Byelorussian is 35%, of which 17% originates from Russia.
Experts suppose that Russian cargo will not leave Latvia; rather, its volume will increase. Obviously, the country is ready to invest to strengthen the transit corridor – the lines from Latvian-Russian and Latvian-Byelorussian borders to the largest ports in the country – Riga and Ventspils. In the near future, the railway’s carrying capacity is to grow by 20% due to construction of second tracks on some sections of the railway, traffic optimisation, and implementation of up-to-date technologies to control cargo transportation. As Eric Shmuksts, a member of the Board of LDz, told us, these measures will allow transportation of up to 80 million tons of cargo per annum. And works in this direction will continue – the company’s long-term plans envisage transportation of even larger volumes.
The Ministry Gives Support
The project of the Riga-Moscow train line in Latvia is coordinated by the Ministry of Transport. In the opinion of Uldis Augulis, the Latvian Transport Minister, everyone – the EU, Russia, and Latvia – will benefit from the available fast passenger communication on the route. “Riga has an important advantage – it is easy to get to Baltic and Scandinavian cities from it, the Russian fly to European countries via Riga, and the European – to Moscow and other cities,” states the Minister.
Latvia does have a good geographic position, which can and must bring dividends. “The project is very important for the Republic and a very scaled one,” said Mr Augulis.
Nowadays, approximately 300,000 people use the Riga-Moscow-Riga air route, and about 200,000 people use the railway line. Last year, the demand for air travel grew by 40,000 passengers (from 160,000 in 2009 to 200,000 in 2010). Meanwhile, railway passenger transportation volume has not increased, and the cost of transportation is almost the same.
A ticket to travel in a train compartment costs $162, and a two-hour flight $187. Both Riga and Moscow airports are outside the city limits. Specialists in the Ministry believe that if the infrastructure is improved, trains will run faster. And the passenger flow will increase along with the speed of transportation.
Not everyone, however, shares the positive viewpoint. “The project of the launch of a fast train on the Riga-Moscow rail line is not feasible, is unprofitable, and can do harm to the realisation of the European project Rail Baltica, designed to organise railway communication on the line Berlin-Warsaw-Vilnius-Riga-Tallinn,” said Janis Reirs, Chairman of the Budget and Finance Commission at the Latvian Saeima, in his interview with a Latvian radio station. He added that this project was unrealistic and had no financial justification. Does Rail Baltica have financial justification? Yes, due to the support of European politicians and European funds.
Latvian and Russian experts engaged in the project emphasise that the political will of the two states is needed for its further development. The discussion will be more meaningful and businesslike, when the agreement is signed on an interstate level, and Russian-Latvian project groups are involved in the process. By the way, Mr Zatlers in spring 2011 spoke out in favour of the railway construction. In his interview with a Latvian radio station he said that this project was a landmark in relations between Russia and Latvia.
By Natalya Don
[~DETAIL_TEXT] => To Create a Line or to Renovate?
Last December, Dmitry Medvedev, the Russian President, and Valdis Zatlers, now ex-president of Latvia, announced their intention to launch a passenger railway line connecting Riga and Moscow. Thus, it is planned to open a new line connecting the capitals of the two countries by 2018, when the FIFA World Cup is held in Russia.
In April 2011, at the meeting of Transport Ministers in Riga, it was announced that work had started on the project. Igor Levitin, Russia’s Transport Minister, emphasised that this project wasn’t political, but economic; and private investments might be attracted to realise it. As an example of such cooperation, Mr Levitin mentioned the successful experience of a public-private partnership (PPP) used to launch a passenger line connecting Helsinki and St Petersburg.
In June 2011, at the 5th meeting of the Russian-Latvian Intergovernmental Commission for Economic, Research and Engineering, Humanitarian and Cultural Cooperation in Liepaja, the parties agreed to present economic justification for the project and variants of the launch of railway communication on this route.
Specialists are actively discussing two solutions – either to build a new track parallel to the existing one, or to modernise and reconstruct the acting line with its electrification. According to Aja Pochi, Head of Project Management Department at Latvijas Dzelzcels (LDz), the parties are now examining the technical and other characteristics of the future line, and calculating the cost of a new railway corridor.
It is clear that construction of a special fast railway in Latvia, where trains could run at a speed of 200 kph from Riga to Moscow and the travel time could be 4-6 hours, is not a realistic project. Specialists assess the solution envisaging construction of the new line, electrification, and rolling stock at €5 billion, and this sum can hardly be found in the country now. (In Latvia, the total expenditure of the fixed budget is 3.3 billion lats or €4.7 billion).
A more realistic project is modernisation of the existing single-track line to provide speed of more than 100 kph instead of the present-day 70-80 kph in some sectors. Its cost is up to €2 billion. The travel time will fall from 17.5 hours to 11 hours. (By the way, if customs and border checks are optimised as was done on the Finnish-Russian line, where controls are carried out on the way, several more hours may be saved.)
Artis Kampars, the Latvian Minister of Economy and a co-chairman of the Intergovernmental Commission, said recently that the working groups had been commissioned to examine both variants.
Anyway, the question of investments remains open. Traditionally, when planning large infrastructure projects, Latvia stakes a claim on European funds. Meanwhile, the EU was less than enthusiastic about the Riga-Moscow train launch, and hinted that it was not ready to give the project financial support.
It is difficult to discuss now the volume of money and work to be carried out by the Russian party. The total length of the Riga-Moscow line is 922 km. Of that, 282 km is on Latvian territory, and the rest, 639 km, is in Russia’s area.
Specialists Stand for Modernisation
“If we consider reconstruction of the existing tracks to increase the speed to 100-120 kph, serious technical work will be needed there, including electrification, replacement of the railway profile, straightening of some sectors of the mainline, because a train may pick-up only on straight-line segments,” said Mrs Pocha. She added that the final report on the Latvian rail line’s electrification would be made soon. At present, there are 80 km of power lines on the Riga-Aizkraukle section; another 200 km long section needs electrification. In her words, construction is possible in phases, and first of all it will be realised on the Zilupe-Rezekne-Krustpils section, the stations of which lie not far from the Russian border.
In the opinion of Vyacheslav Rybkin, CEO of Lengiprotrans – OJSC for research and design of transport construction objects, modernisation seems to be the better variant, if the current passenger and freight flows in Latvia are considered. According to technical and economic calculations made by the Economy and Transport Development Institute (100% subsidiary of RZD), approximately 20,000 passengers per month will use this line in 2018 during the FIFA World Cup. “We could speak of a special line if the travel time was less than three hours. In this case, the train could compete with road transport,” said Mr Rybkin. Also, a special rail line needs serious investment, which usually isn’t paid back, whether they are state investments, private ones or PPP.
Guntar Yanson, Head of the Planning Department at LDz, shares this viewpoint. “If passengers have to go by train more than four hours, air transport wins.” Consequently, the decrease in travel time from 17.5 to 11 hours will not be very important.
As the Head of Lengiprotrans said, the project of the Riga-Moscow fast train is interesting and efficient in prospect. With such trains, the mobility of the population increases, and adjacent economy sectors are involved in this business. The cost of the land, where such infrastructure is built, grows. Moreover, electrified railway has a minimum impact on the environment.
At Full Capacity
In summer, there are two pairs of passenger trains on the Riga-Moscow line daily, and only one pair in winter. The rest of the time, cargo trains run there. Since the line has no second track on the larger part of its Latvian section, reconstruction of the existing railway (the second variant of the project) envisages stage-by-stage expensive electrification and construction of the second track as well. Double-track railway in the East-West corridor in Latvia is only on the Riga-Skrivery section. A 52 km long double-track railway is being built between Skrivery and Krustpils.
The remaining 200 km is a single track. That is why the carrying capacity of the line is almost exhausted. According to a source in LDz, realisation of the fast passenger train project and existing tracks modernisation, which envisages construction of the line, is to the enterprise’s advantage.
The decision must be taken anyway – the carrying capacity of the East-West corridor in Latvia is almost exhausted, while the cargo flows are growing. On average, about 50 million tons of cargo is transported via the Latvian mainline per annum. Transportation volumes in January-May 2011 increased by 27% compared with the same period the previous year. And Russia remains one of its major partners. The share of Russian cargo in the total railway transportation volume is 55%; that of Byelorussian is 35%, of which 17% originates from Russia.
Experts suppose that Russian cargo will not leave Latvia; rather, its volume will increase. Obviously, the country is ready to invest to strengthen the transit corridor – the lines from Latvian-Russian and Latvian-Byelorussian borders to the largest ports in the country – Riga and Ventspils. In the near future, the railway’s carrying capacity is to grow by 20% due to construction of second tracks on some sections of the railway, traffic optimisation, and implementation of up-to-date technologies to control cargo transportation. As Eric Shmuksts, a member of the Board of LDz, told us, these measures will allow transportation of up to 80 million tons of cargo per annum. And works in this direction will continue – the company’s long-term plans envisage transportation of even larger volumes.
The Ministry Gives Support
The project of the Riga-Moscow train line in Latvia is coordinated by the Ministry of Transport. In the opinion of Uldis Augulis, the Latvian Transport Minister, everyone – the EU, Russia, and Latvia – will benefit from the available fast passenger communication on the route. “Riga has an important advantage – it is easy to get to Baltic and Scandinavian cities from it, the Russian fly to European countries via Riga, and the European – to Moscow and other cities,” states the Minister.
Latvia does have a good geographic position, which can and must bring dividends. “The project is very important for the Republic and a very scaled one,” said Mr Augulis.
Nowadays, approximately 300,000 people use the Riga-Moscow-Riga air route, and about 200,000 people use the railway line. Last year, the demand for air travel grew by 40,000 passengers (from 160,000 in 2009 to 200,000 in 2010). Meanwhile, railway passenger transportation volume has not increased, and the cost of transportation is almost the same.
A ticket to travel in a train compartment costs $162, and a two-hour flight $187. Both Riga and Moscow airports are outside the city limits. Specialists in the Ministry believe that if the infrastructure is improved, trains will run faster. And the passenger flow will increase along with the speed of transportation.
Not everyone, however, shares the positive viewpoint. “The project of the launch of a fast train on the Riga-Moscow rail line is not feasible, is unprofitable, and can do harm to the realisation of the European project Rail Baltica, designed to organise railway communication on the line Berlin-Warsaw-Vilnius-Riga-Tallinn,” said Janis Reirs, Chairman of the Budget and Finance Commission at the Latvian Saeima, in his interview with a Latvian radio station. He added that this project was unrealistic and had no financial justification. Does Rail Baltica have financial justification? Yes, due to the support of European politicians and European funds.
Latvian and Russian experts engaged in the project emphasise that the political will of the two states is needed for its further development. The discussion will be more meaningful and businesslike, when the agreement is signed on an interstate level, and Russian-Latvian project groups are involved in the process. By the way, Mr Zatlers in spring 2011 spoke out in favour of the railway construction. In his interview with a Latvian radio station he said that this project was a landmark in relations between Russia and Latvia.
By Natalya Don
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[DETAIL_TEXT] => To Create a Line or to Renovate?
Last December, Dmitry Medvedev, the Russian President, and Valdis Zatlers, now ex-president of Latvia, announced their intention to launch a passenger railway line connecting Riga and Moscow. Thus, it is planned to open a new line connecting the capitals of the two countries by 2018, when the FIFA World Cup is held in Russia.
In April 2011, at the meeting of Transport Ministers in Riga, it was announced that work had started on the project. Igor Levitin, Russia’s Transport Minister, emphasised that this project wasn’t political, but economic; and private investments might be attracted to realise it. As an example of such cooperation, Mr Levitin mentioned the successful experience of a public-private partnership (PPP) used to launch a passenger line connecting Helsinki and St Petersburg.
In June 2011, at the 5th meeting of the Russian-Latvian Intergovernmental Commission for Economic, Research and Engineering, Humanitarian and Cultural Cooperation in Liepaja, the parties agreed to present economic justification for the project and variants of the launch of railway communication on this route.
Specialists are actively discussing two solutions – either to build a new track parallel to the existing one, or to modernise and reconstruct the acting line with its electrification. According to Aja Pochi, Head of Project Management Department at Latvijas Dzelzcels (LDz), the parties are now examining the technical and other characteristics of the future line, and calculating the cost of a new railway corridor.
It is clear that construction of a special fast railway in Latvia, where trains could run at a speed of 200 kph from Riga to Moscow and the travel time could be 4-6 hours, is not a realistic project. Specialists assess the solution envisaging construction of the new line, electrification, and rolling stock at €5 billion, and this sum can hardly be found in the country now. (In Latvia, the total expenditure of the fixed budget is 3.3 billion lats or €4.7 billion).
A more realistic project is modernisation of the existing single-track line to provide speed of more than 100 kph instead of the present-day 70-80 kph in some sectors. Its cost is up to €2 billion. The travel time will fall from 17.5 hours to 11 hours. (By the way, if customs and border checks are optimised as was done on the Finnish-Russian line, where controls are carried out on the way, several more hours may be saved.)
Artis Kampars, the Latvian Minister of Economy and a co-chairman of the Intergovernmental Commission, said recently that the working groups had been commissioned to examine both variants.
Anyway, the question of investments remains open. Traditionally, when planning large infrastructure projects, Latvia stakes a claim on European funds. Meanwhile, the EU was less than enthusiastic about the Riga-Moscow train launch, and hinted that it was not ready to give the project financial support.
It is difficult to discuss now the volume of money and work to be carried out by the Russian party. The total length of the Riga-Moscow line is 922 km. Of that, 282 km is on Latvian territory, and the rest, 639 km, is in Russia’s area.
Specialists Stand for Modernisation
“If we consider reconstruction of the existing tracks to increase the speed to 100-120 kph, serious technical work will be needed there, including electrification, replacement of the railway profile, straightening of some sectors of the mainline, because a train may pick-up only on straight-line segments,” said Mrs Pocha. She added that the final report on the Latvian rail line’s electrification would be made soon. At present, there are 80 km of power lines on the Riga-Aizkraukle section; another 200 km long section needs electrification. In her words, construction is possible in phases, and first of all it will be realised on the Zilupe-Rezekne-Krustpils section, the stations of which lie not far from the Russian border.
In the opinion of Vyacheslav Rybkin, CEO of Lengiprotrans – OJSC for research and design of transport construction objects, modernisation seems to be the better variant, if the current passenger and freight flows in Latvia are considered. According to technical and economic calculations made by the Economy and Transport Development Institute (100% subsidiary of RZD), approximately 20,000 passengers per month will use this line in 2018 during the FIFA World Cup. “We could speak of a special line if the travel time was less than three hours. In this case, the train could compete with road transport,” said Mr Rybkin. Also, a special rail line needs serious investment, which usually isn’t paid back, whether they are state investments, private ones or PPP.
Guntar Yanson, Head of the Planning Department at LDz, shares this viewpoint. “If passengers have to go by train more than four hours, air transport wins.” Consequently, the decrease in travel time from 17.5 to 11 hours will not be very important.
As the Head of Lengiprotrans said, the project of the Riga-Moscow fast train is interesting and efficient in prospect. With such trains, the mobility of the population increases, and adjacent economy sectors are involved in this business. The cost of the land, where such infrastructure is built, grows. Moreover, electrified railway has a minimum impact on the environment.
At Full Capacity
In summer, there are two pairs of passenger trains on the Riga-Moscow line daily, and only one pair in winter. The rest of the time, cargo trains run there. Since the line has no second track on the larger part of its Latvian section, reconstruction of the existing railway (the second variant of the project) envisages stage-by-stage expensive electrification and construction of the second track as well. Double-track railway in the East-West corridor in Latvia is only on the Riga-Skrivery section. A 52 km long double-track railway is being built between Skrivery and Krustpils.
The remaining 200 km is a single track. That is why the carrying capacity of the line is almost exhausted. According to a source in LDz, realisation of the fast passenger train project and existing tracks modernisation, which envisages construction of the line, is to the enterprise’s advantage.
The decision must be taken anyway – the carrying capacity of the East-West corridor in Latvia is almost exhausted, while the cargo flows are growing. On average, about 50 million tons of cargo is transported via the Latvian mainline per annum. Transportation volumes in January-May 2011 increased by 27% compared with the same period the previous year. And Russia remains one of its major partners. The share of Russian cargo in the total railway transportation volume is 55%; that of Byelorussian is 35%, of which 17% originates from Russia.
Experts suppose that Russian cargo will not leave Latvia; rather, its volume will increase. Obviously, the country is ready to invest to strengthen the transit corridor – the lines from Latvian-Russian and Latvian-Byelorussian borders to the largest ports in the country – Riga and Ventspils. In the near future, the railway’s carrying capacity is to grow by 20% due to construction of second tracks on some sections of the railway, traffic optimisation, and implementation of up-to-date technologies to control cargo transportation. As Eric Shmuksts, a member of the Board of LDz, told us, these measures will allow transportation of up to 80 million tons of cargo per annum. And works in this direction will continue – the company’s long-term plans envisage transportation of even larger volumes.
The Ministry Gives Support
The project of the Riga-Moscow train line in Latvia is coordinated by the Ministry of Transport. In the opinion of Uldis Augulis, the Latvian Transport Minister, everyone – the EU, Russia, and Latvia – will benefit from the available fast passenger communication on the route. “Riga has an important advantage – it is easy to get to Baltic and Scandinavian cities from it, the Russian fly to European countries via Riga, and the European – to Moscow and other cities,” states the Minister.
Latvia does have a good geographic position, which can and must bring dividends. “The project is very important for the Republic and a very scaled one,” said Mr Augulis.
Nowadays, approximately 300,000 people use the Riga-Moscow-Riga air route, and about 200,000 people use the railway line. Last year, the demand for air travel grew by 40,000 passengers (from 160,000 in 2009 to 200,000 in 2010). Meanwhile, railway passenger transportation volume has not increased, and the cost of transportation is almost the same.
A ticket to travel in a train compartment costs $162, and a two-hour flight $187. Both Riga and Moscow airports are outside the city limits. Specialists in the Ministry believe that if the infrastructure is improved, trains will run faster. And the passenger flow will increase along with the speed of transportation.
Not everyone, however, shares the positive viewpoint. “The project of the launch of a fast train on the Riga-Moscow rail line is not feasible, is unprofitable, and can do harm to the realisation of the European project Rail Baltica, designed to organise railway communication on the line Berlin-Warsaw-Vilnius-Riga-Tallinn,” said Janis Reirs, Chairman of the Budget and Finance Commission at the Latvian Saeima, in his interview with a Latvian radio station. He added that this project was unrealistic and had no financial justification. Does Rail Baltica have financial justification? Yes, due to the support of European politicians and European funds.
Latvian and Russian experts engaged in the project emphasise that the political will of the two states is needed for its further development. The discussion will be more meaningful and businesslike, when the agreement is signed on an interstate level, and Russian-Latvian project groups are involved in the process. By the way, Mr Zatlers in spring 2011 spoke out in favour of the railway construction. In his interview with a Latvian radio station he said that this project was a landmark in relations between Russia and Latvia.
By Natalya Don
[~DETAIL_TEXT] => To Create a Line or to Renovate?
Last December, Dmitry Medvedev, the Russian President, and Valdis Zatlers, now ex-president of Latvia, announced their intention to launch a passenger railway line connecting Riga and Moscow. Thus, it is planned to open a new line connecting the capitals of the two countries by 2018, when the FIFA World Cup is held in Russia.
In April 2011, at the meeting of Transport Ministers in Riga, it was announced that work had started on the project. Igor Levitin, Russia’s Transport Minister, emphasised that this project wasn’t political, but economic; and private investments might be attracted to realise it. As an example of such cooperation, Mr Levitin mentioned the successful experience of a public-private partnership (PPP) used to launch a passenger line connecting Helsinki and St Petersburg.
In June 2011, at the 5th meeting of the Russian-Latvian Intergovernmental Commission for Economic, Research and Engineering, Humanitarian and Cultural Cooperation in Liepaja, the parties agreed to present economic justification for the project and variants of the launch of railway communication on this route.
Specialists are actively discussing two solutions – either to build a new track parallel to the existing one, or to modernise and reconstruct the acting line with its electrification. According to Aja Pochi, Head of Project Management Department at Latvijas Dzelzcels (LDz), the parties are now examining the technical and other characteristics of the future line, and calculating the cost of a new railway corridor.
It is clear that construction of a special fast railway in Latvia, where trains could run at a speed of 200 kph from Riga to Moscow and the travel time could be 4-6 hours, is not a realistic project. Specialists assess the solution envisaging construction of the new line, electrification, and rolling stock at €5 billion, and this sum can hardly be found in the country now. (In Latvia, the total expenditure of the fixed budget is 3.3 billion lats or €4.7 billion).
A more realistic project is modernisation of the existing single-track line to provide speed of more than 100 kph instead of the present-day 70-80 kph in some sectors. Its cost is up to €2 billion. The travel time will fall from 17.5 hours to 11 hours. (By the way, if customs and border checks are optimised as was done on the Finnish-Russian line, where controls are carried out on the way, several more hours may be saved.)
Artis Kampars, the Latvian Minister of Economy and a co-chairman of the Intergovernmental Commission, said recently that the working groups had been commissioned to examine both variants.
Anyway, the question of investments remains open. Traditionally, when planning large infrastructure projects, Latvia stakes a claim on European funds. Meanwhile, the EU was less than enthusiastic about the Riga-Moscow train launch, and hinted that it was not ready to give the project financial support.
