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2013 was not an easy year for RZD, but the company succeeded in accomplishing practically all of its objectives. Vladimir Yakunin, President of Russian Railways JSC talks about why the transfer to a new business model of a transport and logistics company is efficient in the present-day situation and how to attract additional investment to the sector.
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Last year RZD celebrated its 10th anniversary. It’s high time to sum up the results. In the last decade the company invested RUB 4.3 trillion in renewing capital stock, upgrading the railway lines and implementing major infrastructure projects. The operating conditions in 2013 were very tough: the tax burden grew by RUB 11.4 billion, extra fuel expenses increased by RUB 6.9 billion, and revenue fell by RUB 7 billion because of the tariff unification in the framework of the Common Economic Space. Nevertheless, the company found funds to accomplish the objectives set for it by the state.
The average weight of a train grew by 21 tons in comparison with the previous year. More than 23,000 trains weighing over 8,000 tons were dispatched. The average speed was 525 km/day, that of express container trains was 861 km/day. The reliability of cargo delivery increased by 5.5%
“Currently, the company’s operational outlook is focused on maximising the effects of their investment. The reduced investment budget of RZD in 2014 is estimated at RUB 393.1 billion,” says V. Yakunin.
Projects envisaging the attraction of additional funds to infrastructure programmes are actively being promoted on the Russian railway network.
“Despite economic difficulties, the government made two landmark decisions: firstly about buying out RZD’s infrastructure bonds at the expense of the RF Pension Fund, and secondly about using money from the National Welfare Fund to invest in the industry,” says V. Yakunin.
A key source of loan funds in 2013 was the sale of infrastructure bonds with 15-30 year maturity terms at the “inflation+1%” rate. Now, RZD can finance some projects, which earlier were considered as unfinanceable, and could not be carried out with the help of market sources because of the lack of loan funds in roubles for the same period at this rate.
In 2013 the company placed two issues of Eurobonds in Swiss francs and one issue in euros, which was characterised by the lowest fixed rate among all corporate offerings made by issuers from the CIS countries on comparable terms.
In the middle of last November, the Board of Directors of RZD took the landmark decisions that the company would participate in the additional RUB 13.2 billion issue of shares in the Federal Cargo Company OJSC and RUB 5 billion issue of shares in the Federal Passenger Company OJSC.
It is worth taking the experience of adjacent states into consideration. For example, the government of Kazakhstan loaned $200 million to Kazakhstan Temir Zholy for 60 years at an interest rate of 0.01% per annum. The result speaks for itself. “Our colleagues will put into operation up to 1,400 kilometres of new railway tracks in 2014,” notes the President of RZD.
Put in a Good Word for Logistics
The transport and logistics block has a special place in the structure of Russian Railways.
“We strive not only to extend the volume of railway infrastructure renewal, but to increase its efficiency,” says V. Yakunin. Much was done in that area in 2013. In particular, the company managed to expand the number of container trains on the “Transsib in 7 Days” service, which move at speeds of more than 1,050 km/day. The company is carrying out this project in cooperation with TransContainer OJSC and Vostochnaya Stevedoring Company LLC. Freight was transported on the Nakhodka-Vostochnaya – Moscow-Tovarnaya-Palevetskaya route. The companies managed to switch from trial shipments to regular services. Earlier, it took express trains 11-14 days to deliver freight, and ordinary container transportation via the Transsib took 20 days.
Scheduled train traffic increased in 2013 and covered 79 routes. The practice of concluding long-term contracts and providing a “transportation + rolling stock” service (including railway-ferry service if necessary) expanded. Transportation of cargo in refrigerated containers and tank-containers is growing. The RZD Express service is offered instead of transportation in low-capacity containers. The total amount of additional revenue from all these projects exceeded RUB 1 billion in 2013.
According to V. Yakunin, the transfer to a new business model of a transport and logistics company has the same targets: to increase the efficiency of the infrastructure and the competitiveness of the holding company.
The first step in this transformation has been taken – the company gained control over the global logistics operator GEFCO. A year has passed since it became a part of the holding company, and definite success has been achieved. During 2013 consolidated sales from the GEFCO group of companies are estimated at €4 billion (+10.7% in comparison with 2012), and the increase in sales of services provided by GEFCO Russia is supposed to exceed 30%.
Naturally, the geography of RZD’s infrastructure services will expand. “Amid the limited profitability of transportation and limitations on spending funds inside Russia, we have to search for an opportunity to earn revenue in other markets,” explained V. Yakunin.
A number of important agreements were signed in 2013. In order to carry them out, updating the regulatory base for international freight transportation is needed. Mainly, it is targeted at providing efficient transport communication between Europe and Asia with the help of railways. Particularly, networks with railway authorities in the Asian and the Pacific region have been expanded. New steps were made in the framework of joint projects with Chinese, Mongolian, Japanese, Vietnamese, North and South Korean partners.
Last August, a pilot train with coal moved via the Makhalino – Hunchun railway border crossing (from Russia to China). Regular trains are supposed to be launched on this cross-border line in the near future.
The reconstruction of the railway section from the border of Russia to the Rason port – a part of the Trans-Korean Mainline – was completed. RZD and a consortium of South Korean companies (Posco, Hyundai Merchant Marine, Korail) signed a Memorandum of Understanding on November 13. The document envisages the reconstruction of the Khasan – Rason railway line and the creation of a universal transloading terminal in the Rason port.
Last autumn, another Memorandum of Understanding was signed by RZD and the Hungarian railway company MAV Zrt.
