III КВАРТАЛ 2022Г. - 55 баллов
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Not for the first time an exhibition sequence is opened by the principal transport exhibition TransRussia, which is the large exchange of transport services, annually attracting leading experts from Russia, the CIS and Baltic countries. This logistics exhibition is the principal stage, where most problems relating to development of the Russian transport system are being discussed. New IT systems interacting across different modes of transport are being developed to resolve logistics problems in the global market.
First of all, oriented to services in cargo transportation, the exhibition shows industry solutions – from transport-forwarding services to the software and the equipment for processing of loads.
TransRussia has been held since 1996, and annually brings together domestic and world leaders in the market of transport and logistics services, transport machinery, rolling stock and transport technologies. For 17 years this exhibition is a leading branch event. Next year the exhibition will take place on April 23-26 in Moscow in pavilion No.75 of the All-Russia Exhibition Centre, it will be visited by 300 delegates from 20 countries. The Ministry of Transport of the Russian Federation and branch associations, heads of the largest transport companies, the official delegations of the European countries and mass media representatives, including “The RZD-Partner” magazine.
The exhibition is a unique opportunity to present the services of the company to the greatest number of experts in the field of transport and logistics from different industries. Besides, the event also is a business platform, where participants sign contracts on transportation of specific cargos. Half of visitors to the exhibition represent transport and allied branches, which allows participants to build new routes and chains for deliveries.
The logistic section of TransRussia will help to present the decisions for visitors from all districts of Russia and the CIS countries. Two years ago it was selected to be an individual event, and in 2013 it will occupy all of hall B of pavilion 75 (All-Russia Exhibition Centre).
Participants of the section on information technologies on transport and navigation have an opportunity to set up contacts with the widest audience of potential customers, as half of the visitors belong to transport companies and allied industries.
TransRussia is attended by the technology professionals in transport companies interested in new advances in the field of transport navigation and monitoring, transport software, warehouse logistics and electronic commerce.
In 2012 direct negotiations between cargo owners and cargo carriers took place for the first time during the exhibition.
It should be noted that TransRussia has UFI accreditation (Union des Foires Internationales, the World Exhibition Union), and also the Russian Union of Exhibitions and Fairs.
From Moscow to Sochi
Another event, which is no less important, is the 8th International Rail Business Forum “1520 Strategic Partnership”.
It is a specialised international railway forum and also the largest business meeting of leaders in the “wide” track railway business.
The main idea of the forum is to assist in coordinating approaches in the development of railways on “space 1520”, to support its leading line in the global market of freight and passenger traffic.
The main target is acceptance of system decisions on all major aspects of running a railway complex, including optimisation of transportation processes, upgrade of transport infrastructure, attraction of investment, and production of modern rolling stock.
More than 20 different discussion clubs with ministers, legislators, principals of state bodies, rolling stock operating companies, transport engineering companies, forwarding agents, and also managers of RZD and other national railway administrations take place during the forum.
Traditionally this forum is a stage for the conclusion of large international agreements regarding development of the railways and also of contracts for delivery and service of railway equipment.
The main feature of the forum is the independent summing up by an informal board of directors from among the authoritative experts who do not have direct interests in the sphere of railway transport.
The 7th International Rail Business Forum “1520 Strategic Partnership”, which took place this year, was the first step towards finding a solution to whether united railway regulation for the sphere of international transport cooperation should be created. More than 1,400 delegates went to Sochi to discuss what developments will take place over the next few years in the “1520” realm in the way of globalisation and integration.
Representatives of the European Union also took part in discussion and confirmed that they are interested in the international railway community. During the forum a number of contracts and agreements for more than RUB 120 billion were signed, and practical ways of implementation of international transport and logistic projects were worked out. The forum was reported on by more than 250 representatives of the media from 10 countries. Next year the event will take place in Sochi again from May 29 to May 31.
Autumn Begins with EXPO 1520
Next autumn will be marked by one more significant event in the transport sphere. In early September, 2013 in Scherbinka (situated near Moscow), in the Experimental ring, belonging to VNIIZhT (All-Russia Railway Research Institute), the 4th International Railway Salon “EXPO 1520” will take place.
It is an international forum for the latest developments in the field of equipment, technologies, infrastructures, services and logistics in the railway industry which is the only such event in the “1520 space”. The meeting promotes the co-ordinated entrance of Russia into the world economic community and the creation of mutually beneficial cooperation between domestic and foreign producers, equipment providers and services.
The main target of the forum is the creation of a modern international stage for demonstrating the latest locomotives, coaches, special machinery, technology and equipment to potential customers who are principals of railway administrations in the 1520 network countries operators and leasing companies. It should make choosing the best rolling stock and the necessary equipment easier for the customer.
During the International forum, the 5th International conference “Railway Engineering. Perspectives, Technologies, Priorities” will also take place.
The schedule of the conference will include discussion of all key aspects of development of railway transportation engineering on “1520 space”, including issues such as improving the quality of information exchange between manufacturers and operating companies, implementation of lean manufacturing technologies and increasing power efficiency, technical regulation in the field of railway transport, development of a network of high-speed and very high speed transport, etc.
The conference will promote a dialogue between manufacturers and customers in the “wide” track market, attraction of the private capital in implementation of the major state infrastructure projects, increasing competitiveness and strengthening the image of the Russian manufacturers abroad.
Others taking part in the conference include principals of state bodies, including the Ministry of Transport, the Ministry of Economic Development, the Ministry of the Industry and Trade, and also railway transport engineering companies, representatives of legislature, public organisations, banks, insurance and leasing companies and leading experts in railway administrations of the participating states of the CIS.
Exporail Picks up the Baton
The conference season in November will be continued by the 7th International Railway Technology exhibition Exporail, which is the largest event in Russia in the field of railway transport development.
The event is supported by the Ministry of Transport of the Russian Federation, RZD and the International Academy of Transport, and is being held under the patronage of the Chamber of Commerce and Industry of the Russian Federation.
Among the main objectives of the conference is the provision of an effective communicative stage for a direct dialogue, an exchange of ideas and interaction between business partners of the transport branch, representatives of the state bodies and science. Additionally, participants of Exporail will have the ability to show successful experience in the implementation of infrastructure projects in the field of railway transport and a port economy, implementation of innovations in infrastructure of the railways, use of information technologies at intersections between railways and ports.
About Transport in a Week
In November-December, 2013 another significant conference – “Transport Week – 2012” – will take place. It is an event in a unique format which includes a number of business, scientific and social actions. It brings together professionals within the transport sphere.
During this period more than 2,000 participants, including management from the largest companies, the Ministry of Transport of the Russian Federation and state bodies, will meet for discussions regarding updating of Transport Strategy for the Russian Federation till 2030, and also key questions concerning all types of transport.
On a High Note
Such an informative year will be ended with 11th International conference “Transport Services Market: Cooperation and Partnership”, which is one of the most significant events in this field. It will take place in Moscow in December, 2013.
Today’s conference is traditional and brings together leading players in the international transport services market.
Constructive dialogue between participants at the conference is built on the basis of interactive formats: discussion clubs, round tables, master classes, brainstorming sessions, briefings, etc.
The event is hosted by Business Dialog company together with “The RZD-Partner” magazine, and supported by RZD.
During the conference a number of topics concerning the workings of the freight rail transportation market in the context of changes to normative and technological processes will be discussed.
Discussions are usually public and frank. They affect key innovations in the market of rail transportation with further analysis of their consequences for all participants involved in the transportation process. This formula stimulates transparency of discussions in the order client-operator-carrier-state on the basis of a vast range of judgments on legislative and normative initiatives in the field of regulation of railway transport.
Annually about 600 delegates participate in this event, including management of the Ministry of Transport and RZD, independent experts and scientists. The conference is reported by dozens of trade papers.
For more than ten years the conference underwent considerable transformation: it was held in different cities, discussion platforms in Moscow were changing, the name was adjusted. It was modified and got new debatable formats and the conference program. In these years audience also changed, both in size and in quality.
Annual discussions at this international conference each time left their mark in the history of branch development – its outcomes for a year, and sometimes for years, defined the future of rail transportation. The last conferences allowed the creation of shared visions of the market, uniting participants in solving strategic tasks and promoting the development of business contacts.
Moreover, the conference provides different business formats, therefore it is always possible to get the most detailed information about the current status of the transport market, new technological advances that give much food for thought about further ways of developing the market. Because of this more than a hundred companies participate in the conference operation annually.
During the conference the traditional awards ceremony “Partner of RZD – 2013”, rewarding long-term partners, speakers and the participants of previous conferences on behalf of “The RZD-Partner” magazine, will take place.
Summing up
According to many participants and visitors over the last few years, all said the events confirmed the important status for the transport sector as a leading platform for discussion, where professionals could exchange their experience, discuss possibilities of development of new information systems across different types of transport, find solutions to logistics questions in the global market and to discuss other current problems in the development of the Russian transport system.
By Stanislav Russkov
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Not for the first time an exhibition sequence is opened by the principal transport exhibition TransRussia, which is the large exchange of transport services, annually attracting leading experts from Russia, the CIS and Baltic countries. This logistics exhibition is the principal stage, where most problems relating to development of the Russian transport system are being discussed. New IT systems interacting across different modes of transport are being developed to resolve logistics problems in the global market.
First of all, oriented to services in cargo transportation, the exhibition shows industry solutions – from transport-forwarding services to the software and the equipment for processing of loads.
TransRussia has been held since 1996, and annually brings together domestic and world leaders in the market of transport and logistics services, transport machinery, rolling stock and transport technologies. For 17 years this exhibition is a leading branch event. Next year the exhibition will take place on April 23-26 in Moscow in pavilion No.75 of the All-Russia Exhibition Centre, it will be visited by 300 delegates from 20 countries. The Ministry of Transport of the Russian Federation and branch associations, heads of the largest transport companies, the official delegations of the European countries and mass media representatives, including “The RZD-Partner” magazine.
The exhibition is a unique opportunity to present the services of the company to the greatest number of experts in the field of transport and logistics from different industries. Besides, the event also is a business platform, where participants sign contracts on transportation of specific cargos. Half of visitors to the exhibition represent transport and allied branches, which allows participants to build new routes and chains for deliveries.
The logistic section of TransRussia will help to present the decisions for visitors from all districts of Russia and the CIS countries. Two years ago it was selected to be an individual event, and in 2013 it will occupy all of hall B of pavilion 75 (All-Russia Exhibition Centre).
Participants of the section on information technologies on transport and navigation have an opportunity to set up contacts with the widest audience of potential customers, as half of the visitors belong to transport companies and allied industries.
TransRussia is attended by the technology professionals in transport companies interested in new advances in the field of transport navigation and monitoring, transport software, warehouse logistics and electronic commerce.
In 2012 direct negotiations between cargo owners and cargo carriers took place for the first time during the exhibition.
It should be noted that TransRussia has UFI accreditation (Union des Foires Internationales, the World Exhibition Union), and also the Russian Union of Exhibitions and Fairs.
From Moscow to Sochi
Another event, which is no less important, is the 8th International Rail Business Forum “1520 Strategic Partnership”.
It is a specialised international railway forum and also the largest business meeting of leaders in the “wide” track railway business.
The main idea of the forum is to assist in coordinating approaches in the development of railways on “space 1520”, to support its leading line in the global market of freight and passenger traffic.
The main target is acceptance of system decisions on all major aspects of running a railway complex, including optimisation of transportation processes, upgrade of transport infrastructure, attraction of investment, and production of modern rolling stock.
More than 20 different discussion clubs with ministers, legislators, principals of state bodies, rolling stock operating companies, transport engineering companies, forwarding agents, and also managers of RZD and other national railway administrations take place during the forum.
Traditionally this forum is a stage for the conclusion of large international agreements regarding development of the railways and also of contracts for delivery and service of railway equipment.
The main feature of the forum is the independent summing up by an informal board of directors from among the authoritative experts who do not have direct interests in the sphere of railway transport.
The 7th International Rail Business Forum “1520 Strategic Partnership”, which took place this year, was the first step towards finding a solution to whether united railway regulation for the sphere of international transport cooperation should be created. More than 1,400 delegates went to Sochi to discuss what developments will take place over the next few years in the “1520” realm in the way of globalisation and integration.
Representatives of the European Union also took part in discussion and confirmed that they are interested in the international railway community. During the forum a number of contracts and agreements for more than RUB 120 billion were signed, and practical ways of implementation of international transport and logistic projects were worked out. The forum was reported on by more than 250 representatives of the media from 10 countries. Next year the event will take place in Sochi again from May 29 to May 31.
Autumn Begins with EXPO 1520
Next autumn will be marked by one more significant event in the transport sphere. In early September, 2013 in Scherbinka (situated near Moscow), in the Experimental ring, belonging to VNIIZhT (All-Russia Railway Research Institute), the 4th International Railway Salon “EXPO 1520” will take place.
It is an international forum for the latest developments in the field of equipment, technologies, infrastructures, services and logistics in the railway industry which is the only such event in the “1520 space”. The meeting promotes the co-ordinated entrance of Russia into the world economic community and the creation of mutually beneficial cooperation between domestic and foreign producers, equipment providers and services.
The main target of the forum is the creation of a modern international stage for demonstrating the latest locomotives, coaches, special machinery, technology and equipment to potential customers who are principals of railway administrations in the 1520 network countries operators and leasing companies. It should make choosing the best rolling stock and the necessary equipment easier for the customer.
During the International forum, the 5th International conference “Railway Engineering. Perspectives, Technologies, Priorities” will also take place.
The schedule of the conference will include discussion of all key aspects of development of railway transportation engineering on “1520 space”, including issues such as improving the quality of information exchange between manufacturers and operating companies, implementation of lean manufacturing technologies and increasing power efficiency, technical regulation in the field of railway transport, development of a network of high-speed and very high speed transport, etc.
The conference will promote a dialogue between manufacturers and customers in the “wide” track market, attraction of the private capital in implementation of the major state infrastructure projects, increasing competitiveness and strengthening the image of the Russian manufacturers abroad.
Others taking part in the conference include principals of state bodies, including the Ministry of Transport, the Ministry of Economic Development, the Ministry of the Industry and Trade, and also railway transport engineering companies, representatives of legislature, public organisations, banks, insurance and leasing companies and leading experts in railway administrations of the participating states of the CIS.
Exporail Picks up the Baton
The conference season in November will be continued by the 7th International Railway Technology exhibition Exporail, which is the largest event in Russia in the field of railway transport development.
The event is supported by the Ministry of Transport of the Russian Federation, RZD and the International Academy of Transport, and is being held under the patronage of the Chamber of Commerce and Industry of the Russian Federation.
Among the main objectives of the conference is the provision of an effective communicative stage for a direct dialogue, an exchange of ideas and interaction between business partners of the transport branch, representatives of the state bodies and science. Additionally, participants of Exporail will have the ability to show successful experience in the implementation of infrastructure projects in the field of railway transport and a port economy, implementation of innovations in infrastructure of the railways, use of information technologies at intersections between railways and ports.
About Transport in a Week
In November-December, 2013 another significant conference – “Transport Week – 2012” – will take place. It is an event in a unique format which includes a number of business, scientific and social actions. It brings together professionals within the transport sphere.
During this period more than 2,000 participants, including management from the largest companies, the Ministry of Transport of the Russian Federation and state bodies, will meet for discussions regarding updating of Transport Strategy for the Russian Federation till 2030, and also key questions concerning all types of transport.
On a High Note
Such an informative year will be ended with 11th International conference “Transport Services Market: Cooperation and Partnership”, which is one of the most significant events in this field. It will take place in Moscow in December, 2013.
Today’s conference is traditional and brings together leading players in the international transport services market.
Constructive dialogue between participants at the conference is built on the basis of interactive formats: discussion clubs, round tables, master classes, brainstorming sessions, briefings, etc.
The event is hosted by Business Dialog company together with “The RZD-Partner” magazine, and supported by RZD.
During the conference a number of topics concerning the workings of the freight rail transportation market in the context of changes to normative and technological processes will be discussed.
Discussions are usually public and frank. They affect key innovations in the market of rail transportation with further analysis of their consequences for all participants involved in the transportation process. This formula stimulates transparency of discussions in the order client-operator-carrier-state on the basis of a vast range of judgments on legislative and normative initiatives in the field of regulation of railway transport.
Annually about 600 delegates participate in this event, including management of the Ministry of Transport and RZD, independent experts and scientists. The conference is reported by dozens of trade papers.
For more than ten years the conference underwent considerable transformation: it was held in different cities, discussion platforms in Moscow were changing, the name was adjusted. It was modified and got new debatable formats and the conference program. In these years audience also changed, both in size and in quality.
Annual discussions at this international conference each time left their mark in the history of branch development – its outcomes for a year, and sometimes for years, defined the future of rail transportation. The last conferences allowed the creation of shared visions of the market, uniting participants in solving strategic tasks and promoting the development of business contacts.
Moreover, the conference provides different business formats, therefore it is always possible to get the most detailed information about the current status of the transport market, new technological advances that give much food for thought about further ways of developing the market. Because of this more than a hundred companies participate in the conference operation annually.
During the conference the traditional awards ceremony “Partner of RZD – 2013”, rewarding long-term partners, speakers and the participants of previous conferences on behalf of “The RZD-Partner” magazine, will take place.
Summing up
According to many participants and visitors over the last few years, all said the events confirmed the important status for the transport sector as a leading platform for discussion, where professionals could exchange their experience, discuss possibilities of development of new information systems across different types of transport, find solutions to logistics questions in the global market and to discuss other current problems in the development of the Russian transport system.
By Stanislav Russkov
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[DETAIL_TEXT] => Principal Industry Event
Not for the first time an exhibition sequence is opened by the principal transport exhibition TransRussia, which is the large exchange of transport services, annually attracting leading experts from Russia, the CIS and Baltic countries. This logistics exhibition is the principal stage, where most problems relating to development of the Russian transport system are being discussed. New IT systems interacting across different modes of transport are being developed to resolve logistics problems in the global market.
First of all, oriented to services in cargo transportation, the exhibition shows industry solutions – from transport-forwarding services to the software and the equipment for processing of loads.
TransRussia has been held since 1996, and annually brings together domestic and world leaders in the market of transport and logistics services, transport machinery, rolling stock and transport technologies. For 17 years this exhibition is a leading branch event. Next year the exhibition will take place on April 23-26 in Moscow in pavilion No.75 of the All-Russia Exhibition Centre, it will be visited by 300 delegates from 20 countries. The Ministry of Transport of the Russian Federation and branch associations, heads of the largest transport companies, the official delegations of the European countries and mass media representatives, including “The RZD-Partner” magazine.
The exhibition is a unique opportunity to present the services of the company to the greatest number of experts in the field of transport and logistics from different industries. Besides, the event also is a business platform, where participants sign contracts on transportation of specific cargos. Half of visitors to the exhibition represent transport and allied branches, which allows participants to build new routes and chains for deliveries.
The logistic section of TransRussia will help to present the decisions for visitors from all districts of Russia and the CIS countries. Two years ago it was selected to be an individual event, and in 2013 it will occupy all of hall B of pavilion 75 (All-Russia Exhibition Centre).
Participants of the section on information technologies on transport and navigation have an opportunity to set up contacts with the widest audience of potential customers, as half of the visitors belong to transport companies and allied industries.
TransRussia is attended by the technology professionals in transport companies interested in new advances in the field of transport navigation and monitoring, transport software, warehouse logistics and electronic commerce.
In 2012 direct negotiations between cargo owners and cargo carriers took place for the first time during the exhibition.
It should be noted that TransRussia has UFI accreditation (Union des Foires Internationales, the World Exhibition Union), and also the Russian Union of Exhibitions and Fairs.
From Moscow to Sochi
Another event, which is no less important, is the 8th International Rail Business Forum “1520 Strategic Partnership”.
It is a specialised international railway forum and also the largest business meeting of leaders in the “wide” track railway business.
The main idea of the forum is to assist in coordinating approaches in the development of railways on “space 1520”, to support its leading line in the global market of freight and passenger traffic.
The main target is acceptance of system decisions on all major aspects of running a railway complex, including optimisation of transportation processes, upgrade of transport infrastructure, attraction of investment, and production of modern rolling stock.
More than 20 different discussion clubs with ministers, legislators, principals of state bodies, rolling stock operating companies, transport engineering companies, forwarding agents, and also managers of RZD and other national railway administrations take place during the forum.
Traditionally this forum is a stage for the conclusion of large international agreements regarding development of the railways and also of contracts for delivery and service of railway equipment.
The main feature of the forum is the independent summing up by an informal board of directors from among the authoritative experts who do not have direct interests in the sphere of railway transport.
The 7th International Rail Business Forum “1520 Strategic Partnership”, which took place this year, was the first step towards finding a solution to whether united railway regulation for the sphere of international transport cooperation should be created. More than 1,400 delegates went to Sochi to discuss what developments will take place over the next few years in the “1520” realm in the way of globalisation and integration.
Representatives of the European Union also took part in discussion and confirmed that they are interested in the international railway community. During the forum a number of contracts and agreements for more than RUB 120 billion were signed, and practical ways of implementation of international transport and logistic projects were worked out. The forum was reported on by more than 250 representatives of the media from 10 countries. Next year the event will take place in Sochi again from May 29 to May 31.
Autumn Begins with EXPO 1520
Next autumn will be marked by one more significant event in the transport sphere. In early September, 2013 in Scherbinka (situated near Moscow), in the Experimental ring, belonging to VNIIZhT (All-Russia Railway Research Institute), the 4th International Railway Salon “EXPO 1520” will take place.
It is an international forum for the latest developments in the field of equipment, technologies, infrastructures, services and logistics in the railway industry which is the only such event in the “1520 space”. The meeting promotes the co-ordinated entrance of Russia into the world economic community and the creation of mutually beneficial cooperation between domestic and foreign producers, equipment providers and services.
The main target of the forum is the creation of a modern international stage for demonstrating the latest locomotives, coaches, special machinery, technology and equipment to potential customers who are principals of railway administrations in the 1520 network countries operators and leasing companies. It should make choosing the best rolling stock and the necessary equipment easier for the customer.
During the International forum, the 5th International conference “Railway Engineering. Perspectives, Technologies, Priorities” will also take place.
The schedule of the conference will include discussion of all key aspects of development of railway transportation engineering on “1520 space”, including issues such as improving the quality of information exchange between manufacturers and operating companies, implementation of lean manufacturing technologies and increasing power efficiency, technical regulation in the field of railway transport, development of a network of high-speed and very high speed transport, etc.
The conference will promote a dialogue between manufacturers and customers in the “wide” track market, attraction of the private capital in implementation of the major state infrastructure projects, increasing competitiveness and strengthening the image of the Russian manufacturers abroad.
Others taking part in the conference include principals of state bodies, including the Ministry of Transport, the Ministry of Economic Development, the Ministry of the Industry and Trade, and also railway transport engineering companies, representatives of legislature, public organisations, banks, insurance and leasing companies and leading experts in railway administrations of the participating states of the CIS.
Exporail Picks up the Baton
The conference season in November will be continued by the 7th International Railway Technology exhibition Exporail, which is the largest event in Russia in the field of railway transport development.
The event is supported by the Ministry of Transport of the Russian Federation, RZD and the International Academy of Transport, and is being held under the patronage of the Chamber of Commerce and Industry of the Russian Federation.
Among the main objectives of the conference is the provision of an effective communicative stage for a direct dialogue, an exchange of ideas and interaction between business partners of the transport branch, representatives of the state bodies and science. Additionally, participants of Exporail will have the ability to show successful experience in the implementation of infrastructure projects in the field of railway transport and a port economy, implementation of innovations in infrastructure of the railways, use of information technologies at intersections between railways and ports.
About Transport in a Week
In November-December, 2013 another significant conference – “Transport Week – 2012” – will take place. It is an event in a unique format which includes a number of business, scientific and social actions. It brings together professionals within the transport sphere.
During this period more than 2,000 participants, including management from the largest companies, the Ministry of Transport of the Russian Federation and state bodies, will meet for discussions regarding updating of Transport Strategy for the Russian Federation till 2030, and also key questions concerning all types of transport.
On a High Note
Such an informative year will be ended with 11th International conference “Transport Services Market: Cooperation and Partnership”, which is one of the most significant events in this field. It will take place in Moscow in December, 2013.
Today’s conference is traditional and brings together leading players in the international transport services market.
Constructive dialogue between participants at the conference is built on the basis of interactive formats: discussion clubs, round tables, master classes, brainstorming sessions, briefings, etc.
The event is hosted by Business Dialog company together with “The RZD-Partner” magazine, and supported by RZD.
During the conference a number of topics concerning the workings of the freight rail transportation market in the context of changes to normative and technological processes will be discussed.
Discussions are usually public and frank. They affect key innovations in the market of rail transportation with further analysis of their consequences for all participants involved in the transportation process. This formula stimulates transparency of discussions in the order client-operator-carrier-state on the basis of a vast range of judgments on legislative and normative initiatives in the field of regulation of railway transport.
Annually about 600 delegates participate in this event, including management of the Ministry of Transport and RZD, independent experts and scientists. The conference is reported by dozens of trade papers.
For more than ten years the conference underwent considerable transformation: it was held in different cities, discussion platforms in Moscow were changing, the name was adjusted. It was modified and got new debatable formats and the conference program. In these years audience also changed, both in size and in quality.
Annual discussions at this international conference each time left their mark in the history of branch development – its outcomes for a year, and sometimes for years, defined the future of rail transportation. The last conferences allowed the creation of shared visions of the market, uniting participants in solving strategic tasks and promoting the development of business contacts.
Moreover, the conference provides different business formats, therefore it is always possible to get the most detailed information about the current status of the transport market, new technological advances that give much food for thought about further ways of developing the market. Because of this more than a hundred companies participate in the conference operation annually.
During the conference the traditional awards ceremony “Partner of RZD – 2013”, rewarding long-term partners, speakers and the participants of previous conferences on behalf of “The RZD-Partner” magazine, will take place.
Summing up
According to many participants and visitors over the last few years, all said the events confirmed the important status for the transport sector as a leading platform for discussion, where professionals could exchange their experience, discuss possibilities of development of new information systems across different types of transport, find solutions to logistics questions in the global market and to discuss other current problems in the development of the Russian transport system.
By Stanislav Russkov
[~DETAIL_TEXT] => Principal Industry Event
Not for the first time an exhibition sequence is opened by the principal transport exhibition TransRussia, which is the large exchange of transport services, annually attracting leading experts from Russia, the CIS and Baltic countries. This logistics exhibition is the principal stage, where most problems relating to development of the Russian transport system are being discussed. New IT systems interacting across different modes of transport are being developed to resolve logistics problems in the global market.
First of all, oriented to services in cargo transportation, the exhibition shows industry solutions – from transport-forwarding services to the software and the equipment for processing of loads.
TransRussia has been held since 1996, and annually brings together domestic and world leaders in the market of transport and logistics services, transport machinery, rolling stock and transport technologies. For 17 years this exhibition is a leading branch event. Next year the exhibition will take place on April 23-26 in Moscow in pavilion No.75 of the All-Russia Exhibition Centre, it will be visited by 300 delegates from 20 countries. The Ministry of Transport of the Russian Federation and branch associations, heads of the largest transport companies, the official delegations of the European countries and mass media representatives, including “The RZD-Partner” magazine.
The exhibition is a unique opportunity to present the services of the company to the greatest number of experts in the field of transport and logistics from different industries. Besides, the event also is a business platform, where participants sign contracts on transportation of specific cargos. Half of visitors to the exhibition represent transport and allied branches, which allows participants to build new routes and chains for deliveries.
The logistic section of TransRussia will help to present the decisions for visitors from all districts of Russia and the CIS countries. Two years ago it was selected to be an individual event, and in 2013 it will occupy all of hall B of pavilion 75 (All-Russia Exhibition Centre).
Participants of the section on information technologies on transport and navigation have an opportunity to set up contacts with the widest audience of potential customers, as half of the visitors belong to transport companies and allied industries.
TransRussia is attended by the technology professionals in transport companies interested in new advances in the field of transport navigation and monitoring, transport software, warehouse logistics and electronic commerce.
In 2012 direct negotiations between cargo owners and cargo carriers took place for the first time during the exhibition.
It should be noted that TransRussia has UFI accreditation (Union des Foires Internationales, the World Exhibition Union), and also the Russian Union of Exhibitions and Fairs.
From Moscow to Sochi
Another event, which is no less important, is the 8th International Rail Business Forum “1520 Strategic Partnership”.
It is a specialised international railway forum and also the largest business meeting of leaders in the “wide” track railway business.
The main idea of the forum is to assist in coordinating approaches in the development of railways on “space 1520”, to support its leading line in the global market of freight and passenger traffic.
The main target is acceptance of system decisions on all major aspects of running a railway complex, including optimisation of transportation processes, upgrade of transport infrastructure, attraction of investment, and production of modern rolling stock.
More than 20 different discussion clubs with ministers, legislators, principals of state bodies, rolling stock operating companies, transport engineering companies, forwarding agents, and also managers of RZD and other national railway administrations take place during the forum.
Traditionally this forum is a stage for the conclusion of large international agreements regarding development of the railways and also of contracts for delivery and service of railway equipment.
The main feature of the forum is the independent summing up by an informal board of directors from among the authoritative experts who do not have direct interests in the sphere of railway transport.
The 7th International Rail Business Forum “1520 Strategic Partnership”, which took place this year, was the first step towards finding a solution to whether united railway regulation for the sphere of international transport cooperation should be created. More than 1,400 delegates went to Sochi to discuss what developments will take place over the next few years in the “1520” realm in the way of globalisation and integration.
Representatives of the European Union also took part in discussion and confirmed that they are interested in the international railway community. During the forum a number of contracts and agreements for more than RUB 120 billion were signed, and practical ways of implementation of international transport and logistic projects were worked out. The forum was reported on by more than 250 representatives of the media from 10 countries. Next year the event will take place in Sochi again from May 29 to May 31.
Autumn Begins with EXPO 1520
Next autumn will be marked by one more significant event in the transport sphere. In early September, 2013 in Scherbinka (situated near Moscow), in the Experimental ring, belonging to VNIIZhT (All-Russia Railway Research Institute), the 4th International Railway Salon “EXPO 1520” will take place.
It is an international forum for the latest developments in the field of equipment, technologies, infrastructures, services and logistics in the railway industry which is the only such event in the “1520 space”. The meeting promotes the co-ordinated entrance of Russia into the world economic community and the creation of mutually beneficial cooperation between domestic and foreign producers, equipment providers and services.
The main target of the forum is the creation of a modern international stage for demonstrating the latest locomotives, coaches, special machinery, technology and equipment to potential customers who are principals of railway administrations in the 1520 network countries operators and leasing companies. It should make choosing the best rolling stock and the necessary equipment easier for the customer.
During the International forum, the 5th International conference “Railway Engineering. Perspectives, Technologies, Priorities” will also take place.
The schedule of the conference will include discussion of all key aspects of development of railway transportation engineering on “1520 space”, including issues such as improving the quality of information exchange between manufacturers and operating companies, implementation of lean manufacturing technologies and increasing power efficiency, technical regulation in the field of railway transport, development of a network of high-speed and very high speed transport, etc.
The conference will promote a dialogue between manufacturers and customers in the “wide” track market, attraction of the private capital in implementation of the major state infrastructure projects, increasing competitiveness and strengthening the image of the Russian manufacturers abroad.
Others taking part in the conference include principals of state bodies, including the Ministry of Transport, the Ministry of Economic Development, the Ministry of the Industry and Trade, and also railway transport engineering companies, representatives of legislature, public organisations, banks, insurance and leasing companies and leading experts in railway administrations of the participating states of the CIS.
Exporail Picks up the Baton
The conference season in November will be continued by the 7th International Railway Technology exhibition Exporail, which is the largest event in Russia in the field of railway transport development.
The event is supported by the Ministry of Transport of the Russian Federation, RZD and the International Academy of Transport, and is being held under the patronage of the Chamber of Commerce and Industry of the Russian Federation.
Among the main objectives of the conference is the provision of an effective communicative stage for a direct dialogue, an exchange of ideas and interaction between business partners of the transport branch, representatives of the state bodies and science. Additionally, participants of Exporail will have the ability to show successful experience in the implementation of infrastructure projects in the field of railway transport and a port economy, implementation of innovations in infrastructure of the railways, use of information technologies at intersections between railways and ports.
About Transport in a Week
In November-December, 2013 another significant conference – “Transport Week – 2012” – will take place. It is an event in a unique format which includes a number of business, scientific and social actions. It brings together professionals within the transport sphere.
During this period more than 2,000 participants, including management from the largest companies, the Ministry of Transport of the Russian Federation and state bodies, will meet for discussions regarding updating of Transport Strategy for the Russian Federation till 2030, and also key questions concerning all types of transport.
On a High Note
Such an informative year will be ended with 11th International conference “Transport Services Market: Cooperation and Partnership”, which is one of the most significant events in this field. It will take place in Moscow in December, 2013.
Today’s conference is traditional and brings together leading players in the international transport services market.
Constructive dialogue between participants at the conference is built on the basis of interactive formats: discussion clubs, round tables, master classes, brainstorming sessions, briefings, etc.
The event is hosted by Business Dialog company together with “The RZD-Partner” magazine, and supported by RZD.
During the conference a number of topics concerning the workings of the freight rail transportation market in the context of changes to normative and technological processes will be discussed.
Discussions are usually public and frank. They affect key innovations in the market of rail transportation with further analysis of their consequences for all participants involved in the transportation process. This formula stimulates transparency of discussions in the order client-operator-carrier-state on the basis of a vast range of judgments on legislative and normative initiatives in the field of regulation of railway transport.
Annually about 600 delegates participate in this event, including management of the Ministry of Transport and RZD, independent experts and scientists. The conference is reported by dozens of trade papers.
For more than ten years the conference underwent considerable transformation: it was held in different cities, discussion platforms in Moscow were changing, the name was adjusted. It was modified and got new debatable formats and the conference program. In these years audience also changed, both in size and in quality.
Annual discussions at this international conference each time left their mark in the history of branch development – its outcomes for a year, and sometimes for years, defined the future of rail transportation. The last conferences allowed the creation of shared visions of the market, uniting participants in solving strategic tasks and promoting the development of business contacts.
Moreover, the conference provides different business formats, therefore it is always possible to get the most detailed information about the current status of the transport market, new technological advances that give much food for thought about further ways of developing the market. Because of this more than a hundred companies participate in the conference operation annually.
During the conference the traditional awards ceremony “Partner of RZD – 2013”, rewarding long-term partners, speakers and the participants of previous conferences on behalf of “The RZD-Partner” magazine, will take place.
Summing up
According to many participants and visitors over the last few years, all said the events confirmed the important status for the transport sector as a leading platform for discussion, where professionals could exchange their experience, discuss possibilities of development of new information systems across different types of transport, find solutions to logistics questions in the global market and to discuss other current problems in the development of the Russian transport system.
By Stanislav Russkov
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[DETAIL_TEXT] => The Virtual Market
These figures are quite understandable. While the railway reform was carried out, the deficit in market infrastructure was becoming more acute. Amid the decline in the public rolling stock park and the increase in the number of private operators and wagons, the instruments for communication between market players have not been developed properly.
The system of trademark transport servicing, with a large network of affiliates and a significant number of agents, which used to support the interaction of cargo owners and railwaymen, is tailored to deal with the transporter’s rolling stock. Even leading private operators have not succeeded in the creation of a similar network. In fact, they haven’t even set such an objective for themselves. In practice, private operators focus on large clients. As a result, a larger amount of freight owned by small and medium consignors was left without proper informational support when searching for a supplier of transport services. “Only large consignors and operators can interact efficiently in the framework of the current system in the railway transportation sector,” believes Sergey Gabestro, CEO of the Fabrikant.ru trading website. “There is a serious problem with the supply of rolling stock to small and medium business. Also, there are difficulties with the logistics of railway transportation.” It hurts cargo owners, who sometimes try to compensate for the lack of information by exotic methods, but more often they choose to pull strings to find rolling stock for cargo transportation calling every operator they know. Operators often have to look for partners almost blindly, which negatively impacts the efficiency of transportation. Consequently, the emergence of different websites, where potential suppliers of services and customers could find each other, became a logical reaction by the market to compensate for the imbalance.