It is difficult to discuss now the volume of money and work to be carried out by the Russian party. The total length of the Riga-Moscow line is 922 km. Of that, 282 km is on Latvian territory, and the rest, 639 km, is in Russia’s area.
Specialists Stand for Modernisation
“If we consider reconstruction of the existing tracks to increase the speed to 100-120 kph, serious technical work will be needed there, including electrification, replacement of the railway profile, straightening of some sectors of the mainline, because a train may pick-up only on straight-line segments,” said Mrs Pocha. She added that the final report on the Latvian rail line’s electrification would be made soon. At present, there are 80 km of power lines on the Riga-Aizkraukle section; another 200 km long section needs electrification. In her words, construction is possible in phases, and first of all it will be realised on the Zilupe-Rezekne-Krustpils section, the stations of which lie not far from the Russian border.
In the opinion of Vyacheslav Rybkin, CEO of Lengiprotrans – OJSC for research and design of transport construction objects, modernisation seems to be the better variant, if the current passenger and freight flows in Latvia are considered. According to technical and economic calculations made by the Economy and Transport Development Institute (100% subsidiary of RZD), approximately 20,000 passengers per month will use this line in 2018 during the FIFA World Cup. “We could speak of a special line if the travel time was less than three hours. In this case, the train could compete with road transport,” said Mr Rybkin. Also, a special rail line needs serious investment, which usually isn’t paid back, whether they are state investments, private ones or PPP.
Guntar Yanson, Head of the Planning Department at LDz, shares this viewpoint. “If passengers have to go by train more than four hours, air transport wins.” Consequently, the decrease in travel time from 17.5 to 11 hours will not be very important.
As the Head of Lengiprotrans said, the project of the Riga-Moscow fast train is interesting and efficient in prospect. With such trains, the mobility of the population increases, and adjacent economy sectors are involved in this business. The cost of the land, where such infrastructure is built, grows. Moreover, electrified railway has a minimum impact on the environment.
At Full Capacity
In summer, there are two pairs of passenger trains on the Riga-Moscow line daily, and only one pair in winter. The rest of the time, cargo trains run there. Since the line has no second track on the larger part of its Latvian section, reconstruction of the existing railway (the second variant of the project) envisages stage-by-stage expensive electrification and construction of the second track as well. Double-track railway in the East-West corridor in Latvia is only on the Riga-Skrivery section. A 52 km long double-track railway is being built between Skrivery and Krustpils.
The remaining 200 km is a single track. That is why the carrying capacity of the line is almost exhausted. According to a source in LDz, realisation of the fast passenger train project and existing tracks modernisation, which envisages construction of the line, is to the enterprise’s advantage.
The decision must be taken anyway – the carrying capacity of the East-West corridor in Latvia is almost exhausted, while the cargo flows are growing. On average, about 50 million tons of cargo is transported via the Latvian mainline per annum. Transportation volumes in January-May 2011 increased by 27% compared with the same period the previous year. And Russia remains one of its major partners. The share of Russian cargo in the total railway transportation volume is 55%; that of Byelorussian is 35%, of which 17% originates from Russia.
Experts suppose that Russian cargo will not leave Latvia; rather, its volume will increase. Obviously, the country is ready to invest to strengthen the transit corridor – the lines from Latvian-Russian and Latvian-Byelorussian borders to the largest ports in the country – Riga and Ventspils. In the near future, the railway’s carrying capacity is to grow by 20% due to construction of second tracks on some sections of the railway, traffic optimisation, and implementation of up-to-date technologies to control cargo transportation. As Eric Shmuksts, a member of the Board of LDz, told us, these measures will allow transportation of up to 80 million tons of cargo per annum. And works in this direction will continue – the company’s long-term plans envisage transportation of even larger volumes.
The Ministry Gives Support
The project of the Riga-Moscow train line in Latvia is coordinated by the Ministry of Transport. In the opinion of Uldis Augulis, the Latvian Transport Minister, everyone – the EU, Russia, and Latvia – will benefit from the available fast passenger communication on the route. “Riga has an important advantage – it is easy to get to Baltic and Scandinavian cities from it, the Russian fly to European countries via Riga, and the European – to Moscow and other cities,” states the Minister.
Latvia does have a good geographic position, which can and must bring dividends. “The project is very important for the Republic and a very scaled one,” said Mr Augulis.
Nowadays, approximately 300,000 people use the Riga-Moscow-Riga air route, and about 200,000 people use the railway line. Last year, the demand for air travel grew by 40,000 passengers (from 160,000 in 2009 to 200,000 in 2010). Meanwhile, railway passenger transportation volume has not increased, and the cost of transportation is almost the same.
A ticket to travel in a train compartment costs $162, and a two-hour flight $187. Both Riga and Moscow airports are outside the city limits. Specialists in the Ministry believe that if the infrastructure is improved, trains will run faster. And the passenger flow will increase along with the speed of transportation.
Not everyone, however, shares the positive viewpoint. “The project of the launch of a fast train on the Riga-Moscow rail line is not feasible, is unprofitable, and can do harm to the realisation of the European project Rail Baltica, designed to organise railway communication on the line Berlin-Warsaw-Vilnius-Riga-Tallinn,” said Janis Reirs, Chairman of the Budget and Finance Commission at the Latvian Saeima, in his interview with a Latvian radio station. He added that this project was unrealistic and had no financial justification. Does Rail Baltica have financial justification? Yes, due to the support of European politicians and European funds.
Latvian and Russian experts engaged in the project emphasise that the political will of the two states is needed for its further development. The discussion will be more meaningful and businesslike, when the agreement is signed on an interstate level, and Russian-Latvian project groups are involved in the process. By the way, Mr Zatlers in spring 2011 spoke out in favour of the railway construction. In his interview with a Latvian radio station he said that this project was a landmark in relations between Russia and Latvia.
By Natalya Don
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[DETAIL_TEXT] => Alstom and Transmashholding present the EP20 locomotive
Alstom Transport and Transmashholding (TMH) have unveiled the first joint production resulting from the strategic partnership established in Russia between the two companies: an electric locomotive for EP20 passenger trains.
The locomotive’s development by a newly created joint venture – the ‘TRtrans’ engineering centre – took just seven months.
This first production will be followed in a few months by another electric locomotive: the 2ES5 locomotive designed for freight transport.
Since their alliance in 2008, the two partners have received orders for a total of 700 locomotives for Russian Railways (RZD) and Kazakhstan Railways (KTZ) totalling €3.5 billion.
The EP20 locomotive is being presented at Expo 1520, held on 7-10 September, 2011, in Moscow.
This new-generation locomotive, ordered by Russian Railways in view of the 2014 Olympic Games in Sochi, was inspired by the latest Alstom locomotive, the Prima II, and by Russian models designed and manufactured by TMH. Yet the EP20 is not a simple adaptation of existing models. It was designed specifically for the CIS market and features the very latest in technology.
The EP20 is the first triple-bogie passenger locomotive (BoBoBo) capable of operating at speeds of up to 200 km/h on both voltage systems in use in Russia. Its asynchronous motor is rated at 7200 kW, making the EP20 one of the world’s most powerful passenger train locomotives.
It was ‘winterised’ for operation under temperatures as low as minus 50° C, with components suitable for extreme conditions and preheating systems for its sensitive equipment.
The EP20 is also the first Russian locomotive equipped with a computerised cab, including driving aids, remote service diagnosis, remote maintenance and centralised data.
The locomotive’s highly efficient traction system also allows for a significant reduction in electricity consumption.
RZD Plans to Launch a Demo Train Between Khasan and Rajin
In October 2011, RZD plans to launch a demo train on the Khasan (the Russian Federation) – Rajin (the Democratic People’s Republic of Korea) railway, announced Vladimir Yakunin, President of Russian Railways during his visit to the Far Eastern Railway on September 9, 2011.
Nowadays, RZD is carrying out the project “Reconstruction of the Khasan– Rajin Railway,” which envisages reconstruction of the existing railway, construction of a cargo terminal in the Rajin port and further usage of this infrastructure to organise transit cargo transportation with a passage to the Transsiberian mainline.
“The target of the project is to restore this section of the railway and to saturate the Rajin port with containers. At present time, we are discussing coal transportation as well,” noted Mr Yakunin.
A Container Line Will Connect Estonia and Kazakhstan
A container block train is to be launched on the Estonia-Kazakhstan line at the end of 2011, said Sven Ratassepp, a spokesman for Tallinna Sadam (Port of Tallinn).
The decision was made during the visit of a special sub-commission subordinated to the intergovernmental commission for transport and transit in Estonia. According to the Estonian Ministry of Economy and Communication, the operators of the train will be Kazakhstan Temir Zholy and EVR Cargo (a subsidiary of Eesti Raudtee).
In the words of Mr Ratassepp, the port of Tallinn made Kazakhstan entrepreneurs a number of offers on cargo handling in the Estonian ports. In the future, the route may be extended from Estonia to western China.
Cargoes Go to China
In January-June of 2011, the Zabaikalskaya Railway (a subsidiary of RZD) increased the volume of export transportation to China by 37% year-on-year to 7.69 million tons.
No oil bulk is mentioned in the company’s report, because its export to the China via the Zabaikalsk railway station stopped in 2010, when Skovorodino- Daqing pipeline was put into operation.
According to the company, import volumes grew by 34.3% in the first six months of 2011 and amounted to 679,700 tons. Meanwhile, the report runs that the adjusted plan of Chinese goods receipt in Russia was 85% fulfilled.
A Supernational Certification Body May Be Established in the Customs Union
The non-commercial partnership Union of Industries of Railway Equipment (the NP UIRE) – founded by Russian Railways and Russia’s largest manufacturers of rolling stock – are discussing with executive authorities of the Customs Union’s member-states the opportunity to create a supernational certification body, said a representative of the NP UIRE, referring to Valentin Gapanovich, the Head of the Union, RZD’s Senior Vice President.
Also, the NP UIRE consider that it is necessary to speed up the revision of the normative and legislative base for certificating innovative developments, and the standardisation of some types of equipment, in particular, wagon bogies.
New Rules of Technical Exploitation of the Railways come into force in September
On September 22, 2011, new Rules of Technical Exploitation of the RF Railways come into force. The Rules were approved by the Ministry of Transport (Decree ¹286 dated December 21, 2010).
What separates the new Rules of Technical Exploitation of the RF Railways from the previous issue is that a business enterprise obtains the right to regulate some issues of technical exploitation and safety of infrastructure that belong to it legally. Also, this document covers non-public railway transport.
RZD established a rolling commission to continually improve the normative and legislative base. It has started to develop more than 100 documents providing fulfillment of some requirements of the Rules by the infrastructure owner. This work is supposed to be completed in September 2011.
Moreover, RZD initiated the launch of a special interdepartmental working group affiliated with the RF Transport Ministry. The Group is responsible for updating and issuing 35 normative legal acts of the state authorities, providing the fulfillment of the Rules.
Also, RZD considers it necessary to adopt on an international level a document regulating maintenance and the technical exploitation of railway transport in the CIS, Latvia, Lithuania, and Estonia. This must provide continuity in the international transportation process and harmonise all requirements for technical exploitation, taking into account national legislation.
KTZ: Plan Fulfilled
In the first half of 2011, the exploitation cargo turnover of the National Company Kazakhstan Temir Zholy (KTZ, Railways of Kazakhstan) amounted to 105.25 billion net tonne-kilometres, a 2.3% increase in comparison with the same period of 2010. The planned figure was 103.54 billion tonne-kilometres.
In this period, passenger turnover grew by 5.1% year-on-year to more than 6.5 billion passenger-kilometres. The company received a net profit of 57 billion tenges (EUR 271.7 million), which is 39% more compared with the first half of 2010.
At the meeting on the company’s results in January-June 2011, Askar Mamin, President of the KTZ, said that the results of the first half of the year let them speak of reaching all the goals the company has.
Ukrzaliznytsya: More Cargo, More Passengers
In January-August 2011, Railways of Ukraine (Ukrzaliznytsya) increased cargo transportation volume by 8.5% in comparison with the same period of 2010, to 304 million tons.
The share of transit in the total transportation volume amounted to 11.5% (34.9 million tons). In January-June 2010, this figure was 11%; and in the first eight months of 2009 it was 12%. In the described period, the growth of transit transportation volume amounted to 13%.
Railway transportation of passengers in eight months of 2011 increased slightly (+0.5% year-on-year) and amounted to 338.6 million people. In January-August 2010, there was a 0.23% decline in passenger volumes.
Railcars Are Badly Needed
In the first half of 2011, Russian enterprises produced 31,000 cargo railcars, a 41% increase compared with the same period in 2010.
Wagon production volumes in Ukraine are growing as fast as in Russia. Railcars manufactured in Ukraine are being purchased mainly by Russian companies. In January-June 2011, Ukrainian plants made 24,000 railcars (a 40% growth year-on-year).
The main reason for the rapid growth is the low figures of the first half of 2010. At the beginning of 2010, Russian and Ukrainian enterprises produced 3,500-4,000 railcars per month, however, late in 2010 the production volume increased to 5,500-5,700 wagons per month, thus the companies broke a record achieved in the USSR era. The same level remained in early 2011.
Local Transporters – a Blessing or a Curse
Specialists at RZD believe that the emergence of local railway cargo transporters in the Russian Federation will increase the loading on infrastructure and may negatively influence the safety of transportation.
“Local transporters will use locomotives in accordance with their own logistics schemes instead of the criteria of a singe technological process. This may cause a decline in the efficiency of locomotives, a rise in demand for the rolling stock park, and an increase in the number of non-productive transportation via the railway network,” runs RZD’s 2010 annual report. The company also noted that the technology of locomotive performance will have to be revised.
In the framework of the railway transport reform, the RF Government is going to establish an institute of local transporters in the country before 2015, that is rolling stock operators will be able to provide transportation using their own locomotives on some lines. This right may be given to companies after 2013, said Andrey Nedosekov, Deputy Transport Minister of Russia.
[~DETAIL_TEXT] => Alstom and Transmashholding present the EP20 locomotive
Alstom Transport and Transmashholding (TMH) have unveiled the first joint production resulting from the strategic partnership established in Russia between the two companies: an electric locomotive for EP20 passenger trains.
The locomotive’s development by a newly created joint venture – the ‘TRtrans’ engineering centre – took just seven months.
This first production will be followed in a few months by another electric locomotive: the 2ES5 locomotive designed for freight transport.
Since their alliance in 2008, the two partners have received orders for a total of 700 locomotives for Russian Railways (RZD) and Kazakhstan Railways (KTZ) totalling €3.5 billion.
The EP20 locomotive is being presented at Expo 1520, held on 7-10 September, 2011, in Moscow.
This new-generation locomotive, ordered by Russian Railways in view of the 2014 Olympic Games in Sochi, was inspired by the latest Alstom locomotive, the Prima II, and by Russian models designed and manufactured by TMH. Yet the EP20 is not a simple adaptation of existing models. It was designed specifically for the CIS market and features the very latest in technology.
The EP20 is the first triple-bogie passenger locomotive (BoBoBo) capable of operating at speeds of up to 200 km/h on both voltage systems in use in Russia. Its asynchronous motor is rated at 7200 kW, making the EP20 one of the world’s most powerful passenger train locomotives.
It was ‘winterised’ for operation under temperatures as low as minus 50° C, with components suitable for extreme conditions and preheating systems for its sensitive equipment.
The EP20 is also the first Russian locomotive equipped with a computerised cab, including driving aids, remote service diagnosis, remote maintenance and centralised data.
The locomotive’s highly efficient traction system also allows for a significant reduction in electricity consumption.
RZD Plans to Launch a Demo Train Between Khasan and Rajin
In October 2011, RZD plans to launch a demo train on the Khasan (the Russian Federation) – Rajin (the Democratic People’s Republic of Korea) railway, announced Vladimir Yakunin, President of Russian Railways during his visit to the Far Eastern Railway on September 9, 2011.
Nowadays, RZD is carrying out the project “Reconstruction of the Khasan– Rajin Railway,” which envisages reconstruction of the existing railway, construction of a cargo terminal in the Rajin port and further usage of this infrastructure to organise transit cargo transportation with a passage to the Transsiberian mainline.
“The target of the project is to restore this section of the railway and to saturate the Rajin port with containers. At present time, we are discussing coal transportation as well,” noted Mr Yakunin.
A Container Line Will Connect Estonia and Kazakhstan
A container block train is to be launched on the Estonia-Kazakhstan line at the end of 2011, said Sven Ratassepp, a spokesman for Tallinna Sadam (Port of Tallinn).
The decision was made during the visit of a special sub-commission subordinated to the intergovernmental commission for transport and transit in Estonia. According to the Estonian Ministry of Economy and Communication, the operators of the train will be Kazakhstan Temir Zholy and EVR Cargo (a subsidiary of Eesti Raudtee).
In the words of Mr Ratassepp, the port of Tallinn made Kazakhstan entrepreneurs a number of offers on cargo handling in the Estonian ports. In the future, the route may be extended from Estonia to western China.
Cargoes Go to China
In January-June of 2011, the Zabaikalskaya Railway (a subsidiary of RZD) increased the volume of export transportation to China by 37% year-on-year to 7.69 million tons.
No oil bulk is mentioned in the company’s report, because its export to the China via the Zabaikalsk railway station stopped in 2010, when Skovorodino- Daqing pipeline was put into operation.
According to the company, import volumes grew by 34.3% in the first six months of 2011 and amounted to 679,700 tons. Meanwhile, the report runs that the adjusted plan of Chinese goods receipt in Russia was 85% fulfilled.
A Supernational Certification Body May Be Established in the Customs Union
The non-commercial partnership Union of Industries of Railway Equipment (the NP UIRE) – founded by Russian Railways and Russia’s largest manufacturers of rolling stock – are discussing with executive authorities of the Customs Union’s member-states the opportunity to create a supernational certification body, said a representative of the NP UIRE, referring to Valentin Gapanovich, the Head of the Union, RZD’s Senior Vice President.
Also, the NP UIRE consider that it is necessary to speed up the revision of the normative and legislative base for certificating innovative developments, and the standardisation of some types of equipment, in particular, wagon bogies.
New Rules of Technical Exploitation of the Railways come into force in September
On September 22, 2011, new Rules of Technical Exploitation of the RF Railways come into force. The Rules were approved by the Ministry of Transport (Decree ¹286 dated December 21, 2010).
What separates the new Rules of Technical Exploitation of the RF Railways from the previous issue is that a business enterprise obtains the right to regulate some issues of technical exploitation and safety of infrastructure that belong to it legally. Also, this document covers non-public railway transport.
RZD established a rolling commission to continually improve the normative and legislative base. It has started to develop more than 100 documents providing fulfillment of some requirements of the Rules by the infrastructure owner. This work is supposed to be completed in September 2011.
Moreover, RZD initiated the launch of a special interdepartmental working group affiliated with the RF Transport Ministry. The Group is responsible for updating and issuing 35 normative legal acts of the state authorities, providing the fulfillment of the Rules.
Also, RZD considers it necessary to adopt on an international level a document regulating maintenance and the technical exploitation of railway transport in the CIS, Latvia, Lithuania, and Estonia. This must provide continuity in the international transportation process and harmonise all requirements for technical exploitation, taking into account national legislation.
KTZ: Plan Fulfilled
In the first half of 2011, the exploitation cargo turnover of the National Company Kazakhstan Temir Zholy (KTZ, Railways of Kazakhstan) amounted to 105.25 billion net tonne-kilometres, a 2.3% increase in comparison with the same period of 2010. The planned figure was 103.54 billion tonne-kilometres.
In this period, passenger turnover grew by 5.1% year-on-year to more than 6.5 billion passenger-kilometres. The company received a net profit of 57 billion tenges (EUR 271.7 million), which is 39% more compared with the first half of 2010.
At the meeting on the company’s results in January-June 2011, Askar Mamin, President of the KTZ, said that the results of the first half of the year let them speak of reaching all the goals the company has.
Ukrzaliznytsya: More Cargo, More Passengers
In January-August 2011, Railways of Ukraine (Ukrzaliznytsya) increased cargo transportation volume by 8.5% in comparison with the same period of 2010, to 304 million tons.
The share of transit in the total transportation volume amounted to 11.5% (34.9 million tons). In January-June 2010, this figure was 11%; and in the first eight months of 2009 it was 12%. In the described period, the growth of transit transportation volume amounted to 13%.
Railway transportation of passengers in eight months of 2011 increased slightly (+0.5% year-on-year) and amounted to 338.6 million people. In January-August 2010, there was a 0.23% decline in passenger volumes.
Railcars Are Badly Needed
In the first half of 2011, Russian enterprises produced 31,000 cargo railcars, a 41% increase compared with the same period in 2010.
Wagon production volumes in Ukraine are growing as fast as in Russia. Railcars manufactured in Ukraine are being purchased mainly by Russian companies. In January-June 2011, Ukrainian plants made 24,000 railcars (a 40% growth year-on-year).
The main reason for the rapid growth is the low figures of the first half of 2010. At the beginning of 2010, Russian and Ukrainian enterprises produced 3,500-4,000 railcars per month, however, late in 2010 the production volume increased to 5,500-5,700 wagons per month, thus the companies broke a record achieved in the USSR era. The same level remained in early 2011.