Moreover, there are plans to create a new transport corridor from the Pacific via Kazakhstan and Russia with an entry into Ukraine, Slovakia, and Vienna. In 2013, a tender for the design was announced, and contracts for the construction of railway infrastructure in Serbia were signed. Concession agreements are carried out in Armenia. RZD, Vietnamese Railways and the An Vien company signed an agreement of intent to cooperate on the design and construction of railway infrastructure in the southern region of Vietnam. Russian Railways continues to carry out infrastructure development projects on the Kalimantan island in Indonesia. RZD also submitted a bid to the Hellenic Republic Asset Development Fund to participate in international competitions.
The Millionth Passenger
Special attention should be paid to the support and development of passenger transportation. What did the company do in this sector?
In 2013, RZD transported the ten millionth passenger of the “Sapsan” train and the millionth passenger of the “Allegro” train. Passengers got an opportunity to get from Moscow to Veliky Novgorod by “Sapsan” and “Lastochka” trains in just 4.5 hours using the “Lastochka+” single ticket. The timetable of “Sapsan” and “Lastochka” trains envisages the most convenient scheduling connecting services at the Chudovo station.
Such trains were put into operation on the St Petersburg – Chudovo –
Novgorod-on-Volkhov, St Petersburg –
Chudovo – Bologoe, and Moscow – Nizhny Novgorod sections in 2013. One can decide the popularity of such routes judging by the fact that the electric train, consisting of two five-wagon units, was 90% full when departing for its pilot trip.
In spring “Lastochka” trains began to service two intermodal routes: Sochi – Adler – Airport and Kazan – Airport. The Adler – Krasnaya Polyana route was added in November. Next generation rolling stock will be used for servicing passengers during the XXII Olympics and the XI Paralympic Winter Games in Sochi. The opportunity of using “Lastochka” trains on other routes on the Russian railway network is being considered.
Last year double-deck railcars were put into operation on the Moscow – Adler route. This rolling stock is produced by the Tver Wagon Building Plant and is pulled by EP20 locomotives built by a joint venture between Transmashholding and Alstom. As a result of using double-deckers, the ticket price is 30% lower in comparison with the fee for travelling in an ordinary coach.
There is also progress in transportation linked with the Moscow transport hub. This project is supported by the state. Express electric trains was launched on the Moscow – Novoperedelkino route. In the Small Ring of the Moscow Railway project, the reconstruction of the Presnya and Kanatchikovo stations was completed.
Ticketing options were increased. For example, the loyalty programme for passengers was developed, and over 400,000 people have joined it. The practice of using marketing measures expanded as well as the mechanisms of flexible formation of tariffs for the deregulated sector. Sales of train tickets via the Internet grew.
The Federal Passenger Company optimises the route network. It has already helped to reduce the volume of loss-making transportation. “We had to take such measures, because the company had to match the amount of state subsidies, which had been allocated,” says V. Yakunin.
Thanks to the help of a number of the RF regions, several new trains were put into operation on the network. For example, in Ingushetia they expressed their readiness to financially contribute to organising long-distance passenger transportation.
The RF Transport Ministry understands the social importance of such transportation and does all it can to keep them available for a large number of citizens. Taking into account subsidies allocated for long-distance transportation, the activity of the Federal Passenger Company remains lossless. Saving such socially important routes as Tynda – Komsomolsk and Tomsk – Bely Yar can be considered as achievements. The company managed to find ways to keep other non-alternative routes.
As for commuter transportation, less than RUB 5.9 billion was allocated of the necessary RUB 16.8 billion compensation for unreceived revenue in 2013. Only in 5 regions of Russia does transportation turn a profit: there is no need for subsidies in Moscow, the Moscow region, St Petersburg, the Astrakhan region, and in the Republic of Adygeya. Another eight regions can reach this level, and 10 regions in the Russian Federation are close to being self-sustaining. The situation in the other 50 regions remains difficult.
Under present-day conditions, making commuter transportation break-even and forming a source of revenue for the renewal of trains, platforms, and railway stations is very important. However, every party must have its responsibility when reaching this goal. According to the legislation, regions are to decide on the required traffic, set tariffs available for the population, and compensate for the revenue the transporter failed to receive because of regulated tariffs. The objective of the holding company is to provide high-quality, safe, and timely transportation, and to minimise losses.
According to the three-year federal budget, funding of this activity in 2014 will be about RUB 24.4 billion, and beginning from 2015 subsidies will reduce. RZD offers to keep subsiding commuter transportation for the next two years. Thus, the company and regions will have enough time to make the necessary decisions.
In the new regulatory conditions, and taking into account the present-day economic situation, RZD loses the opportunity to use cross-subsidies for the commuter transportation sector. It should be just taken into consideration. That’s why when approving the agreements for 2014 with the RF regions the boards of directors of railway commuter transport companies recommended that the general directors of the companies should conclude contracts for transport services only for the period and volume, for which there is relevant funding, in order to break-even. ®
By Andrey Lazarev
[~DETAIL_TEXT] => Infrastructure matters
Last year RZD celebrated its 10th anniversary. It’s high time to sum up the results. In the last decade the company invested RUB 4.3 trillion in renewing capital stock, upgrading the railway lines and implementing major infrastructure projects. The operating conditions in 2013 were very tough: the tax burden grew by RUB 11.4 billion, extra fuel expenses increased by RUB 6.9 billion, and revenue fell by RUB 7 billion because of the tariff unification in the framework of the Common Economic Space. Nevertheless, the company found funds to accomplish the objectives set for it by the state.
The average weight of a train grew by 21 tons in comparison with the previous year. More than 23,000 trains weighing over 8,000 tons were dispatched. The average speed was 525 km/day, that of express container trains was 861 km/day. The reliability of cargo delivery increased by 5.5%
“Currently, the company’s operational outlook is focused on maximising the effects of their investment. The reduced investment budget of RZD in 2014 is estimated at RUB 393.1 billion,” says V. Yakunin.
