III КВАРТАЛ 2022Г. - 55 баллов
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[DETAIL_TEXT] => How profitable is it to construct transport infrastructure objects in Russia? Are they objectively in demand? How should they function and which cargo flows service? These very questions are on the potential investors' agenda now.
Quite recently all the warehouses and customs terminals were created by customs brokers. They could be situated anywhere, often in most inappropriate places. Thus, quite typical practice was to install a temporary shed in the open site. Basically, the functioning of such terminals reduced to customs formalities: the broker forwarded his declaration and received the required stamp. Cargo was examined on an irregular basis. What goods were imported in the country could only be seen in the shops, as there was no statistics to register such a trade inflow. The state budget and transport organizations suffered losses due to such "schemes".
Today the situation is different. The new Customs Code and the new Board of the Federal Customs Service have already liquidated some of illegal transportation schemes. The process of cars customs registration was quickly improved, which resulted in clear certainty about real costs of foreign cars, as the importer, the producer's representative, informs the Federal Customs Service himself.
However, it was only the first step to improve the situation. Now the problem of South-Asian produce delivery waits for its turn to be solved. Everyone who has ever dealt with transportation problems knows pretty well that Finland plays the role of "gates" on Russia's way to China, Korea and Japan. Finland can offer everything you need for this: developed transport infrastructure, comfortable deep-sea ports, network of customs warehouses where registration is reliable and precise in comparison with Russian terminals where you can never forecast your goods fate. Consequently, Russia's foreign trade balance significantly differs from the balances of the above-mentioned countries. For example, there are situation when produce worth USD 10 bln is imported in Russia, but on Russian papers it states that we only received it worth USD 5 bln. Not long ago foreign producers didn't care about who and how exactly sells their produce in Russia, but with customs control toughening such interest has arisen. The number of illegal import attempts discovered by the customs has grown. Operative departments of the customs and other services now analyzes cargo flows much better. In this respect, we believe the day when domestic appliances, computers and clothes of famous producers will be imported by the distributors themselves is not too far away.
Moreover, OAO RZD plans to revise its tariff policy that will make transportation from the Russian Far East to Moscow and Saint-Petersburg cheaper, compared to the scheme when goods are transported along the same route via Finland. That will be the time for terminals in developed Russian transport junctions to be built by transport companies and importers, while the need to use illegal transportation schemes will disappear, as no carrier who invested heavy sums in its brand promotion will ever risk his name for the sake of shady deals.
"Predportovy" logistic center constructed by Eurosib JSC is one of the first European level terminals in Russia capable to compete with the terminals of the neighbouring countries. It is ten kilometers away from the Port of Saint-Petersburg and located at the crossing of the ring road and the Western Speed Diameter. Quite notably earlier the "Predportovaya" railway station was out of the commercial sea port of Saint-Petersburg structure, but now the logistic center will be connected with the port by a regular block train providing mass container transportation from the port.
Big container lines have already shown great interest in the logistic center. The fact that Saint-Petersburg container terminals capacities suffer overload is no secret, while goods warehousing in the berth areas is costly. Now the port should handle the goods to forward them immediately, and container handling should reach great volumes in the maximum short period. Eurosib JSC new logistic center aims to sort this problem out.
Developed technology is simple and thus perfect. According to the contracts signed, containers will be directly delivered to the terminal, where they can pass customs control, be carried to the warehouse or loaded on a rail-car or truck. Cargo can be destined for further transportation or kept for a bigger shipment. In other words, the logistic center can provide all the services that are unprofitable and impossible for a port. The most attractive thing for container lines is an opportunity to unload container fast and also a chance to send it for getting back load by any transport mode to any place in the country, which allows companies to expand their clients net in Russia.
"Eurosib-Terminal" JSC will start operating in January 2006.
[~DETAIL_TEXT] => How profitable is it to construct transport infrastructure objects in Russia? Are they objectively in demand? How should they function and which cargo flows service? These very questions are on the potential investors' agenda now.
Quite recently all the warehouses and customs terminals were created by customs brokers. They could be situated anywhere, often in most inappropriate places. Thus, quite typical practice was to install a temporary shed in the open site. Basically, the functioning of such terminals reduced to customs formalities: the broker forwarded his declaration and received the required stamp. Cargo was examined on an irregular basis. What goods were imported in the country could only be seen in the shops, as there was no statistics to register such a trade inflow. The state budget and transport organizations suffered losses due to such "schemes".
Today the situation is different. The new Customs Code and the new Board of the Federal Customs Service have already liquidated some of illegal transportation schemes. The process of cars customs registration was quickly improved, which resulted in clear certainty about real costs of foreign cars, as the importer, the producer's representative, informs the Federal Customs Service himself.
However, it was only the first step to improve the situation. Now the problem of South-Asian produce delivery waits for its turn to be solved. Everyone who has ever dealt with transportation problems knows pretty well that Finland plays the role of "gates" on Russia's way to China, Korea and Japan. Finland can offer everything you need for this: developed transport infrastructure, comfortable deep-sea ports, network of customs warehouses where registration is reliable and precise in comparison with Russian terminals where you can never forecast your goods fate. Consequently, Russia's foreign trade balance significantly differs from the balances of the above-mentioned countries. For example, there are situation when produce worth USD 10 bln is imported in Russia, but on Russian papers it states that we only received it worth USD 5 bln. Not long ago foreign producers didn't care about who and how exactly sells their produce in Russia, but with customs control toughening such interest has arisen. The number of illegal import attempts discovered by the customs has grown. Operative departments of the customs and other services now analyzes cargo flows much better. In this respect, we believe the day when domestic appliances, computers and clothes of famous producers will be imported by the distributors themselves is not too far away.
Moreover, OAO RZD plans to revise its tariff policy that will make transportation from the Russian Far East to Moscow and Saint-Petersburg cheaper, compared to the scheme when goods are transported along the same route via Finland. That will be the time for terminals in developed Russian transport junctions to be built by transport companies and importers, while the need to use illegal transportation schemes will disappear, as no carrier who invested heavy sums in its brand promotion will ever risk his name for the sake of shady deals.
"Predportovy" logistic center constructed by Eurosib JSC is one of the first European level terminals in Russia capable to compete with the terminals of the neighbouring countries. It is ten kilometers away from the Port of Saint-Petersburg and located at the crossing of the ring road and the Western Speed Diameter. Quite notably earlier the "Predportovaya" railway station was out of the commercial sea port of Saint-Petersburg structure, but now the logistic center will be connected with the port by a regular block train providing mass container transportation from the port.
Big container lines have already shown great interest in the logistic center. The fact that Saint-Petersburg container terminals capacities suffer overload is no secret, while goods warehousing in the berth areas is costly. Now the port should handle the goods to forward them immediately, and container handling should reach great volumes in the maximum short period. Eurosib JSC new logistic center aims to sort this problem out.
Developed technology is simple and thus perfect. According to the contracts signed, containers will be directly delivered to the terminal, where they can pass customs control, be carried to the warehouse or loaded on a rail-car or truck. Cargo can be destined for further transportation or kept for a bigger shipment. In other words, the logistic center can provide all the services that are unprofitable and impossible for a port. The most attractive thing for container lines is an opportunity to unload container fast and also a chance to send it for getting back load by any transport mode to any place in the country, which allows companies to expand their clients net in Russia.
"Eurosib-Terminal" JSC will start operating in January 2006.
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[DETAIL_TEXT] => How profitable is it to construct transport infrastructure objects in Russia? Are they objectively in demand? How should they function and which cargo flows service? These very questions are on the potential investors' agenda now.
Quite recently all the warehouses and customs terminals were created by customs brokers. They could be situated anywhere, often in most inappropriate places. Thus, quite typical practice was to install a temporary shed in the open site. Basically, the functioning of such terminals reduced to customs formalities: the broker forwarded his declaration and received the required stamp. Cargo was examined on an irregular basis. What goods were imported in the country could only be seen in the shops, as there was no statistics to register such a trade inflow. The state budget and transport organizations suffered losses due to such "schemes".
Today the situation is different. The new Customs Code and the new Board of the Federal Customs Service have already liquidated some of illegal transportation schemes. The process of cars customs registration was quickly improved, which resulted in clear certainty about real costs of foreign cars, as the importer, the producer's representative, informs the Federal Customs Service himself.
However, it was only the first step to improve the situation. Now the problem of South-Asian produce delivery waits for its turn to be solved. Everyone who has ever dealt with transportation problems knows pretty well that Finland plays the role of "gates" on Russia's way to China, Korea and Japan. Finland can offer everything you need for this: developed transport infrastructure, comfortable deep-sea ports, network of customs warehouses where registration is reliable and precise in comparison with Russian terminals where you can never forecast your goods fate. Consequently, Russia's foreign trade balance significantly differs from the balances of the above-mentioned countries. For example, there are situation when produce worth USD 10 bln is imported in Russia, but on Russian papers it states that we only received it worth USD 5 bln. Not long ago foreign producers didn't care about who and how exactly sells their produce in Russia, but with customs control toughening such interest has arisen. The number of illegal import attempts discovered by the customs has grown. Operative departments of the customs and other services now analyzes cargo flows much better. In this respect, we believe the day when domestic appliances, computers and clothes of famous producers will be imported by the distributors themselves is not too far away.
Moreover, OAO RZD plans to revise its tariff policy that will make transportation from the Russian Far East to Moscow and Saint-Petersburg cheaper, compared to the scheme when goods are transported along the same route via Finland. That will be the time for terminals in developed Russian transport junctions to be built by transport companies and importers, while the need to use illegal transportation schemes will disappear, as no carrier who invested heavy sums in its brand promotion will ever risk his name for the sake of shady deals.
"Predportovy" logistic center constructed by Eurosib JSC is one of the first European level terminals in Russia capable to compete with the terminals of the neighbouring countries. It is ten kilometers away from the Port of Saint-Petersburg and located at the crossing of the ring road and the Western Speed Diameter. Quite notably earlier the "Predportovaya" railway station was out of the commercial sea port of Saint-Petersburg structure, but now the logistic center will be connected with the port by a regular block train providing mass container transportation from the port.
Big container lines have already shown great interest in the logistic center. The fact that Saint-Petersburg container terminals capacities suffer overload is no secret, while goods warehousing in the berth areas is costly. Now the port should handle the goods to forward them immediately, and container handling should reach great volumes in the maximum short period. Eurosib JSC new logistic center aims to sort this problem out.
Developed technology is simple and thus perfect. According to the contracts signed, containers will be directly delivered to the terminal, where they can pass customs control, be carried to the warehouse or loaded on a rail-car or truck. Cargo can be destined for further transportation or kept for a bigger shipment. In other words, the logistic center can provide all the services that are unprofitable and impossible for a port. The most attractive thing for container lines is an opportunity to unload container fast and also a chance to send it for getting back load by any transport mode to any place in the country, which allows companies to expand their clients net in Russia.
"Eurosib-Terminal" JSC will start operating in January 2006.
[~DETAIL_TEXT] => How profitable is it to construct transport infrastructure objects in Russia? Are they objectively in demand? How should they function and which cargo flows service? These very questions are on the potential investors' agenda now.
Quite recently all the warehouses and customs terminals were created by customs brokers. They could be situated anywhere, often in most inappropriate places. Thus, quite typical practice was to install a temporary shed in the open site. Basically, the functioning of such terminals reduced to customs formalities: the broker forwarded his declaration and received the required stamp. Cargo was examined on an irregular basis. What goods were imported in the country could only be seen in the shops, as there was no statistics to register such a trade inflow. The state budget and transport organizations suffered losses due to such "schemes".
Today the situation is different. The new Customs Code and the new Board of the Federal Customs Service have already liquidated some of illegal transportation schemes. The process of cars customs registration was quickly improved, which resulted in clear certainty about real costs of foreign cars, as the importer, the producer's representative, informs the Federal Customs Service himself.
However, it was only the first step to improve the situation. Now the problem of South-Asian produce delivery waits for its turn to be solved. Everyone who has ever dealt with transportation problems knows pretty well that Finland plays the role of "gates" on Russia's way to China, Korea and Japan. Finland can offer everything you need for this: developed transport infrastructure, comfortable deep-sea ports, network of customs warehouses where registration is reliable and precise in comparison with Russian terminals where you can never forecast your goods fate. Consequently, Russia's foreign trade balance significantly differs from the balances of the above-mentioned countries. For example, there are situation when produce worth USD 10 bln is imported in Russia, but on Russian papers it states that we only received it worth USD 5 bln. Not long ago foreign producers didn't care about who and how exactly sells their produce in Russia, but with customs control toughening such interest has arisen. The number of illegal import attempts discovered by the customs has grown. Operative departments of the customs and other services now analyzes cargo flows much better. In this respect, we believe the day when domestic appliances, computers and clothes of famous producers will be imported by the distributors themselves is not too far away.
Moreover, OAO RZD plans to revise its tariff policy that will make transportation from the Russian Far East to Moscow and Saint-Petersburg cheaper, compared to the scheme when goods are transported along the same route via Finland. That will be the time for terminals in developed Russian transport junctions to be built by transport companies and importers, while the need to use illegal transportation schemes will disappear, as no carrier who invested heavy sums in its brand promotion will ever risk his name for the sake of shady deals.
"Predportovy" logistic center constructed by Eurosib JSC is one of the first European level terminals in Russia capable to compete with the terminals of the neighbouring countries. It is ten kilometers away from the Port of Saint-Petersburg and located at the crossing of the ring road and the Western Speed Diameter. Quite notably earlier the "Predportovaya" railway station was out of the commercial sea port of Saint-Petersburg structure, but now the logistic center will be connected with the port by a regular block train providing mass container transportation from the port.
Big container lines have already shown great interest in the logistic center. The fact that Saint-Petersburg container terminals capacities suffer overload is no secret, while goods warehousing in the berth areas is costly. Now the port should handle the goods to forward them immediately, and container handling should reach great volumes in the maximum short period. Eurosib JSC new logistic center aims to sort this problem out.
Developed technology is simple and thus perfect. According to the contracts signed, containers will be directly delivered to the terminal, where they can pass customs control, be carried to the warehouse or loaded on a rail-car or truck. Cargo can be destined for further transportation or kept for a bigger shipment. In other words, the logistic center can provide all the services that are unprofitable and impossible for a port. The most attractive thing for container lines is an opportunity to unload container fast and also a chance to send it for getting back load by any transport mode to any place in the country, which allows companies to expand their clients net in Russia.
"Eurosib-Terminal" JSC will start operating in January 2006.
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[~NAME] => OAO RZD voices new objectives
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[DETAIL_TEXT] => In June 2005 Vladimir Yakunin,who previously acted as the company's senior vice-president, was appointed OAO RZD president. What alterations in strategy and tactic will the corporation undergo? Some of them were demonstrated by the first programme reports and early decisions made by the new head of the company.
Don't make it worse
Gennady Fadeyev's work undoubtedly constitutes a whole epoch in the history of Russian railway transport: he acted as OAO RZD previous president, having been appointed the RF Minister of Means of Communications twice before. It is worth noting that it was him who had to start the reforms, although he had seriously opposed the privatization of the sector till 2002.
We can't but admit he couldn't have left such a significant trace in history and fulfilled his mission, if it hadn't been his great personal qualities, such as state-wide outlook, ability to respond to modern challenges, love of common sense and the highest level of responsibility for transport evolvement and the country's prosperity. His greatest contribution to Russia's development envisages highly-skilled implementation of the first step of transfer from the administratively controlled to the free market economic model within the transitional period of the Russian railway transport history.
This could have been done only by such a person as Mr.Fadeyev: a railway professional, brilliant at his work and an authority both inside the sector and as seen by state structures representatives. It was not surprising to hear one deputy saying, as he was discussing the future of the reform in terms of its new legislative base in the State Duma in 2002-2003, "Mr. Fadeyev, you are "for" the changes in question and it does matter to us. But if it were not you, I suppose, the fate of these projects would be totally different."
While the reform was unfolding, G. Fadeyev's credo always was a total approval of evolutionary approach and keeping a balance between the state, the customer and the company's interests.However, the most remarkable slogan of his that stuck in everybody's mind was "Don't make it worse". While breaking down old and worn out economic models, it was surely a quite efficient and helpful guideline.
However, after a year in the market, it was clear to everybody that OAO RZD should go further, as creating a new monopolist creation could not be seen as a key task of the reform. G. Fadeyev quite objectively perceived this necessity for further movement as a need for splitting his newly born "child" into several parts. On the one hand, the head of the company stood for further restructuring in OAO RZD. On the other hand, he didn't hide his real attitude, for example, to the discussion of the perspectives for infrastructure and transportation businesses separation. He noted, "Don't cherish these illusions - we'll never have such conditions. But if we separate them anyway and ruin the company, quite a few in the West will applaud us: ".
As mentioned before, it is hard to make a corporation work intensively to create favourable conditions for competitors and de-monopolize the company itself. It was even harder to imagine Mr. Fadeyev do it, considering his experience.
Epoch change
Vladimir Yakunin's taking the post was not regarded as unexpected news by the transport community. Having acted as a senior deputy of the RF transport minister since February 2002, he controlled the way of the railway transport reform unfolding. He noted, " My duty was to protect the state interests".
At the same time it was quite clear that Mr.Yakunin shared the idea of taking a more dynamic course towards market changes. Thus, at the session of the company's Board in April 2005, he expressed his devotion to the course of competition to reach a new level of railway services, stating in particular, "Let's analyze the claims we have to deal: this is a chance to see how well-grounded they are and in what sense exactly we should work harder to find urgent solutions. We should decide which claims should be objectively addressed to the State Duma, the Government, independent market players themselves and us. We should find allies and push reforms forward making officials do their work".
In general, the transport community sees V.Yakunin's appointment as a natural change of generations, and a new impulse to follow the way to a civilized market. In particular, all partners of OAO RZD clearly see the necessity to modernize the company in some basic directions, such as human resources policy, corporate structure, financial-economic transparency, business image etc.
Leadership as a Target
One month after taking up the post, V.Yakunin presented his programme speech to the company's regional colleagues at a selectoral meeting. He openly stated that certain changes of the corporate policy are needed and they will be implemented in the mid- and long-term perspective. Commenting on his vision of the company's perspectives, he confirmed his loyalty to the Strategic development programme until 2010, worked out with his own immediate participation. According to this document, "the mission of the dynamically growing national transport company OAO RZD is to satisfy market transportation demands, to increase efficiency of its activities and quality of services and to contribute to the deep integration into the Euro-Asian transport system".
At the same time V.Yakunin noted that many of the tasks declared are not being fulfilled. That is to say the company hasn't become the dynamically growing, marketable and competitive structure it ought to be.
That is why he formulated the essence and the target of the new stage for the company development. He said in particular, "We must turn into a marketable and competitive company. A company that carries responsibilities for the national railways infrastructure. A company that earns money in the cargo transportation market. A company that reaches prospective competitive markets adjacent to railway transportation". At the same time, he underlined that the present-day targets of the do not aim only to become a leader in the Russian transport sector. He stated, "Our major task is of more global nature and envisages the duty to make our company the best one in the domestic market, considering all the parameters, such as financial stability, development potential and capital viability"
Changes Rates are Poor
The "pulse" of the sector is now the railway transport reform. Mr.Yakunin characterized positively the way the reform is unfolding. "We have all the grounds to state that the Russian railways reform strictly corresponds to the approved legislative documents and is going on quite effectively, without any dramatic failures", - the president said. He also noted that, according to the Programme, by the end of the second stage the following tasks should be fulfilled: cargo transportation competition growth, OAO RZD control structure optimization (including control organization role strengthening for each separate type of activities), transfer to free pricing within competitive sectors, cutting down crossed subsiding for passenger transportation etc.
He believes some problems with planned Government Bills approval will be solved soon. Quite objectively such state of affaires can be explained by the executive power federal bodies reform held in 2004.
Special attention should be paid to the issue of OAO RZD affiliates separation. In 2004 OAO RZD Board considered and approved the concepts of affiliates establishment for all the areas of company's activities. Also, the Board approved the concepts for reforms in nine areas. So far only the first affiliate on railway automatics production "Unified electrotechnical works" JSC ("Elteza") has been created. Moreover, multimodal carrier "Russkaya Troyka" JSC has been established, with the Far Eastern Shipping Company participating in the project.
"I have to confess the changes rates achieved by now are not satisfactory to reach the basic targets of the structural reform. Such a state of affaires is a direct result of quite complicated regulations set up by the Board for making decisions on affiliates establishment", Mr.Yakunin stated.
He said that at present a project on simplifying the procedures for affiliates establishment has been developed. Also, some offers to amend other normative documents were initiated. For example, the Government Bill № 57 effective from February 6, 2004 on restrictions in property objects of OAO RZD turnover states that most locomotive and cars depots are limited in turnover, being objects to perform mobilization tasks. That is to say that they can neither be separated, nor sold, nor even used in the most effective schemes for private investment attraction. "We consider it worthwhile to approve our project on simplifying these procedures", V.Yakunin noted.
Discipline and Motivation
In the president's words, one of the most important directions to be developed is the re-organization of corporate control to reach a new level of functioning by both the company's main body and its branch and territorial departments. He offers to improve the scheme of carrying responsibilities and motivation mechanisms in the company.
At present, the company is working on a fundamentally new system of quality control called "Stages of efficiency". The essence of the system is as follows: each industrial and administrative operation should be performed not only by a respective manager responsible for the process itself, but any given operation should undergo a strict control procedure that would exclude any defect. "The system created for quality control should become an organic element of the whole company control in general. We should integrate quality data into all the controlling processes, starting from the policy of working place organization to making decisions by the company's top-management.", V.Yakunin said. Moreover, the Disciplinary Commission to supervise the performance of functionary and corporate-ethic norms by the employees has already been created.
Together with this, special attention will be paid to such important components of quality control as stimulation and motivation. In this respect, a set of measures for radical upgrading of already existing relations will be implemented.
One side of this process is introducing self-financing work in every area where relations of this sort are possible and expedient. In V.Yakunin's opinion, the company should function in such a way that every group would feel certain dependence of their well-being on demonstrated industrial results.
Also, human resources mechanisms should be seriously re-organized. The major motivation role in this sector should play such things as enhancing the social and economic status of a "railway man", stimulating qualitative labour results and encouraging initiative, making social programmes highly transparent, developing corporate ethic laws etc.
The head of the company pays significant attention to corporate policy for young people. He believes grant programme should be launched when school-leavers and students could get OAO RZD subsidies to study at railway or other universities.
Competitionis to be Won
It is quite clear that OAO RZD partners and clients are first of all interested in the new president's attitude to the company's relations with other transportation market players. Last year most frequently discussed issue was OAO RZD position regarding the emerging competition in the sector. Then the wide-spread ideas in the company were the competition is not the unique target of the reform, but only one of the ways to efficient functioning. Also, it was thought that more attention should be paid to improving the functioning of the state regulation mechanisms on de-monopolization processes. In April Mr.Yakunin spoke at the company's Board session where different priorities were claimed. He highlighted his devotion to competition development once again as the president.
He noted that now the company already competes at different levels such as international, inter-sectoral, intrasectoral etc. competition. The major problem is that the company is losing this competition. Container flow switched to sea and tracks. Oil bulk turns to river transport, oil pipelines and private operators, while our position in this area is weak. Other high-profitable cargoes also go to operators.
In 2004 the most intensive growth of private cargo cars for the last ten years was registered, it amounted to 30 thousand units. The park of private rolling stock already reached 262,3 thousand cars that transport one third of the total cargo volume and this figure is constantly growing.
"Today private operators meet their clients' demands much better and thus can satisfy them more efficiently. It happens so that while working on one and the same technological basis and infrastructure we lose positions in clients' servicing.
That means we should learn how to service clients and introduce differentiated approach to our activities offering scaled classes of services. We should make our transportation activities technology work to satisfy modern demands. At last the time has come to offer the market integrated transport services and become a sort of "transport integrator" stretching our influence geography over the railway infrastructure boundaries", V.Yakunin said.
"No" to Total Separation
A very important issue for normative-and-legislative base today is the problem of total separation between transportation and infrastructure businesses by OAO RZD. In this respect V.Yakunin expressed his position directly, "It is quite clear today that to provide financial stability the company must participate in transportation business. Moreover this transportation should be of high-quality, safe and effective sort. In my opinion, transportation market development doesn't imply that OAO RZD should leave the market soon, stop its park upgrading and break contracts with highly profitable consignors. No, the tendency here should take another route i.e. as the share of independent carriers grows in the market the competition conditions should be leveled by either equal distribution of high- and low-profit cargoes, or their unification".
The Programme of the structural reform envisages keeping 50% of rolling stock in the hands of OAO RZD. V.Yakunin states that these figures should remain unchanged in the long-term perspective. "Anyway I strongly believe we should approach the opportunity to separate infrastructure and transportation very carefully", he says.
At the same time he stated OAO RZD will do its best to allow private carriers and operators non-discriminatory access to infrastructure. "Guaranteed providing of non-discriminatory competition conditions to all cargo transportation market players is one of the key issues of the reform. I'd like to remind you that the basic idea envisages the situation when all the companies, both our affiliates and independent private ones, could have equal rights and functions and could not take advantages that are beyond other market participants opportunities", he commented.
Tariffs and Financial Transparency
Price is known to be a primary market category. In this respect Mr.Yakunin considers the de-regulation of railway transportation tariffs in competitive segments a crucial issue. "We are wasting much time due to our inability to follow really flexible and efficient tariff policy to take advantage of car component and react to the changes in the market", the president said.
The Federal Tariff Service of Russia resists the transfer to free tariffs accusing OAO RZD of non-transparent accounting for separate types of activities. The RF Ministry of Economic Development and Trade also shares this idea and states that tariffs de-regulation for this segment is possible only under the condition of separating all the company's transportation expenditures into an independent balance, including car repair and maintenance costs, as well as their empty-running. At the same time, the above-mentioned expenditures should be excluded from regulated tariff segment.
V.Yakunin agrees that these arguments are economically grounded. In his words, that is the reason why the company is working in two directions. Firstly, the corporation's financial and economic system is being restructured. Last year the Government Bill on accounting for separate types of activities performed by OAO RZD was approved. Expenditures separation was also implemented, and in 2005 profit separation for basic components of cargo and passenger transportation is carried on (car, infrastructure, locomotive components for cargo transportation; passenger and railway station components for passenger complex).
It should be objectively confessed that the creation of a unified system of accounting for such a great complex as OAO RZD is an extraordinarily complicated task. In practice components different from the theoretical point of view function as a whole industrial body. But OAO RZD is ready to find solutions.
Moreover, the president shares the opinion that this problem can be solved in a more efficient and easy way by organizational separation of a given business of OAO RZD either into a branch possessing its own property and keeping its own balance, or an affiliate. Plans for separation of oil bulk transportation affiliate are developed today, Mr.Yakunin reported. "I think it is worthwhile now to consider the same way of development for other competitive types of transportation", he noted.
One more crucial issue nowadays is foreign and domestic railway tariffs unification. It often happens that transportation cost to the domestic ports is half the cost of transportation to border cross posts for further delivery to the ports of foreign countries.
That was the reason of cargo flows re-direction from border stations towards the ports of Russia that resulted in OAO RZD profit drop. Starting from 2005 the state regulation bodies launched a staged process of tariffs leveling. It is to be completed in three-four years. V.Yakunin sees this course as quite adequate to the current economic situation, considering the fact it goes hand in hand with the demands for Russia's joining the WTO.
International Transport-Economic Integration
One of the targets of the OAO RZD Strategic Programme is a further integration of Russian railways into the Euro-Asian transport system. No doubts this issue will be dealt with in accordance with the previous course. However, Mr.Yakunin claimed earlier he worries about certain aspects in this respect.
First of all, in his words, it concerns the vividly expressed tendency for growing competition on behalf of the CIS and Baltic countries, as well as on behalf of Korean and Chinese railways. Attempts to re-direct international cargo flows from the territory of Russia to alternative routes are constantly made. In particular, such projects as TRASEKA, TransChinese and TransKazakhstan routes have been launched.
V.Yakunin believes that, on the one hand, the company has much to do to strengthen its competition, as it is inadmissible and wrong to refer to initially given advantages of Russia's specific geographical location. That is to say, this potential should be implemented into practice to acquire benefits. "It is urgently needed to provide competitive service, namely that of offering "through" tariffs, door-to-door cargo delivery under conditions of safety and fulfillment of terms obligations in order to conquer the international transportation market", he stated.
At the same time, the president focuses on another issue which is the great opportunities of international cooperation within passenger and cargo transportation sector. "We see it worthwhile to hold negotiations with Chinese cargo owners and carriers offering them a chance to transport their cargo via the Russian routes and emphasizing the economic profitability of cooperation with OAO RZD. One of the steps to attract Chinese cargo to Russian railways can become the establishment of a joint operator company for the route Asia-Europe", Mr.Yakunin said.
Among certain projects for international cooperation development the following ones can be named: launching common logistic centers and other corporate models of cooperation with Deutche Bahn; the project of railway communication reconstruction between Russia and Georgia via Abkhazia; Russian Far East - Slavkov (Poland) route launch; the formation of cargo flows along the International Transport Corridor North - South etc.
The major directions in which OAO RZD plans to develop its cooperation with the EU are traditional. They are as follows: steps on unifying transport legislation; simplifying border cross posts and customs procedures; creating a unified informational space; establishing joint-stock companies for carriers etc. Speaking of clear-cut plans, the priority ones are as follows: building up a cargo-passenger motor track-railway-ferry complex in Ust-Luga, Baltyisk - ports of Germany.
Also there is a four-lateral project on cargo and passenger transportation volumes increase within the International Transport Corridor № 2, which envisages steps to overcome technical, technological and organization problems. Railways of Germany, Poland, Belarus and Russia actively participate in this project.
At present the work on high-speed line Saint-Petersburg - Helsinki is being carried on.
In the North-West region the programme of electronic document turnover "TEDIM" directed at significant optimization of cargo transportation is being implemented.
Heavy funds are invested into Kaliningrad transport junction and project "2К" development in order to increase transportation volumes and bring the object's infrastructure to the European norms and standards.
In general, Mr.Yakunin points out that the company plans to stretch its marketing activities at the international transport markets, take greater part in international transport organizations, react to market offers on joint companies establishment or launching joint bilateral or trilateral projects in a more efficient way, in order to promote a further OAO RZD integration into the Euro-Asian transport system.
Summing Up
Thus, ОАО RZD opens a new page in its history. When Vladimir Yakunin's appointment was announced, our magazine held a poll for the transport market participants. Our request was to express their expectations concerning the new president's future activities.
On the whole, representatives of the transport business community said they count on the enhancing of the market approach as well as new quality of services and more efficient economic model based on principles of free enterprise.
At present the programme declared by Vladimir Yakunin makes us believe these hopes and expectations will come true.
Andrey Guryev
[~DETAIL_TEXT] => In June 2005 Vladimir Yakunin,who previously acted as the company's senior vice-president, was appointed OAO RZD president. What alterations in strategy and tactic will the corporation undergo? Some of them were demonstrated by the first programme reports and early decisions made by the new head of the company.
Don't make it worse
Gennady Fadeyev's work undoubtedly constitutes a whole epoch in the history of Russian railway transport: he acted as OAO RZD previous president, having been appointed the RF Minister of Means of Communications twice before. It is worth noting that it was him who had to start the reforms, although he had seriously opposed the privatization of the sector till 2002.
We can't but admit he couldn't have left such a significant trace in history and fulfilled his mission, if it hadn't been his great personal qualities, such as state-wide outlook, ability to respond to modern challenges, love of common sense and the highest level of responsibility for transport evolvement and the country's prosperity. His greatest contribution to Russia's development envisages highly-skilled implementation of the first step of transfer from the administratively controlled to the free market economic model within the transitional period of the Russian railway transport history.
This could have been done only by such a person as Mr.Fadeyev: a railway professional, brilliant at his work and an authority both inside the sector and as seen by state structures representatives. It was not surprising to hear one deputy saying, as he was discussing the future of the reform in terms of its new legislative base in the State Duma in 2002-2003, "Mr. Fadeyev, you are "for" the changes in question and it does matter to us. But if it were not you, I suppose, the fate of these projects would be totally different."
While the reform was unfolding, G. Fadeyev's credo always was a total approval of evolutionary approach and keeping a balance between the state, the customer and the company's interests.However, the most remarkable slogan of his that stuck in everybody's mind was "Don't make it worse". While breaking down old and worn out economic models, it was surely a quite efficient and helpful guideline.
However, after a year in the market, it was clear to everybody that OAO RZD should go further, as creating a new monopolist creation could not be seen as a key task of the reform. G. Fadeyev quite objectively perceived this necessity for further movement as a need for splitting his newly born "child" into several parts. On the one hand, the head of the company stood for further restructuring in OAO RZD. On the other hand, he didn't hide his real attitude, for example, to the discussion of the perspectives for infrastructure and transportation businesses separation. He noted, "Don't cherish these illusions - we'll never have such conditions. But if we separate them anyway and ruin the company, quite a few in the West will applaud us: ".
As mentioned before, it is hard to make a corporation work intensively to create favourable conditions for competitors and de-monopolize the company itself. It was even harder to imagine Mr. Fadeyev do it, considering his experience.
Epoch change
Vladimir Yakunin's taking the post was not regarded as unexpected news by the transport community. Having acted as a senior deputy of the RF transport minister since February 2002, he controlled the way of the railway transport reform unfolding. He noted, " My duty was to protect the state interests".
At the same time it was quite clear that Mr.Yakunin shared the idea of taking a more dynamic course towards market changes. Thus, at the session of the company's Board in April 2005, he expressed his devotion to the course of competition to reach a new level of railway services, stating in particular, "Let's analyze the claims we have to deal: this is a chance to see how well-grounded they are and in what sense exactly we should work harder to find urgent solutions. We should decide which claims should be objectively addressed to the State Duma, the Government, independent market players themselves and us. We should find allies and push reforms forward making officials do their work".
In general, the transport community sees V.Yakunin's appointment as a natural change of generations, and a new impulse to follow the way to a civilized market. In particular, all partners of OAO RZD clearly see the necessity to modernize the company in some basic directions, such as human resources policy, corporate structure, financial-economic transparency, business image etc.
Leadership as a Target
One month after taking up the post, V.Yakunin presented his programme speech to the company's regional colleagues at a selectoral meeting. He openly stated that certain changes of the corporate policy are needed and they will be implemented in the mid- and long-term perspective. Commenting on his vision of the company's perspectives, he confirmed his loyalty to the Strategic development programme until 2010, worked out with his own immediate participation. According to this document, "the mission of the dynamically growing national transport company OAO RZD is to satisfy market transportation demands, to increase efficiency of its activities and quality of services and to contribute to the deep integration into the Euro-Asian transport system".
At the same time V.Yakunin noted that many of the tasks declared are not being fulfilled. That is to say the company hasn't become the dynamically growing, marketable and competitive structure it ought to be.
That is why he formulated the essence and the target of the new stage for the company development. He said in particular, "We must turn into a marketable and competitive company. A company that carries responsibilities for the national railways infrastructure. A company that earns money in the cargo transportation market. A company that reaches prospective competitive markets adjacent to railway transportation". At the same time, he underlined that the present-day targets of the do not aim only to become a leader in the Russian transport sector. He stated, "Our major task is of more global nature and envisages the duty to make our company the best one in the domestic market, considering all the parameters, such as financial stability, development potential and capital viability"
Changes Rates are Poor
The "pulse" of the sector is now the railway transport reform. Mr.Yakunin characterized positively the way the reform is unfolding. "We have all the grounds to state that the Russian railways reform strictly corresponds to the approved legislative documents and is going on quite effectively, without any dramatic failures", - the president said. He also noted that, according to the Programme, by the end of the second stage the following tasks should be fulfilled: cargo transportation competition growth, OAO RZD control structure optimization (including control organization role strengthening for each separate type of activities), transfer to free pricing within competitive sectors, cutting down crossed subsiding for passenger transportation etc.
He believes some problems with planned Government Bills approval will be solved soon. Quite objectively such state of affaires can be explained by the executive power federal bodies reform held in 2004.
Special attention should be paid to the issue of OAO RZD affiliates separation. In 2004 OAO RZD Board considered and approved the concepts of affiliates establishment for all the areas of company's activities. Also, the Board approved the concepts for reforms in nine areas. So far only the first affiliate on railway automatics production "Unified electrotechnical works" JSC ("Elteza") has been created. Moreover, multimodal carrier "Russkaya Troyka" JSC has been established, with the Far Eastern Shipping Company participating in the project.
"I have to confess the changes rates achieved by now are not satisfactory to reach the basic targets of the structural reform. Such a state of affaires is a direct result of quite complicated regulations set up by the Board for making decisions on affiliates establishment", Mr.Yakunin stated.
He said that at present a project on simplifying the procedures for affiliates establishment has been developed. Also, some offers to amend other normative documents were initiated. For example, the Government Bill № 57 effective from February 6, 2004 on restrictions in property objects of OAO RZD turnover states that most locomotive and cars depots are limited in turnover, being objects to perform mobilization tasks. That is to say that they can neither be separated, nor sold, nor even used in the most effective schemes for private investment attraction. "We consider it worthwhile to approve our project on simplifying these procedures", V.Yakunin noted.
Discipline and Motivation
In the president's words, one of the most important directions to be developed is the re-organization of corporate control to reach a new level of functioning by both the company's main body and its branch and territorial departments. He offers to improve the scheme of carrying responsibilities and motivation mechanisms in the company.
At present, the company is working on a fundamentally new system of quality control called "Stages of efficiency". The essence of the system is as follows: each industrial and administrative operation should be performed not only by a respective manager responsible for the process itself, but any given operation should undergo a strict control procedure that would exclude any defect. "The system created for quality control should become an organic element of the whole company control in general. We should integrate quality data into all the controlling processes, starting from the policy of working place organization to making decisions by the company's top-management.", V.Yakunin said. Moreover, the Disciplinary Commission to supervise the performance of functionary and corporate-ethic norms by the employees has already been created.
Together with this, special attention will be paid to such important components of quality control as stimulation and motivation. In this respect, a set of measures for radical upgrading of already existing relations will be implemented.
One side of this process is introducing self-financing work in every area where relations of this sort are possible and expedient. In V.Yakunin's opinion, the company should function in such a way that every group would feel certain dependence of their well-being on demonstrated industrial results.
Also, human resources mechanisms should be seriously re-organized. The major motivation role in this sector should play such things as enhancing the social and economic status of a "railway man", stimulating qualitative labour results and encouraging initiative, making social programmes highly transparent, developing corporate ethic laws etc.
The head of the company pays significant attention to corporate policy for young people. He believes grant programme should be launched when school-leavers and students could get OAO RZD subsidies to study at railway or other universities.
Competitionis to be Won
It is quite clear that OAO RZD partners and clients are first of all interested in the new president's attitude to the company's relations with other transportation market players. Last year most frequently discussed issue was OAO RZD position regarding the emerging competition in the sector. Then the wide-spread ideas in the company were the competition is not the unique target of the reform, but only one of the ways to efficient functioning. Also, it was thought that more attention should be paid to improving the functioning of the state regulation mechanisms on de-monopolization processes. In April Mr.Yakunin spoke at the company's Board session where different priorities were claimed. He highlighted his devotion to competition development once again as the president.
He noted that now the company already competes at different levels such as international, inter-sectoral, intrasectoral etc. competition. The major problem is that the company is losing this competition. Container flow switched to sea and tracks. Oil bulk turns to river transport, oil pipelines and private operators, while our position in this area is weak. Other high-profitable cargoes also go to operators.
In 2004 the most intensive growth of private cargo cars for the last ten years was registered, it amounted to 30 thousand units. The park of private rolling stock already reached 262,3 thousand cars that transport one third of the total cargo volume and this figure is constantly growing.
"Today private operators meet their clients' demands much better and thus can satisfy them more efficiently. It happens so that while working on one and the same technological basis and infrastructure we lose positions in clients' servicing.
That means we should learn how to service clients and introduce differentiated approach to our activities offering scaled classes of services. We should make our transportation activities technology work to satisfy modern demands. At last the time has come to offer the market integrated transport services and become a sort of "transport integrator" stretching our influence geography over the railway infrastructure boundaries", V.Yakunin said.
"No" to Total Separation
A very important issue for normative-and-legislative base today is the problem of total separation between transportation and infrastructure businesses by OAO RZD. In this respect V.Yakunin expressed his position directly, "It is quite clear today that to provide financial stability the company must participate in transportation business. Moreover this transportation should be of high-quality, safe and effective sort. In my opinion, transportation market development doesn't imply that OAO RZD should leave the market soon, stop its park upgrading and break contracts with highly profitable consignors. No, the tendency here should take another route i.e. as the share of independent carriers grows in the market the competition conditions should be leveled by either equal distribution of high- and low-profit cargoes, or their unification".
The Programme of the structural reform envisages keeping 50% of rolling stock in the hands of OAO RZD. V.Yakunin states that these figures should remain unchanged in the long-term perspective. "Anyway I strongly believe we should approach the opportunity to separate infrastructure and transportation very carefully", he says.