Local Transporters – a Blessing or a Curse
Specialists at RZD believe that the emergence of local railway cargo transporters in the Russian Federation will increase the loading on infrastructure and may negatively influence the safety of transportation.
“Local transporters will use locomotives in accordance with their own logistics schemes instead of the criteria of a singe technological process. This may cause a decline in the efficiency of locomotives, a rise in demand for the rolling stock park, and an increase in the number of non-productive transportation via the railway network,” runs RZD’s 2010 annual report. The company also noted that the technology of locomotive performance will have to be revised.
In the framework of the railway transport reform, the RF Government is going to establish an institute of local transporters in the country before 2015, that is rolling stock operators will be able to provide transportation using their own locomotives on some lines. This right may be given to companies after 2013, said Andrey Nedosekov, Deputy Transport Minister of Russia.
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[PREVIEW_TEXT] => Alstom Transport and Transmashholding (TMH) have unveiled the first joint production resulting from the strategic partnership established in Russia between the two companies: an electric locomotive for EP20 passenger trains.
The locomotive’s development by a newly created joint venture – the ‘TRtrans’ engineering centre – took just seven months.
This first production will be followed in a few months by another electric locomotive: the 2ES5 locomotive designed for freight transport.
Since their alliance in 2008, the two partners have received orders for a total of 700 locomotives for Russian Railways (RZD) and Kazakhstan Railways (KTZ) totalling ?3.5 billion.
[~PREVIEW_TEXT] => Alstom Transport and Transmashholding (TMH) have unveiled the first joint production resulting from the strategic partnership established in Russia between the two companies: an electric locomotive for EP20 passenger trains.
The locomotive’s development by a newly created joint venture – the ‘TRtrans’ engineering centre – took just seven months.
This first production will be followed in a few months by another electric locomotive: the 2ES5 locomotive designed for freight transport.
Since their alliance in 2008, the two partners have received orders for a total of 700 locomotives for Russian Railways (RZD) and Kazakhstan Railways (KTZ) totalling ?3.5 billion.
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[SECTION_META_DESCRIPTION] => Alstom Transport and Transmashholding (TMH) have unveiled the first joint production resulting from the strategic partnership established in Russia between the two companies: an electric locomotive for EP20 passenger trains.
The locomotive’s development by a newly created joint venture – the ‘TRtrans’ engineering centre – took just seven months.
This first production will be followed in a few months by another electric locomotive: the 2ES5 locomotive designed for freight transport.
Since their alliance in 2008, the two partners have received orders for a total of 700 locomotives for Russian Railways (RZD) and Kazakhstan Railways (KTZ) totalling ?3.5 billion.
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The locomotive’s development by a newly created joint venture – the ‘TRtrans’ engineering centre – took just seven months.
This first production will be followed in a few months by another electric locomotive: the 2ES5 locomotive designed for freight transport.
Since their alliance in 2008, the two partners have received orders for a total of 700 locomotives for Russian Railways (RZD) and Kazakhstan Railways (KTZ) totalling ?3.5 billion.
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[DETAIL_TEXT] => Alstom and Transmashholding present the EP20 locomotive
Alstom Transport and Transmashholding (TMH) have unveiled the first joint production resulting from the strategic partnership established in Russia between the two companies: an electric locomotive for EP20 passenger trains.
The locomotive’s development by a newly created joint venture – the ‘TRtrans’ engineering centre – took just seven months.
This first production will be followed in a few months by another electric locomotive: the 2ES5 locomotive designed for freight transport.
Since their alliance in 2008, the two partners have received orders for a total of 700 locomotives for Russian Railways (RZD) and Kazakhstan Railways (KTZ) totalling €3.5 billion.
The EP20 locomotive is being presented at Expo 1520, held on 7-10 September, 2011, in Moscow.
This new-generation locomotive, ordered by Russian Railways in view of the 2014 Olympic Games in Sochi, was inspired by the latest Alstom locomotive, the Prima II, and by Russian models designed and manufactured by TMH. Yet the EP20 is not a simple adaptation of existing models. It was designed specifically for the CIS market and features the very latest in technology.
The EP20 is the first triple-bogie passenger locomotive (BoBoBo) capable of operating at speeds of up to 200 km/h on both voltage systems in use in Russia. Its asynchronous motor is rated at 7200 kW, making the EP20 one of the world’s most powerful passenger train locomotives.
It was ‘winterised’ for operation under temperatures as low as minus 50° C, with components suitable for extreme conditions and preheating systems for its sensitive equipment.
The EP20 is also the first Russian locomotive equipped with a computerised cab, including driving aids, remote service diagnosis, remote maintenance and centralised data.
The locomotive’s highly efficient traction system also allows for a significant reduction in electricity consumption.
RZD Plans to Launch a Demo Train Between Khasan and Rajin
In October 2011, RZD plans to launch a demo train on the Khasan (the Russian Federation) – Rajin (the Democratic People’s Republic of Korea) railway, announced Vladimir Yakunin, President of Russian Railways during his visit to the Far Eastern Railway on September 9, 2011.
Nowadays, RZD is carrying out the project “Reconstruction of the Khasan– Rajin Railway,” which envisages reconstruction of the existing railway, construction of a cargo terminal in the Rajin port and further usage of this infrastructure to organise transit cargo transportation with a passage to the Transsiberian mainline.
“The target of the project is to restore this section of the railway and to saturate the Rajin port with containers. At present time, we are discussing coal transportation as well,” noted Mr Yakunin.
A Container Line Will Connect Estonia and Kazakhstan
A container block train is to be launched on the Estonia-Kazakhstan line at the end of 2011, said Sven Ratassepp, a spokesman for Tallinna Sadam (Port of Tallinn).
The decision was made during the visit of a special sub-commission subordinated to the intergovernmental commission for transport and transit in Estonia. According to the Estonian Ministry of Economy and Communication, the operators of the train will be Kazakhstan Temir Zholy and EVR Cargo (a subsidiary of Eesti Raudtee).
In the words of Mr Ratassepp, the port of Tallinn made Kazakhstan entrepreneurs a number of offers on cargo handling in the Estonian ports. In the future, the route may be extended from Estonia to western China.
Cargoes Go to China
In January-June of 2011, the Zabaikalskaya Railway (a subsidiary of RZD) increased the volume of export transportation to China by 37% year-on-year to 7.69 million tons.
No oil bulk is mentioned in the company’s report, because its export to the China via the Zabaikalsk railway station stopped in 2010, when Skovorodino- Daqing pipeline was put into operation.
According to the company, import volumes grew by 34.3% in the first six months of 2011 and amounted to 679,700 tons. Meanwhile, the report runs that the adjusted plan of Chinese goods receipt in Russia was 85% fulfilled.
A Supernational Certification Body May Be Established in the Customs Union
The non-commercial partnership Union of Industries of Railway Equipment (the NP UIRE) – founded by Russian Railways and Russia’s largest manufacturers of rolling stock – are discussing with executive authorities of the Customs Union’s member-states the opportunity to create a supernational certification body, said a representative of the NP UIRE, referring to Valentin Gapanovich, the Head of the Union, RZD’s Senior Vice President.
Also, the NP UIRE consider that it is necessary to speed up the revision of the normative and legislative base for certificating innovative developments, and the standardisation of some types of equipment, in particular, wagon bogies.
New Rules of Technical Exploitation of the Railways come into force in September
On September 22, 2011, new Rules of Technical Exploitation of the RF Railways come into force. The Rules were approved by the Ministry of Transport (Decree ¹286 dated December 21, 2010).
What separates the new Rules of Technical Exploitation of the RF Railways from the previous issue is that a business enterprise obtains the right to regulate some issues of technical exploitation and safety of infrastructure that belong to it legally. Also, this document covers non-public railway transport.
RZD established a rolling commission to continually improve the normative and legislative base. It has started to develop more than 100 documents providing fulfillment of some requirements of the Rules by the infrastructure owner. This work is supposed to be completed in September 2011.
Moreover, RZD initiated the launch of a special interdepartmental working group affiliated with the RF Transport Ministry. The Group is responsible for updating and issuing 35 normative legal acts of the state authorities, providing the fulfillment of the Rules.
Also, RZD considers it necessary to adopt on an international level a document regulating maintenance and the technical exploitation of railway transport in the CIS, Latvia, Lithuania, and Estonia. This must provide continuity in the international transportation process and harmonise all requirements for technical exploitation, taking into account national legislation.
KTZ: Plan Fulfilled
In the first half of 2011, the exploitation cargo turnover of the National Company Kazakhstan Temir Zholy (KTZ, Railways of Kazakhstan) amounted to 105.25 billion net tonne-kilometres, a 2.3% increase in comparison with the same period of 2010. The planned figure was 103.54 billion tonne-kilometres.
In this period, passenger turnover grew by 5.1% year-on-year to more than 6.5 billion passenger-kilometres. The company received a net profit of 57 billion tenges (EUR 271.7 million), which is 39% more compared with the first half of 2010.
At the meeting on the company’s results in January-June 2011, Askar Mamin, President of the KTZ, said that the results of the first half of the year let them speak of reaching all the goals the company has.
Ukrzaliznytsya: More Cargo, More Passengers
In January-August 2011, Railways of Ukraine (Ukrzaliznytsya) increased cargo transportation volume by 8.5% in comparison with the same period of 2010, to 304 million tons.
The share of transit in the total transportation volume amounted to 11.5% (34.9 million tons). In January-June 2010, this figure was 11%; and in the first eight months of 2009 it was 12%. In the described period, the growth of transit transportation volume amounted to 13%.
Railway transportation of passengers in eight months of 2011 increased slightly (+0.5% year-on-year) and amounted to 338.6 million people. In January-August 2010, there was a 0.23% decline in passenger volumes.
Railcars Are Badly Needed
In the first half of 2011, Russian enterprises produced 31,000 cargo railcars, a 41% increase compared with the same period in 2010.
Wagon production volumes in Ukraine are growing as fast as in Russia. Railcars manufactured in Ukraine are being purchased mainly by Russian companies. In January-June 2011, Ukrainian plants made 24,000 railcars (a 40% growth year-on-year).
The main reason for the rapid growth is the low figures of the first half of 2010. At the beginning of 2010, Russian and Ukrainian enterprises produced 3,500-4,000 railcars per month, however, late in 2010 the production volume increased to 5,500-5,700 wagons per month, thus the companies broke a record achieved in the USSR era. The same level remained in early 2011.
Local Transporters – a Blessing or a Curse
Specialists at RZD believe that the emergence of local railway cargo transporters in the Russian Federation will increase the loading on infrastructure and may negatively influence the safety of transportation.
“Local transporters will use locomotives in accordance with their own logistics schemes instead of the criteria of a singe technological process. This may cause a decline in the efficiency of locomotives, a rise in demand for the rolling stock park, and an increase in the number of non-productive transportation via the railway network,” runs RZD’s 2010 annual report. The company also noted that the technology of locomotive performance will have to be revised.
In the framework of the railway transport reform, the RF Government is going to establish an institute of local transporters in the country before 2015, that is rolling stock operators will be able to provide transportation using their own locomotives on some lines. This right may be given to companies after 2013, said Andrey Nedosekov, Deputy Transport Minister of Russia.
[~DETAIL_TEXT] => Alstom and Transmashholding present the EP20 locomotive
Alstom Transport and Transmashholding (TMH) have unveiled the first joint production resulting from the strategic partnership established in Russia between the two companies: an electric locomotive for EP20 passenger trains.
The locomotive’s development by a newly created joint venture – the ‘TRtrans’ engineering centre – took just seven months.
This first production will be followed in a few months by another electric locomotive: the 2ES5 locomotive designed for freight transport.
Since their alliance in 2008, the two partners have received orders for a total of 700 locomotives for Russian Railways (RZD) and Kazakhstan Railways (KTZ) totalling €3.5 billion.
The EP20 locomotive is being presented at Expo 1520, held on 7-10 September, 2011, in Moscow.
This new-generation locomotive, ordered by Russian Railways in view of the 2014 Olympic Games in Sochi, was inspired by the latest Alstom locomotive, the Prima II, and by Russian models designed and manufactured by TMH. Yet the EP20 is not a simple adaptation of existing models. It was designed specifically for the CIS market and features the very latest in technology.
The EP20 is the first triple-bogie passenger locomotive (BoBoBo) capable of operating at speeds of up to 200 km/h on both voltage systems in use in Russia. Its asynchronous motor is rated at 7200 kW, making the EP20 one of the world’s most powerful passenger train locomotives.
It was ‘winterised’ for operation under temperatures as low as minus 50° C, with components suitable for extreme conditions and preheating systems for its sensitive equipment.
The EP20 is also the first Russian locomotive equipped with a computerised cab, including driving aids, remote service diagnosis, remote maintenance and centralised data.
The locomotive’s highly efficient traction system also allows for a significant reduction in electricity consumption.
RZD Plans to Launch a Demo Train Between Khasan and Rajin
In October 2011, RZD plans to launch a demo train on the Khasan (the Russian Federation) – Rajin (the Democratic People’s Republic of Korea) railway, announced Vladimir Yakunin, President of Russian Railways during his visit to the Far Eastern Railway on September 9, 2011.
Nowadays, RZD is carrying out the project “Reconstruction of the Khasan– Rajin Railway,” which envisages reconstruction of the existing railway, construction of a cargo terminal in the Rajin port and further usage of this infrastructure to organise transit cargo transportation with a passage to the Transsiberian mainline.
“The target of the project is to restore this section of the railway and to saturate the Rajin port with containers. At present time, we are discussing coal transportation as well,” noted Mr Yakunin.
A Container Line Will Connect Estonia and Kazakhstan
A container block train is to be launched on the Estonia-Kazakhstan line at the end of 2011, said Sven Ratassepp, a spokesman for Tallinna Sadam (Port of Tallinn).
The decision was made during the visit of a special sub-commission subordinated to the intergovernmental commission for transport and transit in Estonia. According to the Estonian Ministry of Economy and Communication, the operators of the train will be Kazakhstan Temir Zholy and EVR Cargo (a subsidiary of Eesti Raudtee).
In the words of Mr Ratassepp, the port of Tallinn made Kazakhstan entrepreneurs a number of offers on cargo handling in the Estonian ports. In the future, the route may be extended from Estonia to western China.
Cargoes Go to China
In January-June of 2011, the Zabaikalskaya Railway (a subsidiary of RZD) increased the volume of export transportation to China by 37% year-on-year to 7.69 million tons.
No oil bulk is mentioned in the company’s report, because its export to the China via the Zabaikalsk railway station stopped in 2010, when Skovorodino- Daqing pipeline was put into operation.
According to the company, import volumes grew by 34.3% in the first six months of 2011 and amounted to 679,700 tons. Meanwhile, the report runs that the adjusted plan of Chinese goods receipt in Russia was 85% fulfilled.
A Supernational Certification Body May Be Established in the Customs Union
The non-commercial partnership Union of Industries of Railway Equipment (the NP UIRE) – founded by Russian Railways and Russia’s largest manufacturers of rolling stock – are discussing with executive authorities of the Customs Union’s member-states the opportunity to create a supernational certification body, said a representative of the NP UIRE, referring to Valentin Gapanovich, the Head of the Union, RZD’s Senior Vice President.
Also, the NP UIRE consider that it is necessary to speed up the revision of the normative and legislative base for certificating innovative developments, and the standardisation of some types of equipment, in particular, wagon bogies.
New Rules of Technical Exploitation of the Railways come into force in September
On September 22, 2011, new Rules of Technical Exploitation of the RF Railways come into force. The Rules were approved by the Ministry of Transport (Decree ¹286 dated December 21, 2010).
What separates the new Rules of Technical Exploitation of the RF Railways from the previous issue is that a business enterprise obtains the right to regulate some issues of technical exploitation and safety of infrastructure that belong to it legally. Also, this document covers non-public railway transport.
RZD established a rolling commission to continually improve the normative and legislative base. It has started to develop more than 100 documents providing fulfillment of some requirements of the Rules by the infrastructure owner. This work is supposed to be completed in September 2011.
Moreover, RZD initiated the launch of a special interdepartmental working group affiliated with the RF Transport Ministry. The Group is responsible for updating and issuing 35 normative legal acts of the state authorities, providing the fulfillment of the Rules.
Also, RZD considers it necessary to adopt on an international level a document regulating maintenance and the technical exploitation of railway transport in the CIS, Latvia, Lithuania, and Estonia. This must provide continuity in the international transportation process and harmonise all requirements for technical exploitation, taking into account national legislation.
KTZ: Plan Fulfilled
In the first half of 2011, the exploitation cargo turnover of the National Company Kazakhstan Temir Zholy (KTZ, Railways of Kazakhstan) amounted to 105.25 billion net tonne-kilometres, a 2.3% increase in comparison with the same period of 2010. The planned figure was 103.54 billion tonne-kilometres.
In this period, passenger turnover grew by 5.1% year-on-year to more than 6.5 billion passenger-kilometres. The company received a net profit of 57 billion tenges (EUR 271.7 million), which is 39% more compared with the first half of 2010.
At the meeting on the company’s results in January-June 2011, Askar Mamin, President of the KTZ, said that the results of the first half of the year let them speak of reaching all the goals the company has.
Ukrzaliznytsya: More Cargo, More Passengers
In January-August 2011, Railways of Ukraine (Ukrzaliznytsya) increased cargo transportation volume by 8.5% in comparison with the same period of 2010, to 304 million tons.
The share of transit in the total transportation volume amounted to 11.5% (34.9 million tons). In January-June 2010, this figure was 11%; and in the first eight months of 2009 it was 12%. In the described period, the growth of transit transportation volume amounted to 13%.
Railway transportation of passengers in eight months of 2011 increased slightly (+0.5% year-on-year) and amounted to 338.6 million people. In January-August 2010, there was a 0.23% decline in passenger volumes.
Railcars Are Badly Needed
In the first half of 2011, Russian enterprises produced 31,000 cargo railcars, a 41% increase compared with the same period in 2010.
Wagon production volumes in Ukraine are growing as fast as in Russia. Railcars manufactured in Ukraine are being purchased mainly by Russian companies. In January-June 2011, Ukrainian plants made 24,000 railcars (a 40% growth year-on-year).
The main reason for the rapid growth is the low figures of the first half of 2010. At the beginning of 2010, Russian and Ukrainian enterprises produced 3,500-4,000 railcars per month, however, late in 2010 the production volume increased to 5,500-5,700 wagons per month, thus the companies broke a record achieved in the USSR era. The same level remained in early 2011.
Local Transporters – a Blessing or a Curse
Specialists at RZD believe that the emergence of local railway cargo transporters in the Russian Federation will increase the loading on infrastructure and may negatively influence the safety of transportation.
“Local transporters will use locomotives in accordance with their own logistics schemes instead of the criteria of a singe technological process. This may cause a decline in the efficiency of locomotives, a rise in demand for the rolling stock park, and an increase in the number of non-productive transportation via the railway network,” runs RZD’s 2010 annual report. The company also noted that the technology of locomotive performance will have to be revised.
In the framework of the railway transport reform, the RF Government is going to establish an institute of local transporters in the country before 2015, that is rolling stock operators will be able to provide transportation using their own locomotives on some lines. This right may be given to companies after 2013, said Andrey Nedosekov, Deputy Transport Minister of Russia.
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[PREVIEW_TEXT] => Alstom Transport and Transmashholding (TMH) have unveiled the first joint production resulting from the strategic partnership established in Russia between the two companies: an electric locomotive for EP20 passenger trains.
The locomotive’s development by a newly created joint venture – the ‘TRtrans’ engineering centre – took just seven months.
This first production will be followed in a few months by another electric locomotive: the 2ES5 locomotive designed for freight transport.
Since their alliance in 2008, the two partners have received orders for a total of 700 locomotives for Russian Railways (RZD) and Kazakhstan Railways (KTZ) totalling ?3.5 billion.
[~PREVIEW_TEXT] => Alstom Transport and Transmashholding (TMH) have unveiled the first joint production resulting from the strategic partnership established in Russia between the two companies: an electric locomotive for EP20 passenger trains.
The locomotive’s development by a newly created joint venture – the ‘TRtrans’ engineering centre – took just seven months.
This first production will be followed in a few months by another electric locomotive: the 2ES5 locomotive designed for freight transport.
Since their alliance in 2008, the two partners have received orders for a total of 700 locomotives for Russian Railways (RZD) and Kazakhstan Railways (KTZ) totalling ?3.5 billion.
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[SECTION_META_TITLE] => Panorama Transportation
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[SECTION_META_DESCRIPTION] => Alstom Transport and Transmashholding (TMH) have unveiled the first joint production resulting from the strategic partnership established in Russia between the two companies: an electric locomotive for EP20 passenger trains.
The locomotive’s development by a newly created joint venture – the ‘TRtrans’ engineering centre – took just seven months.
This first production will be followed in a few months by another electric locomotive: the 2ES5 locomotive designed for freight transport.
Since their alliance in 2008, the two partners have received orders for a total of 700 locomotives for Russian Railways (RZD) and Kazakhstan Railways (KTZ) totalling ?3.5 billion.
[ELEMENT_META_TITLE] => Panorama Transportation
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[ELEMENT_META_DESCRIPTION] => Alstom Transport and Transmashholding (TMH) have unveiled the first joint production resulting from the strategic partnership established in Russia between the two companies: an electric locomotive for EP20 passenger trains.
The locomotive’s development by a newly created joint venture – the ‘TRtrans’ engineering centre – took just seven months.