Projects envisaging the attraction of additional funds to infrastructure programmes are actively being promoted on the Russian railway network.
“Despite economic difficulties, the government made two landmark decisions: firstly about buying out RZD’s infrastructure bonds at the expense of the RF Pension Fund, and secondly about using money from the National Welfare Fund to invest in the industry,” says V. Yakunin.
A key source of loan funds in 2013 was the sale of infrastructure bonds with 15-30 year maturity terms at the “inflation+1%” rate. Now, RZD can finance some projects, which earlier were considered as unfinanceable, and could not be carried out with the help of market sources because of the lack of loan funds in roubles for the same period at this rate.
In 2013 the company placed two issues of Eurobonds in Swiss francs and one issue in euros, which was characterised by the lowest fixed rate among all corporate offerings made by issuers from the CIS countries on comparable terms.
In the middle of last November, the Board of Directors of RZD took the landmark decisions that the company would participate in the additional RUB 13.2 billion issue of shares in the Federal Cargo Company OJSC and RUB 5 billion issue of shares in the Federal Passenger Company OJSC.
It is worth taking the experience of adjacent states into consideration. For example, the government of Kazakhstan loaned $200 million to Kazakhstan Temir Zholy for 60 years at an interest rate of 0.01% per annum. The result speaks for itself. “Our colleagues will put into operation up to 1,400 kilometres of new railway tracks in 2014,” notes the President of RZD.
Put in a Good Word for Logistics
The transport and logistics block has a special place in the structure of Russian Railways.
“We strive not only to extend the volume of railway infrastructure renewal, but to increase its efficiency,” says V. Yakunin. Much was done in that area in 2013. In particular, the company managed to expand the number of container trains on the “Transsib in 7 Days” service, which move at speeds of more than 1,050 km/day. The company is carrying out this project in cooperation with TransContainer OJSC and Vostochnaya Stevedoring Company LLC. Freight was transported on the Nakhodka-Vostochnaya – Moscow-Tovarnaya-Palevetskaya route. The companies managed to switch from trial shipments to regular services. Earlier, it took express trains 11-14 days to deliver freight, and ordinary container transportation via the Transsib took 20 days.
Scheduled train traffic increased in 2013 and covered 79 routes. The practice of concluding long-term contracts and providing a “transportation + rolling stock” service (including railway-ferry service if necessary) expanded. Transportation of cargo in refrigerated containers and tank-containers is growing. The RZD Express service is offered instead of transportation in low-capacity containers. The total amount of additional revenue from all these projects exceeded RUB 1 billion in 2013.
According to V. Yakunin, the transfer to a new business model of a transport and logistics company has the same targets: to increase the efficiency of the infrastructure and the competitiveness of the holding company.
The first step in this transformation has been taken – the company gained control over the global logistics operator GEFCO. A year has passed since it became a part of the holding company, and definite success has been achieved. During 2013 consolidated sales from the GEFCO group of companies are estimated at €4 billion (+10.7% in comparison with 2012), and the increase in sales of services provided by GEFCO Russia is supposed to exceed 30%.
Naturally, the geography of RZD’s infrastructure services will expand. “Amid the limited profitability of transportation and limitations on spending funds inside Russia, we have to search for an opportunity to earn revenue in other markets,” explained V. Yakunin.
A number of important agreements were signed in 2013. In order to carry them out, updating the regulatory base for international freight transportation is needed. Mainly, it is targeted at providing efficient transport communication between Europe and Asia with the help of railways. Particularly, networks with railway authorities in the Asian and the Pacific region have been expanded. New steps were made in the framework of joint projects with Chinese, Mongolian, Japanese, Vietnamese, North and South Korean partners.
Last August, a pilot train with coal moved via the Makhalino – Hunchun railway border crossing (from Russia to China). Regular trains are supposed to be launched on this cross-border line in the near future.
The reconstruction of the railway section from the border of Russia to the Rason port – a part of the Trans-Korean Mainline – was completed. RZD and a consortium of South Korean companies (Posco, Hyundai Merchant Marine, Korail) signed a Memorandum of Understanding on November 13. The document envisages the reconstruction of the Khasan – Rason railway line and the creation of a universal transloading terminal in the Rason port.
Last autumn, another Memorandum of Understanding was signed by RZD and the Hungarian railway company MAV Zrt.
Moreover, there are plans to create a new transport corridor from the Pacific via Kazakhstan and Russia with an entry into Ukraine, Slovakia, and Vienna. In 2013, a tender for the design was announced, and contracts for the construction of railway infrastructure in Serbia were signed. Concession agreements are carried out in Armenia. RZD, Vietnamese Railways and the An Vien company signed an agreement of intent to cooperate on the design and construction of railway infrastructure in the southern region of Vietnam. Russian Railways continues to carry out infrastructure development projects on the Kalimantan island in Indonesia. RZD also submitted a bid to the Hellenic Republic Asset Development Fund to participate in international competitions.
The Millionth Passenger
Special attention should be paid to the support and development of passenger transportation. What did the company do in this sector?
In 2013, RZD transported the ten millionth passenger of the “Sapsan” train and the millionth passenger of the “Allegro” train. Passengers got an opportunity to get from Moscow to Veliky Novgorod by “Sapsan” and “Lastochka” trains in just 4.5 hours using the “Lastochka+” single ticket. The timetable of “Sapsan” and “Lastochka” trains envisages the most convenient scheduling connecting services at the Chudovo station.