At the same time he stated OAO RZD will do its best to allow private carriers and operators non-discriminatory access to infrastructure. "Guaranteed providing of non-discriminatory competition conditions to all cargo transportation market players is one of the key issues of the reform. I'd like to remind you that the basic idea envisages the situation when all the companies, both our affiliates and independent private ones, could have equal rights and functions and could not take advantages that are beyond other market participants opportunities", he commented.
Tariffs and Financial Transparency
Price is known to be a primary market category. In this respect Mr.Yakunin considers the de-regulation of railway transportation tariffs in competitive segments a crucial issue. "We are wasting much time due to our inability to follow really flexible and efficient tariff policy to take advantage of car component and react to the changes in the market", the president said.
The Federal Tariff Service of Russia resists the transfer to free tariffs accusing OAO RZD of non-transparent accounting for separate types of activities. The RF Ministry of Economic Development and Trade also shares this idea and states that tariffs de-regulation for this segment is possible only under the condition of separating all the company's transportation expenditures into an independent balance, including car repair and maintenance costs, as well as their empty-running. At the same time, the above-mentioned expenditures should be excluded from regulated tariff segment.
V.Yakunin agrees that these arguments are economically grounded. In his words, that is the reason why the company is working in two directions. Firstly, the corporation's financial and economic system is being restructured. Last year the Government Bill on accounting for separate types of activities performed by OAO RZD was approved. Expenditures separation was also implemented, and in 2005 profit separation for basic components of cargo and passenger transportation is carried on (car, infrastructure, locomotive components for cargo transportation; passenger and railway station components for passenger complex).
It should be objectively confessed that the creation of a unified system of accounting for such a great complex as OAO RZD is an extraordinarily complicated task. In practice components different from the theoretical point of view function as a whole industrial body. But OAO RZD is ready to find solutions.
Moreover, the president shares the opinion that this problem can be solved in a more efficient and easy way by organizational separation of a given business of OAO RZD either into a branch possessing its own property and keeping its own balance, or an affiliate. Plans for separation of oil bulk transportation affiliate are developed today, Mr.Yakunin reported. "I think it is worthwhile now to consider the same way of development for other competitive types of transportation", he noted.
One more crucial issue nowadays is foreign and domestic railway tariffs unification. It often happens that transportation cost to the domestic ports is half the cost of transportation to border cross posts for further delivery to the ports of foreign countries.
That was the reason of cargo flows re-direction from border stations towards the ports of Russia that resulted in OAO RZD profit drop. Starting from 2005 the state regulation bodies launched a staged process of tariffs leveling. It is to be completed in three-four years. V.Yakunin sees this course as quite adequate to the current economic situation, considering the fact it goes hand in hand with the demands for Russia's joining the WTO.
International Transport-Economic Integration
One of the targets of the OAO RZD Strategic Programme is a further integration of Russian railways into the Euro-Asian transport system. No doubts this issue will be dealt with in accordance with the previous course. However, Mr.Yakunin claimed earlier he worries about certain aspects in this respect.
First of all, in his words, it concerns the vividly expressed tendency for growing competition on behalf of the CIS and Baltic countries, as well as on behalf of Korean and Chinese railways. Attempts to re-direct international cargo flows from the territory of Russia to alternative routes are constantly made. In particular, such projects as TRASEKA, TransChinese and TransKazakhstan routes have been launched.
V.Yakunin believes that, on the one hand, the company has much to do to strengthen its competition, as it is inadmissible and wrong to refer to initially given advantages of Russia's specific geographical location. That is to say, this potential should be implemented into practice to acquire benefits. "It is urgently needed to provide competitive service, namely that of offering "through" tariffs, door-to-door cargo delivery under conditions of safety and fulfillment of terms obligations in order to conquer the international transportation market", he stated.
At the same time, the president focuses on another issue which is the great opportunities of international cooperation within passenger and cargo transportation sector. "We see it worthwhile to hold negotiations with Chinese cargo owners and carriers offering them a chance to transport their cargo via the Russian routes and emphasizing the economic profitability of cooperation with OAO RZD. One of the steps to attract Chinese cargo to Russian railways can become the establishment of a joint operator company for the route Asia-Europe", Mr.Yakunin said.
Among certain projects for international cooperation development the following ones can be named: launching common logistic centers and other corporate models of cooperation with Deutche Bahn; the project of railway communication reconstruction between Russia and Georgia via Abkhazia; Russian Far East - Slavkov (Poland) route launch; the formation of cargo flows along the International Transport Corridor North - South etc.
The major directions in which OAO RZD plans to develop its cooperation with the EU are traditional. They are as follows: steps on unifying transport legislation; simplifying border cross posts and customs procedures; creating a unified informational space; establishing joint-stock companies for carriers etc. Speaking of clear-cut plans, the priority ones are as follows: building up a cargo-passenger motor track-railway-ferry complex in Ust-Luga, Baltyisk - ports of Germany.
Also there is a four-lateral project on cargo and passenger transportation volumes increase within the International Transport Corridor № 2, which envisages steps to overcome technical, technological and organization problems. Railways of Germany, Poland, Belarus and Russia actively participate in this project.
At present the work on high-speed line Saint-Petersburg - Helsinki is being carried on.
In the North-West region the programme of electronic document turnover "TEDIM" directed at significant optimization of cargo transportation is being implemented.
Heavy funds are invested into Kaliningrad transport junction and project "2К" development in order to increase transportation volumes and bring the object's infrastructure to the European norms and standards.
In general, Mr.Yakunin points out that the company plans to stretch its marketing activities at the international transport markets, take greater part in international transport organizations, react to market offers on joint companies establishment or launching joint bilateral or trilateral projects in a more efficient way, in order to promote a further OAO RZD integration into the Euro-Asian transport system.
Summing Up
Thus, ОАО RZD opens a new page in its history. When Vladimir Yakunin's appointment was announced, our magazine held a poll for the transport market participants. Our request was to express their expectations concerning the new president's future activities.
On the whole, representatives of the transport business community said they count on the enhancing of the market approach as well as new quality of services and more efficient economic model based on principles of free enterprise.
At present the programme declared by Vladimir Yakunin makes us believe these hopes and expectations will come true.
Andrey Guryev
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[DETAIL_TEXT] => In June 2005 Vladimir Yakunin,who previously acted as the company's senior vice-president, was appointed OAO RZD president. What alterations in strategy and tactic will the corporation undergo? Some of them were demonstrated by the first programme reports and early decisions made by the new head of the company.
Don't make it worse
Gennady Fadeyev's work undoubtedly constitutes a whole epoch in the history of Russian railway transport: he acted as OAO RZD previous president, having been appointed the RF Minister of Means of Communications twice before. It is worth noting that it was him who had to start the reforms, although he had seriously opposed the privatization of the sector till 2002.
We can't but admit he couldn't have left such a significant trace in history and fulfilled his mission, if it hadn't been his great personal qualities, such as state-wide outlook, ability to respond to modern challenges, love of common sense and the highest level of responsibility for transport evolvement and the country's prosperity. His greatest contribution to Russia's development envisages highly-skilled implementation of the first step of transfer from the administratively controlled to the free market economic model within the transitional period of the Russian railway transport history.
This could have been done only by such a person as Mr.Fadeyev: a railway professional, brilliant at his work and an authority both inside the sector and as seen by state structures representatives. It was not surprising to hear one deputy saying, as he was discussing the future of the reform in terms of its new legislative base in the State Duma in 2002-2003, "Mr. Fadeyev, you are "for" the changes in question and it does matter to us. But if it were not you, I suppose, the fate of these projects would be totally different."
While the reform was unfolding, G. Fadeyev's credo always was a total approval of evolutionary approach and keeping a balance between the state, the customer and the company's interests.However, the most remarkable slogan of his that stuck in everybody's mind was "Don't make it worse". While breaking down old and worn out economic models, it was surely a quite efficient and helpful guideline.
However, after a year in the market, it was clear to everybody that OAO RZD should go further, as creating a new monopolist creation could not be seen as a key task of the reform. G. Fadeyev quite objectively perceived this necessity for further movement as a need for splitting his newly born "child" into several parts. On the one hand, the head of the company stood for further restructuring in OAO RZD. On the other hand, he didn't hide his real attitude, for example, to the discussion of the perspectives for infrastructure and transportation businesses separation. He noted, "Don't cherish these illusions - we'll never have such conditions. But if we separate them anyway and ruin the company, quite a few in the West will applaud us: ".
As mentioned before, it is hard to make a corporation work intensively to create favourable conditions for competitors and de-monopolize the company itself. It was even harder to imagine Mr. Fadeyev do it, considering his experience.
Epoch change
Vladimir Yakunin's taking the post was not regarded as unexpected news by the transport community. Having acted as a senior deputy of the RF transport minister since February 2002, he controlled the way of the railway transport reform unfolding. He noted, " My duty was to protect the state interests".
At the same time it was quite clear that Mr.Yakunin shared the idea of taking a more dynamic course towards market changes. Thus, at the session of the company's Board in April 2005, he expressed his devotion to the course of competition to reach a new level of railway services, stating in particular, "Let's analyze the claims we have to deal: this is a chance to see how well-grounded they are and in what sense exactly we should work harder to find urgent solutions. We should decide which claims should be objectively addressed to the State Duma, the Government, independent market players themselves and us. We should find allies and push reforms forward making officials do their work".
In general, the transport community sees V.Yakunin's appointment as a natural change of generations, and a new impulse to follow the way to a civilized market. In particular, all partners of OAO RZD clearly see the necessity to modernize the company in some basic directions, such as human resources policy, corporate structure, financial-economic transparency, business image etc.
Leadership as a Target
One month after taking up the post, V.Yakunin presented his programme speech to the company's regional colleagues at a selectoral meeting. He openly stated that certain changes of the corporate policy are needed and they will be implemented in the mid- and long-term perspective. Commenting on his vision of the company's perspectives, he confirmed his loyalty to the Strategic development programme until 2010, worked out with his own immediate participation. According to this document, "the mission of the dynamically growing national transport company OAO RZD is to satisfy market transportation demands, to increase efficiency of its activities and quality of services and to contribute to the deep integration into the Euro-Asian transport system".
At the same time V.Yakunin noted that many of the tasks declared are not being fulfilled. That is to say the company hasn't become the dynamically growing, marketable and competitive structure it ought to be.
That is why he formulated the essence and the target of the new stage for the company development. He said in particular, "We must turn into a marketable and competitive company. A company that carries responsibilities for the national railways infrastructure. A company that earns money in the cargo transportation market. A company that reaches prospective competitive markets adjacent to railway transportation". At the same time, he underlined that the present-day targets of the do not aim only to become a leader in the Russian transport sector. He stated, "Our major task is of more global nature and envisages the duty to make our company the best one in the domestic market, considering all the parameters, such as financial stability, development potential and capital viability"
Changes Rates are Poor
The "pulse" of the sector is now the railway transport reform. Mr.Yakunin characterized positively the way the reform is unfolding. "We have all the grounds to state that the Russian railways reform strictly corresponds to the approved legislative documents and is going on quite effectively, without any dramatic failures", - the president said. He also noted that, according to the Programme, by the end of the second stage the following tasks should be fulfilled: cargo transportation competition growth, OAO RZD control structure optimization (including control organization role strengthening for each separate type of activities), transfer to free pricing within competitive sectors, cutting down crossed subsiding for passenger transportation etc.
He believes some problems with planned Government Bills approval will be solved soon. Quite objectively such state of affaires can be explained by the executive power federal bodies reform held in 2004.
Special attention should be paid to the issue of OAO RZD affiliates separation. In 2004 OAO RZD Board considered and approved the concepts of affiliates establishment for all the areas of company's activities. Also, the Board approved the concepts for reforms in nine areas. So far only the first affiliate on railway automatics production "Unified electrotechnical works" JSC ("Elteza") has been created. Moreover, multimodal carrier "Russkaya Troyka" JSC has been established, with the Far Eastern Shipping Company participating in the project.
"I have to confess the changes rates achieved by now are not satisfactory to reach the basic targets of the structural reform. Such a state of affaires is a direct result of quite complicated regulations set up by the Board for making decisions on affiliates establishment", Mr.Yakunin stated.
He said that at present a project on simplifying the procedures for affiliates establishment has been developed. Also, some offers to amend other normative documents were initiated. For example, the Government Bill № 57 effective from February 6, 2004 on restrictions in property objects of OAO RZD turnover states that most locomotive and cars depots are limited in turnover, being objects to perform mobilization tasks. That is to say that they can neither be separated, nor sold, nor even used in the most effective schemes for private investment attraction. "We consider it worthwhile to approve our project on simplifying these procedures", V.Yakunin noted.
Discipline and Motivation
In the president's words, one of the most important directions to be developed is the re-organization of corporate control to reach a new level of functioning by both the company's main body and its branch and territorial departments. He offers to improve the scheme of carrying responsibilities and motivation mechanisms in the company.
At present, the company is working on a fundamentally new system of quality control called "Stages of efficiency". The essence of the system is as follows: each industrial and administrative operation should be performed not only by a respective manager responsible for the process itself, but any given operation should undergo a strict control procedure that would exclude any defect. "The system created for quality control should become an organic element of the whole company control in general. We should integrate quality data into all the controlling processes, starting from the policy of working place organization to making decisions by the company's top-management.", V.Yakunin said. Moreover, the Disciplinary Commission to supervise the performance of functionary and corporate-ethic norms by the employees has already been created.
Together with this, special attention will be paid to such important components of quality control as stimulation and motivation. In this respect, a set of measures for radical upgrading of already existing relations will be implemented.
One side of this process is introducing self-financing work in every area where relations of this sort are possible and expedient. In V.Yakunin's opinion, the company should function in such a way that every group would feel certain dependence of their well-being on demonstrated industrial results.
Also, human resources mechanisms should be seriously re-organized. The major motivation role in this sector should play such things as enhancing the social and economic status of a "railway man", stimulating qualitative labour results and encouraging initiative, making social programmes highly transparent, developing corporate ethic laws etc.
The head of the company pays significant attention to corporate policy for young people. He believes grant programme should be launched when school-leavers and students could get OAO RZD subsidies to study at railway or other universities.
Competitionis to be Won
It is quite clear that OAO RZD partners and clients are first of all interested in the new president's attitude to the company's relations with other transportation market players. Last year most frequently discussed issue was OAO RZD position regarding the emerging competition in the sector. Then the wide-spread ideas in the company were the competition is not the unique target of the reform, but only one of the ways to efficient functioning. Also, it was thought that more attention should be paid to improving the functioning of the state regulation mechanisms on de-monopolization processes. In April Mr.Yakunin spoke at the company's Board session where different priorities were claimed. He highlighted his devotion to competition development once again as the president.
He noted that now the company already competes at different levels such as international, inter-sectoral, intrasectoral etc. competition. The major problem is that the company is losing this competition. Container flow switched to sea and tracks. Oil bulk turns to river transport, oil pipelines and private operators, while our position in this area is weak. Other high-profitable cargoes also go to operators.
In 2004 the most intensive growth of private cargo cars for the last ten years was registered, it amounted to 30 thousand units. The park of private rolling stock already reached 262,3 thousand cars that transport one third of the total cargo volume and this figure is constantly growing.
"Today private operators meet their clients' demands much better and thus can satisfy them more efficiently. It happens so that while working on one and the same technological basis and infrastructure we lose positions in clients' servicing.
That means we should learn how to service clients and introduce differentiated approach to our activities offering scaled classes of services. We should make our transportation activities technology work to satisfy modern demands. At last the time has come to offer the market integrated transport services and become a sort of "transport integrator" stretching our influence geography over the railway infrastructure boundaries", V.Yakunin said.
"No" to Total Separation
A very important issue for normative-and-legislative base today is the problem of total separation between transportation and infrastructure businesses by OAO RZD. In this respect V.Yakunin expressed his position directly, "It is quite clear today that to provide financial stability the company must participate in transportation business. Moreover this transportation should be of high-quality, safe and effective sort. In my opinion, transportation market development doesn't imply that OAO RZD should leave the market soon, stop its park upgrading and break contracts with highly profitable consignors. No, the tendency here should take another route i.e. as the share of independent carriers grows in the market the competition conditions should be leveled by either equal distribution of high- and low-profit cargoes, or their unification".
The Programme of the structural reform envisages keeping 50% of rolling stock in the hands of OAO RZD. V.Yakunin states that these figures should remain unchanged in the long-term perspective. "Anyway I strongly believe we should approach the opportunity to separate infrastructure and transportation very carefully", he says.
At the same time he stated OAO RZD will do its best to allow private carriers and operators non-discriminatory access to infrastructure. "Guaranteed providing of non-discriminatory competition conditions to all cargo transportation market players is one of the key issues of the reform. I'd like to remind you that the basic idea envisages the situation when all the companies, both our affiliates and independent private ones, could have equal rights and functions and could not take advantages that are beyond other market participants opportunities", he commented.
Tariffs and Financial Transparency
Price is known to be a primary market category. In this respect Mr.Yakunin considers the de-regulation of railway transportation tariffs in competitive segments a crucial issue. "We are wasting much time due to our inability to follow really flexible and efficient tariff policy to take advantage of car component and react to the changes in the market", the president said.
The Federal Tariff Service of Russia resists the transfer to free tariffs accusing OAO RZD of non-transparent accounting for separate types of activities. The RF Ministry of Economic Development and Trade also shares this idea and states that tariffs de-regulation for this segment is possible only under the condition of separating all the company's transportation expenditures into an independent balance, including car repair and maintenance costs, as well as their empty-running. At the same time, the above-mentioned expenditures should be excluded from regulated tariff segment.
V.Yakunin agrees that these arguments are economically grounded. In his words, that is the reason why the company is working in two directions. Firstly, the corporation's financial and economic system is being restructured. Last year the Government Bill on accounting for separate types of activities performed by OAO RZD was approved. Expenditures separation was also implemented, and in 2005 profit separation for basic components of cargo and passenger transportation is carried on (car, infrastructure, locomotive components for cargo transportation; passenger and railway station components for passenger complex).
It should be objectively confessed that the creation of a unified system of accounting for such a great complex as OAO RZD is an extraordinarily complicated task. In practice components different from the theoretical point of view function as a whole industrial body. But OAO RZD is ready to find solutions.
Moreover, the president shares the opinion that this problem can be solved in a more efficient and easy way by organizational separation of a given business of OAO RZD either into a branch possessing its own property and keeping its own balance, or an affiliate. Plans for separation of oil bulk transportation affiliate are developed today, Mr.Yakunin reported. "I think it is worthwhile now to consider the same way of development for other competitive types of transportation", he noted.
One more crucial issue nowadays is foreign and domestic railway tariffs unification. It often happens that transportation cost to the domestic ports is half the cost of transportation to border cross posts for further delivery to the ports of foreign countries.
That was the reason of cargo flows re-direction from border stations towards the ports of Russia that resulted in OAO RZD profit drop. Starting from 2005 the state regulation bodies launched a staged process of tariffs leveling. It is to be completed in three-four years. V.Yakunin sees this course as quite adequate to the current economic situation, considering the fact it goes hand in hand with the demands for Russia's joining the WTO.
International Transport-Economic Integration
One of the targets of the OAO RZD Strategic Programme is a further integration of Russian railways into the Euro-Asian transport system. No doubts this issue will be dealt with in accordance with the previous course. However, Mr.Yakunin claimed earlier he worries about certain aspects in this respect.
First of all, in his words, it concerns the vividly expressed tendency for growing competition on behalf of the CIS and Baltic countries, as well as on behalf of Korean and Chinese railways. Attempts to re-direct international cargo flows from the territory of Russia to alternative routes are constantly made. In particular, such projects as TRASEKA, TransChinese and TransKazakhstan routes have been launched.
V.Yakunin believes that, on the one hand, the company has much to do to strengthen its competition, as it is inadmissible and wrong to refer to initially given advantages of Russia's specific geographical location. That is to say, this potential should be implemented into practice to acquire benefits. "It is urgently needed to provide competitive service, namely that of offering "through" tariffs, door-to-door cargo delivery under conditions of safety and fulfillment of terms obligations in order to conquer the international transportation market", he stated.
At the same time, the president focuses on another issue which is the great opportunities of international cooperation within passenger and cargo transportation sector. "We see it worthwhile to hold negotiations with Chinese cargo owners and carriers offering them a chance to transport their cargo via the Russian routes and emphasizing the economic profitability of cooperation with OAO RZD. One of the steps to attract Chinese cargo to Russian railways can become the establishment of a joint operator company for the route Asia-Europe", Mr.Yakunin said.
Among certain projects for international cooperation development the following ones can be named: launching common logistic centers and other corporate models of cooperation with Deutche Bahn; the project of railway communication reconstruction between Russia and Georgia via Abkhazia; Russian Far East - Slavkov (Poland) route launch; the formation of cargo flows along the International Transport Corridor North - South etc.
The major directions in which OAO RZD plans to develop its cooperation with the EU are traditional. They are as follows: steps on unifying transport legislation; simplifying border cross posts and customs procedures; creating a unified informational space; establishing joint-stock companies for carriers etc. Speaking of clear-cut plans, the priority ones are as follows: building up a cargo-passenger motor track-railway-ferry complex in Ust-Luga, Baltyisk - ports of Germany.
Also there is a four-lateral project on cargo and passenger transportation volumes increase within the International Transport Corridor № 2, which envisages steps to overcome technical, technological and organization problems. Railways of Germany, Poland, Belarus and Russia actively participate in this project.
At present the work on high-speed line Saint-Petersburg - Helsinki is being carried on.
In the North-West region the programme of electronic document turnover "TEDIM" directed at significant optimization of cargo transportation is being implemented.
Heavy funds are invested into Kaliningrad transport junction and project "2К" development in order to increase transportation volumes and bring the object's infrastructure to the European norms and standards.
In general, Mr.Yakunin points out that the company plans to stretch its marketing activities at the international transport markets, take greater part in international transport organizations, react to market offers on joint companies establishment or launching joint bilateral or trilateral projects in a more efficient way, in order to promote a further OAO RZD integration into the Euro-Asian transport system.
Summing Up
Thus, ОАО RZD opens a new page in its history. When Vladimir Yakunin's appointment was announced, our magazine held a poll for the transport market participants. Our request was to express their expectations concerning the new president's future activities.
On the whole, representatives of the transport business community said they count on the enhancing of the market approach as well as new quality of services and more efficient economic model based on principles of free enterprise.
At present the programme declared by Vladimir Yakunin makes us believe these hopes and expectations will come true.
Andrey Guryev
[~DETAIL_TEXT] => In June 2005 Vladimir Yakunin,who previously acted as the company's senior vice-president, was appointed OAO RZD president. What alterations in strategy and tactic will the corporation undergo? Some of them were demonstrated by the first programme reports and early decisions made by the new head of the company.
Don't make it worse
Gennady Fadeyev's work undoubtedly constitutes a whole epoch in the history of Russian railway transport: he acted as OAO RZD previous president, having been appointed the RF Minister of Means of Communications twice before. It is worth noting that it was him who had to start the reforms, although he had seriously opposed the privatization of the sector till 2002.
We can't but admit he couldn't have left such a significant trace in history and fulfilled his mission, if it hadn't been his great personal qualities, such as state-wide outlook, ability to respond to modern challenges, love of common sense and the highest level of responsibility for transport evolvement and the country's prosperity. His greatest contribution to Russia's development envisages highly-skilled implementation of the first step of transfer from the administratively controlled to the free market economic model within the transitional period of the Russian railway transport history.
This could have been done only by such a person as Mr.Fadeyev: a railway professional, brilliant at his work and an authority both inside the sector and as seen by state structures representatives. It was not surprising to hear one deputy saying, as he was discussing the future of the reform in terms of its new legislative base in the State Duma in 2002-2003, "Mr. Fadeyev, you are "for" the changes in question and it does matter to us. But if it were not you, I suppose, the fate of these projects would be totally different."
While the reform was unfolding, G. Fadeyev's credo always was a total approval of evolutionary approach and keeping a balance between the state, the customer and the company's interests.However, the most remarkable slogan of his that stuck in everybody's mind was "Don't make it worse". While breaking down old and worn out economic models, it was surely a quite efficient and helpful guideline.
However, after a year in the market, it was clear to everybody that OAO RZD should go further, as creating a new monopolist creation could not be seen as a key task of the reform. G. Fadeyev quite objectively perceived this necessity for further movement as a need for splitting his newly born "child" into several parts. On the one hand, the head of the company stood for further restructuring in OAO RZD. On the other hand, he didn't hide his real attitude, for example, to the discussion of the perspectives for infrastructure and transportation businesses separation. He noted, "Don't cherish these illusions - we'll never have such conditions. But if we separate them anyway and ruin the company, quite a few in the West will applaud us: ".
As mentioned before, it is hard to make a corporation work intensively to create favourable conditions for competitors and de-monopolize the company itself. It was even harder to imagine Mr. Fadeyev do it, considering his experience.
Epoch change
Vladimir Yakunin's taking the post was not regarded as unexpected news by the transport community. Having acted as a senior deputy of the RF transport minister since February 2002, he controlled the way of the railway transport reform unfolding. He noted, " My duty was to protect the state interests".
At the same time it was quite clear that Mr.Yakunin shared the idea of taking a more dynamic course towards market changes. Thus, at the session of the company's Board in April 2005, he expressed his devotion to the course of competition to reach a new level of railway services, stating in particular, "Let's analyze the claims we have to deal: this is a chance to see how well-grounded they are and in what sense exactly we should work harder to find urgent solutions. We should decide which claims should be objectively addressed to the State Duma, the Government, independent market players themselves and us. We should find allies and push reforms forward making officials do their work".
In general, the transport community sees V.Yakunin's appointment as a natural change of generations, and a new impulse to follow the way to a civilized market. In particular, all partners of OAO RZD clearly see the necessity to modernize the company in some basic directions, such as human resources policy, corporate structure, financial-economic transparency, business image etc.
Leadership as a Target
One month after taking up the post, V.Yakunin presented his programme speech to the company's regional colleagues at a selectoral meeting. He openly stated that certain changes of the corporate policy are needed and they will be implemented in the mid- and long-term perspective. Commenting on his vision of the company's perspectives, he confirmed his loyalty to the Strategic development programme until 2010, worked out with his own immediate participation. According to this document, "the mission of the dynamically growing national transport company OAO RZD is to satisfy market transportation demands, to increase efficiency of its activities and quality of services and to contribute to the deep integration into the Euro-Asian transport system".
At the same time V.Yakunin noted that many of the tasks declared are not being fulfilled. That is to say the company hasn't become the dynamically growing, marketable and competitive structure it ought to be.
That is why he formulated the essence and the target of the new stage for the company development. He said in particular, "We must turn into a marketable and competitive company. A company that carries responsibilities for the national railways infrastructure. A company that earns money in the cargo transportation market. A company that reaches prospective competitive markets adjacent to railway transportation". At the same time, he underlined that the present-day targets of the do not aim only to become a leader in the Russian transport sector. He stated, "Our major task is of more global nature and envisages the duty to make our company the best one in the domestic market, considering all the parameters, such as financial stability, development potential and capital viability"
Changes Rates are Poor
The "pulse" of the sector is now the railway transport reform. Mr.Yakunin characterized positively the way the reform is unfolding. "We have all the grounds to state that the Russian railways reform strictly corresponds to the approved legislative documents and is going on quite effectively, without any dramatic failures", - the president said. He also noted that, according to the Programme, by the end of the second stage the following tasks should be fulfilled: cargo transportation competition growth, OAO RZD control structure optimization (including control organization role strengthening for each separate type of activities), transfer to free pricing within competitive sectors, cutting down crossed subsiding for passenger transportation etc.
He believes some problems with planned Government Bills approval will be solved soon. Quite objectively such state of affaires can be explained by the executive power federal bodies reform held in 2004.
Special attention should be paid to the issue of OAO RZD affiliates separation. In 2004 OAO RZD Board considered and approved the concepts of affiliates establishment for all the areas of company's activities. Also, the Board approved the concepts for reforms in nine areas. So far only the first affiliate on railway automatics production "Unified electrotechnical works" JSC ("Elteza") has been created. Moreover, multimodal carrier "Russkaya Troyka" JSC has been established, with the Far Eastern Shipping Company participating in the project.
"I have to confess the changes rates achieved by now are not satisfactory to reach the basic targets of the structural reform. Such a state of affaires is a direct result of quite complicated regulations set up by the Board for making decisions on affiliates establishment", Mr.Yakunin stated.
He said that at present a project on simplifying the procedures for affiliates establishment has been developed. Also, some offers to amend other normative documents were initiated. For example, the Government Bill № 57 effective from February 6, 2004 on restrictions in property objects of OAO RZD turnover states that most locomotive and cars depots are limited in turnover, being objects to perform mobilization tasks. That is to say that they can neither be separated, nor sold, nor even used in the most effective schemes for private investment attraction. "We consider it worthwhile to approve our project on simplifying these procedures", V.Yakunin noted.
Discipline and Motivation
In the president's words, one of the most important directions to be developed is the re-organization of corporate control to reach a new level of functioning by both the company's main body and its branch and territorial departments. He offers to improve the scheme of carrying responsibilities and motivation mechanisms in the company.
At present, the company is working on a fundamentally new system of quality control called "Stages of efficiency". The essence of the system is as follows: each industrial and administrative operation should be performed not only by a respective manager responsible for the process itself, but any given operation should undergo a strict control procedure that would exclude any defect. "The system created for quality control should become an organic element of the whole company control in general. We should integrate quality data into all the controlling processes, starting from the policy of working place organization to making decisions by the company's top-management.", V.Yakunin said. Moreover, the Disciplinary Commission to supervise the performance of functionary and corporate-ethic norms by the employees has already been created.
Together with this, special attention will be paid to such important components of quality control as stimulation and motivation. In this respect, a set of measures for radical upgrading of already existing relations will be implemented.
One side of this process is introducing self-financing work in every area where relations of this sort are possible and expedient. In V.Yakunin's opinion, the company should function in such a way that every group would feel certain dependence of their well-being on demonstrated industrial results.
Also, human resources mechanisms should be seriously re-organized. The major motivation role in this sector should play such things as enhancing the social and economic status of a "railway man", stimulating qualitative labour results and encouraging initiative, making social programmes highly transparent, developing corporate ethic laws etc.
The head of the company pays significant attention to corporate policy for young people. He believes grant programme should be launched when school-leavers and students could get OAO RZD subsidies to study at railway or other universities.
Competitionis to be Won
It is quite clear that OAO RZD partners and clients are first of all interested in the new president's attitude to the company's relations with other transportation market players. Last year most frequently discussed issue was OAO RZD position regarding the emerging competition in the sector. Then the wide-spread ideas in the company were the competition is not the unique target of the reform, but only one of the ways to efficient functioning. Also, it was thought that more attention should be paid to improving the functioning of the state regulation mechanisms on de-monopolization processes. In April Mr.Yakunin spoke at the company's Board session where different priorities were claimed. He highlighted his devotion to competition development once again as the president.
He noted that now the company already competes at different levels such as international, inter-sectoral, intrasectoral etc. competition. The major problem is that the company is losing this competition. Container flow switched to sea and tracks. Oil bulk turns to river transport, oil pipelines and private operators, while our position in this area is weak. Other high-profitable cargoes also go to operators.
In 2004 the most intensive growth of private cargo cars for the last ten years was registered, it amounted to 30 thousand units. The park of private rolling stock already reached 262,3 thousand cars that transport one third of the total cargo volume and this figure is constantly growing.
"Today private operators meet their clients' demands much better and thus can satisfy them more efficiently. It happens so that while working on one and the same technological basis and infrastructure we lose positions in clients' servicing.
That means we should learn how to service clients and introduce differentiated approach to our activities offering scaled classes of services. We should make our transportation activities technology work to satisfy modern demands. At last the time has come to offer the market integrated transport services and become a sort of "transport integrator" stretching our influence geography over the railway infrastructure boundaries", V.Yakunin said.
"No" to Total Separation
A very important issue for normative-and-legislative base today is the problem of total separation between transportation and infrastructure businesses by OAO RZD. In this respect V.Yakunin expressed his position directly, "It is quite clear today that to provide financial stability the company must participate in transportation business. Moreover this transportation should be of high-quality, safe and effective sort. In my opinion, transportation market development doesn't imply that OAO RZD should leave the market soon, stop its park upgrading and break contracts with highly profitable consignors. No, the tendency here should take another route i.e. as the share of independent carriers grows in the market the competition conditions should be leveled by either equal distribution of high- and low-profit cargoes, or their unification".
The Programme of the structural reform envisages keeping 50% of rolling stock in the hands of OAO RZD. V.Yakunin states that these figures should remain unchanged in the long-term perspective. "Anyway I strongly believe we should approach the opportunity to separate infrastructure and transportation very carefully", he says.
At the same time he stated OAO RZD will do its best to allow private carriers and operators non-discriminatory access to infrastructure. "Guaranteed providing of non-discriminatory competition conditions to all cargo transportation market players is one of the key issues of the reform. I'd like to remind you that the basic idea envisages the situation when all the companies, both our affiliates and independent private ones, could have equal rights and functions and could not take advantages that are beyond other market participants opportunities", he commented.
Tariffs and Financial Transparency
Price is known to be a primary market category. In this respect Mr.Yakunin considers the de-regulation of railway transportation tariffs in competitive segments a crucial issue. "We are wasting much time due to our inability to follow really flexible and efficient tariff policy to take advantage of car component and react to the changes in the market", the president said.
The Federal Tariff Service of Russia resists the transfer to free tariffs accusing OAO RZD of non-transparent accounting for separate types of activities. The RF Ministry of Economic Development and Trade also shares this idea and states that tariffs de-regulation for this segment is possible only under the condition of separating all the company's transportation expenditures into an independent balance, including car repair and maintenance costs, as well as their empty-running. At the same time, the above-mentioned expenditures should be excluded from regulated tariff segment.
V.Yakunin agrees that these arguments are economically grounded. In his words, that is the reason why the company is working in two directions. Firstly, the corporation's financial and economic system is being restructured. Last year the Government Bill on accounting for separate types of activities performed by OAO RZD was approved. Expenditures separation was also implemented, and in 2005 profit separation for basic components of cargo and passenger transportation is carried on (car, infrastructure, locomotive components for cargo transportation; passenger and railway station components for passenger complex).
It should be objectively confessed that the creation of a unified system of accounting for such a great complex as OAO RZD is an extraordinarily complicated task. In practice components different from the theoretical point of view function as a whole industrial body. But OAO RZD is ready to find solutions.
Moreover, the president shares the opinion that this problem can be solved in a more efficient and easy way by organizational separation of a given business of OAO RZD either into a branch possessing its own property and keeping its own balance, or an affiliate. Plans for separation of oil bulk transportation affiliate are developed today, Mr.Yakunin reported. "I think it is worthwhile now to consider the same way of development for other competitive types of transportation", he noted.
One more crucial issue nowadays is foreign and domestic railway tariffs unification. It often happens that transportation cost to the domestic ports is half the cost of transportation to border cross posts for further delivery to the ports of foreign countries.
That was the reason of cargo flows re-direction from border stations towards the ports of Russia that resulted in OAO RZD profit drop. Starting from 2005 the state regulation bodies launched a staged process of tariffs leveling. It is to be completed in three-four years. V.Yakunin sees this course as quite adequate to the current economic situation, considering the fact it goes hand in hand with the demands for Russia's joining the WTO.
International Transport-Economic Integration
One of the targets of the OAO RZD Strategic Programme is a further integration of Russian railways into the Euro-Asian transport system. No doubts this issue will be dealt with in accordance with the previous course. However, Mr.Yakunin claimed earlier he worries about certain aspects in this respect.
First of all, in his words, it concerns the vividly expressed tendency for growing competition on behalf of the CIS and Baltic countries, as well as on behalf of Korean and Chinese railways. Attempts to re-direct international cargo flows from the territory of Russia to alternative routes are constantly made. In particular, such projects as TRASEKA, TransChinese and TransKazakhstan routes have been launched.
V.Yakunin believes that, on the one hand, the company has much to do to strengthen its competition, as it is inadmissible and wrong to refer to initially given advantages of Russia's specific geographical location. That is to say, this potential should be implemented into practice to acquire benefits. "It is urgently needed to provide competitive service, namely that of offering "through" tariffs, door-to-door cargo delivery under conditions of safety and fulfillment of terms obligations in order to conquer the international transportation market", he stated.
At the same time, the president focuses on another issue which is the great opportunities of international cooperation within passenger and cargo transportation sector. "We see it worthwhile to hold negotiations with Chinese cargo owners and carriers offering them a chance to transport their cargo via the Russian routes and emphasizing the economic profitability of cooperation with OAO RZD. One of the steps to attract Chinese cargo to Russian railways can become the establishment of a joint operator company for the route Asia-Europe", Mr.Yakunin said.
Among certain projects for international cooperation development the following ones can be named: launching common logistic centers and other corporate models of cooperation with Deutche Bahn; the project of railway communication reconstruction between Russia and Georgia via Abkhazia; Russian Far East - Slavkov (Poland) route launch; the formation of cargo flows along the International Transport Corridor North - South etc.
The major directions in which OAO RZD plans to develop its cooperation with the EU are traditional. They are as follows: steps on unifying transport legislation; simplifying border cross posts and customs procedures; creating a unified informational space; establishing joint-stock companies for carriers etc. Speaking of clear-cut plans, the priority ones are as follows: building up a cargo-passenger motor track-railway-ferry complex in Ust-Luga, Baltyisk - ports of Germany.
Also there is a four-lateral project on cargo and passenger transportation volumes increase within the International Transport Corridor № 2, which envisages steps to overcome technical, technological and organization problems. Railways of Germany, Poland, Belarus and Russia actively participate in this project.
At present the work on high-speed line Saint-Petersburg - Helsinki is being carried on.
In the North-West region the programme of electronic document turnover "TEDIM" directed at significant optimization of cargo transportation is being implemented.
Heavy funds are invested into Kaliningrad transport junction and project "2К" development in order to increase transportation volumes and bring the object's infrastructure to the European norms and standards.
In general, Mr.Yakunin points out that the company plans to stretch its marketing activities at the international transport markets, take greater part in international transport organizations, react to market offers on joint companies establishment or launching joint bilateral or trilateral projects in a more efficient way, in order to promote a further OAO RZD integration into the Euro-Asian transport system.
Summing Up
Thus, ОАО RZD opens a new page in its history. When Vladimir Yakunin's appointment was announced, our magazine held a poll for the transport market participants. Our request was to express their expectations concerning the new president's future activities.
On the whole, representatives of the transport business community said they count on the enhancing of the market approach as well as new quality of services and more efficient economic model based on principles of free enterprise.
At present the programme declared by Vladimir Yakunin makes us believe these hopes and expectations will come true.
Andrey Guryev
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[DETAIL_TEXT] => OAO RZD Planning Investments into Infrastructure
OAO RZD is proposing to invest RUR 303 billion (approximately USD 10.54 billion) into infrastructure development, Vladimir Yakunin, the company's president, said at a press conference in St.-Petersburg. Of the total, some RUR 200 billion (approximately USD 6.96 billion) will be invested into the northwest direction.
The company means to approve the master plan of northwest railway infrastructure development until 2010 in August 2005. Specifically, the plan stipulates for projects aimed at establishing high-speed communication between Moscow andSt.-Petersburg and between St.-Petersburg and Helsinki. Such projects are to be implemented in several stages: railroad communication at a speed of up to 250 kilometers per hour will be made available through modernization of the existing infrastructure, but as for faster trains, the plan is yet to be finalized.
New Crane of Sverdlovskaya Railway
A new crane for handling FEU containers started operating at the Tyumen Department of the Sverdlovskaya Railway.
Due to putting the new loading-unloading equipment into operation, the volume of FEU containers handling has increased by 25%.
In H1 of 2005, the Sverdlovskaya Railway transported 760 thousand tons of containerized cargo, 64 thousand tons up year-on-year.
The enterprises of the railway loaded more than 500 containers with the average weight of 8 tons each daily. So, in H1 of 2005, almost 100 thousand containers were loaded.
In H1 of 2005, over 70% of cargo was transported in FEU containers.
First Russian Freight Diesel Locomotive Passed Test
The first Russian diesel locomotive 2TE70, able to drive trains weighing more than 6 thousand tons, will increase Russian railways capacity. The diesel locomotive, created by Kolomensky Zavod OJSC, has successfully passed all the stages of pre-test and confirmed all the technical characteristics declared by the company.
The new locomotive has some fundamental technical advantages in comparison with 2TE116 diesel locomotives used in Russia. The freight diesel locomotive 2TE70 with electrical transfer of alternating and continuous current supplies a higher tractive force that enables to increase the mass of trains on the diesel traction lines by 20%-30%. Experts believe putting 2TE70 into operation will increase the railway capacity due to the use of rolling stock with diesel and electric traction without their reforming, which is a fundamental advantage of the new locomotive.
Moreover, the diesel locomotive enables to increase the speed of freight rolling-stock by 10-20 km/h, improve the working conditions of locomotive brigades, reduce expenses due to reduce of fuel and oil expenses and use microprocessor system of control and diagnostics. At the diesel locomotive, highly economical diesel generator 2A-9DG-02 with better ecological characteristics is installed that provides fuel expenses at modern international level.