This first production will be followed in a few months by another electric locomotive: the 2ES5 locomotive designed for freight transport.
Since their alliance in 2008, the two partners have received orders for a total of 700 locomotives for Russian Railways (RZD) and Kazakhstan Railways (KTZ) totalling ?3.5 billion.
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The throughput of the ports in the Baltic States as well as the transportation volume of Estonian, Latvian and Lithuanian railway companies between January and June of 2011 grew by 10-20% on average compared with the first half of 2010. The Baltic transport complex still remains the main link for the export of Russian cargoes. Array
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[NAME] => The Baltic Region: Signs of Recovery
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[DETAIL_TEXT] => Stable Cargo Flows Are a Characteristic Feature of Time
For many years, the activity of Baltic ports and national railway companies has depended on the export of Russian cargoes. Only the results of the Klaipeda harbour (Lithuania) are less dependent on the size of this flow. Klaipeda handles mainly goods from the Republic of Belarus and those made inside the country. Still, there is intense competition in the cargo transportation sector on the east coast of the Baltic Sea. Administrations, stevedores, and railway transporters compete with each other to attract transit from Russia. The basic cargoes are the same as 5-7 years ago: heavy and light oil products, coal, and mineral fertilisers.
The methods of attracting cargo flows are discounts on the volume to be carried and privileged railway and port tariffs. Aware that Russia is re-orienting its export cargo flows to its own ports, the Baltic States are actively fighting for freight from other countries, because they have few of their own cargoes – metal and timber in Latvia, slate in Estonia, and fertilisers in Lithuania.
Neither cargo flows nor trends changed radically in the first half of 2011. Perhaps, there appeared a move towards containerised freight, the handling volume of which increases step by step. New occurrences were handling of metal from Kazakhstan (delivered in containers) and coal at Riga, and oil from Venezuela at Tallinn harbour.
All these details should be taken into consideration when analysing the results of the first six months of 2011.
In January-June 2011, the total throughput of the ports on the east coast of the Baltic Sea amounted to 71.99 million tons (+12.8%) against 63.78 million tons in the first half of 2010. The leader in the region was the port of Tallinn, which handled 19.15 million tons (+7.1%). Klaipeda was second with 18.39 million tons (+22.5%). Riga handled 16.8 million tons (+15.3%). Then there were Ventspils with 14.48 million tons (+6.4%) and Liepaja with 2.36 million tons (+16.8%).
In Tallinn, two-thirds of cargoes are heavy oil products from Russia and Belarus, mineral fertilisers, ro-ro and containerised freight, and peat. Solid mineral fertilisers from Lithuania and Belarus make over a third of freight handled in the Klaipeda port; another third is light and heavy oil products from Belarus and Lithuania; and the rest of the cargoes serviced in the port are containers and ro-ro.
Riga is traditionally considered a transit port for coal and liquid oil products from Russian and Belarusian refineries. In Ventspils, the larger part of cargo flow consists of heavy and light oil products, coal, and mineral fertilisers from Russia. The port of Liepaja is oriented towards the export of Latvian timber and metals, metal scrap, farm products, and, to a lesser degree, liquid bulk from Belarus.
Railway companies transported 72.03 million tons of cargo (+18.9%). In the first half of 2011, the leader was Latvijas dzelzcels (LDz) which carried 29.8 million tons. Lietuvos gelezinkeliai (LG) transported 26.23 million tons (+13.9%), and Eesti Raudtee (EVR) – 15.93 million tons (+12%).
Most of the cargoes carried by LDz were oil products from Russia, Belarus and Kazakhstan, and Russian coal. Approximately 75% of the total railway transportation volume in Estonia is heavy oil products from the RF and Belarus. In the described period, the larger part of LG’s transportation volume was oil products from the refinery in Mažeikiai (Lithuania), and petrochemicals from Belarus. All in all, the share of liquid bulk in the total volume of cargoes transported was 38%. The share of Belarusian and Lithuanian mineral fertilisers was also significant, at 26%.
More Containers And Propane
The Tallinn port is the leader in the Baltic States by volume of handled cargoes. The throughput of Tallinna Sadam company, which consists of five constituent harbours – Old City Harbour, Muuga Harbour, Paldiski South Harbour, Paljassaare Harbour and Saaremaa Harbour – increased in January-June 2011 by 7.5% year-on-year. There was a rise in handling of all types of freight, except bulk commodities.
In the first half of 2011, the port of Tallinn handled 14.3 million tons of liquid bulk (+15%), which made 74.4% of the port’s total throughput. Of that, the port handled 13.58 million tons (+10.2%) of oil products (mainly fuel oil), and 557,000 tons of crude oil (+106.4%). There were 15.5 million tons of transit cargo (+7%), 1.8 million tons of exports (+15%), and 1.8 million tons of imports (-6%).
According to Natalya Baidina, Business Manager for liquid bulk at Tallinna Sadam company, the growth in oil products handling volume in the first half of 2011 became possible due to the transportation of Russian and Belarusian fuel oil via the port, and the import of Venezuelan oil destined for Belarus. In the first half of 2010, the port did not handle crude oil at all – it appeared at Muuga harbour at the end of the summer of 2010. Since then, the port has handled 80,000 tons of this cargo a month. The administration plans that the port will service a tanker each month till the end of 2011.
The logistics of this project – oil reception in the port, handling, and dispatch by railway to Belarus – are considered perfect. Although, market players say that the supplies may be stopped at any moment.
In January to June, the Tallinn port handled 2.99 million tons of general cargoes (+13.5%). In the six months, the port’s container turnover amounted to 92,165 TEU (+23%). The port serviced 727,700 tons of containerised freight (+11%), and 1.9 million tons of ro-ro cargoes (+10%).
However, a negative trend was registered in the sector of bulk commodities transportation – their numbers fell by 33.5% year-on-year to 1.88 million tons. The representatives of the company said that the cut in transportation of fertilisers, metals, and coal by 12.3%, 36%, and 82.4% respectively was caused by RZD’s lack of confirmation of its transportation plans.
Klaipeda as Belarus’s Sea Gate
The Klaipeda port occupies second position in the rating. Its throughput in the first half of 2011 was 18.4 million tons (+22.6%). The management policy, constant development of infrastructure, and a flexible system of port dues allow this harbour (the only port in Lithuania. There are three ports in Latvia, and five in Estonia) to continually improve its results.
There was an increase in handling of all cargoes, however, the throughput of Lithuanian and Belarusian fertilisers grew most – to 4 million tons (+38.2%) as well as that of containers – up to 210,604 TEU (+49.3%). According to volume handled, Klasco stevedoring company is the leader in the port. Klasco specialises in liquid and solid fertilisers, ro-ro cargoes etc. In the first half of 2011, it handled more than 6 million tons of cargo. Klaipedos Nafta occupies second position in the list. The company specialises in handling oil products, and in the discussed period it serviced more than 4 million tons of cargo. Bega company is third – in January-June 2011 its throughput was 2 million tons.
7.04 million tons of bulk cargoes (+25.9%) was handled in the port in the first six months of 2011, which was 38.2% of the port’s total throughput. Also, the port handled 5.71 million tons of general cargoes (+23.3%), which was 31.03% of the total throughput, and 5.6 million tons of liquid oil products (+18.2%), or 30.8% of the total throughput.
Lithuanian cargoes (fertilisers, construction materials, commodities) make 60% of the port’s total handling volume; the rest is Russian, Belarusian, and Ukrainian production. Most of the oil products are delivered from the refinery in Mažeikiai owned by PKN Orlen.
Fertilisers make up almost 50% of the total volume. Practically all of them are produced in Lithuania. The flows of cargo from Belkali and fertilisers from Russia have increased lately. No wonder that Klaipeda is named the main port for Belarusian cargoes. As for containers, local production is loaded into 50% of boxes in the port. A half of ro-ro cargo consists of goods produced in Lithuania as well.
The port remained the leader by container turnover in the region. In January-June 2011, it handled 210,604 TEU (+49.3%). Riga port serviced 143,209 TEU (+23.6%) and Tallinn handled 92,165 TEU (+22.5%).
Coal and Oil Products in Latvia
Latvian ports service half of the cargoes handled in the ports of the east coast of the Baltic Sea. The throughput of Latvia’s three largest ports – Riga, Ventspils, and Liepaja – amounted to 34.45 million tons in January-June 2011 (+11.5%). Traditionally, the Republic’s ports handle a lot of break bulk cargoes. In the first half of 2011, their number grew by 9% year-on-year to 15.97 million tons, which was 46.3% of the total volume handled in the three ports. Of that, there were 9.54 million tons of coal (+20.4%), which is transported from Russia to the terminals in Riga (which serviced 6.45 million tons in January-June 2011) and Ventspils (serviced 2.99 million tons). Both ports recorded a rising dynamic in the handling volume of this cargo because after the Japan’s Fukushima catastrophe the demand for this fuel grew on the global market.
In the discussed period, the ports of Riga, Ventspils, and Liepaja handled 12.42 million tons (+13.5%) of liquid oil products (both heavy and light), which was 36% of the total volume of all cargoes carried via Latvian ports. Of that, 7.43 million tons of oil products was transported via the Ventspils port, and 4.28 million tons via Riga.
There was a significant increase in oil products handling volumes in the port of Riga – 4.2 million tons (+45.2%). In the words of Vladimir Makarovs, Head of the Strategic Planning Department at the Freeport of Riga, cargoes always find the most profitable places for being handled. Also, Russian, Kazakhstan, and Belarusian cargo owners have increased export volumes. Latvian stevedores have enlarged the capacity of the park for oil products storage.
As for the most promising freight – containers, – 141,730 TEU (+22.8%) was serviced in the port. The growth was caused by the increase of internal competition at Riga: there are three companies now specialising in “box” handling: Baltic Container Terminal, Rigas Universalais Terminals, and Rigas Centralais Terminals.
Mr Makarovs emphasised that the results of the first six months should not be regarded as conclusive, because there have been no clear-cut tendencies so far. And besides, last winter was pretty severe in Riga. In particular, in February, the port failed to receive and unload/load about 30% of vessels because they were not of the required ice-class.
The situation was favourable, however, for LDz Cargo, a subsidiary of Latvijas dzelzcels. In January-June 2011, its transportation volume increased by 18.2% year-on-year. Guntis Machs, Chairman of the Board of LDz Cargo, believes that the market situation had a positive effect on the company’s results. The volume of almost all cargoes carried by the company increased. There was a decline only in grain transportation, because Russia put a ban on its export.
by Natalia Don
[~DETAIL_TEXT] => Stable Cargo Flows Are a Characteristic Feature of Time
For many years, the activity of Baltic ports and national railway companies has depended on the export of Russian cargoes. Only the results of the Klaipeda harbour (Lithuania) are less dependent on the size of this flow. Klaipeda handles mainly goods from the Republic of Belarus and those made inside the country. Still, there is intense competition in the cargo transportation sector on the east coast of the Baltic Sea. Administrations, stevedores, and railway transporters compete with each other to attract transit from Russia. The basic cargoes are the same as 5-7 years ago: heavy and light oil products, coal, and mineral fertilisers.
The methods of attracting cargo flows are discounts on the volume to be carried and privileged railway and port tariffs. Aware that Russia is re-orienting its export cargo flows to its own ports, the Baltic States are actively fighting for freight from other countries, because they have few of their own cargoes – metal and timber in Latvia, slate in Estonia, and fertilisers in Lithuania.
Neither cargo flows nor trends changed radically in the first half of 2011. Perhaps, there appeared a move towards containerised freight, the handling volume of which increases step by step. New occurrences were handling of metal from Kazakhstan (delivered in containers) and coal at Riga, and oil from Venezuela at Tallinn harbour.
All these details should be taken into consideration when analysing the results of the first six months of 2011.
In January-June 2011, the total throughput of the ports on the east coast of the Baltic Sea amounted to 71.99 million tons (+12.8%) against 63.78 million tons in the first half of 2010. The leader in the region was the port of Tallinn, which handled 19.15 million tons (+7.1%). Klaipeda was second with 18.39 million tons (+22.5%). Riga handled 16.8 million tons (+15.3%). Then there were Ventspils with 14.48 million tons (+6.4%) and Liepaja with 2.36 million tons (+16.8%).
In Tallinn, two-thirds of cargoes are heavy oil products from Russia and Belarus, mineral fertilisers, ro-ro and containerised freight, and peat. Solid mineral fertilisers from Lithuania and Belarus make over a third of freight handled in the Klaipeda port; another third is light and heavy oil products from Belarus and Lithuania; and the rest of the cargoes serviced in the port are containers and ro-ro.
Riga is traditionally considered a transit port for coal and liquid oil products from Russian and Belarusian refineries. In Ventspils, the larger part of cargo flow consists of heavy and light oil products, coal, and mineral fertilisers from Russia. The port of Liepaja is oriented towards the export of Latvian timber and metals, metal scrap, farm products, and, to a lesser degree, liquid bulk from Belarus.
Railway companies transported 72.03 million tons of cargo (+18.9%). In the first half of 2011, the leader was Latvijas dzelzcels (LDz) which carried 29.8 million tons. Lietuvos gelezinkeliai (LG) transported 26.23 million tons (+13.9%), and Eesti Raudtee (EVR) – 15.93 million tons (+12%).
Most of the cargoes carried by LDz were oil products from Russia, Belarus and Kazakhstan, and Russian coal. Approximately 75% of the total railway transportation volume in Estonia is heavy oil products from the RF and Belarus. In the described period, the larger part of LG’s transportation volume was oil products from the refinery in Mažeikiai (Lithuania), and petrochemicals from Belarus. All in all, the share of liquid bulk in the total volume of cargoes transported was 38%. The share of Belarusian and Lithuanian mineral fertilisers was also significant, at 26%.
More Containers And Propane
The Tallinn port is the leader in the Baltic States by volume of handled cargoes. The throughput of Tallinna Sadam company, which consists of five constituent harbours – Old City Harbour, Muuga Harbour, Paldiski South Harbour, Paljassaare Harbour and Saaremaa Harbour – increased in January-June 2011 by 7.5% year-on-year. There was a rise in handling of all types of freight, except bulk commodities.
In the first half of 2011, the port of Tallinn handled 14.3 million tons of liquid bulk (+15%), which made 74.4% of the port’s total throughput. Of that, the port handled 13.58 million tons (+10.2%) of oil products (mainly fuel oil), and 557,000 tons of crude oil (+106.4%). There were 15.5 million tons of transit cargo (+7%), 1.8 million tons of exports (+15%), and 1.8 million tons of imports (-6%).
According to Natalya Baidina, Business Manager for liquid bulk at Tallinna Sadam company, the growth in oil products handling volume in the first half of 2011 became possible due to the transportation of Russian and Belarusian fuel oil via the port, and the import of Venezuelan oil destined for Belarus. In the first half of 2010, the port did not handle crude oil at all – it appeared at Muuga harbour at the end of the summer of 2010. Since then, the port has handled 80,000 tons of this cargo a month. The administration plans that the port will service a tanker each month till the end of 2011.
The logistics of this project – oil reception in the port, handling, and dispatch by railway to Belarus – are considered perfect. Although, market players say that the supplies may be stopped at any moment.
In January to June, the Tallinn port handled 2.99 million tons of general cargoes (+13.5%). In the six months, the port’s container turnover amounted to 92,165 TEU (+23%). The port serviced 727,700 tons of containerised freight (+11%), and 1.9 million tons of ro-ro cargoes (+10%).
However, a negative trend was registered in the sector of bulk commodities transportation – their numbers fell by 33.5% year-on-year to 1.88 million tons. The representatives of the company said that the cut in transportation of fertilisers, metals, and coal by 12.3%, 36%, and 82.4% respectively was caused by RZD’s lack of confirmation of its transportation plans.
Klaipeda as Belarus’s Sea Gate
The Klaipeda port occupies second position in the rating. Its throughput in the first half of 2011 was 18.4 million tons (+22.6%). The management policy, constant development of infrastructure, and a flexible system of port dues allow this harbour (the only port in Lithuania. There are three ports in Latvia, and five in Estonia) to continually improve its results.
There was an increase in handling of all cargoes, however, the throughput of Lithuanian and Belarusian fertilisers grew most – to 4 million tons (+38.2%) as well as that of containers – up to 210,604 TEU (+49.3%). According to volume handled, Klasco stevedoring company is the leader in the port. Klasco specialises in liquid and solid fertilisers, ro-ro cargoes etc. In the first half of 2011, it handled more than 6 million tons of cargo. Klaipedos Nafta occupies second position in the list. The company specialises in handling oil products, and in the discussed period it serviced more than 4 million tons of cargo. Bega company is third – in January-June 2011 its throughput was 2 million tons.
7.04 million tons of bulk cargoes (+25.9%) was handled in the port in the first six months of 2011, which was 38.2% of the port’s total throughput. Also, the port handled 5.71 million tons of general cargoes (+23.3%), which was 31.03% of the total throughput, and 5.6 million tons of liquid oil products (+18.2%), or 30.8% of the total throughput.
Lithuanian cargoes (fertilisers, construction materials, commodities) make 60% of the port’s total handling volume; the rest is Russian, Belarusian, and Ukrainian production. Most of the oil products are delivered from the refinery in Mažeikiai owned by PKN Orlen.
Fertilisers make up almost 50% of the total volume. Practically all of them are produced in Lithuania. The flows of cargo from Belkali and fertilisers from Russia have increased lately. No wonder that Klaipeda is named the main port for Belarusian cargoes. As for containers, local production is loaded into 50% of boxes in the port. A half of ro-ro cargo consists of goods produced in Lithuania as well.
The port remained the leader by container turnover in the region. In January-June 2011, it handled 210,604 TEU (+49.3%). Riga port serviced 143,209 TEU (+23.6%) and Tallinn handled 92,165 TEU (+22.5%).
Coal and Oil Products in Latvia
Latvian ports service half of the cargoes handled in the ports of the east coast of the Baltic Sea. The throughput of Latvia’s three largest ports – Riga, Ventspils, and Liepaja – amounted to 34.45 million tons in January-June 2011 (+11.5%). Traditionally, the Republic’s ports handle a lot of break bulk cargoes. In the first half of 2011, their number grew by 9% year-on-year to 15.97 million tons, which was 46.3% of the total volume handled in the three ports. Of that, there were 9.54 million tons of coal (+20.4%), which is transported from Russia to the terminals in Riga (which serviced 6.45 million tons in January-June 2011) and Ventspils (serviced 2.99 million tons). Both ports recorded a rising dynamic in the handling volume of this cargo because after the Japan’s Fukushima catastrophe the demand for this fuel grew on the global market.
In the discussed period, the ports of Riga, Ventspils, and Liepaja handled 12.42 million tons (+13.5%) of liquid oil products (both heavy and light), which was 36% of the total volume of all cargoes carried via Latvian ports. Of that, 7.43 million tons of oil products was transported via the Ventspils port, and 4.28 million tons via Riga.
There was a significant increase in oil products handling volumes in the port of Riga – 4.2 million tons (+45.2%). In the words of Vladimir Makarovs, Head of the Strategic Planning Department at the Freeport of Riga, cargoes always find the most profitable places for being handled. Also, Russian, Kazakhstan, and Belarusian cargo owners have increased export volumes. Latvian stevedores have enlarged the capacity of the park for oil products storage.
As for the most promising freight – containers, – 141,730 TEU (+22.8%) was serviced in the port. The growth was caused by the increase of internal competition at Riga: there are three companies now specialising in “box” handling: Baltic Container Terminal, Rigas Universalais Terminals, and Rigas Centralais Terminals.
Mr Makarovs emphasised that the results of the first six months should not be regarded as conclusive, because there have been no clear-cut tendencies so far. And besides, last winter was pretty severe in Riga. In particular, in February, the port failed to receive and unload/load about 30% of vessels because they were not of the required ice-class.
The situation was favourable, however, for LDz Cargo, a subsidiary of Latvijas dzelzcels. In January-June 2011, its transportation volume increased by 18.2% year-on-year. Guntis Machs, Chairman of the Board of LDz Cargo, believes that the market situation had a positive effect on the company’s results. The volume of almost all cargoes carried by the company increased. There was a decline only in grain transportation, because Russia put a ban on its export.
by Natalia Don
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And there is a serious fight for them in the region.
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And there is a serious fight for them in the region.
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[SECTION_META_TITLE] => The Baltic Region: Signs of Recovery
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[SECTION_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2011/3/10.jpg" border="0" alt=" " width="300" height="201" />The throughput of the ports in the Baltic States as well as the transportation volume of Estonian, Latvian and Lithuanian railway companies between January and June of 2011 grew by 10-20% on average compared with the first half of 2010. The Baltic transport complex still remains the main link for the export of Russian cargoes. <br />And there is a serious fight for them in the region.
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[DETAIL_TEXT] => Stable Cargo Flows Are a Characteristic Feature of Time
For many years, the activity of Baltic ports and national railway companies has depended on the export of Russian cargoes. Only the results of the Klaipeda harbour (Lithuania) are less dependent on the size of this flow. Klaipeda handles mainly goods from the Republic of Belarus and those made inside the country. Still, there is intense competition in the cargo transportation sector on the east coast of the Baltic Sea. Administrations, stevedores, and railway transporters compete with each other to attract transit from Russia. The basic cargoes are the same as 5-7 years ago: heavy and light oil products, coal, and mineral fertilisers.