Such trains were put into operation on the St Petersburg – Chudovo –
Novgorod-on-Volkhov, St Petersburg –
Chudovo – Bologoe, and Moscow – Nizhny Novgorod sections in 2013. One can decide the popularity of such routes judging by the fact that the electric train, consisting of two five-wagon units, was 90% full when departing for its pilot trip.
In spring “Lastochka” trains began to service two intermodal routes: Sochi – Adler – Airport and Kazan – Airport. The Adler – Krasnaya Polyana route was added in November. Next generation rolling stock will be used for servicing passengers during the XXII Olympics and the XI Paralympic Winter Games in Sochi. The opportunity of using “Lastochka” trains on other routes on the Russian railway network is being considered.
Last year double-deck railcars were put into operation on the Moscow – Adler route. This rolling stock is produced by the Tver Wagon Building Plant and is pulled by EP20 locomotives built by a joint venture between Transmashholding and Alstom. As a result of using double-deckers, the ticket price is 30% lower in comparison with the fee for travelling in an ordinary coach.
There is also progress in transportation linked with the Moscow transport hub. This project is supported by the state. Express electric trains was launched on the Moscow – Novoperedelkino route. In the Small Ring of the Moscow Railway project, the reconstruction of the Presnya and Kanatchikovo stations was completed.
Ticketing options were increased. For example, the loyalty programme for passengers was developed, and over 400,000 people have joined it. The practice of using marketing measures expanded as well as the mechanisms of flexible formation of tariffs for the deregulated sector. Sales of train tickets via the Internet grew.
The Federal Passenger Company optimises the route network. It has already helped to reduce the volume of loss-making transportation. “We had to take such measures, because the company had to match the amount of state subsidies, which had been allocated,” says V. Yakunin.
Thanks to the help of a number of the RF regions, several new trains were put into operation on the network. For example, in Ingushetia they expressed their readiness to financially contribute to organising long-distance passenger transportation.
The RF Transport Ministry understands the social importance of such transportation and does all it can to keep them available for a large number of citizens. Taking into account subsidies allocated for long-distance transportation, the activity of the Federal Passenger Company remains lossless. Saving such socially important routes as Tynda – Komsomolsk and Tomsk – Bely Yar can be considered as achievements. The company managed to find ways to keep other non-alternative routes.
As for commuter transportation, less than RUB 5.9 billion was allocated of the necessary RUB 16.8 billion compensation for unreceived revenue in 2013. Only in 5 regions of Russia does transportation turn a profit: there is no need for subsidies in Moscow, the Moscow region, St Petersburg, the Astrakhan region, and in the Republic of Adygeya. Another eight regions can reach this level, and 10 regions in the Russian Federation are close to being self-sustaining. The situation in the other 50 regions remains difficult.
Under present-day conditions, making commuter transportation break-even and forming a source of revenue for the renewal of trains, platforms, and railway stations is very important. However, every party must have its responsibility when reaching this goal. According to the legislation, regions are to decide on the required traffic, set tariffs available for the population, and compensate for the revenue the transporter failed to receive because of regulated tariffs. The objective of the holding company is to provide high-quality, safe, and timely transportation, and to minimise losses.
According to the three-year federal budget, funding of this activity in 2014 will be about RUB 24.4 billion, and beginning from 2015 subsidies will reduce. RZD offers to keep subsiding commuter transportation for the next two years. Thus, the company and regions will have enough time to make the necessary decisions.
In the new regulatory conditions, and taking into account the present-day economic situation, RZD loses the opportunity to use cross-subsidies for the commuter transportation sector. It should be just taken into consideration. That’s why when approving the agreements for 2014 with the RF regions the boards of directors of railway commuter transport companies recommended that the general directors of the companies should conclude contracts for transport services only for the period and volume, for which there is relevant funding, in order to break-even. ®
By Andrey Lazarev
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[DETAIL_TEXT] => Infrastructure matters
Last year RZD celebrated its 10th anniversary. It’s high time to sum up the results. In the last decade the company invested RUB 4.3 trillion in renewing capital stock, upgrading the railway lines and implementing major infrastructure projects. The operating conditions in 2013 were very tough: the tax burden grew by RUB 11.4 billion, extra fuel expenses increased by RUB 6.9 billion, and revenue fell by RUB 7 billion because of the tariff unification in the framework of the Common Economic Space. Nevertheless, the company found funds to accomplish the objectives set for it by the state.
The average weight of a train grew by 21 tons in comparison with the previous year. More than 23,000 trains weighing over 8,000 tons were dispatched. The average speed was 525 km/day, that of express container trains was 861 km/day. The reliability of cargo delivery increased by 5.5%
“Currently, the company’s operational outlook is focused on maximising the effects of their investment. The reduced investment budget of RZD in 2014 is estimated at RUB 393.1 billion,” says V. Yakunin.
Projects envisaging the attraction of additional funds to infrastructure programmes are actively being promoted on the Russian railway network.
“Despite economic difficulties, the government made two landmark decisions: firstly about buying out RZD’s infrastructure bonds at the expense of the RF Pension Fund, and secondly about using money from the National Welfare Fund to invest in the industry,” says V. Yakunin.
A key source of loan funds in 2013 was the sale of infrastructure bonds with 15-30 year maturity terms at the “inflation+1%” rate. Now, RZD can finance some projects, which earlier were considered as unfinanceable, and could not be carried out with the help of market sources because of the lack of loan funds in roubles for the same period at this rate.
In 2013 the company placed two issues of Eurobonds in Swiss francs and one issue in euros, which was characterised by the lowest fixed rate among all corporate offerings made by issuers from the CIS countries on comparable terms.