Vladimir Vlasov, the CEO of Kolomensky Zavod OJSC, believes that freight diesel locomotive will be popular on the market, for it meets the requirements for new diesel locomotives.
Admiralty Shipyard Modernize Production
The Admiralty Shipyard company plans purchasing mechanical lines for producing of flat sections and micropanels to modernize erector-welding production of hull forming sections.
Nowadays, at the enterprise, the first metal processing production - refinement and cutting of sheet products - is being modernized. It will enable the company to reduce the time of vessel building, improve their quality and enhance the shipyard's competitiveness in the shipbuilding market, reports the press-service of the company.
In March, the enterprise started using the robot line for cutting profile rolled metal, purchased at JMG (a German company) in 2004. All the processes on this line are mechanized. A robot, controlled by a special programme, cuts the profile rolled metal with plasma. Experts of the Admiralty Shipyard company develop the controlling programmes. The line is serviced by 3 operators only. The accuracy of details production and their quality have improved.
New Terminal in Ust-Luga
Construction of a new terminal for servicing ro-ro vessels is planned inUst-Luga, as was reported at the conference . Its aim is to attract the freight flow of cars.
Experts believe that about 300 thousand cars imported in Russia are handled by Finnish terminals.
Nowadays, the technical and economical grounds for the project are being prepared. Next year it is planned to build the first line with 40 thousand cars capacity.
Container Freight Transportation to Increase
Beginning July 2005, TransContainer (OAO RZD affiliate specialized in container transportation) is realizing a programme for purchasing additional large-capacity containers. According to it, 3,568 FEU-containers are to be purchased in the second half of 2005.
The 2005 rolling-stock purchasing programme provides for purchasing 2000 fitting platforms, 800 being acquired in the first half of 2005.
At present, TransContainer operates rolling stock park that includes 22.2 thousand fitting platforms for FEU-containers and a container park of 175,100 containers, including 46.3 thousand FEU ones.
Tankers to Be Built in Russia for Dutch Company
The Russian conglomerate Marine Oil and Gas Projects (MNP) is to build tankers for the Dutch company Rensen Shipbuilding. MNP announced on July 20 that a contract worth over 9 million euros has been signed for the construction of six tanker hulls.
MNP Group incorporates five leading Russian ship-building yards: Almaz (St.-Petersburg), Krasnoe Sormovo (Nizhny Novgorod), Nizhnenovgorodsky Teplokhod (Nizhny Novgorod), Volgograd Ship-Building Yard, and III International Astrakhan Ship Building and Repair Yard.
Tankers for the Dutch company will be built at the III International and Nizhnenovgorodsky Teplokhod ship-building yards.
According to MNP, the vessels will transport chemicals and processed oil products through Europe's internal waterways and will meet all international requirements for protecting the sea from pollution. The double-hull tankers are capable of carrying several different types of oil products simultaneously.
P&O Expands Port Operations in Russia
On July 28, P&O ports said it had purchased 25% of Vostochnaya Stevedoring Company from the group of companies Severstaltrans.
P&O initially owned a 25 per cent stake in the container terminal Vostochny International Container Service CJSC.
The total capacity of the four berths, where Vostochnaya Stevedoring Company and Vostochny International Container Service CJSC operate, is estimated at 800,000 to one million TEU when fully equipped.
In 2004, throughput of the four berths totaled 273,000 TEU.
, said Bryan Smith, P&O Ports regional director, East Asia.
PRISCO Will Build Two More Tankers of Aframax Type
Primorsk Shipping Corporation (PRISCO) signed contract with the South Korean Shipyard Hyundai Heavy Industries in London for building two more tankers of Aframax type.
New vessels each of 104,000 tons dwt. with 1C ice class according to DNV (Det Norske Veritas) classification will be delivered in 2008. Now PRISCO operates three tankers of 100,000 tons dwt. The Company is building three more large-tonnage tankers of 100,000 tons dwt., which will be delivered from the Hyundai Heavy Industries in 2005 and used within the frames of Sakhalin-I Project on the Exxon Neftegas Limited Contract terms.
PRISCO Management signed a contract for building two tankers of 104,000 tons dwt. So, in 2008 PRISCO fleet will consist of 10 Aframaxes of 1,100 million tons total dwt. And, taking into consideration joint projects with other shipping companies, dead-weight of PRISCO newbuildings will exceed 1,300 million tons.
Portovy Flot Gained Double Victory
On June 18, the commission of the RF Federal Agency of the Sea and River Transport summed up the results of the tender on the contractor's building and reconstruction of the port infrastructure objects at the sea passenger terminal on the Vasilyevsky island in St.-Petersburg. The winner of the tender is Portovy Flot CJSC. Besides, the company managed to cancel the tender on ice-breaking servicing in the Big port of St.-Petersburg and to extend the contract for one year more.
The tender on the contractor's building and reconstruction of the port infrastructure objects of the sea passenger terminal was announced at the beginning of 2005. There were three subjects of the tender: building and reconstruction of the approaches in the water area of the future terminal, transfer of the engineering services and assembling of the equipment to provide navigation-hydrographic and ecological shipping in the water area of the port. Five companies took part in the tender for the project worth over RUR 160 million The first and the second subjects were won by Portovy Flot company. The audit company Konto won the third subject of the tender.
According to the port controlling body Rosmorport, when selecting the winner, they paid attention to the price offered, as well as the history and the financial state of the company. Portovy Flot CJSC offered the smallest price - RUR 123 million, RUR 20-30 million less than the other companies. The total cost of the three subjects of the tender is RUR 160 million. , said the executive director of Portovy Flot CJSC Alexander Denisov.
Building and reconstruction of the Sea passenger terminal infrastructure are supposed to start this August and continue at least three years.
[~DETAIL_TEXT] => OAO RZD Planning Investments into Infrastructure
OAO RZD is proposing to invest RUR 303 billion (approximately USD 10.54 billion) into infrastructure development, Vladimir Yakunin, the company's president, said at a press conference in St.-Petersburg. Of the total, some RUR 200 billion (approximately USD 6.96 billion) will be invested into the northwest direction.
The company means to approve the master plan of northwest railway infrastructure development until 2010 in August 2005. Specifically, the plan stipulates for projects aimed at establishing high-speed communication between Moscow andSt.-Petersburg and between St.-Petersburg and Helsinki. Such projects are to be implemented in several stages: railroad communication at a speed of up to 250 kilometers per hour will be made available through modernization of the existing infrastructure, but as for faster trains, the plan is yet to be finalized.
New Crane of Sverdlovskaya Railway
A new crane for handling FEU containers started operating at the Tyumen Department of the Sverdlovskaya Railway.
Due to putting the new loading-unloading equipment into operation, the volume of FEU containers handling has increased by 25%.
In H1 of 2005, the Sverdlovskaya Railway transported 760 thousand tons of containerized cargo, 64 thousand tons up year-on-year.
The enterprises of the railway loaded more than 500 containers with the average weight of 8 tons each daily. So, in H1 of 2005, almost 100 thousand containers were loaded.
In H1 of 2005, over 70% of cargo was transported in FEU containers.
First Russian Freight Diesel Locomotive Passed Test
The first Russian diesel locomotive 2TE70, able to drive trains weighing more than 6 thousand tons, will increase Russian railways capacity. The diesel locomotive, created by Kolomensky Zavod OJSC, has successfully passed all the stages of pre-test and confirmed all the technical characteristics declared by the company.
The new locomotive has some fundamental technical advantages in comparison with 2TE116 diesel locomotives used in Russia. The freight diesel locomotive 2TE70 with electrical transfer of alternating and continuous current supplies a higher tractive force that enables to increase the mass of trains on the diesel traction lines by 20%-30%. Experts believe putting 2TE70 into operation will increase the railway capacity due to the use of rolling stock with diesel and electric traction without their reforming, which is a fundamental advantage of the new locomotive.
Moreover, the diesel locomotive enables to increase the speed of freight rolling-stock by 10-20 km/h, improve the working conditions of locomotive brigades, reduce expenses due to reduce of fuel and oil expenses and use microprocessor system of control and diagnostics. At the diesel locomotive, highly economical diesel generator 2A-9DG-02 with better ecological characteristics is installed that provides fuel expenses at modern international level.
Vladimir Vlasov, the CEO of Kolomensky Zavod OJSC, believes that freight diesel locomotive will be popular on the market, for it meets the requirements for new diesel locomotives.
Admiralty Shipyard Modernize Production
The Admiralty Shipyard company plans purchasing mechanical lines for producing of flat sections and micropanels to modernize erector-welding production of hull forming sections.
Nowadays, at the enterprise, the first metal processing production - refinement and cutting of sheet products - is being modernized. It will enable the company to reduce the time of vessel building, improve their quality and enhance the shipyard's competitiveness in the shipbuilding market, reports the press-service of the company.
In March, the enterprise started using the robot line for cutting profile rolled metal, purchased at JMG (a German company) in 2004. All the processes on this line are mechanized. A robot, controlled by a special programme, cuts the profile rolled metal with plasma. Experts of the Admiralty Shipyard company develop the controlling programmes. The line is serviced by 3 operators only. The accuracy of details production and their quality have improved.
New Terminal in Ust-Luga
Construction of a new terminal for servicing ro-ro vessels is planned inUst-Luga, as was reported at the conference . Its aim is to attract the freight flow of cars.
Experts believe that about 300 thousand cars imported in Russia are handled by Finnish terminals.
Nowadays, the technical and economical grounds for the project are being prepared. Next year it is planned to build the first line with 40 thousand cars capacity.
Container Freight Transportation to Increase
Beginning July 2005, TransContainer (OAO RZD affiliate specialized in container transportation) is realizing a programme for purchasing additional large-capacity containers. According to it, 3,568 FEU-containers are to be purchased in the second half of 2005.
The 2005 rolling-stock purchasing programme provides for purchasing 2000 fitting platforms, 800 being acquired in the first half of 2005.
At present, TransContainer operates rolling stock park that includes 22.2 thousand fitting platforms for FEU-containers and a container park of 175,100 containers, including 46.3 thousand FEU ones.
Tankers to Be Built in Russia for Dutch Company
The Russian conglomerate Marine Oil and Gas Projects (MNP) is to build tankers for the Dutch company Rensen Shipbuilding. MNP announced on July 20 that a contract worth over 9 million euros has been signed for the construction of six tanker hulls.
MNP Group incorporates five leading Russian ship-building yards: Almaz (St.-Petersburg), Krasnoe Sormovo (Nizhny Novgorod), Nizhnenovgorodsky Teplokhod (Nizhny Novgorod), Volgograd Ship-Building Yard, and III International Astrakhan Ship Building and Repair Yard.
Tankers for the Dutch company will be built at the III International and Nizhnenovgorodsky Teplokhod ship-building yards.
According to MNP, the vessels will transport chemicals and processed oil products through Europe's internal waterways and will meet all international requirements for protecting the sea from pollution. The double-hull tankers are capable of carrying several different types of oil products simultaneously.
P&O Expands Port Operations in Russia
On July 28, P&O ports said it had purchased 25% of Vostochnaya Stevedoring Company from the group of companies Severstaltrans.
P&O initially owned a 25 per cent stake in the container terminal Vostochny International Container Service CJSC.
The total capacity of the four berths, where Vostochnaya Stevedoring Company and Vostochny International Container Service CJSC operate, is estimated at 800,000 to one million TEU when fully equipped.
In 2004, throughput of the four berths totaled 273,000 TEU.
, said Bryan Smith, P&O Ports regional director, East Asia.
PRISCO Will Build Two More Tankers of Aframax Type
Primorsk Shipping Corporation (PRISCO) signed contract with the South Korean Shipyard Hyundai Heavy Industries in London for building two more tankers of Aframax type.
New vessels each of 104,000 tons dwt. with 1C ice class according to DNV (Det Norske Veritas) classification will be delivered in 2008. Now PRISCO operates three tankers of 100,000 tons dwt. The Company is building three more large-tonnage tankers of 100,000 tons dwt., which will be delivered from the Hyundai Heavy Industries in 2005 and used within the frames of Sakhalin-I Project on the Exxon Neftegas Limited Contract terms.
PRISCO Management signed a contract for building two tankers of 104,000 tons dwt. So, in 2008 PRISCO fleet will consist of 10 Aframaxes of 1,100 million tons total dwt. And, taking into consideration joint projects with other shipping companies, dead-weight of PRISCO newbuildings will exceed 1,300 million tons.
Portovy Flot Gained Double Victory
On June 18, the commission of the RF Federal Agency of the Sea and River Transport summed up the results of the tender on the contractor's building and reconstruction of the port infrastructure objects at the sea passenger terminal on the Vasilyevsky island in St.-Petersburg. The winner of the tender is Portovy Flot CJSC. Besides, the company managed to cancel the tender on ice-breaking servicing in the Big port of St.-Petersburg and to extend the contract for one year more.
The tender on the contractor's building and reconstruction of the port infrastructure objects of the sea passenger terminal was announced at the beginning of 2005. There were three subjects of the tender: building and reconstruction of the approaches in the water area of the future terminal, transfer of the engineering services and assembling of the equipment to provide navigation-hydrographic and ecological shipping in the water area of the port. Five companies took part in the tender for the project worth over RUR 160 million The first and the second subjects were won by Portovy Flot company. The audit company Konto won the third subject of the tender.
According to the port controlling body Rosmorport, when selecting the winner, they paid attention to the price offered, as well as the history and the financial state of the company. Portovy Flot CJSC offered the smallest price - RUR 123 million, RUR 20-30 million less than the other companies. The total cost of the three subjects of the tender is RUR 160 million. , said the executive director of Portovy Flot CJSC Alexander Denisov.
Building and reconstruction of the Sea passenger terminal infrastructure are supposed to start this August and continue at least three years.
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[DETAIL_TEXT] => OAO RZD Planning Investments into Infrastructure
OAO RZD is proposing to invest RUR 303 billion (approximately USD 10.54 billion) into infrastructure development, Vladimir Yakunin, the company's president, said at a press conference in St.-Petersburg. Of the total, some RUR 200 billion (approximately USD 6.96 billion) will be invested into the northwest direction.
The company means to approve the master plan of northwest railway infrastructure development until 2010 in August 2005. Specifically, the plan stipulates for projects aimed at establishing high-speed communication between Moscow andSt.-Petersburg and between St.-Petersburg and Helsinki. Such projects are to be implemented in several stages: railroad communication at a speed of up to 250 kilometers per hour will be made available through modernization of the existing infrastructure, but as for faster trains, the plan is yet to be finalized.
New Crane of Sverdlovskaya Railway
A new crane for handling FEU containers started operating at the Tyumen Department of the Sverdlovskaya Railway.
Due to putting the new loading-unloading equipment into operation, the volume of FEU containers handling has increased by 25%.
In H1 of 2005, the Sverdlovskaya Railway transported 760 thousand tons of containerized cargo, 64 thousand tons up year-on-year.
The enterprises of the railway loaded more than 500 containers with the average weight of 8 tons each daily. So, in H1 of 2005, almost 100 thousand containers were loaded.
In H1 of 2005, over 70% of cargo was transported in FEU containers.
First Russian Freight Diesel Locomotive Passed Test
The first Russian diesel locomotive 2TE70, able to drive trains weighing more than 6 thousand tons, will increase Russian railways capacity. The diesel locomotive, created by Kolomensky Zavod OJSC, has successfully passed all the stages of pre-test and confirmed all the technical characteristics declared by the company.
The new locomotive has some fundamental technical advantages in comparison with 2TE116 diesel locomotives used in Russia. The freight diesel locomotive 2TE70 with electrical transfer of alternating and continuous current supplies a higher tractive force that enables to increase the mass of trains on the diesel traction lines by 20%-30%. Experts believe putting 2TE70 into operation will increase the railway capacity due to the use of rolling stock with diesel and electric traction without their reforming, which is a fundamental advantage of the new locomotive.
Moreover, the diesel locomotive enables to increase the speed of freight rolling-stock by 10-20 km/h, improve the working conditions of locomotive brigades, reduce expenses due to reduce of fuel and oil expenses and use microprocessor system of control and diagnostics. At the diesel locomotive, highly economical diesel generator 2A-9DG-02 with better ecological characteristics is installed that provides fuel expenses at modern international level.
Vladimir Vlasov, the CEO of Kolomensky Zavod OJSC, believes that freight diesel locomotive will be popular on the market, for it meets the requirements for new diesel locomotives.
Admiralty Shipyard Modernize Production
The Admiralty Shipyard company plans purchasing mechanical lines for producing of flat sections and micropanels to modernize erector-welding production of hull forming sections.
Nowadays, at the enterprise, the first metal processing production - refinement and cutting of sheet products - is being modernized. It will enable the company to reduce the time of vessel building, improve their quality and enhance the shipyard's competitiveness in the shipbuilding market, reports the press-service of the company.
In March, the enterprise started using the robot line for cutting profile rolled metal, purchased at JMG (a German company) in 2004. All the processes on this line are mechanized. A robot, controlled by a special programme, cuts the profile rolled metal with plasma. Experts of the Admiralty Shipyard company develop the controlling programmes. The line is serviced by 3 operators only. The accuracy of details production and their quality have improved.
New Terminal in Ust-Luga
Construction of a new terminal for servicing ro-ro vessels is planned inUst-Luga, as was reported at the conference . Its aim is to attract the freight flow of cars.
Experts believe that about 300 thousand cars imported in Russia are handled by Finnish terminals.
Nowadays, the technical and economical grounds for the project are being prepared. Next year it is planned to build the first line with 40 thousand cars capacity.
Container Freight Transportation to Increase
Beginning July 2005, TransContainer (OAO RZD affiliate specialized in container transportation) is realizing a programme for purchasing additional large-capacity containers. According to it, 3,568 FEU-containers are to be purchased in the second half of 2005.
The 2005 rolling-stock purchasing programme provides for purchasing 2000 fitting platforms, 800 being acquired in the first half of 2005.
At present, TransContainer operates rolling stock park that includes 22.2 thousand fitting platforms for FEU-containers and a container park of 175,100 containers, including 46.3 thousand FEU ones.
Tankers to Be Built in Russia for Dutch Company
The Russian conglomerate Marine Oil and Gas Projects (MNP) is to build tankers for the Dutch company Rensen Shipbuilding. MNP announced on July 20 that a contract worth over 9 million euros has been signed for the construction of six tanker hulls.
MNP Group incorporates five leading Russian ship-building yards: Almaz (St.-Petersburg), Krasnoe Sormovo (Nizhny Novgorod), Nizhnenovgorodsky Teplokhod (Nizhny Novgorod), Volgograd Ship-Building Yard, and III International Astrakhan Ship Building and Repair Yard.
Tankers for the Dutch company will be built at the III International and Nizhnenovgorodsky Teplokhod ship-building yards.
According to MNP, the vessels will transport chemicals and processed oil products through Europe's internal waterways and will meet all international requirements for protecting the sea from pollution. The double-hull tankers are capable of carrying several different types of oil products simultaneously.
P&O Expands Port Operations in Russia
On July 28, P&O ports said it had purchased 25% of Vostochnaya Stevedoring Company from the group of companies Severstaltrans.
P&O initially owned a 25 per cent stake in the container terminal Vostochny International Container Service CJSC.
The total capacity of the four berths, where Vostochnaya Stevedoring Company and Vostochny International Container Service CJSC operate, is estimated at 800,000 to one million TEU when fully equipped.
In 2004, throughput of the four berths totaled 273,000 TEU.
, said Bryan Smith, P&O Ports regional director, East Asia.
PRISCO Will Build Two More Tankers of Aframax Type
Primorsk Shipping Corporation (PRISCO) signed contract with the South Korean Shipyard Hyundai Heavy Industries in London for building two more tankers of Aframax type.
New vessels each of 104,000 tons dwt. with 1C ice class according to DNV (Det Norske Veritas) classification will be delivered in 2008. Now PRISCO operates three tankers of 100,000 tons dwt. The Company is building three more large-tonnage tankers of 100,000 tons dwt., which will be delivered from the Hyundai Heavy Industries in 2005 and used within the frames of Sakhalin-I Project on the Exxon Neftegas Limited Contract terms.
PRISCO Management signed a contract for building two tankers of 104,000 tons dwt. So, in 2008 PRISCO fleet will consist of 10 Aframaxes of 1,100 million tons total dwt. And, taking into consideration joint projects with other shipping companies, dead-weight of PRISCO newbuildings will exceed 1,300 million tons.
Portovy Flot Gained Double Victory
On June 18, the commission of the RF Federal Agency of the Sea and River Transport summed up the results of the tender on the contractor's building and reconstruction of the port infrastructure objects at the sea passenger terminal on the Vasilyevsky island in St.-Petersburg. The winner of the tender is Portovy Flot CJSC. Besides, the company managed to cancel the tender on ice-breaking servicing in the Big port of St.-Petersburg and to extend the contract for one year more.
The tender on the contractor's building and reconstruction of the port infrastructure objects of the sea passenger terminal was announced at the beginning of 2005. There were three subjects of the tender: building and reconstruction of the approaches in the water area of the future terminal, transfer of the engineering services and assembling of the equipment to provide navigation-hydrographic and ecological shipping in the water area of the port. Five companies took part in the tender for the project worth over RUR 160 million The first and the second subjects were won by Portovy Flot company. The audit company Konto won the third subject of the tender.
According to the port controlling body Rosmorport, when selecting the winner, they paid attention to the price offered, as well as the history and the financial state of the company. Portovy Flot CJSC offered the smallest price - RUR 123 million, RUR 20-30 million less than the other companies. The total cost of the three subjects of the tender is RUR 160 million. , said the executive director of Portovy Flot CJSC Alexander Denisov.
Building and reconstruction of the Sea passenger terminal infrastructure are supposed to start this August and continue at least three years.
[~DETAIL_TEXT] => OAO RZD Planning Investments into Infrastructure
OAO RZD is proposing to invest RUR 303 billion (approximately USD 10.54 billion) into infrastructure development, Vladimir Yakunin, the company's president, said at a press conference in St.-Petersburg. Of the total, some RUR 200 billion (approximately USD 6.96 billion) will be invested into the northwest direction.
The company means to approve the master plan of northwest railway infrastructure development until 2010 in August 2005. Specifically, the plan stipulates for projects aimed at establishing high-speed communication between Moscow andSt.-Petersburg and between St.-Petersburg and Helsinki. Such projects are to be implemented in several stages: railroad communication at a speed of up to 250 kilometers per hour will be made available through modernization of the existing infrastructure, but as for faster trains, the plan is yet to be finalized.
New Crane of Sverdlovskaya Railway
A new crane for handling FEU containers started operating at the Tyumen Department of the Sverdlovskaya Railway.
Due to putting the new loading-unloading equipment into operation, the volume of FEU containers handling has increased by 25%.
In H1 of 2005, the Sverdlovskaya Railway transported 760 thousand tons of containerized cargo, 64 thousand tons up year-on-year.
The enterprises of the railway loaded more than 500 containers with the average weight of 8 tons each daily. So, in H1 of 2005, almost 100 thousand containers were loaded.
In H1 of 2005, over 70% of cargo was transported in FEU containers.
First Russian Freight Diesel Locomotive Passed Test
The first Russian diesel locomotive 2TE70, able to drive trains weighing more than 6 thousand tons, will increase Russian railways capacity. The diesel locomotive, created by Kolomensky Zavod OJSC, has successfully passed all the stages of pre-test and confirmed all the technical characteristics declared by the company.
The new locomotive has some fundamental technical advantages in comparison with 2TE116 diesel locomotives used in Russia. The freight diesel locomotive 2TE70 with electrical transfer of alternating and continuous current supplies a higher tractive force that enables to increase the mass of trains on the diesel traction lines by 20%-30%. Experts believe putting 2TE70 into operation will increase the railway capacity due to the use of rolling stock with diesel and electric traction without their reforming, which is a fundamental advantage of the new locomotive.
Moreover, the diesel locomotive enables to increase the speed of freight rolling-stock by 10-20 km/h, improve the working conditions of locomotive brigades, reduce expenses due to reduce of fuel and oil expenses and use microprocessor system of control and diagnostics. At the diesel locomotive, highly economical diesel generator 2A-9DG-02 with better ecological characteristics is installed that provides fuel expenses at modern international level.
Vladimir Vlasov, the CEO of Kolomensky Zavod OJSC, believes that freight diesel locomotive will be popular on the market, for it meets the requirements for new diesel locomotives.
Admiralty Shipyard Modernize Production
The Admiralty Shipyard company plans purchasing mechanical lines for producing of flat sections and micropanels to modernize erector-welding production of hull forming sections.
Nowadays, at the enterprise, the first metal processing production - refinement and cutting of sheet products - is being modernized. It will enable the company to reduce the time of vessel building, improve their quality and enhance the shipyard's competitiveness in the shipbuilding market, reports the press-service of the company.
In March, the enterprise started using the robot line for cutting profile rolled metal, purchased at JMG (a German company) in 2004. All the processes on this line are mechanized. A robot, controlled by a special programme, cuts the profile rolled metal with plasma. Experts of the Admiralty Shipyard company develop the controlling programmes. The line is serviced by 3 operators only. The accuracy of details production and their quality have improved.
New Terminal in Ust-Luga
Construction of a new terminal for servicing ro-ro vessels is planned inUst-Luga, as was reported at the conference . Its aim is to attract the freight flow of cars.
Experts believe that about 300 thousand cars imported in Russia are handled by Finnish terminals.
Nowadays, the technical and economical grounds for the project are being prepared. Next year it is planned to build the first line with 40 thousand cars capacity.
Container Freight Transportation to Increase
Beginning July 2005, TransContainer (OAO RZD affiliate specialized in container transportation) is realizing a programme for purchasing additional large-capacity containers. According to it, 3,568 FEU-containers are to be purchased in the second half of 2005.
The 2005 rolling-stock purchasing programme provides for purchasing 2000 fitting platforms, 800 being acquired in the first half of 2005.
At present, TransContainer operates rolling stock park that includes 22.2 thousand fitting platforms for FEU-containers and a container park of 175,100 containers, including 46.3 thousand FEU ones.
Tankers to Be Built in Russia for Dutch Company
The Russian conglomerate Marine Oil and Gas Projects (MNP) is to build tankers for the Dutch company Rensen Shipbuilding. MNP announced on July 20 that a contract worth over 9 million euros has been signed for the construction of six tanker hulls.
MNP Group incorporates five leading Russian ship-building yards: Almaz (St.-Petersburg), Krasnoe Sormovo (Nizhny Novgorod), Nizhnenovgorodsky Teplokhod (Nizhny Novgorod), Volgograd Ship-Building Yard, and III International Astrakhan Ship Building and Repair Yard.
Tankers for the Dutch company will be built at the III International and Nizhnenovgorodsky Teplokhod ship-building yards.
According to MNP, the vessels will transport chemicals and processed oil products through Europe's internal waterways and will meet all international requirements for protecting the sea from pollution. The double-hull tankers are capable of carrying several different types of oil products simultaneously.
P&O Expands Port Operations in Russia
On July 28, P&O ports said it had purchased 25% of Vostochnaya Stevedoring Company from the group of companies Severstaltrans.
P&O initially owned a 25 per cent stake in the container terminal Vostochny International Container Service CJSC.
The total capacity of the four berths, where Vostochnaya Stevedoring Company and Vostochny International Container Service CJSC operate, is estimated at 800,000 to one million TEU when fully equipped.
In 2004, throughput of the four berths totaled 273,000 TEU.
, said Bryan Smith, P&O Ports regional director, East Asia.
PRISCO Will Build Two More Tankers of Aframax Type
Primorsk Shipping Corporation (PRISCO) signed contract with the South Korean Shipyard Hyundai Heavy Industries in London for building two more tankers of Aframax type.
New vessels each of 104,000 tons dwt. with 1C ice class according to DNV (Det Norske Veritas) classification will be delivered in 2008. Now PRISCO operates three tankers of 100,000 tons dwt. The Company is building three more large-tonnage tankers of 100,000 tons dwt., which will be delivered from the Hyundai Heavy Industries in 2005 and used within the frames of Sakhalin-I Project on the Exxon Neftegas Limited Contract terms.
PRISCO Management signed a contract for building two tankers of 104,000 tons dwt. So, in 2008 PRISCO fleet will consist of 10 Aframaxes of 1,100 million tons total dwt. And, taking into consideration joint projects with other shipping companies, dead-weight of PRISCO newbuildings will exceed 1,300 million tons.
Portovy Flot Gained Double Victory
On June 18, the commission of the RF Federal Agency of the Sea and River Transport summed up the results of the tender on the contractor's building and reconstruction of the port infrastructure objects at the sea passenger terminal on the Vasilyevsky island in St.-Petersburg. The winner of the tender is Portovy Flot CJSC. Besides, the company managed to cancel the tender on ice-breaking servicing in the Big port of St.-Petersburg and to extend the contract for one year more.
The tender on the contractor's building and reconstruction of the port infrastructure objects of the sea passenger terminal was announced at the beginning of 2005. There were three subjects of the tender: building and reconstruction of the approaches in the water area of the future terminal, transfer of the engineering services and assembling of the equipment to provide navigation-hydrographic and ecological shipping in the water area of the port. Five companies took part in the tender for the project worth over RUR 160 million The first and the second subjects were won by Portovy Flot company. The audit company Konto won the third subject of the tender.
According to the port controlling body Rosmorport, when selecting the winner, they paid attention to the price offered, as well as the history and the financial state of the company. Portovy Flot CJSC offered the smallest price - RUR 123 million, RUR 20-30 million less than the other companies. The total cost of the three subjects of the tender is RUR 160 million. , said the executive director of Portovy Flot CJSC Alexander Denisov.
Building and reconstruction of the Sea passenger terminal infrastructure are supposed to start this August and continue at least three years.
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[DETAIL_TEXT] => Despite the fact that prices on airplanes fuel have recently skyrocketed, Russia retains positive trends in freight air transportation development, especially in international trade. Experts believe the volume of air freight traffic will be growing, as a result of increasing demand for general cargoes on the domestic market in the years to come. At the same time the Russian freight air carriers can have no fear of competition on behalf of large air corporations, as the latter do not hurry to Russia - the volume here is too small to attract foreign air operators.
International air transportation to be containerized and regular
According to the Freight Air Carriers International Association, over 470 air carriers are currently operating on the international lines; over 250 of them are international air companies. Over a thousand of airports all over the world are taking part in serving international air transportation.
The world freight air transportation industry currently has a turnover of USD 46 bln. 40% of the freight air traffic is served by civil planes. The growth rate of the freight air traffic volume in the last decade averaged 7.6% per annum, that of turnover - 9.5% per annum. Such dynamics is expected to remain through 2015. The market is characterized by a tendency for routes extension.
Another promising tendency of the freight air transport development is the traffic containerization, which became possible after the creation of wide-body planes. Experts foretell that by 2010 over 80% of the volumes will be containerized. Over 50% of the cargoes will be carried by specialized freight planes. Thus, bulk cargoes and non-standard containers are to be replaced by standard containers.
Analysts estimate that the international traffic will be growing at an even greater rate than the domestic one. This is due to the anticipatory positive dynamics of international trade and, first of all, is true of commercial and industrial merchandise and others that can be carried by air. The air transport turnover will exceed 100 bln. t.-km. by 2007 (70 bln. t.-km. will be the share of regular traffic). The air transport will gain an even greater importance on the transoceanic and transcontinental routes.
Continued growth
The Russian freight air traffic growth rate corresponds to the world one. At the International Forum on the Freight Air Transportation Problems in late 2004, the Boeing representatives reported that the freight air traffic growth in the 20 years to come is to average 6.2 % per annum, while the volume of air traffic will triple. However the IATA forecasts for Russia are more moderate - 5.4-5.6% a year. In 2004, according to the Federal Agency of Air Transport, the national air transport companies carried some 700 th.t. of cargoes; over 54% is the share of charter traffic, the rest - of regular lines.
At the same time there is a trend towards a reduction of the number of carriers. According to the Federal Agency of Air Transport, 80% of the air-born traffic is served by 20 major companies; the share of Aeroflot - Russian airlines, Volga-Dnepr, Russkoye Nebo and Atland-Souyz is some 57% of the total volume and over 75% of the international volume. At present the Russian air carriers have about 700 of freight airplanes of the 1st, 2nd and 3rd classes, but in reality the companies are exploiting less than half of the stock.
Air-born trafficis import-oriented
According to the Federal Agency of Air Transport, about 95% of the air-born traffic in Russia is import or transit, which is supported by the major market operators' statistics.
As announced by Alexey Prikhodchenko, Aeroflot's Fright Transportation department deputy director, general cargoes - clothes, footwear, furniture, household equipment, computers, spare parts - are the major cargo flow for air transport today. "Most of the general cargoes are currently imported to Russia, while export flow is very weak and is comprised by irregular or unique commodities", - stated A. Prikhodchenko. Thus, Aeroflot, responsible for 23% of the total volume of Russian air-born freight traffic, imports only 5% of the total volume, while 95% is the share of import. According to the Aeroflot management, the list of export cargoes is very limited - unprocessed leather supplied to S.Korea, sweets and confectionery exported to Europe and science intensive equipment supplied to Japan and the USA.
According to the head of the Pulkovo Fright Transportation department Nikolay Rodionov, currently the internal cargo flow is destined to Siberia and Far East. He also said that "transfer traffic from the foreign countries via St.-Petersburg and other Russian regions are no less important for Pulkovo". The consumer goods (household equipment, clothes, footwear) and express mail are the most demanded cargo flow for Pulkovo carriers.
According to the Volga-Dnepr press-service, the priority trade for the company is the transit from Europe to the Far East. "The consumer goods traffic from China to Europe is our most promising and dynamic market," - their press-service revealed. The air carriers' orientation on delivery from China is quite natural, taking into account the dramatically growing volume of production of licensed household equipment, clothes, footwear and consumer goods in China. According to the Volga-Dnepr press-service, the most demanded cargoes by both, consigners and consignees, are the military cargoes, consumer goods, industrial equipment and air-space equipment.
Another large carrier - Russkoye Nebo (previously known as East Line) carries out up to 50 trips a month on international and domestic lines. The major routes are to China, S.Korea, Germany, Greece and the United Arab Emirates. Russkoye Nebo carries out 23 regular flights to 11 destination points in these countries. Apart from general cargoes not requiring any specific transportation terms, the company also carries perishable cargoes, animals, unique and over-size cargoes.
No competition in the air
The Russian air freight carriers do not currently feel competition on behalf of sea and rail operators thanks to shorter delivery terms they can offer. As stated by the Volga-Dnepr press-service, the company is specializing in over-size cargoes that are hard to carry by rail due to many restricting factors, such as the distance between the tracks, bridges width, etc. The Volga-Dnepr experts estimate the Russian market of over-size and over-weight cargoes as most promising. In the 5 years to come its volume can triple to USD 1.5 bln., with further growth to USD 3 bln.
According to the national air carriers, there is no competition from foreign air lines either. The world leaders do not find the Russian market volume attractive enough to invest, with large distances and extreme weather conditions adding nothing to its appeal.
Besides, foreign air carriers are not satisfied with the national airports services quality. "Only the German Lufthansa has a regular weekly service; the rest are charter flights carried out irregularly when there is the required volume of cargoes with fixed delivery term", said an Aeroflot representative.
What disturbs air carriers
According to the transport market experts, the state of the Russian airports is currently the main factor hindering the Russian air transport development. The state of the runways and the equipment of the dispatching services is often most poor. The reason is lack of state investment in airports maintenance and development. Most airports have been receiving only 50-60% of the amount required to maintain their operation. Besides, 80% of the Russian airports still have no decent road and rail approaches. As a result, foreign air carriers refuse to have regular services to Russian airports. The Ministry of Transport officials believe all the airports having no strategic importance with the state stock of less than 50% are to be handed to investors. For example, in St.-Petersburg the former military airport Rzhevka that had grown highly worn out was handed to a private investor at the end of last year. The airport stock was purchased by the Peterburgskaya Toplivnaya Kompaniya(St.-Petersburg Fuel Company) currently carrying out a large-scale reconstruction of the airport. The new owner is going to adjust the airport for small private planes.
Besides, many airports suffer from disputes over the property between the administration and the carriers' management. In the nearest future the Ministry of Transport together with the the Federal Property Management Agency (Rosimushestvo) are to define the order of concluding leasing contracts between air carriers and airports, which will settle most of the legal disputes currently on.
Additional problems are caused by the customs officials regularly delaying cargoes to be inspected by 1-3 days. Thus in the Urals region the volume of air traffic from abroad reduced in the first half of 2005 4.8-fold as a result of unjustified delays. According to the Uralskiye Avialinii (Urals Air Lines) general director Sergey Skuratov, the company's monthly losses from the consigners abandoning air transport to deliver cargoes to China average USD 1 mln. Skuratov admitted that the reason for this is the excessive zeal of the customs officials wishing to have full control over freight transportation that led to the conflict with importers. The international trade participants have grown tired of constant delays of merchandise by the airport customs office and preferred railway transport to save costs.
Largest carriersare short of planes
Apart from outdated airports and slow customs, air transport development is impeded by shortage of modern planes. Last year Russian carriers faced a serious problem of planes deficit, while Russian airplanes plants produce no more than ten long haul lines a year. That is why most of the air carriers intend to supplement their stock by new foreign produced freight planes purchased according to leasing schemes.
Aeroflot is short of planes to carry general cargoes. "Our company would eagerly acquire 3-4 freight planes, based on the volume of orders we currently have. The problem is in Russia there are no modern planes to carry general cargoes. Indeed, at the recent air show in Le Burge Volga-Dnepr signed a contract for two IL-96, but this plane exists only in experimental models and drafts. You cannot fly it, it has no spare parts. Aeroflot just cannot take such risks", said Aeroflot's Fright Transportation department deputy director Alexey Prikhodchenko. Carriers agree that the national "Ruslan" is an ideal plane for over-weight cargoes, but is not good to carry general cargoes, forming the basic cargo flow - it is just too big for them. The freight compartments are 4.4 meters high. So if it is fully loaded with general cargoes, which are usually fragile, those at the bottom will be crashed by those on top. That is why Aeroflot intends to purchase several foreign planes that would suit the class - either Boeing 747, or MD-11.
Volga-Dnepr is also suffering from dramatic shortage of carrying facility, so it is not by chance that at the May air show in Le Burge the company signed a leasing contract with the Ilyushin Finance Co for two Il-96-400Т planes and announced an intention to purchase 30-40 freight planes An-148 in the 5 years to come. Il-96-400Т is a freight model of Il-96-300 planes family with capacity of 92 tons of cargo for 7 th.km. It has a significant shortcoming though, i.e. it will only be certified next year. Each plane will cost Volga-Dnepr the minimum of USD 55 mln., which is the plant's price without leasing payments. The first of the planes will be delivered to the customer in 2006, right after certification, the second - in early 2007. By this time Volga-Dnepr plans to form its airplanes stock, so as to become a freight "supermarket". With An-124 "Ruslan" planes the company plans to carry out charter transportation of over-size cargoes, while regular lines will be served by Boeing 747. According to the press service, the company expects to lease at least 4 American planes, while for the regular medium distance routes the Il-96-400Т will be employed. Feeder transportation will be served by Tu-204 Cargo. Besides, Volga-Dnepr and the Ilyushin Finance Co are negotiating the purchase of 30-40 of An-148 freight modification, but it is too early to speak of a definite order. So far only the passenger version of the plane is under certification. Meanwhile Volga-Dnepr is doing its best with what it has. "In the high season the company usually leases An-124 planes from the military transport aviation. And the maintenance services have to work harder to keep the planes ready for flying", commented the press service.
Pulkovo is not as straightforward in respect to the planes shortage. "For us the major problem hampering the freight traffic volume growth is the shortage of transportation containers, as the company is using freight sections of passenger planes to carry cargoes. To resolve this problem we pay special attention to cooperation with national and international air carriers in the framework of various agreements. We work not only with air transport agents, but also with other transport modes carriers both in Russia and abroad", informed the Pulkovo press-service. At the same time the company is negotiating a leasing contract for two Boeing 747 planes.
Ilya Sverdlov
[~DETAIL_TEXT] => Despite the fact that prices on airplanes fuel have recently skyrocketed, Russia retains positive trends in freight air transportation development, especially in international trade. Experts believe the volume of air freight traffic will be growing, as a result of increasing demand for general cargoes on the domestic market in the years to come. At the same time the Russian freight air carriers can have no fear of competition on behalf of large air corporations, as the latter do not hurry to Russia - the volume here is too small to attract foreign air operators.
International air transportation to be containerized and regular
According to the Freight Air Carriers International Association, over 470 air carriers are currently operating on the international lines; over 250 of them are international air companies. Over a thousand of airports all over the world are taking part in serving international air transportation.
The world freight air transportation industry currently has a turnover of USD 46 bln. 40% of the freight air traffic is served by civil planes. The growth rate of the freight air traffic volume in the last decade averaged 7.6% per annum, that of turnover - 9.5% per annum. Such dynamics is expected to remain through 2015. The market is characterized by a tendency for routes extension.