The methods of attracting cargo flows are discounts on the volume to be carried and privileged railway and port tariffs. Aware that Russia is re-orienting its export cargo flows to its own ports, the Baltic States are actively fighting for freight from other countries, because they have few of their own cargoes – metal and timber in Latvia, slate in Estonia, and fertilisers in Lithuania.
Neither cargo flows nor trends changed radically in the first half of 2011. Perhaps, there appeared a move towards containerised freight, the handling volume of which increases step by step. New occurrences were handling of metal from Kazakhstan (delivered in containers) and coal at Riga, and oil from Venezuela at Tallinn harbour.
All these details should be taken into consideration when analysing the results of the first six months of 2011.
In January-June 2011, the total throughput of the ports on the east coast of the Baltic Sea amounted to 71.99 million tons (+12.8%) against 63.78 million tons in the first half of 2010. The leader in the region was the port of Tallinn, which handled 19.15 million tons (+7.1%). Klaipeda was second with 18.39 million tons (+22.5%). Riga handled 16.8 million tons (+15.3%). Then there were Ventspils with 14.48 million tons (+6.4%) and Liepaja with 2.36 million tons (+16.8%).
In Tallinn, two-thirds of cargoes are heavy oil products from Russia and Belarus, mineral fertilisers, ro-ro and containerised freight, and peat. Solid mineral fertilisers from Lithuania and Belarus make over a third of freight handled in the Klaipeda port; another third is light and heavy oil products from Belarus and Lithuania; and the rest of the cargoes serviced in the port are containers and ro-ro.
Riga is traditionally considered a transit port for coal and liquid oil products from Russian and Belarusian refineries. In Ventspils, the larger part of cargo flow consists of heavy and light oil products, coal, and mineral fertilisers from Russia. The port of Liepaja is oriented towards the export of Latvian timber and metals, metal scrap, farm products, and, to a lesser degree, liquid bulk from Belarus.
Railway companies transported 72.03 million tons of cargo (+18.9%). In the first half of 2011, the leader was Latvijas dzelzcels (LDz) which carried 29.8 million tons. Lietuvos gelezinkeliai (LG) transported 26.23 million tons (+13.9%), and Eesti Raudtee (EVR) – 15.93 million tons (+12%).
Most of the cargoes carried by LDz were oil products from Russia, Belarus and Kazakhstan, and Russian coal. Approximately 75% of the total railway transportation volume in Estonia is heavy oil products from the RF and Belarus. In the described period, the larger part of LG’s transportation volume was oil products from the refinery in Mažeikiai (Lithuania), and petrochemicals from Belarus. All in all, the share of liquid bulk in the total volume of cargoes transported was 38%. The share of Belarusian and Lithuanian mineral fertilisers was also significant, at 26%.
More Containers And Propane
The Tallinn port is the leader in the Baltic States by volume of handled cargoes. The throughput of Tallinna Sadam company, which consists of five constituent harbours – Old City Harbour, Muuga Harbour, Paldiski South Harbour, Paljassaare Harbour and Saaremaa Harbour – increased in January-June 2011 by 7.5% year-on-year. There was a rise in handling of all types of freight, except bulk commodities.
In the first half of 2011, the port of Tallinn handled 14.3 million tons of liquid bulk (+15%), which made 74.4% of the port’s total throughput. Of that, the port handled 13.58 million tons (+10.2%) of oil products (mainly fuel oil), and 557,000 tons of crude oil (+106.4%). There were 15.5 million tons of transit cargo (+7%), 1.8 million tons of exports (+15%), and 1.8 million tons of imports (-6%).
According to Natalya Baidina, Business Manager for liquid bulk at Tallinna Sadam company, the growth in oil products handling volume in the first half of 2011 became possible due to the transportation of Russian and Belarusian fuel oil via the port, and the import of Venezuelan oil destined for Belarus. In the first half of 2010, the port did not handle crude oil at all – it appeared at Muuga harbour at the end of the summer of 2010. Since then, the port has handled 80,000 tons of this cargo a month. The administration plans that the port will service a tanker each month till the end of 2011.
The logistics of this project – oil reception in the port, handling, and dispatch by railway to Belarus – are considered perfect. Although, market players say that the supplies may be stopped at any moment.
In January to June, the Tallinn port handled 2.99 million tons of general cargoes (+13.5%). In the six months, the port’s container turnover amounted to 92,165 TEU (+23%). The port serviced 727,700 tons of containerised freight (+11%), and 1.9 million tons of ro-ro cargoes (+10%).
However, a negative trend was registered in the sector of bulk commodities transportation – their numbers fell by 33.5% year-on-year to 1.88 million tons. The representatives of the company said that the cut in transportation of fertilisers, metals, and coal by 12.3%, 36%, and 82.4% respectively was caused by RZD’s lack of confirmation of its transportation plans.
Klaipeda as Belarus’s Sea Gate
The Klaipeda port occupies second position in the rating. Its throughput in the first half of 2011 was 18.4 million tons (+22.6%). The management policy, constant development of infrastructure, and a flexible system of port dues allow this harbour (the only port in Lithuania. There are three ports in Latvia, and five in Estonia) to continually improve its results.
There was an increase in handling of all cargoes, however, the throughput of Lithuanian and Belarusian fertilisers grew most – to 4 million tons (+38.2%) as well as that of containers – up to 210,604 TEU (+49.3%). According to volume handled, Klasco stevedoring company is the leader in the port. Klasco specialises in liquid and solid fertilisers, ro-ro cargoes etc. In the first half of 2011, it handled more than 6 million tons of cargo. Klaipedos Nafta occupies second position in the list. The company specialises in handling oil products, and in the discussed period it serviced more than 4 million tons of cargo. Bega company is third – in January-June 2011 its throughput was 2 million tons.
7.04 million tons of bulk cargoes (+25.9%) was handled in the port in the first six months of 2011, which was 38.2% of the port’s total throughput. Also, the port handled 5.71 million tons of general cargoes (+23.3%), which was 31.03% of the total throughput, and 5.6 million tons of liquid oil products (+18.2%), or 30.8% of the total throughput.
Lithuanian cargoes (fertilisers, construction materials, commodities) make 60% of the port’s total handling volume; the rest is Russian, Belarusian, and Ukrainian production. Most of the oil products are delivered from the refinery in Mažeikiai owned by PKN Orlen.
Fertilisers make up almost 50% of the total volume. Practically all of them are produced in Lithuania. The flows of cargo from Belkali and fertilisers from Russia have increased lately. No wonder that Klaipeda is named the main port for Belarusian cargoes. As for containers, local production is loaded into 50% of boxes in the port. A half of ro-ro cargo consists of goods produced in Lithuania as well.
The port remained the leader by container turnover in the region. In January-June 2011, it handled 210,604 TEU (+49.3%). Riga port serviced 143,209 TEU (+23.6%) and Tallinn handled 92,165 TEU (+22.5%).
Coal and Oil Products in Latvia
Latvian ports service half of the cargoes handled in the ports of the east coast of the Baltic Sea. The throughput of Latvia’s three largest ports – Riga, Ventspils, and Liepaja – amounted to 34.45 million tons in January-June 2011 (+11.5%). Traditionally, the Republic’s ports handle a lot of break bulk cargoes. In the first half of 2011, their number grew by 9% year-on-year to 15.97 million tons, which was 46.3% of the total volume handled in the three ports. Of that, there were 9.54 million tons of coal (+20.4%), which is transported from Russia to the terminals in Riga (which serviced 6.45 million tons in January-June 2011) and Ventspils (serviced 2.99 million tons). Both ports recorded a rising dynamic in the handling volume of this cargo because after the Japan’s Fukushima catastrophe the demand for this fuel grew on the global market.
In the discussed period, the ports of Riga, Ventspils, and Liepaja handled 12.42 million tons (+13.5%) of liquid oil products (both heavy and light), which was 36% of the total volume of all cargoes carried via Latvian ports. Of that, 7.43 million tons of oil products was transported via the Ventspils port, and 4.28 million tons via Riga.
There was a significant increase in oil products handling volumes in the port of Riga – 4.2 million tons (+45.2%). In the words of Vladimir Makarovs, Head of the Strategic Planning Department at the Freeport of Riga, cargoes always find the most profitable places for being handled. Also, Russian, Kazakhstan, and Belarusian cargo owners have increased export volumes. Latvian stevedores have enlarged the capacity of the park for oil products storage.
As for the most promising freight – containers, – 141,730 TEU (+22.8%) was serviced in the port. The growth was caused by the increase of internal competition at Riga: there are three companies now specialising in “box” handling: Baltic Container Terminal, Rigas Universalais Terminals, and Rigas Centralais Terminals.
Mr Makarovs emphasised that the results of the first six months should not be regarded as conclusive, because there have been no clear-cut tendencies so far. And besides, last winter was pretty severe in Riga. In particular, in February, the port failed to receive and unload/load about 30% of vessels because they were not of the required ice-class.
The situation was favourable, however, for LDz Cargo, a subsidiary of Latvijas dzelzcels. In January-June 2011, its transportation volume increased by 18.2% year-on-year. Guntis Machs, Chairman of the Board of LDz Cargo, believes that the market situation had a positive effect on the company’s results. The volume of almost all cargoes carried by the company increased. There was a decline only in grain transportation, because Russia put a ban on its export.
by Natalia Don
[~DETAIL_TEXT] => Stable Cargo Flows Are a Characteristic Feature of Time
For many years, the activity of Baltic ports and national railway companies has depended on the export of Russian cargoes. Only the results of the Klaipeda harbour (Lithuania) are less dependent on the size of this flow. Klaipeda handles mainly goods from the Republic of Belarus and those made inside the country. Still, there is intense competition in the cargo transportation sector on the east coast of the Baltic Sea. Administrations, stevedores, and railway transporters compete with each other to attract transit from Russia. The basic cargoes are the same as 5-7 years ago: heavy and light oil products, coal, and mineral fertilisers.
The methods of attracting cargo flows are discounts on the volume to be carried and privileged railway and port tariffs. Aware that Russia is re-orienting its export cargo flows to its own ports, the Baltic States are actively fighting for freight from other countries, because they have few of their own cargoes – metal and timber in Latvia, slate in Estonia, and fertilisers in Lithuania.
Neither cargo flows nor trends changed radically in the first half of 2011. Perhaps, there appeared a move towards containerised freight, the handling volume of which increases step by step. New occurrences were handling of metal from Kazakhstan (delivered in containers) and coal at Riga, and oil from Venezuela at Tallinn harbour.
All these details should be taken into consideration when analysing the results of the first six months of 2011.
In January-June 2011, the total throughput of the ports on the east coast of the Baltic Sea amounted to 71.99 million tons (+12.8%) against 63.78 million tons in the first half of 2010. The leader in the region was the port of Tallinn, which handled 19.15 million tons (+7.1%). Klaipeda was second with 18.39 million tons (+22.5%). Riga handled 16.8 million tons (+15.3%). Then there were Ventspils with 14.48 million tons (+6.4%) and Liepaja with 2.36 million tons (+16.8%).
In Tallinn, two-thirds of cargoes are heavy oil products from Russia and Belarus, mineral fertilisers, ro-ro and containerised freight, and peat. Solid mineral fertilisers from Lithuania and Belarus make over a third of freight handled in the Klaipeda port; another third is light and heavy oil products from Belarus and Lithuania; and the rest of the cargoes serviced in the port are containers and ro-ro.
Riga is traditionally considered a transit port for coal and liquid oil products from Russian and Belarusian refineries. In Ventspils, the larger part of cargo flow consists of heavy and light oil products, coal, and mineral fertilisers from Russia. The port of Liepaja is oriented towards the export of Latvian timber and metals, metal scrap, farm products, and, to a lesser degree, liquid bulk from Belarus.
Railway companies transported 72.03 million tons of cargo (+18.9%). In the first half of 2011, the leader was Latvijas dzelzcels (LDz) which carried 29.8 million tons. Lietuvos gelezinkeliai (LG) transported 26.23 million tons (+13.9%), and Eesti Raudtee (EVR) – 15.93 million tons (+12%).
Most of the cargoes carried by LDz were oil products from Russia, Belarus and Kazakhstan, and Russian coal. Approximately 75% of the total railway transportation volume in Estonia is heavy oil products from the RF and Belarus. In the described period, the larger part of LG’s transportation volume was oil products from the refinery in Mažeikiai (Lithuania), and petrochemicals from Belarus. All in all, the share of liquid bulk in the total volume of cargoes transported was 38%. The share of Belarusian and Lithuanian mineral fertilisers was also significant, at 26%.
More Containers And Propane
The Tallinn port is the leader in the Baltic States by volume of handled cargoes. The throughput of Tallinna Sadam company, which consists of five constituent harbours – Old City Harbour, Muuga Harbour, Paldiski South Harbour, Paljassaare Harbour and Saaremaa Harbour – increased in January-June 2011 by 7.5% year-on-year. There was a rise in handling of all types of freight, except bulk commodities.
In the first half of 2011, the port of Tallinn handled 14.3 million tons of liquid bulk (+15%), which made 74.4% of the port’s total throughput. Of that, the port handled 13.58 million tons (+10.2%) of oil products (mainly fuel oil), and 557,000 tons of crude oil (+106.4%). There were 15.5 million tons of transit cargo (+7%), 1.8 million tons of exports (+15%), and 1.8 million tons of imports (-6%).
According to Natalya Baidina, Business Manager for liquid bulk at Tallinna Sadam company, the growth in oil products handling volume in the first half of 2011 became possible due to the transportation of Russian and Belarusian fuel oil via the port, and the import of Venezuelan oil destined for Belarus. In the first half of 2010, the port did not handle crude oil at all – it appeared at Muuga harbour at the end of the summer of 2010. Since then, the port has handled 80,000 tons of this cargo a month. The administration plans that the port will service a tanker each month till the end of 2011.
The logistics of this project – oil reception in the port, handling, and dispatch by railway to Belarus – are considered perfect. Although, market players say that the supplies may be stopped at any moment.
In January to June, the Tallinn port handled 2.99 million tons of general cargoes (+13.5%). In the six months, the port’s container turnover amounted to 92,165 TEU (+23%). The port serviced 727,700 tons of containerised freight (+11%), and 1.9 million tons of ro-ro cargoes (+10%).
However, a negative trend was registered in the sector of bulk commodities transportation – their numbers fell by 33.5% year-on-year to 1.88 million tons. The representatives of the company said that the cut in transportation of fertilisers, metals, and coal by 12.3%, 36%, and 82.4% respectively was caused by RZD’s lack of confirmation of its transportation plans.
Klaipeda as Belarus’s Sea Gate
The Klaipeda port occupies second position in the rating. Its throughput in the first half of 2011 was 18.4 million tons (+22.6%). The management policy, constant development of infrastructure, and a flexible system of port dues allow this harbour (the only port in Lithuania. There are three ports in Latvia, and five in Estonia) to continually improve its results.
There was an increase in handling of all cargoes, however, the throughput of Lithuanian and Belarusian fertilisers grew most – to 4 million tons (+38.2%) as well as that of containers – up to 210,604 TEU (+49.3%). According to volume handled, Klasco stevedoring company is the leader in the port. Klasco specialises in liquid and solid fertilisers, ro-ro cargoes etc. In the first half of 2011, it handled more than 6 million tons of cargo. Klaipedos Nafta occupies second position in the list. The company specialises in handling oil products, and in the discussed period it serviced more than 4 million tons of cargo. Bega company is third – in January-June 2011 its throughput was 2 million tons.
7.04 million tons of bulk cargoes (+25.9%) was handled in the port in the first six months of 2011, which was 38.2% of the port’s total throughput. Also, the port handled 5.71 million tons of general cargoes (+23.3%), which was 31.03% of the total throughput, and 5.6 million tons of liquid oil products (+18.2%), or 30.8% of the total throughput.
Lithuanian cargoes (fertilisers, construction materials, commodities) make 60% of the port’s total handling volume; the rest is Russian, Belarusian, and Ukrainian production. Most of the oil products are delivered from the refinery in Mažeikiai owned by PKN Orlen.
Fertilisers make up almost 50% of the total volume. Practically all of them are produced in Lithuania. The flows of cargo from Belkali and fertilisers from Russia have increased lately. No wonder that Klaipeda is named the main port for Belarusian cargoes. As for containers, local production is loaded into 50% of boxes in the port. A half of ro-ro cargo consists of goods produced in Lithuania as well.
The port remained the leader by container turnover in the region. In January-June 2011, it handled 210,604 TEU (+49.3%). Riga port serviced 143,209 TEU (+23.6%) and Tallinn handled 92,165 TEU (+22.5%).
Coal and Oil Products in Latvia
Latvian ports service half of the cargoes handled in the ports of the east coast of the Baltic Sea. The throughput of Latvia’s three largest ports – Riga, Ventspils, and Liepaja – amounted to 34.45 million tons in January-June 2011 (+11.5%). Traditionally, the Republic’s ports handle a lot of break bulk cargoes. In the first half of 2011, their number grew by 9% year-on-year to 15.97 million tons, which was 46.3% of the total volume handled in the three ports. Of that, there were 9.54 million tons of coal (+20.4%), which is transported from Russia to the terminals in Riga (which serviced 6.45 million tons in January-June 2011) and Ventspils (serviced 2.99 million tons). Both ports recorded a rising dynamic in the handling volume of this cargo because after the Japan’s Fukushima catastrophe the demand for this fuel grew on the global market.
In the discussed period, the ports of Riga, Ventspils, and Liepaja handled 12.42 million tons (+13.5%) of liquid oil products (both heavy and light), which was 36% of the total volume of all cargoes carried via Latvian ports. Of that, 7.43 million tons of oil products was transported via the Ventspils port, and 4.28 million tons via Riga.
There was a significant increase in oil products handling volumes in the port of Riga – 4.2 million tons (+45.2%). In the words of Vladimir Makarovs, Head of the Strategic Planning Department at the Freeport of Riga, cargoes always find the most profitable places for being handled. Also, Russian, Kazakhstan, and Belarusian cargo owners have increased export volumes. Latvian stevedores have enlarged the capacity of the park for oil products storage.
As for the most promising freight – containers, – 141,730 TEU (+22.8%) was serviced in the port. The growth was caused by the increase of internal competition at Riga: there are three companies now specialising in “box” handling: Baltic Container Terminal, Rigas Universalais Terminals, and Rigas Centralais Terminals.
Mr Makarovs emphasised that the results of the first six months should not be regarded as conclusive, because there have been no clear-cut tendencies so far. And besides, last winter was pretty severe in Riga. In particular, in February, the port failed to receive and unload/load about 30% of vessels because they were not of the required ice-class.
The situation was favourable, however, for LDz Cargo, a subsidiary of Latvijas dzelzcels. In January-June 2011, its transportation volume increased by 18.2% year-on-year. Guntis Machs, Chairman of the Board of LDz Cargo, believes that the market situation had a positive effect on the company’s results. The volume of almost all cargoes carried by the company increased. There was a decline only in grain transportation, because Russia put a ban on its export.
by Natalia Don
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And there is a serious fight for them in the region.
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And there is a serious fight for them in the region.
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[DETAIL_TEXT] => The game is Worth Playing
A year before the Olympics, in 2013, the capital of Tatarstan will meet participants and guests of the XXVII World Summer Universiade. In importance and number of competitors this tournament is second only to the Olympics. More than 12,000 athletes and delegation members from 170 countries, more than 1,500 members of the media and about 100,000 tourists and sport fans from Russia and abroad are expected to go to Kazan to take part in the event.
The country’s government has repeatedly stated that the Universiade in Tatarstan is one of the major international projects of the Russian Federation, along with the Olympic Games in Sochi and the APEC summit.
Whatever else is said about the great love for sports, such events of this level are organized not just for the competition itself, say the initiators of the Universiade in Kazan. Here we should consider the prestige of the republic and the status of the country in general. And speaking of material goals, we should also remember the attraction of billions in investment in the short term.
In this sense, the game is really worth playing; enough funds are planned to be invested in the development of the capital Tatarstan to ensure that preparations meet the requirements of the International University Sports Federation (FISU), the main one being fast, safe and comfortable travel for participants and guests of the competition.
As regional officials say they will do everything possible to avoid losing face in front of athletes who will travel to Kazan, inspired by looming 2012 London Olympics and also the Universiade in the Chinese city of Shenzhen in 2011. Moreover, according to their assurances, this World Sport Student Games in Kazan will be the best in the history of Universiades.
A Lot of Plans – a Little Money
Оbviously, to better its predecessors in event organization, considerable effort and resources will be required. What is important to remember, specialists say, is creation of transport infrastructure is much more difficult and expensive than construction of sports facilities. For example, the reconstruction of existing sports facilities and the construction of new facilities (Universiade village, football stadium, a palace of water sports, etc. – in all more than 60) is supposed to cost about 40 billion rubles. The development programs of transport infrastructure is supposed to cost about 100 billion.
And if the sport component doesn’t cause trouble, as most of the objects are built on time and even ahead of a schedule, the transport component raises a lot of questions. Recently, regional officials were speaking about very different figures. First, it was said that 127 billion rubles, not including private investment, was needed for the reconstruction and construction of transport infrastructure, then there appeared a figure of 98 billion, and after all there already was 38.2 billion. Moreover, experts do not exclude that the organizers will have to get rid of a part of the plan, such as carrying over the rail station from the city center to the outlying districts. At the same time the Ministry of Transport and Road Services of Tatarstan assures that the minimum that provides sports activities at the proper level, which implies speed, comfort and lack of traffic jams, will be executed.