The main idea is not revolutionary, their technology resembles that of websites functioning in some commodity markets, and thousands of virtual advertisement boards which can be found here and there on the internet. “A registered user can place information about his need for rolling stock for cargo transportation, or vice versa about empty railcars he needs to load goods into,” explains Sergey Afanasyev, CEO of Fabrikant Rail. “Potential partners can answer the advertisement, advertising their prices.” On some websites, a wagon owner or an operator can specify some of the parameters for the possible departure place (for example, on the area of a certain railway), and a consignor can provide for possible loading of freight in several types of rolling stock. Initially, the advertiser names not only the period of transportation, but the period when his advertisement is valid.
For example, on the Pogruzi.ru website one has to ask the advertiser about the contract price, while on the Perevozki.ru website there is a field where the advertiser can mention his prices either in absolute figures or in the form of multiplying/reduction factors to Tariff Regulation 10-01 (or as it is written more often – “the tariff of RZD”).
The developers of Fabrikant Rail put the following scheme into operation on their website: if there are several bidders needing transport services (or vice versa for loading cargo into empty rolling stock), the advertiser can choose the offer he likes most of all and announce the winning bidder at the end of the trading. Users can change the price in their bids reflecting the conditions offered by their competitors. In theory, the scheme does not draw criticism. In the opinion of some market players, however, problems may occur in the phase of preparation of documents and carrying out the achieved arrangements in practice.
Too Many Questions
A disadvantage of such websites, recognised even by their developers, is that they use the technology of an exchange without being a fully-fledged exchange. I.e. the arrangements achieved via the website are not obligatory for the participants of the trading. Indeed, it is written on the website of the Electronic Transport Services Trading Facilities of the RZD’s Centre of Transport Services. “Today I am sure that I have found rolling stock for loading, so I am no longer searching for wagons, and I am waiting for documents, but there is a danger that for a potential contractor it is just one of several bids, and the final decision is not in favour of me,” notes Alexey Kobelev, Commercial Director at Daltechkomplekt. “In fact, it is unclear whether the person “on the other side” is authorised to make decisions,” he says. In his opinion, such uncertainty may negatively impact transportation, because companies’ logisticians will continue to look for alternative options to be on the safe side.
They promise to skeptics that the solution to the problem will be found later. “Software will be updated,” explains Sergey Gabestro, CEO of Fabrikant.ru trading website. “I mean not only some utilities for users, but the website’s integration in the existing systems of e-document circulation with such functions as electronic digital signature.” Alexander Osipov, Vice President at the public all-Russia organisation Business Russia believes that the risks can be reduced by black listing rogue participants in the trading facilities. It is not clear, however, who and how will control the process.
Will All Virtual Deals Become Real?
Meanwhile, even if the part concerning document formalisation works properly, there may emerge difficulties with fulfillment of the agreements made online. The developers are not going to integrate the facility with the ETRAN system (at least in the foreseeable future), which complicates fulfillment of contractual obligations. “The transfer of the rolling stock for loading can simply not be adjusted by the Centre of Transport Services because of the lack of technical opportunity,” worries Vyacheslav Andreev, Vice President at Eurotrans Transport and Forwarding Company. “In this case, there are risks for the operator as well as for the consignor.”
As a result, working the old fashioned way may turn out to be more reliable, so companies will prefer it to the advantages of the online search for partners. The followers of e-trading facilities say that circumstances concerning adjusting the transportation with the transporter (RZD) can be mentioned in separate sections of the contract. “There is such a notion as “force majeure.” And everyone understands that these are circumstances beyond their reasonable control. Therefore, the decision of RZD’s Centre of Transport Services can be considered one of such circumstances. The main thing is to have a document proving that there was a refusal to adjust the transportation,” says Mr Osipov.
It is difficult to forecast whether the scheme will be effective until no forms of a contract are offered to users, and they are supposed to find each other in real life after they have come to an arrangement online. The experience of electronic informational facility launched under the support of the RZD’s Centre of Transport Services in 2010 is also interesting. It is a facility for communication, envisaging the further development of relations beyond the services offered on the website. According to Sergey Lakhturov, Engineer-in-Chief of the RZD’s Centre of Transport Services, there were approximately 600 users of the website (300 consignors and 300 operators) in July 2012. “It is possible to say that the information placed on the website is a sort of a shop-window. It is difficult, however, to calculate the number of real contracts,” he notes. In the opinion of Mr Lakhturov, it is not clear why efforts are being made to create an alternative website, similar to the existing one. A good question…
Better and Different Facilities
Often users prefer to make use of opportunities provided by several facilities. The differences in the technical aspect do not matter much to them. “The user’s interface with the leading facilities does not differ greatly,” notes Alexey Labyrin, Head of the Logistics Department at National Non-Ore Company OJSC. “On the whole, we do not have problems with it. Actually, we often succeed in finding railcars at a suitable price, and we haven’t had a situation when pre-agreed arrangements have been broken.” In his opinion, the main problem is the low supply of wagons, which seems rather strange amid the increasing surplus of rolling stock. Experts, however, think that the supply is imaginary. “The new opportunities are not fully recognised by market players,” says Timur Sharipov, Director of WCA company. “In other words, we still prefer a phone to a PC mouse. In spite of criticism, the old methods of searching for contractors are more familiar. The situation will change in the future.”
It is difficult to argue with him, because electronic trading facilities seem to have no alternative. The demand for railway transportation has been increasing since 2008-2009. The pace of supply is even more impressive. The problem is that the number of contacts between the customers and suppliers does not match the growth. The colossal demand for rolling stock and the impressive potential of resources purchased to fulfill the need do not have relevant systems for communication. Tens of thousands of consignors apply as before to railway freight dispatchers, but the latter cannot help them sometimes. Railcars of hundreds of operators run empty without concurrent or back load, and they cannot find work for their fleet quickly. As a result, every participant in the transport process has to find his own solutions to the problem of “loneliness on the network.”
A good example of the popularity of sources to fill the informational vacuum can be found in the number of registered users of new trading facilities. For example, in more than a year of work by the Electronic Transport Services Trading Facilities of the RZD’s Centre of Transport Services, about 400 operators and a little bit less than 4,000 cargo owners registered on the website. The statistics of other facilities are less impressive – about 200 operators and 3,000 cargo owners, nevertheless, the positive dynamic is obvious. It is impossible to find out the number of real contracts, but the interest in this instrument is obvious. Time will tell what this embryonic market will evolve into. Current developers of trading facilities may fail to provide a relevant service, but the interest in such services is undoubtedly high on the both sides of the “shop counter.”
By Dmitry Khantsevich
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These figures are quite understandable. While the railway reform was carried out, the deficit in market infrastructure was becoming more acute. Amid the decline in the public rolling stock park and the increase in the number of private operators and wagons, the instruments for communication between market players have not been developed properly.
The system of trademark transport servicing, with a large network of affiliates and a significant number of agents, which used to support the interaction of cargo owners and railwaymen, is tailored to deal with the transporter’s rolling stock. Even leading private operators have not succeeded in the creation of a similar network. In fact, they haven’t even set such an objective for themselves. In practice, private operators focus on large clients. As a result, a larger amount of freight owned by small and medium consignors was left without proper informational support when searching for a supplier of transport services. “Only large consignors and operators can interact efficiently in the framework of the current system in the railway transportation sector,” believes Sergey Gabestro, CEO of the Fabrikant.ru trading website. “There is a serious problem with the supply of rolling stock to small and medium business. Also, there are difficulties with the logistics of railway transportation.” It hurts cargo owners, who sometimes try to compensate for the lack of information by exotic methods, but more often they choose to pull strings to find rolling stock for cargo transportation calling every operator they know. Operators often have to look for partners almost blindly, which negatively impacts the efficiency of transportation. Consequently, the emergence of different websites, where potential suppliers of services and customers could find each other, became a logical reaction by the market to compensate for the imbalance.
The main idea is not revolutionary, their technology resembles that of websites functioning in some commodity markets, and thousands of virtual advertisement boards which can be found here and there on the internet. “A registered user can place information about his need for rolling stock for cargo transportation, or vice versa about empty railcars he needs to load goods into,” explains Sergey Afanasyev, CEO of Fabrikant Rail. “Potential partners can answer the advertisement, advertising their prices.” On some websites, a wagon owner or an operator can specify some of the parameters for the possible departure place (for example, on the area of a certain railway), and a consignor can provide for possible loading of freight in several types of rolling stock. Initially, the advertiser names not only the period of transportation, but the period when his advertisement is valid.
For example, on the Pogruzi.ru website one has to ask the advertiser about the contract price, while on the Perevozki.ru website there is a field where the advertiser can mention his prices either in absolute figures or in the form of multiplying/reduction factors to Tariff Regulation 10-01 (or as it is written more often – “the tariff of RZD”).
The developers of Fabrikant Rail put the following scheme into operation on their website: if there are several bidders needing transport services (or vice versa for loading cargo into empty rolling stock), the advertiser can choose the offer he likes most of all and announce the winning bidder at the end of the trading. Users can change the price in their bids reflecting the conditions offered by their competitors. In theory, the scheme does not draw criticism. In the opinion of some market players, however, problems may occur in the phase of preparation of documents and carrying out the achieved arrangements in practice.
Too Many Questions
A disadvantage of such websites, recognised even by their developers, is that they use the technology of an exchange without being a fully-fledged exchange. I.e. the arrangements achieved via the website are not obligatory for the participants of the trading. Indeed, it is written on the website of the Electronic Transport Services Trading Facilities of the RZD’s Centre of Transport Services. “Today I am sure that I have found rolling stock for loading, so I am no longer searching for wagons, and I am waiting for documents, but there is a danger that for a potential contractor it is just one of several bids, and the final decision is not in favour of me,” notes Alexey Kobelev, Commercial Director at Daltechkomplekt. “In fact, it is unclear whether the person “on the other side” is authorised to make decisions,” he says. In his opinion, such uncertainty may negatively impact transportation, because companies’ logisticians will continue to look for alternative options to be on the safe side.
They promise to skeptics that the solution to the problem will be found later. “Software will be updated,” explains Sergey Gabestro, CEO of Fabrikant.ru trading website. “I mean not only some utilities for users, but the website’s integration in the existing systems of e-document circulation with such functions as electronic digital signature.” Alexander Osipov, Vice President at the public all-Russia organisation Business Russia believes that the risks can be reduced by black listing rogue participants in the trading facilities. It is not clear, however, who and how will control the process.
Will All Virtual Deals Become Real?
Meanwhile, even if the part concerning document formalisation works properly, there may emerge difficulties with fulfillment of the agreements made online. The developers are not going to integrate the facility with the ETRAN system (at least in the foreseeable future), which complicates fulfillment of contractual obligations. “The transfer of the rolling stock for loading can simply not be adjusted by the Centre of Transport Services because of the lack of technical opportunity,” worries Vyacheslav Andreev, Vice President at Eurotrans Transport and Forwarding Company. “In this case, there are risks for the operator as well as for the consignor.”
As a result, working the old fashioned way may turn out to be more reliable, so companies will prefer it to the advantages of the online search for partners. The followers of e-trading facilities say that circumstances concerning adjusting the transportation with the transporter (RZD) can be mentioned in separate sections of the contract. “There is such a notion as “force majeure.” And everyone understands that these are circumstances beyond their reasonable control. Therefore, the decision of RZD’s Centre of Transport Services can be considered one of such circumstances. The main thing is to have a document proving that there was a refusal to adjust the transportation,” says Mr Osipov.
It is difficult to forecast whether the scheme will be effective until no forms of a contract are offered to users, and they are supposed to find each other in real life after they have come to an arrangement online. The experience of electronic informational facility launched under the support of the RZD’s Centre of Transport Services in 2010 is also interesting. It is a facility for communication, envisaging the further development of relations beyond the services offered on the website. According to Sergey Lakhturov, Engineer-in-Chief of the RZD’s Centre of Transport Services, there were approximately 600 users of the website (300 consignors and 300 operators) in July 2012. “It is possible to say that the information placed on the website is a sort of a shop-window. It is difficult, however, to calculate the number of real contracts,” he notes. In the opinion of Mr Lakhturov, it is not clear why efforts are being made to create an alternative website, similar to the existing one. A good question…
Better and Different Facilities
Often users prefer to make use of opportunities provided by several facilities. The differences in the technical aspect do not matter much to them. “The user’s interface with the leading facilities does not differ greatly,” notes Alexey Labyrin, Head of the Logistics Department at National Non-Ore Company OJSC. “On the whole, we do not have problems with it. Actually, we often succeed in finding railcars at a suitable price, and we haven’t had a situation when pre-agreed arrangements have been broken.” In his opinion, the main problem is the low supply of wagons, which seems rather strange amid the increasing surplus of rolling stock. Experts, however, think that the supply is imaginary. “The new opportunities are not fully recognised by market players,” says Timur Sharipov, Director of WCA company. “In other words, we still prefer a phone to a PC mouse. In spite of criticism, the old methods of searching for contractors are more familiar. The situation will change in the future.”
It is difficult to argue with him, because electronic trading facilities seem to have no alternative. The demand for railway transportation has been increasing since 2008-2009. The pace of supply is even more impressive. The problem is that the number of contacts between the customers and suppliers does not match the growth. The colossal demand for rolling stock and the impressive potential of resources purchased to fulfill the need do not have relevant systems for communication. Tens of thousands of consignors apply as before to railway freight dispatchers, but the latter cannot help them sometimes. Railcars of hundreds of operators run empty without concurrent or back load, and they cannot find work for their fleet quickly. As a result, every participant in the transport process has to find his own solutions to the problem of “loneliness on the network.”
A good example of the popularity of sources to fill the informational vacuum can be found in the number of registered users of new trading facilities. For example, in more than a year of work by the Electronic Transport Services Trading Facilities of the RZD’s Centre of Transport Services, about 400 operators and a little bit less than 4,000 cargo owners registered on the website. The statistics of other facilities are less impressive – about 200 operators and 3,000 cargo owners, nevertheless, the positive dynamic is obvious. It is impossible to find out the number of real contracts, but the interest in this instrument is obvious. Time will tell what this embryonic market will evolve into. Current developers of trading facilities may fail to provide a relevant service, but the interest in such services is undoubtedly high on the both sides of the “shop counter.”
By Dmitry Khantsevich
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These figures are quite understandable. While the railway reform was carried out, the deficit in market infrastructure was becoming more acute. Amid the decline in the public rolling stock park and the increase in the number of private operators and wagons, the instruments for communication between market players have not been developed properly.
The system of trademark transport servicing, with a large network of affiliates and a significant number of agents, which used to support the interaction of cargo owners and railwaymen, is tailored to deal with the transporter’s rolling stock. Even leading private operators have not succeeded in the creation of a similar network. In fact, they haven’t even set such an objective for themselves. In practice, private operators focus on large clients. As a result, a larger amount of freight owned by small and medium consignors was left without proper informational support when searching for a supplier of transport services. “Only large consignors and operators can interact efficiently in the framework of the current system in the railway transportation sector,” believes Sergey Gabestro, CEO of the Fabrikant.ru trading website. “There is a serious problem with the supply of rolling stock to small and medium business. Also, there are difficulties with the logistics of railway transportation.” It hurts cargo owners, who sometimes try to compensate for the lack of information by exotic methods, but more often they choose to pull strings to find rolling stock for cargo transportation calling every operator they know. Operators often have to look for partners almost blindly, which negatively impacts the efficiency of transportation. Consequently, the emergence of different websites, where potential suppliers of services and customers could find each other, became a logical reaction by the market to compensate for the imbalance.
The main idea is not revolutionary, their technology resembles that of websites functioning in some commodity markets, and thousands of virtual advertisement boards which can be found here and there on the internet. “A registered user can place information about his need for rolling stock for cargo transportation, or vice versa about empty railcars he needs to load goods into,” explains Sergey Afanasyev, CEO of Fabrikant Rail. “Potential partners can answer the advertisement, advertising their prices.” On some websites, a wagon owner or an operator can specify some of the parameters for the possible departure place (for example, on the area of a certain railway), and a consignor can provide for possible loading of freight in several types of rolling stock. Initially, the advertiser names not only the period of transportation, but the period when his advertisement is valid.
For example, on the Pogruzi.ru website one has to ask the advertiser about the contract price, while on the Perevozki.ru website there is a field where the advertiser can mention his prices either in absolute figures or in the form of multiplying/reduction factors to Tariff Regulation 10-01 (or as it is written more often – “the tariff of RZD”).
The developers of Fabrikant Rail put the following scheme into operation on their website: if there are several bidders needing transport services (or vice versa for loading cargo into empty rolling stock), the advertiser can choose the offer he likes most of all and announce the winning bidder at the end of the trading. Users can change the price in their bids reflecting the conditions offered by their competitors. In theory, the scheme does not draw criticism. In the opinion of some market players, however, problems may occur in the phase of preparation of documents and carrying out the achieved arrangements in practice.
Too Many Questions
A disadvantage of such websites, recognised even by their developers, is that they use the technology of an exchange without being a fully-fledged exchange. I.e. the arrangements achieved via the website are not obligatory for the participants of the trading. Indeed, it is written on the website of the Electronic Transport Services Trading Facilities of the RZD’s Centre of Transport Services. “Today I am sure that I have found rolling stock for loading, so I am no longer searching for wagons, and I am waiting for documents, but there is a danger that for a potential contractor it is just one of several bids, and the final decision is not in favour of me,” notes Alexey Kobelev, Commercial Director at Daltechkomplekt. “In fact, it is unclear whether the person “on the other side” is authorised to make decisions,” he says. In his opinion, such uncertainty may negatively impact transportation, because companies’ logisticians will continue to look for alternative options to be on the safe side.
They promise to skeptics that the solution to the problem will be found later. “Software will be updated,” explains Sergey Gabestro, CEO of Fabrikant.ru trading website. “I mean not only some utilities for users, but the website’s integration in the existing systems of e-document circulation with such functions as electronic digital signature.” Alexander Osipov, Vice President at the public all-Russia organisation Business Russia believes that the risks can be reduced by black listing rogue participants in the trading facilities. It is not clear, however, who and how will control the process.
Will All Virtual Deals Become Real?
Meanwhile, even if the part concerning document formalisation works properly, there may emerge difficulties with fulfillment of the agreements made online. The developers are not going to integrate the facility with the ETRAN system (at least in the foreseeable future), which complicates fulfillment of contractual obligations. “The transfer of the rolling stock for loading can simply not be adjusted by the Centre of Transport Services because of the lack of technical opportunity,” worries Vyacheslav Andreev, Vice President at Eurotrans Transport and Forwarding Company. “In this case, there are risks for the operator as well as for the consignor.”
As a result, working the old fashioned way may turn out to be more reliable, so companies will prefer it to the advantages of the online search for partners. The followers of e-trading facilities say that circumstances concerning adjusting the transportation with the transporter (RZD) can be mentioned in separate sections of the contract. “There is such a notion as “force majeure.” And everyone understands that these are circumstances beyond their reasonable control. Therefore, the decision of RZD’s Centre of Transport Services can be considered one of such circumstances. The main thing is to have a document proving that there was a refusal to adjust the transportation,” says Mr Osipov.
It is difficult to forecast whether the scheme will be effective until no forms of a contract are offered to users, and they are supposed to find each other in real life after they have come to an arrangement online. The experience of electronic informational facility launched under the support of the RZD’s Centre of Transport Services in 2010 is also interesting. It is a facility for communication, envisaging the further development of relations beyond the services offered on the website. According to Sergey Lakhturov, Engineer-in-Chief of the RZD’s Centre of Transport Services, there were approximately 600 users of the website (300 consignors and 300 operators) in July 2012. “It is possible to say that the information placed on the website is a sort of a shop-window. It is difficult, however, to calculate the number of real contracts,” he notes. In the opinion of Mr Lakhturov, it is not clear why efforts are being made to create an alternative website, similar to the existing one. A good question…
Better and Different Facilities
Often users prefer to make use of opportunities provided by several facilities. The differences in the technical aspect do not matter much to them. “The user’s interface with the leading facilities does not differ greatly,” notes Alexey Labyrin, Head of the Logistics Department at National Non-Ore Company OJSC. “On the whole, we do not have problems with it. Actually, we often succeed in finding railcars at a suitable price, and we haven’t had a situation when pre-agreed arrangements have been broken.” In his opinion, the main problem is the low supply of wagons, which seems rather strange amid the increasing surplus of rolling stock. Experts, however, think that the supply is imaginary. “The new opportunities are not fully recognised by market players,” says Timur Sharipov, Director of WCA company. “In other words, we still prefer a phone to a PC mouse. In spite of criticism, the old methods of searching for contractors are more familiar. The situation will change in the future.”
It is difficult to argue with him, because electronic trading facilities seem to have no alternative. The demand for railway transportation has been increasing since 2008-2009. The pace of supply is even more impressive. The problem is that the number of contacts between the customers and suppliers does not match the growth. The colossal demand for rolling stock and the impressive potential of resources purchased to fulfill the need do not have relevant systems for communication. Tens of thousands of consignors apply as before to railway freight dispatchers, but the latter cannot help them sometimes. Railcars of hundreds of operators run empty without concurrent or back load, and they cannot find work for their fleet quickly. As a result, every participant in the transport process has to find his own solutions to the problem of “loneliness on the network.”
A good example of the popularity of sources to fill the informational vacuum can be found in the number of registered users of new trading facilities. For example, in more than a year of work by the Electronic Transport Services Trading Facilities of the RZD’s Centre of Transport Services, about 400 operators and a little bit less than 4,000 cargo owners registered on the website. The statistics of other facilities are less impressive – about 200 operators and 3,000 cargo owners, nevertheless, the positive dynamic is obvious. It is impossible to find out the number of real contracts, but the interest in this instrument is obvious. Time will tell what this embryonic market will evolve into. Current developers of trading facilities may fail to provide a relevant service, but the interest in such services is undoubtedly high on the both sides of the “shop counter.”
By Dmitry Khantsevich
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These figures are quite understandable. While the railway reform was carried out, the deficit in market infrastructure was becoming more acute. Amid the decline in the public rolling stock park and the increase in the number of private operators and wagons, the instruments for communication between market players have not been developed properly.
The system of trademark transport servicing, with a large network of affiliates and a significant number of agents, which used to support the interaction of cargo owners and railwaymen, is tailored to deal with the transporter’s rolling stock. Even leading private operators have not succeeded in the creation of a similar network. In fact, they haven’t even set such an objective for themselves. In practice, private operators focus on large clients. As a result, a larger amount of freight owned by small and medium consignors was left without proper informational support when searching for a supplier of transport services. “Only large consignors and operators can interact efficiently in the framework of the current system in the railway transportation sector,” believes Sergey Gabestro, CEO of the Fabrikant.ru trading website. “There is a serious problem with the supply of rolling stock to small and medium business. Also, there are difficulties with the logistics of railway transportation.” It hurts cargo owners, who sometimes try to compensate for the lack of information by exotic methods, but more often they choose to pull strings to find rolling stock for cargo transportation calling every operator they know. Operators often have to look for partners almost blindly, which negatively impacts the efficiency of transportation. Consequently, the emergence of different websites, where potential suppliers of services and customers could find each other, became a logical reaction by the market to compensate for the imbalance.
The main idea is not revolutionary, their technology resembles that of websites functioning in some commodity markets, and thousands of virtual advertisement boards which can be found here and there on the internet. “A registered user can place information about his need for rolling stock for cargo transportation, or vice versa about empty railcars he needs to load goods into,” explains Sergey Afanasyev, CEO of Fabrikant Rail. “Potential partners can answer the advertisement, advertising their prices.” On some websites, a wagon owner or an operator can specify some of the parameters for the possible departure place (for example, on the area of a certain railway), and a consignor can provide for possible loading of freight in several types of rolling stock. Initially, the advertiser names not only the period of transportation, but the period when his advertisement is valid.
For example, on the Pogruzi.ru website one has to ask the advertiser about the contract price, while on the Perevozki.ru website there is a field where the advertiser can mention his prices either in absolute figures or in the form of multiplying/reduction factors to Tariff Regulation 10-01 (or as it is written more often – “the tariff of RZD”).
The developers of Fabrikant Rail put the following scheme into operation on their website: if there are several bidders needing transport services (or vice versa for loading cargo into empty rolling stock), the advertiser can choose the offer he likes most of all and announce the winning bidder at the end of the trading. Users can change the price in their bids reflecting the conditions offered by their competitors. In theory, the scheme does not draw criticism. In the opinion of some market players, however, problems may occur in the phase of preparation of documents and carrying out the achieved arrangements in practice.
Too Many Questions
A disadvantage of such websites, recognised even by their developers, is that they use the technology of an exchange without being a fully-fledged exchange. I.e. the arrangements achieved via the website are not obligatory for the participants of the trading. Indeed, it is written on the website of the Electronic Transport Services Trading Facilities of the RZD’s Centre of Transport Services. “Today I am sure that I have found rolling stock for loading, so I am no longer searching for wagons, and I am waiting for documents, but there is a danger that for a potential contractor it is just one of several bids, and the final decision is not in favour of me,” notes Alexey Kobelev, Commercial Director at Daltechkomplekt. “In fact, it is unclear whether the person “on the other side” is authorised to make decisions,” he says. In his opinion, such uncertainty may negatively impact transportation, because companies’ logisticians will continue to look for alternative options to be on the safe side.
They promise to skeptics that the solution to the problem will be found later. “Software will be updated,” explains Sergey Gabestro, CEO of Fabrikant.ru trading website. “I mean not only some utilities for users, but the website’s integration in the existing systems of e-document circulation with such functions as electronic digital signature.” Alexander Osipov, Vice President at the public all-Russia organisation Business Russia believes that the risks can be reduced by black listing rogue participants in the trading facilities. It is not clear, however, who and how will control the process.
Will All Virtual Deals Become Real?
Meanwhile, even if the part concerning document formalisation works properly, there may emerge difficulties with fulfillment of the agreements made online. The developers are not going to integrate the facility with the ETRAN system (at least in the foreseeable future), which complicates fulfillment of contractual obligations. “The transfer of the rolling stock for loading can simply not be adjusted by the Centre of Transport Services because of the lack of technical opportunity,” worries Vyacheslav Andreev, Vice President at Eurotrans Transport and Forwarding Company. “In this case, there are risks for the operator as well as for the consignor.”
As a result, working the old fashioned way may turn out to be more reliable, so companies will prefer it to the advantages of the online search for partners. The followers of e-trading facilities say that circumstances concerning adjusting the transportation with the transporter (RZD) can be mentioned in separate sections of the contract. “There is such a notion as “force majeure.” And everyone understands that these are circumstances beyond their reasonable control. Therefore, the decision of RZD’s Centre of Transport Services can be considered one of such circumstances. The main thing is to have a document proving that there was a refusal to adjust the transportation,” says Mr Osipov.
It is difficult to forecast whether the scheme will be effective until no forms of a contract are offered to users, and they are supposed to find each other in real life after they have come to an arrangement online. The experience of electronic informational facility launched under the support of the RZD’s Centre of Transport Services in 2010 is also interesting. It is a facility for communication, envisaging the further development of relations beyond the services offered on the website. According to Sergey Lakhturov, Engineer-in-Chief of the RZD’s Centre of Transport Services, there were approximately 600 users of the website (300 consignors and 300 operators) in July 2012. “It is possible to say that the information placed on the website is a sort of a shop-window. It is difficult, however, to calculate the number of real contracts,” he notes. In the opinion of Mr Lakhturov, it is not clear why efforts are being made to create an alternative website, similar to the existing one. A good question…
Better and Different Facilities
Often users prefer to make use of opportunities provided by several facilities. The differences in the technical aspect do not matter much to them. “The user’s interface with the leading facilities does not differ greatly,” notes Alexey Labyrin, Head of the Logistics Department at National Non-Ore Company OJSC. “On the whole, we do not have problems with it. Actually, we often succeed in finding railcars at a suitable price, and we haven’t had a situation when pre-agreed arrangements have been broken.” In his opinion, the main problem is the low supply of wagons, which seems rather strange amid the increasing surplus of rolling stock. Experts, however, think that the supply is imaginary. “The new opportunities are not fully recognised by market players,” says Timur Sharipov, Director of WCA company. “In other words, we still prefer a phone to a PC mouse. In spite of criticism, the old methods of searching for contractors are more familiar. The situation will change in the future.”
It is difficult to argue with him, because electronic trading facilities seem to have no alternative. The demand for railway transportation has been increasing since 2008-2009. The pace of supply is even more impressive. The problem is that the number of contacts between the customers and suppliers does not match the growth. The colossal demand for rolling stock and the impressive potential of resources purchased to fulfill the need do not have relevant systems for communication. Tens of thousands of consignors apply as before to railway freight dispatchers, but the latter cannot help them sometimes. Railcars of hundreds of operators run empty without concurrent or back load, and they cannot find work for their fleet quickly. As a result, every participant in the transport process has to find his own solutions to the problem of “loneliness on the network.”
A good example of the popularity of sources to fill the informational vacuum can be found in the number of registered users of new trading facilities. For example, in more than a year of work by the Electronic Transport Services Trading Facilities of the RZD’s Centre of Transport Services, about 400 operators and a little bit less than 4,000 cargo owners registered on the website. The statistics of other facilities are less impressive – about 200 operators and 3,000 cargo owners, nevertheless, the positive dynamic is obvious. It is impossible to find out the number of real contracts, but the interest in this instrument is obvious. Time will tell what this embryonic market will evolve into. Current developers of trading facilities may fail to provide a relevant service, but the interest in such services is undoubtedly high on the both sides of the “shop counter.”
By Dmitry Khantsevich
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[DETAIL_TEXT] => Virtual Consignment Notes Help to Save Money
The first virtual consignment note was executed in ETRAN on September 17, 2002 at the Zlobino station of the Krasnoyarsk railway. According to a commercial opinion poll, which was carried out in the first year of the operation of this system, implementation of this electronic consignment note technology allowed major clients of Russian Railways to optimise their expenditure, whilst increasing production, by between 10–20%. Experts of RZD also noted a powerful economic effect.
Over the 10 years of its existence, ETRAN has been updated. Important milestones in its development are the introduction of single personal accounts (over 24,000 users got them) and technology for electronic signatures. As a result all users have the means to authorise documents via paperless technology at a single stroke in this system. It means that operations using e-signatures can be undertaken not only while getting a request, but also while cargo is travelling, and also after its arrival. The system also automatically records the time spent on demurrage during all stages of this process (from getting the request to signing the payment document).
According to Nikolay Buzurnyuk, Deputy Director for Development of Intellex CJSC, currently about 31,000 users from more than 7,700 organisations work in ETRAN. And over 8,000 users from 4,500 companies aren’t affiliated with RZD. They are cargo owners, operators and forwarding agents who are connected to ETRAN via a computer-assisted workstation or in control system mode (when the control system of RZD is connected with the control system of a carrier), through the management systems of their enterprises.
The system is constantly undergoing modification, because of new documents influencing the technology of transportation. ETRAN also considers changes in legislation. So, for example, since July 2012 the new regulation of alcohol and alcohol-containing product transportation was introduced. In fact, they contained a number of corrections to the federal law “On State Regulation of Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products.” The law made changes placing specific responsibilities upon the carriers of alcohol products and unpackaged alcohol-containing products. And this should be reflected in documentation on rail transportation.
Transportation under Control
As developers reported in 2012, one of the main areas of modernisation of ETRAN was regulation of work with operator companies. The increase in the number of owners of rolling stock created an additional load on Russian Railway’s electronic systems. Besides, because of changes to the rules of transportation of goods made by the RF Ministry of Transport, new requirements for owners of railcars appeared.
Looking back to 2011-2012, the transporter faced a serious problem, connected with congestion of infrastructure. They were forced to accept some new rules aimed at improvement of transportation planning, including more rigid regulation of empty railcar departures. Therefore control at different levels was implemented in ETRAN. In particular, they concern planning of transportation, processing of notification messages about relocation of empty railcars and operations with warrants for empty wagons departing.
Benefit from Integration
Increasingly complex tasks require further integration of ETRAN with adjacent information systems, where the full range of data, relating to the organisation and execution of transportation of goods, is entered. So, to carry out the transportation plan, prevention of rolling stock congestion and to support the operation of railway transport, ETRAN should also interact with the Automated System of Monthly Planning Loadings (MESPLAN) and information systems from the production unit at RZD. In this case ETRAN is an information system of the national railway administration of Russia. It has international planning responsibilities within the international agreements. Thus, for the RZD’s Centre of Transport Services, which is responsible for monthly planning, international planning operations are implemented and coordinated with the formation of RZD’s monthly plan.
Other information systems of RZD also use the data which has been accumulated in ETRAN. So information exchange turns out to be a two-way process. For example, a special module joins it with the Automated System of Runtime Allocation of Empty Railcars (DRPV) to ETRAN. Data on the scheduled transportations and the coordinated requests go from there from ETRAN, and from other systems of RZD – information on the location of rolling stock fleet. Due to it, the tracking of rolling stock operations in the DRPV is more accurate.
The integration of ETRAN with Geo information system (GIS) expands its possibilities. Using the number of a consignment note, one can track the route of cargo transportation on the map and the estimated time of arrival to the destination point with the help of GIS. Also there is a possibility to trace wagons and containers on the map, and their routes.
With the help of GIS, analysis of cargo flows inside the country and in the Commonwealth states, and also on the international transport corridors, can be made. The analysis can be executed on loads, roads, stations, borders, ports, taking into account changes of freight traffic in different time scales. Besides, GIS also provides an ability to analyse the transport communications of major customers. According to this analysis new effective solutions to their transport requirements are offered in the framework of a complex forwarding service.
Up to date information from various sources and its presentation on a map helps to evaluate the current situation in the field of freight transportation and to make better management decisions. The interaction of ETRAN with the Integrated Control System of Railway Transport (IS UZDP) has great potential. This system is the interface software, which connects the automated systems of consignors’ and RZD’s. The main task of IS UZDP is recoding and reconciling consignors’ control systems with ETRAN, when placing orders and shipping documents. It means, that consignor’s employees work in their control system, but their data automatically transfers to ETRAN. It reduces the time usually spent in completing the formalities of transportation.
Now IS UZDP has 50 implementations. Using this system, ETRAN can interact with popular ERP systems like SAP, Oracle E-Business Suite, Parus, Alfa, and 1C. It is used by many companies for financial accounting. The difficulty is that the format of information, contained in other programs, has to be changed into RZD’s format to transfer data to ETRAN. Using UZDP helps to find the solution to this problem; it allows customers to organise an efficient partnership with RZD on a mutually beneficial basis and to prepare all necessary documents quickly and without errors. Clients also get reports about fulfillment of their requests. Thus, they can keep records of the transportation process themselves.
According to experts at the Intellex company, developers are working on improvement of the ETRAN system now, at the request of RZD, and are improving its functionality, that allows agents of RZD’s Centre of Transport Services to offer new services to their clients. They give the following examples.
In 2011 the system of purchase of wagon services according to the agency scheme was put into operation in ETRAN. The following subsystems were also introduced: maintaining contracts with clients and principals, maintaining the account and planning of orders, billing for the rendered services, and also a subsystem of related work. During the operation of this system more than 2 million wagon departures were serviced.
One more service, executed with the help of ETRAN is as follows: according to the annex to the agency contract, wagons from the Rented Private Railcar park can be provided through an option “Protocol of Coordination of Contract Price”. The mechanism of the protocol is this: RZD’s Centre of Transport Services coordinates the price for a railcar with the client. ETRAN, while the new order is being put into the system, checks, whether the client has received the bill for the using rolling stock. If there is no data about prices, the system automatically requests it from the Second Cargo Company. Then all the data is reconciled in the general protocol, which is signed by the participants in the transportation. That’s how transportation of exports in RPR fleet (the total number is 106,000 gondola cars) is registered in ETRAN.