In the middle of last November, the Board of Directors of RZD took the landmark decisions that the company would participate in the additional RUB 13.2 billion issue of shares in the Federal Cargo Company OJSC and RUB 5 billion issue of shares in the Federal Passenger Company OJSC.
It is worth taking the experience of adjacent states into consideration. For example, the government of Kazakhstan loaned $200 million to Kazakhstan Temir Zholy for 60 years at an interest rate of 0.01% per annum. The result speaks for itself. “Our colleagues will put into operation up to 1,400 kilometres of new railway tracks in 2014,” notes the President of RZD.
Put in a Good Word for Logistics
The transport and logistics block has a special place in the structure of Russian Railways.
“We strive not only to extend the volume of railway infrastructure renewal, but to increase its efficiency,” says V. Yakunin. Much was done in that area in 2013. In particular, the company managed to expand the number of container trains on the “Transsib in 7 Days” service, which move at speeds of more than 1,050 km/day. The company is carrying out this project in cooperation with TransContainer OJSC and Vostochnaya Stevedoring Company LLC. Freight was transported on the Nakhodka-Vostochnaya – Moscow-Tovarnaya-Palevetskaya route. The companies managed to switch from trial shipments to regular services. Earlier, it took express trains 11-14 days to deliver freight, and ordinary container transportation via the Transsib took 20 days.
Scheduled train traffic increased in 2013 and covered 79 routes. The practice of concluding long-term contracts and providing a “transportation + rolling stock” service (including railway-ferry service if necessary) expanded. Transportation of cargo in refrigerated containers and tank-containers is growing. The RZD Express service is offered instead of transportation in low-capacity containers. The total amount of additional revenue from all these projects exceeded RUB 1 billion in 2013.
According to V. Yakunin, the transfer to a new business model of a transport and logistics company has the same targets: to increase the efficiency of the infrastructure and the competitiveness of the holding company.
The first step in this transformation has been taken – the company gained control over the global logistics operator GEFCO. A year has passed since it became a part of the holding company, and definite success has been achieved. During 2013 consolidated sales from the GEFCO group of companies are estimated at €4 billion (+10.7% in comparison with 2012), and the increase in sales of services provided by GEFCO Russia is supposed to exceed 30%.
Naturally, the geography of RZD’s infrastructure services will expand. “Amid the limited profitability of transportation and limitations on spending funds inside Russia, we have to search for an opportunity to earn revenue in other markets,” explained V. Yakunin.
A number of important agreements were signed in 2013. In order to carry them out, updating the regulatory base for international freight transportation is needed. Mainly, it is targeted at providing efficient transport communication between Europe and Asia with the help of railways. Particularly, networks with railway authorities in the Asian and the Pacific region have been expanded. New steps were made in the framework of joint projects with Chinese, Mongolian, Japanese, Vietnamese, North and South Korean partners.
Last August, a pilot train with coal moved via the Makhalino – Hunchun railway border crossing (from Russia to China). Regular trains are supposed to be launched on this cross-border line in the near future.
The reconstruction of the railway section from the border of Russia to the Rason port – a part of the Trans-Korean Mainline – was completed. RZD and a consortium of South Korean companies (Posco, Hyundai Merchant Marine, Korail) signed a Memorandum of Understanding on November 13. The document envisages the reconstruction of the Khasan – Rason railway line and the creation of a universal transloading terminal in the Rason port.
Last autumn, another Memorandum of Understanding was signed by RZD and the Hungarian railway company MAV Zrt.
Moreover, there are plans to create a new transport corridor from the Pacific via Kazakhstan and Russia with an entry into Ukraine, Slovakia, and Vienna. In 2013, a tender for the design was announced, and contracts for the construction of railway infrastructure in Serbia were signed. Concession agreements are carried out in Armenia. RZD, Vietnamese Railways and the An Vien company signed an agreement of intent to cooperate on the design and construction of railway infrastructure in the southern region of Vietnam. Russian Railways continues to carry out infrastructure development projects on the Kalimantan island in Indonesia. RZD also submitted a bid to the Hellenic Republic Asset Development Fund to participate in international competitions.
The Millionth Passenger
Special attention should be paid to the support and development of passenger transportation. What did the company do in this sector?
In 2013, RZD transported the ten millionth passenger of the “Sapsan” train and the millionth passenger of the “Allegro” train. Passengers got an opportunity to get from Moscow to Veliky Novgorod by “Sapsan” and “Lastochka” trains in just 4.5 hours using the “Lastochka+” single ticket. The timetable of “Sapsan” and “Lastochka” trains envisages the most convenient scheduling connecting services at the Chudovo station.
Such trains were put into operation on the St Petersburg – Chudovo –
Novgorod-on-Volkhov, St Petersburg –
Chudovo – Bologoe, and Moscow – Nizhny Novgorod sections in 2013. One can decide the popularity of such routes judging by the fact that the electric train, consisting of two five-wagon units, was 90% full when departing for its pilot trip.
In spring “Lastochka” trains began to service two intermodal routes: Sochi – Adler – Airport and Kazan – Airport. The Adler – Krasnaya Polyana route was added in November. Next generation rolling stock will be used for servicing passengers during the XXII Olympics and the XI Paralympic Winter Games in Sochi. The opportunity of using “Lastochka” trains on other routes on the Russian railway network is being considered.
Last year double-deck railcars were put into operation on the Moscow – Adler route. This rolling stock is produced by the Tver Wagon Building Plant and is pulled by EP20 locomotives built by a joint venture between Transmashholding and Alstom. As a result of using double-deckers, the ticket price is 30% lower in comparison with the fee for travelling in an ordinary coach.