“One of the tasks for Tatarstan, that has been given by President Dmitry Medvedev, is providing a comfortable stay in Kazan, satisfying the requirements of FISU, for all participants of sports events. Guests should not feel the inconvenience connected with transportation, and city residents shouldn’t waste their time in traffic jams,” noted the Ministry of Transport and Road Service of Tatarstan Republic. However, the existing road and transport network cannot meet these requirements. Thus, the amount of cars in the capital today is 5.6 times higher than the regulatory capacity of the city roads. And when we consider that every year, the car park of Kazan grows by more than 22,000 cars and by the time of the Universiade the number of cars may exceed 500,000, the motivation to find a solution to this problem by 2013 becomes even more apparent.
The Railway Station and Airport on One Rail Line
Judging by the projects, the capital of Tatarstan expects big changes. Moreover, these changes can be assessed after arrival to the city by air transport, as well as by rail transport. In particular, in terms of the preparation of transport infrastructure for the Universiade there will be a large-scale reconstruction and modernization of the airport and the airport complex: border crossing points will be equipped with a new technique, new passenger and cargo terminals and hangars for aircraft maintenance will be built, multi-storey parking, etc.
It is assumed that this would strengthen the positive trend in traffic volume growth on international air routes, it would also implement international standards of quality and increase the airport capacity to 5 million passengers per year (or 3,500 per hour).
However, that is not all: the railway line between the terminal station of Kazan and international airport will be reconstructed and a new 2 km-long track will be built. This will allow the delivery of the competitors arriving from the airport, visitors arriving from nearby towns and areas to the venues of the Universiade and the center of the capital quickly and comfortably, and there it will be possible to transfer them to any form of urban transport.
In addition, it is planned to build a network of modern bus stations, which will meet all requirements for comfortable and quality passenger services. It is supposed to open additional long-distance and international routes from the new bus stations.
During implementation of the Programme of development of the road network up to 2013 (but only if the full volume of money is allocated) it is also planned to build and reconstruct 65 km of roads, 15 traffic interchanges and overpasses, and 16 pedestrian crossings in the city itself.
However, experts say, if the government does not pay enough attention to public transport, then no improvement in the quality of road building, no construction of overpasses and interchanges will solve the biggest city problem: the traffic jams. The bus fleet in Kazan was updated several years ago, but the wear rate of the electric fleet averages at 75%. To improve the situation, the government should buy 125 new trams, including 66 with high-speed capabilities, and 250 trolleybuses.
Can’t Do Without the Metro
But even with intensive modernization of land passenger transport it is impossible to avoid difficulties with transportation of Universiade guests and city residents without the development of a metro system. And it’s a separate issue and a separate cost item. For example, in Vienna, during preparation for the 2008 Euro Championships a special underground branch to the stadium, where matches were held, was specially constructed. 64 new subway stations were built while preparing for the Olympics in Beijing. For Universiade’s opening and closing ceremonies at the new stadium, as well as other sporting events, there will be a need to deliver 45,000 spectators. Without a subway it is virtually impossible, says the Ministry of Transport and Road Service of Tatarstan,.
Without a doubt, foreign visitors will compare the level of transport infrastructure of Kazan with other hosts of sporting events of such a level. Today Kazan’s subway, which opened four years ago, is the most comfortable, convenient and high-speed form of urban transport. For example, a trip overland between the end stations is 40-50 minutes, and the same metro trip is only 12 minutes.
The concept of a metro development in Kazan envisages construction of four lines 62 km in length with 28 stations, and a forecast volume of traffic of over 500,000 people a day. For efficient transportation of Universiade guests it is very important to continue the construction of the first line of 18.46 km with 11 stations, according to experts. It will connect two parts of the city, located on different sides of the river Kazanka. Main areas of the business, cultural and sport infrastructure are located along this direction, moreover, the line connects two of the largest residential districts and passes through the center of the city. The first subway line also connects the Universiade village with all the largest sport facilities of the city.
The specialists of the Ministry of Transport and Road Service of the Tatarstan Republic calculated the maximum passenger traffic on the routes the participants and guests of the Universiade will take in the morning and evening rush hours. It is more than 32,000 people per hour.
“In terms of high load of urban surface highways and low capacity of the road network in the central historic district, only an underground system can ensure visitors and residents of Kazan have unimpeded access to places of accommodation and leisure facilities as soon as possible, regardless of the load on the road network,” say specialists at the Ministry.
BY Olga Panfilova
[~DETAIL_TEXT] => The game is Worth Playing
A year before the Olympics, in 2013, the capital of Tatarstan will meet participants and guests of the XXVII World Summer Universiade. In importance and number of competitors this tournament is second only to the Olympics. More than 12,000 athletes and delegation members from 170 countries, more than 1,500 members of the media and about 100,000 tourists and sport fans from Russia and abroad are expected to go to Kazan to take part in the event.
The country’s government has repeatedly stated that the Universiade in Tatarstan is one of the major international projects of the Russian Federation, along with the Olympic Games in Sochi and the APEC summit.
Whatever else is said about the great love for sports, such events of this level are organized not just for the competition itself, say the initiators of the Universiade in Kazan. Here we should consider the prestige of the republic and the status of the country in general. And speaking of material goals, we should also remember the attraction of billions in investment in the short term.
In this sense, the game is really worth playing; enough funds are planned to be invested in the development of the capital Tatarstan to ensure that preparations meet the requirements of the International University Sports Federation (FISU), the main one being fast, safe and comfortable travel for participants and guests of the competition.
As regional officials say they will do everything possible to avoid losing face in front of athletes who will travel to Kazan, inspired by looming 2012 London Olympics and also the Universiade in the Chinese city of Shenzhen in 2011. Moreover, according to their assurances, this World Sport Student Games in Kazan will be the best in the history of Universiades.
A Lot of Plans – a Little Money
Оbviously, to better its predecessors in event organization, considerable effort and resources will be required. What is important to remember, specialists say, is creation of transport infrastructure is much more difficult and expensive than construction of sports facilities. For example, the reconstruction of existing sports facilities and the construction of new facilities (Universiade village, football stadium, a palace of water sports, etc. – in all more than 60) is supposed to cost about 40 billion rubles. The development programs of transport infrastructure is supposed to cost about 100 billion.
And if the sport component doesn’t cause trouble, as most of the objects are built on time and even ahead of a schedule, the transport component raises a lot of questions. Recently, regional officials were speaking about very different figures. First, it was said that 127 billion rubles, not including private investment, was needed for the reconstruction and construction of transport infrastructure, then there appeared a figure of 98 billion, and after all there already was 38.2 billion. Moreover, experts do not exclude that the organizers will have to get rid of a part of the plan, such as carrying over the rail station from the city center to the outlying districts. At the same time the Ministry of Transport and Road Services of Tatarstan assures that the minimum that provides sports activities at the proper level, which implies speed, comfort and lack of traffic jams, will be executed.
“One of the tasks for Tatarstan, that has been given by President Dmitry Medvedev, is providing a comfortable stay in Kazan, satisfying the requirements of FISU, for all participants of sports events. Guests should not feel the inconvenience connected with transportation, and city residents shouldn’t waste their time in traffic jams,” noted the Ministry of Transport and Road Service of Tatarstan Republic. However, the existing road and transport network cannot meet these requirements. Thus, the amount of cars in the capital today is 5.6 times higher than the regulatory capacity of the city roads. And when we consider that every year, the car park of Kazan grows by more than 22,000 cars and by the time of the Universiade the number of cars may exceed 500,000, the motivation to find a solution to this problem by 2013 becomes even more apparent.
The Railway Station and Airport on One Rail Line
Judging by the projects, the capital of Tatarstan expects big changes. Moreover, these changes can be assessed after arrival to the city by air transport, as well as by rail transport. In particular, in terms of the preparation of transport infrastructure for the Universiade there will be a large-scale reconstruction and modernization of the airport and the airport complex: border crossing points will be equipped with a new technique, new passenger and cargo terminals and hangars for aircraft maintenance will be built, multi-storey parking, etc.
It is assumed that this would strengthen the positive trend in traffic volume growth on international air routes, it would also implement international standards of quality and increase the airport capacity to 5 million passengers per year (or 3,500 per hour).
However, that is not all: the railway line between the terminal station of Kazan and international airport will be reconstructed and a new 2 km-long track will be built. This will allow the delivery of the competitors arriving from the airport, visitors arriving from nearby towns and areas to the venues of the Universiade and the center of the capital quickly and comfortably, and there it will be possible to transfer them to any form of urban transport.
In addition, it is planned to build a network of modern bus stations, which will meet all requirements for comfortable and quality passenger services. It is supposed to open additional long-distance and international routes from the new bus stations.
During implementation of the Programme of development of the road network up to 2013 (but only if the full volume of money is allocated) it is also planned to build and reconstruct 65 km of roads, 15 traffic interchanges and overpasses, and 16 pedestrian crossings in the city itself.
However, experts say, if the government does not pay enough attention to public transport, then no improvement in the quality of road building, no construction of overpasses and interchanges will solve the biggest city problem: the traffic jams. The bus fleet in Kazan was updated several years ago, but the wear rate of the electric fleet averages at 75%. To improve the situation, the government should buy 125 new trams, including 66 with high-speed capabilities, and 250 trolleybuses.
Can’t Do Without the Metro
But even with intensive modernization of land passenger transport it is impossible to avoid difficulties with transportation of Universiade guests and city residents without the development of a metro system. And it’s a separate issue and a separate cost item. For example, in Vienna, during preparation for the 2008 Euro Championships a special underground branch to the stadium, where matches were held, was specially constructed. 64 new subway stations were built while preparing for the Olympics in Beijing. For Universiade’s opening and closing ceremonies at the new stadium, as well as other sporting events, there will be a need to deliver 45,000 spectators. Without a subway it is virtually impossible, says the Ministry of Transport and Road Service of Tatarstan,.
Without a doubt, foreign visitors will compare the level of transport infrastructure of Kazan with other hosts of sporting events of such a level. Today Kazan’s subway, which opened four years ago, is the most comfortable, convenient and high-speed form of urban transport. For example, a trip overland between the end stations is 40-50 minutes, and the same metro trip is only 12 minutes.
The concept of a metro development in Kazan envisages construction of four lines 62 km in length with 28 stations, and a forecast volume of traffic of over 500,000 people a day. For efficient transportation of Universiade guests it is very important to continue the construction of the first line of 18.46 km with 11 stations, according to experts. It will connect two parts of the city, located on different sides of the river Kazanka. Main areas of the business, cultural and sport infrastructure are located along this direction, moreover, the line connects two of the largest residential districts and passes through the center of the city. The first subway line also connects the Universiade village with all the largest sport facilities of the city.
The specialists of the Ministry of Transport and Road Service of the Tatarstan Republic calculated the maximum passenger traffic on the routes the participants and guests of the Universiade will take in the morning and evening rush hours. It is more than 32,000 people per hour.
“In terms of high load of urban surface highways and low capacity of the road network in the central historic district, only an underground system can ensure visitors and residents of Kazan have unimpeded access to places of accommodation and leisure facilities as soon as possible, regardless of the load on the road network,” say specialists at the Ministry.
BY Olga Panfilova
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[DETAIL_TEXT] => The game is Worth Playing
A year before the Olympics, in 2013, the capital of Tatarstan will meet participants and guests of the XXVII World Summer Universiade. In importance and number of competitors this tournament is second only to the Olympics. More than 12,000 athletes and delegation members from 170 countries, more than 1,500 members of the media and about 100,000 tourists and sport fans from Russia and abroad are expected to go to Kazan to take part in the event.
The country’s government has repeatedly stated that the Universiade in Tatarstan is one of the major international projects of the Russian Federation, along with the Olympic Games in Sochi and the APEC summit.
Whatever else is said about the great love for sports, such events of this level are organized not just for the competition itself, say the initiators of the Universiade in Kazan. Here we should consider the prestige of the republic and the status of the country in general. And speaking of material goals, we should also remember the attraction of billions in investment in the short term.
In this sense, the game is really worth playing; enough funds are planned to be invested in the development of the capital Tatarstan to ensure that preparations meet the requirements of the International University Sports Federation (FISU), the main one being fast, safe and comfortable travel for participants and guests of the competition.
As regional officials say they will do everything possible to avoid losing face in front of athletes who will travel to Kazan, inspired by looming 2012 London Olympics and also the Universiade in the Chinese city of Shenzhen in 2011. Moreover, according to their assurances, this World Sport Student Games in Kazan will be the best in the history of Universiades.
A Lot of Plans – a Little Money
Оbviously, to better its predecessors in event organization, considerable effort and resources will be required. What is important to remember, specialists say, is creation of transport infrastructure is much more difficult and expensive than construction of sports facilities. For example, the reconstruction of existing sports facilities and the construction of new facilities (Universiade village, football stadium, a palace of water sports, etc. – in all more than 60) is supposed to cost about 40 billion rubles. The development programs of transport infrastructure is supposed to cost about 100 billion.
And if the sport component doesn’t cause trouble, as most of the objects are built on time and even ahead of a schedule, the transport component raises a lot of questions. Recently, regional officials were speaking about very different figures. First, it was said that 127 billion rubles, not including private investment, was needed for the reconstruction and construction of transport infrastructure, then there appeared a figure of 98 billion, and after all there already was 38.2 billion. Moreover, experts do not exclude that the organizers will have to get rid of a part of the plan, such as carrying over the rail station from the city center to the outlying districts. At the same time the Ministry of Transport and Road Services of Tatarstan assures that the minimum that provides sports activities at the proper level, which implies speed, comfort and lack of traffic jams, will be executed.
“One of the tasks for Tatarstan, that has been given by President Dmitry Medvedev, is providing a comfortable stay in Kazan, satisfying the requirements of FISU, for all participants of sports events. Guests should not feel the inconvenience connected with transportation, and city residents shouldn’t waste their time in traffic jams,” noted the Ministry of Transport and Road Service of Tatarstan Republic. However, the existing road and transport network cannot meet these requirements. Thus, the amount of cars in the capital today is 5.6 times higher than the regulatory capacity of the city roads. And when we consider that every year, the car park of Kazan grows by more than 22,000 cars and by the time of the Universiade the number of cars may exceed 500,000, the motivation to find a solution to this problem by 2013 becomes even more apparent.
The Railway Station and Airport on One Rail Line
Judging by the projects, the capital of Tatarstan expects big changes. Moreover, these changes can be assessed after arrival to the city by air transport, as well as by rail transport. In particular, in terms of the preparation of transport infrastructure for the Universiade there will be a large-scale reconstruction and modernization of the airport and the airport complex: border crossing points will be equipped with a new technique, new passenger and cargo terminals and hangars for aircraft maintenance will be built, multi-storey parking, etc.
It is assumed that this would strengthen the positive trend in traffic volume growth on international air routes, it would also implement international standards of quality and increase the airport capacity to 5 million passengers per year (or 3,500 per hour).
However, that is not all: the railway line between the terminal station of Kazan and international airport will be reconstructed and a new 2 km-long track will be built. This will allow the delivery of the competitors arriving from the airport, visitors arriving from nearby towns and areas to the venues of the Universiade and the center of the capital quickly and comfortably, and there it will be possible to transfer them to any form of urban transport.
In addition, it is planned to build a network of modern bus stations, which will meet all requirements for comfortable and quality passenger services. It is supposed to open additional long-distance and international routes from the new bus stations.
During implementation of the Programme of development of the road network up to 2013 (but only if the full volume of money is allocated) it is also planned to build and reconstruct 65 km of roads, 15 traffic interchanges and overpasses, and 16 pedestrian crossings in the city itself.
However, experts say, if the government does not pay enough attention to public transport, then no improvement in the quality of road building, no construction of overpasses and interchanges will solve the biggest city problem: the traffic jams. The bus fleet in Kazan was updated several years ago, but the wear rate of the electric fleet averages at 75%. To improve the situation, the government should buy 125 new trams, including 66 with high-speed capabilities, and 250 trolleybuses.
Can’t Do Without the Metro
But even with intensive modernization of land passenger transport it is impossible to avoid difficulties with transportation of Universiade guests and city residents without the development of a metro system. And it’s a separate issue and a separate cost item. For example, in Vienna, during preparation for the 2008 Euro Championships a special underground branch to the stadium, where matches were held, was specially constructed. 64 new subway stations were built while preparing for the Olympics in Beijing. For Universiade’s opening and closing ceremonies at the new stadium, as well as other sporting events, there will be a need to deliver 45,000 spectators. Without a subway it is virtually impossible, says the Ministry of Transport and Road Service of Tatarstan,.
Without a doubt, foreign visitors will compare the level of transport infrastructure of Kazan with other hosts of sporting events of such a level. Today Kazan’s subway, which opened four years ago, is the most comfortable, convenient and high-speed form of urban transport. For example, a trip overland between the end stations is 40-50 minutes, and the same metro trip is only 12 minutes.
The concept of a metro development in Kazan envisages construction of four lines 62 km in length with 28 stations, and a forecast volume of traffic of over 500,000 people a day. For efficient transportation of Universiade guests it is very important to continue the construction of the first line of 18.46 km with 11 stations, according to experts. It will connect two parts of the city, located on different sides of the river Kazanka. Main areas of the business, cultural and sport infrastructure are located along this direction, moreover, the line connects two of the largest residential districts and passes through the center of the city. The first subway line also connects the Universiade village with all the largest sport facilities of the city.
The specialists of the Ministry of Transport and Road Service of the Tatarstan Republic calculated the maximum passenger traffic on the routes the participants and guests of the Universiade will take in the morning and evening rush hours. It is more than 32,000 people per hour.
“In terms of high load of urban surface highways and low capacity of the road network in the central historic district, only an underground system can ensure visitors and residents of Kazan have unimpeded access to places of accommodation and leisure facilities as soon as possible, regardless of the load on the road network,” say specialists at the Ministry.
BY Olga Panfilova
[~DETAIL_TEXT] => The game is Worth Playing
A year before the Olympics, in 2013, the capital of Tatarstan will meet participants and guests of the XXVII World Summer Universiade. In importance and number of competitors this tournament is second only to the Olympics. More than 12,000 athletes and delegation members from 170 countries, more than 1,500 members of the media and about 100,000 tourists and sport fans from Russia and abroad are expected to go to Kazan to take part in the event.
The country’s government has repeatedly stated that the Universiade in Tatarstan is one of the major international projects of the Russian Federation, along with the Olympic Games in Sochi and the APEC summit.
Whatever else is said about the great love for sports, such events of this level are organized not just for the competition itself, say the initiators of the Universiade in Kazan. Here we should consider the prestige of the republic and the status of the country in general. And speaking of material goals, we should also remember the attraction of billions in investment in the short term.
In this sense, the game is really worth playing; enough funds are planned to be invested in the development of the capital Tatarstan to ensure that preparations meet the requirements of the International University Sports Federation (FISU), the main one being fast, safe and comfortable travel for participants and guests of the competition.
As regional officials say they will do everything possible to avoid losing face in front of athletes who will travel to Kazan, inspired by looming 2012 London Olympics and also the Universiade in the Chinese city of Shenzhen in 2011. Moreover, according to their assurances, this World Sport Student Games in Kazan will be the best in the history of Universiades.
A Lot of Plans – a Little Money
Оbviously, to better its predecessors in event organization, considerable effort and resources will be required. What is important to remember, specialists say, is creation of transport infrastructure is much more difficult and expensive than construction of sports facilities. For example, the reconstruction of existing sports facilities and the construction of new facilities (Universiade village, football stadium, a palace of water sports, etc. – in all more than 60) is supposed to cost about 40 billion rubles. The development programs of transport infrastructure is supposed to cost about 100 billion.
And if the sport component doesn’t cause trouble, as most of the objects are built on time and even ahead of a schedule, the transport component raises a lot of questions. Recently, regional officials were speaking about very different figures. First, it was said that 127 billion rubles, not including private investment, was needed for the reconstruction and construction of transport infrastructure, then there appeared a figure of 98 billion, and after all there already was 38.2 billion. Moreover, experts do not exclude that the organizers will have to get rid of a part of the plan, such as carrying over the rail station from the city center to the outlying districts. At the same time the Ministry of Transport and Road Services of Tatarstan assures that the minimum that provides sports activities at the proper level, which implies speed, comfort and lack of traffic jams, will be executed.
“One of the tasks for Tatarstan, that has been given by President Dmitry Medvedev, is providing a comfortable stay in Kazan, satisfying the requirements of FISU, for all participants of sports events. Guests should not feel the inconvenience connected with transportation, and city residents shouldn’t waste their time in traffic jams,” noted the Ministry of Transport and Road Service of Tatarstan Republic. However, the existing road and transport network cannot meet these requirements. Thus, the amount of cars in the capital today is 5.6 times higher than the regulatory capacity of the city roads. And when we consider that every year, the car park of Kazan grows by more than 22,000 cars and by the time of the Universiade the number of cars may exceed 500,000, the motivation to find a solution to this problem by 2013 becomes even more apparent.