Expanding Borders
Today ETRAN usually interacts with external clients in the control system mode which requires developers to solve more and more complicated tasks. One of them is integration with the automated system of the Federal Customs Service of the Russian Federation in order to increase the prevalence of e-document circulation. Currently long delays at the border arise because a number of commercial documents have to be applied to the waybill at customs. Until the full set of documents has arrived, inspectors will wait, and the rolling stock will be stuck at the border, even if the electronic consignment note has arrived at the customs post. It turns out that the electronic consignment note itself doesn’t guarantee elimination of lost time due to customs procedures.
Developers are trying to find a way out of this situation. In particular, they are trying to set up electronic document circulation during the procedures connected with dispatch and departure, and also import of cargoes in the Customs Union. All these processes are supposed to be accompanied by relevant electronic documents through ETRAN. The start of the project is planned for the middle of November of the current year.
A large project regarding document circulation with some neighboring countries is being carried out. In particular, in the second half of 2011, consignment notes with e-signatures were introduced between Russia and Finland. In Russia these documents are formed in ETRAN, in Finland - by the automated system of the VR-Yhtymä Oy company, which provides rail transportation in Finland.
In the beginning, electronic consignment notes were made only on the Oktyabrskaya Railway, and they were used only for empty wagons transferred by Russian Railways to VR-Yhtymä Oy. Three months later the technology was implemented on the entire network. At the third stage e-document circulation became two-way.
In February, 2012 the number of empty railcars with consignment notes with e-signatures was more than 97% of the total number of shipments from Russia to Finland.
This project was the basis for a similar pilot project in e-document circulation for transportation on the routes from Russia to Belarus.
E-document circulation between Russia and Latvia is also developing. The project started in April 2012. And the share of the empty cars, registered using this technology, exceeded 51% in May. The system is applied to wagons running from Latvia to Russia only. The main feature of the project is that ETRAN interacts with the automated Latvijas Dzelzcels’ system by means of a so-called buffer zone. The rules of empty wagons departure differ in Russia and Finland, and standard forms of documents in these countries are also different. Therefore, a sort of converter between two systems was needed.
In the long term, the experiment on the use of paper-free document circulation is planned to be extended to other railways routes to the Baltic States routes, Kazakhstan, and Kyrgyzstan.
Moving Forward
Tasks are getting more complicated, because of more client-oriented technologies of by RZD. It forces programmers, together with adjacent RZD services, work on the development of ETRAN to enhance its stability. Information flows are growing, which requires additional hardware resources. And in 2012, as reported by RZD, a new, more productive server complex was put into operation. It acted as a foundation for further development of the program and its technical complexity.
The future prospects of ETRAN’s development are connected with a new period, when it will become not only a tool for registration of consignment notes and an important component in the network of electronic documentation, but also an instrument for marketing and analysis for RZD It will allow estimation of the main cargo transportation streams more efficiently, and analysis of the activity of core cargo-generating areas, large industrial enterprises, etc.
By Alexander Solntsev
[~DETAIL_TEXT] => Virtual Consignment Notes Help to Save Money
The first virtual consignment note was executed in ETRAN on September 17, 2002 at the Zlobino station of the Krasnoyarsk railway. According to a commercial opinion poll, which was carried out in the first year of the operation of this system, implementation of this electronic consignment note technology allowed major clients of Russian Railways to optimise their expenditure, whilst increasing production, by between 10–20%. Experts of RZD also noted a powerful economic effect.
Over the 10 years of its existence, ETRAN has been updated. Important milestones in its development are the introduction of single personal accounts (over 24,000 users got them) and technology for electronic signatures. As a result all users have the means to authorise documents via paperless technology at a single stroke in this system. It means that operations using e-signatures can be undertaken not only while getting a request, but also while cargo is travelling, and also after its arrival. The system also automatically records the time spent on demurrage during all stages of this process (from getting the request to signing the payment document).
According to Nikolay Buzurnyuk, Deputy Director for Development of Intellex CJSC, currently about 31,000 users from more than 7,700 organisations work in ETRAN. And over 8,000 users from 4,500 companies aren’t affiliated with RZD. They are cargo owners, operators and forwarding agents who are connected to ETRAN via a computer-assisted workstation or in control system mode (when the control system of RZD is connected with the control system of a carrier), through the management systems of their enterprises.
The system is constantly undergoing modification, because of new documents influencing the technology of transportation. ETRAN also considers changes in legislation. So, for example, since July 2012 the new regulation of alcohol and alcohol-containing product transportation was introduced. In fact, they contained a number of corrections to the federal law “On State Regulation of Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products.” The law made changes placing specific responsibilities upon the carriers of alcohol products and unpackaged alcohol-containing products. And this should be reflected in documentation on rail transportation.
Transportation under Control
As developers reported in 2012, one of the main areas of modernisation of ETRAN was regulation of work with operator companies. The increase in the number of owners of rolling stock created an additional load on Russian Railway’s electronic systems. Besides, because of changes to the rules of transportation of goods made by the RF Ministry of Transport, new requirements for owners of railcars appeared.
Looking back to 2011-2012, the transporter faced a serious problem, connected with congestion of infrastructure. They were forced to accept some new rules aimed at improvement of transportation planning, including more rigid regulation of empty railcar departures. Therefore control at different levels was implemented in ETRAN. In particular, they concern planning of transportation, processing of notification messages about relocation of empty railcars and operations with warrants for empty wagons departing.
Benefit from Integration
Increasingly complex tasks require further integration of ETRAN with adjacent information systems, where the full range of data, relating to the organisation and execution of transportation of goods, is entered. So, to carry out the transportation plan, prevention of rolling stock congestion and to support the operation of railway transport, ETRAN should also interact with the Automated System of Monthly Planning Loadings (MESPLAN) and information systems from the production unit at RZD. In this case ETRAN is an information system of the national railway administration of Russia. It has international planning responsibilities within the international agreements. Thus, for the RZD’s Centre of Transport Services, which is responsible for monthly planning, international planning operations are implemented and coordinated with the formation of RZD’s monthly plan.
Other information systems of RZD also use the data which has been accumulated in ETRAN. So information exchange turns out to be a two-way process. For example, a special module joins it with the Automated System of Runtime Allocation of Empty Railcars (DRPV) to ETRAN. Data on the scheduled transportations and the coordinated requests go from there from ETRAN, and from other systems of RZD – information on the location of rolling stock fleet. Due to it, the tracking of rolling stock operations in the DRPV is more accurate.
The integration of ETRAN with Geo information system (GIS) expands its possibilities. Using the number of a consignment note, one can track the route of cargo transportation on the map and the estimated time of arrival to the destination point with the help of GIS. Also there is a possibility to trace wagons and containers on the map, and their routes.
With the help of GIS, analysis of cargo flows inside the country and in the Commonwealth states, and also on the international transport corridors, can be made. The analysis can be executed on loads, roads, stations, borders, ports, taking into account changes of freight traffic in different time scales. Besides, GIS also provides an ability to analyse the transport communications of major customers. According to this analysis new effective solutions to their transport requirements are offered in the framework of a complex forwarding service.
Up to date information from various sources and its presentation on a map helps to evaluate the current situation in the field of freight transportation and to make better management decisions. The interaction of ETRAN with the Integrated Control System of Railway Transport (IS UZDP) has great potential. This system is the interface software, which connects the automated systems of consignors’ and RZD’s. The main task of IS UZDP is recoding and reconciling consignors’ control systems with ETRAN, when placing orders and shipping documents. It means, that consignor’s employees work in their control system, but their data automatically transfers to ETRAN. It reduces the time usually spent in completing the formalities of transportation.
Now IS UZDP has 50 implementations. Using this system, ETRAN can interact with popular ERP systems like SAP, Oracle E-Business Suite, Parus, Alfa, and 1C. It is used by many companies for financial accounting. The difficulty is that the format of information, contained in other programs, has to be changed into RZD’s format to transfer data to ETRAN. Using UZDP helps to find the solution to this problem; it allows customers to organise an efficient partnership with RZD on a mutually beneficial basis and to prepare all necessary documents quickly and without errors. Clients also get reports about fulfillment of their requests. Thus, they can keep records of the transportation process themselves.
According to experts at the Intellex company, developers are working on improvement of the ETRAN system now, at the request of RZD, and are improving its functionality, that allows agents of RZD’s Centre of Transport Services to offer new services to their clients. They give the following examples.
In 2011 the system of purchase of wagon services according to the agency scheme was put into operation in ETRAN. The following subsystems were also introduced: maintaining contracts with clients and principals, maintaining the account and planning of orders, billing for the rendered services, and also a subsystem of related work. During the operation of this system more than 2 million wagon departures were serviced.
One more service, executed with the help of ETRAN is as follows: according to the annex to the agency contract, wagons from the Rented Private Railcar park can be provided through an option “Protocol of Coordination of Contract Price”. The mechanism of the protocol is this: RZD’s Centre of Transport Services coordinates the price for a railcar with the client. ETRAN, while the new order is being put into the system, checks, whether the client has received the bill for the using rolling stock. If there is no data about prices, the system automatically requests it from the Second Cargo Company. Then all the data is reconciled in the general protocol, which is signed by the participants in the transportation. That’s how transportation of exports in RPR fleet (the total number is 106,000 gondola cars) is registered in ETRAN.
Expanding Borders
Today ETRAN usually interacts with external clients in the control system mode which requires developers to solve more and more complicated tasks. One of them is integration with the automated system of the Federal Customs Service of the Russian Federation in order to increase the prevalence of e-document circulation. Currently long delays at the border arise because a number of commercial documents have to be applied to the waybill at customs. Until the full set of documents has arrived, inspectors will wait, and the rolling stock will be stuck at the border, even if the electronic consignment note has arrived at the customs post. It turns out that the electronic consignment note itself doesn’t guarantee elimination of lost time due to customs procedures.
Developers are trying to find a way out of this situation. In particular, they are trying to set up electronic document circulation during the procedures connected with dispatch and departure, and also import of cargoes in the Customs Union. All these processes are supposed to be accompanied by relevant electronic documents through ETRAN. The start of the project is planned for the middle of November of the current year.
A large project regarding document circulation with some neighboring countries is being carried out. In particular, in the second half of 2011, consignment notes with e-signatures were introduced between Russia and Finland. In Russia these documents are formed in ETRAN, in Finland - by the automated system of the VR-Yhtymä Oy company, which provides rail transportation in Finland.
In the beginning, electronic consignment notes were made only on the Oktyabrskaya Railway, and they were used only for empty wagons transferred by Russian Railways to VR-Yhtymä Oy. Three months later the technology was implemented on the entire network. At the third stage e-document circulation became two-way.
In February, 2012 the number of empty railcars with consignment notes with e-signatures was more than 97% of the total number of shipments from Russia to Finland.
This project was the basis for a similar pilot project in e-document circulation for transportation on the routes from Russia to Belarus.
E-document circulation between Russia and Latvia is also developing. The project started in April 2012. And the share of the empty cars, registered using this technology, exceeded 51% in May. The system is applied to wagons running from Latvia to Russia only. The main feature of the project is that ETRAN interacts with the automated Latvijas Dzelzcels’ system by means of a so-called buffer zone. The rules of empty wagons departure differ in Russia and Finland, and standard forms of documents in these countries are also different. Therefore, a sort of converter between two systems was needed.
In the long term, the experiment on the use of paper-free document circulation is planned to be extended to other railways routes to the Baltic States routes, Kazakhstan, and Kyrgyzstan.
Moving Forward
Tasks are getting more complicated, because of more client-oriented technologies of by RZD. It forces programmers, together with adjacent RZD services, work on the development of ETRAN to enhance its stability. Information flows are growing, which requires additional hardware resources. And in 2012, as reported by RZD, a new, more productive server complex was put into operation. It acted as a foundation for further development of the program and its technical complexity.
The future prospects of ETRAN’s development are connected with a new period, when it will become not only a tool for registration of consignment notes and an important component in the network of electronic documentation, but also an instrument for marketing and analysis for RZD It will allow estimation of the main cargo transportation streams more efficiently, and analysis of the activity of core cargo-generating areas, large industrial enterprises, etc.
By Alexander Solntsev
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[DETAIL_TEXT] => Virtual Consignment Notes Help to Save Money
The first virtual consignment note was executed in ETRAN on September 17, 2002 at the Zlobino station of the Krasnoyarsk railway. According to a commercial opinion poll, which was carried out in the first year of the operation of this system, implementation of this electronic consignment note technology allowed major clients of Russian Railways to optimise their expenditure, whilst increasing production, by between 10–20%. Experts of RZD also noted a powerful economic effect.
Over the 10 years of its existence, ETRAN has been updated. Important milestones in its development are the introduction of single personal accounts (over 24,000 users got them) and technology for electronic signatures. As a result all users have the means to authorise documents via paperless technology at a single stroke in this system. It means that operations using e-signatures can be undertaken not only while getting a request, but also while cargo is travelling, and also after its arrival. The system also automatically records the time spent on demurrage during all stages of this process (from getting the request to signing the payment document).
According to Nikolay Buzurnyuk, Deputy Director for Development of Intellex CJSC, currently about 31,000 users from more than 7,700 organisations work in ETRAN. And over 8,000 users from 4,500 companies aren’t affiliated with RZD. They are cargo owners, operators and forwarding agents who are connected to ETRAN via a computer-assisted workstation or in control system mode (when the control system of RZD is connected with the control system of a carrier), through the management systems of their enterprises.
The system is constantly undergoing modification, because of new documents influencing the technology of transportation. ETRAN also considers changes in legislation. So, for example, since July 2012 the new regulation of alcohol and alcohol-containing product transportation was introduced. In fact, they contained a number of corrections to the federal law “On State Regulation of Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products.” The law made changes placing specific responsibilities upon the carriers of alcohol products and unpackaged alcohol-containing products. And this should be reflected in documentation on rail transportation.
Transportation under Control
As developers reported in 2012, one of the main areas of modernisation of ETRAN was regulation of work with operator companies. The increase in the number of owners of rolling stock created an additional load on Russian Railway’s electronic systems. Besides, because of changes to the rules of transportation of goods made by the RF Ministry of Transport, new requirements for owners of railcars appeared.
Looking back to 2011-2012, the transporter faced a serious problem, connected with congestion of infrastructure. They were forced to accept some new rules aimed at improvement of transportation planning, including more rigid regulation of empty railcar departures. Therefore control at different levels was implemented in ETRAN. In particular, they concern planning of transportation, processing of notification messages about relocation of empty railcars and operations with warrants for empty wagons departing.
Benefit from Integration
Increasingly complex tasks require further integration of ETRAN with adjacent information systems, where the full range of data, relating to the organisation and execution of transportation of goods, is entered. So, to carry out the transportation plan, prevention of rolling stock congestion and to support the operation of railway transport, ETRAN should also interact with the Automated System of Monthly Planning Loadings (MESPLAN) and information systems from the production unit at RZD. In this case ETRAN is an information system of the national railway administration of Russia. It has international planning responsibilities within the international agreements. Thus, for the RZD’s Centre of Transport Services, which is responsible for monthly planning, international planning operations are implemented and coordinated with the formation of RZD’s monthly plan.
Other information systems of RZD also use the data which has been accumulated in ETRAN. So information exchange turns out to be a two-way process. For example, a special module joins it with the Automated System of Runtime Allocation of Empty Railcars (DRPV) to ETRAN. Data on the scheduled transportations and the coordinated requests go from there from ETRAN, and from other systems of RZD – information on the location of rolling stock fleet. Due to it, the tracking of rolling stock operations in the DRPV is more accurate.
The integration of ETRAN with Geo information system (GIS) expands its possibilities. Using the number of a consignment note, one can track the route of cargo transportation on the map and the estimated time of arrival to the destination point with the help of GIS. Also there is a possibility to trace wagons and containers on the map, and their routes.
With the help of GIS, analysis of cargo flows inside the country and in the Commonwealth states, and also on the international transport corridors, can be made. The analysis can be executed on loads, roads, stations, borders, ports, taking into account changes of freight traffic in different time scales. Besides, GIS also provides an ability to analyse the transport communications of major customers. According to this analysis new effective solutions to their transport requirements are offered in the framework of a complex forwarding service.
Up to date information from various sources and its presentation on a map helps to evaluate the current situation in the field of freight transportation and to make better management decisions. The interaction of ETRAN with the Integrated Control System of Railway Transport (IS UZDP) has great potential. This system is the interface software, which connects the automated systems of consignors’ and RZD’s. The main task of IS UZDP is recoding and reconciling consignors’ control systems with ETRAN, when placing orders and shipping documents. It means, that consignor’s employees work in their control system, but their data automatically transfers to ETRAN. It reduces the time usually spent in completing the formalities of transportation.
Now IS UZDP has 50 implementations. Using this system, ETRAN can interact with popular ERP systems like SAP, Oracle E-Business Suite, Parus, Alfa, and 1C. It is used by many companies for financial accounting. The difficulty is that the format of information, contained in other programs, has to be changed into RZD’s format to transfer data to ETRAN. Using UZDP helps to find the solution to this problem; it allows customers to organise an efficient partnership with RZD on a mutually beneficial basis and to prepare all necessary documents quickly and without errors. Clients also get reports about fulfillment of their requests. Thus, they can keep records of the transportation process themselves.
According to experts at the Intellex company, developers are working on improvement of the ETRAN system now, at the request of RZD, and are improving its functionality, that allows agents of RZD’s Centre of Transport Services to offer new services to their clients. They give the following examples.
In 2011 the system of purchase of wagon services according to the agency scheme was put into operation in ETRAN. The following subsystems were also introduced: maintaining contracts with clients and principals, maintaining the account and planning of orders, billing for the rendered services, and also a subsystem of related work. During the operation of this system more than 2 million wagon departures were serviced.
One more service, executed with the help of ETRAN is as follows: according to the annex to the agency contract, wagons from the Rented Private Railcar park can be provided through an option “Protocol of Coordination of Contract Price”. The mechanism of the protocol is this: RZD’s Centre of Transport Services coordinates the price for a railcar with the client. ETRAN, while the new order is being put into the system, checks, whether the client has received the bill for the using rolling stock. If there is no data about prices, the system automatically requests it from the Second Cargo Company. Then all the data is reconciled in the general protocol, which is signed by the participants in the transportation. That’s how transportation of exports in RPR fleet (the total number is 106,000 gondola cars) is registered in ETRAN.
Expanding Borders
Today ETRAN usually interacts with external clients in the control system mode which requires developers to solve more and more complicated tasks. One of them is integration with the automated system of the Federal Customs Service of the Russian Federation in order to increase the prevalence of e-document circulation. Currently long delays at the border arise because a number of commercial documents have to be applied to the waybill at customs. Until the full set of documents has arrived, inspectors will wait, and the rolling stock will be stuck at the border, even if the electronic consignment note has arrived at the customs post. It turns out that the electronic consignment note itself doesn’t guarantee elimination of lost time due to customs procedures.
Developers are trying to find a way out of this situation. In particular, they are trying to set up electronic document circulation during the procedures connected with dispatch and departure, and also import of cargoes in the Customs Union. All these processes are supposed to be accompanied by relevant electronic documents through ETRAN. The start of the project is planned for the middle of November of the current year.
A large project regarding document circulation with some neighboring countries is being carried out. In particular, in the second half of 2011, consignment notes with e-signatures were introduced between Russia and Finland. In Russia these documents are formed in ETRAN, in Finland - by the automated system of the VR-Yhtymä Oy company, which provides rail transportation in Finland.
In the beginning, electronic consignment notes were made only on the Oktyabrskaya Railway, and they were used only for empty wagons transferred by Russian Railways to VR-Yhtymä Oy. Three months later the technology was implemented on the entire network. At the third stage e-document circulation became two-way.
In February, 2012 the number of empty railcars with consignment notes with e-signatures was more than 97% of the total number of shipments from Russia to Finland.
This project was the basis for a similar pilot project in e-document circulation for transportation on the routes from Russia to Belarus.
E-document circulation between Russia and Latvia is also developing. The project started in April 2012. And the share of the empty cars, registered using this technology, exceeded 51% in May. The system is applied to wagons running from Latvia to Russia only. The main feature of the project is that ETRAN interacts with the automated Latvijas Dzelzcels’ system by means of a so-called buffer zone. The rules of empty wagons departure differ in Russia and Finland, and standard forms of documents in these countries are also different. Therefore, a sort of converter between two systems was needed.
In the long term, the experiment on the use of paper-free document circulation is planned to be extended to other railways routes to the Baltic States routes, Kazakhstan, and Kyrgyzstan.
Moving Forward
Tasks are getting more complicated, because of more client-oriented technologies of by RZD. It forces programmers, together with adjacent RZD services, work on the development of ETRAN to enhance its stability. Information flows are growing, which requires additional hardware resources. And in 2012, as reported by RZD, a new, more productive server complex was put into operation. It acted as a foundation for further development of the program and its technical complexity.
The future prospects of ETRAN’s development are connected with a new period, when it will become not only a tool for registration of consignment notes and an important component in the network of electronic documentation, but also an instrument for marketing and analysis for RZD It will allow estimation of the main cargo transportation streams more efficiently, and analysis of the activity of core cargo-generating areas, large industrial enterprises, etc.
By Alexander Solntsev
[~DETAIL_TEXT] => Virtual Consignment Notes Help to Save Money
The first virtual consignment note was executed in ETRAN on September 17, 2002 at the Zlobino station of the Krasnoyarsk railway. According to a commercial opinion poll, which was carried out in the first year of the operation of this system, implementation of this electronic consignment note technology allowed major clients of Russian Railways to optimise their expenditure, whilst increasing production, by between 10–20%. Experts of RZD also noted a powerful economic effect.
Over the 10 years of its existence, ETRAN has been updated. Important milestones in its development are the introduction of single personal accounts (over 24,000 users got them) and technology for electronic signatures. As a result all users have the means to authorise documents via paperless technology at a single stroke in this system. It means that operations using e-signatures can be undertaken not only while getting a request, but also while cargo is travelling, and also after its arrival. The system also automatically records the time spent on demurrage during all stages of this process (from getting the request to signing the payment document).
According to Nikolay Buzurnyuk, Deputy Director for Development of Intellex CJSC, currently about 31,000 users from more than 7,700 organisations work in ETRAN. And over 8,000 users from 4,500 companies aren’t affiliated with RZD. They are cargo owners, operators and forwarding agents who are connected to ETRAN via a computer-assisted workstation or in control system mode (when the control system of RZD is connected with the control system of a carrier), through the management systems of their enterprises.
The system is constantly undergoing modification, because of new documents influencing the technology of transportation. ETRAN also considers changes in legislation. So, for example, since July 2012 the new regulation of alcohol and alcohol-containing product transportation was introduced. In fact, they contained a number of corrections to the federal law “On State Regulation of Production and Circulation of Ethyl Alcohol, Alcoholic and Alcohol-Containing Products.” The law made changes placing specific responsibilities upon the carriers of alcohol products and unpackaged alcohol-containing products. And this should be reflected in documentation on rail transportation.
Transportation under Control
As developers reported in 2012, one of the main areas of modernisation of ETRAN was regulation of work with operator companies. The increase in the number of owners of rolling stock created an additional load on Russian Railway’s electronic systems. Besides, because of changes to the rules of transportation of goods made by the RF Ministry of Transport, new requirements for owners of railcars appeared.
Looking back to 2011-2012, the transporter faced a serious problem, connected with congestion of infrastructure. They were forced to accept some new rules aimed at improvement of transportation planning, including more rigid regulation of empty railcar departures. Therefore control at different levels was implemented in ETRAN. In particular, they concern planning of transportation, processing of notification messages about relocation of empty railcars and operations with warrants for empty wagons departing.
Benefit from Integration
Increasingly complex tasks require further integration of ETRAN with adjacent information systems, where the full range of data, relating to the organisation and execution of transportation of goods, is entered. So, to carry out the transportation plan, prevention of rolling stock congestion and to support the operation of railway transport, ETRAN should also interact with the Automated System of Monthly Planning Loadings (MESPLAN) and information systems from the production unit at RZD. In this case ETRAN is an information system of the national railway administration of Russia. It has international planning responsibilities within the international agreements. Thus, for the RZD’s Centre of Transport Services, which is responsible for monthly planning, international planning operations are implemented and coordinated with the formation of RZD’s monthly plan.
Other information systems of RZD also use the data which has been accumulated in ETRAN. So information exchange turns out to be a two-way process. For example, a special module joins it with the Automated System of Runtime Allocation of Empty Railcars (DRPV) to ETRAN. Data on the scheduled transportations and the coordinated requests go from there from ETRAN, and from other systems of RZD – information on the location of rolling stock fleet. Due to it, the tracking of rolling stock operations in the DRPV is more accurate.
The integration of ETRAN with Geo information system (GIS) expands its possibilities. Using the number of a consignment note, one can track the route of cargo transportation on the map and the estimated time of arrival to the destination point with the help of GIS. Also there is a possibility to trace wagons and containers on the map, and their routes.
With the help of GIS, analysis of cargo flows inside the country and in the Commonwealth states, and also on the international transport corridors, can be made. The analysis can be executed on loads, roads, stations, borders, ports, taking into account changes of freight traffic in different time scales. Besides, GIS also provides an ability to analyse the transport communications of major customers. According to this analysis new effective solutions to their transport requirements are offered in the framework of a complex forwarding service.
Up to date information from various sources and its presentation on a map helps to evaluate the current situation in the field of freight transportation and to make better management decisions. The interaction of ETRAN with the Integrated Control System of Railway Transport (IS UZDP) has great potential. This system is the interface software, which connects the automated systems of consignors’ and RZD’s. The main task of IS UZDP is recoding and reconciling consignors’ control systems with ETRAN, when placing orders and shipping documents. It means, that consignor’s employees work in their control system, but their data automatically transfers to ETRAN. It reduces the time usually spent in completing the formalities of transportation.
Now IS UZDP has 50 implementations. Using this system, ETRAN can interact with popular ERP systems like SAP, Oracle E-Business Suite, Parus, Alfa, and 1C. It is used by many companies for financial accounting. The difficulty is that the format of information, contained in other programs, has to be changed into RZD’s format to transfer data to ETRAN. Using UZDP helps to find the solution to this problem; it allows customers to organise an efficient partnership with RZD on a mutually beneficial basis and to prepare all necessary documents quickly and without errors. Clients also get reports about fulfillment of their requests. Thus, they can keep records of the transportation process themselves.
According to experts at the Intellex company, developers are working on improvement of the ETRAN system now, at the request of RZD, and are improving its functionality, that allows agents of RZD’s Centre of Transport Services to offer new services to their clients. They give the following examples.
In 2011 the system of purchase of wagon services according to the agency scheme was put into operation in ETRAN. The following subsystems were also introduced: maintaining contracts with clients and principals, maintaining the account and planning of orders, billing for the rendered services, and also a subsystem of related work. During the operation of this system more than 2 million wagon departures were serviced.
One more service, executed with the help of ETRAN is as follows: according to the annex to the agency contract, wagons from the Rented Private Railcar park can be provided through an option “Protocol of Coordination of Contract Price”. The mechanism of the protocol is this: RZD’s Centre of Transport Services coordinates the price for a railcar with the client. ETRAN, while the new order is being put into the system, checks, whether the client has received the bill for the using rolling stock. If there is no data about prices, the system automatically requests it from the Second Cargo Company. Then all the data is reconciled in the general protocol, which is signed by the participants in the transportation. That’s how transportation of exports in RPR fleet (the total number is 106,000 gondola cars) is registered in ETRAN.
Expanding Borders
Today ETRAN usually interacts with external clients in the control system mode which requires developers to solve more and more complicated tasks. One of them is integration with the automated system of the Federal Customs Service of the Russian Federation in order to increase the prevalence of e-document circulation. Currently long delays at the border arise because a number of commercial documents have to be applied to the waybill at customs. Until the full set of documents has arrived, inspectors will wait, and the rolling stock will be stuck at the border, even if the electronic consignment note has arrived at the customs post. It turns out that the electronic consignment note itself doesn’t guarantee elimination of lost time due to customs procedures.
Developers are trying to find a way out of this situation. In particular, they are trying to set up electronic document circulation during the procedures connected with dispatch and departure, and also import of cargoes in the Customs Union. All these processes are supposed to be accompanied by relevant electronic documents through ETRAN. The start of the project is planned for the middle of November of the current year.
A large project regarding document circulation with some neighboring countries is being carried out. In particular, in the second half of 2011, consignment notes with e-signatures were introduced between Russia and Finland. In Russia these documents are formed in ETRAN, in Finland - by the automated system of the VR-Yhtymä Oy company, which provides rail transportation in Finland.
In the beginning, electronic consignment notes were made only on the Oktyabrskaya Railway, and they were used only for empty wagons transferred by Russian Railways to VR-Yhtymä Oy. Three months later the technology was implemented on the entire network. At the third stage e-document circulation became two-way.
In February, 2012 the number of empty railcars with consignment notes with e-signatures was more than 97% of the total number of shipments from Russia to Finland.
This project was the basis for a similar pilot project in e-document circulation for transportation on the routes from Russia to Belarus.
E-document circulation between Russia and Latvia is also developing. The project started in April 2012. And the share of the empty cars, registered using this technology, exceeded 51% in May. The system is applied to wagons running from Latvia to Russia only. The main feature of the project is that ETRAN interacts with the automated Latvijas Dzelzcels’ system by means of a so-called buffer zone. The rules of empty wagons departure differ in Russia and Finland, and standard forms of documents in these countries are also different. Therefore, a sort of converter between two systems was needed.
In the long term, the experiment on the use of paper-free document circulation is planned to be extended to other railways routes to the Baltic States routes, Kazakhstan, and Kyrgyzstan.
Moving Forward
Tasks are getting more complicated, because of more client-oriented technologies of by RZD. It forces programmers, together with adjacent RZD services, work on the development of ETRAN to enhance its stability. Information flows are growing, which requires additional hardware resources. And in 2012, as reported by RZD, a new, more productive server complex was put into operation. It acted as a foundation for further development of the program and its technical complexity.
The future prospects of ETRAN’s development are connected with a new period, when it will become not only a tool for registration of consignment notes and an important component in the network of electronic documentation, but also an instrument for marketing and analysis for RZD It will allow estimation of the main cargo transportation streams more efficiently, and analysis of the activity of core cargo-generating areas, large industrial enterprises, etc.
By Alexander Solntsev
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[DETAIL_TEXT] => New Records
According to the President of Russian Railways Vladimir Yakunin, in the next 10 years the railways will go through the Renaissance Era – new transport systems and transit corridors will be launched.
International transportation engineering is developing rapidly, and the first “trains of the future” have already appeared on the market. Spanish company Talgo has introduced their Avril train. Arguably, it was the most high- profile premiere at the German exhibition Innotrans-2012. Experts make special mention of train’s speed - up to 380 kph, and its compliance with the strictest environmental criteria. But for ordinary passengers such parameters are usually nothing more than just words. However, as mentioned above, these days every manufacturer is trying to keep their client happy.
And Talgo managed to do it. The Avril train is believed to be a revolution in HSR, because its construction will allow operators to sell cheap tickets. And, as we know, price plays very important role for the passenger. This is possible due to its maximum capacity. Seats in the salon of second class are located in the same way as budget airlines (3+2), and thus, a train, with a length of about 200 metres, can accommodate up to 700 passengers.
It’s no surprise that, as well as cheap tickets, clients require comfort. Dining-cars and wireless internet do not surprise European travelers anymore. However, Deutsche Bahn tried to amaze them, presenting the motor coach of a head part of a new high-speed train ICx (249 kph). Special places for parking of bicycles will be included in this train. And it is a successful step, because interest in bicycles in European society is really huge. It is envisaged, that by 2016 the new rolling stock of the German carrier, with a capacity of 724 passengers, will take the place of high-speed Intercity expresses. DB already signed the contract with Siemens for EUR 6 billion.
Another premiere is the RIC type sleeping car for the international trains operated by RZD, created by the Siemens Company. In compartments (which, by the way, were more spacious) basins are placed under little tables, there is a shower in each coach, electronic keys are given to all passengers. Russian clients, who are not used to travelling in “trains of the future”, will be pleased by air conditioning in each compartment. Seats in this train are comfortable, personal light and electrical sockets are built-in. It turns out that the new sleeping car has everything needed for comfortable travelling, but there’s nothing special in it. Considering the cost of tickets (EUR 300-1,000), some interesting features or options could be included in construction.
However, for those who don’t plan on travelling such long distances, but would like to enjoy international innovative advances in transport engineering, RZD together with Siemens prepared another novelty - a suburban electric train “Swallow” (Desiro RUS series) which in 2014 will transport guests and participants in the Winter Olympic Games in Sochi. Now the construction is passing the certification and testing phase. In 2012 it will be put into service between St Petersburg and Veliky Novgorod, and only in 2013 will it start its work on a route for which it was created - in the Sochi region. The main feature of construction of the train is its increased capacity (up to 20%); it was achieved at the expense of placement of the traction equipment on the roof of coaches. We hope that the Russian carrier will pay attention to the experience of the Spanish company Talgo, and will lower the prices for tickets as much as possible.
Dispute over Traction
It’s clear, that passengers, as always, want the highest level of comfort at the lowest price. But what would freight carriers like to see in the future? Perhaps, the key parameter in decisions for cargo transportation is quality.
During the Innotrans exhibition the two largest manufacturers, General Electric and Bombardier, who both introduced new locomotives, argued over traction.
Experts at General Electric presented the diesel-electric locomotive of the PH37ACai series, developed specially for Europe. “This version of the locomotive can provide cross-border transit, and meets the strictest international standards”, - the general manager of GE’s locomotive business Rob McKeel said. Developed for European cargo transportation with easy axle loads, the PH37ACai has a start towing capacity in excess of 135,000 pounds, a constant towing capacity of 96,000 pounds and a dynamic brake effort of 43,000 pounds. The nominal weight of the locomotive is 126 metric tons; the maximum weight – 129.8 metric tons.
Janis Vitins, Director of Locomotive Marketing and Product Planning at Bombardier, on the contrary, declared that electrical engines will be mostly used in the future. “The only argument in favor of the diesel engine is the shortage of electricity. But almost all of Europe is electrified today, and the world is moving in this direction.”
But, according to Rob McKeel, heavy diesel cars will be pre-eminent in the market. “We see demand, both for diesel, and for electric locomotives. Some routes are suitable for electrification, others aren’t,” he said.
It is not known, whether the latest models of locomotives of one of these companies will appear on the Russian railways in future. However, it is clear that RZD couldn’t ignore the international innovations in the sphere of track machinery, as the investment program on rolling stock updating is being launched.
As a result, the RPM group in the presence of the Vice President of RZD Valentin Gapanovich, signed two contracts on cooperation – with the Austrian firm Linsinger and the French company Geismar. According to the first one, five SF03-FFS rail milling machines for processing the surface of a railtrack head will be adjusted. Let’s remind that SF03-FFS is the largest machine for milling of rails, its length is 43 meters and its weight is 156 tons. The train has two cabins for the driver, a built-in bureau and rest car for four people, and also the big container for collection of metal chips. Its productivity is 20 rails per minute. According to the second contract, 372 KGT-4RS excavators’ loaders will be built. Also step-by-step localisation of production in Russia is scheduled.
Obviously, western transport engineering is advancing in leaps and bounds. And clients are happy. But experts are still preparing for a new economic crisis. Therefore, during the Innotrans exhibition they were trying to find the answer for the next question: “Will the terrible expectations come true?” But the research presented by UNIFE calmed them. According to papers, the railway market will continue growing by 2-6% annually. Thus, by 2017 its volumes will reach EUR 170 billion. Latin America and Africa, which are today the most attractive to investors, will be developing really fast. The most dynamic advances are predicted in the field of automatic equipment and telemechanics, while construction of rolling stock and infrastructure, according to analysts, will be stagnating.
Speaking about their expectations, the representatives of Bombardier say: “Our order book is USD 31.9 billion, currently the biggest in the world. The railway market will grow. Just in Europe the demand for regional trains will be about EUR 13 billion in 2015-2017. In North America orders for about EUR 4 billion on subway and intercity trains are expected.”