There is also progress in transportation linked with the Moscow transport hub. This project is supported by the state. Express electric trains was launched on the Moscow – Novoperedelkino route. In the Small Ring of the Moscow Railway project, the reconstruction of the Presnya and Kanatchikovo stations was completed.
Ticketing options were increased. For example, the loyalty programme for passengers was developed, and over 400,000 people have joined it. The practice of using marketing measures expanded as well as the mechanisms of flexible formation of tariffs for the deregulated sector. Sales of train tickets via the Internet grew.
The Federal Passenger Company optimises the route network. It has already helped to reduce the volume of loss-making transportation. “We had to take such measures, because the company had to match the amount of state subsidies, which had been allocated,” says V. Yakunin.
Thanks to the help of a number of the RF regions, several new trains were put into operation on the network. For example, in Ingushetia they expressed their readiness to financially contribute to organising long-distance passenger transportation.
The RF Transport Ministry understands the social importance of such transportation and does all it can to keep them available for a large number of citizens. Taking into account subsidies allocated for long-distance transportation, the activity of the Federal Passenger Company remains lossless. Saving such socially important routes as Tynda – Komsomolsk and Tomsk – Bely Yar can be considered as achievements. The company managed to find ways to keep other non-alternative routes.
As for commuter transportation, less than RUB 5.9 billion was allocated of the necessary RUB 16.8 billion compensation for unreceived revenue in 2013. Only in 5 regions of Russia does transportation turn a profit: there is no need for subsidies in Moscow, the Moscow region, St Petersburg, the Astrakhan region, and in the Republic of Adygeya. Another eight regions can reach this level, and 10 regions in the Russian Federation are close to being self-sustaining. The situation in the other 50 regions remains difficult.
Under present-day conditions, making commuter transportation break-even and forming a source of revenue for the renewal of trains, platforms, and railway stations is very important. However, every party must have its responsibility when reaching this goal. According to the legislation, regions are to decide on the required traffic, set tariffs available for the population, and compensate for the revenue the transporter failed to receive because of regulated tariffs. The objective of the holding company is to provide high-quality, safe, and timely transportation, and to minimise losses.
According to the three-year federal budget, funding of this activity in 2014 will be about RUB 24.4 billion, and beginning from 2015 subsidies will reduce. RZD offers to keep subsiding commuter transportation for the next two years. Thus, the company and regions will have enough time to make the necessary decisions.
In the new regulatory conditions, and taking into account the present-day economic situation, RZD loses the opportunity to use cross-subsidies for the commuter transportation sector. It should be just taken into consideration. That’s why when approving the agreements for 2014 with the RF regions the boards of directors of railway commuter transport companies recommended that the general directors of the companies should conclude contracts for transport services only for the period and volume, for which there is relevant funding, in order to break-even. ®
By Andrey Lazarev
[~DETAIL_TEXT] => Infrastructure matters
Last year RZD celebrated its 10th anniversary. It’s high time to sum up the results. In the last decade the company invested RUB 4.3 trillion in renewing capital stock, upgrading the railway lines and implementing major infrastructure projects. The operating conditions in 2013 were very tough: the tax burden grew by RUB 11.4 billion, extra fuel expenses increased by RUB 6.9 billion, and revenue fell by RUB 7 billion because of the tariff unification in the framework of the Common Economic Space. Nevertheless, the company found funds to accomplish the objectives set for it by the state.
The average weight of a train grew by 21 tons in comparison with the previous year. More than 23,000 trains weighing over 8,000 tons were dispatched. The average speed was 525 km/day, that of express container trains was 861 km/day. The reliability of cargo delivery increased by 5.5%
“Currently, the company’s operational outlook is focused on maximising the effects of their investment. The reduced investment budget of RZD in 2014 is estimated at RUB 393.1 billion,” says V. Yakunin.
Projects envisaging the attraction of additional funds to infrastructure programmes are actively being promoted on the Russian railway network.
“Despite economic difficulties, the government made two landmark decisions: firstly about buying out RZD’s infrastructure bonds at the expense of the RF Pension Fund, and secondly about using money from the National Welfare Fund to invest in the industry,” says V. Yakunin.
A key source of loan funds in 2013 was the sale of infrastructure bonds with 15-30 year maturity terms at the “inflation+1%” rate. Now, RZD can finance some projects, which earlier were considered as unfinanceable, and could not be carried out with the help of market sources because of the lack of loan funds in roubles for the same period at this rate.
In 2013 the company placed two issues of Eurobonds in Swiss francs and one issue in euros, which was characterised by the lowest fixed rate among all corporate offerings made by issuers from the CIS countries on comparable terms.
In the middle of last November, the Board of Directors of RZD took the landmark decisions that the company would participate in the additional RUB 13.2 billion issue of shares in the Federal Cargo Company OJSC and RUB 5 billion issue of shares in the Federal Passenger Company OJSC.
It is worth taking the experience of adjacent states into consideration. For example, the government of Kazakhstan loaned $200 million to Kazakhstan Temir Zholy for 60 years at an interest rate of 0.01% per annum. The result speaks for itself. “Our colleagues will put into operation up to 1,400 kilometres of new railway tracks in 2014,” notes the President of RZD.
Put in a Good Word for Logistics
The transport and logistics block has a special place in the structure of Russian Railways.