Another promising tendency of the freight air transport development is the traffic containerization, which became possible after the creation of wide-body planes. Experts foretell that by 2010 over 80% of the volumes will be containerized. Over 50% of the cargoes will be carried by specialized freight planes. Thus, bulk cargoes and non-standard containers are to be replaced by standard containers.
Analysts estimate that the international traffic will be growing at an even greater rate than the domestic one. This is due to the anticipatory positive dynamics of international trade and, first of all, is true of commercial and industrial merchandise and others that can be carried by air. The air transport turnover will exceed 100 bln. t.-km. by 2007 (70 bln. t.-km. will be the share of regular traffic). The air transport will gain an even greater importance on the transoceanic and transcontinental routes.
Continued growth
The Russian freight air traffic growth rate corresponds to the world one. At the International Forum on the Freight Air Transportation Problems in late 2004, the Boeing representatives reported that the freight air traffic growth in the 20 years to come is to average 6.2 % per annum, while the volume of air traffic will triple. However the IATA forecasts for Russia are more moderate - 5.4-5.6% a year. In 2004, according to the Federal Agency of Air Transport, the national air transport companies carried some 700 th.t. of cargoes; over 54% is the share of charter traffic, the rest - of regular lines.
At the same time there is a trend towards a reduction of the number of carriers. According to the Federal Agency of Air Transport, 80% of the air-born traffic is served by 20 major companies; the share of Aeroflot - Russian airlines, Volga-Dnepr, Russkoye Nebo and Atland-Souyz is some 57% of the total volume and over 75% of the international volume. At present the Russian air carriers have about 700 of freight airplanes of the 1st, 2nd and 3rd classes, but in reality the companies are exploiting less than half of the stock.
Air-born trafficis import-oriented
According to the Federal Agency of Air Transport, about 95% of the air-born traffic in Russia is import or transit, which is supported by the major market operators' statistics.
As announced by Alexey Prikhodchenko, Aeroflot's Fright Transportation department deputy director, general cargoes - clothes, footwear, furniture, household equipment, computers, spare parts - are the major cargo flow for air transport today. "Most of the general cargoes are currently imported to Russia, while export flow is very weak and is comprised by irregular or unique commodities", - stated A. Prikhodchenko. Thus, Aeroflot, responsible for 23% of the total volume of Russian air-born freight traffic, imports only 5% of the total volume, while 95% is the share of import. According to the Aeroflot management, the list of export cargoes is very limited - unprocessed leather supplied to S.Korea, sweets and confectionery exported to Europe and science intensive equipment supplied to Japan and the USA.
According to the head of the Pulkovo Fright Transportation department Nikolay Rodionov, currently the internal cargo flow is destined to Siberia and Far East. He also said that "transfer traffic from the foreign countries via St.-Petersburg and other Russian regions are no less important for Pulkovo". The consumer goods (household equipment, clothes, footwear) and express mail are the most demanded cargo flow for Pulkovo carriers.
According to the Volga-Dnepr press-service, the priority trade for the company is the transit from Europe to the Far East. "The consumer goods traffic from China to Europe is our most promising and dynamic market," - their press-service revealed. The air carriers' orientation on delivery from China is quite natural, taking into account the dramatically growing volume of production of licensed household equipment, clothes, footwear and consumer goods in China. According to the Volga-Dnepr press-service, the most demanded cargoes by both, consigners and consignees, are the military cargoes, consumer goods, industrial equipment and air-space equipment.
Another large carrier - Russkoye Nebo (previously known as East Line) carries out up to 50 trips a month on international and domestic lines. The major routes are to China, S.Korea, Germany, Greece and the United Arab Emirates. Russkoye Nebo carries out 23 regular flights to 11 destination points in these countries. Apart from general cargoes not requiring any specific transportation terms, the company also carries perishable cargoes, animals, unique and over-size cargoes.
No competition in the air
The Russian air freight carriers do not currently feel competition on behalf of sea and rail operators thanks to shorter delivery terms they can offer. As stated by the Volga-Dnepr press-service, the company is specializing in over-size cargoes that are hard to carry by rail due to many restricting factors, such as the distance between the tracks, bridges width, etc. The Volga-Dnepr experts estimate the Russian market of over-size and over-weight cargoes as most promising. In the 5 years to come its volume can triple to USD 1.5 bln., with further growth to USD 3 bln.
According to the national air carriers, there is no competition from foreign air lines either. The world leaders do not find the Russian market volume attractive enough to invest, with large distances and extreme weather conditions adding nothing to its appeal.
Besides, foreign air carriers are not satisfied with the national airports services quality. "Only the German Lufthansa has a regular weekly service; the rest are charter flights carried out irregularly when there is the required volume of cargoes with fixed delivery term", said an Aeroflot representative.
What disturbs air carriers
According to the transport market experts, the state of the Russian airports is currently the main factor hindering the Russian air transport development. The state of the runways and the equipment of the dispatching services is often most poor. The reason is lack of state investment in airports maintenance and development. Most airports have been receiving only 50-60% of the amount required to maintain their operation. Besides, 80% of the Russian airports still have no decent road and rail approaches. As a result, foreign air carriers refuse to have regular services to Russian airports. The Ministry of Transport officials believe all the airports having no strategic importance with the state stock of less than 50% are to be handed to investors. For example, in St.-Petersburg the former military airport Rzhevka that had grown highly worn out was handed to a private investor at the end of last year. The airport stock was purchased by the Peterburgskaya Toplivnaya Kompaniya(St.-Petersburg Fuel Company) currently carrying out a large-scale reconstruction of the airport. The new owner is going to adjust the airport for small private planes.
Besides, many airports suffer from disputes over the property between the administration and the carriers' management. In the nearest future the Ministry of Transport together with the the Federal Property Management Agency (Rosimushestvo) are to define the order of concluding leasing contracts between air carriers and airports, which will settle most of the legal disputes currently on.
Additional problems are caused by the customs officials regularly delaying cargoes to be inspected by 1-3 days. Thus in the Urals region the volume of air traffic from abroad reduced in the first half of 2005 4.8-fold as a result of unjustified delays. According to the Uralskiye Avialinii (Urals Air Lines) general director Sergey Skuratov, the company's monthly losses from the consigners abandoning air transport to deliver cargoes to China average USD 1 mln. Skuratov admitted that the reason for this is the excessive zeal of the customs officials wishing to have full control over freight transportation that led to the conflict with importers. The international trade participants have grown tired of constant delays of merchandise by the airport customs office and preferred railway transport to save costs.
Largest carriersare short of planes
Apart from outdated airports and slow customs, air transport development is impeded by shortage of modern planes. Last year Russian carriers faced a serious problem of planes deficit, while Russian airplanes plants produce no more than ten long haul lines a year. That is why most of the air carriers intend to supplement their stock by new foreign produced freight planes purchased according to leasing schemes.
Aeroflot is short of planes to carry general cargoes. "Our company would eagerly acquire 3-4 freight planes, based on the volume of orders we currently have. The problem is in Russia there are no modern planes to carry general cargoes. Indeed, at the recent air show in Le Burge Volga-Dnepr signed a contract for two IL-96, but this plane exists only in experimental models and drafts. You cannot fly it, it has no spare parts. Aeroflot just cannot take such risks", said Aeroflot's Fright Transportation department deputy director Alexey Prikhodchenko. Carriers agree that the national "Ruslan" is an ideal plane for over-weight cargoes, but is not good to carry general cargoes, forming the basic cargo flow - it is just too big for them. The freight compartments are 4.4 meters high. So if it is fully loaded with general cargoes, which are usually fragile, those at the bottom will be crashed by those on top. That is why Aeroflot intends to purchase several foreign planes that would suit the class - either Boeing 747, or MD-11.
Volga-Dnepr is also suffering from dramatic shortage of carrying facility, so it is not by chance that at the May air show in Le Burge the company signed a leasing contract with the Ilyushin Finance Co for two Il-96-400Т planes and announced an intention to purchase 30-40 freight planes An-148 in the 5 years to come. Il-96-400Т is a freight model of Il-96-300 planes family with capacity of 92 tons of cargo for 7 th.km. It has a significant shortcoming though, i.e. it will only be certified next year. Each plane will cost Volga-Dnepr the minimum of USD 55 mln., which is the plant's price without leasing payments. The first of the planes will be delivered to the customer in 2006, right after certification, the second - in early 2007. By this time Volga-Dnepr plans to form its airplanes stock, so as to become a freight "supermarket". With An-124 "Ruslan" planes the company plans to carry out charter transportation of over-size cargoes, while regular lines will be served by Boeing 747. According to the press service, the company expects to lease at least 4 American planes, while for the regular medium distance routes the Il-96-400Т will be employed. Feeder transportation will be served by Tu-204 Cargo. Besides, Volga-Dnepr and the Ilyushin Finance Co are negotiating the purchase of 30-40 of An-148 freight modification, but it is too early to speak of a definite order. So far only the passenger version of the plane is under certification. Meanwhile Volga-Dnepr is doing its best with what it has. "In the high season the company usually leases An-124 planes from the military transport aviation. And the maintenance services have to work harder to keep the planes ready for flying", commented the press service.
Pulkovo is not as straightforward in respect to the planes shortage. "For us the major problem hampering the freight traffic volume growth is the shortage of transportation containers, as the company is using freight sections of passenger planes to carry cargoes. To resolve this problem we pay special attention to cooperation with national and international air carriers in the framework of various agreements. We work not only with air transport agents, but also with other transport modes carriers both in Russia and abroad", informed the Pulkovo press-service. At the same time the company is negotiating a leasing contract for two Boeing 747 planes.
Ilya Sverdlov
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[DETAIL_TEXT] => Despite the fact that prices on airplanes fuel have recently skyrocketed, Russia retains positive trends in freight air transportation development, especially in international trade. Experts believe the volume of air freight traffic will be growing, as a result of increasing demand for general cargoes on the domestic market in the years to come. At the same time the Russian freight air carriers can have no fear of competition on behalf of large air corporations, as the latter do not hurry to Russia - the volume here is too small to attract foreign air operators.
International air transportation to be containerized and regular
According to the Freight Air Carriers International Association, over 470 air carriers are currently operating on the international lines; over 250 of them are international air companies. Over a thousand of airports all over the world are taking part in serving international air transportation.
The world freight air transportation industry currently has a turnover of USD 46 bln. 40% of the freight air traffic is served by civil planes. The growth rate of the freight air traffic volume in the last decade averaged 7.6% per annum, that of turnover - 9.5% per annum. Such dynamics is expected to remain through 2015. The market is characterized by a tendency for routes extension.
Another promising tendency of the freight air transport development is the traffic containerization, which became possible after the creation of wide-body planes. Experts foretell that by 2010 over 80% of the volumes will be containerized. Over 50% of the cargoes will be carried by specialized freight planes. Thus, bulk cargoes and non-standard containers are to be replaced by standard containers.
Analysts estimate that the international traffic will be growing at an even greater rate than the domestic one. This is due to the anticipatory positive dynamics of international trade and, first of all, is true of commercial and industrial merchandise and others that can be carried by air. The air transport turnover will exceed 100 bln. t.-km. by 2007 (70 bln. t.-km. will be the share of regular traffic). The air transport will gain an even greater importance on the transoceanic and transcontinental routes.
Continued growth
The Russian freight air traffic growth rate corresponds to the world one. At the International Forum on the Freight Air Transportation Problems in late 2004, the Boeing representatives reported that the freight air traffic growth in the 20 years to come is to average 6.2 % per annum, while the volume of air traffic will triple. However the IATA forecasts for Russia are more moderate - 5.4-5.6% a year. In 2004, according to the Federal Agency of Air Transport, the national air transport companies carried some 700 th.t. of cargoes; over 54% is the share of charter traffic, the rest - of regular lines.
At the same time there is a trend towards a reduction of the number of carriers. According to the Federal Agency of Air Transport, 80% of the air-born traffic is served by 20 major companies; the share of Aeroflot - Russian airlines, Volga-Dnepr, Russkoye Nebo and Atland-Souyz is some 57% of the total volume and over 75% of the international volume. At present the Russian air carriers have about 700 of freight airplanes of the 1st, 2nd and 3rd classes, but in reality the companies are exploiting less than half of the stock.
Air-born trafficis import-oriented
According to the Federal Agency of Air Transport, about 95% of the air-born traffic in Russia is import or transit, which is supported by the major market operators' statistics.
As announced by Alexey Prikhodchenko, Aeroflot's Fright Transportation department deputy director, general cargoes - clothes, footwear, furniture, household equipment, computers, spare parts - are the major cargo flow for air transport today. "Most of the general cargoes are currently imported to Russia, while export flow is very weak and is comprised by irregular or unique commodities", - stated A. Prikhodchenko. Thus, Aeroflot, responsible for 23% of the total volume of Russian air-born freight traffic, imports only 5% of the total volume, while 95% is the share of import. According to the Aeroflot management, the list of export cargoes is very limited - unprocessed leather supplied to S.Korea, sweets and confectionery exported to Europe and science intensive equipment supplied to Japan and the USA.
According to the head of the Pulkovo Fright Transportation department Nikolay Rodionov, currently the internal cargo flow is destined to Siberia and Far East. He also said that "transfer traffic from the foreign countries via St.-Petersburg and other Russian regions are no less important for Pulkovo". The consumer goods (household equipment, clothes, footwear) and express mail are the most demanded cargo flow for Pulkovo carriers.
According to the Volga-Dnepr press-service, the priority trade for the company is the transit from Europe to the Far East. "The consumer goods traffic from China to Europe is our most promising and dynamic market," - their press-service revealed. The air carriers' orientation on delivery from China is quite natural, taking into account the dramatically growing volume of production of licensed household equipment, clothes, footwear and consumer goods in China. According to the Volga-Dnepr press-service, the most demanded cargoes by both, consigners and consignees, are the military cargoes, consumer goods, industrial equipment and air-space equipment.
Another large carrier - Russkoye Nebo (previously known as East Line) carries out up to 50 trips a month on international and domestic lines. The major routes are to China, S.Korea, Germany, Greece and the United Arab Emirates. Russkoye Nebo carries out 23 regular flights to 11 destination points in these countries. Apart from general cargoes not requiring any specific transportation terms, the company also carries perishable cargoes, animals, unique and over-size cargoes.
No competition in the air
The Russian air freight carriers do not currently feel competition on behalf of sea and rail operators thanks to shorter delivery terms they can offer. As stated by the Volga-Dnepr press-service, the company is specializing in over-size cargoes that are hard to carry by rail due to many restricting factors, such as the distance between the tracks, bridges width, etc. The Volga-Dnepr experts estimate the Russian market of over-size and over-weight cargoes as most promising. In the 5 years to come its volume can triple to USD 1.5 bln., with further growth to USD 3 bln.
According to the national air carriers, there is no competition from foreign air lines either. The world leaders do not find the Russian market volume attractive enough to invest, with large distances and extreme weather conditions adding nothing to its appeal.
Besides, foreign air carriers are not satisfied with the national airports services quality. "Only the German Lufthansa has a regular weekly service; the rest are charter flights carried out irregularly when there is the required volume of cargoes with fixed delivery term", said an Aeroflot representative.
What disturbs air carriers
According to the transport market experts, the state of the Russian airports is currently the main factor hindering the Russian air transport development. The state of the runways and the equipment of the dispatching services is often most poor. The reason is lack of state investment in airports maintenance and development. Most airports have been receiving only 50-60% of the amount required to maintain their operation. Besides, 80% of the Russian airports still have no decent road and rail approaches. As a result, foreign air carriers refuse to have regular services to Russian airports. The Ministry of Transport officials believe all the airports having no strategic importance with the state stock of less than 50% are to be handed to investors. For example, in St.-Petersburg the former military airport Rzhevka that had grown highly worn out was handed to a private investor at the end of last year. The airport stock was purchased by the Peterburgskaya Toplivnaya Kompaniya(St.-Petersburg Fuel Company) currently carrying out a large-scale reconstruction of the airport. The new owner is going to adjust the airport for small private planes.
Besides, many airports suffer from disputes over the property between the administration and the carriers' management. In the nearest future the Ministry of Transport together with the the Federal Property Management Agency (Rosimushestvo) are to define the order of concluding leasing contracts between air carriers and airports, which will settle most of the legal disputes currently on.
Additional problems are caused by the customs officials regularly delaying cargoes to be inspected by 1-3 days. Thus in the Urals region the volume of air traffic from abroad reduced in the first half of 2005 4.8-fold as a result of unjustified delays. According to the Uralskiye Avialinii (Urals Air Lines) general director Sergey Skuratov, the company's monthly losses from the consigners abandoning air transport to deliver cargoes to China average USD 1 mln. Skuratov admitted that the reason for this is the excessive zeal of the customs officials wishing to have full control over freight transportation that led to the conflict with importers. The international trade participants have grown tired of constant delays of merchandise by the airport customs office and preferred railway transport to save costs.
Largest carriersare short of planes
Apart from outdated airports and slow customs, air transport development is impeded by shortage of modern planes. Last year Russian carriers faced a serious problem of planes deficit, while Russian airplanes plants produce no more than ten long haul lines a year. That is why most of the air carriers intend to supplement their stock by new foreign produced freight planes purchased according to leasing schemes.
Aeroflot is short of planes to carry general cargoes. "Our company would eagerly acquire 3-4 freight planes, based on the volume of orders we currently have. The problem is in Russia there are no modern planes to carry general cargoes. Indeed, at the recent air show in Le Burge Volga-Dnepr signed a contract for two IL-96, but this plane exists only in experimental models and drafts. You cannot fly it, it has no spare parts. Aeroflot just cannot take such risks", said Aeroflot's Fright Transportation department deputy director Alexey Prikhodchenko. Carriers agree that the national "Ruslan" is an ideal plane for over-weight cargoes, but is not good to carry general cargoes, forming the basic cargo flow - it is just too big for them. The freight compartments are 4.4 meters high. So if it is fully loaded with general cargoes, which are usually fragile, those at the bottom will be crashed by those on top. That is why Aeroflot intends to purchase several foreign planes that would suit the class - either Boeing 747, or MD-11.
Volga-Dnepr is also suffering from dramatic shortage of carrying facility, so it is not by chance that at the May air show in Le Burge the company signed a leasing contract with the Ilyushin Finance Co for two Il-96-400Т planes and announced an intention to purchase 30-40 freight planes An-148 in the 5 years to come. Il-96-400Т is a freight model of Il-96-300 planes family with capacity of 92 tons of cargo for 7 th.km. It has a significant shortcoming though, i.e. it will only be certified next year. Each plane will cost Volga-Dnepr the minimum of USD 55 mln., which is the plant's price without leasing payments. The first of the planes will be delivered to the customer in 2006, right after certification, the second - in early 2007. By this time Volga-Dnepr plans to form its airplanes stock, so as to become a freight "supermarket". With An-124 "Ruslan" planes the company plans to carry out charter transportation of over-size cargoes, while regular lines will be served by Boeing 747. According to the press service, the company expects to lease at least 4 American planes, while for the regular medium distance routes the Il-96-400Т will be employed. Feeder transportation will be served by Tu-204 Cargo. Besides, Volga-Dnepr and the Ilyushin Finance Co are negotiating the purchase of 30-40 of An-148 freight modification, but it is too early to speak of a definite order. So far only the passenger version of the plane is under certification. Meanwhile Volga-Dnepr is doing its best with what it has. "In the high season the company usually leases An-124 planes from the military transport aviation. And the maintenance services have to work harder to keep the planes ready for flying", commented the press service.
Pulkovo is not as straightforward in respect to the planes shortage. "For us the major problem hampering the freight traffic volume growth is the shortage of transportation containers, as the company is using freight sections of passenger planes to carry cargoes. To resolve this problem we pay special attention to cooperation with national and international air carriers in the framework of various agreements. We work not only with air transport agents, but also with other transport modes carriers both in Russia and abroad", informed the Pulkovo press-service. At the same time the company is negotiating a leasing contract for two Boeing 747 planes.
Ilya Sverdlov
[~DETAIL_TEXT] => Despite the fact that prices on airplanes fuel have recently skyrocketed, Russia retains positive trends in freight air transportation development, especially in international trade. Experts believe the volume of air freight traffic will be growing, as a result of increasing demand for general cargoes on the domestic market in the years to come. At the same time the Russian freight air carriers can have no fear of competition on behalf of large air corporations, as the latter do not hurry to Russia - the volume here is too small to attract foreign air operators.
International air transportation to be containerized and regular
According to the Freight Air Carriers International Association, over 470 air carriers are currently operating on the international lines; over 250 of them are international air companies. Over a thousand of airports all over the world are taking part in serving international air transportation.
The world freight air transportation industry currently has a turnover of USD 46 bln. 40% of the freight air traffic is served by civil planes. The growth rate of the freight air traffic volume in the last decade averaged 7.6% per annum, that of turnover - 9.5% per annum. Such dynamics is expected to remain through 2015. The market is characterized by a tendency for routes extension.
Another promising tendency of the freight air transport development is the traffic containerization, which became possible after the creation of wide-body planes. Experts foretell that by 2010 over 80% of the volumes will be containerized. Over 50% of the cargoes will be carried by specialized freight planes. Thus, bulk cargoes and non-standard containers are to be replaced by standard containers.
Analysts estimate that the international traffic will be growing at an even greater rate than the domestic one. This is due to the anticipatory positive dynamics of international trade and, first of all, is true of commercial and industrial merchandise and others that can be carried by air. The air transport turnover will exceed 100 bln. t.-km. by 2007 (70 bln. t.-km. will be the share of regular traffic). The air transport will gain an even greater importance on the transoceanic and transcontinental routes.
Continued growth
The Russian freight air traffic growth rate corresponds to the world one. At the International Forum on the Freight Air Transportation Problems in late 2004, the Boeing representatives reported that the freight air traffic growth in the 20 years to come is to average 6.2 % per annum, while the volume of air traffic will triple. However the IATA forecasts for Russia are more moderate - 5.4-5.6% a year. In 2004, according to the Federal Agency of Air Transport, the national air transport companies carried some 700 th.t. of cargoes; over 54% is the share of charter traffic, the rest - of regular lines.
At the same time there is a trend towards a reduction of the number of carriers. According to the Federal Agency of Air Transport, 80% of the air-born traffic is served by 20 major companies; the share of Aeroflot - Russian airlines, Volga-Dnepr, Russkoye Nebo and Atland-Souyz is some 57% of the total volume and over 75% of the international volume. At present the Russian air carriers have about 700 of freight airplanes of the 1st, 2nd and 3rd classes, but in reality the companies are exploiting less than half of the stock.
Air-born trafficis import-oriented
According to the Federal Agency of Air Transport, about 95% of the air-born traffic in Russia is import or transit, which is supported by the major market operators' statistics.
As announced by Alexey Prikhodchenko, Aeroflot's Fright Transportation department deputy director, general cargoes - clothes, footwear, furniture, household equipment, computers, spare parts - are the major cargo flow for air transport today. "Most of the general cargoes are currently imported to Russia, while export flow is very weak and is comprised by irregular or unique commodities", - stated A. Prikhodchenko. Thus, Aeroflot, responsible for 23% of the total volume of Russian air-born freight traffic, imports only 5% of the total volume, while 95% is the share of import. According to the Aeroflot management, the list of export cargoes is very limited - unprocessed leather supplied to S.Korea, sweets and confectionery exported to Europe and science intensive equipment supplied to Japan and the USA.
According to the head of the Pulkovo Fright Transportation department Nikolay Rodionov, currently the internal cargo flow is destined to Siberia and Far East. He also said that "transfer traffic from the foreign countries via St.-Petersburg and other Russian regions are no less important for Pulkovo". The consumer goods (household equipment, clothes, footwear) and express mail are the most demanded cargo flow for Pulkovo carriers.
According to the Volga-Dnepr press-service, the priority trade for the company is the transit from Europe to the Far East. "The consumer goods traffic from China to Europe is our most promising and dynamic market," - their press-service revealed. The air carriers' orientation on delivery from China is quite natural, taking into account the dramatically growing volume of production of licensed household equipment, clothes, footwear and consumer goods in China. According to the Volga-Dnepr press-service, the most demanded cargoes by both, consigners and consignees, are the military cargoes, consumer goods, industrial equipment and air-space equipment.
Another large carrier - Russkoye Nebo (previously known as East Line) carries out up to 50 trips a month on international and domestic lines. The major routes are to China, S.Korea, Germany, Greece and the United Arab Emirates. Russkoye Nebo carries out 23 regular flights to 11 destination points in these countries. Apart from general cargoes not requiring any specific transportation terms, the company also carries perishable cargoes, animals, unique and over-size cargoes.
No competition in the air
The Russian air freight carriers do not currently feel competition on behalf of sea and rail operators thanks to shorter delivery terms they can offer. As stated by the Volga-Dnepr press-service, the company is specializing in over-size cargoes that are hard to carry by rail due to many restricting factors, such as the distance between the tracks, bridges width, etc. The Volga-Dnepr experts estimate the Russian market of over-size and over-weight cargoes as most promising. In the 5 years to come its volume can triple to USD 1.5 bln., with further growth to USD 3 bln.
According to the national air carriers, there is no competition from foreign air lines either. The world leaders do not find the Russian market volume attractive enough to invest, with large distances and extreme weather conditions adding nothing to its appeal.
Besides, foreign air carriers are not satisfied with the national airports services quality. "Only the German Lufthansa has a regular weekly service; the rest are charter flights carried out irregularly when there is the required volume of cargoes with fixed delivery term", said an Aeroflot representative.
What disturbs air carriers
According to the transport market experts, the state of the Russian airports is currently the main factor hindering the Russian air transport development. The state of the runways and the equipment of the dispatching services is often most poor. The reason is lack of state investment in airports maintenance and development. Most airports have been receiving only 50-60% of the amount required to maintain their operation. Besides, 80% of the Russian airports still have no decent road and rail approaches. As a result, foreign air carriers refuse to have regular services to Russian airports. The Ministry of Transport officials believe all the airports having no strategic importance with the state stock of less than 50% are to be handed to investors. For example, in St.-Petersburg the former military airport Rzhevka that had grown highly worn out was handed to a private investor at the end of last year. The airport stock was purchased by the Peterburgskaya Toplivnaya Kompaniya(St.-Petersburg Fuel Company) currently carrying out a large-scale reconstruction of the airport. The new owner is going to adjust the airport for small private planes.
Besides, many airports suffer from disputes over the property between the administration and the carriers' management. In the nearest future the Ministry of Transport together with the the Federal Property Management Agency (Rosimushestvo) are to define the order of concluding leasing contracts between air carriers and airports, which will settle most of the legal disputes currently on.
Additional problems are caused by the customs officials regularly delaying cargoes to be inspected by 1-3 days. Thus in the Urals region the volume of air traffic from abroad reduced in the first half of 2005 4.8-fold as a result of unjustified delays. According to the Uralskiye Avialinii (Urals Air Lines) general director Sergey Skuratov, the company's monthly losses from the consigners abandoning air transport to deliver cargoes to China average USD 1 mln. Skuratov admitted that the reason for this is the excessive zeal of the customs officials wishing to have full control over freight transportation that led to the conflict with importers. The international trade participants have grown tired of constant delays of merchandise by the airport customs office and preferred railway transport to save costs.
Largest carriersare short of planes
Apart from outdated airports and slow customs, air transport development is impeded by shortage of modern planes. Last year Russian carriers faced a serious problem of planes deficit, while Russian airplanes plants produce no more than ten long haul lines a year. That is why most of the air carriers intend to supplement their stock by new foreign produced freight planes purchased according to leasing schemes.
Aeroflot is short of planes to carry general cargoes. "Our company would eagerly acquire 3-4 freight planes, based on the volume of orders we currently have. The problem is in Russia there are no modern planes to carry general cargoes. Indeed, at the recent air show in Le Burge Volga-Dnepr signed a contract for two IL-96, but this plane exists only in experimental models and drafts. You cannot fly it, it has no spare parts. Aeroflot just cannot take such risks", said Aeroflot's Fright Transportation department deputy director Alexey Prikhodchenko. Carriers agree that the national "Ruslan" is an ideal plane for over-weight cargoes, but is not good to carry general cargoes, forming the basic cargo flow - it is just too big for them. The freight compartments are 4.4 meters high. So if it is fully loaded with general cargoes, which are usually fragile, those at the bottom will be crashed by those on top. That is why Aeroflot intends to purchase several foreign planes that would suit the class - either Boeing 747, or MD-11.
Volga-Dnepr is also suffering from dramatic shortage of carrying facility, so it is not by chance that at the May air show in Le Burge the company signed a leasing contract with the Ilyushin Finance Co for two Il-96-400Т planes and announced an intention to purchase 30-40 freight planes An-148 in the 5 years to come. Il-96-400Т is a freight model of Il-96-300 planes family with capacity of 92 tons of cargo for 7 th.km. It has a significant shortcoming though, i.e. it will only be certified next year. Each plane will cost Volga-Dnepr the minimum of USD 55 mln., which is the plant's price without leasing payments. The first of the planes will be delivered to the customer in 2006, right after certification, the second - in early 2007. By this time Volga-Dnepr plans to form its airplanes stock, so as to become a freight "supermarket". With An-124 "Ruslan" planes the company plans to carry out charter transportation of over-size cargoes, while regular lines will be served by Boeing 747. According to the press service, the company expects to lease at least 4 American planes, while for the regular medium distance routes the Il-96-400Т will be employed. Feeder transportation will be served by Tu-204 Cargo. Besides, Volga-Dnepr and the Ilyushin Finance Co are negotiating the purchase of 30-40 of An-148 freight modification, but it is too early to speak of a definite order. So far only the passenger version of the plane is under certification. Meanwhile Volga-Dnepr is doing its best with what it has. "In the high season the company usually leases An-124 planes from the military transport aviation. And the maintenance services have to work harder to keep the planes ready for flying", commented the press service.
Pulkovo is not as straightforward in respect to the planes shortage. "For us the major problem hampering the freight traffic volume growth is the shortage of transportation containers, as the company is using freight sections of passenger planes to carry cargoes. To resolve this problem we pay special attention to cooperation with national and international air carriers in the framework of various agreements. We work not only with air transport agents, but also with other transport modes carriers both in Russia and abroad", informed the Pulkovo press-service. At the same time the company is negotiating a leasing contract for two Boeing 747 planes.
Ilya Sverdlov
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[DETAIL_TEXT] => Changes in the sector of long-distance passenger transportation are an integral part of the Programme of structural reform developed by the Government for the RF railway transport. A sequence of necessary steps to take has been outlined with the ultimate goal of creating an independent Federal passenger company separated of the state-run OAO RZD, and of its privatization thereafter. The process has already started and by now is on its way to define the level of budget subsidies.
Business Must be Core
Nowadays railway passenger transportation in Russia is implemented by OAO RZD, the single state-run company that also operates cargo transportation. Despite the fact that market reforms have been unfolding in Russia for 15 years already, so far they have had no influence on the passenger railway complex. People queuing for tickets are quite a typical example of problems yet to be solved. Another issue constantly reprimanded is trains speed that is often inadequate to the long distances people have to cover in Russia. Also, the inappropriate quality of service has always been on the agenda, especially in respect of economy class carriages.
The need for reform in this sector is quite clear to everybody today. First of all, it will make room for companies whose core business is passenger transportation. And in this case a passenger will be treated not as an irritating hindrance causing losses, but as a major asset for getting profit. This is impossible to achieve within the framework of a unified economic subject such as OAO RZD, and the developers of the Programme agreed on that from the start.
By now the Concept of long-distance passenger transportation complex reform has been worked out and approved by OAO RZD Board. This issue was also considered at the session of the Intergovernmental commission under the RF Ministry of Transport.
Stages and Terms
According to Viktor Popov, Head of the Federal Passenger Direction (FPD) of OAO RZD, this Concept envisages three stages. At the first stage, the FPD will be endowed with property. Also, its territorial structural divisions are to be founded. Starting from October 1, 2005 the Direction is planned to come into power as a full-right functional department of OAO RZD.
At the second stage, separate business-unit, or JSC with state-run stock, will be founded on the basis of FPD property complex. According to the Governmental Bill № 811, the Federal passenger company will be formed via OAO RZD re-organization by JSC separation. The company's departments will be formed on the basis of regional Directions. At present, the company is planned to start functioning in 2007 providing all the conditions are met.
The third stage envisages taking steps towards creating competition within the passenger transportation sector, and auxiliary services. It also includes transition to free pricing for competitive sectors, ensuring total financial transparency of the company, organization-legislative separation of activities, allowing private stock entering the state sector of the passenger complex. It is worth mentioning that the third stage will become a period when regional passenger companies will be established in the form of joint-stock ventures. These will operate their own trains all over the territory of Russia. Thus, they will be able to compete for the concur routes.
The Concept maintains that the state support of passenger transportation is one of the most important conditions for the Federal passenger company establishment. It should be clearly pointed out in the respective part of the Federal budget of Russia for 2007.
Property
One of the most issues in the launch of the Federal passenger company is the definition of its property complex. The Programme of structural reform approved by the RF Government Bill № 384 effective from May18, 2001 envisages the following list: passenger carriages, depots, station infrastructure not utilized for cargo transportation, railway stations, passenger economy property, part of passenger locomotives. At the same time the above-mentioned assets are controlled by the regional Directions initially formed as the Federal passenger company's departments.
At present the decision has been made to endow the company with the following property: 46 carriage depots, 332 railway stations, 25.5 thousand passenger carriages etc. General cost totals over RUR 100 bn. The staff will amount to 135 thousand people. No clear-cut decisions on locomotive haulage have been made yet. According to ОАО RZD, it is not cost-effective at least for the near future.
Today potential private carriers fear that railway stations and depots transfer into the authorized capital stock of the company can lead to discrimination of the state's company competitors in respect of gaining access to these assets. However, it is strongly believed that the upcoming passenger complex privatization and establishment of competitive territorial, federal and mixed companies (including vertically-integrated ones) authorized with the right to use ОАО RZD infrastructure all over the country can take the matter to a completely different level.
Apple of Discord
Special attention should be paid to the problem of budget subsidies, as passenger transportation is unprofitable and usually subsided from the cargo one. It is worth mentioning that this necessity is admitted by the Programme of the reform, i.e. the Government agreement has been expressed latently. The document states clearly that mechanism of passenger transportation support is defined by the Government in order to compensate for its non-profitability and perform a staged process of reducing its crossed subsiding. At the same time, the tariff policy will be adopted to the solvent population demand. The Programme also envisages different forms of subsidies that could be allocated to both, the companies operating passenger transportation and privileged categories of people as target support.
However, implementing all that is quite a different as it is necessary to calculate all the precise expenditures on passenger transportation in general and on every separate direction in the area. The currently widely used system of OAO RZD accounting cannot be considered satisfactory by the controlling authorities. It is evident that this very issue will be an apple of discord between sides, as OAO RZD tries to obtain state subsidies. No doubts the company will have to carry out great methodological and practical work on its book-keeping, with separate registration according to the types of activity. And the Government Bill№ 871 effective from December 29, 2004 obliges the company to do that.
It should be mentioned that the sums needed to compensate for OAO RZD losses are rather significant for the RF budget. According to the company's data, last year expenditures on the long-distance passenger complex amounted to RUR 92 bn. (USD3.3 bn.), while profit made only RUR 61bn. (USD2.2 bn.). To get annual subsidy worth RUR 36 bn. (USD1.3 bn.), as OAO RZD plans to do, can be quite a challenge. For the sake of comparison a new high-speed railway line construction Saint-Petersburg-Moscow (with train speed of 300 km per hour) would cost USD5-6 bn.
Nevertheless ОАО RZD believes their demands are objective. According to the data, subsidies requirement claimed by the company amounted to 0.8 eurocent per km. In the USA this figure is EUR 0.12, in Canada it is almost 14, in France - 2.5, in Germany - 6, and in the UK - 4.5.
Summing up
In general, it is obvious today that the process of passenger complex separation off ОАО RZD is of special importance to all the adjacent sides, particularly to the passenger or services customer. Another matter is that it is a quite complicated process. It may be even more difficult to accomplish than the previous OAO RZD separation off the Ministry of Railways that took place in 2003, as it destroys the familiar mechanism of the unified railway industrial complex functioning.
For example, now the head of railway (basic vertically-integrated territorial department) is totally responsible for both passenger and cargo transportation. And it is quite probable that, after the passenger complex is transferred under another company control, his personal administrative control will weaken.
However, the proper balance of market and administrative control key factors will hopefully emerge providing both, economic efficiency and adequate level of control and reliability.
Andrey Guryev
[~DETAIL_TEXT] => Changes in the sector of long-distance passenger transportation are an integral part of the Programme of structural reform developed by the Government for the RF railway transport. A sequence of necessary steps to take has been outlined with the ultimate goal of creating an independent Federal passenger company separated of the state-run OAO RZD, and of its privatization thereafter. The process has already started and by now is on its way to define the level of budget subsidies.
Business Must be Core
Nowadays railway passenger transportation in Russia is implemented by OAO RZD, the single state-run company that also operates cargo transportation. Despite the fact that market reforms have been unfolding in Russia for 15 years already, so far they have had no influence on the passenger railway complex. People queuing for tickets are quite a typical example of problems yet to be solved. Another issue constantly reprimanded is trains speed that is often inadequate to the long distances people have to cover in Russia. Also, the inappropriate quality of service has always been on the agenda, especially in respect of economy class carriages.
The need for reform in this sector is quite clear to everybody today. First of all, it will make room for companies whose core business is passenger transportation. And in this case a passenger will be treated not as an irritating hindrance causing losses, but as a major asset for getting profit. This is impossible to achieve within the framework of a unified economic subject such as OAO RZD, and the developers of the Programme agreed on that from the start.
By now the Concept of long-distance passenger transportation complex reform has been worked out and approved by OAO RZD Board. This issue was also considered at the session of the Intergovernmental commission under the RF Ministry of Transport.
Stages and Terms
According to Viktor Popov, Head of the Federal Passenger Direction (FPD) of OAO RZD, this Concept envisages three stages. At the first stage, the FPD will be endowed with property. Also, its territorial structural divisions are to be founded. Starting from October 1, 2005 the Direction is planned to come into power as a full-right functional department of OAO RZD.
At the second stage, separate business-unit, or JSC with state-run stock, will be founded on the basis of FPD property complex. According to the Governmental Bill № 811, the Federal passenger company will be formed via OAO RZD re-organization by JSC separation. The company's departments will be formed on the basis of regional Directions. At present, the company is planned to start functioning in 2007 providing all the conditions are met.
The third stage envisages taking steps towards creating competition within the passenger transportation sector, and auxiliary services. It also includes transition to free pricing for competitive sectors, ensuring total financial transparency of the company, organization-legislative separation of activities, allowing private stock entering the state sector of the passenger complex. It is worth mentioning that the third stage will become a period when regional passenger companies will be established in the form of joint-stock ventures. These will operate their own trains all over the territory of Russia. Thus, they will be able to compete for the concur routes.
The Concept maintains that the state support of passenger transportation is one of the most important conditions for the Federal passenger company establishment. It should be clearly pointed out in the respective part of the Federal budget of Russia for 2007.
Property
One of the most issues in the launch of the Federal passenger company is the definition of its property complex. The Programme of structural reform approved by the RF Government Bill № 384 effective from May18, 2001 envisages the following list: passenger carriages, depots, station infrastructure not utilized for cargo transportation, railway stations, passenger economy property, part of passenger locomotives. At the same time the above-mentioned assets are controlled by the regional Directions initially formed as the Federal passenger company's departments.
At present the decision has been made to endow the company with the following property: 46 carriage depots, 332 railway stations, 25.5 thousand passenger carriages etc. General cost totals over RUR 100 bn. The staff will amount to 135 thousand people. No clear-cut decisions on locomotive haulage have been made yet. According to ОАО RZD, it is not cost-effective at least for the near future.
Today potential private carriers fear that railway stations and depots transfer into the authorized capital stock of the company can lead to discrimination of the state's company competitors in respect of gaining access to these assets. However, it is strongly believed that the upcoming passenger complex privatization and establishment of competitive territorial, federal and mixed companies (including vertically-integrated ones) authorized with the right to use ОАО RZD infrastructure all over the country can take the matter to a completely different level.
Apple of Discord
Special attention should be paid to the problem of budget subsidies, as passenger transportation is unprofitable and usually subsided from the cargo one. It is worth mentioning that this necessity is admitted by the Programme of the reform, i.e. the Government agreement has been expressed latently. The document states clearly that mechanism of passenger transportation support is defined by the Government in order to compensate for its non-profitability and perform a staged process of reducing its crossed subsiding. At the same time, the tariff policy will be adopted to the solvent population demand. The Programme also envisages different forms of subsidies that could be allocated to both, the companies operating passenger transportation and privileged categories of people as target support.
However, implementing all that is quite a different as it is necessary to calculate all the precise expenditures on passenger transportation in general and on every separate direction in the area. The currently widely used system of OAO RZD accounting cannot be considered satisfactory by the controlling authorities. It is evident that this very issue will be an apple of discord between sides, as OAO RZD tries to obtain state subsidies. No doubts the company will have to carry out great methodological and practical work on its book-keeping, with separate registration according to the types of activity. And the Government Bill№ 871 effective from December 29, 2004 obliges the company to do that.