The Canadian manufacturer predicts that city and suburban transport will be developing really fast in the very near future. “The population requires comfortable public transport, which not only helps to fight traffic jams, but also meets all environmental criteria,” said Bombardier.
But as well as aesthetics, manufacturers, are offering new choices in the realm of city rail transport, and are also trying to save the time of megalopolis citizens. So, the French company Alstom showed a combination of a train and a tram Citadis Dualis, which is intended for daily trips between the city and the local area. However, despite the fact that this year a lot of new models for city transport were exhibited, it seems that the only difference between them was their looks.
It will be interesting to see what ideas from western developers will be transferred to Russia and whether there will be new joint ventures on construction of the trains of the future.
By Christina Alexandrova
[~DETAIL_TEXT] => New Records
According to the President of Russian Railways Vladimir Yakunin, in the next 10 years the railways will go through the Renaissance Era – new transport systems and transit corridors will be launched.
International transportation engineering is developing rapidly, and the first “trains of the future” have already appeared on the market. Spanish company Talgo has introduced their Avril train. Arguably, it was the most high- profile premiere at the German exhibition Innotrans-2012. Experts make special mention of train’s speed - up to 380 kph, and its compliance with the strictest environmental criteria. But for ordinary passengers such parameters are usually nothing more than just words. However, as mentioned above, these days every manufacturer is trying to keep their client happy.
And Talgo managed to do it. The Avril train is believed to be a revolution in HSR, because its construction will allow operators to sell cheap tickets. And, as we know, price plays very important role for the passenger. This is possible due to its maximum capacity. Seats in the salon of second class are located in the same way as budget airlines (3+2), and thus, a train, with a length of about 200 metres, can accommodate up to 700 passengers.
It’s no surprise that, as well as cheap tickets, clients require comfort. Dining-cars and wireless internet do not surprise European travelers anymore. However, Deutsche Bahn tried to amaze them, presenting the motor coach of a head part of a new high-speed train ICx (249 kph). Special places for parking of bicycles will be included in this train. And it is a successful step, because interest in bicycles in European society is really huge. It is envisaged, that by 2016 the new rolling stock of the German carrier, with a capacity of 724 passengers, will take the place of high-speed Intercity expresses. DB already signed the contract with Siemens for EUR 6 billion.
Another premiere is the RIC type sleeping car for the international trains operated by RZD, created by the Siemens Company. In compartments (which, by the way, were more spacious) basins are placed under little tables, there is a shower in each coach, electronic keys are given to all passengers. Russian clients, who are not used to travelling in “trains of the future”, will be pleased by air conditioning in each compartment. Seats in this train are comfortable, personal light and electrical sockets are built-in. It turns out that the new sleeping car has everything needed for comfortable travelling, but there’s nothing special in it. Considering the cost of tickets (EUR 300-1,000), some interesting features or options could be included in construction.
However, for those who don’t plan on travelling such long distances, but would like to enjoy international innovative advances in transport engineering, RZD together with Siemens prepared another novelty - a suburban electric train “Swallow” (Desiro RUS series) which in 2014 will transport guests and participants in the Winter Olympic Games in Sochi. Now the construction is passing the certification and testing phase. In 2012 it will be put into service between St Petersburg and Veliky Novgorod, and only in 2013 will it start its work on a route for which it was created - in the Sochi region. The main feature of construction of the train is its increased capacity (up to 20%); it was achieved at the expense of placement of the traction equipment on the roof of coaches. We hope that the Russian carrier will pay attention to the experience of the Spanish company Talgo, and will lower the prices for tickets as much as possible.
Dispute over Traction
It’s clear, that passengers, as always, want the highest level of comfort at the lowest price. But what would freight carriers like to see in the future? Perhaps, the key parameter in decisions for cargo transportation is quality.
During the Innotrans exhibition the two largest manufacturers, General Electric and Bombardier, who both introduced new locomotives, argued over traction.
Experts at General Electric presented the diesel-electric locomotive of the PH37ACai series, developed specially for Europe. “This version of the locomotive can provide cross-border transit, and meets the strictest international standards”, - the general manager of GE’s locomotive business Rob McKeel said. Developed for European cargo transportation with easy axle loads, the PH37ACai has a start towing capacity in excess of 135,000 pounds, a constant towing capacity of 96,000 pounds and a dynamic brake effort of 43,000 pounds. The nominal weight of the locomotive is 126 metric tons; the maximum weight – 129.8 metric tons.
Janis Vitins, Director of Locomotive Marketing and Product Planning at Bombardier, on the contrary, declared that electrical engines will be mostly used in the future. “The only argument in favor of the diesel engine is the shortage of electricity. But almost all of Europe is electrified today, and the world is moving in this direction.”
But, according to Rob McKeel, heavy diesel cars will be pre-eminent in the market. “We see demand, both for diesel, and for electric locomotives. Some routes are suitable for electrification, others aren’t,” he said.
It is not known, whether the latest models of locomotives of one of these companies will appear on the Russian railways in future. However, it is clear that RZD couldn’t ignore the international innovations in the sphere of track machinery, as the investment program on rolling stock updating is being launched.
As a result, the RPM group in the presence of the Vice President of RZD Valentin Gapanovich, signed two contracts on cooperation – with the Austrian firm Linsinger and the French company Geismar. According to the first one, five SF03-FFS rail milling machines for processing the surface of a railtrack head will be adjusted. Let’s remind that SF03-FFS is the largest machine for milling of rails, its length is 43 meters and its weight is 156 tons. The train has two cabins for the driver, a built-in bureau and rest car for four people, and also the big container for collection of metal chips. Its productivity is 20 rails per minute. According to the second contract, 372 KGT-4RS excavators’ loaders will be built. Also step-by-step localisation of production in Russia is scheduled.
Obviously, western transport engineering is advancing in leaps and bounds. And clients are happy. But experts are still preparing for a new economic crisis. Therefore, during the Innotrans exhibition they were trying to find the answer for the next question: “Will the terrible expectations come true?” But the research presented by UNIFE calmed them. According to papers, the railway market will continue growing by 2-6% annually. Thus, by 2017 its volumes will reach EUR 170 billion. Latin America and Africa, which are today the most attractive to investors, will be developing really fast. The most dynamic advances are predicted in the field of automatic equipment and telemechanics, while construction of rolling stock and infrastructure, according to analysts, will be stagnating.
Speaking about their expectations, the representatives of Bombardier say: “Our order book is USD 31.9 billion, currently the biggest in the world. The railway market will grow. Just in Europe the demand for regional trains will be about EUR 13 billion in 2015-2017. In North America orders for about EUR 4 billion on subway and intercity trains are expected.”
The Canadian manufacturer predicts that city and suburban transport will be developing really fast in the very near future. “The population requires comfortable public transport, which not only helps to fight traffic jams, but also meets all environmental criteria,” said Bombardier.
But as well as aesthetics, manufacturers, are offering new choices in the realm of city rail transport, and are also trying to save the time of megalopolis citizens. So, the French company Alstom showed a combination of a train and a tram Citadis Dualis, which is intended for daily trips between the city and the local area. However, despite the fact that this year a lot of new models for city transport were exhibited, it seems that the only difference between them was their looks.
It will be interesting to see what ideas from western developers will be transferred to Russia and whether there will be new joint ventures on construction of the trains of the future.
By Christina Alexandrova
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[DETAIL_TEXT] => New Records
According to the President of Russian Railways Vladimir Yakunin, in the next 10 years the railways will go through the Renaissance Era – new transport systems and transit corridors will be launched.
International transportation engineering is developing rapidly, and the first “trains of the future” have already appeared on the market. Spanish company Talgo has introduced their Avril train. Arguably, it was the most high- profile premiere at the German exhibition Innotrans-2012. Experts make special mention of train’s speed - up to 380 kph, and its compliance with the strictest environmental criteria. But for ordinary passengers such parameters are usually nothing more than just words. However, as mentioned above, these days every manufacturer is trying to keep their client happy.
And Talgo managed to do it. The Avril train is believed to be a revolution in HSR, because its construction will allow operators to sell cheap tickets. And, as we know, price plays very important role for the passenger. This is possible due to its maximum capacity. Seats in the salon of second class are located in the same way as budget airlines (3+2), and thus, a train, with a length of about 200 metres, can accommodate up to 700 passengers.
It’s no surprise that, as well as cheap tickets, clients require comfort. Dining-cars and wireless internet do not surprise European travelers anymore. However, Deutsche Bahn tried to amaze them, presenting the motor coach of a head part of a new high-speed train ICx (249 kph). Special places for parking of bicycles will be included in this train. And it is a successful step, because interest in bicycles in European society is really huge. It is envisaged, that by 2016 the new rolling stock of the German carrier, with a capacity of 724 passengers, will take the place of high-speed Intercity expresses. DB already signed the contract with Siemens for EUR 6 billion.
Another premiere is the RIC type sleeping car for the international trains operated by RZD, created by the Siemens Company. In compartments (which, by the way, were more spacious) basins are placed under little tables, there is a shower in each coach, electronic keys are given to all passengers. Russian clients, who are not used to travelling in “trains of the future”, will be pleased by air conditioning in each compartment. Seats in this train are comfortable, personal light and electrical sockets are built-in. It turns out that the new sleeping car has everything needed for comfortable travelling, but there’s nothing special in it. Considering the cost of tickets (EUR 300-1,000), some interesting features or options could be included in construction.
However, for those who don’t plan on travelling such long distances, but would like to enjoy international innovative advances in transport engineering, RZD together with Siemens prepared another novelty - a suburban electric train “Swallow” (Desiro RUS series) which in 2014 will transport guests and participants in the Winter Olympic Games in Sochi. Now the construction is passing the certification and testing phase. In 2012 it will be put into service between St Petersburg and Veliky Novgorod, and only in 2013 will it start its work on a route for which it was created - in the Sochi region. The main feature of construction of the train is its increased capacity (up to 20%); it was achieved at the expense of placement of the traction equipment on the roof of coaches. We hope that the Russian carrier will pay attention to the experience of the Spanish company Talgo, and will lower the prices for tickets as much as possible.
Dispute over Traction
It’s clear, that passengers, as always, want the highest level of comfort at the lowest price. But what would freight carriers like to see in the future? Perhaps, the key parameter in decisions for cargo transportation is quality.
During the Innotrans exhibition the two largest manufacturers, General Electric and Bombardier, who both introduced new locomotives, argued over traction.
Experts at General Electric presented the diesel-electric locomotive of the PH37ACai series, developed specially for Europe. “This version of the locomotive can provide cross-border transit, and meets the strictest international standards”, - the general manager of GE’s locomotive business Rob McKeel said. Developed for European cargo transportation with easy axle loads, the PH37ACai has a start towing capacity in excess of 135,000 pounds, a constant towing capacity of 96,000 pounds and a dynamic brake effort of 43,000 pounds. The nominal weight of the locomotive is 126 metric tons; the maximum weight – 129.8 metric tons.
Janis Vitins, Director of Locomotive Marketing and Product Planning at Bombardier, on the contrary, declared that electrical engines will be mostly used in the future. “The only argument in favor of the diesel engine is the shortage of electricity. But almost all of Europe is electrified today, and the world is moving in this direction.”
But, according to Rob McKeel, heavy diesel cars will be pre-eminent in the market. “We see demand, both for diesel, and for electric locomotives. Some routes are suitable for electrification, others aren’t,” he said.
It is not known, whether the latest models of locomotives of one of these companies will appear on the Russian railways in future. However, it is clear that RZD couldn’t ignore the international innovations in the sphere of track machinery, as the investment program on rolling stock updating is being launched.
As a result, the RPM group in the presence of the Vice President of RZD Valentin Gapanovich, signed two contracts on cooperation – with the Austrian firm Linsinger and the French company Geismar. According to the first one, five SF03-FFS rail milling machines for processing the surface of a railtrack head will be adjusted. Let’s remind that SF03-FFS is the largest machine for milling of rails, its length is 43 meters and its weight is 156 tons. The train has two cabins for the driver, a built-in bureau and rest car for four people, and also the big container for collection of metal chips. Its productivity is 20 rails per minute. According to the second contract, 372 KGT-4RS excavators’ loaders will be built. Also step-by-step localisation of production in Russia is scheduled.
Obviously, western transport engineering is advancing in leaps and bounds. And clients are happy. But experts are still preparing for a new economic crisis. Therefore, during the Innotrans exhibition they were trying to find the answer for the next question: “Will the terrible expectations come true?” But the research presented by UNIFE calmed them. According to papers, the railway market will continue growing by 2-6% annually. Thus, by 2017 its volumes will reach EUR 170 billion. Latin America and Africa, which are today the most attractive to investors, will be developing really fast. The most dynamic advances are predicted in the field of automatic equipment and telemechanics, while construction of rolling stock and infrastructure, according to analysts, will be stagnating.
Speaking about their expectations, the representatives of Bombardier say: “Our order book is USD 31.9 billion, currently the biggest in the world. The railway market will grow. Just in Europe the demand for regional trains will be about EUR 13 billion in 2015-2017. In North America orders for about EUR 4 billion on subway and intercity trains are expected.”
The Canadian manufacturer predicts that city and suburban transport will be developing really fast in the very near future. “The population requires comfortable public transport, which not only helps to fight traffic jams, but also meets all environmental criteria,” said Bombardier.
But as well as aesthetics, manufacturers, are offering new choices in the realm of city rail transport, and are also trying to save the time of megalopolis citizens. So, the French company Alstom showed a combination of a train and a tram Citadis Dualis, which is intended for daily trips between the city and the local area. However, despite the fact that this year a lot of new models for city transport were exhibited, it seems that the only difference between them was their looks.
It will be interesting to see what ideas from western developers will be transferred to Russia and whether there will be new joint ventures on construction of the trains of the future.
By Christina Alexandrova
[~DETAIL_TEXT] => New Records
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International transportation engineering is developing rapidly, and the first “trains of the future” have already appeared on the market. Spanish company Talgo has introduced their Avril train. Arguably, it was the most high- profile premiere at the German exhibition Innotrans-2012. Experts make special mention of train’s speed - up to 380 kph, and its compliance with the strictest environmental criteria. But for ordinary passengers such parameters are usually nothing more than just words. However, as mentioned above, these days every manufacturer is trying to keep their client happy.
And Talgo managed to do it. The Avril train is believed to be a revolution in HSR, because its construction will allow operators to sell cheap tickets. And, as we know, price plays very important role for the passenger. This is possible due to its maximum capacity. Seats in the salon of second class are located in the same way as budget airlines (3+2), and thus, a train, with a length of about 200 metres, can accommodate up to 700 passengers.
It’s no surprise that, as well as cheap tickets, clients require comfort. Dining-cars and wireless internet do not surprise European travelers anymore. However, Deutsche Bahn tried to amaze them, presenting the motor coach of a head part of a new high-speed train ICx (249 kph). Special places for parking of bicycles will be included in this train. And it is a successful step, because interest in bicycles in European society is really huge. It is envisaged, that by 2016 the new rolling stock of the German carrier, with a capacity of 724 passengers, will take the place of high-speed Intercity expresses. DB already signed the contract with Siemens for EUR 6 billion.
Another premiere is the RIC type sleeping car for the international trains operated by RZD, created by the Siemens Company. In compartments (which, by the way, were more spacious) basins are placed under little tables, there is a shower in each coach, electronic keys are given to all passengers. Russian clients, who are not used to travelling in “trains of the future”, will be pleased by air conditioning in each compartment. Seats in this train are comfortable, personal light and electrical sockets are built-in. It turns out that the new sleeping car has everything needed for comfortable travelling, but there’s nothing special in it. Considering the cost of tickets (EUR 300-1,000), some interesting features or options could be included in construction.
However, for those who don’t plan on travelling such long distances, but would like to enjoy international innovative advances in transport engineering, RZD together with Siemens prepared another novelty - a suburban electric train “Swallow” (Desiro RUS series) which in 2014 will transport guests and participants in the Winter Olympic Games in Sochi. Now the construction is passing the certification and testing phase. In 2012 it will be put into service between St Petersburg and Veliky Novgorod, and only in 2013 will it start its work on a route for which it was created - in the Sochi region. The main feature of construction of the train is its increased capacity (up to 20%); it was achieved at the expense of placement of the traction equipment on the roof of coaches. We hope that the Russian carrier will pay attention to the experience of the Spanish company Talgo, and will lower the prices for tickets as much as possible.
Dispute over Traction
It’s clear, that passengers, as always, want the highest level of comfort at the lowest price. But what would freight carriers like to see in the future? Perhaps, the key parameter in decisions for cargo transportation is quality.
During the Innotrans exhibition the two largest manufacturers, General Electric and Bombardier, who both introduced new locomotives, argued over traction.
Experts at General Electric presented the diesel-electric locomotive of the PH37ACai series, developed specially for Europe. “This version of the locomotive can provide cross-border transit, and meets the strictest international standards”, - the general manager of GE’s locomotive business Rob McKeel said. Developed for European cargo transportation with easy axle loads, the PH37ACai has a start towing capacity in excess of 135,000 pounds, a constant towing capacity of 96,000 pounds and a dynamic brake effort of 43,000 pounds. The nominal weight of the locomotive is 126 metric tons; the maximum weight – 129.8 metric tons.
Janis Vitins, Director of Locomotive Marketing and Product Planning at Bombardier, on the contrary, declared that electrical engines will be mostly used in the future. “The only argument in favor of the diesel engine is the shortage of electricity. But almost all of Europe is electrified today, and the world is moving in this direction.”
But, according to Rob McKeel, heavy diesel cars will be pre-eminent in the market. “We see demand, both for diesel, and for electric locomotives. Some routes are suitable for electrification, others aren’t,” he said.
It is not known, whether the latest models of locomotives of one of these companies will appear on the Russian railways in future. However, it is clear that RZD couldn’t ignore the international innovations in the sphere of track machinery, as the investment program on rolling stock updating is being launched.
As a result, the RPM group in the presence of the Vice President of RZD Valentin Gapanovich, signed two contracts on cooperation – with the Austrian firm Linsinger and the French company Geismar. According to the first one, five SF03-FFS rail milling machines for processing the surface of a railtrack head will be adjusted. Let’s remind that SF03-FFS is the largest machine for milling of rails, its length is 43 meters and its weight is 156 tons. The train has two cabins for the driver, a built-in bureau and rest car for four people, and also the big container for collection of metal chips. Its productivity is 20 rails per minute. According to the second contract, 372 KGT-4RS excavators’ loaders will be built. Also step-by-step localisation of production in Russia is scheduled.
Obviously, western transport engineering is advancing in leaps and bounds. And clients are happy. But experts are still preparing for a new economic crisis. Therefore, during the Innotrans exhibition they were trying to find the answer for the next question: “Will the terrible expectations come true?” But the research presented by UNIFE calmed them. According to papers, the railway market will continue growing by 2-6% annually. Thus, by 2017 its volumes will reach EUR 170 billion. Latin America and Africa, which are today the most attractive to investors, will be developing really fast. The most dynamic advances are predicted in the field of automatic equipment and telemechanics, while construction of rolling stock and infrastructure, according to analysts, will be stagnating.
Speaking about their expectations, the representatives of Bombardier say: “Our order book is USD 31.9 billion, currently the biggest in the world. The railway market will grow. Just in Europe the demand for regional trains will be about EUR 13 billion in 2015-2017. In North America orders for about EUR 4 billion on subway and intercity trains are expected.”
The Canadian manufacturer predicts that city and suburban transport will be developing really fast in the very near future. “The population requires comfortable public transport, which not only helps to fight traffic jams, but also meets all environmental criteria,” said Bombardier.
But as well as aesthetics, manufacturers, are offering new choices in the realm of city rail transport, and are also trying to save the time of megalopolis citizens. So, the French company Alstom showed a combination of a train and a tram Citadis Dualis, which is intended for daily trips between the city and the local area. However, despite the fact that this year a lot of new models for city transport were exhibited, it seems that the only difference between them was their looks.
It will be interesting to see what ideas from western developers will be transferred to Russia and whether there will be new joint ventures on construction of the trains of the future.
By Christina Alexandrova
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Integration between the 1435 and 1520 mm gauge countries is one of the most urgent goals for the railway sector now.Array
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[DETAIL_TEXT] => Looking for Results
Shared transport networks means the existence of common standards. It is indisputable. However previous attempts at integration between the 1520 and 1435 mm networks were hampered by the fact that in Russia, unlike the states of the European Union, the development of technical standards was traditionally the responsibility of the state. Only recently has the industrial sector started to work actively in this area. What the sector gains as a result depends on that work.
In the EU technical standards are developed by non-state structures, and then they are accepted at state level. There are a number of directives outlining the objectives to be reached by this or that country, and changes in its legislation may be needed to achieve those goals.
In Russia standards are both created and authorised by the state. However, the time for gradual transition from state standardisation to the active inclusion of business into this process has arrived. “In 2002-2003 standardisation had insufficient financing and, therefore, development. The negligible sum of eight million rubles was allocated, and the industry didn’t participate in this process at all, – said Andrey Lotsmanov, the First Deputy Chairman of Committee on Technical Regulation, Standardisation and Assessment of Compliance at the Russian Union of Industrialists and Entrepreneurs (RSPP). – But in recent years, due to RSPP work, where such companies as RZD, Gazprom and many other participate, this situation has changed. Funding increased one hundred-fold – to RUB 800 million. Financial support from the industry also increased. And today we can speak about parity of participation of business and state in standardisation”. Greater modernisation of Russian national standards was the result of such cooperation, now approximately 1,500–2,000 of them are accepted a year.
Interaction with Europe became much more intensive when all the necessary documents were translated to Russian and English languages, and both parties got an opportunity to study them more closely. The working group on technical regulation which was headed by the Vice President of Siemens Hans-Jörg Grundman and the member of Board of RSPP Dmitry Pumpyansky was created. For the first time the group met in October of 2011 in Munich where a plan of action was developed. At the end of the same year it was confirmed.
“Today work is conducted simultaneously in several directions. The most significant of which is the agreement between Rosstandart and CEN-CENELEC. It is very important that regulatory dialogue, which earlier was at level of state authorities, now received new, more concrete direction. The Russian experts have now an opportunity to use the experience of Europe, which is also interested in harmonisation of standards”, – Andrey Lotsmanov notes.
The process of harmonisation of technical standards concerns both the operation of rolling stock, and manufacturing of components for it. All participants in the market believe that the regulatory base should be updated. “I think the time when we should develop specific proposals in coordination of normative documents, has come, – the Director of the Locomotives and Components Department of Siemens in Russia and Central Asia Rolf Epstain said. – Today an active localisation is going on. And every day there are problems because of uncoordinated technical bases”.
Besides, according to Rolf Epstain, today it is very important to define, what alloys of steel can be used in transport mechanical engineering. The issue here is that normative documents existing in Russia became outdated long ago, and they don’t allow the application of modern alloys. The paradox is that the quality of domestic steelmaking production matches international standards, but it is impossible to use this production, as it is actually forbidden by documents. And it is only one of the examples concerning integration of technical standards at international level.
Lost in Translation
In spite of the fact that operation on unification of standards is being carried out, the term “harmonisation” itself raises many questions. Experts worry that Russian standards will be completely replaced by European ones. The first version of the agreement between Rosstandart and CEN-CENELEC actually was such a replacement. But, according to Mr Lotsmanov, representatives of the domestic industry helped reject this document. Today a new project, in which permission to make changes in the CEN-CENELEC standards has to take into account the Russian features, has been prepared. Also the question of free use of these standards in the territory of the Russian Federation is settled.
The term “harmonization” in Russian really has many interpretations. Let’s remind ourselves that in Europe the harmonised standards are standards fixed in the list under certain directives, but in Russia they are usually understood as standards created on the basis of the foreign ones. In this regard many experts ask: if in domestic standards regarding maintenance of a rolling stock we talk about the temperatures of - 60°С, and in European they talk about - 40°С, does harmonisation mean, that both sides will agree as a result on average temperature in - 50°С? Andrey Lotsmanov answers: no.
Thus, it turns out that now the major goal is framing of common interpretation of this term. But how is it possible to reflect national features in documents? Considering it, some experts suppose that in any case harmonised standards can result in unprofitability of freight transportation. Therefore standards should not be just harmonised, but created again, especially for Russia.
However, harmonisation will be done. All involved in this process (the working group contains already about 2,000 people) promise that as a result Russia will receive standards which will correspond as much as possible to local features.
“It is very difficult to transfer European standards completely. However IRIS is not a suitable decision for small company, as considerable funds for it are required. It is obvious that without harmonisation, the localisation process becomes too complicated. Vendors want to localise manufacturing of certain details, but they can’t. They have to buy components in Europe. Therefore harmonisation is necessary”, – the Board Member, the Director for the International Strategy and Business Development of Kirov Plant Albrecht Bokhov says.
Thus, Russian industry doesn’t need “stupid copying” of European documents, but their creative adaptation is necessary, the First Deputy Chief of Center of Technical Audit of Russian Railways Oleg Senkovsky says.
Results of the activities of the working group on technical regulation can be seen no earlier than at the end of the year at the summit in Brussels. The presentation of the White book which will include all recommendations about harmonisation from representatives of Russia and EU will take place there.
But now members of the working group suggest vendors pay attention to IRIS. Today in Russia seven companies are certified, this year 14 more will be included in this list and 72 are at a preparation stage.
By Christina Alexandrova
[~DETAIL_TEXT] => Looking for Results
Shared transport networks means the existence of common standards. It is indisputable. However previous attempts at integration between the 1520 and 1435 mm networks were hampered by the fact that in Russia, unlike the states of the European Union, the development of technical standards was traditionally the responsibility of the state. Only recently has the industrial sector started to work actively in this area. What the sector gains as a result depends on that work.
In the EU technical standards are developed by non-state structures, and then they are accepted at state level. There are a number of directives outlining the objectives to be reached by this or that country, and changes in its legislation may be needed to achieve those goals.
In Russia standards are both created and authorised by the state. However, the time for gradual transition from state standardisation to the active inclusion of business into this process has arrived. “In 2002-2003 standardisation had insufficient financing and, therefore, development. The negligible sum of eight million rubles was allocated, and the industry didn’t participate in this process at all, – said Andrey Lotsmanov, the First Deputy Chairman of Committee on Technical Regulation, Standardisation and Assessment of Compliance at the Russian Union of Industrialists and Entrepreneurs (RSPP). – But in recent years, due to RSPP work, where such companies as RZD, Gazprom and many other participate, this situation has changed. Funding increased one hundred-fold – to RUB 800 million. Financial support from the industry also increased. And today we can speak about parity of participation of business and state in standardisation”. Greater modernisation of Russian national standards was the result of such cooperation, now approximately 1,500–2,000 of them are accepted a year.
Interaction with Europe became much more intensive when all the necessary documents were translated to Russian and English languages, and both parties got an opportunity to study them more closely. The working group on technical regulation which was headed by the Vice President of Siemens Hans-Jörg Grundman and the member of Board of RSPP Dmitry Pumpyansky was created. For the first time the group met in October of 2011 in Munich where a plan of action was developed. At the end of the same year it was confirmed.
“Today work is conducted simultaneously in several directions. The most significant of which is the agreement between Rosstandart and CEN-CENELEC. It is very important that regulatory dialogue, which earlier was at level of state authorities, now received new, more concrete direction. The Russian experts have now an opportunity to use the experience of Europe, which is also interested in harmonisation of standards”, – Andrey Lotsmanov notes.
The process of harmonisation of technical standards concerns both the operation of rolling stock, and manufacturing of components for it. All participants in the market believe that the regulatory base should be updated. “I think the time when we should develop specific proposals in coordination of normative documents, has come, – the Director of the Locomotives and Components Department of Siemens in Russia and Central Asia Rolf Epstain said. – Today an active localisation is going on. And every day there are problems because of uncoordinated technical bases”.
Besides, according to Rolf Epstain, today it is very important to define, what alloys of steel can be used in transport mechanical engineering. The issue here is that normative documents existing in Russia became outdated long ago, and they don’t allow the application of modern alloys. The paradox is that the quality of domestic steelmaking production matches international standards, but it is impossible to use this production, as it is actually forbidden by documents. And it is only one of the examples concerning integration of technical standards at international level.
Lost in Translation
In spite of the fact that operation on unification of standards is being carried out, the term “harmonisation” itself raises many questions. Experts worry that Russian standards will be completely replaced by European ones. The first version of the agreement between Rosstandart and CEN-CENELEC actually was such a replacement. But, according to Mr Lotsmanov, representatives of the domestic industry helped reject this document. Today a new project, in which permission to make changes in the CEN-CENELEC standards has to take into account the Russian features, has been prepared. Also the question of free use of these standards in the territory of the Russian Federation is settled.
The term “harmonization” in Russian really has many interpretations. Let’s remind ourselves that in Europe the harmonised standards are standards fixed in the list under certain directives, but in Russia they are usually understood as standards created on the basis of the foreign ones. In this regard many experts ask: if in domestic standards regarding maintenance of a rolling stock we talk about the temperatures of - 60°С, and in European they talk about - 40°С, does harmonisation mean, that both sides will agree as a result on average temperature in - 50°С? Andrey Lotsmanov answers: no.
Thus, it turns out that now the major goal is framing of common interpretation of this term. But how is it possible to reflect national features in documents? Considering it, some experts suppose that in any case harmonised standards can result in unprofitability of freight transportation. Therefore standards should not be just harmonised, but created again, especially for Russia.
However, harmonisation will be done. All involved in this process (the working group contains already about 2,000 people) promise that as a result Russia will receive standards which will correspond as much as possible to local features.
“It is very difficult to transfer European standards completely. However IRIS is not a suitable decision for small company, as considerable funds for it are required. It is obvious that without harmonisation, the localisation process becomes too complicated. Vendors want to localise manufacturing of certain details, but they can’t. They have to buy components in Europe. Therefore harmonisation is necessary”, – the Board Member, the Director for the International Strategy and Business Development of Kirov Plant Albrecht Bokhov says.
Thus, Russian industry doesn’t need “stupid copying” of European documents, but their creative adaptation is necessary, the First Deputy Chief of Center of Technical Audit of Russian Railways Oleg Senkovsky says.
Results of the activities of the working group on technical regulation can be seen no earlier than at the end of the year at the summit in Brussels. The presentation of the White book which will include all recommendations about harmonisation from representatives of Russia and EU will take place there.
But now members of the working group suggest vendors pay attention to IRIS. Today in Russia seven companies are certified, this year 14 more will be included in this list and 72 are at a preparation stage.
By Christina Alexandrova
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[DETAIL_TEXT] => Looking for Results
Shared transport networks means the existence of common standards. It is indisputable. However previous attempts at integration between the 1520 and 1435 mm networks were hampered by the fact that in Russia, unlike the states of the European Union, the development of technical standards was traditionally the responsibility of the state. Only recently has the industrial sector started to work actively in this area. What the sector gains as a result depends on that work.
In the EU technical standards are developed by non-state structures, and then they are accepted at state level. There are a number of directives outlining the objectives to be reached by this or that country, and changes in its legislation may be needed to achieve those goals.
In Russia standards are both created and authorised by the state. However, the time for gradual transition from state standardisation to the active inclusion of business into this process has arrived. “In 2002-2003 standardisation had insufficient financing and, therefore, development. The negligible sum of eight million rubles was allocated, and the industry didn’t participate in this process at all, – said Andrey Lotsmanov, the First Deputy Chairman of Committee on Technical Regulation, Standardisation and Assessment of Compliance at the Russian Union of Industrialists and Entrepreneurs (RSPP). – But in recent years, due to RSPP work, where such companies as RZD, Gazprom and many other participate, this situation has changed. Funding increased one hundred-fold – to RUB 800 million. Financial support from the industry also increased. And today we can speak about parity of participation of business and state in standardisation”. Greater modernisation of Russian national standards was the result of such cooperation, now approximately 1,500–2,000 of them are accepted a year.
Interaction with Europe became much more intensive when all the necessary documents were translated to Russian and English languages, and both parties got an opportunity to study them more closely. The working group on technical regulation which was headed by the Vice President of Siemens Hans-Jörg Grundman and the member of Board of RSPP Dmitry Pumpyansky was created. For the first time the group met in October of 2011 in Munich where a plan of action was developed. At the end of the same year it was confirmed.
“Today work is conducted simultaneously in several directions. The most significant of which is the agreement between Rosstandart and CEN-CENELEC. It is very important that regulatory dialogue, which earlier was at level of state authorities, now received new, more concrete direction. The Russian experts have now an opportunity to use the experience of Europe, which is also interested in harmonisation of standards”, – Andrey Lotsmanov notes.
The process of harmonisation of technical standards concerns both the operation of rolling stock, and manufacturing of components for it. All participants in the market believe that the regulatory base should be updated. “I think the time when we should develop specific proposals in coordination of normative documents, has come, – the Director of the Locomotives and Components Department of Siemens in Russia and Central Asia Rolf Epstain said. – Today an active localisation is going on. And every day there are problems because of uncoordinated technical bases”.
Besides, according to Rolf Epstain, today it is very important to define, what alloys of steel can be used in transport mechanical engineering. The issue here is that normative documents existing in Russia became outdated long ago, and they don’t allow the application of modern alloys. The paradox is that the quality of domestic steelmaking production matches international standards, but it is impossible to use this production, as it is actually forbidden by documents. And it is only one of the examples concerning integration of technical standards at international level.
Lost in Translation
In spite of the fact that operation on unification of standards is being carried out, the term “harmonisation” itself raises many questions. Experts worry that Russian standards will be completely replaced by European ones. The first version of the agreement between Rosstandart and CEN-CENELEC actually was such a replacement. But, according to Mr Lotsmanov, representatives of the domestic industry helped reject this document. Today a new project, in which permission to make changes in the CEN-CENELEC standards has to take into account the Russian features, has been prepared. Also the question of free use of these standards in the territory of the Russian Federation is settled.
The term “harmonization” in Russian really has many interpretations. Let’s remind ourselves that in Europe the harmonised standards are standards fixed in the list under certain directives, but in Russia they are usually understood as standards created on the basis of the foreign ones. In this regard many experts ask: if in domestic standards regarding maintenance of a rolling stock we talk about the temperatures of - 60°С, and in European they talk about - 40°С, does harmonisation mean, that both sides will agree as a result on average temperature in - 50°С? Andrey Lotsmanov answers: no.
Thus, it turns out that now the major goal is framing of common interpretation of this term. But how is it possible to reflect national features in documents? Considering it, some experts suppose that in any case harmonised standards can result in unprofitability of freight transportation. Therefore standards should not be just harmonised, but created again, especially for Russia.
However, harmonisation will be done. All involved in this process (the working group contains already about 2,000 people) promise that as a result Russia will receive standards which will correspond as much as possible to local features.
“It is very difficult to transfer European standards completely. However IRIS is not a suitable decision for small company, as considerable funds for it are required. It is obvious that without harmonisation, the localisation process becomes too complicated. Vendors want to localise manufacturing of certain details, but they can’t. They have to buy components in Europe. Therefore harmonisation is necessary”, – the Board Member, the Director for the International Strategy and Business Development of Kirov Plant Albrecht Bokhov says.
Thus, Russian industry doesn’t need “stupid copying” of European documents, but their creative adaptation is necessary, the First Deputy Chief of Center of Technical Audit of Russian Railways Oleg Senkovsky says.
Results of the activities of the working group on technical regulation can be seen no earlier than at the end of the year at the summit in Brussels. The presentation of the White book which will include all recommendations about harmonisation from representatives of Russia and EU will take place there.
But now members of the working group suggest vendors pay attention to IRIS. Today in Russia seven companies are certified, this year 14 more will be included in this list and 72 are at a preparation stage.
By Christina Alexandrova
[~DETAIL_TEXT] => Looking for Results
Shared transport networks means the existence of common standards. It is indisputable. However previous attempts at integration between the 1520 and 1435 mm networks were hampered by the fact that in Russia, unlike the states of the European Union, the development of technical standards was traditionally the responsibility of the state. Only recently has the industrial sector started to work actively in this area. What the sector gains as a result depends on that work.
In the EU technical standards are developed by non-state structures, and then they are accepted at state level. There are a number of directives outlining the objectives to be reached by this or that country, and changes in its legislation may be needed to achieve those goals.