“We strive not only to extend the volume of railway infrastructure renewal, but to increase its efficiency,” says V. Yakunin. Much was done in that area in 2013. In particular, the company managed to expand the number of container trains on the “Transsib in 7 Days” service, which move at speeds of more than 1,050 km/day. The company is carrying out this project in cooperation with TransContainer OJSC and Vostochnaya Stevedoring Company LLC. Freight was transported on the Nakhodka-Vostochnaya – Moscow-Tovarnaya-Palevetskaya route. The companies managed to switch from trial shipments to regular services. Earlier, it took express trains 11-14 days to deliver freight, and ordinary container transportation via the Transsib took 20 days.
Scheduled train traffic increased in 2013 and covered 79 routes. The practice of concluding long-term contracts and providing a “transportation + rolling stock” service (including railway-ferry service if necessary) expanded. Transportation of cargo in refrigerated containers and tank-containers is growing. The RZD Express service is offered instead of transportation in low-capacity containers. The total amount of additional revenue from all these projects exceeded RUB 1 billion in 2013.
According to V. Yakunin, the transfer to a new business model of a transport and logistics company has the same targets: to increase the efficiency of the infrastructure and the competitiveness of the holding company.
The first step in this transformation has been taken – the company gained control over the global logistics operator GEFCO. A year has passed since it became a part of the holding company, and definite success has been achieved. During 2013 consolidated sales from the GEFCO group of companies are estimated at €4 billion (+10.7% in comparison with 2012), and the increase in sales of services provided by GEFCO Russia is supposed to exceed 30%.
Naturally, the geography of RZD’s infrastructure services will expand. “Amid the limited profitability of transportation and limitations on spending funds inside Russia, we have to search for an opportunity to earn revenue in other markets,” explained V. Yakunin.
A number of important agreements were signed in 2013. In order to carry them out, updating the regulatory base for international freight transportation is needed. Mainly, it is targeted at providing efficient transport communication between Europe and Asia with the help of railways. Particularly, networks with railway authorities in the Asian and the Pacific region have been expanded. New steps were made in the framework of joint projects with Chinese, Mongolian, Japanese, Vietnamese, North and South Korean partners.
Last August, a pilot train with coal moved via the Makhalino – Hunchun railway border crossing (from Russia to China). Regular trains are supposed to be launched on this cross-border line in the near future.
The reconstruction of the railway section from the border of Russia to the Rason port – a part of the Trans-Korean Mainline – was completed. RZD and a consortium of South Korean companies (Posco, Hyundai Merchant Marine, Korail) signed a Memorandum of Understanding on November 13. The document envisages the reconstruction of the Khasan – Rason railway line and the creation of a universal transloading terminal in the Rason port.
Last autumn, another Memorandum of Understanding was signed by RZD and the Hungarian railway company MAV Zrt.
Moreover, there are plans to create a new transport corridor from the Pacific via Kazakhstan and Russia with an entry into Ukraine, Slovakia, and Vienna. In 2013, a tender for the design was announced, and contracts for the construction of railway infrastructure in Serbia were signed. Concession agreements are carried out in Armenia. RZD, Vietnamese Railways and the An Vien company signed an agreement of intent to cooperate on the design and construction of railway infrastructure in the southern region of Vietnam. Russian Railways continues to carry out infrastructure development projects on the Kalimantan island in Indonesia. RZD also submitted a bid to the Hellenic Republic Asset Development Fund to participate in international competitions.
The Millionth Passenger
Special attention should be paid to the support and development of passenger transportation. What did the company do in this sector?
In 2013, RZD transported the ten millionth passenger of the “Sapsan” train and the millionth passenger of the “Allegro” train. Passengers got an opportunity to get from Moscow to Veliky Novgorod by “Sapsan” and “Lastochka” trains in just 4.5 hours using the “Lastochka+” single ticket. The timetable of “Sapsan” and “Lastochka” trains envisages the most convenient scheduling connecting services at the Chudovo station.
Such trains were put into operation on the St Petersburg – Chudovo –
Novgorod-on-Volkhov, St Petersburg –
Chudovo – Bologoe, and Moscow – Nizhny Novgorod sections in 2013. One can decide the popularity of such routes judging by the fact that the electric train, consisting of two five-wagon units, was 90% full when departing for its pilot trip.
In spring “Lastochka” trains began to service two intermodal routes: Sochi – Adler – Airport and Kazan – Airport. The Adler – Krasnaya Polyana route was added in November. Next generation rolling stock will be used for servicing passengers during the XXII Olympics and the XI Paralympic Winter Games in Sochi. The opportunity of using “Lastochka” trains on other routes on the Russian railway network is being considered.
Last year double-deck railcars were put into operation on the Moscow – Adler route. This rolling stock is produced by the Tver Wagon Building Plant and is pulled by EP20 locomotives built by a joint venture between Transmashholding and Alstom. As a result of using double-deckers, the ticket price is 30% lower in comparison with the fee for travelling in an ordinary coach.
There is also progress in transportation linked with the Moscow transport hub. This project is supported by the state. Express electric trains was launched on the Moscow – Novoperedelkino route. In the Small Ring of the Moscow Railway project, the reconstruction of the Presnya and Kanatchikovo stations was completed.
Ticketing options were increased. For example, the loyalty programme for passengers was developed, and over 400,000 people have joined it. The practice of using marketing measures expanded as well as the mechanisms of flexible formation of tariffs for the deregulated sector. Sales of train tickets via the Internet grew.
The Federal Passenger Company optimises the route network. It has already helped to reduce the volume of loss-making transportation. “We had to take such measures, because the company had to match the amount of state subsidies, which had been allocated,” says V. Yakunin.
Thanks to the help of a number of the RF regions, several new trains were put into operation on the network. For example, in Ingushetia they expressed their readiness to financially contribute to organising long-distance passenger transportation.