The Railway Station and Airport on One Rail Line
Judging by the projects, the capital of Tatarstan expects big changes. Moreover, these changes can be assessed after arrival to the city by air transport, as well as by rail transport. In particular, in terms of the preparation of transport infrastructure for the Universiade there will be a large-scale reconstruction and modernization of the airport and the airport complex: border crossing points will be equipped with a new technique, new passenger and cargo terminals and hangars for aircraft maintenance will be built, multi-storey parking, etc.
It is assumed that this would strengthen the positive trend in traffic volume growth on international air routes, it would also implement international standards of quality and increase the airport capacity to 5 million passengers per year (or 3,500 per hour).
However, that is not all: the railway line between the terminal station of Kazan and international airport will be reconstructed and a new 2 km-long track will be built. This will allow the delivery of the competitors arriving from the airport, visitors arriving from nearby towns and areas to the venues of the Universiade and the center of the capital quickly and comfortably, and there it will be possible to transfer them to any form of urban transport.
In addition, it is planned to build a network of modern bus stations, which will meet all requirements for comfortable and quality passenger services. It is supposed to open additional long-distance and international routes from the new bus stations.
During implementation of the Programme of development of the road network up to 2013 (but only if the full volume of money is allocated) it is also planned to build and reconstruct 65 km of roads, 15 traffic interchanges and overpasses, and 16 pedestrian crossings in the city itself.
However, experts say, if the government does not pay enough attention to public transport, then no improvement in the quality of road building, no construction of overpasses and interchanges will solve the biggest city problem: the traffic jams. The bus fleet in Kazan was updated several years ago, but the wear rate of the electric fleet averages at 75%. To improve the situation, the government should buy 125 new trams, including 66 with high-speed capabilities, and 250 trolleybuses.
Can’t Do Without the Metro
But even with intensive modernization of land passenger transport it is impossible to avoid difficulties with transportation of Universiade guests and city residents without the development of a metro system. And it’s a separate issue and a separate cost item. For example, in Vienna, during preparation for the 2008 Euro Championships a special underground branch to the stadium, where matches were held, was specially constructed. 64 new subway stations were built while preparing for the Olympics in Beijing. For Universiade’s opening and closing ceremonies at the new stadium, as well as other sporting events, there will be a need to deliver 45,000 spectators. Without a subway it is virtually impossible, says the Ministry of Transport and Road Service of Tatarstan,.
Without a doubt, foreign visitors will compare the level of transport infrastructure of Kazan with other hosts of sporting events of such a level. Today Kazan’s subway, which opened four years ago, is the most comfortable, convenient and high-speed form of urban transport. For example, a trip overland between the end stations is 40-50 minutes, and the same metro trip is only 12 minutes.
The concept of a metro development in Kazan envisages construction of four lines 62 km in length with 28 stations, and a forecast volume of traffic of over 500,000 people a day. For efficient transportation of Universiade guests it is very important to continue the construction of the first line of 18.46 km with 11 stations, according to experts. It will connect two parts of the city, located on different sides of the river Kazanka. Main areas of the business, cultural and sport infrastructure are located along this direction, moreover, the line connects two of the largest residential districts and passes through the center of the city. The first subway line also connects the Universiade village with all the largest sport facilities of the city.
The specialists of the Ministry of Transport and Road Service of the Tatarstan Republic calculated the maximum passenger traffic on the routes the participants and guests of the Universiade will take in the morning and evening rush hours. It is more than 32,000 people per hour.
“In terms of high load of urban surface highways and low capacity of the road network in the central historic district, only an underground system can ensure visitors and residents of Kazan have unimpeded access to places of accommodation and leisure facilities as soon as possible, regardless of the load on the road network,” say specialists at the Ministry.
BY Olga Panfilova
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[DETAIL_TEXT] => RZD and Bank VTB Finalised the Sale of 29.39% TransCreditBank Shares
On July 15, 2011, Russian Railways and VTB Bank signed a shareholder agreement and sale and purchase agreement for a 54.39% stake in TransCreditBank, of which the 29.39% share was to be acquired by VTB Bank by the end of July 2011. VTB paid RUR 16 billion, or around $ 570 million, for the 29.39% stake and may purchase the remaining share from Russian Railways from July 1, 2012 to December 31, 2013.
VTB Bank’s status of a controlling shareholder and strategic investor has a crucial importance for TransCreditBank’s further development and achievement of its targets. In particular, it will lead to increased capitalisation of TransCreditBank, lower cost of funds, and improved sales effectiveness, which will enable the bank’s management team to maintain high growth dynamics of key financial and business indicators.
As a result of the deal, VTB Bank became a strategic partner of Russian Railways. Russian Railways keeps 25%+1 share of TransCreditBank, continues to participate in management of the bank and remains its key client.
TransCreditBank is a top-15 Russian bank by assets. As at December 31, 2010, total assets were RUR 390.9 billion (under IFRS), gross loans to customers were RUR 215.8 billion, customer accounts were RUR 276.5 billion, and total equity amounted to RUR 28.2 billion. In 2010, the Bank earned RUR 7.5 billion in net profit; ROE was 31.9%. In the first six months of 2011, the Bank’s corporate loan portfolio grew by 45%, retail portfolio – by 13%, according to preliminary stand-alone management accounts. In 2011, TransCreditBank expects to earn a net profit of over RUR 8 billion (under IFRS).
Another Four Years
Vladimir Putin, the Russian Prime Minister, announced that he signed an executive order appointing Vladimir Yakunin, CEO of Russian Railways, to a new four-year term.
“Mr Yakunin, yesterday I signed an executive order, which will be issued today, extending your term as head of the company Russian Railways,” said Mr Putin at the meeting with Mr Yakunin on June 11, 2011. “This decision was based on the company’s positive indicators and good performance despite the difficult economic time during the economic crisis,” said the Russian Prime Minister.
The meeting focused on plans for the development of railways in Russia, including high-speed rail. Mr Yakunin also outlined plans for the development of the Northern Railway to Murmansk and a passenger rail ring around Moscow, which will partly solve the capital’s traffic problem.
Borrow to Succeed
On 31 August 2011, Vadim Mikhailov, Senior Vice President at Russian Railways, said at a press conference on “Investment Prospects in Rail Transport to 2015”, “Over the past year, we have substantially revised the format of our investment programme and made it transparent and understandable.” In his words, the investment programme now consists of several sections.
“The first is a government programme, such as Olympic construction projects and the construction of an intermodal connection to airports in Vladivostok and Kazan. The next section is the most important for us and is dedicated to transport security. The third section is all about increasing the population’s transportation mobility, which entails first and foremost the development of the commuter sector, the removal of infrastructure bottlenecks across the whole country, the acquisition of rolling stock and other projects. This format has been approved by all the relevant ministries,” said the Senior Vice President of RZD.
Mr Mikhailov noted that in 2011, Russian Railways placed 20-year Eurobonds denominated in pounds sterling for the first time. The total volume amounted to £650 million.
“The Eurobond issues showed that foreign investors entrust their money to Russian Railways for such a long period of time. We are ready with both our own and borrowed funds, which we can attract by virtue of our covenants and tariff policy, to get involved ourselves and invest in projects lasting up to 20 years. Every project lasting over 20 years is a strategic task for the state,” said Mr Mikhailov, who also added that Russian Railways had submitted calculations on the budget efficiency of government investment in infrastructure to ministries and agencies.
The Agreement on Regulation of Access to Railway Transport Services Ratified
On July 18, 2011, Dmitry Medvedev, President of the Russian Federation, signed the Federal Law “On Ratification of the Agreement on Regulation of Access to Railway Transport Services Including the Basis of Tariff Policy.”
This law was adopted by the State Duma on July 1, 2011, and approved by the Council of Federation on July 6, 2011.
The Agreement was signed in Moscow on December 9, 2010. It will unify certain rules on railway transport’s work within the Common Economic Space of Belarus, Kazakhstan, and Russia.
RZD Will Sell Shares in Freight One on October 28
The auction of shares in Russian Railways’ subsidiary Freight One is set for 28 October.
Bidders will be invited to purchase 64,239,325,613 uncertificated ordinary shares in Freight One at an open auction. These shares represent 75% of the company minus 2 shares.
To be eligible, participants will be required to submit proposals in open form with the price of shares. The auction’s terms provide for the disposal of the shares as one lot. Bidding will start at 125,375,000,000 roubles and each bid increment will be 500 million roubles. The auction will be held in accordance with Decree #1315-r of the Government of the Russian Federation dated 28 July, 2011, and resolutions of the Board of Directors at Russian Railways contained in Protocol #.6 dated 19 April, 2011, and Protocol # 14 dated 30 August, 2011. TransCreditBank issued a notification that an auction of shares in Freight One would take place on 28 October, 2011.
Ukraine to Offer Russia Chance to Develop a Railway Hub System Together
The Government of Ukraine is going to offer Russia the opportunity to join efforts to develop a system of railway hubs.
When announcing this idea, the Vice Prime Minister of Ukraine, Infrastructure Minister Boris Kolesnikov, explained that the railway hubs would be “like air hubs”. The Ukrainian party has been developing this issue for a long time. “This concept is being discussed, and it will be carried out for sure,” promised Mr Kolesnikov. Ukraine has already offered to carry out a joint project “Slavutich - Sapsan” with Russia. This infrastructure project envisages construction of a high-speed railway line Kiev – Moscow (parallel to the existing mainline). The planned length of the line is 830 km. Of that, 510 km will be on Russian territory. The total cost of the project is estimated at $10 billion.
Checkpoints at key Russian ports are a priority of FTP
Creation of marine checkpoints in key export ports will be a priority of the Federal Target Program “State Border of the Russian Federation (2012-2020),” reported IA PortNews recently.
In the words of Daniel Vavilov, the head of Russian Border Facilities Development and Border Crossings Administration Office at the Federal Agency for the Development of the State Border Facilities of the Russian Federation (Rosgranitsa), the program provides for the creation of at least 25 border crossing points at major Russian ports, namely, at Ust-Luga, Kavkaz, Olya, Petropavlovsk-Kamchatsky, Korsakov etc. and on Bering Island for cruise ships.
The Russian Government plans to invest a total of RUB 134 billion in the target program, which will be implemented over the next nine years, until 2020.
Tariff System Will Be Improved
The Federal Tariff Service is going to take a number of measures to improve the tariff system at the current stage of the railway transport reform, said Tamara Stebunova, Deputy Head of the RF Federal Tariff Service. All the measures will be taken in accordance with the model of the transport services market to 2015, approved by the RF Government, and the plan for its realisation.
In the words of Mrs Stebunova, it is planned to complete unification of tariffs independent from the type of communication, to define the order and time needed to unify tariffs on empty mileage, and to develop tariffs on the infrastructure services provided by RZD.
“The documents envisage the development of a normative and legislative base providing the technical and technological functioning of the sector to 2015. So, we can say that the tariff system is being reformed simultaneously with the railway sector. In some cases, the decisions made by the RF Federal Tariff Service become the basis for relevant technological solutions and decisions made to improve the normative and legislative base,” said Mrs Stebunova.
RZD Orders 1,200 Railcars from Siemens
Russian Railways has placed an order for further Desiro RUS type regional trains with Train Technologies, a joint venture of Siemens and the Russian rail technology manufacturer Sinara. The order, for which a preliminary contract was signed in June of this year, is for the delivery of 1,200 cars and is worth about two billion euros.
Production in the Ural Locomotives factory near Yekaterinburg is due to begin in 2013. RZD has also awarded Siemens a 40-year maintenance contract, effective 2013 and covering a total of 54 trains of the same type that RZD had already ordered in 2009 and 2010. This maintenance contract is worth about 500 million euros. The relevant agreements were signed by Peter Löscher, Siemens CEO, Vladimir Yakunin, RZD President, and Dmitriy Pumpyanskiy, President of the Sinara Group, at the international rail business forum “Expo 1520” in Shcherbinka near Moscow.
Starting in 2013, the 1,200 new cars ordered by RZD for the Desiro RUS type regional train are to be built in the Ural Locomotives plant near Yekaterinburg, where Siemens has been manufacturing electric freight locomotives since 2010 under the terms of a joint venture. “In all, we shall be investing more than 200 million euros in the Desiro production set-up – in modern buildings, machine tools and personnel training,” said Siemens CEO Peter Löscher.
“Siemens is the most successful non-Russian supplier of railway technology in that country. By localising production activities, we are strengthening this market position and securing our close ties with the Russian railway industry.” With the latest order for nearly 300 Desiro trains, Russia is creating the basis for modern and eco-friendly urban transportation for the future.
These new regional trains will offer enhanced comfort for passengers and train personnel alike. Besides that, compared with the trains currently operating in Russia, the new Siemens trains will consume roughly 30% less energy. Going by the name of Lastochka (“Little Swallow”) at RZD, the Desiro RUS can operate at a top speed of up to 160 kph. The vehicle is a development of the Desiro ML and has been specially adapted to the demands of the Russian market. This means not only resistance to temperatures as low as -40° Celsius, but also car bodies and bogies that are built for 1520-mm broad gauge track.
[~DETAIL_TEXT] => RZD and Bank VTB Finalised the Sale of 29.39% TransCreditBank Shares
On July 15, 2011, Russian Railways and VTB Bank signed a shareholder agreement and sale and purchase agreement for a 54.39% stake in TransCreditBank, of which the 29.39% share was to be acquired by VTB Bank by the end of July 2011. VTB paid RUR 16 billion, or around $ 570 million, for the 29.39% stake and may purchase the remaining share from Russian Railways from July 1, 2012 to December 31, 2013.
VTB Bank’s status of a controlling shareholder and strategic investor has a crucial importance for TransCreditBank’s further development and achievement of its targets. In particular, it will lead to increased capitalisation of TransCreditBank, lower cost of funds, and improved sales effectiveness, which will enable the bank’s management team to maintain high growth dynamics of key financial and business indicators.
As a result of the deal, VTB Bank became a strategic partner of Russian Railways. Russian Railways keeps 25%+1 share of TransCreditBank, continues to participate in management of the bank and remains its key client.
TransCreditBank is a top-15 Russian bank by assets. As at December 31, 2010, total assets were RUR 390.9 billion (under IFRS), gross loans to customers were RUR 215.8 billion, customer accounts were RUR 276.5 billion, and total equity amounted to RUR 28.2 billion. In 2010, the Bank earned RUR 7.5 billion in net profit; ROE was 31.9%. In the first six months of 2011, the Bank’s corporate loan portfolio grew by 45%, retail portfolio – by 13%, according to preliminary stand-alone management accounts. In 2011, TransCreditBank expects to earn a net profit of over RUR 8 billion (under IFRS).
Another Four Years
Vladimir Putin, the Russian Prime Minister, announced that he signed an executive order appointing Vladimir Yakunin, CEO of Russian Railways, to a new four-year term.
“Mr Yakunin, yesterday I signed an executive order, which will be issued today, extending your term as head of the company Russian Railways,” said Mr Putin at the meeting with Mr Yakunin on June 11, 2011. “This decision was based on the company’s positive indicators and good performance despite the difficult economic time during the economic crisis,” said the Russian Prime Minister.
The meeting focused on plans for the development of railways in Russia, including high-speed rail. Mr Yakunin also outlined plans for the development of the Northern Railway to Murmansk and a passenger rail ring around Moscow, which will partly solve the capital’s traffic problem.
Borrow to Succeed
On 31 August 2011, Vadim Mikhailov, Senior Vice President at Russian Railways, said at a press conference on “Investment Prospects in Rail Transport to 2015”, “Over the past year, we have substantially revised the format of our investment programme and made it transparent and understandable.” In his words, the investment programme now consists of several sections.
“The first is a government programme, such as Olympic construction projects and the construction of an intermodal connection to airports in Vladivostok and Kazan. The next section is the most important for us and is dedicated to transport security. The third section is all about increasing the population’s transportation mobility, which entails first and foremost the development of the commuter sector, the removal of infrastructure bottlenecks across the whole country, the acquisition of rolling stock and other projects. This format has been approved by all the relevant ministries,” said the Senior Vice President of RZD.
Mr Mikhailov noted that in 2011, Russian Railways placed 20-year Eurobonds denominated in pounds sterling for the first time. The total volume amounted to £650 million.
“The Eurobond issues showed that foreign investors entrust their money to Russian Railways for such a long period of time. We are ready with both our own and borrowed funds, which we can attract by virtue of our covenants and tariff policy, to get involved ourselves and invest in projects lasting up to 20 years. Every project lasting over 20 years is a strategic task for the state,” said Mr Mikhailov, who also added that Russian Railways had submitted calculations on the budget efficiency of government investment in infrastructure to ministries and agencies.
The Agreement on Regulation of Access to Railway Transport Services Ratified
On July 18, 2011, Dmitry Medvedev, President of the Russian Federation, signed the Federal Law “On Ratification of the Agreement on Regulation of Access to Railway Transport Services Including the Basis of Tariff Policy.”
This law was adopted by the State Duma on July 1, 2011, and approved by the Council of Federation on July 6, 2011.
The Agreement was signed in Moscow on December 9, 2010. It will unify certain rules on railway transport’s work within the Common Economic Space of Belarus, Kazakhstan, and Russia.
RZD Will Sell Shares in Freight One on October 28
The auction of shares in Russian Railways’ subsidiary Freight One is set for 28 October.
Bidders will be invited to purchase 64,239,325,613 uncertificated ordinary shares in Freight One at an open auction. These shares represent 75% of the company minus 2 shares.
To be eligible, participants will be required to submit proposals in open form with the price of shares. The auction’s terms provide for the disposal of the shares as one lot. Bidding will start at 125,375,000,000 roubles and each bid increment will be 500 million roubles. The auction will be held in accordance with Decree #1315-r of the Government of the Russian Federation dated 28 July, 2011, and resolutions of the Board of Directors at Russian Railways contained in Protocol #.6 dated 19 April, 2011, and Protocol # 14 dated 30 August, 2011. TransCreditBank issued a notification that an auction of shares in Freight One would take place on 28 October, 2011.
Ukraine to Offer Russia Chance to Develop a Railway Hub System Together
The Government of Ukraine is going to offer Russia the opportunity to join efforts to develop a system of railway hubs.
When announcing this idea, the Vice Prime Minister of Ukraine, Infrastructure Minister Boris Kolesnikov, explained that the railway hubs would be “like air hubs”. The Ukrainian party has been developing this issue for a long time. “This concept is being discussed, and it will be carried out for sure,” promised Mr Kolesnikov. Ukraine has already offered to carry out a joint project “Slavutich - Sapsan” with Russia. This infrastructure project envisages construction of a high-speed railway line Kiev – Moscow (parallel to the existing mainline). The planned length of the line is 830 km. Of that, 510 km will be on Russian territory. The total cost of the project is estimated at $10 billion.
Checkpoints at key Russian ports are a priority of FTP
Creation of marine checkpoints in key export ports will be a priority of the Federal Target Program “State Border of the Russian Federation (2012-2020),” reported IA PortNews recently.
In the words of Daniel Vavilov, the head of Russian Border Facilities Development and Border Crossings Administration Office at the Federal Agency for the Development of the State Border Facilities of the Russian Federation (Rosgranitsa), the program provides for the creation of at least 25 border crossing points at major Russian ports, namely, at Ust-Luga, Kavkaz, Olya, Petropavlovsk-Kamchatsky, Korsakov etc. and on Bering Island for cruise ships.
The Russian Government plans to invest a total of RUB 134 billion in the target program, which will be implemented over the next nine years, until 2020.
Tariff System Will Be Improved
The Federal Tariff Service is going to take a number of measures to improve the tariff system at the current stage of the railway transport reform, said Tamara Stebunova, Deputy Head of the RF Federal Tariff Service. All the measures will be taken in accordance with the model of the transport services market to 2015, approved by the RF Government, and the plan for its realisation.
In the words of Mrs Stebunova, it is planned to complete unification of tariffs independent from the type of communication, to define the order and time needed to unify tariffs on empty mileage, and to develop tariffs on the infrastructure services provided by RZD.
“The documents envisage the development of a normative and legislative base providing the technical and technological functioning of the sector to 2015. So, we can say that the tariff system is being reformed simultaneously with the railway sector. In some cases, the decisions made by the RF Federal Tariff Service become the basis for relevant technological solutions and decisions made to improve the normative and legislative base,” said Mrs Stebunova.
RZD Orders 1,200 Railcars from Siemens
Russian Railways has placed an order for further Desiro RUS type regional trains with Train Technologies, a joint venture of Siemens and the Russian rail technology manufacturer Sinara. The order, for which a preliminary contract was signed in June of this year, is for the delivery of 1,200 cars and is worth about two billion euros.
Production in the Ural Locomotives factory near Yekaterinburg is due to begin in 2013. RZD has also awarded Siemens a 40-year maintenance contract, effective 2013 and covering a total of 54 trains of the same type that RZD had already ordered in 2009 and 2010. This maintenance contract is worth about 500 million euros. The relevant agreements were signed by Peter Löscher, Siemens CEO, Vladimir Yakunin, RZD President, and Dmitriy Pumpyanskiy, President of the Sinara Group, at the international rail business forum “Expo 1520” in Shcherbinka near Moscow.
Starting in 2013, the 1,200 new cars ordered by RZD for the Desiro RUS type regional train are to be built in the Ural Locomotives plant near Yekaterinburg, where Siemens has been manufacturing electric freight locomotives since 2010 under the terms of a joint venture. “In all, we shall be investing more than 200 million euros in the Desiro production set-up – in modern buildings, machine tools and personnel training,” said Siemens CEO Peter Löscher.