In Russia standards are both created and authorised by the state. However, the time for gradual transition from state standardisation to the active inclusion of business into this process has arrived. “In 2002-2003 standardisation had insufficient financing and, therefore, development. The negligible sum of eight million rubles was allocated, and the industry didn’t participate in this process at all, – said Andrey Lotsmanov, the First Deputy Chairman of Committee on Technical Regulation, Standardisation and Assessment of Compliance at the Russian Union of Industrialists and Entrepreneurs (RSPP). – But in recent years, due to RSPP work, where such companies as RZD, Gazprom and many other participate, this situation has changed. Funding increased one hundred-fold – to RUB 800 million. Financial support from the industry also increased. And today we can speak about parity of participation of business and state in standardisation”. Greater modernisation of Russian national standards was the result of such cooperation, now approximately 1,500–2,000 of them are accepted a year.
Interaction with Europe became much more intensive when all the necessary documents were translated to Russian and English languages, and both parties got an opportunity to study them more closely. The working group on technical regulation which was headed by the Vice President of Siemens Hans-Jörg Grundman and the member of Board of RSPP Dmitry Pumpyansky was created. For the first time the group met in October of 2011 in Munich where a plan of action was developed. At the end of the same year it was confirmed.
“Today work is conducted simultaneously in several directions. The most significant of which is the agreement between Rosstandart and CEN-CENELEC. It is very important that regulatory dialogue, which earlier was at level of state authorities, now received new, more concrete direction. The Russian experts have now an opportunity to use the experience of Europe, which is also interested in harmonisation of standards”, – Andrey Lotsmanov notes.
The process of harmonisation of technical standards concerns both the operation of rolling stock, and manufacturing of components for it. All participants in the market believe that the regulatory base should be updated. “I think the time when we should develop specific proposals in coordination of normative documents, has come, – the Director of the Locomotives and Components Department of Siemens in Russia and Central Asia Rolf Epstain said. – Today an active localisation is going on. And every day there are problems because of uncoordinated technical bases”.
Besides, according to Rolf Epstain, today it is very important to define, what alloys of steel can be used in transport mechanical engineering. The issue here is that normative documents existing in Russia became outdated long ago, and they don’t allow the application of modern alloys. The paradox is that the quality of domestic steelmaking production matches international standards, but it is impossible to use this production, as it is actually forbidden by documents. And it is only one of the examples concerning integration of technical standards at international level.
Lost in Translation
In spite of the fact that operation on unification of standards is being carried out, the term “harmonisation” itself raises many questions. Experts worry that Russian standards will be completely replaced by European ones. The first version of the agreement between Rosstandart and CEN-CENELEC actually was such a replacement. But, according to Mr Lotsmanov, representatives of the domestic industry helped reject this document. Today a new project, in which permission to make changes in the CEN-CENELEC standards has to take into account the Russian features, has been prepared. Also the question of free use of these standards in the territory of the Russian Federation is settled.
The term “harmonization” in Russian really has many interpretations. Let’s remind ourselves that in Europe the harmonised standards are standards fixed in the list under certain directives, but in Russia they are usually understood as standards created on the basis of the foreign ones. In this regard many experts ask: if in domestic standards regarding maintenance of a rolling stock we talk about the temperatures of - 60°С, and in European they talk about - 40°С, does harmonisation mean, that both sides will agree as a result on average temperature in - 50°С? Andrey Lotsmanov answers: no.
Thus, it turns out that now the major goal is framing of common interpretation of this term. But how is it possible to reflect national features in documents? Considering it, some experts suppose that in any case harmonised standards can result in unprofitability of freight transportation. Therefore standards should not be just harmonised, but created again, especially for Russia.
However, harmonisation will be done. All involved in this process (the working group contains already about 2,000 people) promise that as a result Russia will receive standards which will correspond as much as possible to local features.
“It is very difficult to transfer European standards completely. However IRIS is not a suitable decision for small company, as considerable funds for it are required. It is obvious that without harmonisation, the localisation process becomes too complicated. Vendors want to localise manufacturing of certain details, but they can’t. They have to buy components in Europe. Therefore harmonisation is necessary”, – the Board Member, the Director for the International Strategy and Business Development of Kirov Plant Albrecht Bokhov says.
Thus, Russian industry doesn’t need “stupid copying” of European documents, but their creative adaptation is necessary, the First Deputy Chief of Center of Technical Audit of Russian Railways Oleg Senkovsky says.
Results of the activities of the working group on technical regulation can be seen no earlier than at the end of the year at the summit in Brussels. The presentation of the White book which will include all recommendations about harmonisation from representatives of Russia and EU will take place there.
But now members of the working group suggest vendors pay attention to IRIS. Today in Russia seven companies are certified, this year 14 more will be included in this list and 72 are at a preparation stage.
By Christina Alexandrova
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Because of globalisation and the development of international projects in logistics, the Russian transportation market requires a major transformation. And CEO of German company TransCare AG Ralph Jahncke is sure, that it has already started. However, there are a lot of unsolved problems.Array
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[DETAIL_TEXT] => Top Management Isn’t Guilty
– Mr Jahncke, why have you decided to develop your business in Russia?
– I came to Russia long ago, with other company, and with TransCare I have been here since 2003. Now we have an office in Moscow. I remember that I began work here on a joint project for the Ministry of Transport. And then I met the President of Russian Railways Vladimir Yakunin, he said that our experience would be very important for Russia. As we see, the market here is developing rapidly, said Vladimir Yakunin. Therefore, we can introduce western standards of business to support the local logistics sector. I think, it was his invitation, which made me begin my work in Russia.
– And how do you evaluate today’s collaboration with RZD? What difficulties do you have in interaction with management personnel of the Russian company?
– The top management of RZD are very highly-skilled people, very clever and well educated. But I would like to note that control of freight traffic needs careful work and fast decision-making. And here difficulties are usually caused by other layers of management within Russian Railways. For example, interaction with management of the different railways is usually very complicated. I would also say that some heads of the railways can behave like they are “the king in the region”. Therefore sometimes it requires a lot of time to convince them to make a certain decision. And as you will appreciate, this influences the speed of delivery of cargo. Such problems in communication with Russian Railways arise usually at the third or fourth level of managers after top management - between those who make the decision and those who carry it out.
– Have you ever faced such entrenched problems within Russian business like corruption and bureaucracy?
– Yes, I heard about these problems, and I personally faced them. I even lost some contracts because I was not ready to make additional payment to the third parties. I don’t speak about RZD, I speak about the system of Russian business in general. If you work with the middle layers of management, you face this problem in 50% of cases. In 80-90% of cases they try to invite you to a dinner, and very diplomatically try to get the additional sums of money. If you work with top management, such problems never arise. But I will note that, fortunately, we have good and strong relations with clients and partners.
– Does your company promote green logistics standards? How you do it in Russia?
– The environment in Russia has never been a priority. And it is obvious. As for our company, TransCare has a lot of projects in green logistics in Germany. In Europe following environmental standards is very important. I will give you an example. By shortening a route of cargo transportation, we reduce the volume of harmful emissions into the atmosphere. That is the less miles cargo travels, the better it is for the environment. You see, we improve a logistics chain and we support environmental standards. As a result we have increased the speed of delivery, and improved the quality of the work. Unfortunately, in Russia companies don’t understand this. They think like: green or not green logistics, it somehow doesn’t affect the transportation cost.
I think that the Russian system of railway cargo transportation needs liberalisation. It is obvious that now the railway loses cargoes over short distances – they pass to motor transport. But distances over 500 km are very attractive to the railway. If the system becomes more flexible, these cargoes will return to the network, and it will promote the development of green logistics. Because, as we know, rail transport is better for the environment, than cars.
The Problem Is Low Loyalty
– So you have been working for many years in Russia. How can you describe the current situation in the logistics market here?
– There was an appreciable breakthrough in the last 4-5 years in this segment of the market in Russia. The private logistics companies and operators accepted the western standards, today there is a lot of cooperation with foreign companies here, even international joint ventures are sometimes created. For example – such giants as Globaltrans or FESCO – they develop accurately to the western standards.
Today there are many international projects. Our company had two directions of work up until 2008-2009 – the European clients to whom we promoted business in Russia, and the Russian clients who wanted to raise the level of their development. Later we started to create international joint ventures. Business becomes more international and requires highly skilled experts.
– How do you view the level of education in logistics in Russia? Was it difficult to find high-skilled personnel here?
– Technical education in your country is very good, but commercial education is not really strong, therefore we have to train our Russian workers, to use them in our European projects. This way we are raising the level of their qualification. There is a huge gap in logistics education, because education in Russia is focused generally on technical processes, instead of the marketing and commercial aspects. Therefore it was very difficult to find the right people here. And now we regularly take out Russian staff to the German office for 3-6 months where we teach them logistics and give them some commercial know-how.
– As a businessman, are you satisfied by the atmosphere in the Russian market? Or did you expect to see something else here?
– After years of work in Russia, I started to understand your market better; I made a lot of friends here. And I am surprised. Yes, I am pleasantly surprised by the opportunities that the Russian market gives. But I am really upset with level of loyalty of workers. Most of them are not interested in developing long-term relations. In Germany the loyalty of employees is much higher. But here, if an employee is offered work with a salary of $100 more, he will leave the company, sometimes even without any notice.
By Christina Alexandrova
[~DETAIL_TEXT] => Top Management Isn’t Guilty
– Mr Jahncke, why have you decided to develop your business in Russia?
– I came to Russia long ago, with other company, and with TransCare I have been here since 2003. Now we have an office in Moscow. I remember that I began work here on a joint project for the Ministry of Transport. And then I met the President of Russian Railways Vladimir Yakunin, he said that our experience would be very important for Russia. As we see, the market here is developing rapidly, said Vladimir Yakunin. Therefore, we can introduce western standards of business to support the local logistics sector. I think, it was his invitation, which made me begin my work in Russia.
– And how do you evaluate today’s collaboration with RZD? What difficulties do you have in interaction with management personnel of the Russian company?
– The top management of RZD are very highly-skilled people, very clever and well educated. But I would like to note that control of freight traffic needs careful work and fast decision-making. And here difficulties are usually caused by other layers of management within Russian Railways. For example, interaction with management of the different railways is usually very complicated. I would also say that some heads of the railways can behave like they are “the king in the region”. Therefore sometimes it requires a lot of time to convince them to make a certain decision. And as you will appreciate, this influences the speed of delivery of cargo. Such problems in communication with Russian Railways arise usually at the third or fourth level of managers after top management - between those who make the decision and those who carry it out.
– Have you ever faced such entrenched problems within Russian business like corruption and bureaucracy?
– Yes, I heard about these problems, and I personally faced them. I even lost some contracts because I was not ready to make additional payment to the third parties. I don’t speak about RZD, I speak about the system of Russian business in general. If you work with the middle layers of management, you face this problem in 50% of cases. In 80-90% of cases they try to invite you to a dinner, and very diplomatically try to get the additional sums of money. If you work with top management, such problems never arise. But I will note that, fortunately, we have good and strong relations with clients and partners.
– Does your company promote green logistics standards? How you do it in Russia?
– The environment in Russia has never been a priority. And it is obvious. As for our company, TransCare has a lot of projects in green logistics in Germany. In Europe following environmental standards is very important. I will give you an example. By shortening a route of cargo transportation, we reduce the volume of harmful emissions into the atmosphere. That is the less miles cargo travels, the better it is for the environment. You see, we improve a logistics chain and we support environmental standards. As a result we have increased the speed of delivery, and improved the quality of the work. Unfortunately, in Russia companies don’t understand this. They think like: green or not green logistics, it somehow doesn’t affect the transportation cost.
I think that the Russian system of railway cargo transportation needs liberalisation. It is obvious that now the railway loses cargoes over short distances – they pass to motor transport. But distances over 500 km are very attractive to the railway. If the system becomes more flexible, these cargoes will return to the network, and it will promote the development of green logistics. Because, as we know, rail transport is better for the environment, than cars.
The Problem Is Low Loyalty
– So you have been working for many years in Russia. How can you describe the current situation in the logistics market here?
– There was an appreciable breakthrough in the last 4-5 years in this segment of the market in Russia. The private logistics companies and operators accepted the western standards, today there is a lot of cooperation with foreign companies here, even international joint ventures are sometimes created. For example – such giants as Globaltrans or FESCO – they develop accurately to the western standards.
Today there are many international projects. Our company had two directions of work up until 2008-2009 – the European clients to whom we promoted business in Russia, and the Russian clients who wanted to raise the level of their development. Later we started to create international joint ventures. Business becomes more international and requires highly skilled experts.
– How do you view the level of education in logistics in Russia? Was it difficult to find high-skilled personnel here?
– Technical education in your country is very good, but commercial education is not really strong, therefore we have to train our Russian workers, to use them in our European projects. This way we are raising the level of their qualification. There is a huge gap in logistics education, because education in Russia is focused generally on technical processes, instead of the marketing and commercial aspects. Therefore it was very difficult to find the right people here. And now we regularly take out Russian staff to the German office for 3-6 months where we teach them logistics and give them some commercial know-how.
– As a businessman, are you satisfied by the atmosphere in the Russian market? Or did you expect to see something else here?
– After years of work in Russia, I started to understand your market better; I made a lot of friends here. And I am surprised. Yes, I am pleasantly surprised by the opportunities that the Russian market gives. But I am really upset with level of loyalty of workers. Most of them are not interested in developing long-term relations. In Germany the loyalty of employees is much higher. But here, if an employee is offered work with a salary of $100 more, he will leave the company, sometimes even without any notice.
By Christina Alexandrova
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[DETAIL_TEXT] => Top Management Isn’t Guilty
– Mr Jahncke, why have you decided to develop your business in Russia?
– I came to Russia long ago, with other company, and with TransCare I have been here since 2003. Now we have an office in Moscow. I remember that I began work here on a joint project for the Ministry of Transport. And then I met the President of Russian Railways Vladimir Yakunin, he said that our experience would be very important for Russia. As we see, the market here is developing rapidly, said Vladimir Yakunin. Therefore, we can introduce western standards of business to support the local logistics sector. I think, it was his invitation, which made me begin my work in Russia.
– And how do you evaluate today’s collaboration with RZD? What difficulties do you have in interaction with management personnel of the Russian company?
– The top management of RZD are very highly-skilled people, very clever and well educated. But I would like to note that control of freight traffic needs careful work and fast decision-making. And here difficulties are usually caused by other layers of management within Russian Railways. For example, interaction with management of the different railways is usually very complicated. I would also say that some heads of the railways can behave like they are “the king in the region”. Therefore sometimes it requires a lot of time to convince them to make a certain decision. And as you will appreciate, this influences the speed of delivery of cargo. Such problems in communication with Russian Railways arise usually at the third or fourth level of managers after top management - between those who make the decision and those who carry it out.
– Have you ever faced such entrenched problems within Russian business like corruption and bureaucracy?
– Yes, I heard about these problems, and I personally faced them. I even lost some contracts because I was not ready to make additional payment to the third parties. I don’t speak about RZD, I speak about the system of Russian business in general. If you work with the middle layers of management, you face this problem in 50% of cases. In 80-90% of cases they try to invite you to a dinner, and very diplomatically try to get the additional sums of money. If you work with top management, such problems never arise. But I will note that, fortunately, we have good and strong relations with clients and partners.
– Does your company promote green logistics standards? How you do it in Russia?
– The environment in Russia has never been a priority. And it is obvious. As for our company, TransCare has a lot of projects in green logistics in Germany. In Europe following environmental standards is very important. I will give you an example. By shortening a route of cargo transportation, we reduce the volume of harmful emissions into the atmosphere. That is the less miles cargo travels, the better it is for the environment. You see, we improve a logistics chain and we support environmental standards. As a result we have increased the speed of delivery, and improved the quality of the work. Unfortunately, in Russia companies don’t understand this. They think like: green or not green logistics, it somehow doesn’t affect the transportation cost.
I think that the Russian system of railway cargo transportation needs liberalisation. It is obvious that now the railway loses cargoes over short distances – they pass to motor transport. But distances over 500 km are very attractive to the railway. If the system becomes more flexible, these cargoes will return to the network, and it will promote the development of green logistics. Because, as we know, rail transport is better for the environment, than cars.
The Problem Is Low Loyalty
– So you have been working for many years in Russia. How can you describe the current situation in the logistics market here?
– There was an appreciable breakthrough in the last 4-5 years in this segment of the market in Russia. The private logistics companies and operators accepted the western standards, today there is a lot of cooperation with foreign companies here, even international joint ventures are sometimes created. For example – such giants as Globaltrans or FESCO – they develop accurately to the western standards.
Today there are many international projects. Our company had two directions of work up until 2008-2009 – the European clients to whom we promoted business in Russia, and the Russian clients who wanted to raise the level of their development. Later we started to create international joint ventures. Business becomes more international and requires highly skilled experts.
– How do you view the level of education in logistics in Russia? Was it difficult to find high-skilled personnel here?
– Technical education in your country is very good, but commercial education is not really strong, therefore we have to train our Russian workers, to use them in our European projects. This way we are raising the level of their qualification. There is a huge gap in logistics education, because education in Russia is focused generally on technical processes, instead of the marketing and commercial aspects. Therefore it was very difficult to find the right people here. And now we regularly take out Russian staff to the German office for 3-6 months where we teach them logistics and give them some commercial know-how.
– As a businessman, are you satisfied by the atmosphere in the Russian market? Or did you expect to see something else here?
– After years of work in Russia, I started to understand your market better; I made a lot of friends here. And I am surprised. Yes, I am pleasantly surprised by the opportunities that the Russian market gives. But I am really upset with level of loyalty of workers. Most of them are not interested in developing long-term relations. In Germany the loyalty of employees is much higher. But here, if an employee is offered work with a salary of $100 more, he will leave the company, sometimes even without any notice.
By Christina Alexandrova
[~DETAIL_TEXT] => Top Management Isn’t Guilty
– Mr Jahncke, why have you decided to develop your business in Russia?
– I came to Russia long ago, with other company, and with TransCare I have been here since 2003. Now we have an office in Moscow. I remember that I began work here on a joint project for the Ministry of Transport. And then I met the President of Russian Railways Vladimir Yakunin, he said that our experience would be very important for Russia. As we see, the market here is developing rapidly, said Vladimir Yakunin. Therefore, we can introduce western standards of business to support the local logistics sector. I think, it was his invitation, which made me begin my work in Russia.
– And how do you evaluate today’s collaboration with RZD? What difficulties do you have in interaction with management personnel of the Russian company?
– The top management of RZD are very highly-skilled people, very clever and well educated. But I would like to note that control of freight traffic needs careful work and fast decision-making. And here difficulties are usually caused by other layers of management within Russian Railways. For example, interaction with management of the different railways is usually very complicated. I would also say that some heads of the railways can behave like they are “the king in the region”. Therefore sometimes it requires a lot of time to convince them to make a certain decision. And as you will appreciate, this influences the speed of delivery of cargo. Such problems in communication with Russian Railways arise usually at the third or fourth level of managers after top management - between those who make the decision and those who carry it out.
– Have you ever faced such entrenched problems within Russian business like corruption and bureaucracy?
– Yes, I heard about these problems, and I personally faced them. I even lost some contracts because I was not ready to make additional payment to the third parties. I don’t speak about RZD, I speak about the system of Russian business in general. If you work with the middle layers of management, you face this problem in 50% of cases. In 80-90% of cases they try to invite you to a dinner, and very diplomatically try to get the additional sums of money. If you work with top management, such problems never arise. But I will note that, fortunately, we have good and strong relations with clients and partners.
– Does your company promote green logistics standards? How you do it in Russia?
– The environment in Russia has never been a priority. And it is obvious. As for our company, TransCare has a lot of projects in green logistics in Germany. In Europe following environmental standards is very important. I will give you an example. By shortening a route of cargo transportation, we reduce the volume of harmful emissions into the atmosphere. That is the less miles cargo travels, the better it is for the environment. You see, we improve a logistics chain and we support environmental standards. As a result we have increased the speed of delivery, and improved the quality of the work. Unfortunately, in Russia companies don’t understand this. They think like: green or not green logistics, it somehow doesn’t affect the transportation cost.
I think that the Russian system of railway cargo transportation needs liberalisation. It is obvious that now the railway loses cargoes over short distances – they pass to motor transport. But distances over 500 km are very attractive to the railway. If the system becomes more flexible, these cargoes will return to the network, and it will promote the development of green logistics. Because, as we know, rail transport is better for the environment, than cars.
The Problem Is Low Loyalty
– So you have been working for many years in Russia. How can you describe the current situation in the logistics market here?
– There was an appreciable breakthrough in the last 4-5 years in this segment of the market in Russia. The private logistics companies and operators accepted the western standards, today there is a lot of cooperation with foreign companies here, even international joint ventures are sometimes created. For example – such giants as Globaltrans or FESCO – they develop accurately to the western standards.
Today there are many international projects. Our company had two directions of work up until 2008-2009 – the European clients to whom we promoted business in Russia, and the Russian clients who wanted to raise the level of their development. Later we started to create international joint ventures. Business becomes more international and requires highly skilled experts.
– How do you view the level of education in logistics in Russia? Was it difficult to find high-skilled personnel here?
– Technical education in your country is very good, but commercial education is not really strong, therefore we have to train our Russian workers, to use them in our European projects. This way we are raising the level of their qualification. There is a huge gap in logistics education, because education in Russia is focused generally on technical processes, instead of the marketing and commercial aspects. Therefore it was very difficult to find the right people here. And now we regularly take out Russian staff to the German office for 3-6 months where we teach them logistics and give them some commercial know-how.
– As a businessman, are you satisfied by the atmosphere in the Russian market? Or did you expect to see something else here?
– After years of work in Russia, I started to understand your market better; I made a lot of friends here. And I am surprised. Yes, I am pleasantly surprised by the opportunities that the Russian market gives. But I am really upset with level of loyalty of workers. Most of them are not interested in developing long-term relations. In Germany the loyalty of employees is much higher. But here, if an employee is offered work with a salary of $100 more, he will leave the company, sometimes even without any notice.
By Christina Alexandrova
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This year, the locomotive complex of Russian Railways JSC shows steady growth in key performance indicators, but still there are some unsolved questions. Array
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[DETAIL_TEXT] => New Methods Are Needed
– Mr Vorotilkin, how are the key performance indicators at the RZD locomotive complex being executed this year?
– First of all I would like to say that today it is an impressive part of Russian Railways with an extensive network of linear businesses, multiple fleets of locomotives and 200,000 employees in various specialties involved in a single technological and production process.
In the first half of 2012, the volume of work by all types of traffic exceeded the plan by 1.1% (compared to last year the growth was 4.2%), the average weight of a freight train increased by 0.4%. The Directorate of Traction and Locomotives Repair handled planned budget indicators of prime costs and transportation costs. At the same time, despite this apparent success, some issues regarding cooperation with subcontractors are not fully resolved. We performed all the tasks of the Central Directorate of Traffic Control concerning the maintenance of the fleet of locomotives (by the way, in 2011-2012 the fleet increased by 7.8%), but did not reach the specified level on such quality indicators on using traction rolling stock, as the average performance of the locomotive (-3.3% in the last years) and average mileage (-2.9%).
– What are the reasons behind such a backlog of work, in your opinion? And how can it be overcome?
– In today’s challenging operating environment where the private car fleet dominates, our main objective is to provide a smooth performance of planned tasks concerning the maintenance of locomotives and locomotive crews in order to perform the required amount of work. But these are not enough to meet all the quality indicators.
The surplus share of freight cars in the working fleet that are standing idle on RZD’s public stations influence the situation a lot. The analysis revealed that the working fleet of cars on technical stations and on public stations’ cargo areas, operations increased by 62% in July of year compared to the pre-crisis year of 2008. This led to longer processing times for trains at marshalling yards and to increased car demurrage during cargo operations. All of these factors ultimately lead to a significant loss in operational work.
On average more than 2,700 trains every day leave the forming stations while locomotive crews have been working more than two hours. Accordingly, every day more than 200 locomotives and 900 freight locomotive crews are additionally maintained. In just 6 months over 502,000 of such trains were sent. During the same period, we have 3,000 cases of locomotive crews being on work less than 3 hours and 15,000 – more than 12 hours.
Obviously today we cannot solve the problems with the help of the old methods and increase continuously the number of locomotives and locomotive crews, because it increases our costs, and significant costs, as a locomotive crew worker is one of the most highly paid specialists in the company. Each additional member of a crew that is used inefficiently, brings additional expenses for salaries, maintenance and repair, as well as for payment for the fuel and energy resources.
The simple solution to the transport problems should be the introduction of new efficient fleet management technologies regulating the functions of all participants in the transport process, which will be based on the regulatory and technological documents of the rail industry. It is necessary to determine the requirement for loading resources for the entire month, which, in its turn, will ensure quality and accuracy in station complex rationing, as well as in rationing of locomotives and locomotive crews and the scope and sequence of repair of infrastructure. The implementation of these principles in the technology of the transportation process across a large number of train operators working in the same sector, will ensure stable economic demand for the transportation of goods.
Investment Priorities
– How is the problem of an ageing locomotive fleet solved at the moment?
– The lack of a reliable supply of traction vehicles in the 1990-s forces us now to carry out a wide scale program of work on extending the life of locomotives according to their design and coordinated with federal agencies’ technical solutions. This work is organised at the Zheldorremmash plants and locomotive depots. In addition, the investment program of Russian Railways increased in 2012 in order to purchase new locomotives. In general, it is planned to purchase more than 500 modern traction vehicles. Additionally we are developing new approaches to increase reliability and reduce the cost of maintenance and repair of locomotives. As an example, I can tell you about the EP2K locomotive. The producer increased average mileage between repair stops from 600,000 to 800,000 kilometres. And the opportunity of using limiting equipment (wheel set) will soon increase that to 1 million kilometres.
In general, implementation of these measures will significantly reduce operating costs during the life cycle of locomotives.
This is a good example of problem solving, and we are now working out similar approaches on all models of traction vehicles.
– What other investment projects are planned in the locomotive complex for 2012?
– In addition to the purchase of new machinery, we expect to upgrade and repair almost 2,000 locomotives. We have RUB 1.5 billion to develop this. According to the investment program for this year, the Repair Locomotives Directorate allocated the budget of RUB 1.9 billion. More than RUB 640 million will be spent on equipping the locomotive repair depot.
– How does the Traction Directorate build its relations with repair companies?
– We work on the “customer - performer” principle with all of them without an exception. Formation of such a management model allows us to build transparent relationships between all members of the operation and locomotives maintenance system, improve reliability and create a healthy competitive environment. I would also like to talk about locomotive service. Today, we are implementing this system on a large scale, and till July 1 4,980 locomotives have been passed to 53 maintenance depots.
While implementing this project we were able to increase the rate of technical availability of locomotives as well as increasing the volume of traffic. We also could create an incentive for producers to increase reliability and improve their technologies.
In addition, the implementation of new approaches in the relationship between service companies, manufacturers and the owner of locomotives is held. It results in attracting investment in the modernisation of the service park and in the technical equipment of repair depots. We have built warehouses for spare parts and materials for TMH-Service totaling RUB 1.7 billion and for STM-Service in the amount of RUB 175 million.
In fact, we have achieved positive results so far only in the electric fleet. Speaking about the diesel locomotives, an accountability moment for service hasn’t come but this is the task for the very near future.
At the same time, I would like to stress that an visible effect will appear only in the medium term of 3-5 years, when there will be some experience and the opportunity to compare the performance of the service in different periods in comparable conditions. I should add that this year a new contract, toughening the requirements upon service companies in terms of quality of locomotives repair and provides for penalties to be introduced.
– What are the targets of the locomotive complex to the end of this year?
– First of all, it is the performance of targets set by the company: the insurance of guaranteed safety, reducing failures and accidents, implementation of measures to reduce unnecessary loss regarding the usage of locomotives and of locomotive crews.
We also need to ensure 100% within the limits provided by the investment program, to prepare locomotives and infrastructure for operation in winter conditions. One of the major challenges for us is to build by the end of this year an effective system of control of the complex. This will be done through the budgets of structures involved in the process of its operation and maintenance, as well as forming a joint evaluation of performance indicators. These are the goals that we set out for ourselves in the short term, but in the coming years the key focus will be certainly on increasing efficiency.
– What does it mean?
– The concept of a single center of responsibility, based on the Traction Directorate and Comprehensive Program of improvement of the efficiency of the locomotive complex, has been developed with the help of consulting companies such as McKinsey, the Institute of Natural Monopolies, Oliver Weimann, and Pokrovka Finance.
They defined our medium term in structuring programs for operational work, complex management, increasing the reliability of technical equipment, insurance of traffic safety and also executing a program of repair of locomotives and renewal of fixed assets. Currently we are implementing a major program of technological and operating reorganisation of enterprises with the regard to ground technology work and formation of production business models, which are derived from best international practices. In this case, we have identified the main activities of the locomotive complex - providing traffic management and repair of traction rolling stock. This, in its turn, allows the transition of operation and maintenance from functional-territorial management principle to management according to types of activities with increased responsibility for the outcome and financial transparency. Introduction of a more reasonable approach to determinate resource requirements is also planned. ®
Interviewed by Elena Ushkova
our reference
Quality Leaps
Top management at the Russian Railways JSC considers the creation of new designs of diesel engines for the railway rolling stock as the most important task for the diesel industry in Russia. Currently, the National Technological Base 2011-2015 federal target program (FTP) is developing a program of Russian diesel engineering improvement.
According to experts, today diesel engine manufacturing is in crisis and a leap in quality is necessary for a number of components. Valentin Gapanovich, Senior Vice President of the Russian Railways, the President of Association of Manufacturers of Railway Equipment (OPZHT) NP, points to significant (up to 75-85%) depreciation of fixed assets, the lack of applied scientific research, the lack of experimental-design works and development of specialised production, the low technical quality of the parts and components of diesel engines and a shortage of qualified personnel as the reasons for the industry’s distress. These factors, according to V. Gapanovich, led to a critical reduction in the competitiveness of diesel engines and components made in Russia.
Mechanical engineers recognised that today the machine building market is characterised by the lack of a full engine power band and a gap in the main technical and economic indicators due to the lack of modern modifications and poorly- equipped production. Many unique enterprises were simply lost and as a result Russian domestic industry has lost some links in its production chains. Thus, today there are a number of components in diesel building, which are not produced in Russia. Accordingly, consumers have to import technology, which is reflected in the cost of the final product, service and repair of equipment, and as a result has a negative impact on the competitiveness of domestic developments.
In addition, Vladimir Shneidmueller, Technical Director of Transmashholding CJSC, says that currently modern electronic devices and components that ensure optimal management of the diesel engine and its impact on the environment are not developed and produced in Russia. He also considers the lack of monitor diagnostic systems over the state of the diesel engine, methodologies and criteria for its evaluation among the challenges.
It is noteworthy that foreign manufacturers of diesel engines (Wärtsilä, GE, Cummins, Caterpillar, MTV, etc.) use in their designs components from the most specialised companies: Mahle (pistons), Glico (indigenous and connecting rod inserts), Goetze (piston rings), DUAP (fuel injection equipment). Cooperation between diesel engine manufacturers and firms that specialise in the production of components: fuel systems, controls, piston rings, filters, turbochargers, etc., - is highly developed abroad. This approach relieves the main producer of the need to purchase expensive equipment. Moreover, maintaining the production of all major components of diesel manufacture at a relativity small scale is economically feasible. Recently, domestic engineering companies, in their turn, also strengthened cooperation with foreign companies - suppliers of components.
In addition, V. Gapanovich emphasises the need to focus on the production of up to 80% of the components directly in Russia and only the remaining part of the production of high-tech industries is permissible to be bought abroad. This view is shared by most of the Russian machine-building enterprises. In fact, they paid tribute to foreign machines and equipment and they unconditionally prefer them instead of domestic counterparts.
Experts believe that creation of a next-generation competitive diesel engine is impossible without high-tech components. Only modern and high-tech fuel injection and turbocharging systems can, to a considerable degree, satisfy market requirements and environmental standards that are critical to diesel engines in terms of efficiency, content of harmful emissions, specific weight, throttle response, high reliability and durability.
By Elena Ushkova
[~DETAIL_TEXT] => New Methods Are Needed
– Mr Vorotilkin, how are the key performance indicators at the RZD locomotive complex being executed this year?
– First of all I would like to say that today it is an impressive part of Russian Railways with an extensive network of linear businesses, multiple fleets of locomotives and 200,000 employees in various specialties involved in a single technological and production process.
In the first half of 2012, the volume of work by all types of traffic exceeded the plan by 1.1% (compared to last year the growth was 4.2%), the average weight of a freight train increased by 0.4%. The Directorate of Traction and Locomotives Repair handled planned budget indicators of prime costs and transportation costs. At the same time, despite this apparent success, some issues regarding cooperation with subcontractors are not fully resolved. We performed all the tasks of the Central Directorate of Traffic Control concerning the maintenance of the fleet of locomotives (by the way, in 2011-2012 the fleet increased by 7.8%), but did not reach the specified level on such quality indicators on using traction rolling stock, as the average performance of the locomotive (-3.3% in the last years) and average mileage (-2.9%).
– What are the reasons behind such a backlog of work, in your opinion? And how can it be overcome?
– In today’s challenging operating environment where the private car fleet dominates, our main objective is to provide a smooth performance of planned tasks concerning the maintenance of locomotives and locomotive crews in order to perform the required amount of work. But these are not enough to meet all the quality indicators.
The surplus share of freight cars in the working fleet that are standing idle on RZD’s public stations influence the situation a lot. The analysis revealed that the working fleet of cars on technical stations and on public stations’ cargo areas, operations increased by 62% in July of year compared to the pre-crisis year of 2008. This led to longer processing times for trains at marshalling yards and to increased car demurrage during cargo operations. All of these factors ultimately lead to a significant loss in operational work.
On average more than 2,700 trains every day leave the forming stations while locomotive crews have been working more than two hours. Accordingly, every day more than 200 locomotives and 900 freight locomotive crews are additionally maintained. In just 6 months over 502,000 of such trains were sent. During the same period, we have 3,000 cases of locomotive crews being on work less than 3 hours and 15,000 – more than 12 hours.
Obviously today we cannot solve the problems with the help of the old methods and increase continuously the number of locomotives and locomotive crews, because it increases our costs, and significant costs, as a locomotive crew worker is one of the most highly paid specialists in the company. Each additional member of a crew that is used inefficiently, brings additional expenses for salaries, maintenance and repair, as well as for payment for the fuel and energy resources.
The simple solution to the transport problems should be the introduction of new efficient fleet management technologies regulating the functions of all participants in the transport process, which will be based on the regulatory and technological documents of the rail industry. It is necessary to determine the requirement for loading resources for the entire month, which, in its turn, will ensure quality and accuracy in station complex rationing, as well as in rationing of locomotives and locomotive crews and the scope and sequence of repair of infrastructure. The implementation of these principles in the technology of the transportation process across a large number of train operators working in the same sector, will ensure stable economic demand for the transportation of goods.
Investment Priorities
– How is the problem of an ageing locomotive fleet solved at the moment?
– The lack of a reliable supply of traction vehicles in the 1990-s forces us now to carry out a wide scale program of work on extending the life of locomotives according to their design and coordinated with federal agencies’ technical solutions. This work is organised at the Zheldorremmash plants and locomotive depots. In addition, the investment program of Russian Railways increased in 2012 in order to purchase new locomotives. In general, it is planned to purchase more than 500 modern traction vehicles. Additionally we are developing new approaches to increase reliability and reduce the cost of maintenance and repair of locomotives. As an example, I can tell you about the EP2K locomotive. The producer increased average mileage between repair stops from 600,000 to 800,000 kilometres. And the opportunity of using limiting equipment (wheel set) will soon increase that to 1 million kilometres.
In general, implementation of these measures will significantly reduce operating costs during the life cycle of locomotives.
This is a good example of problem solving, and we are now working out similar approaches on all models of traction vehicles.
– What other investment projects are planned in the locomotive complex for 2012?