It should be mentioned that the sums needed to compensate for OAO RZD losses are rather significant for the RF budget. According to the company's data, last year expenditures on the long-distance passenger complex amounted to RUR 92 bn. (USD3.3 bn.), while profit made only RUR 61bn. (USD2.2 bn.). To get annual subsidy worth RUR 36 bn. (USD1.3 bn.), as OAO RZD plans to do, can be quite a challenge. For the sake of comparison a new high-speed railway line construction Saint-Petersburg-Moscow (with train speed of 300 km per hour) would cost USD5-6 bn.
Nevertheless ОАО RZD believes their demands are objective. According to the data, subsidies requirement claimed by the company amounted to 0.8 eurocent per km. In the USA this figure is EUR 0.12, in Canada it is almost 14, in France - 2.5, in Germany - 6, and in the UK - 4.5.
Summing up
In general, it is obvious today that the process of passenger complex separation off ОАО RZD is of special importance to all the adjacent sides, particularly to the passenger or services customer. Another matter is that it is a quite complicated process. It may be even more difficult to accomplish than the previous OAO RZD separation off the Ministry of Railways that took place in 2003, as it destroys the familiar mechanism of the unified railway industrial complex functioning.
For example, now the head of railway (basic vertically-integrated territorial department) is totally responsible for both passenger and cargo transportation. And it is quite probable that, after the passenger complex is transferred under another company control, his personal administrative control will weaken.
However, the proper balance of market and administrative control key factors will hopefully emerge providing both, economic efficiency and adequate level of control and reliability.
Andrey Guryev
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[DETAIL_TEXT] => Changes in the sector of long-distance passenger transportation are an integral part of the Programme of structural reform developed by the Government for the RF railway transport. A sequence of necessary steps to take has been outlined with the ultimate goal of creating an independent Federal passenger company separated of the state-run OAO RZD, and of its privatization thereafter. The process has already started and by now is on its way to define the level of budget subsidies.
Business Must be Core
Nowadays railway passenger transportation in Russia is implemented by OAO RZD, the single state-run company that also operates cargo transportation. Despite the fact that market reforms have been unfolding in Russia for 15 years already, so far they have had no influence on the passenger railway complex. People queuing for tickets are quite a typical example of problems yet to be solved. Another issue constantly reprimanded is trains speed that is often inadequate to the long distances people have to cover in Russia. Also, the inappropriate quality of service has always been on the agenda, especially in respect of economy class carriages.
The need for reform in this sector is quite clear to everybody today. First of all, it will make room for companies whose core business is passenger transportation. And in this case a passenger will be treated not as an irritating hindrance causing losses, but as a major asset for getting profit. This is impossible to achieve within the framework of a unified economic subject such as OAO RZD, and the developers of the Programme agreed on that from the start.
By now the Concept of long-distance passenger transportation complex reform has been worked out and approved by OAO RZD Board. This issue was also considered at the session of the Intergovernmental commission under the RF Ministry of Transport.
Stages and Terms
According to Viktor Popov, Head of the Federal Passenger Direction (FPD) of OAO RZD, this Concept envisages three stages. At the first stage, the FPD will be endowed with property. Also, its territorial structural divisions are to be founded. Starting from October 1, 2005 the Direction is planned to come into power as a full-right functional department of OAO RZD.
At the second stage, separate business-unit, or JSC with state-run stock, will be founded on the basis of FPD property complex. According to the Governmental Bill № 811, the Federal passenger company will be formed via OAO RZD re-organization by JSC separation. The company's departments will be formed on the basis of regional Directions. At present, the company is planned to start functioning in 2007 providing all the conditions are met.
The third stage envisages taking steps towards creating competition within the passenger transportation sector, and auxiliary services. It also includes transition to free pricing for competitive sectors, ensuring total financial transparency of the company, organization-legislative separation of activities, allowing private stock entering the state sector of the passenger complex. It is worth mentioning that the third stage will become a period when regional passenger companies will be established in the form of joint-stock ventures. These will operate their own trains all over the territory of Russia. Thus, they will be able to compete for the concur routes.
The Concept maintains that the state support of passenger transportation is one of the most important conditions for the Federal passenger company establishment. It should be clearly pointed out in the respective part of the Federal budget of Russia for 2007.
Property
One of the most issues in the launch of the Federal passenger company is the definition of its property complex. The Programme of structural reform approved by the RF Government Bill № 384 effective from May18, 2001 envisages the following list: passenger carriages, depots, station infrastructure not utilized for cargo transportation, railway stations, passenger economy property, part of passenger locomotives. At the same time the above-mentioned assets are controlled by the regional Directions initially formed as the Federal passenger company's departments.
At present the decision has been made to endow the company with the following property: 46 carriage depots, 332 railway stations, 25.5 thousand passenger carriages etc. General cost totals over RUR 100 bn. The staff will amount to 135 thousand people. No clear-cut decisions on locomotive haulage have been made yet. According to ОАО RZD, it is not cost-effective at least for the near future.
Today potential private carriers fear that railway stations and depots transfer into the authorized capital stock of the company can lead to discrimination of the state's company competitors in respect of gaining access to these assets. However, it is strongly believed that the upcoming passenger complex privatization and establishment of competitive territorial, federal and mixed companies (including vertically-integrated ones) authorized with the right to use ОАО RZD infrastructure all over the country can take the matter to a completely different level.
Apple of Discord
Special attention should be paid to the problem of budget subsidies, as passenger transportation is unprofitable and usually subsided from the cargo one. It is worth mentioning that this necessity is admitted by the Programme of the reform, i.e. the Government agreement has been expressed latently. The document states clearly that mechanism of passenger transportation support is defined by the Government in order to compensate for its non-profitability and perform a staged process of reducing its crossed subsiding. At the same time, the tariff policy will be adopted to the solvent population demand. The Programme also envisages different forms of subsidies that could be allocated to both, the companies operating passenger transportation and privileged categories of people as target support.
However, implementing all that is quite a different as it is necessary to calculate all the precise expenditures on passenger transportation in general and on every separate direction in the area. The currently widely used system of OAO RZD accounting cannot be considered satisfactory by the controlling authorities. It is evident that this very issue will be an apple of discord between sides, as OAO RZD tries to obtain state subsidies. No doubts the company will have to carry out great methodological and practical work on its book-keeping, with separate registration according to the types of activity. And the Government Bill№ 871 effective from December 29, 2004 obliges the company to do that.
It should be mentioned that the sums needed to compensate for OAO RZD losses are rather significant for the RF budget. According to the company's data, last year expenditures on the long-distance passenger complex amounted to RUR 92 bn. (USD3.3 bn.), while profit made only RUR 61bn. (USD2.2 bn.). To get annual subsidy worth RUR 36 bn. (USD1.3 bn.), as OAO RZD plans to do, can be quite a challenge. For the sake of comparison a new high-speed railway line construction Saint-Petersburg-Moscow (with train speed of 300 km per hour) would cost USD5-6 bn.
Nevertheless ОАО RZD believes their demands are objective. According to the data, subsidies requirement claimed by the company amounted to 0.8 eurocent per km. In the USA this figure is EUR 0.12, in Canada it is almost 14, in France - 2.5, in Germany - 6, and in the UK - 4.5.
Summing up
In general, it is obvious today that the process of passenger complex separation off ОАО RZD is of special importance to all the adjacent sides, particularly to the passenger or services customer. Another matter is that it is a quite complicated process. It may be even more difficult to accomplish than the previous OAO RZD separation off the Ministry of Railways that took place in 2003, as it destroys the familiar mechanism of the unified railway industrial complex functioning.
For example, now the head of railway (basic vertically-integrated territorial department) is totally responsible for both passenger and cargo transportation. And it is quite probable that, after the passenger complex is transferred under another company control, his personal administrative control will weaken.
However, the proper balance of market and administrative control key factors will hopefully emerge providing both, economic efficiency and adequate level of control and reliability.
Andrey Guryev
[~DETAIL_TEXT] => Changes in the sector of long-distance passenger transportation are an integral part of the Programme of structural reform developed by the Government for the RF railway transport. A sequence of necessary steps to take has been outlined with the ultimate goal of creating an independent Federal passenger company separated of the state-run OAO RZD, and of its privatization thereafter. The process has already started and by now is on its way to define the level of budget subsidies.
Business Must be Core
Nowadays railway passenger transportation in Russia is implemented by OAO RZD, the single state-run company that also operates cargo transportation. Despite the fact that market reforms have been unfolding in Russia for 15 years already, so far they have had no influence on the passenger railway complex. People queuing for tickets are quite a typical example of problems yet to be solved. Another issue constantly reprimanded is trains speed that is often inadequate to the long distances people have to cover in Russia. Also, the inappropriate quality of service has always been on the agenda, especially in respect of economy class carriages.
The need for reform in this sector is quite clear to everybody today. First of all, it will make room for companies whose core business is passenger transportation. And in this case a passenger will be treated not as an irritating hindrance causing losses, but as a major asset for getting profit. This is impossible to achieve within the framework of a unified economic subject such as OAO RZD, and the developers of the Programme agreed on that from the start.
By now the Concept of long-distance passenger transportation complex reform has been worked out and approved by OAO RZD Board. This issue was also considered at the session of the Intergovernmental commission under the RF Ministry of Transport.
Stages and Terms
According to Viktor Popov, Head of the Federal Passenger Direction (FPD) of OAO RZD, this Concept envisages three stages. At the first stage, the FPD will be endowed with property. Also, its territorial structural divisions are to be founded. Starting from October 1, 2005 the Direction is planned to come into power as a full-right functional department of OAO RZD.
At the second stage, separate business-unit, or JSC with state-run stock, will be founded on the basis of FPD property complex. According to the Governmental Bill № 811, the Federal passenger company will be formed via OAO RZD re-organization by JSC separation. The company's departments will be formed on the basis of regional Directions. At present, the company is planned to start functioning in 2007 providing all the conditions are met.
The third stage envisages taking steps towards creating competition within the passenger transportation sector, and auxiliary services. It also includes transition to free pricing for competitive sectors, ensuring total financial transparency of the company, organization-legislative separation of activities, allowing private stock entering the state sector of the passenger complex. It is worth mentioning that the third stage will become a period when regional passenger companies will be established in the form of joint-stock ventures. These will operate their own trains all over the territory of Russia. Thus, they will be able to compete for the concur routes.
The Concept maintains that the state support of passenger transportation is one of the most important conditions for the Federal passenger company establishment. It should be clearly pointed out in the respective part of the Federal budget of Russia for 2007.
Property
One of the most issues in the launch of the Federal passenger company is the definition of its property complex. The Programme of structural reform approved by the RF Government Bill № 384 effective from May18, 2001 envisages the following list: passenger carriages, depots, station infrastructure not utilized for cargo transportation, railway stations, passenger economy property, part of passenger locomotives. At the same time the above-mentioned assets are controlled by the regional Directions initially formed as the Federal passenger company's departments.
At present the decision has been made to endow the company with the following property: 46 carriage depots, 332 railway stations, 25.5 thousand passenger carriages etc. General cost totals over RUR 100 bn. The staff will amount to 135 thousand people. No clear-cut decisions on locomotive haulage have been made yet. According to ОАО RZD, it is not cost-effective at least for the near future.
Today potential private carriers fear that railway stations and depots transfer into the authorized capital stock of the company can lead to discrimination of the state's company competitors in respect of gaining access to these assets. However, it is strongly believed that the upcoming passenger complex privatization and establishment of competitive territorial, federal and mixed companies (including vertically-integrated ones) authorized with the right to use ОАО RZD infrastructure all over the country can take the matter to a completely different level.
Apple of Discord
Special attention should be paid to the problem of budget subsidies, as passenger transportation is unprofitable and usually subsided from the cargo one. It is worth mentioning that this necessity is admitted by the Programme of the reform, i.e. the Government agreement has been expressed latently. The document states clearly that mechanism of passenger transportation support is defined by the Government in order to compensate for its non-profitability and perform a staged process of reducing its crossed subsiding. At the same time, the tariff policy will be adopted to the solvent population demand. The Programme also envisages different forms of subsidies that could be allocated to both, the companies operating passenger transportation and privileged categories of people as target support.
However, implementing all that is quite a different as it is necessary to calculate all the precise expenditures on passenger transportation in general and on every separate direction in the area. The currently widely used system of OAO RZD accounting cannot be considered satisfactory by the controlling authorities. It is evident that this very issue will be an apple of discord between sides, as OAO RZD tries to obtain state subsidies. No doubts the company will have to carry out great methodological and practical work on its book-keeping, with separate registration according to the types of activity. And the Government Bill№ 871 effective from December 29, 2004 obliges the company to do that.
It should be mentioned that the sums needed to compensate for OAO RZD losses are rather significant for the RF budget. According to the company's data, last year expenditures on the long-distance passenger complex amounted to RUR 92 bn. (USD3.3 bn.), while profit made only RUR 61bn. (USD2.2 bn.). To get annual subsidy worth RUR 36 bn. (USD1.3 bn.), as OAO RZD plans to do, can be quite a challenge. For the sake of comparison a new high-speed railway line construction Saint-Petersburg-Moscow (with train speed of 300 km per hour) would cost USD5-6 bn.
Nevertheless ОАО RZD believes their demands are objective. According to the data, subsidies requirement claimed by the company amounted to 0.8 eurocent per km. In the USA this figure is EUR 0.12, in Canada it is almost 14, in France - 2.5, in Germany - 6, and in the UK - 4.5.
Summing up
In general, it is obvious today that the process of passenger complex separation off ОАО RZD is of special importance to all the adjacent sides, particularly to the passenger or services customer. Another matter is that it is a quite complicated process. It may be even more difficult to accomplish than the previous OAO RZD separation off the Ministry of Railways that took place in 2003, as it destroys the familiar mechanism of the unified railway industrial complex functioning.
For example, now the head of railway (basic vertically-integrated territorial department) is totally responsible for both passenger and cargo transportation. And it is quite probable that, after the passenger complex is transferred under another company control, his personal administrative control will weaken.
However, the proper balance of market and administrative control key factors will hopefully emerge providing both, economic efficiency and adequate level of control and reliability.
Andrey Guryev
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[DETAIL_TEXT] => According to some experts, major Far-Eastern container terminals - Vostochny International Container Service CJSC (VICS) and Vladivostok Container Terminal JSC (VCT) - can face a serious competition with the Chinese carriers in the near future.
Competitors from China
Nowadays the Chinese port Dalian is the final point of the railway that used to be called the Chinese Eastern Railway. The railway is mainly used for the transportation of imported oil, however, there are also reserves for container transportation. If China transports containerized cargo to Irkutsk Region, Chita Region and to the Russian Far East along the railway, it will completely supply Siberia with the goods that are now transported by sea.
There is no doubt that China will not face the problem of lack of cargo to transport. According to the last year's results, the Chinese container terminals (without taking the river ones into account) handled 60 million TEU (including Hong Kong - 22 million TEU, Shanghai - 15 million TEU, Dalian - 2 million TEU), while the Russian Far Eastern container terminals handled only 398.96 TEU. Naturally, there will be enough freight for the Russian terminals as well for the containerized cargo transportation market is growing fast. In particular, according to 2004 results, in Russia it grew by 25% or 2.09 million TEU (taking into account the international container transportation along the railway), and in 2005 it is to make no less than 500 thousand TEU (17-18%).
Hoping for Leader
Today VICS is sure about its future. Last year the company handled its millionth container. "Perhaps, this is not the highest result comparing to the Asian ports, but for our terminal it is a progress showing that we have gone through the economic crisis without losses. Taking into account the annual growth of more than 50%, our operation results impress and prove that the company is developing in the correct way. It also shows that we can offer the same service conditions, as those of the global leading ports, having serviced 2,115 vessels, working 24 hours a day, 365 days a year. The existing capacity enables us to handle over 200 thousand TEU annually", say the authorities of the terminal.
It is worth noting that the company is one of the largest transport companies of the Far East. It stands after such giants as the Far Eastern Shipping Company, Vostochny Port OJSC, the port of Vladivostok etc., the fact that once again highlights the company's important role in the region. In the framework of the Russian transport strategy, VICS pays much attention to the development and increase of the container throughput between Europe and Asia using the Transsiberian Railway.
Advanced Infrastructure
The loading equipment of the terminal fulfills all the modern technical requirements and suits the local climate. Specialized cranes for container handling, made in Japan, enable to load/unload containers from vessels or trains as soon as possible, since the cranes move along rail accesses.
In the framework of the company's programme of technical re-equipment and application of new technological handling schemes, the terminal continues to improve and renew its technical base. During the non-stop development of the terminal's infrastructure, a lot of money is being invested in the constructions' repair and modernization of the equipment.
The efficient planning of the terminal's work is possible due to modern software support. All the information about the containers delivered to and from the terminal can be found in the data base. It is available for all the users at the homepage of the company. Any consignor or consignee can check up the status of his/her container any time he/she wants, wherever he/she is. To increase the efficiency and to improve the control and logistic processes management, the dockers will soon be using portables based on the wireless communication, with a possibility of the local net distant use to enter the data into the data base.
International Standards
The VICS container terminal is certificated by the Federal State Service "The Service of Sea Safety" of the RF Ministry of Transport. This certificate confirms the terminal's conformance to the standards of the International Ship and Port Facility Security Code that came into force on July 1, 2004. It is worth noting that, VICS is one of the first companies in the Vostochny port, who got the certificate. The introduced plan of security and safety of the terminal will enable to improve the cooperation with vessels and port services aimed at preventing security threats in the framework of the standardized and logical order of actions, including the exchange of the data required, adopting methods of situation assessment, and guaranteeing the application of required safety measures. To improve the level of the terminal's stability, a number of the VICS's staff have successfully graduated from the International Center of Staff Training, in accordance with the requirements of the International Ship and Port Facility Security Code, and obtained port officials certificates to be held responsible for the security in accordance with the Code. The VICS CJSC plan of security of was approved by the Ministry of Transport of the Russian Federation and got registration number 0046/PС from June 22, 2004. The terminal received international code №1402.
Olesya Angelova
[~DETAIL_TEXT] => According to some experts, major Far-Eastern container terminals - Vostochny International Container Service CJSC (VICS) and Vladivostok Container Terminal JSC (VCT) - can face a serious competition with the Chinese carriers in the near future.
Competitors from China
Nowadays the Chinese port Dalian is the final point of the railway that used to be called the Chinese Eastern Railway. The railway is mainly used for the transportation of imported oil, however, there are also reserves for container transportation. If China transports containerized cargo to Irkutsk Region, Chita Region and to the Russian Far East along the railway, it will completely supply Siberia with the goods that are now transported by sea.
There is no doubt that China will not face the problem of lack of cargo to transport. According to the last year's results, the Chinese container terminals (without taking the river ones into account) handled 60 million TEU (including Hong Kong - 22 million TEU, Shanghai - 15 million TEU, Dalian - 2 million TEU), while the Russian Far Eastern container terminals handled only 398.96 TEU. Naturally, there will be enough freight for the Russian terminals as well for the containerized cargo transportation market is growing fast. In particular, according to 2004 results, in Russia it grew by 25% or 2.09 million TEU (taking into account the international container transportation along the railway), and in 2005 it is to make no less than 500 thousand TEU (17-18%).
Hoping for Leader
Today VICS is sure about its future. Last year the company handled its millionth container. "Perhaps, this is not the highest result comparing to the Asian ports, but for our terminal it is a progress showing that we have gone through the economic crisis without losses. Taking into account the annual growth of more than 50%, our operation results impress and prove that the company is developing in the correct way. It also shows that we can offer the same service conditions, as those of the global leading ports, having serviced 2,115 vessels, working 24 hours a day, 365 days a year. The existing capacity enables us to handle over 200 thousand TEU annually", say the authorities of the terminal.
It is worth noting that the company is one of the largest transport companies of the Far East. It stands after such giants as the Far Eastern Shipping Company, Vostochny Port OJSC, the port of Vladivostok etc., the fact that once again highlights the company's important role in the region. In the framework of the Russian transport strategy, VICS pays much attention to the development and increase of the container throughput between Europe and Asia using the Transsiberian Railway.
Advanced Infrastructure
The loading equipment of the terminal fulfills all the modern technical requirements and suits the local climate. Specialized cranes for container handling, made in Japan, enable to load/unload containers from vessels or trains as soon as possible, since the cranes move along rail accesses.
In the framework of the company's programme of technical re-equipment and application of new technological handling schemes, the terminal continues to improve and renew its technical base. During the non-stop development of the terminal's infrastructure, a lot of money is being invested in the constructions' repair and modernization of the equipment.
The efficient planning of the terminal's work is possible due to modern software support. All the information about the containers delivered to and from the terminal can be found in the data base. It is available for all the users at the homepage of the company. Any consignor or consignee can check up the status of his/her container any time he/she wants, wherever he/she is. To increase the efficiency and to improve the control and logistic processes management, the dockers will soon be using portables based on the wireless communication, with a possibility of the local net distant use to enter the data into the data base.
International Standards
The VICS container terminal is certificated by the Federal State Service "The Service of Sea Safety" of the RF Ministry of Transport. This certificate confirms the terminal's conformance to the standards of the International Ship and Port Facility Security Code that came into force on July 1, 2004. It is worth noting that, VICS is one of the first companies in the Vostochny port, who got the certificate. The introduced plan of security and safety of the terminal will enable to improve the cooperation with vessels and port services aimed at preventing security threats in the framework of the standardized and logical order of actions, including the exchange of the data required, adopting methods of situation assessment, and guaranteeing the application of required safety measures. To improve the level of the terminal's stability, a number of the VICS's staff have successfully graduated from the International Center of Staff Training, in accordance with the requirements of the International Ship and Port Facility Security Code, and obtained port officials certificates to be held responsible for the security in accordance with the Code. The VICS CJSC plan of security of was approved by the Ministry of Transport of the Russian Federation and got registration number 0046/PС from June 22, 2004. The terminal received international code №1402.
Olesya Angelova
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[DETAIL_TEXT] => According to some experts, major Far-Eastern container terminals - Vostochny International Container Service CJSC (VICS) and Vladivostok Container Terminal JSC (VCT) - can face a serious competition with the Chinese carriers in the near future.
Competitors from China
Nowadays the Chinese port Dalian is the final point of the railway that used to be called the Chinese Eastern Railway. The railway is mainly used for the transportation of imported oil, however, there are also reserves for container transportation. If China transports containerized cargo to Irkutsk Region, Chita Region and to the Russian Far East along the railway, it will completely supply Siberia with the goods that are now transported by sea.
There is no doubt that China will not face the problem of lack of cargo to transport. According to the last year's results, the Chinese container terminals (without taking the river ones into account) handled 60 million TEU (including Hong Kong - 22 million TEU, Shanghai - 15 million TEU, Dalian - 2 million TEU), while the Russian Far Eastern container terminals handled only 398.96 TEU. Naturally, there will be enough freight for the Russian terminals as well for the containerized cargo transportation market is growing fast. In particular, according to 2004 results, in Russia it grew by 25% or 2.09 million TEU (taking into account the international container transportation along the railway), and in 2005 it is to make no less than 500 thousand TEU (17-18%).
Hoping for Leader
Today VICS is sure about its future. Last year the company handled its millionth container. "Perhaps, this is not the highest result comparing to the Asian ports, but for our terminal it is a progress showing that we have gone through the economic crisis without losses. Taking into account the annual growth of more than 50%, our operation results impress and prove that the company is developing in the correct way. It also shows that we can offer the same service conditions, as those of the global leading ports, having serviced 2,115 vessels, working 24 hours a day, 365 days a year. The existing capacity enables us to handle over 200 thousand TEU annually", say the authorities of the terminal.
It is worth noting that the company is one of the largest transport companies of the Far East. It stands after such giants as the Far Eastern Shipping Company, Vostochny Port OJSC, the port of Vladivostok etc., the fact that once again highlights the company's important role in the region. In the framework of the Russian transport strategy, VICS pays much attention to the development and increase of the container throughput between Europe and Asia using the Transsiberian Railway.
Advanced Infrastructure
The loading equipment of the terminal fulfills all the modern technical requirements and suits the local climate. Specialized cranes for container handling, made in Japan, enable to load/unload containers from vessels or trains as soon as possible, since the cranes move along rail accesses.
In the framework of the company's programme of technical re-equipment and application of new technological handling schemes, the terminal continues to improve and renew its technical base. During the non-stop development of the terminal's infrastructure, a lot of money is being invested in the constructions' repair and modernization of the equipment.
The efficient planning of the terminal's work is possible due to modern software support. All the information about the containers delivered to and from the terminal can be found in the data base. It is available for all the users at the homepage of the company. Any consignor or consignee can check up the status of his/her container any time he/she wants, wherever he/she is. To increase the efficiency and to improve the control and logistic processes management, the dockers will soon be using portables based on the wireless communication, with a possibility of the local net distant use to enter the data into the data base.
International Standards
The VICS container terminal is certificated by the Federal State Service "The Service of Sea Safety" of the RF Ministry of Transport. This certificate confirms the terminal's conformance to the standards of the International Ship and Port Facility Security Code that came into force on July 1, 2004. It is worth noting that, VICS is one of the first companies in the Vostochny port, who got the certificate. The introduced plan of security and safety of the terminal will enable to improve the cooperation with vessels and port services aimed at preventing security threats in the framework of the standardized and logical order of actions, including the exchange of the data required, adopting methods of situation assessment, and guaranteeing the application of required safety measures. To improve the level of the terminal's stability, a number of the VICS's staff have successfully graduated from the International Center of Staff Training, in accordance with the requirements of the International Ship and Port Facility Security Code, and obtained port officials certificates to be held responsible for the security in accordance with the Code. The VICS CJSC plan of security of was approved by the Ministry of Transport of the Russian Federation and got registration number 0046/PС from June 22, 2004. The terminal received international code №1402.
Olesya Angelova
[~DETAIL_TEXT] => According to some experts, major Far-Eastern container terminals - Vostochny International Container Service CJSC (VICS) and Vladivostok Container Terminal JSC (VCT) - can face a serious competition with the Chinese carriers in the near future.
Competitors from China
Nowadays the Chinese port Dalian is the final point of the railway that used to be called the Chinese Eastern Railway. The railway is mainly used for the transportation of imported oil, however, there are also reserves for container transportation. If China transports containerized cargo to Irkutsk Region, Chita Region and to the Russian Far East along the railway, it will completely supply Siberia with the goods that are now transported by sea.
There is no doubt that China will not face the problem of lack of cargo to transport. According to the last year's results, the Chinese container terminals (without taking the river ones into account) handled 60 million TEU (including Hong Kong - 22 million TEU, Shanghai - 15 million TEU, Dalian - 2 million TEU), while the Russian Far Eastern container terminals handled only 398.96 TEU. Naturally, there will be enough freight for the Russian terminals as well for the containerized cargo transportation market is growing fast. In particular, according to 2004 results, in Russia it grew by 25% or 2.09 million TEU (taking into account the international container transportation along the railway), and in 2005 it is to make no less than 500 thousand TEU (17-18%).
Hoping for Leader
Today VICS is sure about its future. Last year the company handled its millionth container. "Perhaps, this is not the highest result comparing to the Asian ports, but for our terminal it is a progress showing that we have gone through the economic crisis without losses. Taking into account the annual growth of more than 50%, our operation results impress and prove that the company is developing in the correct way. It also shows that we can offer the same service conditions, as those of the global leading ports, having serviced 2,115 vessels, working 24 hours a day, 365 days a year. The existing capacity enables us to handle over 200 thousand TEU annually", say the authorities of the terminal.
It is worth noting that the company is one of the largest transport companies of the Far East. It stands after such giants as the Far Eastern Shipping Company, Vostochny Port OJSC, the port of Vladivostok etc., the fact that once again highlights the company's important role in the region. In the framework of the Russian transport strategy, VICS pays much attention to the development and increase of the container throughput between Europe and Asia using the Transsiberian Railway.
Advanced Infrastructure
The loading equipment of the terminal fulfills all the modern technical requirements and suits the local climate. Specialized cranes for container handling, made in Japan, enable to load/unload containers from vessels or trains as soon as possible, since the cranes move along rail accesses.
In the framework of the company's programme of technical re-equipment and application of new technological handling schemes, the terminal continues to improve and renew its technical base. During the non-stop development of the terminal's infrastructure, a lot of money is being invested in the constructions' repair and modernization of the equipment.
The efficient planning of the terminal's work is possible due to modern software support. All the information about the containers delivered to and from the terminal can be found in the data base. It is available for all the users at the homepage of the company. Any consignor or consignee can check up the status of his/her container any time he/she wants, wherever he/she is. To increase the efficiency and to improve the control and logistic processes management, the dockers will soon be using portables based on the wireless communication, with a possibility of the local net distant use to enter the data into the data base.
International Standards
The VICS container terminal is certificated by the Federal State Service "The Service of Sea Safety" of the RF Ministry of Transport. This certificate confirms the terminal's conformance to the standards of the International Ship and Port Facility Security Code that came into force on July 1, 2004. It is worth noting that, VICS is one of the first companies in the Vostochny port, who got the certificate. The introduced plan of security and safety of the terminal will enable to improve the cooperation with vessels and port services aimed at preventing security threats in the framework of the standardized and logical order of actions, including the exchange of the data required, adopting methods of situation assessment, and guaranteeing the application of required safety measures. To improve the level of the terminal's stability, a number of the VICS's staff have successfully graduated from the International Center of Staff Training, in accordance with the requirements of the International Ship and Port Facility Security Code, and obtained port officials certificates to be held responsible for the security in accordance with the Code. The VICS CJSC plan of security of was approved by the Ministry of Transport of the Russian Federation and got registration number 0046/PС from June 22, 2004. The terminal received international code №1402.
Olesya Angelova
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[DETAIL_TEXT] => In March 2005 the Mongolian Vector block train rose to a new level which allows to provide regular container transportation in both directions between Asia and Europe using the Transsibirskaya (Transsibirean) railway. The realization of such an ambitious project as route extension to China became possible due to joint efforts of 7 companies-operators, organizers and participants of the Mongolian Vector route.
STARTING-POINT
The combination of Russia's advantageous geographical location, i.e. that of the link between Asia and Europe, and container transportation, the most modern and economically profitable way of cargo delivery, had appealed to block trains operators for a long time already. Many efforts have been made to create a transportation corridor Europe-Asia. However, in spite of the forwarders' activities aimed at cooperation with cargo owners and consignees from Europe, China and South Korea, until recently no company had managed to organize a regular dispatch of block trains in this direction. Stiff competition with shipping companies that implement extremely low freight rates on the alternative routes, on the one hand, and the problem of finding cargo flow to the East, on the other, make rail transportation largely disadvantageous.
However, taking into consideration the growing competition emerging from the ocean lines and railways of the countries sharing the transport corridors that do not cross the Russian territory, the most far-seeing companies do their business with the view of attracting extra volumes of export, import and transit cargo to railways, and aim at the integration of railways and operators' economic and technological potentials of the countries interested.
Thus, due to the joint efforts of the organizers (company Tuushin, Brest branch UP Belintertrans, ZAO Rubikon) and participants (Corporation of external economic and technical cooperation of the Huhhot road, and also such companies as Vay-say, Transa, Trade Trans and Argo-Bohemia) of the Mongolian Vector block train, the project has passed to a new level, which allows to provide regular container transportation in both directions between Asia and Europe using the Transsibirskaya (Transsibirean) railway.
On March 1, 2005, at 11.08 a.m. the first block train Mongolian Vector was sent in the East-West direction from the Huhhot station (China) standing off 465 km from the borderpass Erlian (China)-Zamyn-Uud (Mongolia). The train arrived at the Duisburg station (Germany) on March 15, 2005, at 9.11 a.m. Thus, the train consisting of 102 TEU-containers passed the territory of 6 countries (China, Mongolia, Russia, Byelorussia, Poland and Germany), 9821 km in total, in 13.92 days. , saysMr. Zorigt, the Tuushin company CEO.
DILIGENT WORK
It must be said that the route extension of the Mongolian Vector to China has been launched as early as in 2003. , says Igor Batsatsenko,ZAO Rubikon Deputy CEO.
Later, in the context of project development, a demonstrational Mongolian Vector block train was sent along the route Brest-Ulanbataar on June 15, 2004, which strictly followed the schedule coordinated by the participating railways administrations with its way time totalling 8,9 days. The train consisted of 69 TEU-containers; the route length amounted to 7340 km. The results of the Mongolian Vector demonstrational train admission and the wide resonance caused by its presentation to the railway circles in Brest at the committee on cargo transportation meeting (the meeting of the committee of the Organization of railways cooperation focused on the development of transportation within international transport corridors), in which representatives of the CIS, Europe and the Baltic railway administrations, as well as leading forwarders, participated, enabled the project participants to tackle the problem of route extension to China and form a full stock train in the direction China-Europe.
Based on the offer received by Tuushin company (Mongolia) from its partner Vay-say company (China) on August 26, 2004, a meeting regarding the Mongolian Vector block train route extension to Erlian station was held at OAO RZD. The decision was to coordinate the train traffic schedule in the section Ulanbataar-Erlian providing rolling stock supply. Following this at the meeting in Ulanbataar (September 23-28, 2004), the representatives of the Russian, the Chinese and the Mongolian railways confirmed their readiness for the cargo transportation by the Mongolian Vector train between Europe and Asia in both directions.
On February 18, 2004, at the Huhhot meeting (China), the train circulation technology was coordinated and approved. Also, through rate on container transportation was defined by the project participants. Further marketing work enabled them to form a block train and organize its departure.
ONLY ADVANCE!
By now four trains have been dispatched in the direction China-Europe. The departure frequency is one per month. The countries of destination are Germany, France, Slovakia, Romania and Byelorussia. Transit time from Huhhot to Duisburg is 15.37 days. This is with the train being transferred twice, first from narrow gauge to broad gauge (Erlian-Zamyn-Uud) and then back from broad gauge to narrow one (Brest-Malaseviche), and crossing five state boundaries following all the routine procedures.
In general, in 2005 the Mongolian Vector train transported in both directions 580 containers, and that is 38.0% up year-on-year. Transit time in the East-West direction on the route Brest-Ulanbataar was reduced by 0.39 days, in comparison with 2004, and totalled 13.75 days on average.
ESCATO UNO reacted positively to the project participants' and Mongolian railway request to organize a demonstrational Mongolian Vector train departure on the route Erlian (China)-Duisburg (Germany) on September 15, 2005. On the same day the first full-stock Mongolian Vector train will be sent in West-East direction on the route Brest-Ulanbataar-Erlian.
Olesya Angelova
[~DETAIL_TEXT] => In March 2005 the Mongolian Vector block train rose to a new level which allows to provide regular container transportation in both directions between Asia and Europe using the Transsibirskaya (Transsibirean) railway. The realization of such an ambitious project as route extension to China became possible due to joint efforts of 7 companies-operators, organizers and participants of the Mongolian Vector route.
STARTING-POINT
The combination of Russia's advantageous geographical location, i.e. that of the link between Asia and Europe, and container transportation, the most modern and economically profitable way of cargo delivery, had appealed to block trains operators for a long time already. Many efforts have been made to create a transportation corridor Europe-Asia. However, in spite of the forwarders' activities aimed at cooperation with cargo owners and consignees from Europe, China and South Korea, until recently no company had managed to organize a regular dispatch of block trains in this direction. Stiff competition with shipping companies that implement extremely low freight rates on the alternative routes, on the one hand, and the problem of finding cargo flow to the East, on the other, make rail transportation largely disadvantageous.
However, taking into consideration the growing competition emerging from the ocean lines and railways of the countries sharing the transport corridors that do not cross the Russian territory, the most far-seeing companies do their business with the view of attracting extra volumes of export, import and transit cargo to railways, and aim at the integration of railways and operators' economic and technological potentials of the countries interested.
Thus, due to the joint efforts of the organizers (company Tuushin, Brest branch UP Belintertrans, ZAO Rubikon) and participants (Corporation of external economic and technical cooperation of the Huhhot road, and also such companies as Vay-say, Transa, Trade Trans and Argo-Bohemia) of the Mongolian Vector block train, the project has passed to a new level, which allows to provide regular container transportation in both directions between Asia and Europe using the Transsibirskaya (Transsibirean) railway.
On March 1, 2005, at 11.08 a.m. the first block train Mongolian Vector was sent in the East-West direction from the Huhhot station (China) standing off 465 km from the borderpass Erlian (China)-Zamyn-Uud (Mongolia). The train arrived at the Duisburg station (Germany) on March 15, 2005, at 9.11 a.m. Thus, the train consisting of 102 TEU-containers passed the territory of 6 countries (China, Mongolia, Russia, Byelorussia, Poland and Germany), 9821 km in total, in 13.92 days. , saysMr. Zorigt, the Tuushin company CEO.
DILIGENT WORK
It must be said that the route extension of the Mongolian Vector to China has been launched as early as in 2003. , says Igor Batsatsenko,ZAO Rubikon Deputy CEO.
Later, in the context of project development, a demonstrational Mongolian Vector block train was sent along the route Brest-Ulanbataar on June 15, 2004, which strictly followed the schedule coordinated by the participating railways administrations with its way time totalling 8,9 days. The train consisted of 69 TEU-containers; the route length amounted to 7340 km. The results of the Mongolian Vector demonstrational train admission and the wide resonance caused by its presentation to the railway circles in Brest at the committee on cargo transportation meeting (the meeting of the committee of the Organization of railways cooperation focused on the development of transportation within international transport corridors), in which representatives of the CIS, Europe and the Baltic railway administrations, as well as leading forwarders, participated, enabled the project participants to tackle the problem of route extension to China and form a full stock train in the direction China-Europe.
Based on the offer received by Tuushin company (Mongolia) from its partner Vay-say company (China) on August 26, 2004, a meeting regarding the Mongolian Vector block train route extension to Erlian station was held at OAO RZD. The decision was to coordinate the train traffic schedule in the section Ulanbataar-Erlian providing rolling stock supply. Following this at the meeting in Ulanbataar (September 23-28, 2004), the representatives of the Russian, the Chinese and the Mongolian railways confirmed their readiness for the cargo transportation by the Mongolian Vector train between Europe and Asia in both directions.
On February 18, 2004, at the Huhhot meeting (China), the train circulation technology was coordinated and approved. Also, through rate on container transportation was defined by the project participants. Further marketing work enabled them to form a block train and organize its departure.
ONLY ADVANCE!
By now four trains have been dispatched in the direction China-Europe. The departure frequency is one per month. The countries of destination are Germany, France, Slovakia, Romania and Byelorussia. Transit time from Huhhot to Duisburg is 15.37 days. This is with the train being transferred twice, first from narrow gauge to broad gauge (Erlian-Zamyn-Uud) and then back from broad gauge to narrow one (Brest-Malaseviche), and crossing five state boundaries following all the routine procedures.
In general, in 2005 the Mongolian Vector train transported in both directions 580 containers, and that is 38.0% up year-on-year. Transit time in the East-West direction on the route Brest-Ulanbataar was reduced by 0.39 days, in comparison with 2004, and totalled 13.75 days on average.
ESCATO UNO reacted positively to the project participants' and Mongolian railway request to organize a demonstrational Mongolian Vector train departure on the route Erlian (China)-Duisburg (Germany) on September 15, 2005. On the same day the first full-stock Mongolian Vector train will be sent in West-East direction on the route Brest-Ulanbataar-Erlian.
Olesya Angelova
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[DETAIL_TEXT] => In March 2005 the Mongolian Vector block train rose to a new level which allows to provide regular container transportation in both directions between Asia and Europe using the Transsibirskaya (Transsibirean) railway. The realization of such an ambitious project as route extension to China became possible due to joint efforts of 7 companies-operators, organizers and participants of the Mongolian Vector route.
STARTING-POINT
The combination of Russia's advantageous geographical location, i.e. that of the link between Asia and Europe, and container transportation, the most modern and economically profitable way of cargo delivery, had appealed to block trains operators for a long time already. Many efforts have been made to create a transportation corridor Europe-Asia. However, in spite of the forwarders' activities aimed at cooperation with cargo owners and consignees from Europe, China and South Korea, until recently no company had managed to organize a regular dispatch of block trains in this direction. Stiff competition with shipping companies that implement extremely low freight rates on the alternative routes, on the one hand, and the problem of finding cargo flow to the East, on the other, make rail transportation largely disadvantageous.
However, taking into consideration the growing competition emerging from the ocean lines and railways of the countries sharing the transport corridors that do not cross the Russian territory, the most far-seeing companies do their business with the view of attracting extra volumes of export, import and transit cargo to railways, and aim at the integration of railways and operators' economic and technological potentials of the countries interested.
Thus, due to the joint efforts of the organizers (company Tuushin, Brest branch UP Belintertrans, ZAO Rubikon) and participants (Corporation of external economic and technical cooperation of the Huhhot road, and also such companies as Vay-say, Transa, Trade Trans and Argo-Bohemia) of the Mongolian Vector block train, the project has passed to a new level, which allows to provide regular container transportation in both directions between Asia and Europe using the Transsibirskaya (Transsibirean) railway.