“Siemens is the most successful non-Russian supplier of railway technology in that country. By localising production activities, we are strengthening this market position and securing our close ties with the Russian railway industry.” With the latest order for nearly 300 Desiro trains, Russia is creating the basis for modern and eco-friendly urban transportation for the future.
These new regional trains will offer enhanced comfort for passengers and train personnel alike. Besides that, compared with the trains currently operating in Russia, the new Siemens trains will consume roughly 30% less energy. Going by the name of Lastochka (“Little Swallow”) at RZD, the Desiro RUS can operate at a top speed of up to 160 kph. The vehicle is a development of the Desiro ML and has been specially adapted to the demands of the Russian market. This means not only resistance to temperatures as low as -40° Celsius, but also car bodies and bogies that are built for 1520-mm broad gauge track.
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[DETAIL_TEXT] => RZD and Bank VTB Finalised the Sale of 29.39% TransCreditBank Shares
On July 15, 2011, Russian Railways and VTB Bank signed a shareholder agreement and sale and purchase agreement for a 54.39% stake in TransCreditBank, of which the 29.39% share was to be acquired by VTB Bank by the end of July 2011. VTB paid RUR 16 billion, or around $ 570 million, for the 29.39% stake and may purchase the remaining share from Russian Railways from July 1, 2012 to December 31, 2013.
VTB Bank’s status of a controlling shareholder and strategic investor has a crucial importance for TransCreditBank’s further development and achievement of its targets. In particular, it will lead to increased capitalisation of TransCreditBank, lower cost of funds, and improved sales effectiveness, which will enable the bank’s management team to maintain high growth dynamics of key financial and business indicators.
As a result of the deal, VTB Bank became a strategic partner of Russian Railways. Russian Railways keeps 25%+1 share of TransCreditBank, continues to participate in management of the bank and remains its key client.
TransCreditBank is a top-15 Russian bank by assets. As at December 31, 2010, total assets were RUR 390.9 billion (under IFRS), gross loans to customers were RUR 215.8 billion, customer accounts were RUR 276.5 billion, and total equity amounted to RUR 28.2 billion. In 2010, the Bank earned RUR 7.5 billion in net profit; ROE was 31.9%. In the first six months of 2011, the Bank’s corporate loan portfolio grew by 45%, retail portfolio – by 13%, according to preliminary stand-alone management accounts. In 2011, TransCreditBank expects to earn a net profit of over RUR 8 billion (under IFRS).
Another Four Years
Vladimir Putin, the Russian Prime Minister, announced that he signed an executive order appointing Vladimir Yakunin, CEO of Russian Railways, to a new four-year term.
“Mr Yakunin, yesterday I signed an executive order, which will be issued today, extending your term as head of the company Russian Railways,” said Mr Putin at the meeting with Mr Yakunin on June 11, 2011. “This decision was based on the company’s positive indicators and good performance despite the difficult economic time during the economic crisis,” said the Russian Prime Minister.
The meeting focused on plans for the development of railways in Russia, including high-speed rail. Mr Yakunin also outlined plans for the development of the Northern Railway to Murmansk and a passenger rail ring around Moscow, which will partly solve the capital’s traffic problem.
Borrow to Succeed
On 31 August 2011, Vadim Mikhailov, Senior Vice President at Russian Railways, said at a press conference on “Investment Prospects in Rail Transport to 2015”, “Over the past year, we have substantially revised the format of our investment programme and made it transparent and understandable.” In his words, the investment programme now consists of several sections.
“The first is a government programme, such as Olympic construction projects and the construction of an intermodal connection to airports in Vladivostok and Kazan. The next section is the most important for us and is dedicated to transport security. The third section is all about increasing the population’s transportation mobility, which entails first and foremost the development of the commuter sector, the removal of infrastructure bottlenecks across the whole country, the acquisition of rolling stock and other projects. This format has been approved by all the relevant ministries,” said the Senior Vice President of RZD.
Mr Mikhailov noted that in 2011, Russian Railways placed 20-year Eurobonds denominated in pounds sterling for the first time. The total volume amounted to £650 million.
“The Eurobond issues showed that foreign investors entrust their money to Russian Railways for such a long period of time. We are ready with both our own and borrowed funds, which we can attract by virtue of our covenants and tariff policy, to get involved ourselves and invest in projects lasting up to 20 years. Every project lasting over 20 years is a strategic task for the state,” said Mr Mikhailov, who also added that Russian Railways had submitted calculations on the budget efficiency of government investment in infrastructure to ministries and agencies.
The Agreement on Regulation of Access to Railway Transport Services Ratified
On July 18, 2011, Dmitry Medvedev, President of the Russian Federation, signed the Federal Law “On Ratification of the Agreement on Regulation of Access to Railway Transport Services Including the Basis of Tariff Policy.”
This law was adopted by the State Duma on July 1, 2011, and approved by the Council of Federation on July 6, 2011.
The Agreement was signed in Moscow on December 9, 2010. It will unify certain rules on railway transport’s work within the Common Economic Space of Belarus, Kazakhstan, and Russia.
RZD Will Sell Shares in Freight One on October 28
The auction of shares in Russian Railways’ subsidiary Freight One is set for 28 October.
Bidders will be invited to purchase 64,239,325,613 uncertificated ordinary shares in Freight One at an open auction. These shares represent 75% of the company minus 2 shares.
To be eligible, participants will be required to submit proposals in open form with the price of shares. The auction’s terms provide for the disposal of the shares as one lot. Bidding will start at 125,375,000,000 roubles and each bid increment will be 500 million roubles. The auction will be held in accordance with Decree #1315-r of the Government of the Russian Federation dated 28 July, 2011, and resolutions of the Board of Directors at Russian Railways contained in Protocol #.6 dated 19 April, 2011, and Protocol # 14 dated 30 August, 2011. TransCreditBank issued a notification that an auction of shares in Freight One would take place on 28 October, 2011.
Ukraine to Offer Russia Chance to Develop a Railway Hub System Together
The Government of Ukraine is going to offer Russia the opportunity to join efforts to develop a system of railway hubs.
When announcing this idea, the Vice Prime Minister of Ukraine, Infrastructure Minister Boris Kolesnikov, explained that the railway hubs would be “like air hubs”. The Ukrainian party has been developing this issue for a long time. “This concept is being discussed, and it will be carried out for sure,” promised Mr Kolesnikov. Ukraine has already offered to carry out a joint project “Slavutich - Sapsan” with Russia. This infrastructure project envisages construction of a high-speed railway line Kiev – Moscow (parallel to the existing mainline). The planned length of the line is 830 km. Of that, 510 km will be on Russian territory. The total cost of the project is estimated at $10 billion.
Checkpoints at key Russian ports are a priority of FTP
Creation of marine checkpoints in key export ports will be a priority of the Federal Target Program “State Border of the Russian Federation (2012-2020),” reported IA PortNews recently.
In the words of Daniel Vavilov, the head of Russian Border Facilities Development and Border Crossings Administration Office at the Federal Agency for the Development of the State Border Facilities of the Russian Federation (Rosgranitsa), the program provides for the creation of at least 25 border crossing points at major Russian ports, namely, at Ust-Luga, Kavkaz, Olya, Petropavlovsk-Kamchatsky, Korsakov etc. and on Bering Island for cruise ships.
The Russian Government plans to invest a total of RUB 134 billion in the target program, which will be implemented over the next nine years, until 2020.
Tariff System Will Be Improved
The Federal Tariff Service is going to take a number of measures to improve the tariff system at the current stage of the railway transport reform, said Tamara Stebunova, Deputy Head of the RF Federal Tariff Service. All the measures will be taken in accordance with the model of the transport services market to 2015, approved by the RF Government, and the plan for its realisation.
In the words of Mrs Stebunova, it is planned to complete unification of tariffs independent from the type of communication, to define the order and time needed to unify tariffs on empty mileage, and to develop tariffs on the infrastructure services provided by RZD.
“The documents envisage the development of a normative and legislative base providing the technical and technological functioning of the sector to 2015. So, we can say that the tariff system is being reformed simultaneously with the railway sector. In some cases, the decisions made by the RF Federal Tariff Service become the basis for relevant technological solutions and decisions made to improve the normative and legislative base,” said Mrs Stebunova.
RZD Orders 1,200 Railcars from Siemens
Russian Railways has placed an order for further Desiro RUS type regional trains with Train Technologies, a joint venture of Siemens and the Russian rail technology manufacturer Sinara. The order, for which a preliminary contract was signed in June of this year, is for the delivery of 1,200 cars and is worth about two billion euros.
Production in the Ural Locomotives factory near Yekaterinburg is due to begin in 2013. RZD has also awarded Siemens a 40-year maintenance contract, effective 2013 and covering a total of 54 trains of the same type that RZD had already ordered in 2009 and 2010. This maintenance contract is worth about 500 million euros. The relevant agreements were signed by Peter Löscher, Siemens CEO, Vladimir Yakunin, RZD President, and Dmitriy Pumpyanskiy, President of the Sinara Group, at the international rail business forum “Expo 1520” in Shcherbinka near Moscow.
Starting in 2013, the 1,200 new cars ordered by RZD for the Desiro RUS type regional train are to be built in the Ural Locomotives plant near Yekaterinburg, where Siemens has been manufacturing electric freight locomotives since 2010 under the terms of a joint venture. “In all, we shall be investing more than 200 million euros in the Desiro production set-up – in modern buildings, machine tools and personnel training,” said Siemens CEO Peter Löscher.
“Siemens is the most successful non-Russian supplier of railway technology in that country. By localising production activities, we are strengthening this market position and securing our close ties with the Russian railway industry.” With the latest order for nearly 300 Desiro trains, Russia is creating the basis for modern and eco-friendly urban transportation for the future.
These new regional trains will offer enhanced comfort for passengers and train personnel alike. Besides that, compared with the trains currently operating in Russia, the new Siemens trains will consume roughly 30% less energy. Going by the name of Lastochka (“Little Swallow”) at RZD, the Desiro RUS can operate at a top speed of up to 160 kph. The vehicle is a development of the Desiro ML and has been specially adapted to the demands of the Russian market. This means not only resistance to temperatures as low as -40° Celsius, but also car bodies and bogies that are built for 1520-mm broad gauge track.
[~DETAIL_TEXT] => RZD and Bank VTB Finalised the Sale of 29.39% TransCreditBank Shares
On July 15, 2011, Russian Railways and VTB Bank signed a shareholder agreement and sale and purchase agreement for a 54.39% stake in TransCreditBank, of which the 29.39% share was to be acquired by VTB Bank by the end of July 2011. VTB paid RUR 16 billion, or around $ 570 million, for the 29.39% stake and may purchase the remaining share from Russian Railways from July 1, 2012 to December 31, 2013.
VTB Bank’s status of a controlling shareholder and strategic investor has a crucial importance for TransCreditBank’s further development and achievement of its targets. In particular, it will lead to increased capitalisation of TransCreditBank, lower cost of funds, and improved sales effectiveness, which will enable the bank’s management team to maintain high growth dynamics of key financial and business indicators.
As a result of the deal, VTB Bank became a strategic partner of Russian Railways. Russian Railways keeps 25%+1 share of TransCreditBank, continues to participate in management of the bank and remains its key client.
TransCreditBank is a top-15 Russian bank by assets. As at December 31, 2010, total assets were RUR 390.9 billion (under IFRS), gross loans to customers were RUR 215.8 billion, customer accounts were RUR 276.5 billion, and total equity amounted to RUR 28.2 billion. In 2010, the Bank earned RUR 7.5 billion in net profit; ROE was 31.9%. In the first six months of 2011, the Bank’s corporate loan portfolio grew by 45%, retail portfolio – by 13%, according to preliminary stand-alone management accounts. In 2011, TransCreditBank expects to earn a net profit of over RUR 8 billion (under IFRS).
Another Four Years
Vladimir Putin, the Russian Prime Minister, announced that he signed an executive order appointing Vladimir Yakunin, CEO of Russian Railways, to a new four-year term.
“Mr Yakunin, yesterday I signed an executive order, which will be issued today, extending your term as head of the company Russian Railways,” said Mr Putin at the meeting with Mr Yakunin on June 11, 2011. “This decision was based on the company’s positive indicators and good performance despite the difficult economic time during the economic crisis,” said the Russian Prime Minister.
The meeting focused on plans for the development of railways in Russia, including high-speed rail. Mr Yakunin also outlined plans for the development of the Northern Railway to Murmansk and a passenger rail ring around Moscow, which will partly solve the capital’s traffic problem.
Borrow to Succeed
On 31 August 2011, Vadim Mikhailov, Senior Vice President at Russian Railways, said at a press conference on “Investment Prospects in Rail Transport to 2015”, “Over the past year, we have substantially revised the format of our investment programme and made it transparent and understandable.” In his words, the investment programme now consists of several sections.
“The first is a government programme, such as Olympic construction projects and the construction of an intermodal connection to airports in Vladivostok and Kazan. The next section is the most important for us and is dedicated to transport security. The third section is all about increasing the population’s transportation mobility, which entails first and foremost the development of the commuter sector, the removal of infrastructure bottlenecks across the whole country, the acquisition of rolling stock and other projects. This format has been approved by all the relevant ministries,” said the Senior Vice President of RZD.
Mr Mikhailov noted that in 2011, Russian Railways placed 20-year Eurobonds denominated in pounds sterling for the first time. The total volume amounted to £650 million.
“The Eurobond issues showed that foreign investors entrust their money to Russian Railways for such a long period of time. We are ready with both our own and borrowed funds, which we can attract by virtue of our covenants and tariff policy, to get involved ourselves and invest in projects lasting up to 20 years. Every project lasting over 20 years is a strategic task for the state,” said Mr Mikhailov, who also added that Russian Railways had submitted calculations on the budget efficiency of government investment in infrastructure to ministries and agencies.
The Agreement on Regulation of Access to Railway Transport Services Ratified
On July 18, 2011, Dmitry Medvedev, President of the Russian Federation, signed the Federal Law “On Ratification of the Agreement on Regulation of Access to Railway Transport Services Including the Basis of Tariff Policy.”
This law was adopted by the State Duma on July 1, 2011, and approved by the Council of Federation on July 6, 2011.
The Agreement was signed in Moscow on December 9, 2010. It will unify certain rules on railway transport’s work within the Common Economic Space of Belarus, Kazakhstan, and Russia.
RZD Will Sell Shares in Freight One on October 28
The auction of shares in Russian Railways’ subsidiary Freight One is set for 28 October.
Bidders will be invited to purchase 64,239,325,613 uncertificated ordinary shares in Freight One at an open auction. These shares represent 75% of the company minus 2 shares.
To be eligible, participants will be required to submit proposals in open form with the price of shares. The auction’s terms provide for the disposal of the shares as one lot. Bidding will start at 125,375,000,000 roubles and each bid increment will be 500 million roubles. The auction will be held in accordance with Decree #1315-r of the Government of the Russian Federation dated 28 July, 2011, and resolutions of the Board of Directors at Russian Railways contained in Protocol #.6 dated 19 April, 2011, and Protocol # 14 dated 30 August, 2011. TransCreditBank issued a notification that an auction of shares in Freight One would take place on 28 October, 2011.
Ukraine to Offer Russia Chance to Develop a Railway Hub System Together
The Government of Ukraine is going to offer Russia the opportunity to join efforts to develop a system of railway hubs.
When announcing this idea, the Vice Prime Minister of Ukraine, Infrastructure Minister Boris Kolesnikov, explained that the railway hubs would be “like air hubs”. The Ukrainian party has been developing this issue for a long time. “This concept is being discussed, and it will be carried out for sure,” promised Mr Kolesnikov. Ukraine has already offered to carry out a joint project “Slavutich - Sapsan” with Russia. This infrastructure project envisages construction of a high-speed railway line Kiev – Moscow (parallel to the existing mainline). The planned length of the line is 830 km. Of that, 510 km will be on Russian territory. The total cost of the project is estimated at $10 billion.
Checkpoints at key Russian ports are a priority of FTP
Creation of marine checkpoints in key export ports will be a priority of the Federal Target Program “State Border of the Russian Federation (2012-2020),” reported IA PortNews recently.
In the words of Daniel Vavilov, the head of Russian Border Facilities Development and Border Crossings Administration Office at the Federal Agency for the Development of the State Border Facilities of the Russian Federation (Rosgranitsa), the program provides for the creation of at least 25 border crossing points at major Russian ports, namely, at Ust-Luga, Kavkaz, Olya, Petropavlovsk-Kamchatsky, Korsakov etc. and on Bering Island for cruise ships.
The Russian Government plans to invest a total of RUB 134 billion in the target program, which will be implemented over the next nine years, until 2020.
Tariff System Will Be Improved
The Federal Tariff Service is going to take a number of measures to improve the tariff system at the current stage of the railway transport reform, said Tamara Stebunova, Deputy Head of the RF Federal Tariff Service. All the measures will be taken in accordance with the model of the transport services market to 2015, approved by the RF Government, and the plan for its realisation.
In the words of Mrs Stebunova, it is planned to complete unification of tariffs independent from the type of communication, to define the order and time needed to unify tariffs on empty mileage, and to develop tariffs on the infrastructure services provided by RZD.
“The documents envisage the development of a normative and legislative base providing the technical and technological functioning of the sector to 2015. So, we can say that the tariff system is being reformed simultaneously with the railway sector. In some cases, the decisions made by the RF Federal Tariff Service become the basis for relevant technological solutions and decisions made to improve the normative and legislative base,” said Mrs Stebunova.
RZD Orders 1,200 Railcars from Siemens
Russian Railways has placed an order for further Desiro RUS type regional trains with Train Technologies, a joint venture of Siemens and the Russian rail technology manufacturer Sinara. The order, for which a preliminary contract was signed in June of this year, is for the delivery of 1,200 cars and is worth about two billion euros.
Production in the Ural Locomotives factory near Yekaterinburg is due to begin in 2013. RZD has also awarded Siemens a 40-year maintenance contract, effective 2013 and covering a total of 54 trains of the same type that RZD had already ordered in 2009 and 2010. This maintenance contract is worth about 500 million euros. The relevant agreements were signed by Peter Löscher, Siemens CEO, Vladimir Yakunin, RZD President, and Dmitriy Pumpyanskiy, President of the Sinara Group, at the international rail business forum “Expo 1520” in Shcherbinka near Moscow.
Starting in 2013, the 1,200 new cars ordered by RZD for the Desiro RUS type regional train are to be built in the Ural Locomotives plant near Yekaterinburg, where Siemens has been manufacturing electric freight locomotives since 2010 under the terms of a joint venture. “In all, we shall be investing more than 200 million euros in the Desiro production set-up – in modern buildings, machine tools and personnel training,” said Siemens CEO Peter Löscher.
“Siemens is the most successful non-Russian supplier of railway technology in that country. By localising production activities, we are strengthening this market position and securing our close ties with the Russian railway industry.” With the latest order for nearly 300 Desiro trains, Russia is creating the basis for modern and eco-friendly urban transportation for the future.
These new regional trains will offer enhanced comfort for passengers and train personnel alike. Besides that, compared with the trains currently operating in Russia, the new Siemens trains will consume roughly 30% less energy. Going by the name of Lastochka (“Little Swallow”) at RZD, the Desiro RUS can operate at a top speed of up to 160 kph. The vehicle is a development of the Desiro ML and has been specially adapted to the demands of the Russian market. This means not only resistance to temperatures as low as -40° Celsius, but also car bodies and bogies that are built for 1520-mm broad gauge track.
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[PREVIEW_TEXT] => On July 15, 2011, Russian Railways and VTB Bank signed a shareholder agreement and sale and purchase agreement for a 54.39% stake in TransCreditBank, of which the 29.39% share was to be acquired by VTB Bank by the end of July 2011. VTB paid RUR 16 billion, or around $ 570 million, for the 29.39% stake and may purchase the remaining share from Russian Railways from July 1, 2012 to December 31, 2013.
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[SECTION_META_TITLE] => Panorama economics
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[SECTION_META_DESCRIPTION] => On July 15, 2011, Russian Railways and VTB Bank signed a shareholder agreement and sale and purchase agreement for a 54.39% stake in TransCreditBank, of which the 29.39% share was to be acquired by VTB Bank by the end of July 2011. VTB paid RUR 16 billion, or around $ 570 million, for the 29.39% stake and may purchase the remaining share from Russian Railways from July 1, 2012 to December 31, 2013.
[ELEMENT_META_TITLE] => Panorama economics
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[ELEMENT_META_DESCRIPTION] => On July 15, 2011, Russian Railways and VTB Bank signed a shareholder agreement and sale and purchase agreement for a 54.39% stake in TransCreditBank, of which the 29.39% share was to be acquired by VTB Bank by the end of July 2011. VTB paid RUR 16 billion, or around $ 570 million, for the 29.39% stake and may purchase the remaining share from Russian Railways from July 1, 2012 to December 31, 2013.
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[SECTION_PICTURE_FILE_TITLE] => Panorama economics
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[SECTION_DETAIL_PICTURE_FILE_TITLE] => Panorama economics
[ELEMENT_PREVIEW_PICTURE_FILE_ALT] => Panorama economics
[ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => Panorama economics
[ELEMENT_DETAIL_PICTURE_FILE_ALT] => Panorama economics
[ELEMENT_DETAIL_PICTURE_FILE_TITLE] => Panorama economics
)
)
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