– In addition to the purchase of new machinery, we expect to upgrade and repair almost 2,000 locomotives. We have RUB 1.5 billion to develop this. According to the investment program for this year, the Repair Locomotives Directorate allocated the budget of RUB 1.9 billion. More than RUB 640 million will be spent on equipping the locomotive repair depot.
– How does the Traction Directorate build its relations with repair companies?
– We work on the “customer - performer” principle with all of them without an exception. Formation of such a management model allows us to build transparent relationships between all members of the operation and locomotives maintenance system, improve reliability and create a healthy competitive environment. I would also like to talk about locomotive service. Today, we are implementing this system on a large scale, and till July 1 4,980 locomotives have been passed to 53 maintenance depots.
While implementing this project we were able to increase the rate of technical availability of locomotives as well as increasing the volume of traffic. We also could create an incentive for producers to increase reliability and improve their technologies.
In addition, the implementation of new approaches in the relationship between service companies, manufacturers and the owner of locomotives is held. It results in attracting investment in the modernisation of the service park and in the technical equipment of repair depots. We have built warehouses for spare parts and materials for TMH-Service totaling RUB 1.7 billion and for STM-Service in the amount of RUB 175 million.
In fact, we have achieved positive results so far only in the electric fleet. Speaking about the diesel locomotives, an accountability moment for service hasn’t come but this is the task for the very near future.
At the same time, I would like to stress that an visible effect will appear only in the medium term of 3-5 years, when there will be some experience and the opportunity to compare the performance of the service in different periods in comparable conditions. I should add that this year a new contract, toughening the requirements upon service companies in terms of quality of locomotives repair and provides for penalties to be introduced.
– What are the targets of the locomotive complex to the end of this year?
– First of all, it is the performance of targets set by the company: the insurance of guaranteed safety, reducing failures and accidents, implementation of measures to reduce unnecessary loss regarding the usage of locomotives and of locomotive crews.
We also need to ensure 100% within the limits provided by the investment program, to prepare locomotives and infrastructure for operation in winter conditions. One of the major challenges for us is to build by the end of this year an effective system of control of the complex. This will be done through the budgets of structures involved in the process of its operation and maintenance, as well as forming a joint evaluation of performance indicators. These are the goals that we set out for ourselves in the short term, but in the coming years the key focus will be certainly on increasing efficiency.
– What does it mean?
– The concept of a single center of responsibility, based on the Traction Directorate and Comprehensive Program of improvement of the efficiency of the locomotive complex, has been developed with the help of consulting companies such as McKinsey, the Institute of Natural Monopolies, Oliver Weimann, and Pokrovka Finance.
They defined our medium term in structuring programs for operational work, complex management, increasing the reliability of technical equipment, insurance of traffic safety and also executing a program of repair of locomotives and renewal of fixed assets. Currently we are implementing a major program of technological and operating reorganisation of enterprises with the regard to ground technology work and formation of production business models, which are derived from best international practices. In this case, we have identified the main activities of the locomotive complex - providing traffic management and repair of traction rolling stock. This, in its turn, allows the transition of operation and maintenance from functional-territorial management principle to management according to types of activities with increased responsibility for the outcome and financial transparency. Introduction of a more reasonable approach to determinate resource requirements is also planned. ®
Interviewed by Elena Ushkova
our reference
Quality Leaps
Top management at the Russian Railways JSC considers the creation of new designs of diesel engines for the railway rolling stock as the most important task for the diesel industry in Russia. Currently, the National Technological Base 2011-2015 federal target program (FTP) is developing a program of Russian diesel engineering improvement.
According to experts, today diesel engine manufacturing is in crisis and a leap in quality is necessary for a number of components. Valentin Gapanovich, Senior Vice President of the Russian Railways, the President of Association of Manufacturers of Railway Equipment (OPZHT) NP, points to significant (up to 75-85%) depreciation of fixed assets, the lack of applied scientific research, the lack of experimental-design works and development of specialised production, the low technical quality of the parts and components of diesel engines and a shortage of qualified personnel as the reasons for the industry’s distress. These factors, according to V. Gapanovich, led to a critical reduction in the competitiveness of diesel engines and components made in Russia.
Mechanical engineers recognised that today the machine building market is characterised by the lack of a full engine power band and a gap in the main technical and economic indicators due to the lack of modern modifications and poorly- equipped production. Many unique enterprises were simply lost and as a result Russian domestic industry has lost some links in its production chains. Thus, today there are a number of components in diesel building, which are not produced in Russia. Accordingly, consumers have to import technology, which is reflected in the cost of the final product, service and repair of equipment, and as a result has a negative impact on the competitiveness of domestic developments.
In addition, Vladimir Shneidmueller, Technical Director of Transmashholding CJSC, says that currently modern electronic devices and components that ensure optimal management of the diesel engine and its impact on the environment are not developed and produced in Russia. He also considers the lack of monitor diagnostic systems over the state of the diesel engine, methodologies and criteria for its evaluation among the challenges.
It is noteworthy that foreign manufacturers of diesel engines (Wärtsilä, GE, Cummins, Caterpillar, MTV, etc.) use in their designs components from the most specialised companies: Mahle (pistons), Glico (indigenous and connecting rod inserts), Goetze (piston rings), DUAP (fuel injection equipment). Cooperation between diesel engine manufacturers and firms that specialise in the production of components: fuel systems, controls, piston rings, filters, turbochargers, etc., - is highly developed abroad. This approach relieves the main producer of the need to purchase expensive equipment. Moreover, maintaining the production of all major components of diesel manufacture at a relativity small scale is economically feasible. Recently, domestic engineering companies, in their turn, also strengthened cooperation with foreign companies - suppliers of components.
In addition, V. Gapanovich emphasises the need to focus on the production of up to 80% of the components directly in Russia and only the remaining part of the production of high-tech industries is permissible to be bought abroad. This view is shared by most of the Russian machine-building enterprises. In fact, they paid tribute to foreign machines and equipment and they unconditionally prefer them instead of domestic counterparts.
Experts believe that creation of a next-generation competitive diesel engine is impossible without high-tech components. Only modern and high-tech fuel injection and turbocharging systems can, to a considerable degree, satisfy market requirements and environmental standards that are critical to diesel engines in terms of efficiency, content of harmful emissions, specific weight, throttle response, high reliability and durability.
By Elena Ushkova
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Alexey Vorotilkin, Vice President of RZD and the Head of the Directorate
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[DETAIL_TEXT] => New Methods Are Needed
– Mr Vorotilkin, how are the key performance indicators at the RZD locomotive complex being executed this year?
– First of all I would like to say that today it is an impressive part of Russian Railways with an extensive network of linear businesses, multiple fleets of locomotives and 200,000 employees in various specialties involved in a single technological and production process.
In the first half of 2012, the volume of work by all types of traffic exceeded the plan by 1.1% (compared to last year the growth was 4.2%), the average weight of a freight train increased by 0.4%. The Directorate of Traction and Locomotives Repair handled planned budget indicators of prime costs and transportation costs. At the same time, despite this apparent success, some issues regarding cooperation with subcontractors are not fully resolved. We performed all the tasks of the Central Directorate of Traffic Control concerning the maintenance of the fleet of locomotives (by the way, in 2011-2012 the fleet increased by 7.8%), but did not reach the specified level on such quality indicators on using traction rolling stock, as the average performance of the locomotive (-3.3% in the last years) and average mileage (-2.9%).
– What are the reasons behind such a backlog of work, in your opinion? And how can it be overcome?
– In today’s challenging operating environment where the private car fleet dominates, our main objective is to provide a smooth performance of planned tasks concerning the maintenance of locomotives and locomotive crews in order to perform the required amount of work. But these are not enough to meet all the quality indicators.
The surplus share of freight cars in the working fleet that are standing idle on RZD’s public stations influence the situation a lot. The analysis revealed that the working fleet of cars on technical stations and on public stations’ cargo areas, operations increased by 62% in July of year compared to the pre-crisis year of 2008. This led to longer processing times for trains at marshalling yards and to increased car demurrage during cargo operations. All of these factors ultimately lead to a significant loss in operational work.
On average more than 2,700 trains every day leave the forming stations while locomotive crews have been working more than two hours. Accordingly, every day more than 200 locomotives and 900 freight locomotive crews are additionally maintained. In just 6 months over 502,000 of such trains were sent. During the same period, we have 3,000 cases of locomotive crews being on work less than 3 hours and 15,000 – more than 12 hours.
Obviously today we cannot solve the problems with the help of the old methods and increase continuously the number of locomotives and locomotive crews, because it increases our costs, and significant costs, as a locomotive crew worker is one of the most highly paid specialists in the company. Each additional member of a crew that is used inefficiently, brings additional expenses for salaries, maintenance and repair, as well as for payment for the fuel and energy resources.
The simple solution to the transport problems should be the introduction of new efficient fleet management technologies regulating the functions of all participants in the transport process, which will be based on the regulatory and technological documents of the rail industry. It is necessary to determine the requirement for loading resources for the entire month, which, in its turn, will ensure quality and accuracy in station complex rationing, as well as in rationing of locomotives and locomotive crews and the scope and sequence of repair of infrastructure. The implementation of these principles in the technology of the transportation process across a large number of train operators working in the same sector, will ensure stable economic demand for the transportation of goods.
Investment Priorities
– How is the problem of an ageing locomotive fleet solved at the moment?
– The lack of a reliable supply of traction vehicles in the 1990-s forces us now to carry out a wide scale program of work on extending the life of locomotives according to their design and coordinated with federal agencies’ technical solutions. This work is organised at the Zheldorremmash plants and locomotive depots. In addition, the investment program of Russian Railways increased in 2012 in order to purchase new locomotives. In general, it is planned to purchase more than 500 modern traction vehicles. Additionally we are developing new approaches to increase reliability and reduce the cost of maintenance and repair of locomotives. As an example, I can tell you about the EP2K locomotive. The producer increased average mileage between repair stops from 600,000 to 800,000 kilometres. And the opportunity of using limiting equipment (wheel set) will soon increase that to 1 million kilometres.
In general, implementation of these measures will significantly reduce operating costs during the life cycle of locomotives.
This is a good example of problem solving, and we are now working out similar approaches on all models of traction vehicles.
– What other investment projects are planned in the locomotive complex for 2012?
– In addition to the purchase of new machinery, we expect to upgrade and repair almost 2,000 locomotives. We have RUB 1.5 billion to develop this. According to the investment program for this year, the Repair Locomotives Directorate allocated the budget of RUB 1.9 billion. More than RUB 640 million will be spent on equipping the locomotive repair depot.
– How does the Traction Directorate build its relations with repair companies?
– We work on the “customer - performer” principle with all of them without an exception. Formation of such a management model allows us to build transparent relationships between all members of the operation and locomotives maintenance system, improve reliability and create a healthy competitive environment. I would also like to talk about locomotive service. Today, we are implementing this system on a large scale, and till July 1 4,980 locomotives have been passed to 53 maintenance depots.
While implementing this project we were able to increase the rate of technical availability of locomotives as well as increasing the volume of traffic. We also could create an incentive for producers to increase reliability and improve their technologies.
In addition, the implementation of new approaches in the relationship between service companies, manufacturers and the owner of locomotives is held. It results in attracting investment in the modernisation of the service park and in the technical equipment of repair depots. We have built warehouses for spare parts and materials for TMH-Service totaling RUB 1.7 billion and for STM-Service in the amount of RUB 175 million.
In fact, we have achieved positive results so far only in the electric fleet. Speaking about the diesel locomotives, an accountability moment for service hasn’t come but this is the task for the very near future.
At the same time, I would like to stress that an visible effect will appear only in the medium term of 3-5 years, when there will be some experience and the opportunity to compare the performance of the service in different periods in comparable conditions. I should add that this year a new contract, toughening the requirements upon service companies in terms of quality of locomotives repair and provides for penalties to be introduced.
– What are the targets of the locomotive complex to the end of this year?
– First of all, it is the performance of targets set by the company: the insurance of guaranteed safety, reducing failures and accidents, implementation of measures to reduce unnecessary loss regarding the usage of locomotives and of locomotive crews.
We also need to ensure 100% within the limits provided by the investment program, to prepare locomotives and infrastructure for operation in winter conditions. One of the major challenges for us is to build by the end of this year an effective system of control of the complex. This will be done through the budgets of structures involved in the process of its operation and maintenance, as well as forming a joint evaluation of performance indicators. These are the goals that we set out for ourselves in the short term, but in the coming years the key focus will be certainly on increasing efficiency.
– What does it mean?
– The concept of a single center of responsibility, based on the Traction Directorate and Comprehensive Program of improvement of the efficiency of the locomotive complex, has been developed with the help of consulting companies such as McKinsey, the Institute of Natural Monopolies, Oliver Weimann, and Pokrovka Finance.
They defined our medium term in structuring programs for operational work, complex management, increasing the reliability of technical equipment, insurance of traffic safety and also executing a program of repair of locomotives and renewal of fixed assets. Currently we are implementing a major program of technological and operating reorganisation of enterprises with the regard to ground technology work and formation of production business models, which are derived from best international practices. In this case, we have identified the main activities of the locomotive complex - providing traffic management and repair of traction rolling stock. This, in its turn, allows the transition of operation and maintenance from functional-territorial management principle to management according to types of activities with increased responsibility for the outcome and financial transparency. Introduction of a more reasonable approach to determinate resource requirements is also planned. ®
Interviewed by Elena Ushkova
our reference
Quality Leaps
Top management at the Russian Railways JSC considers the creation of new designs of diesel engines for the railway rolling stock as the most important task for the diesel industry in Russia. Currently, the National Technological Base 2011-2015 federal target program (FTP) is developing a program of Russian diesel engineering improvement.
According to experts, today diesel engine manufacturing is in crisis and a leap in quality is necessary for a number of components. Valentin Gapanovich, Senior Vice President of the Russian Railways, the President of Association of Manufacturers of Railway Equipment (OPZHT) NP, points to significant (up to 75-85%) depreciation of fixed assets, the lack of applied scientific research, the lack of experimental-design works and development of specialised production, the low technical quality of the parts and components of diesel engines and a shortage of qualified personnel as the reasons for the industry’s distress. These factors, according to V. Gapanovich, led to a critical reduction in the competitiveness of diesel engines and components made in Russia.
Mechanical engineers recognised that today the machine building market is characterised by the lack of a full engine power band and a gap in the main technical and economic indicators due to the lack of modern modifications and poorly- equipped production. Many unique enterprises were simply lost and as a result Russian domestic industry has lost some links in its production chains. Thus, today there are a number of components in diesel building, which are not produced in Russia. Accordingly, consumers have to import technology, which is reflected in the cost of the final product, service and repair of equipment, and as a result has a negative impact on the competitiveness of domestic developments.
In addition, Vladimir Shneidmueller, Technical Director of Transmashholding CJSC, says that currently modern electronic devices and components that ensure optimal management of the diesel engine and its impact on the environment are not developed and produced in Russia. He also considers the lack of monitor diagnostic systems over the state of the diesel engine, methodologies and criteria for its evaluation among the challenges.
It is noteworthy that foreign manufacturers of diesel engines (Wärtsilä, GE, Cummins, Caterpillar, MTV, etc.) use in their designs components from the most specialised companies: Mahle (pistons), Glico (indigenous and connecting rod inserts), Goetze (piston rings), DUAP (fuel injection equipment). Cooperation between diesel engine manufacturers and firms that specialise in the production of components: fuel systems, controls, piston rings, filters, turbochargers, etc., - is highly developed abroad. This approach relieves the main producer of the need to purchase expensive equipment. Moreover, maintaining the production of all major components of diesel manufacture at a relativity small scale is economically feasible. Recently, domestic engineering companies, in their turn, also strengthened cooperation with foreign companies - suppliers of components.
In addition, V. Gapanovich emphasises the need to focus on the production of up to 80% of the components directly in Russia and only the remaining part of the production of high-tech industries is permissible to be bought abroad. This view is shared by most of the Russian machine-building enterprises. In fact, they paid tribute to foreign machines and equipment and they unconditionally prefer them instead of domestic counterparts.
Experts believe that creation of a next-generation competitive diesel engine is impossible without high-tech components. Only modern and high-tech fuel injection and turbocharging systems can, to a considerable degree, satisfy market requirements and environmental standards that are critical to diesel engines in terms of efficiency, content of harmful emissions, specific weight, throttle response, high reliability and durability.
By Elena Ushkova
[~DETAIL_TEXT] => New Methods Are Needed
– Mr Vorotilkin, how are the key performance indicators at the RZD locomotive complex being executed this year?
– First of all I would like to say that today it is an impressive part of Russian Railways with an extensive network of linear businesses, multiple fleets of locomotives and 200,000 employees in various specialties involved in a single technological and production process.
In the first half of 2012, the volume of work by all types of traffic exceeded the plan by 1.1% (compared to last year the growth was 4.2%), the average weight of a freight train increased by 0.4%. The Directorate of Traction and Locomotives Repair handled planned budget indicators of prime costs and transportation costs. At the same time, despite this apparent success, some issues regarding cooperation with subcontractors are not fully resolved. We performed all the tasks of the Central Directorate of Traffic Control concerning the maintenance of the fleet of locomotives (by the way, in 2011-2012 the fleet increased by 7.8%), but did not reach the specified level on such quality indicators on using traction rolling stock, as the average performance of the locomotive (-3.3% in the last years) and average mileage (-2.9%).
– What are the reasons behind such a backlog of work, in your opinion? And how can it be overcome?
– In today’s challenging operating environment where the private car fleet dominates, our main objective is to provide a smooth performance of planned tasks concerning the maintenance of locomotives and locomotive crews in order to perform the required amount of work. But these are not enough to meet all the quality indicators.
The surplus share of freight cars in the working fleet that are standing idle on RZD’s public stations influence the situation a lot. The analysis revealed that the working fleet of cars on technical stations and on public stations’ cargo areas, operations increased by 62% in July of year compared to the pre-crisis year of 2008. This led to longer processing times for trains at marshalling yards and to increased car demurrage during cargo operations. All of these factors ultimately lead to a significant loss in operational work.
On average more than 2,700 trains every day leave the forming stations while locomotive crews have been working more than two hours. Accordingly, every day more than 200 locomotives and 900 freight locomotive crews are additionally maintained. In just 6 months over 502,000 of such trains were sent. During the same period, we have 3,000 cases of locomotive crews being on work less than 3 hours and 15,000 – more than 12 hours.
Obviously today we cannot solve the problems with the help of the old methods and increase continuously the number of locomotives and locomotive crews, because it increases our costs, and significant costs, as a locomotive crew worker is one of the most highly paid specialists in the company. Each additional member of a crew that is used inefficiently, brings additional expenses for salaries, maintenance and repair, as well as for payment for the fuel and energy resources.
The simple solution to the transport problems should be the introduction of new efficient fleet management technologies regulating the functions of all participants in the transport process, which will be based on the regulatory and technological documents of the rail industry. It is necessary to determine the requirement for loading resources for the entire month, which, in its turn, will ensure quality and accuracy in station complex rationing, as well as in rationing of locomotives and locomotive crews and the scope and sequence of repair of infrastructure. The implementation of these principles in the technology of the transportation process across a large number of train operators working in the same sector, will ensure stable economic demand for the transportation of goods.
Investment Priorities
– How is the problem of an ageing locomotive fleet solved at the moment?
– The lack of a reliable supply of traction vehicles in the 1990-s forces us now to carry out a wide scale program of work on extending the life of locomotives according to their design and coordinated with federal agencies’ technical solutions. This work is organised at the Zheldorremmash plants and locomotive depots. In addition, the investment program of Russian Railways increased in 2012 in order to purchase new locomotives. In general, it is planned to purchase more than 500 modern traction vehicles. Additionally we are developing new approaches to increase reliability and reduce the cost of maintenance and repair of locomotives. As an example, I can tell you about the EP2K locomotive. The producer increased average mileage between repair stops from 600,000 to 800,000 kilometres. And the opportunity of using limiting equipment (wheel set) will soon increase that to 1 million kilometres.
In general, implementation of these measures will significantly reduce operating costs during the life cycle of locomotives.
This is a good example of problem solving, and we are now working out similar approaches on all models of traction vehicles.
– What other investment projects are planned in the locomotive complex for 2012?
– In addition to the purchase of new machinery, we expect to upgrade and repair almost 2,000 locomotives. We have RUB 1.5 billion to develop this. According to the investment program for this year, the Repair Locomotives Directorate allocated the budget of RUB 1.9 billion. More than RUB 640 million will be spent on equipping the locomotive repair depot.
– How does the Traction Directorate build its relations with repair companies?
– We work on the “customer - performer” principle with all of them without an exception. Formation of such a management model allows us to build transparent relationships between all members of the operation and locomotives maintenance system, improve reliability and create a healthy competitive environment. I would also like to talk about locomotive service. Today, we are implementing this system on a large scale, and till July 1 4,980 locomotives have been passed to 53 maintenance depots.
While implementing this project we were able to increase the rate of technical availability of locomotives as well as increasing the volume of traffic. We also could create an incentive for producers to increase reliability and improve their technologies.
In addition, the implementation of new approaches in the relationship between service companies, manufacturers and the owner of locomotives is held. It results in attracting investment in the modernisation of the service park and in the technical equipment of repair depots. We have built warehouses for spare parts and materials for TMH-Service totaling RUB 1.7 billion and for STM-Service in the amount of RUB 175 million.
In fact, we have achieved positive results so far only in the electric fleet. Speaking about the diesel locomotives, an accountability moment for service hasn’t come but this is the task for the very near future.
At the same time, I would like to stress that an visible effect will appear only in the medium term of 3-5 years, when there will be some experience and the opportunity to compare the performance of the service in different periods in comparable conditions. I should add that this year a new contract, toughening the requirements upon service companies in terms of quality of locomotives repair and provides for penalties to be introduced.
– What are the targets of the locomotive complex to the end of this year?
– First of all, it is the performance of targets set by the company: the insurance of guaranteed safety, reducing failures and accidents, implementation of measures to reduce unnecessary loss regarding the usage of locomotives and of locomotive crews.
We also need to ensure 100% within the limits provided by the investment program, to prepare locomotives and infrastructure for operation in winter conditions. One of the major challenges for us is to build by the end of this year an effective system of control of the complex. This will be done through the budgets of structures involved in the process of its operation and maintenance, as well as forming a joint evaluation of performance indicators. These are the goals that we set out for ourselves in the short term, but in the coming years the key focus will be certainly on increasing efficiency.
– What does it mean?
– The concept of a single center of responsibility, based on the Traction Directorate and Comprehensive Program of improvement of the efficiency of the locomotive complex, has been developed with the help of consulting companies such as McKinsey, the Institute of Natural Monopolies, Oliver Weimann, and Pokrovka Finance.
They defined our medium term in structuring programs for operational work, complex management, increasing the reliability of technical equipment, insurance of traffic safety and also executing a program of repair of locomotives and renewal of fixed assets. Currently we are implementing a major program of technological and operating reorganisation of enterprises with the regard to ground technology work and formation of production business models, which are derived from best international practices. In this case, we have identified the main activities of the locomotive complex - providing traffic management and repair of traction rolling stock. This, in its turn, allows the transition of operation and maintenance from functional-territorial management principle to management according to types of activities with increased responsibility for the outcome and financial transparency. Introduction of a more reasonable approach to determinate resource requirements is also planned. ®
Interviewed by Elena Ushkova
our reference
Quality Leaps
Top management at the Russian Railways JSC considers the creation of new designs of diesel engines for the railway rolling stock as the most important task for the diesel industry in Russia. Currently, the National Technological Base 2011-2015 federal target program (FTP) is developing a program of Russian diesel engineering improvement.
According to experts, today diesel engine manufacturing is in crisis and a leap in quality is necessary for a number of components. Valentin Gapanovich, Senior Vice President of the Russian Railways, the President of Association of Manufacturers of Railway Equipment (OPZHT) NP, points to significant (up to 75-85%) depreciation of fixed assets, the lack of applied scientific research, the lack of experimental-design works and development of specialised production, the low technical quality of the parts and components of diesel engines and a shortage of qualified personnel as the reasons for the industry’s distress. These factors, according to V. Gapanovich, led to a critical reduction in the competitiveness of diesel engines and components made in Russia.
Mechanical engineers recognised that today the machine building market is characterised by the lack of a full engine power band and a gap in the main technical and economic indicators due to the lack of modern modifications and poorly- equipped production. Many unique enterprises were simply lost and as a result Russian domestic industry has lost some links in its production chains. Thus, today there are a number of components in diesel building, which are not produced in Russia. Accordingly, consumers have to import technology, which is reflected in the cost of the final product, service and repair of equipment, and as a result has a negative impact on the competitiveness of domestic developments.
In addition, Vladimir Shneidmueller, Technical Director of Transmashholding CJSC, says that currently modern electronic devices and components that ensure optimal management of the diesel engine and its impact on the environment are not developed and produced in Russia. He also considers the lack of monitor diagnostic systems over the state of the diesel engine, methodologies and criteria for its evaluation among the challenges.
It is noteworthy that foreign manufacturers of diesel engines (Wärtsilä, GE, Cummins, Caterpillar, MTV, etc.) use in their designs components from the most specialised companies: Mahle (pistons), Glico (indigenous and connecting rod inserts), Goetze (piston rings), DUAP (fuel injection equipment). Cooperation between diesel engine manufacturers and firms that specialise in the production of components: fuel systems, controls, piston rings, filters, turbochargers, etc., - is highly developed abroad. This approach relieves the main producer of the need to purchase expensive equipment. Moreover, maintaining the production of all major components of diesel manufacture at a relativity small scale is economically feasible. Recently, domestic engineering companies, in their turn, also strengthened cooperation with foreign companies - suppliers of components.
In addition, V. Gapanovich emphasises the need to focus on the production of up to 80% of the components directly in Russia and only the remaining part of the production of high-tech industries is permissible to be bought abroad. This view is shared by most of the Russian machine-building enterprises. In fact, they paid tribute to foreign machines and equipment and they unconditionally prefer them instead of domestic counterparts.
Experts believe that creation of a next-generation competitive diesel engine is impossible without high-tech components. Only modern and high-tech fuel injection and turbocharging systems can, to a considerable degree, satisfy market requirements and environmental standards that are critical to diesel engines in terms of efficiency, content of harmful emissions, specific weight, throttle response, high reliability and durability.
By Elena Ushkova
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Alexey Vorotilkin, Vice President of RZD and the Head of the Directorate
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Alexey Vorotilkin, Vice President of RZD and the Head of the Directorate
of Traction, talks about activities that are conducted in order to improve the locomotive sector’s performance and the challenges it is now facing.
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[DETAIL_TEXT] => RZD Purchases GEFCO
PSA Peugeot Citroën has sold a 75% stake in GEFCO to Russian Railways for €800 million after the payment by GEFCO to PSA Peugeot Citroën of €100 million in a special dividend.
The contract was concluded on November 5, 2012. It was signed by Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën, and Vladimir Yakunin, President of Russian Railways JSC. The completion of the transaction is now exclusively subject to relevant antitrust approvals. Anti-monopoly bodies in Germany and Slovakia have given their permissions for the deal. The transaction should be completed before the end of the year.
By taking over the French logistics group GEFCO, Russian Railways is expected to increase its capitalisation ahead of a possible privatisation, Russian Transport Minister Maxim Sokolov said.
The Minister pointed out that the acquisition of a controlling stake in GEFCO will make RZD a logistics provider, and not just an operator of the railroad infrastructure. Mr Sokolov went on to say that the company does not intend to reduce its investment in infrastructure upgrades, since it will tap the loan market to finance the deal.
Sistema to Take Over Argos Group
AFK Sistema has signed a non-binding agreement to acquire a 100% stake in Argos Group Holding B.V.
Argos Group is the biggest independent group in Western Europe, specialising in storage, distribution, and foreign trade of petroleum products and biofuels.
The proposed transaction is subject to completion of due diligence and the execution of legally binding transaction documents, corporate approval by Sistema, and clearance from the European Commission as well as possible clearance from anti-trust authorities in other countries where Sistema operates, the Russian company said.
NTK Rents Its Railcars to Freight One
The wagon fleet of Independent Transportation Company LLC (NTK, Nezavisimaya Transportnaya Kompaniya) has been rented to Freight One OJSC. Thus, the fleet of Freight One amounts now to 193,787 wagons.
“The fleet of NTK has been placed under the control of Freight One,” a representative of Freight One said. All in all, Freight One got 26,470 gondola cars, 1,110 railcars for pellets, 25 wagons for cement transportation and 18 tank wagons.
According to the company’s earlier reports, Freight One and the Independent Transportation Company have been integrated to minimise empty mileage and increase the transportation volume at the double operations, efficiency savings due to the opportunity to repair and maintain rolling stock themselves, and the further development of personalised services, which take into account the needs of the company’s key clients.
The Independent Transportation Company incorporated in UCL Holding Company bought 75% minus two shares in Freight One OJSC from Russian Railways JSC for RUB 125.5 billion. In the middle of October 2012, NTK, which offered RUB 50 billion for the remaining 25% stake in Freight One, won the competition.
Global Ports Investments PLC Buys Remaining 25% Stake in Vostochnaya Stevedoring Company
Global Ports Investments PLC entered into a sale and purchase agreement with DP World Limited to increase the Group’s stake in Vostochnaya Stevedoring Company LLC (VSC) from 75% to 100%. The transaction values the 25% stake in VSC being acquired at $230 million.
VSC, based in the port of Vostochny, is the largest container terminal in the Far East of Russia and one of the key gateways for Russian container transport. The terminal can expand its capacity fourfold on its current site and in the first half of 2012 it recorded a year-on-year increase in container throughput of 18%. Funding for the transaction will be provided in the form of an unsecured loan by Transportation Investments Holdings Limited (TIHL), the Group’s largest shareholder. The loan will carry an interest rate of 3-month USD LIBOR +2.0%.
Samsung C&T Corporation and KTZ Reach Agreement on Cargo Transit via Kazakhstan
Kazakhstan Temir Zholy (KTZ) and Samsung C&T Corporation (the Republic of Korea) have agreed to carry out joint projects in cargo transportation via Kazakhstan and to participate in the logistic projects in the “Khorgos” special economic zone.
A memorandum about it was signed by the companies at a round-table discussion entitled “Kazakhstan – New Silk Road – the Bridge between Europe and Asia” in Almaty on September 20, 2012.
The document is targeted at organising and developing cooperation in the transport and logistics sector of Kazakhstan with the participation of international logistics companies.
The Memorandum covers the conditions necessary for transit transportation of Samsung C&T Corporation’s products via Kazakhstan. The issue of Samsung’s possible investment activity in the area of the dry port in the special economic zone “Khorgos – Eastern Gates” and the international centre of boundary cooperation “Khorgos” will be analysed.
[~DETAIL_TEXT] => RZD Purchases GEFCO
PSA Peugeot Citroën has sold a 75% stake in GEFCO to Russian Railways for €800 million after the payment by GEFCO to PSA Peugeot Citroën of €100 million in a special dividend.
The contract was concluded on November 5, 2012. It was signed by Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën, and Vladimir Yakunin, President of Russian Railways JSC. The completion of the transaction is now exclusively subject to relevant antitrust approvals. Anti-monopoly bodies in Germany and Slovakia have given their permissions for the deal. The transaction should be completed before the end of the year.
By taking over the French logistics group GEFCO, Russian Railways is expected to increase its capitalisation ahead of a possible privatisation, Russian Transport Minister Maxim Sokolov said.
The Minister pointed out that the acquisition of a controlling stake in GEFCO will make RZD a logistics provider, and not just an operator of the railroad infrastructure. Mr Sokolov went on to say that the company does not intend to reduce its investment in infrastructure upgrades, since it will tap the loan market to finance the deal.
Sistema to Take Over Argos Group
AFK Sistema has signed a non-binding agreement to acquire a 100% stake in Argos Group Holding B.V.
Argos Group is the biggest independent group in Western Europe, specialising in storage, distribution, and foreign trade of petroleum products and biofuels.
The proposed transaction is subject to completion of due diligence and the execution of legally binding transaction documents, corporate approval by Sistema, and clearance from the European Commission as well as possible clearance from anti-trust authorities in other countries where Sistema operates, the Russian company said.
NTK Rents Its Railcars to Freight One
The wagon fleet of Independent Transportation Company LLC (NTK, Nezavisimaya Transportnaya Kompaniya) has been rented to Freight One OJSC. Thus, the fleet of Freight One amounts now to 193,787 wagons.
“The fleet of NTK has been placed under the control of Freight One,” a representative of Freight One said. All in all, Freight One got 26,470 gondola cars, 1,110 railcars for pellets, 25 wagons for cement transportation and 18 tank wagons.
According to the company’s earlier reports, Freight One and the Independent Transportation Company have been integrated to minimise empty mileage and increase the transportation volume at the double operations, efficiency savings due to the opportunity to repair and maintain rolling stock themselves, and the further development of personalised services, which take into account the needs of the company’s key clients.
The Independent Transportation Company incorporated in UCL Holding Company bought 75% minus two shares in Freight One OJSC from Russian Railways JSC for RUB 125.5 billion. In the middle of October 2012, NTK, which offered RUB 50 billion for the remaining 25% stake in Freight One, won the competition.
Global Ports Investments PLC Buys Remaining 25% Stake in Vostochnaya Stevedoring Company
Global Ports Investments PLC entered into a sale and purchase agreement with DP World Limited to increase the Group’s stake in Vostochnaya Stevedoring Company LLC (VSC) from 75% to 100%. The transaction values the 25% stake in VSC being acquired at $230 million.
VSC, based in the port of Vostochny, is the largest container terminal in the Far East of Russia and one of the key gateways for Russian container transport. The terminal can expand its capacity fourfold on its current site and in the first half of 2012 it recorded a year-on-year increase in container throughput of 18%. Funding for the transaction will be provided in the form of an unsecured loan by Transportation Investments Holdings Limited (TIHL), the Group’s largest shareholder. The loan will carry an interest rate of 3-month USD LIBOR +2.0%.
Samsung C&T Corporation and KTZ Reach Agreement on Cargo Transit via Kazakhstan
Kazakhstan Temir Zholy (KTZ) and Samsung C&T Corporation (the Republic of Korea) have agreed to carry out joint projects in cargo transportation via Kazakhstan and to participate in the logistic projects in the “Khorgos” special economic zone.
A memorandum about it was signed by the companies at a round-table discussion entitled “Kazakhstan – New Silk Road – the Bridge between Europe and Asia” in Almaty on September 20, 2012.
The document is targeted at organising and developing cooperation in the transport and logistics sector of Kazakhstan with the participation of international logistics companies.
The Memorandum covers the conditions necessary for transit transportation of Samsung C&T Corporation’s products via Kazakhstan. The issue of Samsung’s possible investment activity in the area of the dry port in the special economic zone “Khorgos – Eastern Gates” and the international centre of boundary cooperation “Khorgos” will be analysed.
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[PREVIEW_TEXT] => PSA Peugeot Citroën has sold a 75% stake in GEFCO to Russian Railways for ?800 million after the payment by GEFCO to PSA Peugeot Citroën of ?100 million in a special dividend.
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[DETAIL_TEXT] => RZD Purchases GEFCO
PSA Peugeot Citroën has sold a 75% stake in GEFCO to Russian Railways for €800 million after the payment by GEFCO to PSA Peugeot Citroën of €100 million in a special dividend.
The contract was concluded on November 5, 2012. It was signed by Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën, and Vladimir Yakunin, President of Russian Railways JSC. The completion of the transaction is now exclusively subject to relevant antitrust approvals. Anti-monopoly bodies in Germany and Slovakia have given their permissions for the deal. The transaction should be completed before the end of the year.
By taking over the French logistics group GEFCO, Russian Railways is expected to increase its capitalisation ahead of a possible privatisation, Russian Transport Minister Maxim Sokolov said.
The Minister pointed out that the acquisition of a controlling stake in GEFCO will make RZD a logistics provider, and not just an operator of the railroad infrastructure. Mr Sokolov went on to say that the company does not intend to reduce its investment in infrastructure upgrades, since it will tap the loan market to finance the deal.