On March 1, 2005, at 11.08 a.m. the first block train Mongolian Vector was sent in the East-West direction from the Huhhot station (China) standing off 465 km from the borderpass Erlian (China)-Zamyn-Uud (Mongolia). The train arrived at the Duisburg station (Germany) on March 15, 2005, at 9.11 a.m. Thus, the train consisting of 102 TEU-containers passed the territory of 6 countries (China, Mongolia, Russia, Byelorussia, Poland and Germany), 9821 km in total, in 13.92 days. , saysMr. Zorigt, the Tuushin company CEO.
DILIGENT WORK
It must be said that the route extension of the Mongolian Vector to China has been launched as early as in 2003. , says Igor Batsatsenko,ZAO Rubikon Deputy CEO.
Later, in the context of project development, a demonstrational Mongolian Vector block train was sent along the route Brest-Ulanbataar on June 15, 2004, which strictly followed the schedule coordinated by the participating railways administrations with its way time totalling 8,9 days. The train consisted of 69 TEU-containers; the route length amounted to 7340 km. The results of the Mongolian Vector demonstrational train admission and the wide resonance caused by its presentation to the railway circles in Brest at the committee on cargo transportation meeting (the meeting of the committee of the Organization of railways cooperation focused on the development of transportation within international transport corridors), in which representatives of the CIS, Europe and the Baltic railway administrations, as well as leading forwarders, participated, enabled the project participants to tackle the problem of route extension to China and form a full stock train in the direction China-Europe.
Based on the offer received by Tuushin company (Mongolia) from its partner Vay-say company (China) on August 26, 2004, a meeting regarding the Mongolian Vector block train route extension to Erlian station was held at OAO RZD. The decision was to coordinate the train traffic schedule in the section Ulanbataar-Erlian providing rolling stock supply. Following this at the meeting in Ulanbataar (September 23-28, 2004), the representatives of the Russian, the Chinese and the Mongolian railways confirmed their readiness for the cargo transportation by the Mongolian Vector train between Europe and Asia in both directions.
On February 18, 2004, at the Huhhot meeting (China), the train circulation technology was coordinated and approved. Also, through rate on container transportation was defined by the project participants. Further marketing work enabled them to form a block train and organize its departure.
ONLY ADVANCE!
By now four trains have been dispatched in the direction China-Europe. The departure frequency is one per month. The countries of destination are Germany, France, Slovakia, Romania and Byelorussia. Transit time from Huhhot to Duisburg is 15.37 days. This is with the train being transferred twice, first from narrow gauge to broad gauge (Erlian-Zamyn-Uud) and then back from broad gauge to narrow one (Brest-Malaseviche), and crossing five state boundaries following all the routine procedures.
In general, in 2005 the Mongolian Vector train transported in both directions 580 containers, and that is 38.0% up year-on-year. Transit time in the East-West direction on the route Brest-Ulanbataar was reduced by 0.39 days, in comparison with 2004, and totalled 13.75 days on average.
ESCATO UNO reacted positively to the project participants' and Mongolian railway request to organize a demonstrational Mongolian Vector train departure on the route Erlian (China)-Duisburg (Germany) on September 15, 2005. On the same day the first full-stock Mongolian Vector train will be sent in West-East direction on the route Brest-Ulanbataar-Erlian.
Olesya Angelova
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STARTING-POINT
The combination of Russia's advantageous geographical location, i.e. that of the link between Asia and Europe, and container transportation, the most modern and economically profitable way of cargo delivery, had appealed to block trains operators for a long time already. Many efforts have been made to create a transportation corridor Europe-Asia. However, in spite of the forwarders' activities aimed at cooperation with cargo owners and consignees from Europe, China and South Korea, until recently no company had managed to organize a regular dispatch of block trains in this direction. Stiff competition with shipping companies that implement extremely low freight rates on the alternative routes, on the one hand, and the problem of finding cargo flow to the East, on the other, make rail transportation largely disadvantageous.
However, taking into consideration the growing competition emerging from the ocean lines and railways of the countries sharing the transport corridors that do not cross the Russian territory, the most far-seeing companies do their business with the view of attracting extra volumes of export, import and transit cargo to railways, and aim at the integration of railways and operators' economic and technological potentials of the countries interested.
Thus, due to the joint efforts of the organizers (company Tuushin, Brest branch UP Belintertrans, ZAO Rubikon) and participants (Corporation of external economic and technical cooperation of the Huhhot road, and also such companies as Vay-say, Transa, Trade Trans and Argo-Bohemia) of the Mongolian Vector block train, the project has passed to a new level, which allows to provide regular container transportation in both directions between Asia and Europe using the Transsibirskaya (Transsibirean) railway.
On March 1, 2005, at 11.08 a.m. the first block train Mongolian Vector was sent in the East-West direction from the Huhhot station (China) standing off 465 km from the borderpass Erlian (China)-Zamyn-Uud (Mongolia). The train arrived at the Duisburg station (Germany) on March 15, 2005, at 9.11 a.m. Thus, the train consisting of 102 TEU-containers passed the territory of 6 countries (China, Mongolia, Russia, Byelorussia, Poland and Germany), 9821 km in total, in 13.92 days. , saysMr. Zorigt, the Tuushin company CEO.
DILIGENT WORK
It must be said that the route extension of the Mongolian Vector to China has been launched as early as in 2003. , says Igor Batsatsenko,ZAO Rubikon Deputy CEO.
Later, in the context of project development, a demonstrational Mongolian Vector block train was sent along the route Brest-Ulanbataar on June 15, 2004, which strictly followed the schedule coordinated by the participating railways administrations with its way time totalling 8,9 days. The train consisted of 69 TEU-containers; the route length amounted to 7340 km. The results of the Mongolian Vector demonstrational train admission and the wide resonance caused by its presentation to the railway circles in Brest at the committee on cargo transportation meeting (the meeting of the committee of the Organization of railways cooperation focused on the development of transportation within international transport corridors), in which representatives of the CIS, Europe and the Baltic railway administrations, as well as leading forwarders, participated, enabled the project participants to tackle the problem of route extension to China and form a full stock train in the direction China-Europe.
Based on the offer received by Tuushin company (Mongolia) from its partner Vay-say company (China) on August 26, 2004, a meeting regarding the Mongolian Vector block train route extension to Erlian station was held at OAO RZD. The decision was to coordinate the train traffic schedule in the section Ulanbataar-Erlian providing rolling stock supply. Following this at the meeting in Ulanbataar (September 23-28, 2004), the representatives of the Russian, the Chinese and the Mongolian railways confirmed their readiness for the cargo transportation by the Mongolian Vector train between Europe and Asia in both directions.
On February 18, 2004, at the Huhhot meeting (China), the train circulation technology was coordinated and approved. Also, through rate on container transportation was defined by the project participants. Further marketing work enabled them to form a block train and organize its departure.
ONLY ADVANCE!
By now four trains have been dispatched in the direction China-Europe. The departure frequency is one per month. The countries of destination are Germany, France, Slovakia, Romania and Byelorussia. Transit time from Huhhot to Duisburg is 15.37 days. This is with the train being transferred twice, first from narrow gauge to broad gauge (Erlian-Zamyn-Uud) and then back from broad gauge to narrow one (Brest-Malaseviche), and crossing five state boundaries following all the routine procedures.
In general, in 2005 the Mongolian Vector train transported in both directions 580 containers, and that is 38.0% up year-on-year. Transit time in the East-West direction on the route Brest-Ulanbataar was reduced by 0.39 days, in comparison with 2004, and totalled 13.75 days on average.
ESCATO UNO reacted positively to the project participants' and Mongolian railway request to organize a demonstrational Mongolian Vector train departure on the route Erlian (China)-Duisburg (Germany) on September 15, 2005. On the same day the first full-stock Mongolian Vector train will be sent in West-East direction on the route Brest-Ulanbataar-Erlian.
Olesya Angelova
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[DETAIL_TEXT] => The Transsiberian Railway (Transsib) is given a top priority in the Russian transit potential development. In order to make the route competitive and attractive much was done by the state, professional organizations, operators and carriers in the last decade. However, there are still measures to be taken urgently to assist the country's succession in the global market.
Competitiveness of a Nation
Competition has intensified dramatically over the last decades in virtually all parts of the world. In today's global capitalist environment, not only separate companies (including multinationals), but also entire nations are trying to achieve competitive advantage on a global marketplace. M. Porter claims that, "In a world of increasingly global competition, nations have become more, not less, important". With some degree of simplification, in the global market entire nations can be viewed as rivals, battling to achieve competitive advantage on a global arena. M. Porter says that, "No company, no country, can afford to ignore the need to compete. Every company and every country must try to understand and master competition". Although many prominent strategists are united in their view of what "competitiveness" of a firm is, much less is written about "competitiveness" of a nation (the relatively small number of works on this subject could probably be explained by the fact that rapid globalization processes have been developing "only" over the last fifteen years). Thus, M. Porter suggests that "competitiveness" of a nation can be characterized by relative prosperity of a nation, which means that ":the primary economic goal of any nation is to produce a high and rising standard of living for its citizens". However, M. Porter showed (by conducting an extensive study of various nations and their achievements) that access to cheap labor, capital and natural resources does not always determine national prosperity, as all these resources have become widely accessible with the ongoing process of global integration. Therefore M. Porter came to the conclusion that, "National prosperity is created, not inherited. It does not grow out of a country's national endowments, its labor pool, its interest rates or its currency value." According to Porter, ":the ability of a nation to compete depends on : productivity with which the nation's resources (labor and capital) are employed. Productivity is the value of output produced by a unit of labor or capital. It depends on both quality of the products and the efficiency with which they are produced". As no nation can be competitive in all areas of global business environment due to the limited availability of human and other resources, these resources should be deployed by national governments in the most efficient way. M. Porter says that, "Ultimately, nations succeed in particular industries if their home environment is forward looking, dynamic and challenging:" and suggests that" : differences in national values, culture, economic structures, and histories all contribute to a nation's competitive success".
What is Russian Exports
From the above reasoning it can be concluded that prosperity of any nation is greatly determined by its ability to secure competitive exports. Oil, natural gas and metals account for more than 80% of Russia's exports. According to Rosstat, which compared January-February 2005 with the same period of 2004, the share of oil and gas in the structure of Russian export increased from 58.1% to 62%, while the share of metals went up from 16.2% to 17%. At the same time, for the same period, the share of equipment and vehicles in Russian export shrank from 7.6% to 4.6%. Therefore, it can be concluded that the share of value-added products in the structure of Russian exports is shrinking, while the share of exports of oil and gas is growing, which makes the country extremely vulnerable to swings in the world prices for these commodities. Given the above concerns associated with the skewed structure of the Russian economy and its high dependency on exports of oil and gas, the following question should be addressed: how the country's "geographical" competitive advantage of the natural "land bridge" between Asia-Pacific Rim and Europe can help lessen the country's dependency on exports of oil and gas and increase Russia's international competitiveness?
Prospects of International Trade of Services
Over the past twenty years deepening integration of international economies caused rapid development of international trade of goods, which resulted in an increase of international trade of services.
Three types of services offered to customers can be identified, although it is often possible to see hybrids of two or even all three types in a particular service industry:
1. Mobile buyers travel to a nation to receive services (tourism, educational, medical services offered by the country's facilities);
2. Firms from one nation provide services to international buyers (individuals and corporations) using domestically based facilities and personnel or vehicles registered "under national flag". This could be services performed by the national ports, railways or trucks, as well as vessels and planes to transport cargoes of international customers ("export of the national transportation services");
3. A nation's firms offer services in foreign countries via offices staffed with both expatriates and local nationals (services in banking, hotel management, etc).
According to WTO' annual reports, travel and transportation services account for major portions in the structure of international trade of services.
Factor Conditions Matter
The role of the so-called factor conditions in service competition depends on the form of international competition in a particular service industry. In services where the buyer is attracted to the nation (Type 1), factor conditions are crucially important to success. For instance, tourism depends heavily on climate and geography, while education and health services rely heavily on the skills of local personnel. Services that are primarily delivered by domestic facilities and personnel (Type 2) are also sensitive to domestic factor conditions. In services delivered through success of overseas offices (Type 3) success depends on the techniques, technology and service features developed at home. The growing complexity and specialization of many service industries mean that superior factor conditions are becoming vitally important to compete in service sector.
Such factor as geographical location also plays a crucial role in some service sectors. Thus, for instance, Singapore's strength in ship repair, port and terminal services benefits from its location on important shipping lanes between Europe and Asia, while its climate allows the national tourism industry to grow. At the same time, Russia's present economic conditions, as well as its climate, do not allow the country to compete in many service industries. Declining education standards prompt those seeking high-class education to seek better alternatives in the US, the UK and other European countries. The country also has very few modern facilities to service international vessels and planes. Russia's climate ranges from steppes in the south through humid continental in much of European Russia, subarctic in Siberia to tundra climate in the polar north. Russian winters vary from cool along the Black Sea coast to frigid in Siberia. Summers vary from warm in the steppes to cool along Arctic coast. These climatic features, as well as permafrost over much of Siberia, spring floods and summer/autumn forest fires throughout Siberia and parts of European Russia, together with the underdeveloped tourist infrastructure and security concerns (Chechnya), undermine the country's ability to compete in international travel services. However, Russia can still successfully compete in trade of international transportation services, by using its unique "geographical" competitive advantage and developed rail infrastructure across the country.
East-West Transport Route Is to Win Competition
The Transsiberian Railway (TSR) that goes through the territory of the Russian Federation can play an important role in transporting the increasing cargo flows between East and West, thereby bringing revenues to the country's budget. It's known that transportations by the TSR from Far-East to Europe take on average 10 days less than those effected by deep-sea. However, this TSR's advantage in transit time - which is one of the most important characteristics of any international purchase contract - was greatly jeopardized in the early 1990s by numerous pilferages of cargoes from containers transported by the TSR and lack of tracking information while cargo was en route, which prompted a dramatic decline in transit traffic in the early 1990s and created a negative image of the TSR among Asian shippers, primarily the Japanese.
To rectify this situation, urgent measures were taken at that time by the International Coordinating Council on Transsiberian Transportations, as well as by all the participants of TSR's service (Russian railways, terminal operator in the port of Vostochny, Russian state customs, leading Russian TSR's intermodal forwarding companies), to secure safety of cargoes and stability of TSR' service. These collective efforts allowed to regain trust of shippers and led to a gradual increase from the mid-1990s in TSR' container traffic, which reached its record level in 2004. Thus, for instance, our company on its own transported over 116000 TEUs in 2004, to become the first intermodal operator in the post-Soviet history to step over the 100000 threshold.
However, it should not be forgotten that today the TSR is facing growing competition from global deep-sea shipping lines. These not only keep increasing the payload capacity of their vessels deployed on ocean routes between Asia and Europe to enjoy "economies of scale" - which allows to decrease operational costs and, hence, freight rates per TEU - but also increase the cruise speed of these container ships to shorten the transit time of a deep-sea route. On the other hand, the Trans-Chinese Railway (TCR) started to offer very competitive rates and transit time to deliver cargoes going via major Chinese ports to the countries of Central Asia, which now poses a serious threat to TSR's route offering deliveries to Central Asia via the Russian port of Vostochny.
In these challenging conditions of fierce competition with alternative transportation routes, it is vitally important not only to keep present conditions on the TSR stable, but also to adapt them to the rapidly changing reality to secure a long-term competitiveness of the TSR. Thus, in my view, first of all, freight rates of the short-sea carriers operating between the ports of the Russian Far East and the major ports of Asia should be reduced. Secondly, the so-called "simplified procedure of customs declaration", which works perfectly well on the lane Far-East-Finland, should also be applied on such priority transit lanes as Far-East-Europe (via Brest and Chop) and Far-East-Central Asia. Thirdly, the customs should further minimize the number, although not too high already, of random inspections of transit cargoes, especially at the Russian-Finnish border. Fourthly,the so-called convoy fee should be reduced even further in the mentioned priority transit corridors.
I have no doubt that close attention and urgent steps by those involved in the TSR transportations to address these immediate concerns will not only increase competitiveness of the TSR, but also greatly assist efforts exercised by major Russian international forwarders to promote the TSR route on the international transport market. This, in turn, should enhance Russia's export of transportation services, thus strengthening international competitiveness of the Russian Federation in the global business environment.
Pavel Lagov, CEO of TIS
[~DETAIL_TEXT] => The Transsiberian Railway (Transsib) is given a top priority in the Russian transit potential development. In order to make the route competitive and attractive much was done by the state, professional organizations, operators and carriers in the last decade. However, there are still measures to be taken urgently to assist the country's succession in the global market.
Competitiveness of a Nation
Competition has intensified dramatically over the last decades in virtually all parts of the world. In today's global capitalist environment, not only separate companies (including multinationals), but also entire nations are trying to achieve competitive advantage on a global marketplace. M. Porter claims that, "In a world of increasingly global competition, nations have become more, not less, important". With some degree of simplification, in the global market entire nations can be viewed as rivals, battling to achieve competitive advantage on a global arena. M. Porter says that, "No company, no country, can afford to ignore the need to compete. Every company and every country must try to understand and master competition". Although many prominent strategists are united in their view of what "competitiveness" of a firm is, much less is written about "competitiveness" of a nation (the relatively small number of works on this subject could probably be explained by the fact that rapid globalization processes have been developing "only" over the last fifteen years). Thus, M. Porter suggests that "competitiveness" of a nation can be characterized by relative prosperity of a nation, which means that ":the primary economic goal of any nation is to produce a high and rising standard of living for its citizens". However, M. Porter showed (by conducting an extensive study of various nations and their achievements) that access to cheap labor, capital and natural resources does not always determine national prosperity, as all these resources have become widely accessible with the ongoing process of global integration. Therefore M. Porter came to the conclusion that, "National prosperity is created, not inherited. It does not grow out of a country's national endowments, its labor pool, its interest rates or its currency value." According to Porter, ":the ability of a nation to compete depends on : productivity with which the nation's resources (labor and capital) are employed. Productivity is the value of output produced by a unit of labor or capital. It depends on both quality of the products and the efficiency with which they are produced". As no nation can be competitive in all areas of global business environment due to the limited availability of human and other resources, these resources should be deployed by national governments in the most efficient way. M. Porter says that, "Ultimately, nations succeed in particular industries if their home environment is forward looking, dynamic and challenging:" and suggests that" : differences in national values, culture, economic structures, and histories all contribute to a nation's competitive success".
What is Russian Exports
From the above reasoning it can be concluded that prosperity of any nation is greatly determined by its ability to secure competitive exports. Oil, natural gas and metals account for more than 80% of Russia's exports. According to Rosstat, which compared January-February 2005 with the same period of 2004, the share of oil and gas in the structure of Russian export increased from 58.1% to 62%, while the share of metals went up from 16.2% to 17%. At the same time, for the same period, the share of equipment and vehicles in Russian export shrank from 7.6% to 4.6%. Therefore, it can be concluded that the share of value-added products in the structure of Russian exports is shrinking, while the share of exports of oil and gas is growing, which makes the country extremely vulnerable to swings in the world prices for these commodities. Given the above concerns associated with the skewed structure of the Russian economy and its high dependency on exports of oil and gas, the following question should be addressed: how the country's "geographical" competitive advantage of the natural "land bridge" between Asia-Pacific Rim and Europe can help lessen the country's dependency on exports of oil and gas and increase Russia's international competitiveness?
Prospects of International Trade of Services
Over the past twenty years deepening integration of international economies caused rapid development of international trade of goods, which resulted in an increase of international trade of services.
Three types of services offered to customers can be identified, although it is often possible to see hybrids of two or even all three types in a particular service industry:
1. Mobile buyers travel to a nation to receive services (tourism, educational, medical services offered by the country's facilities);
2. Firms from one nation provide services to international buyers (individuals and corporations) using domestically based facilities and personnel or vehicles registered "under national flag". This could be services performed by the national ports, railways or trucks, as well as vessels and planes to transport cargoes of international customers ("export of the national transportation services");
3. A nation's firms offer services in foreign countries via offices staffed with both expatriates and local nationals (services in banking, hotel management, etc).
According to WTO' annual reports, travel and transportation services account for major portions in the structure of international trade of services.
Factor Conditions Matter
The role of the so-called factor conditions in service competition depends on the form of international competition in a particular service industry. In services where the buyer is attracted to the nation (Type 1), factor conditions are crucially important to success. For instance, tourism depends heavily on climate and geography, while education and health services rely heavily on the skills of local personnel. Services that are primarily delivered by domestic facilities and personnel (Type 2) are also sensitive to domestic factor conditions. In services delivered through success of overseas offices (Type 3) success depends on the techniques, technology and service features developed at home. The growing complexity and specialization of many service industries mean that superior factor conditions are becoming vitally important to compete in service sector.
Such factor as geographical location also plays a crucial role in some service sectors. Thus, for instance, Singapore's strength in ship repair, port and terminal services benefits from its location on important shipping lanes between Europe and Asia, while its climate allows the national tourism industry to grow. At the same time, Russia's present economic conditions, as well as its climate, do not allow the country to compete in many service industries. Declining education standards prompt those seeking high-class education to seek better alternatives in the US, the UK and other European countries. The country also has very few modern facilities to service international vessels and planes. Russia's climate ranges from steppes in the south through humid continental in much of European Russia, subarctic in Siberia to tundra climate in the polar north. Russian winters vary from cool along the Black Sea coast to frigid in Siberia. Summers vary from warm in the steppes to cool along Arctic coast. These climatic features, as well as permafrost over much of Siberia, spring floods and summer/autumn forest fires throughout Siberia and parts of European Russia, together with the underdeveloped tourist infrastructure and security concerns (Chechnya), undermine the country's ability to compete in international travel services. However, Russia can still successfully compete in trade of international transportation services, by using its unique "geographical" competitive advantage and developed rail infrastructure across the country.
East-West Transport Route Is to Win Competition
The Transsiberian Railway (TSR) that goes through the territory of the Russian Federation can play an important role in transporting the increasing cargo flows between East and West, thereby bringing revenues to the country's budget. It's known that transportations by the TSR from Far-East to Europe take on average 10 days less than those effected by deep-sea. However, this TSR's advantage in transit time - which is one of the most important characteristics of any international purchase contract - was greatly jeopardized in the early 1990s by numerous pilferages of cargoes from containers transported by the TSR and lack of tracking information while cargo was en route, which prompted a dramatic decline in transit traffic in the early 1990s and created a negative image of the TSR among Asian shippers, primarily the Japanese.
To rectify this situation, urgent measures were taken at that time by the International Coordinating Council on Transsiberian Transportations, as well as by all the participants of TSR's service (Russian railways, terminal operator in the port of Vostochny, Russian state customs, leading Russian TSR's intermodal forwarding companies), to secure safety of cargoes and stability of TSR' service. These collective efforts allowed to regain trust of shippers and led to a gradual increase from the mid-1990s in TSR' container traffic, which reached its record level in 2004. Thus, for instance, our company on its own transported over 116000 TEUs in 2004, to become the first intermodal operator in the post-Soviet history to step over the 100000 threshold.
However, it should not be forgotten that today the TSR is facing growing competition from global deep-sea shipping lines. These not only keep increasing the payload capacity of their vessels deployed on ocean routes between Asia and Europe to enjoy "economies of scale" - which allows to decrease operational costs and, hence, freight rates per TEU - but also increase the cruise speed of these container ships to shorten the transit time of a deep-sea route. On the other hand, the Trans-Chinese Railway (TCR) started to offer very competitive rates and transit time to deliver cargoes going via major Chinese ports to the countries of Central Asia, which now poses a serious threat to TSR's route offering deliveries to Central Asia via the Russian port of Vostochny.
In these challenging conditions of fierce competition with alternative transportation routes, it is vitally important not only to keep present conditions on the TSR stable, but also to adapt them to the rapidly changing reality to secure a long-term competitiveness of the TSR. Thus, in my view, first of all, freight rates of the short-sea carriers operating between the ports of the Russian Far East and the major ports of Asia should be reduced. Secondly, the so-called "simplified procedure of customs declaration", which works perfectly well on the lane Far-East-Finland, should also be applied on such priority transit lanes as Far-East-Europe (via Brest and Chop) and Far-East-Central Asia. Thirdly, the customs should further minimize the number, although not too high already, of random inspections of transit cargoes, especially at the Russian-Finnish border. Fourthly,the so-called convoy fee should be reduced even further in the mentioned priority transit corridors.
I have no doubt that close attention and urgent steps by those involved in the TSR transportations to address these immediate concerns will not only increase competitiveness of the TSR, but also greatly assist efforts exercised by major Russian international forwarders to promote the TSR route on the international transport market. This, in turn, should enhance Russia's export of transportation services, thus strengthening international competitiveness of the Russian Federation in the global business environment.
Pavel Lagov, CEO of TIS
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[DETAIL_TEXT] => The Transsiberian Railway (Transsib) is given a top priority in the Russian transit potential development. In order to make the route competitive and attractive much was done by the state, professional organizations, operators and carriers in the last decade. However, there are still measures to be taken urgently to assist the country's succession in the global market.
Competitiveness of a Nation
Competition has intensified dramatically over the last decades in virtually all parts of the world. In today's global capitalist environment, not only separate companies (including multinationals), but also entire nations are trying to achieve competitive advantage on a global marketplace. M. Porter claims that, "In a world of increasingly global competition, nations have become more, not less, important". With some degree of simplification, in the global market entire nations can be viewed as rivals, battling to achieve competitive advantage on a global arena. M. Porter says that, "No company, no country, can afford to ignore the need to compete. Every company and every country must try to understand and master competition". Although many prominent strategists are united in their view of what "competitiveness" of a firm is, much less is written about "competitiveness" of a nation (the relatively small number of works on this subject could probably be explained by the fact that rapid globalization processes have been developing "only" over the last fifteen years). Thus, M. Porter suggests that "competitiveness" of a nation can be characterized by relative prosperity of a nation, which means that ":the primary economic goal of any nation is to produce a high and rising standard of living for its citizens". However, M. Porter showed (by conducting an extensive study of various nations and their achievements) that access to cheap labor, capital and natural resources does not always determine national prosperity, as all these resources have become widely accessible with the ongoing process of global integration. Therefore M. Porter came to the conclusion that, "National prosperity is created, not inherited. It does not grow out of a country's national endowments, its labor pool, its interest rates or its currency value." According to Porter, ":the ability of a nation to compete depends on : productivity with which the nation's resources (labor and capital) are employed. Productivity is the value of output produced by a unit of labor or capital. It depends on both quality of the products and the efficiency with which they are produced". As no nation can be competitive in all areas of global business environment due to the limited availability of human and other resources, these resources should be deployed by national governments in the most efficient way. M. Porter says that, "Ultimately, nations succeed in particular industries if their home environment is forward looking, dynamic and challenging:" and suggests that" : differences in national values, culture, economic structures, and histories all contribute to a nation's competitive success".
What is Russian Exports
From the above reasoning it can be concluded that prosperity of any nation is greatly determined by its ability to secure competitive exports. Oil, natural gas and metals account for more than 80% of Russia's exports. According to Rosstat, which compared January-February 2005 with the same period of 2004, the share of oil and gas in the structure of Russian export increased from 58.1% to 62%, while the share of metals went up from 16.2% to 17%. At the same time, for the same period, the share of equipment and vehicles in Russian export shrank from 7.6% to 4.6%. Therefore, it can be concluded that the share of value-added products in the structure of Russian exports is shrinking, while the share of exports of oil and gas is growing, which makes the country extremely vulnerable to swings in the world prices for these commodities. Given the above concerns associated with the skewed structure of the Russian economy and its high dependency on exports of oil and gas, the following question should be addressed: how the country's "geographical" competitive advantage of the natural "land bridge" between Asia-Pacific Rim and Europe can help lessen the country's dependency on exports of oil and gas and increase Russia's international competitiveness?
Prospects of International Trade of Services
Over the past twenty years deepening integration of international economies caused rapid development of international trade of goods, which resulted in an increase of international trade of services.
Three types of services offered to customers can be identified, although it is often possible to see hybrids of two or even all three types in a particular service industry:
1. Mobile buyers travel to a nation to receive services (tourism, educational, medical services offered by the country's facilities);
2. Firms from one nation provide services to international buyers (individuals and corporations) using domestically based facilities and personnel or vehicles registered "under national flag". This could be services performed by the national ports, railways or trucks, as well as vessels and planes to transport cargoes of international customers ("export of the national transportation services");
3. A nation's firms offer services in foreign countries via offices staffed with both expatriates and local nationals (services in banking, hotel management, etc).
According to WTO' annual reports, travel and transportation services account for major portions in the structure of international trade of services.
Factor Conditions Matter
The role of the so-called factor conditions in service competition depends on the form of international competition in a particular service industry. In services where the buyer is attracted to the nation (Type 1), factor conditions are crucially important to success. For instance, tourism depends heavily on climate and geography, while education and health services rely heavily on the skills of local personnel. Services that are primarily delivered by domestic facilities and personnel (Type 2) are also sensitive to domestic factor conditions. In services delivered through success of overseas offices (Type 3) success depends on the techniques, technology and service features developed at home. The growing complexity and specialization of many service industries mean that superior factor conditions are becoming vitally important to compete in service sector.
Such factor as geographical location also plays a crucial role in some service sectors. Thus, for instance, Singapore's strength in ship repair, port and terminal services benefits from its location on important shipping lanes between Europe and Asia, while its climate allows the national tourism industry to grow. At the same time, Russia's present economic conditions, as well as its climate, do not allow the country to compete in many service industries. Declining education standards prompt those seeking high-class education to seek better alternatives in the US, the UK and other European countries. The country also has very few modern facilities to service international vessels and planes. Russia's climate ranges from steppes in the south through humid continental in much of European Russia, subarctic in Siberia to tundra climate in the polar north. Russian winters vary from cool along the Black Sea coast to frigid in Siberia. Summers vary from warm in the steppes to cool along Arctic coast. These climatic features, as well as permafrost over much of Siberia, spring floods and summer/autumn forest fires throughout Siberia and parts of European Russia, together with the underdeveloped tourist infrastructure and security concerns (Chechnya), undermine the country's ability to compete in international travel services. However, Russia can still successfully compete in trade of international transportation services, by using its unique "geographical" competitive advantage and developed rail infrastructure across the country.
East-West Transport Route Is to Win Competition
The Transsiberian Railway (TSR) that goes through the territory of the Russian Federation can play an important role in transporting the increasing cargo flows between East and West, thereby bringing revenues to the country's budget. It's known that transportations by the TSR from Far-East to Europe take on average 10 days less than those effected by deep-sea. However, this TSR's advantage in transit time - which is one of the most important characteristics of any international purchase contract - was greatly jeopardized in the early 1990s by numerous pilferages of cargoes from containers transported by the TSR and lack of tracking information while cargo was en route, which prompted a dramatic decline in transit traffic in the early 1990s and created a negative image of the TSR among Asian shippers, primarily the Japanese.
To rectify this situation, urgent measures were taken at that time by the International Coordinating Council on Transsiberian Transportations, as well as by all the participants of TSR's service (Russian railways, terminal operator in the port of Vostochny, Russian state customs, leading Russian TSR's intermodal forwarding companies), to secure safety of cargoes and stability of TSR' service. These collective efforts allowed to regain trust of shippers and led to a gradual increase from the mid-1990s in TSR' container traffic, which reached its record level in 2004. Thus, for instance, our company on its own transported over 116000 TEUs in 2004, to become the first intermodal operator in the post-Soviet history to step over the 100000 threshold.
However, it should not be forgotten that today the TSR is facing growing competition from global deep-sea shipping lines. These not only keep increasing the payload capacity of their vessels deployed on ocean routes between Asia and Europe to enjoy "economies of scale" - which allows to decrease operational costs and, hence, freight rates per TEU - but also increase the cruise speed of these container ships to shorten the transit time of a deep-sea route. On the other hand, the Trans-Chinese Railway (TCR) started to offer very competitive rates and transit time to deliver cargoes going via major Chinese ports to the countries of Central Asia, which now poses a serious threat to TSR's route offering deliveries to Central Asia via the Russian port of Vostochny.
In these challenging conditions of fierce competition with alternative transportation routes, it is vitally important not only to keep present conditions on the TSR stable, but also to adapt them to the rapidly changing reality to secure a long-term competitiveness of the TSR. Thus, in my view, first of all, freight rates of the short-sea carriers operating between the ports of the Russian Far East and the major ports of Asia should be reduced. Secondly, the so-called "simplified procedure of customs declaration", which works perfectly well on the lane Far-East-Finland, should also be applied on such priority transit lanes as Far-East-Europe (via Brest and Chop) and Far-East-Central Asia. Thirdly, the customs should further minimize the number, although not too high already, of random inspections of transit cargoes, especially at the Russian-Finnish border. Fourthly,the so-called convoy fee should be reduced even further in the mentioned priority transit corridors.
I have no doubt that close attention and urgent steps by those involved in the TSR transportations to address these immediate concerns will not only increase competitiveness of the TSR, but also greatly assist efforts exercised by major Russian international forwarders to promote the TSR route on the international transport market. This, in turn, should enhance Russia's export of transportation services, thus strengthening international competitiveness of the Russian Federation in the global business environment.
Pavel Lagov, CEO of TIS
[~DETAIL_TEXT] => The Transsiberian Railway (Transsib) is given a top priority in the Russian transit potential development. In order to make the route competitive and attractive much was done by the state, professional organizations, operators and carriers in the last decade. However, there are still measures to be taken urgently to assist the country's succession in the global market.
Competitiveness of a Nation
Competition has intensified dramatically over the last decades in virtually all parts of the world. In today's global capitalist environment, not only separate companies (including multinationals), but also entire nations are trying to achieve competitive advantage on a global marketplace. M. Porter claims that, "In a world of increasingly global competition, nations have become more, not less, important". With some degree of simplification, in the global market entire nations can be viewed as rivals, battling to achieve competitive advantage on a global arena. M. Porter says that, "No company, no country, can afford to ignore the need to compete. Every company and every country must try to understand and master competition". Although many prominent strategists are united in their view of what "competitiveness" of a firm is, much less is written about "competitiveness" of a nation (the relatively small number of works on this subject could probably be explained by the fact that rapid globalization processes have been developing "only" over the last fifteen years). Thus, M. Porter suggests that "competitiveness" of a nation can be characterized by relative prosperity of a nation, which means that ":the primary economic goal of any nation is to produce a high and rising standard of living for its citizens". However, M. Porter showed (by conducting an extensive study of various nations and their achievements) that access to cheap labor, capital and natural resources does not always determine national prosperity, as all these resources have become widely accessible with the ongoing process of global integration. Therefore M. Porter came to the conclusion that, "National prosperity is created, not inherited. It does not grow out of a country's national endowments, its labor pool, its interest rates or its currency value." According to Porter, ":the ability of a nation to compete depends on : productivity with which the nation's resources (labor and capital) are employed. Productivity is the value of output produced by a unit of labor or capital. It depends on both quality of the products and the efficiency with which they are produced". As no nation can be competitive in all areas of global business environment due to the limited availability of human and other resources, these resources should be deployed by national governments in the most efficient way. M. Porter says that, "Ultimately, nations succeed in particular industries if their home environment is forward looking, dynamic and challenging:" and suggests that" : differences in national values, culture, economic structures, and histories all contribute to a nation's competitive success".
What is Russian Exports
From the above reasoning it can be concluded that prosperity of any nation is greatly determined by its ability to secure competitive exports. Oil, natural gas and metals account for more than 80% of Russia's exports. According to Rosstat, which compared January-February 2005 with the same period of 2004, the share of oil and gas in the structure of Russian export increased from 58.1% to 62%, while the share of metals went up from 16.2% to 17%. At the same time, for the same period, the share of equipment and vehicles in Russian export shrank from 7.6% to 4.6%. Therefore, it can be concluded that the share of value-added products in the structure of Russian exports is shrinking, while the share of exports of oil and gas is growing, which makes the country extremely vulnerable to swings in the world prices for these commodities. Given the above concerns associated with the skewed structure of the Russian economy and its high dependency on exports of oil and gas, the following question should be addressed: how the country's "geographical" competitive advantage of the natural "land bridge" between Asia-Pacific Rim and Europe can help lessen the country's dependency on exports of oil and gas and increase Russia's international competitiveness?
Prospects of International Trade of Services
Over the past twenty years deepening integration of international economies caused rapid development of international trade of goods, which resulted in an increase of international trade of services.
Three types of services offered to customers can be identified, although it is often possible to see hybrids of two or even all three types in a particular service industry:
1. Mobile buyers travel to a nation to receive services (tourism, educational, medical services offered by the country's facilities);
2. Firms from one nation provide services to international buyers (individuals and corporations) using domestically based facilities and personnel or vehicles registered "under national flag". This could be services performed by the national ports, railways or trucks, as well as vessels and planes to transport cargoes of international customers ("export of the national transportation services");
3. A nation's firms offer services in foreign countries via offices staffed with both expatriates and local nationals (services in banking, hotel management, etc).
According to WTO' annual reports, travel and transportation services account for major portions in the structure of international trade of services.
Factor Conditions Matter
The role of the so-called factor conditions in service competition depends on the form of international competition in a particular service industry. In services where the buyer is attracted to the nation (Type 1), factor conditions are crucially important to success. For instance, tourism depends heavily on climate and geography, while education and health services rely heavily on the skills of local personnel. Services that are primarily delivered by domestic facilities and personnel (Type 2) are also sensitive to domestic factor conditions. In services delivered through success of overseas offices (Type 3) success depends on the techniques, technology and service features developed at home. The growing complexity and specialization of many service industries mean that superior factor conditions are becoming vitally important to compete in service sector.
Such factor as geographical location also plays a crucial role in some service sectors. Thus, for instance, Singapore's strength in ship repair, port and terminal services benefits from its location on important shipping lanes between Europe and Asia, while its climate allows the national tourism industry to grow. At the same time, Russia's present economic conditions, as well as its climate, do not allow the country to compete in many service industries. Declining education standards prompt those seeking high-class education to seek better alternatives in the US, the UK and other European countries. The country also has very few modern facilities to service international vessels and planes. Russia's climate ranges from steppes in the south through humid continental in much of European Russia, subarctic in Siberia to tundra climate in the polar north. Russian winters vary from cool along the Black Sea coast to frigid in Siberia. Summers vary from warm in the steppes to cool along Arctic coast. These climatic features, as well as permafrost over much of Siberia, spring floods and summer/autumn forest fires throughout Siberia and parts of European Russia, together with the underdeveloped tourist infrastructure and security concerns (Chechnya), undermine the country's ability to compete in international travel services. However, Russia can still successfully compete in trade of international transportation services, by using its unique "geographical" competitive advantage and developed rail infrastructure across the country.
East-West Transport Route Is to Win Competition
The Transsiberian Railway (TSR) that goes through the territory of the Russian Federation can play an important role in transporting the increasing cargo flows between East and West, thereby bringing revenues to the country's budget. It's known that transportations by the TSR from Far-East to Europe take on average 10 days less than those effected by deep-sea. However, this TSR's advantage in transit time - which is one of the most important characteristics of any international purchase contract - was greatly jeopardized in the early 1990s by numerous pilferages of cargoes from containers transported by the TSR and lack of tracking information while cargo was en route, which prompted a dramatic decline in transit traffic in the early 1990s and created a negative image of the TSR among Asian shippers, primarily the Japanese.
To rectify this situation, urgent measures were taken at that time by the International Coordinating Council on Transsiberian Transportations, as well as by all the participants of TSR's service (Russian railways, terminal operator in the port of Vostochny, Russian state customs, leading Russian TSR's intermodal forwarding companies), to secure safety of cargoes and stability of TSR' service. These collective efforts allowed to regain trust of shippers and led to a gradual increase from the mid-1990s in TSR' container traffic, which reached its record level in 2004. Thus, for instance, our company on its own transported over 116000 TEUs in 2004, to become the first intermodal operator in the post-Soviet history to step over the 100000 threshold.
However, it should not be forgotten that today the TSR is facing growing competition from global deep-sea shipping lines. These not only keep increasing the payload capacity of their vessels deployed on ocean routes between Asia and Europe to enjoy "economies of scale" - which allows to decrease operational costs and, hence, freight rates per TEU - but also increase the cruise speed of these container ships to shorten the transit time of a deep-sea route. On the other hand, the Trans-Chinese Railway (TCR) started to offer very competitive rates and transit time to deliver cargoes going via major Chinese ports to the countries of Central Asia, which now poses a serious threat to TSR's route offering deliveries to Central Asia via the Russian port of Vostochny.
In these challenging conditions of fierce competition with alternative transportation routes, it is vitally important not only to keep present conditions on the TSR stable, but also to adapt them to the rapidly changing reality to secure a long-term competitiveness of the TSR. Thus, in my view, first of all, freight rates of the short-sea carriers operating between the ports of the Russian Far East and the major ports of Asia should be reduced. Secondly, the so-called "simplified procedure of customs declaration", which works perfectly well on the lane Far-East-Finland, should also be applied on such priority transit lanes as Far-East-Europe (via Brest and Chop) and Far-East-Central Asia. Thirdly, the customs should further minimize the number, although not too high already, of random inspections of transit cargoes, especially at the Russian-Finnish border. Fourthly,the so-called convoy fee should be reduced even further in the mentioned priority transit corridors.