Sistema to Take Over Argos Group
AFK Sistema has signed a non-binding agreement to acquire a 100% stake in Argos Group Holding B.V.
Argos Group is the biggest independent group in Western Europe, specialising in storage, distribution, and foreign trade of petroleum products and biofuels.
The proposed transaction is subject to completion of due diligence and the execution of legally binding transaction documents, corporate approval by Sistema, and clearance from the European Commission as well as possible clearance from anti-trust authorities in other countries where Sistema operates, the Russian company said.
NTK Rents Its Railcars to Freight One
The wagon fleet of Independent Transportation Company LLC (NTK, Nezavisimaya Transportnaya Kompaniya) has been rented to Freight One OJSC. Thus, the fleet of Freight One amounts now to 193,787 wagons.
“The fleet of NTK has been placed under the control of Freight One,” a representative of Freight One said. All in all, Freight One got 26,470 gondola cars, 1,110 railcars for pellets, 25 wagons for cement transportation and 18 tank wagons.
According to the company’s earlier reports, Freight One and the Independent Transportation Company have been integrated to minimise empty mileage and increase the transportation volume at the double operations, efficiency savings due to the opportunity to repair and maintain rolling stock themselves, and the further development of personalised services, which take into account the needs of the company’s key clients.
The Independent Transportation Company incorporated in UCL Holding Company bought 75% minus two shares in Freight One OJSC from Russian Railways JSC for RUB 125.5 billion. In the middle of October 2012, NTK, which offered RUB 50 billion for the remaining 25% stake in Freight One, won the competition.
Global Ports Investments PLC Buys Remaining 25% Stake in Vostochnaya Stevedoring Company
Global Ports Investments PLC entered into a sale and purchase agreement with DP World Limited to increase the Group’s stake in Vostochnaya Stevedoring Company LLC (VSC) from 75% to 100%. The transaction values the 25% stake in VSC being acquired at $230 million.
VSC, based in the port of Vostochny, is the largest container terminal in the Far East of Russia and one of the key gateways for Russian container transport. The terminal can expand its capacity fourfold on its current site and in the first half of 2012 it recorded a year-on-year increase in container throughput of 18%. Funding for the transaction will be provided in the form of an unsecured loan by Transportation Investments Holdings Limited (TIHL), the Group’s largest shareholder. The loan will carry an interest rate of 3-month USD LIBOR +2.0%.
Samsung C&T Corporation and KTZ Reach Agreement on Cargo Transit via Kazakhstan
Kazakhstan Temir Zholy (KTZ) and Samsung C&T Corporation (the Republic of Korea) have agreed to carry out joint projects in cargo transportation via Kazakhstan and to participate in the logistic projects in the “Khorgos” special economic zone.
A memorandum about it was signed by the companies at a round-table discussion entitled “Kazakhstan – New Silk Road – the Bridge between Europe and Asia” in Almaty on September 20, 2012.
The document is targeted at organising and developing cooperation in the transport and logistics sector of Kazakhstan with the participation of international logistics companies.
The Memorandum covers the conditions necessary for transit transportation of Samsung C&T Corporation’s products via Kazakhstan. The issue of Samsung’s possible investment activity in the area of the dry port in the special economic zone “Khorgos – Eastern Gates” and the international centre of boundary cooperation “Khorgos” will be analysed.
[~DETAIL_TEXT] => RZD Purchases GEFCO
PSA Peugeot Citroën has sold a 75% stake in GEFCO to Russian Railways for €800 million after the payment by GEFCO to PSA Peugeot Citroën of €100 million in a special dividend.
The contract was concluded on November 5, 2012. It was signed by Philippe Varin, Chairman of the Managing Board of PSA Peugeot Citroën, and Vladimir Yakunin, President of Russian Railways JSC. The completion of the transaction is now exclusively subject to relevant antitrust approvals. Anti-monopoly bodies in Germany and Slovakia have given their permissions for the deal. The transaction should be completed before the end of the year.
By taking over the French logistics group GEFCO, Russian Railways is expected to increase its capitalisation ahead of a possible privatisation, Russian Transport Minister Maxim Sokolov said.
The Minister pointed out that the acquisition of a controlling stake in GEFCO will make RZD a logistics provider, and not just an operator of the railroad infrastructure. Mr Sokolov went on to say that the company does not intend to reduce its investment in infrastructure upgrades, since it will tap the loan market to finance the deal.
Sistema to Take Over Argos Group
AFK Sistema has signed a non-binding agreement to acquire a 100% stake in Argos Group Holding B.V.
Argos Group is the biggest independent group in Western Europe, specialising in storage, distribution, and foreign trade of petroleum products and biofuels.
The proposed transaction is subject to completion of due diligence and the execution of legally binding transaction documents, corporate approval by Sistema, and clearance from the European Commission as well as possible clearance from anti-trust authorities in other countries where Sistema operates, the Russian company said.
NTK Rents Its Railcars to Freight One
The wagon fleet of Independent Transportation Company LLC (NTK, Nezavisimaya Transportnaya Kompaniya) has been rented to Freight One OJSC. Thus, the fleet of Freight One amounts now to 193,787 wagons.
“The fleet of NTK has been placed under the control of Freight One,” a representative of Freight One said. All in all, Freight One got 26,470 gondola cars, 1,110 railcars for pellets, 25 wagons for cement transportation and 18 tank wagons.
According to the company’s earlier reports, Freight One and the Independent Transportation Company have been integrated to minimise empty mileage and increase the transportation volume at the double operations, efficiency savings due to the opportunity to repair and maintain rolling stock themselves, and the further development of personalised services, which take into account the needs of the company’s key clients.
The Independent Transportation Company incorporated in UCL Holding Company bought 75% minus two shares in Freight One OJSC from Russian Railways JSC for RUB 125.5 billion. In the middle of October 2012, NTK, which offered RUB 50 billion for the remaining 25% stake in Freight One, won the competition.
Global Ports Investments PLC Buys Remaining 25% Stake in Vostochnaya Stevedoring Company
Global Ports Investments PLC entered into a sale and purchase agreement with DP World Limited to increase the Group’s stake in Vostochnaya Stevedoring Company LLC (VSC) from 75% to 100%. The transaction values the 25% stake in VSC being acquired at $230 million.
VSC, based in the port of Vostochny, is the largest container terminal in the Far East of Russia and one of the key gateways for Russian container transport. The terminal can expand its capacity fourfold on its current site and in the first half of 2012 it recorded a year-on-year increase in container throughput of 18%. Funding for the transaction will be provided in the form of an unsecured loan by Transportation Investments Holdings Limited (TIHL), the Group’s largest shareholder. The loan will carry an interest rate of 3-month USD LIBOR +2.0%.
Samsung C&T Corporation and KTZ Reach Agreement on Cargo Transit via Kazakhstan
Kazakhstan Temir Zholy (KTZ) and Samsung C&T Corporation (the Republic of Korea) have agreed to carry out joint projects in cargo transportation via Kazakhstan and to participate in the logistic projects in the “Khorgos” special economic zone.
A memorandum about it was signed by the companies at a round-table discussion entitled “Kazakhstan – New Silk Road – the Bridge between Europe and Asia” in Almaty on September 20, 2012.
The document is targeted at organising and developing cooperation in the transport and logistics sector of Kazakhstan with the participation of international logistics companies.
The Memorandum covers the conditions necessary for transit transportation of Samsung C&T Corporation’s products via Kazakhstan. The issue of Samsung’s possible investment activity in the area of the dry port in the special economic zone “Khorgos – Eastern Gates” and the international centre of boundary cooperation “Khorgos” will be analysed.
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[PREVIEW_TEXT] => PSA Peugeot Citroën has sold a 75% stake in GEFCO to Russian Railways for ?800 million after the payment by GEFCO to PSA Peugeot Citroën of ?100 million in a special dividend.
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The summer results show that the Federal Passenger Company (FPC) succeeded in reversing the trend of decline in passenger turnover. In the foreseeable future, however, railways will face tougher competition from air and road transporters. The Development Strategy of the FPC till 2030 is to prevent Array
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[DETAIL_TEXT] => Summer Peak
The amount of passenger transportation in the FPC’s train fleet in summer traditionally makes 34% of the annual volume. The peak usually takes place in July – August. In these months the demand for passenger railway transportation almost doubles in comparison with the average. In June-August 2012, long-distance FPC trains transported 39.1 million people, a 1.5% increase on the same period of the previous year. The passenger turnover rose by 2.7% to 44.1 billion passenger-kilometres. The largest number of departing passengers (458,100) was registered on August 17.
102 additional trains for 411 journeys were included into the timetable last summer. For the sake of comparison, 98 trains for 344 journeys were put into operation in the same period in 2011. Despite forecasts made by skeptics, who reminded us about the decline in transportation in 2011 because of bad weather, more than 3.4 million passengers were carried to the Black Sea resorts of the Northern Caucasus, a 3% increase on the 2011 summer’s result. The largest growth was registered on the routes to Anapa (+11%), and Adler and Sochi (+4%).
The summer time was hot for the Crimean routes too. Numerous middlemen used the opportunity to buy tickets without passports. As a result, a deficit of tickets, especially to the third-class coaches, emerged. Specialists at FPC managed to cope with the problem. They monitored the process of ticket selling, and if necessary, the company either extended the number of railcars in the trains, or added extra trains on the route.
As a result, 21 trains for 184 journeys were added to routes to the Crimea, which is by 88 journeys more than in 2011. The number of journeys from Moscow to Simferopol, Sevastopol, Feodosiya, and Evpatoria grew by 32 on the previous summer. And the number of passengers transported to the Crimea rose by 4.5%
Mikhail Akulov, Vice President of RZD, CEO of the FPC noted that the company plans to keep to these achieved growth rates. And this year’s situation is favourable for that. In the 2012-2013 timetable, there are 596 pairs of passenger trains formed by the FPC. Of that, 489 train pairs will service domestic lines (this number includes 15 pairs of mail and baggage trains and 10 pairs of isothermal trains), and 93 will travel to the CIS and the Baltic states, and 14 – to other countries.
Competition Will Become Tougher
According to the outlook for transport services development, the competition between railways and road- and air transporters in the passenger transportation sector will become tougher. And railways may lose a significant share in this market. This is a characteristic trend not only for Russia. If people’s wealth increases in any country, the share of air transporters in the passenger transport market increases there, and the journey time becomes a more important criterion for customers. Five years ago about one third of polled Russian passengers said that the journey time is the determining factor, and today it is the most important factor for a half of passengers in Russia.
Yury Saakyan, CEO of the Institute of Natural Monopolies says that the control over the FPC by regulating bodies is excessive, taking into account its unique position in the railway passenger transportation market.
For example, the situation is as follows: discounts on flights are put into operation on some routes. The FPC, however, cannot change either the schedule or the number of railcars in a train. Meanwhile, it is obvious that passenger numbers on the railways will fall on this route, if flying is cheaper.
The basic standards of long-distance passenger railway traffic are approved by state bodies once a year, and making corrections in them is a very complicated and time consuming process. Thus, a flexible reaction to changes in other transport modes’ work is not possible. Consequently, railway transportation becomes less efficient and expenditure rises. The performance of long-distance bus transporters remains nontransparent and uncontrolled. There is price dumping because most companies in this sector operate illegally or with safety violations. Another advantage of bus transportation is the lack of the infrastructure fee (i.e. for using the road), since motorways are maintained at the state’s expense. Meanwhile, every passenger who chooses railways has to pay the infrastructure fee.
The great variety of available ticket prices caused by the globalisation of the market within the framework of the Customs Union and the Common Economic Space of Russia, Belarus, and Kazakhstan, and Russia’s joining the WTO, will contribute to the development of greater competition. Due to the unbalanced Russian economy, the RF federal budget is still vulnerable to a possible plunge in the prices of oil and raw materials in the world market, and to global trade and financial turmoil. In this situation, one can hardly expect a boom in the passenger transportation market. Having taken all this into account, the FPC carried out a large scale programme of cost cutting in 2010-2011. According to Vadim Mishanin, Deputy CEO of the FPC, it helped save RUB 11 billion, and RUB 5.6 billion will be saved this year. Due to optimisation of its operations, even with tariffs regulated by the state bodies, the FPC managed to achieve a 1% decrease in the cost price of products in 2011, while there was an 8.6% growth in consumer prices in this period.
More Losses and Debts
However obvious the advantages of such measures are, the receipts are still not enough to renew the rolling stock, for example. The topicality of this problem is proved by statistics: the condition of 18% of third-class coaches, and 5% of the second-, the first- , and the VIP-class coaches has deteriorated by 90%. Vyacheslav Petrenko, Director of the Department of the State Policy in the Railway Sector, the RF Transport Ministry, notes that the fleet of third-class coaches will be considered as a priority because of the enormous demand for transportation in railcars of this type.
These plans, however, may suffer the fate of “good intentions”. The state has partly compensated for all the revenues lost by the company because of tariff regulation, and it does not participate in defining the core standards of transportation. In 2011-2012, the FPC will lose more than RUB 13 billion (the shortage of budget funding amounted to RUB 7.2 billion in 2011, and it is supposed to be RUB 6 billion in 2012). If the amount of subsidy is not enough, the Federal Passenger Company will have to refuse to buy unprofitable third-class wagons and reduce transportation in the state-regulated sector to match the sum it receives. As a reminder, the Ministry of Finance offered to reduce railway passenger transportation subsidies to RUB 40 billion in 2013, and to RUB 22 billion in 2015. According to specialists at the FPC, the company needs a subsidy of at least RUB 36 billion for the long-distance passenger transportation business every year. In the words of Mr Mishanin, if the funding level is smaller than required, the company will have to cancel loss-making trains (235 trains with the third-class coaches), to reduce the number of personnel by 15,000 people, to halve the number of third-class coaches in other trains, and to stop purchasing new railcars.
Currently, the amount of subsidies from the federal budget is linked to the passenger transportation forecast. The FPC spends this during the course of year. If the real transportation volume exceeds the plan, there will be a gap making it impossible to pay salaries to employees and to pay contractors. First of all, the debt for the services provided by Russian Railways, the parent company of the FPC, will grow. As a result, the FPC’s losses will grow as well as its debt to RZD.
Opportunities and scenarios
Obviously, the further development of passenger transportation in Russia will depend on the economic policy of the state. The long-term prospects of the FPC, defined in the new Strategy of the Company’s Development till 2030, are interconnected with the scenarios of the long-term outlook for RF social and economic developments in this period.
The first scenario in the Strategy ‒ “active development” – envisages sufficient state funding for rolling stock purchase and update, and implementation of the state contract on loss-making routes. This will help restrain the tariff increase in the state-regulated sector (in 2012-2030, the tariff index exceeded the annual inflation by 1.7%, therefore smaller than the forecasted personal income growth). Consequently, there will be a rise in passenger transportation in state-regulated and non-regulated sectors. The second scenario – “evolution” – can be carried out if state funding is moderate, and investment in rolling stock in the regulated sector is not enough to fulfill the demand and keep the current mechanism of compensation for lost revenue. According to FPC, tariffs in the state-regulated sector will exceed inflation by 3.2% per annum in 2012-2030, which is less than the increase in the population’s real income. Passenger turnover will grow only in the non-regulated sector. The third scenario – “forced reduction” envisages minimum state funding, at which the investment in rolling stock is insufficient to fulfill the demand in both – regulated and non-regulated sectors. The planned average tariff increase will exceed inflation by 3.8% per annum in 2012-2030 (below the forecasted personal income growth), which will cause a significant decline in passenger turnover.
“A specific feature of the FPC’s strategy is the developers’ attempt to solve one of the main problems faced by the company – the unprofitability of the regulated sector and the deficit in funding,” says Prof. Yury Scherbanin, Institute of Economic Forecasting, Russian Academy of Sciences.
Since the FPC has the function of socially important transportation in third-class coaches and carriages on regulated tariffs, the efficient development of long-distance transportation, especially in its regulated sector, will depend on the active and coordinated actions of the government and RZD. For that, decisions about the implementation of state contracts, about fulfillment of obligations to compensate for the lost revenue, and allocation of sufficient funding to replace outdated third-class coaches with new ones are required. The RZD holding company should carry out already adopted decisions about the infrastructure development and traffic speed increase. In the words of Mr Scherbanin, the FPC has two objectives: the further optimisation of expenditure on passenger transportation and modernisation and renewal of its material and technical resources. The FPC will hardly be able to carry out the optimisation without the help of the government, because its investment and tariff policies will directly depend on the state subsidies for the lost revenue in the regulated sector.
By Oksana Perepelitsa
[~DETAIL_TEXT] => Summer Peak
The amount of passenger transportation in the FPC’s train fleet in summer traditionally makes 34% of the annual volume. The peak usually takes place in July – August. In these months the demand for passenger railway transportation almost doubles in comparison with the average. In June-August 2012, long-distance FPC trains transported 39.1 million people, a 1.5% increase on the same period of the previous year. The passenger turnover rose by 2.7% to 44.1 billion passenger-kilometres. The largest number of departing passengers (458,100) was registered on August 17.
102 additional trains for 411 journeys were included into the timetable last summer. For the sake of comparison, 98 trains for 344 journeys were put into operation in the same period in 2011. Despite forecasts made by skeptics, who reminded us about the decline in transportation in 2011 because of bad weather, more than 3.4 million passengers were carried to the Black Sea resorts of the Northern Caucasus, a 3% increase on the 2011 summer’s result. The largest growth was registered on the routes to Anapa (+11%), and Adler and Sochi (+4%).
The summer time was hot for the Crimean routes too. Numerous middlemen used the opportunity to buy tickets without passports. As a result, a deficit of tickets, especially to the third-class coaches, emerged. Specialists at FPC managed to cope with the problem. They monitored the process of ticket selling, and if necessary, the company either extended the number of railcars in the trains, or added extra trains on the route.
As a result, 21 trains for 184 journeys were added to routes to the Crimea, which is by 88 journeys more than in 2011. The number of journeys from Moscow to Simferopol, Sevastopol, Feodosiya, and Evpatoria grew by 32 on the previous summer. And the number of passengers transported to the Crimea rose by 4.5%
Mikhail Akulov, Vice President of RZD, CEO of the FPC noted that the company plans to keep to these achieved growth rates. And this year’s situation is favourable for that. In the 2012-2013 timetable, there are 596 pairs of passenger trains formed by the FPC. Of that, 489 train pairs will service domestic lines (this number includes 15 pairs of mail and baggage trains and 10 pairs of isothermal trains), and 93 will travel to the CIS and the Baltic states, and 14 – to other countries.
Competition Will Become Tougher
According to the outlook for transport services development, the competition between railways and road- and air transporters in the passenger transportation sector will become tougher. And railways may lose a significant share in this market. This is a characteristic trend not only for Russia. If people’s wealth increases in any country, the share of air transporters in the passenger transport market increases there, and the journey time becomes a more important criterion for customers. Five years ago about one third of polled Russian passengers said that the journey time is the determining factor, and today it is the most important factor for a half of passengers in Russia.
Yury Saakyan, CEO of the Institute of Natural Monopolies says that the control over the FPC by regulating bodies is excessive, taking into account its unique position in the railway passenger transportation market.
For example, the situation is as follows: discounts on flights are put into operation on some routes. The FPC, however, cannot change either the schedule or the number of railcars in a train. Meanwhile, it is obvious that passenger numbers on the railways will fall on this route, if flying is cheaper.
The basic standards of long-distance passenger railway traffic are approved by state bodies once a year, and making corrections in them is a very complicated and time consuming process. Thus, a flexible reaction to changes in other transport modes’ work is not possible. Consequently, railway transportation becomes less efficient and expenditure rises. The performance of long-distance bus transporters remains nontransparent and uncontrolled. There is price dumping because most companies in this sector operate illegally or with safety violations. Another advantage of bus transportation is the lack of the infrastructure fee (i.e. for using the road), since motorways are maintained at the state’s expense. Meanwhile, every passenger who chooses railways has to pay the infrastructure fee.
The great variety of available ticket prices caused by the globalisation of the market within the framework of the Customs Union and the Common Economic Space of Russia, Belarus, and Kazakhstan, and Russia’s joining the WTO, will contribute to the development of greater competition. Due to the unbalanced Russian economy, the RF federal budget is still vulnerable to a possible plunge in the prices of oil and raw materials in the world market, and to global trade and financial turmoil. In this situation, one can hardly expect a boom in the passenger transportation market. Having taken all this into account, the FPC carried out a large scale programme of cost cutting in 2010-2011. According to Vadim Mishanin, Deputy CEO of the FPC, it helped save RUB 11 billion, and RUB 5.6 billion will be saved this year. Due to optimisation of its operations, even with tariffs regulated by the state bodies, the FPC managed to achieve a 1% decrease in the cost price of products in 2011, while there was an 8.6% growth in consumer prices in this period.
More Losses and Debts
However obvious the advantages of such measures are, the receipts are still not enough to renew the rolling stock, for example. The topicality of this problem is proved by statistics: the condition of 18% of third-class coaches, and 5% of the second-, the first- , and the VIP-class coaches has deteriorated by 90%. Vyacheslav Petrenko, Director of the Department of the State Policy in the Railway Sector, the RF Transport Ministry, notes that the fleet of third-class coaches will be considered as a priority because of the enormous demand for transportation in railcars of this type.
These plans, however, may suffer the fate of “good intentions”. The state has partly compensated for all the revenues lost by the company because of tariff regulation, and it does not participate in defining the core standards of transportation. In 2011-2012, the FPC will lose more than RUB 13 billion (the shortage of budget funding amounted to RUB 7.2 billion in 2011, and it is supposed to be RUB 6 billion in 2012). If the amount of subsidy is not enough, the Federal Passenger Company will have to refuse to buy unprofitable third-class wagons and reduce transportation in the state-regulated sector to match the sum it receives. As a reminder, the Ministry of Finance offered to reduce railway passenger transportation subsidies to RUB 40 billion in 2013, and to RUB 22 billion in 2015. According to specialists at the FPC, the company needs a subsidy of at least RUB 36 billion for the long-distance passenger transportation business every year. In the words of Mr Mishanin, if the funding level is smaller than required, the company will have to cancel loss-making trains (235 trains with the third-class coaches), to reduce the number of personnel by 15,000 people, to halve the number of third-class coaches in other trains, and to stop purchasing new railcars.
Currently, the amount of subsidies from the federal budget is linked to the passenger transportation forecast. The FPC spends this during the course of year. If the real transportation volume exceeds the plan, there will be a gap making it impossible to pay salaries to employees and to pay contractors. First of all, the debt for the services provided by Russian Railways, the parent company of the FPC, will grow. As a result, the FPC’s losses will grow as well as its debt to RZD.
Opportunities and scenarios
Obviously, the further development of passenger transportation in Russia will depend on the economic policy of the state. The long-term prospects of the FPC, defined in the new Strategy of the Company’s Development till 2030, are interconnected with the scenarios of the long-term outlook for RF social and economic developments in this period.
The first scenario in the Strategy ‒ “active development” – envisages sufficient state funding for rolling stock purchase and update, and implementation of the state contract on loss-making routes. This will help restrain the tariff increase in the state-regulated sector (in 2012-2030, the tariff index exceeded the annual inflation by 1.7%, therefore smaller than the forecasted personal income growth). Consequently, there will be a rise in passenger transportation in state-regulated and non-regulated sectors. The second scenario – “evolution” – can be carried out if state funding is moderate, and investment in rolling stock in the regulated sector is not enough to fulfill the demand and keep the current mechanism of compensation for lost revenue. According to FPC, tariffs in the state-regulated sector will exceed inflation by 3.2% per annum in 2012-2030, which is less than the increase in the population’s real income. Passenger turnover will grow only in the non-regulated sector. The third scenario – “forced reduction” envisages minimum state funding, at which the investment in rolling stock is insufficient to fulfill the demand in both – regulated and non-regulated sectors. The planned average tariff increase will exceed inflation by 3.8% per annum in 2012-2030 (below the forecasted personal income growth), which will cause a significant decline in passenger turnover.
“A specific feature of the FPC’s strategy is the developers’ attempt to solve one of the main problems faced by the company – the unprofitability of the regulated sector and the deficit in funding,” says Prof. Yury Scherbanin, Institute of Economic Forecasting, Russian Academy of Sciences.
Since the FPC has the function of socially important transportation in third-class coaches and carriages on regulated tariffs, the efficient development of long-distance transportation, especially in its regulated sector, will depend on the active and coordinated actions of the government and RZD. For that, decisions about the implementation of state contracts, about fulfillment of obligations to compensate for the lost revenue, and allocation of sufficient funding to replace outdated third-class coaches with new ones are required. The RZD holding company should carry out already adopted decisions about the infrastructure development and traffic speed increase. In the words of Mr Scherbanin, the FPC has two objectives: the further optimisation of expenditure on passenger transportation and modernisation and renewal of its material and technical resources. The FPC will hardly be able to carry out the optimisation without the help of the government, because its investment and tariff policies will directly depend on the state subsidies for the lost revenue in the regulated sector.
By Oksana Perepelitsa
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[SECTION_META_DESCRIPTION] => <img src="/ufiles/image/rus/inter/2012/4/10.jpg" border="1" alt=" " hspace="5" width="300" height="200" align="left" />The summer results show that the Federal Passenger Company (FPC) succeeded in reversing the trend of decline in passenger turnover. In the foreseeable future, however, railways will face tougher competition from air and road transporters. The Development Strategy of the FPC till 2030 is to prevent <br />losing a part of the market.
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[DETAIL_TEXT] => Summer Peak
The amount of passenger transportation in the FPC’s train fleet in summer traditionally makes 34% of the annual volume. The peak usually takes place in July – August. In these months the demand for passenger railway transportation almost doubles in comparison with the average. In June-August 2012, long-distance FPC trains transported 39.1 million people, a 1.5% increase on the same period of the previous year. The passenger turnover rose by 2.7% to 44.1 billion passenger-kilometres. The largest number of departing passengers (458,100) was registered on August 17.
102 additional trains for 411 journeys were included into the timetable last summer. For the sake of comparison, 98 trains for 344 journeys were put into operation in the same period in 2011. Despite forecasts made by skeptics, who reminded us about the decline in transportation in 2011 because of bad weather, more than 3.4 million passengers were carried to the Black Sea resorts of the Northern Caucasus, a 3% increase on the 2011 summer’s result. The largest growth was registered on the routes to Anapa (+11%), and Adler and Sochi (+4%).
The summer time was hot for the Crimean routes too. Numerous middlemen used the opportunity to buy tickets without passports. As a result, a deficit of tickets, especially to the third-class coaches, emerged. Specialists at FPC managed to cope with the problem. They monitored the process of ticket selling, and if necessary, the company either extended the number of railcars in the trains, or added extra trains on the route.
As a result, 21 trains for 184 journeys were added to routes to the Crimea, which is by 88 journeys more than in 2011. The number of journeys from Moscow to Simferopol, Sevastopol, Feodosiya, and Evpatoria grew by 32 on the previous summer. And the number of passengers transported to the Crimea rose by 4.5%
Mikhail Akulov, Vice President of RZD, CEO of the FPC noted that the company plans to keep to these achieved growth rates. And this year’s situation is favourable for that. In the 2012-2013 timetable, there are 596 pairs of passenger trains formed by the FPC. Of that, 489 train pairs will service domestic lines (this number includes 15 pairs of mail and baggage trains and 10 pairs of isothermal trains), and 93 will travel to the CIS and the Baltic states, and 14 – to other countries.
Competition Will Become Tougher
According to the outlook for transport services development, the competition between railways and road- and air transporters in the passenger transportation sector will become tougher. And railways may lose a significant share in this market. This is a characteristic trend not only for Russia. If people’s wealth increases in any country, the share of air transporters in the passenger transport market increases there, and the journey time becomes a more important criterion for customers. Five years ago about one third of polled Russian passengers said that the journey time is the determining factor, and today it is the most important factor for a half of passengers in Russia.
Yury Saakyan, CEO of the Institute of Natural Monopolies says that the control over the FPC by regulating bodies is excessive, taking into account its unique position in the railway passenger transportation market.
For example, the situation is as follows: discounts on flights are put into operation on some routes. The FPC, however, cannot change either the schedule or the number of railcars in a train. Meanwhile, it is obvious that passenger numbers on the railways will fall on this route, if flying is cheaper.
The basic standards of long-distance passenger railway traffic are approved by state bodies once a year, and making corrections in them is a very complicated and time consuming process. Thus, a flexible reaction to changes in other transport modes’ work is not possible. Consequently, railway transportation becomes less efficient and expenditure rises. The performance of long-distance bus transporters remains nontransparent and uncontrolled. There is price dumping because most companies in this sector operate illegally or with safety violations. Another advantage of bus transportation is the lack of the infrastructure fee (i.e. for using the road), since motorways are maintained at the state’s expense. Meanwhile, every passenger who chooses railways has to pay the infrastructure fee.
The great variety of available ticket prices caused by the globalisation of the market within the framework of the Customs Union and the Common Economic Space of Russia, Belarus, and Kazakhstan, and Russia’s joining the WTO, will contribute to the development of greater competition. Due to the unbalanced Russian economy, the RF federal budget is still vulnerable to a possible plunge in the prices of oil and raw materials in the world market, and to global trade and financial turmoil. In this situation, one can hardly expect a boom in the passenger transportation market. Having taken all this into account, the FPC carried out a large scale programme of cost cutting in 2010-2011. According to Vadim Mishanin, Deputy CEO of the FPC, it helped save RUB 11 billion, and RUB 5.6 billion will be saved this year. Due to optimisation of its operations, even with tariffs regulated by the state bodies, the FPC managed to achieve a 1% decrease in the cost price of products in 2011, while there was an 8.6% growth in consumer prices in this period.
More Losses and Debts
However obvious the advantages of such measures are, the receipts are still not enough to renew the rolling stock, for example. The topicality of this problem is proved by statistics: the condition of 18% of third-class coaches, and 5% of the second-, the first- , and the VIP-class coaches has deteriorated by 90%. Vyacheslav Petrenko, Director of the Department of the State Policy in the Railway Sector, the RF Transport Ministry, notes that the fleet of third-class coaches will be considered as a priority because of the enormous demand for transportation in railcars of this type.
These plans, however, may suffer the fate of “good intentions”. The state has partly compensated for all the revenues lost by the company because of tariff regulation, and it does not participate in defining the core standards of transportation. In 2011-2012, the FPC will lose more than RUB 13 billion (the shortage of budget funding amounted to RUB 7.2 billion in 2011, and it is supposed to be RUB 6 billion in 2012). If the amount of subsidy is not enough, the Federal Passenger Company will have to refuse to buy unprofitable third-class wagons and reduce transportation in the state-regulated sector to match the sum it receives. As a reminder, the Ministry of Finance offered to reduce railway passenger transportation subsidies to RUB 40 billion in 2013, and to RUB 22 billion in 2015. According to specialists at the FPC, the company needs a subsidy of at least RUB 36 billion for the long-distance passenger transportation business every year. In the words of Mr Mishanin, if the funding level is smaller than required, the company will have to cancel loss-making trains (235 trains with the third-class coaches), to reduce the number of personnel by 15,000 people, to halve the number of third-class coaches in other trains, and to stop purchasing new railcars.
Currently, the amount of subsidies from the federal budget is linked to the passenger transportation forecast. The FPC spends this during the course of year. If the real transportation volume exceeds the plan, there will be a gap making it impossible to pay salaries to employees and to pay contractors. First of all, the debt for the services provided by Russian Railways, the parent company of the FPC, will grow. As a result, the FPC’s losses will grow as well as its debt to RZD.
Opportunities and scenarios
Obviously, the further development of passenger transportation in Russia will depend on the economic policy of the state. The long-term prospects of the FPC, defined in the new Strategy of the Company’s Development till 2030, are interconnected with the scenarios of the long-term outlook for RF social and economic developments in this period.
The first scenario in the Strategy ‒ “active development” – envisages sufficient state funding for rolling stock purchase and update, and implementation of the state contract on loss-making routes. This will help restrain the tariff increase in the state-regulated sector (in 2012-2030, the tariff index exceeded the annual inflation by 1.7%, therefore smaller than the forecasted personal income growth). Consequently, there will be a rise in passenger transportation in state-regulated and non-regulated sectors. The second scenario – “evolution” – can be carried out if state funding is moderate, and investment in rolling stock in the regulated sector is not enough to fulfill the demand and keep the current mechanism of compensation for lost revenue. According to FPC, tariffs in the state-regulated sector will exceed inflation by 3.2% per annum in 2012-2030, which is less than the increase in the population’s real income. Passenger turnover will grow only in the non-regulated sector. The third scenario – “forced reduction” envisages minimum state funding, at which the investment in rolling stock is insufficient to fulfill the demand in both – regulated and non-regulated sectors. The planned average tariff increase will exceed inflation by 3.8% per annum in 2012-2030 (below the forecasted personal income growth), which will cause a significant decline in passenger turnover.
“A specific feature of the FPC’s strategy is the developers’ attempt to solve one of the main problems faced by the company – the unprofitability of the regulated sector and the deficit in funding,” says Prof. Yury Scherbanin, Institute of Economic Forecasting, Russian Academy of Sciences.
Since the FPC has the function of socially important transportation in third-class coaches and carriages on regulated tariffs, the efficient development of long-distance transportation, especially in its regulated sector, will depend on the active and coordinated actions of the government and RZD. For that, decisions about the implementation of state contracts, about fulfillment of obligations to compensate for the lost revenue, and allocation of sufficient funding to replace outdated third-class coaches with new ones are required. The RZD holding company should carry out already adopted decisions about the infrastructure development and traffic speed increase. In the words of Mr Scherbanin, the FPC has two objectives: the further optimisation of expenditure on passenger transportation and modernisation and renewal of its material and technical resources. The FPC will hardly be able to carry out the optimisation without the help of the government, because its investment and tariff policies will directly depend on the state subsidies for the lost revenue in the regulated sector.
By Oksana Perepelitsa
[~DETAIL_TEXT] => Summer Peak
The amount of passenger transportation in the FPC’s train fleet in summer traditionally makes 34% of the annual volume. The peak usually takes place in July – August. In these months the demand for passenger railway transportation almost doubles in comparison with the average. In June-August 2012, long-distance FPC trains transported 39.1 million people, a 1.5% increase on the same period of the previous year. The passenger turnover rose by 2.7% to 44.1 billion passenger-kilometres. The largest number of departing passengers (458,100) was registered on August 17.
102 additional trains for 411 journeys were included into the timetable last summer. For the sake of comparison, 98 trains for 344 journeys were put into operation in the same period in 2011. Despite forecasts made by skeptics, who reminded us about the decline in transportation in 2011 because of bad weather, more than 3.4 million passengers were carried to the Black Sea resorts of the Northern Caucasus, a 3% increase on the 2011 summer’s result. The largest growth was registered on the routes to Anapa (+11%), and Adler and Sochi (+4%).
The summer time was hot for the Crimean routes too. Numerous middlemen used the opportunity to buy tickets without passports. As a result, a deficit of tickets, especially to the third-class coaches, emerged. Specialists at FPC managed to cope with the problem. They monitored the process of ticket selling, and if necessary, the company either extended the number of railcars in the trains, or added extra trains on the route.
As a result, 21 trains for 184 journeys were added to routes to the Crimea, which is by 88 journeys more than in 2011. The number of journeys from Moscow to Simferopol, Sevastopol, Feodosiya, and Evpatoria grew by 32 on the previous summer. And the number of passengers transported to the Crimea rose by 4.5%
Mikhail Akulov, Vice President of RZD, CEO of the FPC noted that the company plans to keep to these achieved growth rates. And this year’s situation is favourable for that. In the 2012-2013 timetable, there are 596 pairs of passenger trains formed by the FPC. Of that, 489 train pairs will service domestic lines (this number includes 15 pairs of mail and baggage trains and 10 pairs of isothermal trains), and 93 will travel to the CIS and the Baltic states, and 14 – to other countries.
Competition Will Become Tougher
According to the outlook for transport services development, the competition between railways and road- and air transporters in the passenger transportation sector will become tougher. And railways may lose a significant share in this market. This is a characteristic trend not only for Russia. If people’s wealth increases in any country, the share of air transporters in the passenger transport market increases there, and the journey time becomes a more important criterion for customers. Five years ago about one third of polled Russian passengers said that the journey time is the determining factor, and today it is the most important factor for a half of passengers in Russia.
Yury Saakyan, CEO of the Institute of Natural Monopolies says that the control over the FPC by regulating bodies is excessive, taking into account its unique position in the railway passenger transportation market.
For example, the situation is as follows: discounts on flights are put into operation on some routes. The FPC, however, cannot change either the schedule or the number of railcars in a train. Meanwhile, it is obvious that passenger numbers on the railways will fall on this route, if flying is cheaper.
The basic standards of long-distance passenger railway traffic are approved by state bodies once a year, and making corrections in them is a very complicated and time consuming process. Thus, a flexible reaction to changes in other transport modes’ work is not possible. Consequently, railway transportation becomes less efficient and expenditure rises. The performance of long-distance bus transporters remains nontransparent and uncontrolled. There is price dumping because most companies in this sector operate illegally or with safety violations. Another advantage of bus transportation is the lack of the infrastructure fee (i.e. for using the road), since motorways are maintained at the state’s expense. Meanwhile, every passenger who chooses railways has to pay the infrastructure fee.
The great variety of available ticket prices caused by the globalisation of the market within the framework of the Customs Union and the Common Economic Space of Russia, Belarus, and Kazakhstan, and Russia’s joining the WTO, will contribute to the development of greater competition. Due to the unbalanced Russian economy, the RF federal budget is still vulnerable to a possible plunge in the prices of oil and raw materials in the world market, and to global trade and financial turmoil. In this situation, one can hardly expect a boom in the passenger transportation market. Having taken all this into account, the FPC carried out a large scale programme of cost cutting in 2010-2011. According to Vadim Mishanin, Deputy CEO of the FPC, it helped save RUB 11 billion, and RUB 5.6 billion will be saved this year. Due to optimisation of its operations, even with tariffs regulated by the state bodies, the FPC managed to achieve a 1% decrease in the cost price of products in 2011, while there was an 8.6% growth in consumer prices in this period.
More Losses and Debts
However obvious the advantages of such measures are, the receipts are still not enough to renew the rolling stock, for example. The topicality of this problem is proved by statistics: the condition of 18% of third-class coaches, and 5% of the second-, the first- , and the VIP-class coaches has deteriorated by 90%. Vyacheslav Petrenko, Director of the Department of the State Policy in the Railway Sector, the RF Transport Ministry, notes that the fleet of third-class coaches will be considered as a priority because of the enormous demand for transportation in railcars of this type.
These plans, however, may suffer the fate of “good intentions”. The state has partly compensated for all the revenues lost by the company because of tariff regulation, and it does not participate in defining the core standards of transportation. In 2011-2012, the FPC will lose more than RUB 13 billion (the shortage of budget funding amounted to RUB 7.2 billion in 2011, and it is supposed to be RUB 6 billion in 2012). If the amount of subsidy is not enough, the Federal Passenger Company will have to refuse to buy unprofitable third-class wagons and reduce transportation in the state-regulated sector to match the sum it receives. As a reminder, the Ministry of Finance offered to reduce railway passenger transportation subsidies to RUB 40 billion in 2013, and to RUB 22 billion in 2015. According to specialists at the FPC, the company needs a subsidy of at least RUB 36 billion for the long-distance passenger transportation business every year. In the words of Mr Mishanin, if the funding level is smaller than required, the company will have to cancel loss-making trains (235 trains with the third-class coaches), to reduce the number of personnel by 15,000 people, to halve the number of third-class coaches in other trains, and to stop purchasing new railcars.
Currently, the amount of subsidies from the federal budget is linked to the passenger transportation forecast. The FPC spends this during the course of year. If the real transportation volume exceeds the plan, there will be a gap making it impossible to pay salaries to employees and to pay contractors. First of all, the debt for the services provided by Russian Railways, the parent company of the FPC, will grow. As a result, the FPC’s losses will grow as well as its debt to RZD.
Opportunities and scenarios
Obviously, the further development of passenger transportation in Russia will depend on the economic policy of the state. The long-term prospects of the FPC, defined in the new Strategy of the Company’s Development till 2030, are interconnected with the scenarios of the long-term outlook for RF social and economic developments in this period.
The first scenario in the Strategy ‒ “active development” – envisages sufficient state funding for rolling stock purchase and update, and implementation of the state contract on loss-making routes. This will help restrain the tariff increase in the state-regulated sector (in 2012-2030, the tariff index exceeded the annual inflation by 1.7%, therefore smaller than the forecasted personal income growth). Consequently, there will be a rise in passenger transportation in state-regulated and non-regulated sectors. The second scenario – “evolution” – can be carried out if state funding is moderate, and investment in rolling stock in the regulated sector is not enough to fulfill the demand and keep the current mechanism of compensation for lost revenue. According to FPC, tariffs in the state-regulated sector will exceed inflation by 3.2% per annum in 2012-2030, which is less than the increase in the population’s real income. Passenger turnover will grow only in the non-regulated sector. The third scenario – “forced reduction” envisages minimum state funding, at which the investment in rolling stock is insufficient to fulfill the demand in both – regulated and non-regulated sectors. The planned average tariff increase will exceed inflation by 3.8% per annum in 2012-2030 (below the forecasted personal income growth), which will cause a significant decline in passenger turnover.
“A specific feature of the FPC’s strategy is the developers’ attempt to solve one of the main problems faced by the company – the unprofitability of the regulated sector and the deficit in funding,” says Prof. Yury Scherbanin, Institute of Economic Forecasting, Russian Academy of Sciences.
Since the FPC has the function of socially important transportation in third-class coaches and carriages on regulated tariffs, the efficient development of long-distance transportation, especially in its regulated sector, will depend on the active and coordinated actions of the government and RZD. For that, decisions about the implementation of state contracts, about fulfillment of obligations to compensate for the lost revenue, and allocation of sufficient funding to replace outdated third-class coaches with new ones are required. The RZD holding company should carry out already adopted decisions about the infrastructure development and traffic speed increase. In the words of Mr Scherbanin, the FPC has two objectives: the further optimisation of expenditure on passenger transportation and modernisation and renewal of its material and technical resources. The FPC will hardly be able to carry out the optimisation without the help of the government, because its investment and tariff policies will directly depend on the state subsidies for the lost revenue in the regulated sector.
By Oksana Perepelitsa
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Strengthening the Trans-Siberian Mainline as a link of the East – West transit route is one of Russian Railways’ strategic objectives for the development Array
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[DETAIL_TEXT] => The Need for Speed
The stability of the economies of countries on the whole Eurasian continent depends to a large extent on the Trans-Siberian Mainline (Transsib). States of the Asian and Pacific Region, especially China, have enormous potential for the development of foreign trade turnover with EU countries. This refers to the infrastructure capacity for cargo transportation from Europe to Asia and servicing the stable cargo flow moving in the opposite direction.
The total volume of international rail transportation of large-capacity containers via the Transsib amounted to 563,000 TEU in 2011, a 27% increase on the previous year. In the first half of 2012, 308,000 TEU was carried, 23% more than in the same period of 2011. In spite of the increases, the absolute figures of transportation via the Transsib are not so remarkable. No more than 1% of the total container freight flow between Western Europe and Asia is now transported via Russia.
The development of export and import transportation and usage of transit potential can be considered two priorities for container business development in Russia till 2020, targeted at increasing its competitiveness in the international transport and logistics market. According to different forecasts made, for example at the 21st Plenary Meeting of the International Association the Coordinating Council on Trans-Siberian Transportation (CCTT), which was held in Helsinki in September 2012, the average annual increase in container transportation via the Russian railway network may vary from 8% to 10%.
These plans are closely connected with the issues of urgent development of infrastructure and increasing carrying capacities on the eastern part of Russian railways, including the Transsib and the Baikal-Amur Mainline. RUB 1.1 trillion is to be invested in it by 2020. The volume of transit transportation via the Transsib is supposed to grow due to advantages created for more efficient competition with alternative routes, and first of all the traditional sea route via the Suez canal. This can be achieved through coordinated work and efficient interaction among all participants of transportation – members of the CCTT, federal executive authorities, railway companies, ports, and consignors. It envisages development of logistics schemes, usage of innovative technologies, preferential tariff rates, and creation of attractive conditions for cargo transportation.
The speed of transportation via the Transsib is faster than via the Suez Canal. Railway rates, however, are not competitive in comparison with sea charter rates. There are objective reasons for that: the lion’s share of the railway tariff is expenses on infrastructrure maintenance, which does not exist in sea charter rates. In the opinion of experts, railway transit may become more attractive through a higher speeds and services of a higher quality.
If sea transporters offer a lower tariff rate, railway companies can carry freight in a shorter period of time. Cargo transportation takes 15-20 days instead of 40-45. Such a reduction in the delivery time dramatically changes the situation, because the longer cargo is in transit, the longer the assets of the cargo owner and the consignee are unavailable. Today, Russian transport operators have already mastered cargo transportation on the “door-to-door” logistics principle. For example, TransContainer can transport cargo from Shanghai to Berlin in 15-20 days. Sea transportation on the same route takes 45 days.
Depending on the type of cargo, land transportation of every container is by $1,500 – 2,000 more expensive than that by sea vessels. Analysis shows that if the railway rate exceeds the sea one by $1,000, railways will be become competitive. This can be achieved only through the reduction of expenditure. According to experts’ evaluations, transit cost decline by $400 by decreasing expenditure on loading-unloading works, transportation by sea vessels, payments for the use of infrastructure, etc. will allow doubling of the cargo flow (up to 500,000 TEU in one direction). And the reduction in transit time from 14 to 7 days will attract another 60,000 – 200,000 TEU per annum.
“Nevertheless, while sea tariffs remain low, the changes in tariffs on transportation via the Transsib will hardly influence on the volume of transportation via the mainline,” notes Gennady Bessonov, Secretary General of the CCTT. In his opinion, the best solution is to make the technology perfect and cut expenditure through the launch of a single logistics operator. The number of participants in the multimodal chain is not important to a cargo owner, the main thing for him is the final cost. “The transport product is attractive bacause we can provide “door to door” transportation at a certain final (through) rate, which is based on the coordinated work of the multimodal chain and reduction of expenditure at the points of cargo transfer,” continues Mr Bessonov. “Therefore, the problem is not mechanical reduction of the rate (it is low already), but organisation of this work. We have been doing it for several years already. There have appeared very good operators in Russia, which have extended agent networks and joint ventures abroad. All this helps to reduce expenditure. Therefore, the Trans-Siberian Mainline has every chance of increasing its competitivess as a transit bridge between the countries of the Asian and Pacific Region and Europe.”
Transit on the Rise
The trend of increase in transit has appeared lately. Freight flows are emerging in China and South Korea, and the main regions benefiting from them are Central Asian countries of the CIS and Afghanistan. According to the general scheme of railways development, RZD’s forecast for the prospective volume of transit containerised cargo transportation on the route Western Europe – Western China is approximately 1 million tons by 2020, and that between Eastern Asia and Europe – about 5.5 million tons.
Transportation on the routes Europe – the CIS – Russia – Central Asia – China, the Baltic States – Central Asia – Afghanistan, the Republic of Korea – Russia, the CIS, Europe is developing most actively.
RZD Logistics is carrying out one of the new projects of container transportation from China – transportation of freight of a large international trade network OBI from China to Moscow via Zabaikalsk. The planned transportation volume is two block trains per month. The cargo departs from different Chinese ports (Ningbo, Nanjing, Qingdao, Yantian) with consolidation in the Yíngkou port and further transportation as a part of a fast container train via the Manchuria – Zabaikalsk border crossing to the Moscow-Tovarnaya-Paveletskaya railway station and transportation by trucks from there to warehouses in the Moscow region. Therefore, a complete range of “port-to-door” services is provided to a client.
RZD Logistics has completed the purchase of a 10% stake in Far East Land Bridge Ltd. (FELB), which specialises in transit railway container transportation on the route China – Europe – China and cooperates with BMW, LG, Samsung, and other large corporations. The target of becoming partners with FELB is the use and further development of the transit potential of Russian railways. In the framework of this project regarding the Europe – China container train, the planned transportation volume is approximately 35,000 TEU in 2012, and 66,000 TEU by 2015.
Another important project of container transportation on the Chongqing – Duisburg line is carried out by a joint venture with YuXinOu (Chongqing) Logistics Co., Ltd (a JV of the transport holding company of Chongqing (CQCT), China Railway International Multimodal Transport (CRIMT), RZD Logistics, Schenker China Ltd, and Kaztransservice.
YuXinOu will also provide transport and forwarding, customs, informational, consulting, and other services in the sphere of international container transportation. The final target is to create a 3PL company.
Other successful projects are transportation of car components for assembly by Volkswagen and Skoda from European plants – suppliers of VW to Kaluga and Nizhny Novgorod; for the PSA Peugeot-Citroen from Vesoul (France) to Vorotynsk (Russia); for BMW from Germany to China; for Ford Sollers plant from Malasheviche (Poland) to Tikhonovo (Elabuga, Tatarstan); for Uz-Daewoo and General Motors assembly from the Republic of Korea to Uzbekistan, and SsangYong from the Republic of Korea to Kazakhstan.
Experience in international container transportation has shown that for any project to be successful, work must be constantly underway to eliminate bottle-necks and consolidate the efforts of all participants in the transport process. The creation of the Customs Union, the formation of the Common Economic Space, and other integrating initiatives open new prospects for the development of the transport and logistics business to all players in the Eurasian market. One of the most urgent issues today is the harmonisation of the regulatory and legislative base of railways and enhancement of cross-border technologies. In particularly, work is underway to develop a pilot project named “Electronic Train.” Another important direction of joint international activity is formation of adequate tariffs, making the final cost of cargo delivery transparent and predictable for a client. Moreover, Trans-Siberian transportation must become high-yielding and meet international safety standards.
By Elena Ushkova
[~DETAIL_TEXT] => The Need for Speed
The stability of the economies of countries on the whole Eurasian continent depends to a large extent on the Trans-Siberian Mainline (Transsib). States of the Asian and Pacific Region, especially China, have enormous potential for the development of foreign trade turnover with EU countries. This refers to the infrastructure capacity for cargo transportation from Europe to Asia and servicing the stable cargo flow moving in the opposite direction.
The total volume of international rail transportation of large-capacity containers via the Transsib amounted to 563,000 TEU in 2011, a 27% increase on the previous year. In the first half of 2012, 308,000 TEU was carried, 23% more than in the same period of 2011. In spite of the increases, the absolute figures of transportation via the Transsib are not so remarkable. No more than 1% of the total container freight flow between Western Europe and Asia is now transported via Russia.
The development of export and import transportation and usage of transit potential can be considered two priorities for container business development in Russia till 2020, targeted at increasing its competitiveness in the international transport and logistics market. According to different forecasts made, for example at the 21st Plenary Meeting of the International Association the Coordinating Council on Trans-Siberian Transportation (CCTT), which was held in Helsinki in September 2012, the average annual increase in container transportation via the Russian railway network may vary from 8% to 10%.
These plans are closely connected with the issues of urgent development of infrastructure and increasing carrying capacities on the eastern part of Russian railways, including the Transsib and the Baikal-Amur Mainline. RUB 1.1 trillion is to be invested in it by 2020. The volume of transit transportation via the Transsib is supposed to grow due to advantages created for more efficient competition with alternative routes, and first of all the traditional sea route via the Suez canal. This can be achieved through coordinated work and efficient interaction among all participants of transportation – members of the CCTT, federal executive authorities, railway companies, ports, and consignors. It envisages development of logistics schemes, usage of innovative technologies, preferential tariff rates, and creation of attractive conditions for cargo transportation.
The speed of transportation via the Transsib is faster than via the Suez Canal. Railway rates, however, are not competitive in comparison with sea charter rates. There are objective reasons for that: the lion’s share of the railway tariff is expenses on infrastructrure maintenance, which does not exist in sea charter rates. In the opinion of experts, railway transit may become more attractive through a higher speeds and services of a higher quality.
If sea transporters offer a lower tariff rate, railway companies can carry freight in a shorter period of time. Cargo transportation takes 15-20 days instead of 40-45. Such a reduction in the delivery time dramatically changes the situation, because the longer cargo is in transit, the longer the assets of the cargo owner and the consignee are unavailable. Today, Russian transport operators have already mastered cargo transportation on the “door-to-door” logistics principle. For example, TransContainer can transport cargo from Shanghai to Berlin in 15-20 days. Sea transportation on the same route takes 45 days.
Depending on the type of cargo, land transportation of every container is by $1,500 – 2,000 more expensive than that by sea vessels. Analysis shows that if the railway rate exceeds the sea one by $1,000, railways will be become competitive. This can be achieved only through the reduction of expenditure. According to experts’ evaluations, transit cost decline by $400 by decreasing expenditure on loading-unloading works, transportation by sea vessels, payments for the use of infrastructure, etc. will allow doubling of the cargo flow (up to 500,000 TEU in one direction). And the reduction in transit time from 14 to 7 days will attract another 60,000 – 200,000 TEU per annum.
“Nevertheless, while sea tariffs remain low, the changes in tariffs on transportation via the Transsib will hardly influence on the volume of transportation via the mainline,” notes Gennady Bessonov, Secretary General of the CCTT. In his opinion, the best solution is to make the technology perfect and cut expenditure through the launch of a single logistics operator. The number of participants in the multimodal chain is not important to a cargo owner, the main thing for him is the final cost. “The transport product is attractive bacause we can provide “door to door” transportation at a certain final (through) rate, which is based on the coordinated work of the multimodal chain and reduction of expenditure at the points of cargo transfer,” continues Mr Bessonov. “Therefore, the problem is not mechanical reduction of the rate (it is low already), but organisation of this work. We have been doing it for several years already. There have appeared very good operators in Russia, which have extended agent networks and joint ventures abroad. All this helps to reduce expenditure. Therefore, the Trans-Siberian Mainline has every chance of increasing its competitivess as a transit bridge between the countries of the Asian and Pacific Region and Europe.”
Transit on the Rise
The trend of increase in transit has appeared lately. Freight flows are emerging in China and South Korea, and the main regions benefiting from them are Central Asian countries of the CIS and Afghanistan. According to the general scheme of railways development, RZD’s forecast for the prospective volume of transit containerised cargo transportation on the route Western Europe – Western China is approximately 1 million tons by 2020, and that between Eastern Asia and Europe – about 5.5 million tons.
Transportation on the routes Europe – the CIS – Russia – Central Asia – China, the Baltic States – Central Asia – Afghanistan, the Republic of Korea – Russia, the CIS, Europe is developing most actively.
RZD Logistics is carrying out one of the new projects of container transportation from China – transportation of freight of a large international trade network OBI from China to Moscow via Zabaikalsk. The planned transportation volume is two block trains per month. The cargo departs from different Chinese ports (Ningbo, Nanjing, Qingdao, Yantian) with consolidation in the Yíngkou port and further transportation as a part of a fast container train via the Manchuria – Zabaikalsk border crossing to the Moscow-Tovarnaya-Paveletskaya railway station and transportation by trucks from there to warehouses in the Moscow region. Therefore, a complete range of “port-to-door” services is provided to a client.
RZD Logistics has completed the purchase of a 10% stake in Far East Land Bridge Ltd. (FELB), which specialises in transit railway container transportation on the route China – Europe – China and cooperates with BMW, LG, Samsung, and other large corporations. The target of becoming partners with FELB is the use and further development of the transit potential of Russian railways. In the framework of this project regarding the Europe – China container train, the planned transportation volume is approximately 35,000 TEU in 2012, and 66,000 TEU by 2015.
Another important project of container transportation on the Chongqing – Duisburg line is carried out by a joint venture with YuXinOu (Chongqing) Logistics Co., Ltd (a JV of the transport holding company of Chongqing (CQCT), China Railway International Multimodal Transport (CRIMT), RZD Logistics, Schenker China Ltd, and Kaztransservice.
YuXinOu will also provide transport and forwarding, customs, informational, consulting, and other services in the sphere of international container transportation. The final target is to create a 3PL company.
Other successful projects are transportation of car components for assembly by Volkswagen and Skoda from European plants – suppliers of VW to Kaluga and Nizhny Novgorod; for the PSA Peugeot-Citroen from Vesoul (France) to Vorotynsk (Russia); for BMW from Germany to China; for Ford Sollers plant from Malasheviche (Poland) to Tikhonovo (Elabuga, Tatarstan); for Uz-Daewoo and General Motors assembly from the Republic of Korea to Uzbekistan, and SsangYong from the Republic of Korea to Kazakhstan.
Experience in international container transportation has shown that for any project to be successful, work must be constantly underway to eliminate bottle-necks and consolidate the efforts of all participants in the transport process. The creation of the Customs Union, the formation of the Common Economic Space, and other integrating initiatives open new prospects for the development of the transport and logistics business to all players in the Eurasian market. One of the most urgent issues today is the harmonisation of the regulatory and legislative base of railways and enhancement of cross-border technologies. In particularly, work is underway to develop a pilot project named “Electronic Train.” Another important direction of joint international activity is formation of adequate tariffs, making the final cost of cargo delivery transparent and predictable for a client. Moreover, Trans-Siberian transportation must become high-yielding and meet international safety standards.
By Elena Ushkova
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[DETAIL_TEXT] => The Need for Speed
The stability of the economies of countries on the whole Eurasian continent depends to a large extent on the Trans-Siberian Mainline (Transsib). States of the Asian and Pacific Region, especially China, have enormous potential for the development of foreign trade turnover with EU countries. This refers to the infrastructure capacity for cargo transportation from Europe to Asia and servicing the stable cargo flow moving in the opposite direction.
The total volume of international rail transportation of large-capacity containers via the Transsib amounted to 563,000 TEU in 2011, a 27% increase on the previous year. In the first half of 2012, 308,000 TEU was carried, 23% more than in the same period of 2011. In spite of the increases, the absolute figures of transportation via the Transsib are not so remarkable. No more than 1% of the total container freight flow between Western Europe and Asia is now transported via Russia.
The development of export and import transportation and usage of transit potential can be considered two priorities for container business development in Russia till 2020, targeted at increasing its competitiveness in the international transport and logistics market. According to different forecasts made, for example at the 21st Plenary Meeting of the International Association the Coordinating Council on Trans-Siberian Transportation (CCTT), which was held in Helsinki in September 2012, the average annual increase in container transportation via the Russian railway network may vary from 8% to 10%.
These plans are closely connected with the issues of urgent development of infrastructure and increasing carrying capacities on the eastern part of Russian railways, including the Transsib and the Baikal-Amur Mainline. RUB 1.1 trillion is to be invested in it by 2020. The volume of transit transportation via the Transsib is supposed to grow due to advantages created for more efficient competition with alternative routes, and first of all the traditional sea route via the Suez canal. This can be achieved through coordinated work and efficient interaction among all participants of transportation – members of the CCTT, federal executive authorities, railway companies, ports, and consignors. It envisages development of logistics schemes, usage of innovative technologies, preferential tariff rates, and creation of attractive conditions for cargo transportation.
The speed of transportation via the Transsib is faster than via the Suez Canal. Railway rates, however, are not competitive in comparison with sea charter rates. There are objective reasons for that: the lion’s share of the railway tariff is expenses on infrastructrure maintenance, which does not exist in sea charter rates. In the opinion of experts, railway transit may become more attractive through a higher speeds and services of a higher quality.
If sea transporters offer a lower tariff rate, railway companies can carry freight in a shorter period of time. Cargo transportation takes 15-20 days instead of 40-45. Such a reduction in the delivery time dramatically changes the situation, because the longer cargo is in transit, the longer the assets of the cargo owner and the consignee are unavailable. Today, Russian transport operators have already mastered cargo transportation on the “door-to-door” logistics principle. For example, TransContainer can transport cargo from Shanghai to Berlin in 15-20 days. Sea transportation on the same route takes 45 days.
Depending on the type of cargo, land transportation of every container is by $1,500 – 2,000 more expensive than that by sea vessels. Analysis shows that if the railway rate exceeds the sea one by $1,000, railways will be become competitive. This can be achieved only through the reduction of expenditure. According to experts’ evaluations, transit cost decline by $400 by decreasing expenditure on loading-unloading works, transportation by sea vessels, payments for the use of infrastructure, etc. will allow doubling of the cargo flow (up to 500,000 TEU in one direction). And the reduction in transit time from 14 to 7 days will attract another 60,000 – 200,000 TEU per annum.
“Nevertheless, while sea tariffs remain low, the changes in tariffs on transportation via the Transsib will hardly influence on the volume of transportation via the mainline,” notes Gennady Bessonov, Secretary General of the CCTT. In his opinion, the best solution is to make the technology perfect and cut expenditure through the launch of a single logistics operator. The number of participants in the multimodal chain is not important to a cargo owner, the main thing for him is the final cost. “The transport product is attractive bacause we can provide “door to door” transportation at a certain final (through) rate, which is based on the coordinated work of the multimodal chain and reduction of expenditure at the points of cargo transfer,” continues Mr Bessonov. “Therefore, the problem is not mechanical reduction of the rate (it is low already), but organisation of this work. We have been doing it for several years already. There have appeared very good operators in Russia, which have extended agent networks and joint ventures abroad. All this helps to reduce expenditure. Therefore, the Trans-Siberian Mainline has every chance of increasing its competitivess as a transit bridge between the countries of the Asian and Pacific Region and Europe.”
Transit on the Rise
The trend of increase in transit has appeared lately. Freight flows are emerging in China and South Korea, and the main regions benefiting from them are Central Asian countries of the CIS and Afghanistan. According to the general scheme of railways development, RZD’s forecast for the prospective volume of transit containerised cargo transportation on the route Western Europe – Western China is approximately 1 million tons by 2020, and that between Eastern Asia and Europe – about 5.5 million tons.
Transportation on the routes Europe – the CIS – Russia – Central Asia – China, the Baltic States – Central Asia – Afghanistan, the Republic of Korea – Russia, the CIS, Europe is developing most actively.
RZD Logistics is carrying out one of the new projects of container transportation from China – transportation of freight of a large international trade network OBI from China to Moscow via Zabaikalsk. The planned transportation volume is two block trains per month. The cargo departs from different Chinese ports (Ningbo, Nanjing, Qingdao, Yantian) with consolidation in the Yíngkou port and further transportation as a part of a fast container train via the Manchuria – Zabaikalsk border crossing to the Moscow-Tovarnaya-Paveletskaya railway station and transportation by trucks from there to warehouses in the Moscow region. Therefore, a complete range of “port-to-door” services is provided to a client.
RZD Logistics has completed the purchase of a 10% stake in Far East Land Bridge Ltd. (FELB), which specialises in transit railway container transportation on the route China – Europe – China and cooperates with BMW, LG, Samsung, and other large corporations. The target of becoming partners with FELB is the use and further development of the transit potential of Russian railways. In the framework of this project regarding the Europe – China container train, the planned transportation volume is approximately 35,000 TEU in 2012, and 66,000 TEU by 2015.
Another important project of container transportation on the Chongqing – Duisburg line is carried out by a joint venture with YuXinOu (Chongqing) Logistics Co., Ltd (a JV of the transport holding company of Chongqing (CQCT), China Railway International Multimodal Transport (CRIMT), RZD Logistics, Schenker China Ltd, and Kaztransservice.
YuXinOu will also provide transport and forwarding, customs, informational, consulting, and other services in the sphere of international container transportation. The final target is to create a 3PL company.
Other successful projects are transportation of car components for assembly by Volkswagen and Skoda from European plants – suppliers of VW to Kaluga and Nizhny Novgorod; for the PSA Peugeot-Citroen from Vesoul (France) to Vorotynsk (Russia); for BMW from Germany to China; for Ford Sollers plant from Malasheviche (Poland) to Tikhonovo (Elabuga, Tatarstan); for Uz-Daewoo and General Motors assembly from the Republic of Korea to Uzbekistan, and SsangYong from the Republic of Korea to Kazakhstan.
Experience in international container transportation has shown that for any project to be successful, work must be constantly underway to eliminate bottle-necks and consolidate the efforts of all participants in the transport process. The creation of the Customs Union, the formation of the Common Economic Space, and other integrating initiatives open new prospects for the development of the transport and logistics business to all players in the Eurasian market. One of the most urgent issues today is the harmonisation of the regulatory and legislative base of railways and enhancement of cross-border technologies. In particularly, work is underway to develop a pilot project named “Electronic Train.” Another important direction of joint international activity is formation of adequate tariffs, making the final cost of cargo delivery transparent and predictable for a client. Moreover, Trans-Siberian transportation must become high-yielding and meet international safety standards.
By Elena Ushkova
[~DETAIL_TEXT] => The Need for Speed
The stability of the economies of countries on the whole Eurasian continent depends to a large extent on the Trans-Siberian Mainline (Transsib). States of the Asian and Pacific Region, especially China, have enormous potential for the development of foreign trade turnover with EU countries. This refers to the infrastructure capacity for cargo transportation from Europe to Asia and servicing the stable cargo flow moving in the opposite direction.
The total volume of international rail transportation of large-capacity containers via the Transsib amounted to 563,000 TEU in 2011, a 27% increase on the previous year. In the first half of 2012, 308,000 TEU was carried, 23% more than in the same period of 2011. In spite of the increases, the absolute figures of transportation via the Transsib are not so remarkable. No more than 1% of the total container freight flow between Western Europe and Asia is now transported via Russia.
The development of export and import transportation and usage of transit potential can be considered two priorities for container business development in Russia till 2020, targeted at increasing its competitiveness in the international transport and logistics market. According to different forecasts made, for example at the 21st Plenary Meeting of the International Association the Coordinating Council on Trans-Siberian Transportation (CCTT), which was held in Helsinki in September 2012, the average annual increase in container transportation via the Russian railway network may vary from 8% to 10%.
These plans are closely connected with the issues of urgent development of infrastructure and increasing carrying capacities on the eastern part of Russian railways, including the Transsib and the Baikal-Amur Mainline. RUB 1.1 trillion is to be invested in it by 2020. The volume of transit transportation via the Transsib is supposed to grow due to advantages created for more efficient competition with alternative routes, and first of all the traditional sea route via the Suez canal. This can be achieved through coordinated work and efficient interaction among all participants of transportation – members of the CCTT, federal executive authorities, railway companies, ports, and consignors. It envisages development of logistics schemes, usage of innovative technologies, preferential tariff rates, and creation of attractive conditions for cargo transportation.
The speed of transportation via the Transsib is faster than via the Suez Canal. Railway rates, however, are not competitive in comparison with sea charter rates. There are objective reasons for that: the lion’s share of the railway tariff is expenses on infrastructrure maintenance, which does not exist in sea charter rates. In the opinion of experts, railway transit may become more attractive through a higher speeds and services of a higher quality.
If sea transporters offer a lower tariff rate, railway companies can carry freight in a shorter period of time. Cargo transportation takes 15-20 days instead of 40-45. Such a reduction in the delivery time dramatically changes the situation, because the longer cargo is in transit, the longer the assets of the cargo owner and the consignee are unavailable. Today, Russian transport operators have already mastered cargo transportation on the “door-to-door” logistics principle. For example, TransContainer can transport cargo from Shanghai to Berlin in 15-20 days. Sea transportation on the same route takes 45 days.
Depending on the type of cargo, land transportation of every container is by $1,500 – 2,000 more expensive than that by sea vessels. Analysis shows that if the railway rate exceeds the sea one by $1,000, railways will be become competitive. This can be achieved only through the reduction of expenditure. According to experts’ evaluations, transit cost decline by $400 by decreasing expenditure on loading-unloading works, transportation by sea vessels, payments for the use of infrastructure, etc. will allow doubling of the cargo flow (up to 500,000 TEU in one direction). And the reduction in transit time from 14 to 7 days will attract another 60,000 – 200,000 TEU per annum.
“Nevertheless, while sea tariffs remain low, the changes in tariffs on transportation via the Transsib will hardly influence on the volume of transportation via the mainline,” notes Gennady Bessonov, Secretary General of the CCTT. In his opinion, the best solution is to make the technology perfect and cut expenditure through the launch of a single logistics operator. The number of participants in the multimodal chain is not important to a cargo owner, the main thing for him is the final cost. “The transport product is attractive bacause we can provide “door to door” transportation at a certain final (through) rate, which is based on the coordinated work of the multimodal chain and reduction of expenditure at the points of cargo transfer,” continues Mr Bessonov. “Therefore, the problem is not mechanical reduction of the rate (it is low already), but organisation of this work. We have been doing it for several years already. There have appeared very good operators in Russia, which have extended agent networks and joint ventures abroad. All this helps to reduce expenditure. Therefore, the Trans-Siberian Mainline has every chance of increasing its competitivess as a transit bridge between the countries of the Asian and Pacific Region and Europe.”
Transit on the Rise
The trend of increase in transit has appeared lately. Freight flows are emerging in China and South Korea, and the main regions benefiting from them are Central Asian countries of the CIS and Afghanistan. According to the general scheme of railways development, RZD’s forecast for the prospective volume of transit containerised cargo transportation on the route Western Europe – Western China is approximately 1 million tons by 2020, and that between Eastern Asia and Europe – about 5.5 million tons.
Transportation on the routes Europe – the CIS – Russia – Central Asia – China, the Baltic States – Central Asia – Afghanistan, the Republic of Korea – Russia, the CIS, Europe is developing most actively.
RZD Logistics is carrying out one of the new projects of container transportation from China – transportation of freight of a large international trade network OBI from China to Moscow via Zabaikalsk. The planned transportation volume is two block trains per month. The cargo departs from different Chinese ports (Ningbo, Nanjing, Qingdao, Yantian) with consolidation in the Yíngkou port and further transportation as a part of a fast container train via the Manchuria – Zabaikalsk border crossing to the Moscow-Tovarnaya-Paveletskaya railway station and transportation by trucks from there to warehouses in the Moscow region. Therefore, a complete range of “port-to-door” services is provided to a client.
RZD Logistics has completed the purchase of a 10% stake in Far East Land Bridge Ltd. (FELB), which specialises in transit railway container transportation on the route China – Europe – China and cooperates with BMW, LG, Samsung, and other large corporations. The target of becoming partners with FELB is the use and further development of the transit potential of Russian railways. In the framework of this project regarding the Europe – China container train, the planned transportation volume is approximately 35,000 TEU in 2012, and 66,000 TEU by 2015.
Another important project of container transportation on the Chongqing – Duisburg line is carried out by a joint venture with YuXinOu (Chongqing) Logistics Co., Ltd (a JV of the transport holding company of Chongqing (CQCT), China Railway International Multimodal Transport (CRIMT), RZD Logistics, Schenker China Ltd, and Kaztransservice.
YuXinOu will also provide transport and forwarding, customs, informational, consulting, and other services in the sphere of international container transportation. The final target is to create a 3PL company.
Other successful projects are transportation of car components for assembly by Volkswagen and Skoda from European plants – suppliers of VW to Kaluga and Nizhny Novgorod; for the PSA Peugeot-Citroen from Vesoul (France) to Vorotynsk (Russia); for BMW from Germany to China; for Ford Sollers plant from Malasheviche (Poland) to Tikhonovo (Elabuga, Tatarstan); for Uz-Daewoo and General Motors assembly from the Republic of Korea to Uzbekistan, and SsangYong from the Republic of Korea to Kazakhstan.
Experience in international container transportation has shown that for any project to be successful, work must be constantly underway to eliminate bottle-necks and consolidate the efforts of all participants in the transport process. The creation of the Customs Union, the formation of the Common Economic Space, and other integrating initiatives open new prospects for the development of the transport and logistics business to all players in the Eurasian market. One of the most urgent issues today is the harmonisation of the regulatory and legislative base of railways and enhancement of cross-border technologies. In particularly, work is underway to develop a pilot project named “Electronic Train.” Another important direction of joint international activity is formation of adequate tariffs, making the final cost of cargo delivery transparent and predictable for a client. Moreover, Trans-Siberian transportation must become high-yielding and meet international safety standards.
By Elena Ushkova
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