I have no doubt that close attention and urgent steps by those involved in the TSR transportations to address these immediate concerns will not only increase competitiveness of the TSR, but also greatly assist efforts exercised by major Russian international forwarders to promote the TSR route on the international transport market. This, in turn, should enhance Russia's export of transportation services, thus strengthening international competitiveness of the Russian Federation in the global business environment.
Pavel Lagov, CEO of TIS
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[DETAIL_TEXT] => During the period of January-June, 2005 throughput of the Russian transport totalled 2299.2 bln t/km. However the growth amounted to 2.8% year-on-year, while in 2003 the corresponding index reached 7.4%. What are the key factors that influenced the throughput growth?
Oil Lays Terms
Statistics report that the throughput of rail transport amounted to 905.5 bln t/km, that of truck haulage - to 90.7 bln t/km, of sea and river transport - to 30.7 bln t/km, of air one - 1.3 bln t/km and of pipelines - 1240.2 bln t/km.
The throughput of truck haulage grew best in H1 of 2005 totalling 9.6%. In 2004 the growth amounted to 5.5% year-on-year. Thus, we can speak of stable positive dynamics. Experts explain that by the growing demand for door-to-door delivery and flexible transport mode. Another factor that influenced the truck haulage development is the global trend of container transportation growth. Taking into consideration all these reasons, we can forecast a further rise of truck haulage.
In the first half of 2005 the throughput of pipelines grew by 3.1% year-on-year, while in 2004 the rise amounted to 7.8%. The growth rate decrease, on the one hand, is explained by a slight oil extraction reduction due to the situation with YUKOS and, on the other hand, by the shortening of the transportation distance. After too high crude oil export duties had been imposed, Russian oil companies increased the share transported to the country's refineries.
At the same time the situation in the inland transportation market led to the throughput dropping by 15% against the results of H1 of 2004. The growth rate in 2004 totalled over 23%, which was explained by the measures taken by the Government to stimulate the inland transport development. Today's situation is explained by several factors. Firstly, fuel cost rise made the cheapest transport mode noncompetitive with the railway, as market participants complain. As tank wagon supply considerably exceeded the demand and companies-operators faced stiff competition struggling for cargo, it resulted in a price decrease for rail transportation in privately owned rolling stock. Thus, during the period of April-June, 2005, inland oil transportation in the European part of Russia fell down7.4-fold year-on-year. The head of the Russian Association of Shipping Companies Nikolay Smirnov stated that oil rerouting to other transport modes, such as pipelines and railways for inland transport, means the loss of the lion's share of liquid bulk. Besides, he stated that a considerable share of the river-type vessels closed navigation due to a sharp demand reduction.
Changes as necessity
The backbone of the Russian transport sector is railway which ensures some 80% of the total transportation volume. The results of OAO RZD's operations in H1 show two main trends: the loading growth rate fell down and profit indexes are below the target. Is this a result of imperfect management of the company or of the market changes? A new president of OAO RZD Vladimir Yakunin in his first address to the company's employees voiced the factors, preventing the rail sector from developing.
- Our profitability is minimal, - he stated - while obsolescence is almost critical. Huge investments are badly needed, though our market position is worsening: we lose profitable cargo flows. The company is being reformed and there is the risk of turning not in to infrastructural and carrying company, which takes 50% of the market, as it is set in the reform programme, but into a company providing capital-intensive infrastructure services and performing non-profitable cargo transportation strategically important for the country. At the same time we face fierce competition in the global transport market. We have to compete in the domestic labour and capital market. The gap in scientific, technical and IT innovations is expanding. Management structure, corporate structure and the system of the staff motivation have not been meeting the modern requirements for a long time already. All the challenges are absolutely real. And we should not be deceived by the slight growth of few, mostly quantitative, indicators. Moreover, the accounting system is also much doubted. However, according to our accounts, during the first 6 months of 2005, the loading volume of the Russian railways rose to almost 616 mln. tones, which is 3.8% up year-on-year. Meanwhile, only 48% of the target volumes has been fulfilled. Nevertheless, the country's production growth rate amounted to only 3.4%, which means that OAO RZD keeps ensuring Russia's transport demand.
In H1 oil and products loading grew by only 2.1%, coal - by 2.2% and ferrous metals - by 3%. The developing oil market was affected by the situation with YUKOS, which can not but influence liquid bulk transportation: volumes applied by YUKOS for carrying dropped considerably, while liability succession to the oil giant's contracts of Rosneft was not defined. As a result, tank wagon supply considerably exceeded demand. This particularly concerns the fleet owned by OAO RZD, which had to idle. Companies-operators intensified their search of clients, which influenced the prices level. As private companies, unlike OAO RZD, could offer flexible tariffs, their conditions turned out to be more attractive for cargo owners. Thus, the demand for oil transportation using tank wagons owned by OAO RZD is constantly felling down.
At the same time rail transportation of crude oil also decreases. This could be explained by several reasons. Firstly, due to high oil export duties, outgoing trade is getting down. Secondly, pipeline transport, which is always cheaper than railway, is developing and its capacity is increasing.
There is also a difficult situation with coal rail transportation. The problem arose at the beginning of 2005 when plants of Kuzbass (the Kuznetsk basin) almost failed their plan of coal extraction, as a result, loading volumes were lower than applied. Experts explain the decrease by a global market situation change and extraction drop, as well as by the unjustified tariff policy of the Russian coal producers. Having overvalued their production by 1.5-2 times, they lost their markets, both international and domestic. Despite their claims that during the period of July-December they will reach the target, it is hardly believable. It is almost impossible to believe that extraction will increase sharply, as well as that domestic consumption will grow, especially in summer.
Metal producers also reduced production and loading volumes. On the one hand, it could be connected with stagnation in the sector, on the other hand, we could explain it by the stabilization of the market. Today Russian steel is demanded in the world markets, which is proved by export quota increase in the EU. However, China having provoked a sharp rise of iron ore extraction and ferrous metal production, is almost satisfied with the Russian production today. Moreover, the Chinese steel industry development results in import flow decrease. Thus, the process of demand reduction of the Asian and the Pacific countries for the Russian ore and ferrous metals is absolutely natural. It should also be highlighted that the consequences of the Chinese demand will influence the Russian domestic market for a long time. However, metal producers must not forget that attractive offers were made by China due to huge volume of low-rate credits, which they got from foreign banks. Thus, evidently the country will try to reduce purchasing prices in the near future. Furthermore, China is turning into an exporter. This means that the time to seek new markets has already come for Russians. It is also worth highlighting that being a raw materials supplier is not prospective in the long run and nonprofitable. The country is reaching the moment when the domestic machinery-building market is to be stimulated in order to create a market for ferrous metals and develop Russia's economy on the whole.
Prospects are Visible
At the same time new trends and prospects appeared. The leader in terms of growth rate is container transportation, which rose by 13.8% during the period of January-June.
The development of container transportation is caused by both the global trend and Russia's turning from the planning economy to the market. A huge quantity of private companies was launched to work in the market of consumer goods. Such companies can not supply big consignments, but need to transport production no more than for a wagon. Thus, the combination of relatively small capacity and design for multimodal transportation and door-to-door delivery makes a container almost ideal for such companies.
Meanwhile, another factor influencing container transportation growth is measures taken in the framework of the Conception of the state's support of container flows carried by the Transsib. Particularly, it is block train creating, tariff reduction, train speed increase and the improvement of interaction between railway and port.
However, rail container transportation could be even more efficient for OAO RZD, if they get the right for flexible tariff regulation. Today there is no single container owned by OAO RZD in block trains: the company just sells technological scheme to private companies.
Container transportation is followed by construction materials, the transportation of which grew by 12.4% in H1. Generally, construction materials and minerals delivery depends on the season: sharp rise in the construction period and decrease in winter. This year the situation was quite different. The season has not started yet but the results of OAO RZD show considerable growth of this cargo transportation. This is explained by construction volumes increase in the country's megapolises, as well as by profitability growth of this cargo transportation. In the total carriage volume, construction materials share amounts to over 15%, plus some 3% is taken by cement. Moreover, railway is one of the biggest consumers of the cargo. Road metal used for ballasting of rail groundwork constitutes the lion's share in construction material transportation. According to OAO RZD, in 2004 in the aggregate carriage volume of construction materials road metal for ballasting took over 28%, road metal carriage for railways rose by 11.5% year-on-year.
In 2004 construction materials and minerals transportation by OAO RZD totalled 184 mln tones, cement amounted to over 32 mln tones.
Construction materials and minerals transportation is characterized by regional nature. Up to 97% of the cargo is transported to the domestic market, export is not over 1.5%, wherein the biggest share is destined for the CIS: Kazakhstan, Turkmenia, Azerbaijan, Ukraine and Byelorussia. Some 65% of construction materials and cement is destined for the house and road building in the region. The rest is carried to the construction companies working in the industrial and business centers.
The last in the top-three cargoes with the highest transportation growth rate is timber and logs, which are 8.4% up year-on-year. However, for objective reasons in the near future the dynamics could slow down. The largest share in the aggregate volume of timber and logs rail transportation is taken by the Severnaya (Northern) and October railways. In the Far East, due to the sharp temperature rise in spring, the majority of roads to felling sectors was washed out, which resulted in harvesting stop. Thus, till May the Dalnevostochnaya (Far-Eastern) railway carried only the remainder of timber harvested in winter. In June the situation became critical : there was no timber and logs to carry. By now felling has been resumed but how much time they need to compensate losses is hard to predict.
Quality management
It could be concluded that rail loading growth rate slow down is mostly the result of the market changes. Nevertheless, in today's market situation OAO RZD should not just carry applied volumes, but use a flexible approach to the market: attract new cargo flows, analyze the market, implement flexible tariffs, and meet the clients' needs.
"Today", stated the president of OAO RZD Vladimir Yakunin, "private operators see the clients' needs better than we do, as well as make better offers. Thus, using the same technological base and operating the same infrastructure, we are losing competition with operators in the field of client servicing. This means that we must learn to work with clients, implement differential approach and differentiate services classes. Meeting the clients' needs must become the top priority for our company. We should offer our clients integrated transport services and expand our influence on other rail sectors and transport modes. We must make our operation more transparent, ensure equal access to the rail infrastructure and based on all these, to obtain rail wagon consistent deregulation.
One of the elements of the personal approach should become long-term contracts signing with consignees where financial liabilities will be based on the principle: "carry or pay". Only in this case we can get guaranteed applied volumes on agreed routes and a stable profit, and only thus we can afford to support the decision to offer discounts".
Tatyana Tokareva
[~DETAIL_TEXT] => During the period of January-June, 2005 throughput of the Russian transport totalled 2299.2 bln t/km. However the growth amounted to 2.8% year-on-year, while in 2003 the corresponding index reached 7.4%. What are the key factors that influenced the throughput growth?
Oil Lays Terms
Statistics report that the throughput of rail transport amounted to 905.5 bln t/km, that of truck haulage - to 90.7 bln t/km, of sea and river transport - to 30.7 bln t/km, of air one - 1.3 bln t/km and of pipelines - 1240.2 bln t/km.
The throughput of truck haulage grew best in H1 of 2005 totalling 9.6%. In 2004 the growth amounted to 5.5% year-on-year. Thus, we can speak of stable positive dynamics. Experts explain that by the growing demand for door-to-door delivery and flexible transport mode. Another factor that influenced the truck haulage development is the global trend of container transportation growth. Taking into consideration all these reasons, we can forecast a further rise of truck haulage.
In the first half of 2005 the throughput of pipelines grew by 3.1% year-on-year, while in 2004 the rise amounted to 7.8%. The growth rate decrease, on the one hand, is explained by a slight oil extraction reduction due to the situation with YUKOS and, on the other hand, by the shortening of the transportation distance. After too high crude oil export duties had been imposed, Russian oil companies increased the share transported to the country's refineries.
At the same time the situation in the inland transportation market led to the throughput dropping by 15% against the results of H1 of 2004. The growth rate in 2004 totalled over 23%, which was explained by the measures taken by the Government to stimulate the inland transport development. Today's situation is explained by several factors. Firstly, fuel cost rise made the cheapest transport mode noncompetitive with the railway, as market participants complain. As tank wagon supply considerably exceeded the demand and companies-operators faced stiff competition struggling for cargo, it resulted in a price decrease for rail transportation in privately owned rolling stock. Thus, during the period of April-June, 2005, inland oil transportation in the European part of Russia fell down7.4-fold year-on-year. The head of the Russian Association of Shipping Companies Nikolay Smirnov stated that oil rerouting to other transport modes, such as pipelines and railways for inland transport, means the loss of the lion's share of liquid bulk. Besides, he stated that a considerable share of the river-type vessels closed navigation due to a sharp demand reduction.
Changes as necessity
The backbone of the Russian transport sector is railway which ensures some 80% of the total transportation volume. The results of OAO RZD's operations in H1 show two main trends: the loading growth rate fell down and profit indexes are below the target. Is this a result of imperfect management of the company or of the market changes? A new president of OAO RZD Vladimir Yakunin in his first address to the company's employees voiced the factors, preventing the rail sector from developing.
- Our profitability is minimal, - he stated - while obsolescence is almost critical. Huge investments are badly needed, though our market position is worsening: we lose profitable cargo flows. The company is being reformed and there is the risk of turning not in to infrastructural and carrying company, which takes 50% of the market, as it is set in the reform programme, but into a company providing capital-intensive infrastructure services and performing non-profitable cargo transportation strategically important for the country. At the same time we face fierce competition in the global transport market. We have to compete in the domestic labour and capital market. The gap in scientific, technical and IT innovations is expanding. Management structure, corporate structure and the system of the staff motivation have not been meeting the modern requirements for a long time already. All the challenges are absolutely real. And we should not be deceived by the slight growth of few, mostly quantitative, indicators. Moreover, the accounting system is also much doubted. However, according to our accounts, during the first 6 months of 2005, the loading volume of the Russian railways rose to almost 616 mln. tones, which is 3.8% up year-on-year. Meanwhile, only 48% of the target volumes has been fulfilled. Nevertheless, the country's production growth rate amounted to only 3.4%, which means that OAO RZD keeps ensuring Russia's transport demand.
In H1 oil and products loading grew by only 2.1%, coal - by 2.2% and ferrous metals - by 3%. The developing oil market was affected by the situation with YUKOS, which can not but influence liquid bulk transportation: volumes applied by YUKOS for carrying dropped considerably, while liability succession to the oil giant's contracts of Rosneft was not defined. As a result, tank wagon supply considerably exceeded demand. This particularly concerns the fleet owned by OAO RZD, which had to idle. Companies-operators intensified their search of clients, which influenced the prices level. As private companies, unlike OAO RZD, could offer flexible tariffs, their conditions turned out to be more attractive for cargo owners. Thus, the demand for oil transportation using tank wagons owned by OAO RZD is constantly felling down.
At the same time rail transportation of crude oil also decreases. This could be explained by several reasons. Firstly, due to high oil export duties, outgoing trade is getting down. Secondly, pipeline transport, which is always cheaper than railway, is developing and its capacity is increasing.
There is also a difficult situation with coal rail transportation. The problem arose at the beginning of 2005 when plants of Kuzbass (the Kuznetsk basin) almost failed their plan of coal extraction, as a result, loading volumes were lower than applied. Experts explain the decrease by a global market situation change and extraction drop, as well as by the unjustified tariff policy of the Russian coal producers. Having overvalued their production by 1.5-2 times, they lost their markets, both international and domestic. Despite their claims that during the period of July-December they will reach the target, it is hardly believable. It is almost impossible to believe that extraction will increase sharply, as well as that domestic consumption will grow, especially in summer.
Metal producers also reduced production and loading volumes. On the one hand, it could be connected with stagnation in the sector, on the other hand, we could explain it by the stabilization of the market. Today Russian steel is demanded in the world markets, which is proved by export quota increase in the EU. However, China having provoked a sharp rise of iron ore extraction and ferrous metal production, is almost satisfied with the Russian production today. Moreover, the Chinese steel industry development results in import flow decrease. Thus, the process of demand reduction of the Asian and the Pacific countries for the Russian ore and ferrous metals is absolutely natural. It should also be highlighted that the consequences of the Chinese demand will influence the Russian domestic market for a long time. However, metal producers must not forget that attractive offers were made by China due to huge volume of low-rate credits, which they got from foreign banks. Thus, evidently the country will try to reduce purchasing prices in the near future. Furthermore, China is turning into an exporter. This means that the time to seek new markets has already come for Russians. It is also worth highlighting that being a raw materials supplier is not prospective in the long run and nonprofitable. The country is reaching the moment when the domestic machinery-building market is to be stimulated in order to create a market for ferrous metals and develop Russia's economy on the whole.
Prospects are Visible
At the same time new trends and prospects appeared. The leader in terms of growth rate is container transportation, which rose by 13.8% during the period of January-June.
The development of container transportation is caused by both the global trend and Russia's turning from the planning economy to the market. A huge quantity of private companies was launched to work in the market of consumer goods. Such companies can not supply big consignments, but need to transport production no more than for a wagon. Thus, the combination of relatively small capacity and design for multimodal transportation and door-to-door delivery makes a container almost ideal for such companies.
Meanwhile, another factor influencing container transportation growth is measures taken in the framework of the Conception of the state's support of container flows carried by the Transsib. Particularly, it is block train creating, tariff reduction, train speed increase and the improvement of interaction between railway and port.
However, rail container transportation could be even more efficient for OAO RZD, if they get the right for flexible tariff regulation. Today there is no single container owned by OAO RZD in block trains: the company just sells technological scheme to private companies.
Container transportation is followed by construction materials, the transportation of which grew by 12.4% in H1. Generally, construction materials and minerals delivery depends on the season: sharp rise in the construction period and decrease in winter. This year the situation was quite different. The season has not started yet but the results of OAO RZD show considerable growth of this cargo transportation. This is explained by construction volumes increase in the country's megapolises, as well as by profitability growth of this cargo transportation. In the total carriage volume, construction materials share amounts to over 15%, plus some 3% is taken by cement. Moreover, railway is one of the biggest consumers of the cargo. Road metal used for ballasting of rail groundwork constitutes the lion's share in construction material transportation. According to OAO RZD, in 2004 in the aggregate carriage volume of construction materials road metal for ballasting took over 28%, road metal carriage for railways rose by 11.5% year-on-year.
In 2004 construction materials and minerals transportation by OAO RZD totalled 184 mln tones, cement amounted to over 32 mln tones.
Construction materials and minerals transportation is characterized by regional nature. Up to 97% of the cargo is transported to the domestic market, export is not over 1.5%, wherein the biggest share is destined for the CIS: Kazakhstan, Turkmenia, Azerbaijan, Ukraine and Byelorussia. Some 65% of construction materials and cement is destined for the house and road building in the region. The rest is carried to the construction companies working in the industrial and business centers.
The last in the top-three cargoes with the highest transportation growth rate is timber and logs, which are 8.4% up year-on-year. However, for objective reasons in the near future the dynamics could slow down. The largest share in the aggregate volume of timber and logs rail transportation is taken by the Severnaya (Northern) and October railways. In the Far East, due to the sharp temperature rise in spring, the majority of roads to felling sectors was washed out, which resulted in harvesting stop. Thus, till May the Dalnevostochnaya (Far-Eastern) railway carried only the remainder of timber harvested in winter. In June the situation became critical : there was no timber and logs to carry. By now felling has been resumed but how much time they need to compensate losses is hard to predict.
Quality management
It could be concluded that rail loading growth rate slow down is mostly the result of the market changes. Nevertheless, in today's market situation OAO RZD should not just carry applied volumes, but use a flexible approach to the market: attract new cargo flows, analyze the market, implement flexible tariffs, and meet the clients' needs.
"Today", stated the president of OAO RZD Vladimir Yakunin, "private operators see the clients' needs better than we do, as well as make better offers. Thus, using the same technological base and operating the same infrastructure, we are losing competition with operators in the field of client servicing. This means that we must learn to work with clients, implement differential approach and differentiate services classes. Meeting the clients' needs must become the top priority for our company. We should offer our clients integrated transport services and expand our influence on other rail sectors and transport modes. We must make our operation more transparent, ensure equal access to the rail infrastructure and based on all these, to obtain rail wagon consistent deregulation.
One of the elements of the personal approach should become long-term contracts signing with consignees where financial liabilities will be based on the principle: "carry or pay". Only in this case we can get guaranteed applied volumes on agreed routes and a stable profit, and only thus we can afford to support the decision to offer discounts".
Tatyana Tokareva
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[DETAIL_TEXT] => During the period of January-June, 2005 throughput of the Russian transport totalled 2299.2 bln t/km. However the growth amounted to 2.8% year-on-year, while in 2003 the corresponding index reached 7.4%. What are the key factors that influenced the throughput growth?
Oil Lays Terms
Statistics report that the throughput of rail transport amounted to 905.5 bln t/km, that of truck haulage - to 90.7 bln t/km, of sea and river transport - to 30.7 bln t/km, of air one - 1.3 bln t/km and of pipelines - 1240.2 bln t/km.
The throughput of truck haulage grew best in H1 of 2005 totalling 9.6%. In 2004 the growth amounted to 5.5% year-on-year. Thus, we can speak of stable positive dynamics. Experts explain that by the growing demand for door-to-door delivery and flexible transport mode. Another factor that influenced the truck haulage development is the global trend of container transportation growth. Taking into consideration all these reasons, we can forecast a further rise of truck haulage.
In the first half of 2005 the throughput of pipelines grew by 3.1% year-on-year, while in 2004 the rise amounted to 7.8%. The growth rate decrease, on the one hand, is explained by a slight oil extraction reduction due to the situation with YUKOS and, on the other hand, by the shortening of the transportation distance. After too high crude oil export duties had been imposed, Russian oil companies increased the share transported to the country's refineries.
At the same time the situation in the inland transportation market led to the throughput dropping by 15% against the results of H1 of 2004. The growth rate in 2004 totalled over 23%, which was explained by the measures taken by the Government to stimulate the inland transport development. Today's situation is explained by several factors. Firstly, fuel cost rise made the cheapest transport mode noncompetitive with the railway, as market participants complain. As tank wagon supply considerably exceeded the demand and companies-operators faced stiff competition struggling for cargo, it resulted in a price decrease for rail transportation in privately owned rolling stock. Thus, during the period of April-June, 2005, inland oil transportation in the European part of Russia fell down7.4-fold year-on-year. The head of the Russian Association of Shipping Companies Nikolay Smirnov stated that oil rerouting to other transport modes, such as pipelines and railways for inland transport, means the loss of the lion's share of liquid bulk. Besides, he stated that a considerable share of the river-type vessels closed navigation due to a sharp demand reduction.
Changes as necessity
The backbone of the Russian transport sector is railway which ensures some 80% of the total transportation volume. The results of OAO RZD's operations in H1 show two main trends: the loading growth rate fell down and profit indexes are below the target. Is this a result of imperfect management of the company or of the market changes? A new president of OAO RZD Vladimir Yakunin in his first address to the company's employees voiced the factors, preventing the rail sector from developing.
- Our profitability is minimal, - he stated - while obsolescence is almost critical. Huge investments are badly needed, though our market position is worsening: we lose profitable cargo flows. The company is being reformed and there is the risk of turning not in to infrastructural and carrying company, which takes 50% of the market, as it is set in the reform programme, but into a company providing capital-intensive infrastructure services and performing non-profitable cargo transportation strategically important for the country. At the same time we face fierce competition in the global transport market. We have to compete in the domestic labour and capital market. The gap in scientific, technical and IT innovations is expanding. Management structure, corporate structure and the system of the staff motivation have not been meeting the modern requirements for a long time already. All the challenges are absolutely real. And we should not be deceived by the slight growth of few, mostly quantitative, indicators. Moreover, the accounting system is also much doubted. However, according to our accounts, during the first 6 months of 2005, the loading volume of the Russian railways rose to almost 616 mln. tones, which is 3.8% up year-on-year. Meanwhile, only 48% of the target volumes has been fulfilled. Nevertheless, the country's production growth rate amounted to only 3.4%, which means that OAO RZD keeps ensuring Russia's transport demand.
In H1 oil and products loading grew by only 2.1%, coal - by 2.2% and ferrous metals - by 3%. The developing oil market was affected by the situation with YUKOS, which can not but influence liquid bulk transportation: volumes applied by YUKOS for carrying dropped considerably, while liability succession to the oil giant's contracts of Rosneft was not defined. As a result, tank wagon supply considerably exceeded demand. This particularly concerns the fleet owned by OAO RZD, which had to idle. Companies-operators intensified their search of clients, which influenced the prices level. As private companies, unlike OAO RZD, could offer flexible tariffs, their conditions turned out to be more attractive for cargo owners. Thus, the demand for oil transportation using tank wagons owned by OAO RZD is constantly felling down.
At the same time rail transportation of crude oil also decreases. This could be explained by several reasons. Firstly, due to high oil export duties, outgoing trade is getting down. Secondly, pipeline transport, which is always cheaper than railway, is developing and its capacity is increasing.
There is also a difficult situation with coal rail transportation. The problem arose at the beginning of 2005 when plants of Kuzbass (the Kuznetsk basin) almost failed their plan of coal extraction, as a result, loading volumes were lower than applied. Experts explain the decrease by a global market situation change and extraction drop, as well as by the unjustified tariff policy of the Russian coal producers. Having overvalued their production by 1.5-2 times, they lost their markets, both international and domestic. Despite their claims that during the period of July-December they will reach the target, it is hardly believable. It is almost impossible to believe that extraction will increase sharply, as well as that domestic consumption will grow, especially in summer.
Metal producers also reduced production and loading volumes. On the one hand, it could be connected with stagnation in the sector, on the other hand, we could explain it by the stabilization of the market. Today Russian steel is demanded in the world markets, which is proved by export quota increase in the EU. However, China having provoked a sharp rise of iron ore extraction and ferrous metal production, is almost satisfied with the Russian production today. Moreover, the Chinese steel industry development results in import flow decrease. Thus, the process of demand reduction of the Asian and the Pacific countries for the Russian ore and ferrous metals is absolutely natural. It should also be highlighted that the consequences of the Chinese demand will influence the Russian domestic market for a long time. However, metal producers must not forget that attractive offers were made by China due to huge volume of low-rate credits, which they got from foreign banks. Thus, evidently the country will try to reduce purchasing prices in the near future. Furthermore, China is turning into an exporter. This means that the time to seek new markets has already come for Russians. It is also worth highlighting that being a raw materials supplier is not prospective in the long run and nonprofitable. The country is reaching the moment when the domestic machinery-building market is to be stimulated in order to create a market for ferrous metals and develop Russia's economy on the whole.
Prospects are Visible
At the same time new trends and prospects appeared. The leader in terms of growth rate is container transportation, which rose by 13.8% during the period of January-June.
The development of container transportation is caused by both the global trend and Russia's turning from the planning economy to the market. A huge quantity of private companies was launched to work in the market of consumer goods. Such companies can not supply big consignments, but need to transport production no more than for a wagon. Thus, the combination of relatively small capacity and design for multimodal transportation and door-to-door delivery makes a container almost ideal for such companies.
Meanwhile, another factor influencing container transportation growth is measures taken in the framework of the Conception of the state's support of container flows carried by the Transsib. Particularly, it is block train creating, tariff reduction, train speed increase and the improvement of interaction between railway and port.
However, rail container transportation could be even more efficient for OAO RZD, if they get the right for flexible tariff regulation. Today there is no single container owned by OAO RZD in block trains: the company just sells technological scheme to private companies.
Container transportation is followed by construction materials, the transportation of which grew by 12.4% in H1. Generally, construction materials and minerals delivery depends on the season: sharp rise in the construction period and decrease in winter. This year the situation was quite different. The season has not started yet but the results of OAO RZD show considerable growth of this cargo transportation. This is explained by construction volumes increase in the country's megapolises, as well as by profitability growth of this cargo transportation. In the total carriage volume, construction materials share amounts to over 15%, plus some 3% is taken by cement. Moreover, railway is one of the biggest consumers of the cargo. Road metal used for ballasting of rail groundwork constitutes the lion's share in construction material transportation. According to OAO RZD, in 2004 in the aggregate carriage volume of construction materials road metal for ballasting took over 28%, road metal carriage for railways rose by 11.5% year-on-year.
In 2004 construction materials and minerals transportation by OAO RZD totalled 184 mln tones, cement amounted to over 32 mln tones.
Construction materials and minerals transportation is characterized by regional nature. Up to 97% of the cargo is transported to the domestic market, export is not over 1.5%, wherein the biggest share is destined for the CIS: Kazakhstan, Turkmenia, Azerbaijan, Ukraine and Byelorussia. Some 65% of construction materials and cement is destined for the house and road building in the region. The rest is carried to the construction companies working in the industrial and business centers.
The last in the top-three cargoes with the highest transportation growth rate is timber and logs, which are 8.4% up year-on-year. However, for objective reasons in the near future the dynamics could slow down. The largest share in the aggregate volume of timber and logs rail transportation is taken by the Severnaya (Northern) and October railways. In the Far East, due to the sharp temperature rise in spring, the majority of roads to felling sectors was washed out, which resulted in harvesting stop. Thus, till May the Dalnevostochnaya (Far-Eastern) railway carried only the remainder of timber harvested in winter. In June the situation became critical : there was no timber and logs to carry. By now felling has been resumed but how much time they need to compensate losses is hard to predict.
Quality management
It could be concluded that rail loading growth rate slow down is mostly the result of the market changes. Nevertheless, in today's market situation OAO RZD should not just carry applied volumes, but use a flexible approach to the market: attract new cargo flows, analyze the market, implement flexible tariffs, and meet the clients' needs.
"Today", stated the president of OAO RZD Vladimir Yakunin, "private operators see the clients' needs better than we do, as well as make better offers. Thus, using the same technological base and operating the same infrastructure, we are losing competition with operators in the field of client servicing. This means that we must learn to work with clients, implement differential approach and differentiate services classes. Meeting the clients' needs must become the top priority for our company. We should offer our clients integrated transport services and expand our influence on other rail sectors and transport modes. We must make our operation more transparent, ensure equal access to the rail infrastructure and based on all these, to obtain rail wagon consistent deregulation.
One of the elements of the personal approach should become long-term contracts signing with consignees where financial liabilities will be based on the principle: "carry or pay". Only in this case we can get guaranteed applied volumes on agreed routes and a stable profit, and only thus we can afford to support the decision to offer discounts".
Tatyana Tokareva
[~DETAIL_TEXT] => During the period of January-June, 2005 throughput of the Russian transport totalled 2299.2 bln t/km. However the growth amounted to 2.8% year-on-year, while in 2003 the corresponding index reached 7.4%. What are the key factors that influenced the throughput growth?
Oil Lays Terms
Statistics report that the throughput of rail transport amounted to 905.5 bln t/km, that of truck haulage - to 90.7 bln t/km, of sea and river transport - to 30.7 bln t/km, of air one - 1.3 bln t/km and of pipelines - 1240.2 bln t/km.
The throughput of truck haulage grew best in H1 of 2005 totalling 9.6%. In 2004 the growth amounted to 5.5% year-on-year. Thus, we can speak of stable positive dynamics. Experts explain that by the growing demand for door-to-door delivery and flexible transport mode. Another factor that influenced the truck haulage development is the global trend of container transportation growth. Taking into consideration all these reasons, we can forecast a further rise of truck haulage.
In the first half of 2005 the throughput of pipelines grew by 3.1% year-on-year, while in 2004 the rise amounted to 7.8%. The growth rate decrease, on the one hand, is explained by a slight oil extraction reduction due to the situation with YUKOS and, on the other hand, by the shortening of the transportation distance. After too high crude oil export duties had been imposed, Russian oil companies increased the share transported to the country's refineries.
At the same time the situation in the inland transportation market led to the throughput dropping by 15% against the results of H1 of 2004. The growth rate in 2004 totalled over 23%, which was explained by the measures taken by the Government to stimulate the inland transport development. Today's situation is explained by several factors. Firstly, fuel cost rise made the cheapest transport mode noncompetitive with the railway, as market participants complain. As tank wagon supply considerably exceeded the demand and companies-operators faced stiff competition struggling for cargo, it resulted in a price decrease for rail transportation in privately owned rolling stock. Thus, during the period of April-June, 2005, inland oil transportation in the European part of Russia fell down7.4-fold year-on-year. The head of the Russian Association of Shipping Companies Nikolay Smirnov stated that oil rerouting to other transport modes, such as pipelines and railways for inland transport, means the loss of the lion's share of liquid bulk. Besides, he stated that a considerable share of the river-type vessels closed navigation due to a sharp demand reduction.
Changes as necessity
The backbone of the Russian transport sector is railway which ensures some 80% of the total transportation volume. The results of OAO RZD's operations in H1 show two main trends: the loading growth rate fell down and profit indexes are below the target. Is this a result of imperfect management of the company or of the market changes? A new president of OAO RZD Vladimir Yakunin in his first address to the company's employees voiced the factors, preventing the rail sector from developing.
- Our profitability is minimal, - he stated - while obsolescence is almost critical. Huge investments are badly needed, though our market position is worsening: we lose profitable cargo flows. The company is being reformed and there is the risk of turning not in to infrastructural and carrying company, which takes 50% of the market, as it is set in the reform programme, but into a company providing capital-intensive infrastructure services and performing non-profitable cargo transportation strategically important for the country. At the same time we face fierce competition in the global transport market. We have to compete in the domestic labour and capital market. The gap in scientific, technical and IT innovations is expanding. Management structure, corporate structure and the system of the staff motivation have not been meeting the modern requirements for a long time already. All the challenges are absolutely real. And we should not be deceived by the slight growth of few, mostly quantitative, indicators. Moreover, the accounting system is also much doubted. However, according to our accounts, during the first 6 months of 2005, the loading volume of the Russian railways rose to almost 616 mln. tones, which is 3.8% up year-on-year. Meanwhile, only 48% of the target volumes has been fulfilled. Nevertheless, the country's production growth rate amounted to only 3.4%, which means that OAO RZD keeps ensuring Russia's transport demand.
In H1 oil and products loading grew by only 2.1%, coal - by 2.2% and ferrous metals - by 3%. The developing oil market was affected by the situation with YUKOS, which can not but influence liquid bulk transportation: volumes applied by YUKOS for carrying dropped considerably, while liability succession to the oil giant's contracts of Rosneft was not defined. As a result, tank wagon supply considerably exceeded demand. This particularly concerns the fleet owned by OAO RZD, which had to idle. Companies-operators intensified their search of clients, which influenced the prices level. As private companies, unlike OAO RZD, could offer flexible tariffs, their conditions turned out to be more attractive for cargo owners. Thus, the demand for oil transportation using tank wagons owned by OAO RZD is constantly felling down.
At the same time rail transportation of crude oil also decreases. This could be explained by several reasons. Firstly, due to high oil export duties, outgoing trade is getting down. Secondly, pipeline transport, which is always cheaper than railway, is developing and its capacity is increasing.
There is also a difficult situation with coal rail transportation. The problem arose at the beginning of 2005 when plants of Kuzbass (the Kuznetsk basin) almost failed their plan of coal extraction, as a result, loading volumes were lower than applied. Experts explain the decrease by a global market situation change and extraction drop, as well as by the unjustified tariff policy of the Russian coal producers. Having overvalued their production by 1.5-2 times, they lost their markets, both international and domestic. Despite their claims that during the period of July-December they will reach the target, it is hardly believable. It is almost impossible to believe that extraction will increase sharply, as well as that domestic consumption will grow, especially in summer.
Metal producers also reduced production and loading volumes. On the one hand, it could be connected with stagnation in the sector, on the other hand, we could explain it by the stabilization of the market. Today Russian steel is demanded in the world markets, which is proved by export quota increase in the EU. However, China having provoked a sharp rise of iron ore extraction and ferrous metal production, is almost satisfied with the Russian production today. Moreover, the Chinese steel industry development results in import flow decrease. Thus, the process of demand reduction of the Asian and the Pacific countries for the Russian ore and ferrous metals is absolutely natural. It should also be highlighted that the consequences of the Chinese demand will influence the Russian domestic market for a long time. However, metal producers must not forget that attractive offers were made by China due to huge volume of low-rate credits, which they got from foreign banks. Thus, evidently the country will try to reduce purchasing prices in the near future. Furthermore, China is turning into an exporter. This means that the time to seek new markets has already come for Russians. It is also worth highlighting that being a raw materials supplier is not prospective in the long run and nonprofitable. The country is reaching the moment when the domestic machinery-building market is to be stimulated in order to create a market for ferrous metals and develop Russia's economy on the whole.
Prospects are Visible
At the same time new trends and prospects appeared. The leader in terms of growth rate is container transportation, which rose by 13.8% during the period of January-June.
The development of container transportation is caused by both the global trend and Russia's turning from the planning economy to the market. A huge quantity of private companies was launched to work in the market of consumer goods. Such companies can not supply big consignments, but need to transport production no more than for a wagon. Thus, the combination of relatively small capacity and design for multimodal transportation and door-to-door delivery makes a container almost ideal for such companies.
Meanwhile, another factor influencing container transportation growth is measures taken in the framework of the Conception of the state's support of container flows carried by the Transsib. Particularly, it is block train creating, tariff reduction, train speed increase and the improvement of interaction between railway and port.
However, rail container transportation could be even more efficient for OAO RZD, if they get the right for flexible tariff regulation. Today there is no single container owned by OAO RZD in block trains: the company just sells technological scheme to private companies.
Container transportation is followed by construction materials, the transportation of which grew by 12.4% in H1. Generally, construction materials and minerals delivery depends on the season: sharp rise in the construction period and decrease in winter. This year the situation was quite different. The season has not started yet but the results of OAO RZD show considerable growth of this cargo transportation. This is explained by construction volumes increase in the country's megapolises, as well as by profitability growth of this cargo transportation. In the total carriage volume, construction materials share amounts to over 15%, plus some 3% is taken by cement. Moreover, railway is one of the biggest consumers of the cargo. Road metal used for ballasting of rail groundwork constitutes the lion's share in construction material transportation. According to OAO RZD, in 2004 in the aggregate carriage volume of construction materials road metal for ballasting took over 28%, road metal carriage for railways rose by 11.5% year-on-year.
In 2004 construction materials and minerals transportation by OAO RZD totalled 184 mln tones, cement amounted to over 32 mln tones.
Construction materials and minerals transportation is characterized by regional nature. Up to 97% of the cargo is transported to the domestic market, export is not over 1.5%, wherein the biggest share is destined for the CIS: Kazakhstan, Turkmenia, Azerbaijan, Ukraine and Byelorussia. Some 65% of construction materials and cement is destined for the house and road building in the region. The rest is carried to the construction companies working in the industrial and business centers.
The last in the top-three cargoes with the highest transportation growth rate is timber and logs, which are 8.4% up year-on-year. However, for objective reasons in the near future the dynamics could slow down. The largest share in the aggregate volume of timber and logs rail transportation is taken by the Severnaya (Northern) and October railways. In the Far East, due to the sharp temperature rise in spring, the majority of roads to felling sectors was washed out, which resulted in harvesting stop. Thus, till May the Dalnevostochnaya (Far-Eastern) railway carried only the remainder of timber harvested in winter. In June the situation became critical : there was no timber and logs to carry. By now felling has been resumed but how much time they need to compensate losses is hard to predict.
Quality management
It could be concluded that rail loading growth rate slow down is mostly the result of the market changes. Nevertheless, in today's market situation OAO RZD should not just carry applied volumes, but use a flexible approach to the market: attract new cargo flows, analyze the market, implement flexible tariffs, and meet the clients' needs.
"Today", stated the president of OAO RZD Vladimir Yakunin, "private operators see the clients' needs better than we do, as well as make better offers. Thus, using the same technological base and operating the same infrastructure, we are losing competition with operators in the field of client servicing. This means that we must learn to work with clients, implement differential approach and differentiate services classes. Meeting the clients' needs must become the top priority for our company. We should offer our clients integrated transport services and expand our influence on other rail sectors and transport modes. We must make our operation more transparent, ensure equal access to the rail infrastructure and based on all these, to obtain rail wagon consistent deregulation.
One of the elements of the personal approach should become long-term contracts signing with consignees where financial liabilities will be based on the principle: "carry or pay". Only in this case we can get guaranteed applied volumes on agreed routes and a stable profit, and only thus we can afford to support the decision to offer discounts".
Tatyana Tokareva
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[DETAIL_TEXT] => China Comes to Murmansk
At the meeting with the Chinese Minister of Communications Chzhan Sun Syan, the RF Minister of Transport Igor Levitin offered the Chinese side to participate in the construction of a container terminal in the port of Murmansk.
The offer can be explained by the fact that the USA is discussing the opportunity to re-direct part of the freight flow, going from America to China and Russia. Now the flow includes 18 million TEU annually, wherein 4 millions are to be transported as transit via the Russian Federation. It will enable to reduce the time of delivery by a month and decrease transportation expenses by 30%.
After a careful examination, the Chinese side showed interest in the project.
Block Train Baltica-Transit Set Record
The Director of freight transportation management of Latvijas Dzelzcels (the Latvian Railway, LDz) Eric Shmucksts said that June 2005 was a month of stable and dynamic work on train reception.
In June, the stable flow of containerized cargo enabled the company to form and dispatch seven block trains. It is a new record set since the block train Baltica-Transit was put into operation. The train transports cargo from Latvia and Estonia.
About 2,199 loaded wagons were delivered daily, 3.6% up year-on-year. The average daily throughput of LDz increased by 3% to 47.1 million t/km. year-on-year. "Baltijas Expresses" and "Baltijas Transita Service" private companies handled 10.3% (5.4 million tk/m.) of the Latvian transportation volume.
The turnover of freight wagons was 4.27 days, 8.8 hours less comparing to last June.
Oil and products make 36.7% of the total transportation, mineral fertilizers make 17.4% and coal makes 39.3%.
The main freight flow goes via the Indra-Bigosovo border crossing to Latvia. So, Daugavpils station is overloaded.
In June 2005, the Lithuanian Railway received on average 1,056 loaded wagons, 11% down year-on-year. The Estonian Railway received 1,720 loaded wagons, 3.3% down year-on-year.
Russia-Finland: "Northern Lights"
On June 28, in the framework of the meeting between the president of OAO RZD Vladimir Yakunin and the head of VR Group Ltd. (Finnish Railways) Henry Kuitunnen, the railway companies signed an Agreement to launch freight transportation by the block train "Northern Lights" on the route Finland-Moscow-Finland.
The Russian side was represented by the head of Transcontainer (an affiliate of OAO RZD specialized in container transportaition) Peter Baskakov, and the Finnish one by the director of VR Cargo (an affiliate of the Finnish Railways) Illka Seppyanen.
The subject of the Agreement is the launch of the block train "Northern Lights" on the route Finland-Moscow-Finland and that of transportation-forwarding services provided by the block train. The Agreement envisages the responsibility of the sides for the transportation and delivery of cargo in accordance with the block train schedule, as well as for the free running of the block train according to the schedule etc.
Basis for Transportation through North-South Corridor
"The Rail Line Kazvin-Resht-Astara should become the basis for the transportation through the North-South corridor", the former CEO of OAO RZD Gennady Fadeyev believes.
"Iran is Russia's strategic partner, not only in the energy sector, but equally in transportation. That implies a continuous traffic of high volumes of cargo from Europe to the Gulf states. With this in mind, the development of cargo traffic between our countries stands high on OAO RZD priority list", Gennady Fadeyev said in Tehran, when signing the Agreement on Creating an International Consortium to Build a Rail Line Kazvin-Resht-Astara. "We don't just talk, we also do work. Here is a concrete example: in a short period of time there was built a rail access in the North-South corridor that connected the Russian rail net with the port of Olya. As a result, last year traffic volumes in the North-South corridor were up to 5,800,000 tons.
The undeveloped infrastructure of Olya does not provide enough capacity for the optimum flow of cargo in the North-South corridor. Strategic plans call to construct not one or two, but many similar corridors. In this respect the line Kazvin-Resht-Astara should become the basis for a transportation corridor, since future traffic volume in this direction is assessed at 20 million tons," the head of OAO RZD stressed.
The construction of the rail line Kazvin-Astara in the territory of Iran is planned in two stages. The first stage will be Kazvin-Resht-the port of Bandar-Anzali, the second - Resht-Astara.
The line Kazvin-Resht-Bandar-Anzali starts from the Line Tehran-Tebriz. The new line will be 205 kilometers long, wherein 42 kilometers will be double-track line. 15 stations and 38 tunnels are to be built along the line.
The section Resht-Astara will be 170 km long. Initial plans call to build a single-track line and add a second track in future. The line will have 5 stations.
On the Iranian-Azeri border point Astara, narrow and wide gauge lines (6 kilometers in Iran and 3 kilometers in Azerbaijan) and a 100 meter bridge across the border river of Astarachai are to be built.
New Ferry Line: Klaipeda-Baltiysk-Karlshamn
The Lithuanian ferry company Lisco Baltic Service (LBS) opened a new ferry line to Baltiysk. The new line will connect Russia with Lithuania and Sweden.
The ferry operating on the new line can transport 250 passengers and 95 lorries with semi-trailers. The ferry leaves the port at 12p.m. every Saturday. In seven hours it reaches the port of Baltiysk. On Sunday morning the ferry heads back to Klaipeda, to depart to Kalshanm (Sweden) afterwards.
This route can be attractive for passengers, as well as for Russian and Scandinavian cargo carriers.
LBS company owns 7 ferries.
"Astana" Is Disappointed in Makhachkala
The first Kazakhstan oil tanker "Astana" has transported over 100 thousand tons of Kazakhstan oil to Makhachkala and Baku.
The engineer-in-chief of the National sea shipping company Kazmortransflot Nikolai Lagutkin said that, since May 24, the tanker "Astana" has made 12 trips to Baku and Makhachkala. "The only thing disappointing us the port of Makhachkala. The Russians have restricted the immersion of the vessels calling at the port to 6.5 meters (the immersion of the tanker is 7 meters). And they do not give any reason for that. As a result, we lose 1 thousand tons of oil due to small freight charges", said N. Lagutkin.
BP Azerbaijan Started Oil Transportation By Rail
BP Azerbaijan has begun transporting oil from "Azeri" field by rail, Company's vice president Phil Home revealed.
He said that oil is transported from Azpetrol company's terminal, but it has not reached the Georgian port of Batumi yet, where it will be loaded on tankers. Currently the company has dispatched around 40,000 barrels of oil. But supplies are still not stable, as they depend on the loading of the main export pipeline Baku-Tbilisi-Ceyhan (approximately 700,000 barrels have been loaded) and that of the Baku-Supsa pipeline. For example, at the beginning of August, BP and its partners stopped pipeline oil shipments from Azerbaijan to the Georgian port of Supsa on the Black Sea because of maintenance issues. The pipeline was blocked for 10 days. Azerbaijan International Operating Co., operated by BP, did not stop production. Oil was shipped to the Russian port of Novorossiysk on the Black Sea.
Oil transportation by rail carriages is commercially more profitable than transportation via the Baku-Novorossiysk pipeline, where oil gets mixed and its quality drops down, leading to a price reduction. BP Azerbaijan asserts the price difference makes USD4-5 per barrel.
DFDS in Alliance with Sovcomflot
DFDS signed Heads of Agreement with Rosmorport and the Russian Federal Agency for Maritime and River Transport to operate a rail ferry service between the Russian ports of Ust Luga and Baltiysk (Kaliningrad) and the German port of Sassnitz/Mukran.
The service will commence when terminal facilities in Russia are ready in the middle of 2006.
As part of the preparations - and to secure sufficient freight volumes - DFDS has signed a co-operation agreement with the state-owned, Russian shipping company Sovcomflot. Sovcomflot has operated a ro-ro freight service between Kiel and St. Petersburg under the name SCF St. Petersburg Line since 2002. DFDS now joins a conference named SCF DFDS Line. Sovcomflot and DFDS will each deploy one ro-ro vessel and together offer two weekly departures in either direction.
DFDS and Sovcomflot will both own shares in the line' shipping agency in St. Petersburg. DFDS will assume responsibility for the agency in Kiel, from where DFDS - through its subsidiary AB LISCO Baltic Service - already operates a ro-pax service to Klaipeda, Lithuania.
Far East: New Tunnel
A new 3,890-meter long railway tunnel, named Kuznetsovsky, will be built in the Far East. The tunnel will pass through the Sikhote-Alinsky mountain ridge connecting Komsomolsk-on-Amur and the Pacific port Vanino. The Dalnevostochnaya (Far Eastern) Railway will invest RUR 71 million into the project.
The general designers of the project are the Novosibirsk institute Bamtonnelproject and Dalgiprotrans (Khabarovsk). The new tunnel will enable to increase the weight of the freight trains, as well as the cargo flow to the Vanino port and to Sovetskaya Gavan, reduce additional expenses on trains going through the mountains. The project's delivery term is 6 years. The construction budget for the tunnel and the 20-kilometer bypass is 15 billion rubles.
Additional transportation of oil products, coal, timber, metals will be fulfilled along the Baikalo-Amurskaya Railway to the Vanino port during the next years. The Dalnevostochnaya Railway has developed a large programme of reconstruction and modernization of the so-called "Northern Wide Passage", which includes renewal of the upper railway stations.
[~DETAIL_TEXT] => China Comes to Murmansk
At the meeting with the Chinese Minister of Communications Chzhan Sun Syan, the RF Minister of Transport Igor Levitin offered the Chinese side to participate in the construction of a container terminal in the port of Murmansk.
The offer can be explained by the fact that the USA is discussing the opportunity to re-direct part of the freight flow, going from America to China and Russia. Now the flow includes 18 million TEU annually, wherein 4 millions are to be transported as transit via the Russian Federation. It will enable to reduce the time of delivery by a month and decrease transportation expenses by 30%.
After a careful examination, the Chinese side showed interest in the project.
Block Train Baltica-Transit Set Record
The Director of freight transportation management of Latvijas Dzelzcels (the Latvian Railway, LDz) Eric Shmucksts said that June 2005 was a month of stable and dynamic work on train reception.
In June, the stable flow of containerized cargo enabled the company to form and dispatch seven block trains. It is a new record set since the block train Baltica-Transit was put into operation. The train transports cargo from Latvia and Estonia.
About 2,199 loaded wagons were delivered daily, 3.6% up year-on-year. The average daily throughput of LDz increased by 3% to 47.1 million t/km. year-on-year. "Baltijas Expresses" and "Baltijas Transita Service" private companies handled 10.3% (5.4 million tk/m.) of the Latvian transportation volume.
The turnover of freight wagons was 4.27 days, 8.8 hours less comparing to last June.
Oil and products make 36.7% of the total transportation, mineral fertilizers make 17.4% and coal makes 39.3%.
The main freight flow goes via the Indra-Bigosovo border crossing to Latvia. So, Daugavpils station is overloaded.
In June 2005, the Lithuanian Railway received on average 1,056 loaded wagons, 11% down year-on-year. The Estonian Railway received 1,720 loaded wagons, 3.3% down year-on-year.
Russia-Finland: "Northern Lights"
On June 28, in the framework of the meeting between the president of OAO RZD Vladimir Yakunin and the head of VR Group Ltd. (Finnish Railways) Henry Kuitunnen, the railway companies signed an Agreement to launch freight transportation by the block train "Northern Lights" on the route Finland-Moscow-Finland.
The Russian side was represented by the head of Transcontainer (an affiliate of OAO RZD specialized in container transportaition) Peter Baskakov, and the Finnish one by the director of VR Cargo (an affiliate of the Finnish Railways) Illka Seppyanen.
The subject of the Agreement is the launch of the block train "Northern Lights" on the route Finland-Moscow-Finland and that of transportation-forwarding services provided by the block train. The Agreement envisages the responsibility of the sides for the transportation and delivery of cargo in accordance with the block train schedule, as well as for the free running of the block train according to the schedule etc.
Basis for Transportation through North-South Corridor
"The Rail Line Kazvin-Resht-Astara should become the basis for the transportation through the North-South corridor", the former CEO of OAO RZD Gennady Fadeyev believes.
"Iran is Russia's strategic partner, not only in the energy sector, but equally in transportation. That implies a continuous traffic of high volumes of cargo from Europe to the Gulf states. With this in mind, the development of cargo traffic between our countries stands high on OAO RZD priority list", Gennady Fadeyev said in Tehran, when signing the Agreement on Creating an International Consortium to Build a Rail Line Kazvin-Resht-Astara. "We don't just talk, we also do work. Here is a concrete example: in a short period of time there was built a rail access in the North-South corridor that connected the Russian rail net with the port of Olya. As a result, last year traffic volumes in the North-South corridor were up to 5,800,000 tons.
The undeveloped infrastructure of Olya does not provide enough capacity for the optimum flow of cargo in the North-South corridor. Strategic plans call to construct not one or two, but many similar corridors. In this respect the line Kazvin-Resht-Astara should become the basis for a transportation corridor, since future traffic volume in this direction is assessed at 20 million tons," the head of OAO RZD stressed.
The construction of the rail line Kazvin-Astara in the territory of Iran is planned in two stages. The first stage will be Kazvin-Resht-the port of Bandar-Anzali, the second - Resht-Astara.
The line Kazvin-Resht-Bandar-Anzali starts from the Line Tehran-Tebriz. The new line will be 205 kilometers long, wherein 42 kilometers will be double-track line. 15 stations and 38 tunnels are to be built along the line.
The section Resht-Astara will be 170 km long. Initial plans call to build a single-track line and add a second track in future. The line will have 5 stations.
On the Iranian-Azeri border point Astara, narrow and wide gauge lines (6 kilometers in Iran and 3 kilometers in Azerbaijan) and a 100 meter bridge across the border river of Astarachai are to be built.
New Ferry Line: Klaipeda-Baltiysk-Karlshamn
The Lithuanian ferry company Lisco Baltic Service (LBS) opened a new ferry line to Baltiysk. The new line will connect Russia with Lithuania and Sweden.
The ferry operating on the new line can transport 250 passengers and 95 lorries with semi-trailers. The ferry leaves the port at 12p.m. every Saturday. In seven hours it reaches the port of Baltiysk. On Sunday morning the ferry heads back to Klaipeda, to depart to Kalshanm (Sweden) afterwards.
This route can be attractive for passengers, as well as for Russian and Scandinavian cargo carriers.
LBS company owns 7 ferries.
"Astana" Is Disappointed in Makhachkala
The first Kazakhstan oil tanker "Astana" has transported over 100 thousand tons of Kazakhstan oil to Makhachkala and Baku.
The engineer-in-chief of the National sea shipping company Kazmortransflot Nikolai Lagutkin said that, since May 24, the tanker "Astana" has made 12 trips to Baku and Makhachkala. "The only thing disappointing us the port of Makhachkala. The Russians have restricted the immersion of the vessels calling at the port to 6.5 meters (the immersion of the tanker is 7 meters). And they do not give any reason for that. As a result, we lose 1 thousand tons of oil due to small freight charges", said N. Lagutkin.
BP Azerbaijan Started Oil Transportation By Rail
BP Azerbaijan has begun transporting oil from "Azeri" field by rail, Company's vice president Phil Home revealed.
He said that oil is transported from Azpetrol company's terminal, but it has not reached the Georgian port of Batumi yet, where it will be loaded on tankers. Currently the company has dispatched around 40,000 barrels of oil. But supplies are still not stable, as they depend on the loading of the main export pipeline Baku-Tbilisi-Ceyhan (approximately 700,000 barrels have been loaded) and that of the Baku-Supsa pipeline. For example, at the beginning of August, BP and its partners stopped pipeline oil shipments from Azerbaijan to the Georgian port of Supsa on the Black Sea because of maintenance issues. The pipeline was blocked for 10 days. Azerbaijan International Operating Co., operated by BP, did not stop production. Oil was shipped to the Russian port of Novorossiysk on the Black Sea.
Oil transportation by rail carriages is commercially more profitable than transportation via the Baku-Novorossiysk pipeline, where oil gets mixed and its quality drops down, leading to a price reduction. BP Azerbaijan asserts the price difference makes USD4-5 per barrel.
DFDS in Alliance with Sovcomflot
DFDS signed Heads of Agreement with Rosmorport and the Russian Federal Agency for Maritime and River Transport to operate a rail ferry service between the Russian ports of Ust Luga and Baltiysk (Kaliningrad) and the German port of Sassnitz/Mukran.
The service will commence when terminal facilities in Russia are ready in the middle of 2006.
As part of the preparations - and to secure sufficient freight volumes - DFDS has signed a co-operation agreement with the state-owned, Russian shipping company Sovcomflot. Sovcomflot has operated a ro-ro freight service between Kiel and St. Petersburg under the name SCF St. Petersburg Line since 2002. DFDS now joins a conference named SCF DFDS Line. Sovcomflot and DFDS will each deploy one ro-ro vessel and together offer two weekly departures in either direction.
DFDS and Sovcomflot will both own shares in the line' shipping agency in St. Petersburg. DFDS will assume responsibility for the agency in Kiel, from where DFDS - through its subsidiary AB LISCO Baltic Service - already operates a ro-pax service to Klaipeda, Lithuania.
Far East: New Tunnel
A new 3,890-meter long railway tunnel, named Kuznetsovsky, will be built in the Far East. The tunnel will pass through the Sikhote-Alinsky mountain ridge connecting Komsomolsk-on-Amur and the Pacific port Vanino. The Dalnevostochnaya (Far Eastern) Railway will invest RUR 71 million into the project.
The general designers of the project are the Novosibirsk institute Bamtonnelproject and Dalgiprotrans (Khabarovsk). The new tunnel will enable to increase the weight of the freight trains, as well as the cargo flow to the Vanino port and to Sovetskaya Gavan, reduce additional expenses on trains going through the mountains. The project's delivery term is 6 years. The construction budget for the tunnel and the 20-kilometer bypass is 15 billion rubles.
Additional transportation of oil products, coal, timber, metals will be fulfilled along the Baikalo-Amurskaya Railway to the Vanino port during the next years. The Dalnevostochnaya Railway has developed a large programme of reconstruction and modernization of the so-called "Northern Wide Passage", which includes renewal of the upper railway stations.
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[DETAIL_TEXT] => China Comes to Murmansk
At the meeting with the Chinese Minister of Communications Chzhan Sun Syan, the RF Minister of Transport Igor Levitin offered the Chinese side to participate in the construction of a container terminal in the port of Murmansk.
The offer can be explained by the fact that the USA is discussing the opportunity to re-direct part of the freight flow, going from America to China and Russia. Now the flow includes 18 million TEU annually, wherein 4 millions are to be transported as transit via the Russian Federation. It will enable to reduce the time of delivery by a month and decrease transportation expenses by 30%.
After a careful examination, the Chinese side showed interest in the project.
Block Train Baltica-Transit Set Record
The Director of freight transportation management of Latvijas Dzelzcels (the Latvian Railway, LDz) Eric Shmucksts said that June 2005 was a month of stable and dynamic work on train reception.
In June, the stable flow of containerized cargo enabled the company to form and dispatch seven block trains. It is a new record set since the block train Baltica-Transit was put into operation. The train transports cargo from Latvia and Estonia.
About 2,199 loaded wagons were delivered daily, 3.6% up year-on-year. The average daily throughput of LDz increased by 3% to 47.1 million t/km. year-on-year. "Baltijas Expresses" and "Baltijas Transita Service" private companies handled 10.3% (5.4 million tk/m.) of the Latvian transportation volume.
The turnover of freight wagons was 4.27 days, 8.8 hours less comparing to last June.
Oil and products make 36.7% of the total transportation, mineral fertilizers make 17.4% and coal makes 39.3%.
The main freight flow goes via the Indra-Bigosovo border crossing to Latvia. So, Daugavpils station is overloaded.
In June 2005, the Lithuanian Railway received on average 1,056 loaded wagons, 11% down year-on-year. The Estonian Railway received 1,720 loaded wagons, 3.3% down year-on-year.
Russia-Finland: "Northern Lights"
On June 28, in the framework of the meeting between the president of OAO RZD Vladimir Yakunin and the head of VR Group Ltd. (Finnish Railways) Henry Kuitunnen, the railway companies signed an Agreement to launch freight transportation by the block train "Northern Lights" on the route Finland-Moscow-Finland.
The Russian side was represented by the head of Transcontainer (an affiliate of OAO RZD specialized in container transportaition) Peter Baskakov, and the Finnish one by the director of VR Cargo (an affiliate of the Finnish Railways) Illka Seppyanen.
The subject of the Agreement is the launch of the block train "Northern Lights" on the route Finland-Moscow-Finland and that of transportation-forwarding services provided by the block train. The Agreement envisages the responsibility of the sides for the transportation and delivery of cargo in accordance with the block train schedule, as well as for the free running of the block train according to the schedule etc.
Basis for Transportation through North-South Corridor
"The Rail Line Kazvin-Resht-Astara should become the basis for the transportation through the North-South corridor", the former CEO of OAO RZD Gennady Fadeyev believes.
"Iran is Russia's strategic partner, not only in the energy sector, but equally in transportation. That implies a continuous traffic of high volumes of cargo from Europe to the Gulf states. With this in mind, the development of cargo traffic between our countries stands high on OAO RZD priority list", Gennady Fadeyev said in Tehran, when signing the Agreement on Creating an International Consortium to Build a Rail Line Kazvin-Resht-Astara. "We don't just talk, we also do work. Here is a concrete example: in a short period of time there was built a rail access in the North-South corridor that connected the Russian rail net with the port of Olya. As a result, last year traffic volumes in the North-South corridor were up to 5,800,000 tons.
The undeveloped infrastructure of Olya does not provide enough capacity for the optimum flow of cargo in the North-South corridor. Strategic plans call to construct not one or two, but many similar corridors. In this respect the line Kazvin-Resht-Astara should become the basis for a transportation corridor, since future traffic volume in this direction is assessed at 20 million tons," the head of OAO RZD stressed.
The construction of the rail line Kazvin-Astara in the territory of Iran is planned in two stages. The first stage will be Kazvin-Resht-the port of Bandar-Anzali, the second - Resht-Astara.
The line Kazvin-Resht-Bandar-Anzali starts from the Line Tehran-Tebriz. The new line will be 205 kilometers long, wherein 42 kilometers will be double-track line. 15 stations and 38 tunnels are to be built along the line.
The section Resht-Astara will be 170 km long. Initial plans call to build a single-track line and add a second track in future. The line will have 5 stations.
On the Iranian-Azeri border point Astara, narrow and wide gauge lines (6 kilometers in Iran and 3 kilometers in Azerbaijan) and a 100 meter bridge across the border river of Astarachai are to be built.
New Ferry Line: Klaipeda-Baltiysk-Karlshamn
The Lithuanian ferry company Lisco Baltic Service (LBS) opened a new ferry line to Baltiysk. The new line will connect Russia with Lithuania and Sweden.
The ferry operating on the new line can transport 250 passengers and 95 lorries with semi-trailers. The ferry leaves the port at 12p.m. every Saturday. In seven hours it reaches the port of Baltiysk. On Sunday morning the ferry heads back to Klaipeda, to depart to Kalshanm (Sweden) afterwards.
This route can be attractive for passengers, as well as for Russian and Scandinavian cargo carriers.
LBS company owns 7 ferries.
"Astana" Is Disappointed in Makhachkala
The first Kazakhstan oil tanker "Astana" has transported over 100 thousand tons of Kazakhstan oil to Makhachkala and Baku.
The engineer-in-chief of the National sea shipping company Kazmortransflot Nikolai Lagutkin said that, since May 24, the tanker "Astana" has made 12 trips to Baku and Makhachkala. "The only thing disappointing us the port of Makhachkala. The Russians have restricted the immersion of the vessels calling at the port to 6.5 meters (the immersion of the tanker is 7 meters). And they do not give any reason for that. As a result, we lose 1 thousand tons of oil due to small freight charges", said N. Lagutkin.
BP Azerbaijan Started Oil Transportation By Rail
BP Azerbaijan has begun transporting oil from "Azeri" field by rail, Company's vice president Phil Home revealed.
He said that oil is transported from Azpetrol company's terminal, but it has not reached the Georgian port of Batumi yet, where it will be loaded on tankers. Currently the company has dispatched around 40,000 barrels of oil. But supplies are still not stable, as they depend on the loading of the main export pipeline Baku-Tbilisi-Ceyhan (approximately 700,000 barrels have been loaded) and that of the Baku-Supsa pipeline. For example, at the beginning of August, BP and its partners stopped pipeline oil shipments from Azerbaijan to the Georgian port of Supsa on the Black Sea because of maintenance issues. The pipeline was blocked for 10 days. Azerbaijan International Operating Co., operated by BP, did not stop production. Oil was shipped to the Russian port of Novorossiysk on the Black Sea.
Oil transportation by rail carriages is commercially more profitable than transportation via the Baku-Novorossiysk pipeline, where oil gets mixed and its quality drops down, leading to a price reduction. BP Azerbaijan asserts the price difference makes USD4-5 per barrel.
DFDS in Alliance with Sovcomflot
DFDS signed Heads of Agreement with Rosmorport and the Russian Federal Agency for Maritime and River Transport to operate a rail ferry service between the Russian ports of Ust Luga and Baltiysk (Kaliningrad) and the German port of Sassnitz/Mukran.
The service will commence when terminal facilities in Russia are ready in the middle of 2006.
As part of the preparations - and to secure sufficient freight volumes - DFDS has signed a co-operation agreement with the state-owned, Russian shipping company Sovcomflot. Sovcomflot has operated a ro-ro freight service between Kiel and St. Petersburg under the name SCF St. Petersburg Line since 2002. DFDS now joins a conference named SCF DFDS Line. Sovcomflot and DFDS will each deploy one ro-ro vessel and together offer two weekly departures in either direction.
DFDS and Sovcomflot will both own shares in the line' shipping agency in St. Petersburg. DFDS will assume responsibility for the agency in Kiel, from where DFDS - through its subsidiary AB LISCO Baltic Service - already operates a ro-pax service to Klaipeda, Lithuania.
Far East: New Tunnel
A new 3,890-meter long railway tunnel, named Kuznetsovsky, will be built in the Far East. The tunnel will pass through the Sikhote-Alinsky mountain ridge connecting Komsomolsk-on-Amur and the Pacific port Vanino. The Dalnevostochnaya (Far Eastern) Railway will invest RUR 71 million into the project.
The general designers of the project are the Novosibirsk institute Bamtonnelproject and Dalgiprotrans (Khabarovsk). The new tunnel will enable to increase the weight of the freight trains, as well as the cargo flow to the Vanino port and to Sovetskaya Gavan, reduce additional expenses on trains going through the mountains. The project's delivery term is 6 years. The construction budget for the tunnel and the 20-kilometer bypass is 15 billion rubles.
Additional transportation of oil products, coal, timber, metals will be fulfilled along the Baikalo-Amurskaya Railway to the Vanino port during the next years. The Dalnevostochnaya Railway has developed a large programme of reconstruction and modernization of the so-called "Northern Wide Passage", which includes renewal of the upper railway stations.
[~DETAIL_TEXT] => China Comes to Murmansk
At the meeting with the Chinese Minister of Communications Chzhan Sun Syan, the RF Minister of Transport Igor Levitin offered the Chinese side to participate in the construction of a container terminal in the port of Murmansk.
The offer can be explained by the fact that the USA is discussing the opportunity to re-direct part of the freight flow, going from America to China and Russia. Now the flow includes 18 million TEU annually, wherein 4 millions are to be transported as transit via the Russian Federation. It will enable to reduce the time of delivery by a month and decrease transportation expenses by 30%.
After a careful examination, the Chinese side showed interest in the project.
Block Train Baltica-Transit Set Record
The Director of freight transportation management of Latvijas Dzelzcels (the Latvian Railway, LDz) Eric Shmucksts said that June 2005 was a month of stable and dynamic work on train reception.
In June, the stable flow of containerized cargo enabled the company to form and dispatch seven block trains. It is a new record set since the block train Baltica-Transit was put into operation. The train transports cargo from Latvia and Estonia.
About 2,199 loaded wagons were delivered daily, 3.6% up year-on-year. The average daily throughput of LDz increased by 3% to 47.1 million t/km. year-on-year. "Baltijas Expresses" and "Baltijas Transita Service" private companies handled 10.3% (5.4 million tk/m.) of the Latvian transportation volume.
The turnover of freight wagons was 4.27 days, 8.8 hours less comparing to last June.
Oil and products make 36.7% of the total transportation, mineral fertilizers make 17.4% and coal makes 39.3%.
The main freight flow goes via the Indra-Bigosovo border crossing to Latvia. So, Daugavpils station is overloaded.
In June 2005, the Lithuanian Railway received on average 1,056 loaded wagons, 11% down year-on-year. The Estonian Railway received 1,720 loaded wagons, 3.3% down year-on-year.
Russia-Finland: "Northern Lights"
On June 28, in the framework of the meeting between the president of OAO RZD Vladimir Yakunin and the head of VR Group Ltd. (Finnish Railways) Henry Kuitunnen, the railway companies signed an Agreement to launch freight transportation by the block train "Northern Lights" on the route Finland-Moscow-Finland.
The Russian side was represented by the head of Transcontainer (an affiliate of OAO RZD specialized in container transportaition) Peter Baskakov, and the Finnish one by the director of VR Cargo (an affiliate of the Finnish Railways) Illka Seppyanen.
The subject of the Agreement is the launch of the block train "Northern Lights" on the route Finland-Moscow-Finland and that of transportation-forwarding services provided by the block train. The Agreement envisages the responsibility of the sides for the transportation and delivery of cargo in accordance with the block train schedule, as well as for the free running of the block train according to the schedule etc.
Basis for Transportation through North-South Corridor
"The Rail Line Kazvin-Resht-Astara should become the basis for the transportation through the North-South corridor", the former CEO of OAO RZD Gennady Fadeyev believes.
"Iran is Russia's strategic partner, not only in the energy sector, but equally in transportation. That implies a continuous traffic of high volumes of cargo from Europe to the Gulf states. With this in mind, the development of cargo traffic between our countries stands high on OAO RZD priority list", Gennady Fadeyev said in Tehran, when signing the Agreement on Creating an International Consortium to Build a Rail Line Kazvin-Resht-Astara. "We don't just talk, we also do work. Here is a concrete example: in a short period of time there was built a rail access in the North-South corridor that connected the Russian rail net with the port of Olya. As a result, last year traffic volumes in the North-South corridor were up to 5,800,000 tons.
The undeveloped infrastructure of Olya does not provide enough capacity for the optimum flow of cargo in the North-South corridor. Strategic plans call to construct not one or two, but many similar corridors. In this respect the line Kazvin-Resht-Astara should become the basis for a transportation corridor, since future traffic volume in this direction is assessed at 20 million tons," the head of OAO RZD stressed.
The construction of the rail line Kazvin-Astara in the territory of Iran is planned in two stages. The first stage will be Kazvin-Resht-the port of Bandar-Anzali, the second - Resht-Astara.
The line Kazvin-Resht-Bandar-Anzali starts from the Line Tehran-Tebriz. The new line will be 205 kilometers long, wherein 42 kilometers will be double-track line. 15 stations and 38 tunnels are to be built along the line.
The section Resht-Astara will be 170 km long. Initial plans call to build a single-track line and add a second track in future. The line will have 5 stations.
On the Iranian-Azeri border point Astara, narrow and wide gauge lines (6 kilometers in Iran and 3 kilometers in Azerbaijan) and a 100 meter bridge across the border river of Astarachai are to be built.
New Ferry Line: Klaipeda-Baltiysk-Karlshamn
The Lithuanian ferry company Lisco Baltic Service (LBS) opened a new ferry line to Baltiysk. The new line will connect Russia with Lithuania and Sweden.
The ferry operating on the new line can transport 250 passengers and 95 lorries with semi-trailers. The ferry leaves the port at 12p.m. every Saturday. In seven hours it reaches the port of Baltiysk. On Sunday morning the ferry heads back to Klaipeda, to depart to Kalshanm (Sweden) afterwards.
This route can be attractive for passengers, as well as for Russian and Scandinavian cargo carriers.
LBS company owns 7 ferries.
"Astana" Is Disappointed in Makhachkala
The first Kazakhstan oil tanker "Astana" has transported over 100 thousand tons of Kazakhstan oil to Makhachkala and Baku.
The engineer-in-chief of the National sea shipping company Kazmortransflot Nikolai Lagutkin said that, since May 24, the tanker "Astana" has made 12 trips to Baku and Makhachkala. "The only thing disappointing us the port of Makhachkala. The Russians have restricted the immersion of the vessels calling at the port to 6.5 meters (the immersion of the tanker is 7 meters). And they do not give any reason for that. As a result, we lose 1 thousand tons of oil due to small freight charges", said N. Lagutkin.
BP Azerbaijan Started Oil Transportation By Rail
BP Azerbaijan has begun transporting oil from "Azeri" field by rail, Company's vice president Phil Home revealed.
He said that oil is transported from Azpetrol company's terminal, but it has not reached the Georgian port of Batumi yet, where it will be loaded on tankers. Currently the company has dispatched around 40,000 barrels of oil. But supplies are still not stable, as they depend on the loading of the main export pipeline Baku-Tbilisi-Ceyhan (approximately 700,000 barrels have been loaded) and that of the Baku-Supsa pipeline. For example, at the beginning of August, BP and its partners stopped pipeline oil shipments from Azerbaijan to the Georgian port of Supsa on the Black Sea because of maintenance issues. The pipeline was blocked for 10 days. Azerbaijan International Operating Co., operated by BP, did not stop production. Oil was shipped to the Russian port of Novorossiysk on the Black Sea.
Oil transportation by rail carriages is commercially more profitable than transportation via the Baku-Novorossiysk pipeline, where oil gets mixed and its quality drops down, leading to a price reduction. BP Azerbaijan asserts the price difference makes USD4-5 per barrel.
DFDS in Alliance with Sovcomflot
DFDS signed Heads of Agreement with Rosmorport and the Russian Federal Agency for Maritime and River Transport to operate a rail ferry service between the Russian ports of Ust Luga and Baltiysk (Kaliningrad) and the German port of Sassnitz/Mukran.
The service will commence when terminal facilities in Russia are ready in the middle of 2006.
As part of the preparations - and to secure sufficient freight volumes - DFDS has signed a co-operation agreement with the state-owned, Russian shipping company Sovcomflot. Sovcomflot has operated a ro-ro freight service between Kiel and St. Petersburg under the name SCF St. Petersburg Line since 2002. DFDS now joins a conference named SCF DFDS Line. Sovcomflot and DFDS will each deploy one ro-ro vessel and together offer two weekly departures in either direction.
DFDS and Sovcomflot will both own shares in the line' shipping agency in St. Petersburg. DFDS will assume responsibility for the agency in Kiel, from where DFDS - through its subsidiary AB LISCO Baltic Service - already operates a ro-pax service to Klaipeda, Lithuania.
Far East: New Tunnel
A new 3,890-meter long railway tunnel, named Kuznetsovsky, will be built in the Far East. The tunnel will pass through the Sikhote-Alinsky mountain ridge connecting Komsomolsk-on-Amur and the Pacific port Vanino. The Dalnevostochnaya (Far Eastern) Railway will invest RUR 71 million into the project.
The general designers of the project are the Novosibirsk institute Bamtonnelproject and Dalgiprotrans (Khabarovsk). The new tunnel will enable to increase the weight of the freight trains, as well as the cargo flow to the Vanino port and to Sovetskaya Gavan, reduce additional expenses on trains going through the mountains. The project's delivery term is 6 years. The construction budget for the tunnel and the 20-kilometer bypass is 15 billion rubles.
Additional transportation of oil products, coal, timber, metals will be fulfilled along the Baikalo-Amurskaya Railway to the Vanino port during the next years. The Dalnevostochnaya Railway has developed a large programme of reconstruction and modernization of the so-called "Northern Wide Passage", which includes renewal of the upper railway stations.
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[IS_REQUIRED] => N
[VERSION] => 1
[USER_TYPE] =>
[USER_TYPE_SETTINGS] =>
[HINT] =>
[~NAME] => ID поста блога для комментариев
[~DEFAULT_VALUE] =>
[VALUE_ENUM] =>
[VALUE_XML_ID] =>
[VALUE_SORT] =>
[VALUE] =>
[PROPERTY_VALUE_ID] => 107845:94
[DESCRIPTION] =>
[~DESCRIPTION] =>
[~VALUE] =>
)
[BLOG_COMMENTS_CNT] => Array
(
[ID] => 95
[IBLOCK_ID] => 25
[NAME] => Количество комментариев
[ACTIVE] => Y
[SORT] => 500
[CODE] => BLOG_COMMENTS_CNT
[DEFAULT_VALUE] =>
[PROPERTY_TYPE] => N
[ROW_COUNT] => 1
[COL_COUNT] => 30
[LIST_TYPE] => L
[MULTIPLE] => N
[XML_ID] =>
[FILE_TYPE] =>
[MULTIPLE_CNT] => 5
[LINK_IBLOCK_ID] => 0
[WITH_DESCRIPTION] => N
[SEARCHABLE] => N
[FILTRABLE] => N
[IS_REQUIRED] => N
[VERSION] => 1
[USER_TYPE] =>
[USER_TYPE_SETTINGS] =>
[HINT] =>
[~NAME] => Количество комментариев
[~DEFAULT_VALUE] =>
[VALUE_ENUM] =>
[VALUE_XML_ID] =>
[VALUE_SORT] =>
[VALUE] =>
[PROPERTY_VALUE_ID] => 107845:95
[DESCRIPTION] =>
[~DESCRIPTION] =>
[~VALUE] =>
)
[MORE_PHOTO] => Array
(
[ID] => 98
[IBLOCK_ID] => 25
[NAME] => Дополнительные фотографии
[ACTIVE] => Y
[SORT] => 500
[CODE] => MORE_PHOTO
[DEFAULT_VALUE] =>
[PROPERTY_TYPE] => F
[ROW_COUNT] => 1
[COL_COUNT] => 30
[LIST_TYPE] => L
[MULTIPLE] => Y
[XML_ID] =>
[FILE_TYPE] => jpg, gif, bmp, png, jpeg
[MULTIPLE_CNT] => 5
[LINK_IBLOCK_ID] => 0
[WITH_DESCRIPTION] => N
[SEARCHABLE] => N
[FILTRABLE] => N
[IS_REQUIRED] => N
[VERSION] => 2
[USER_TYPE] =>
[USER_TYPE_SETTINGS] =>
[HINT] =>
[~NAME] => Дополнительные фотографии
[~DEFAULT_VALUE] =>
[VALUE_ENUM] =>
[VALUE_XML_ID] =>
[VALUE_SORT] =>
[VALUE] =>
[PROPERTY_VALUE_ID] =>
[DESCRIPTION] =>
[~DESCRIPTION] =>
[~VALUE] =>
)
[PUBLIC_ACCESS] => Array
(
[ID] => 110
[IBLOCK_ID] => 25
[NAME] => Открытый доступ
[ACTIVE] => Y
[SORT] => 500
[CODE] => PUBLIC_ACCESS
[DEFAULT_VALUE] =>
[PROPERTY_TYPE] => L
[ROW_COUNT] => 1
[COL_COUNT] => 30
[LIST_TYPE] => C
[MULTIPLE] => N
[XML_ID] =>
[FILE_TYPE] =>
[MULTIPLE_CNT] => 5
[LINK_IBLOCK_ID] => 0
[WITH_DESCRIPTION] => N
[SEARCHABLE] => N
[FILTRABLE] => N
[IS_REQUIRED] => N
[VERSION] => 2
[USER_TYPE] =>
[USER_TYPE_SETTINGS] =>
[HINT] =>
[~NAME] => Открытый доступ
[~DEFAULT_VALUE] =>
[VALUE_ENUM] =>
[VALUE_XML_ID] =>
[VALUE_SORT] =>
[VALUE] =>
[PROPERTY_VALUE_ID] => 107845:110
[DESCRIPTION] =>
[~DESCRIPTION] =>
[~VALUE] =>
[VALUE_ENUM_ID] =>
)
[ATTACHED_PDF] => Array
(
[ID] => 324
[IBLOCK_ID] => 25
[NAME] => Прикрепленный PDF
[ACTIVE] => Y
[SORT] => 500
[CODE] => ATTACHED_PDF
[DEFAULT_VALUE] =>
[PROPERTY_TYPE] => F
[ROW_COUNT] => 1
[COL_COUNT] => 30
[LIST_TYPE] => L
[MULTIPLE] => N
[XML_ID] =>
[FILE_TYPE] => pdf
[MULTIPLE_CNT] => 5
[LINK_IBLOCK_ID] => 0
[WITH_DESCRIPTION] => N
[SEARCHABLE] => N
[FILTRABLE] => N
[IS_REQUIRED] => N
[VERSION] => 2
[USER_TYPE] =>
[USER_TYPE_SETTINGS] =>
[HINT] =>
[~NAME] => Прикрепленный PDF
[~DEFAULT_VALUE] =>
[VALUE_ENUM] =>
[VALUE_XML_ID] =>
[VALUE_SORT] =>
[VALUE] =>
[PROPERTY_VALUE_ID] => 107845:324
[DESCRIPTION] =>
[~DESCRIPTION] =>
[~VALUE] =>
)
)
[DISPLAY_PROPERTIES] => Array
(
)
[IPROPERTY_VALUES] => Array
(
[SECTION_META_TITLE] => Panorama
[SECTION_META_KEYWORDS] => panorama
[SECTION_META_DESCRIPTION] =>
[ELEMENT_META_TITLE] => Panorama
[ELEMENT_META_KEYWORDS] => panorama
[ELEMENT_META_DESCRIPTION] =>
[SECTION_PICTURE_FILE_ALT] => Panorama
[SECTION_PICTURE_FILE_TITLE] => Panorama
[SECTION_DETAIL_PICTURE_FILE_ALT] => Panorama
[SECTION_DETAIL_PICTURE_FILE_TITLE] => Panorama
[ELEMENT_PREVIEW_PICTURE_FILE_ALT] => Panorama
[ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => Panorama
[ELEMENT_DETAIL_PICTURE_FILE_ALT] => Panorama
[ELEMENT_DETAIL_PICTURE_FILE_TITLE] => Panorama
)
)
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Информационное агентство «РЖД-Партнер.РУ»
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