The RF Transport Ministry understands the social importance of such transportation and does all it can to keep them available for a large number of citizens. Taking into account subsidies allocated for long-distance transportation, the activity of the Federal Passenger Company remains lossless. Saving such socially important routes as Tynda – Komsomolsk and Tomsk – Bely Yar can be considered as achievements. The company managed to find ways to keep other non-alternative routes.
As for commuter transportation, less than RUB 5.9 billion was allocated of the necessary RUB 16.8 billion compensation for unreceived revenue in 2013. Only in 5 regions of Russia does transportation turn a profit: there is no need for subsidies in Moscow, the Moscow region, St Petersburg, the Astrakhan region, and in the Republic of Adygeya. Another eight regions can reach this level, and 10 regions in the Russian Federation are close to being self-sustaining. The situation in the other 50 regions remains difficult.
Under present-day conditions, making commuter transportation break-even and forming a source of revenue for the renewal of trains, platforms, and railway stations is very important. However, every party must have its responsibility when reaching this goal. According to the legislation, regions are to decide on the required traffic, set tariffs available for the population, and compensate for the revenue the transporter failed to receive because of regulated tariffs. The objective of the holding company is to provide high-quality, safe, and timely transportation, and to minimise losses.
According to the three-year federal budget, funding of this activity in 2014 will be about RUB 24.4 billion, and beginning from 2015 subsidies will reduce. RZD offers to keep subsiding commuter transportation for the next two years. Thus, the company and regions will have enough time to make the necessary decisions.
In the new regulatory conditions, and taking into account the present-day economic situation, RZD loses the opportunity to use cross-subsidies for the commuter transportation sector. It should be just taken into consideration. That’s why when approving the agreements for 2014 with the RF regions the boards of directors of railway commuter transport companies recommended that the general directors of the companies should conclude contracts for transport services only for the period and volume, for which there is relevant funding, in order to break-even. ®
By Andrey Lazarev
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The global market is changing rapidly, bringing a lot of new tools for efficient business strategy. Whether it be gigantic ships, ticketing technologies, iPad apps or safety systems – all these innovations are making modern logistics processes faster and more reliable.
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[DETAIL_TEXT] => The global market is changing rapidly, bringing a lot of new tools for efficient business strategy. Whether it be gigantic ships, ticketing technologies, iPad apps or safety systems – all these innovations are making modern logistics processes faster and more reliable.
But not all the companies today dare to get rid of their expireware and to try something new – for example, to become paperless. The reality is that about 15 million tons of paper is used every year for work usage. And if we talk about the logistics supply chain, add here usage of cardboard boxes. As the world moves towards green logistics and sustainability becomes an important factor for success, it is not too late to pay attention to IT solutions – such as iPad applications for logistics work. Integration of all the devices and electronic documentation available – which today may seem daunting, but tomorrow when EU directives concerning sustainable development become stricter, those playing the environmentally friendly game from the start will be the winners (pp. 30-31).
Definitely, the logistics of tomorrow will be completely influenced by IT, and cloud solutions are also going to play a very important part here. Currently it is a very young technology – less than 5 years old, but, according to experts, a very promising one. The best thing about it is tracking – the ability to follow the route of cargo and to be sure it will arrive in time (pp. 27-29).
Time. The most important factor for winning clients for logistics companies. Engineers are working hard to make transport faster. Is 1,220 kph enough? The super high speed train project was designed by the founder of the SpaceX company, Elon Musk. This passenger train, which looks like a capsule, travels along a reduced-pressure tube. There is also a concept for such a freight train, which can transport cars (pp. 42-43).
There are a lot of critics of this invention. As, for example, for gigantic Triple-E container ships. It’s hard to collect enough cargo for them, it’s hard to provide maintenance and not all the terminals can accommodate them. But this technology is the future, because of increasing traffic and once again –
implementation of green logistics principles. Big ships use less fuel per 1TEU and, therefore, have less impact on the environment (pp. 32-33).
The future, when all these things become common, is not so far away. But let’s come back to the present. While thinking about reliability and time, logistics companies always face the problem of choosing the most profitable route. It’s an open secret that the most popular means for delivery is a truck, but the cheapest one is a ship. Unfortunately, the railways are losing (pp. 24-26).
If we talk about shipping to Russia, the situation is clear. Even if rail is the most reliable means of transport, as you can avoid traffic jams at the border, the level of bureaucracy is very high. According to foreigners working in Russia, you need only four documents to ship a container in Germany, but 10 documents for the same work in Russia. But even this serious obstacle can’t stop logistics companies from coming to this country. CEOs as usual are sharing their opinions on our pages and giving advice to those who would like to expand their cargo flows (pp. 56-57).
Follow the trends and find out more transport analytics in a newer, sleeker and more informative format in the first issue of RZD-Partner International Magazine in 2014.
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But not all the companies today dare to get rid of their expireware and to try something new – for example, to become paperless. The reality is that about 15 million tons of paper is used every year for work usage. And if we talk about the logistics supply chain, add here usage of cardboard boxes. As the world moves towards green logistics and sustainability becomes an important factor for success, it is not too late to pay attention to IT solutions – such as iPad applications for logistics work. Integration of all the devices and electronic documentation available – which today may seem daunting, but tomorrow when EU directives concerning sustainable development become stricter, those playing the environmentally friendly game from the start will be the winners (pp. 30-31).
Definitely, the logistics of tomorrow will be completely influenced by IT, and cloud solutions are also going to play a very important part here. Currently it is a very young technology – less than 5 years old, but, according to experts, a very promising one. The best thing about it is tracking – the ability to follow the route of cargo and to be sure it will arrive in time (pp. 27-29).
Time. The most important factor for winning clients for logistics companies. Engineers are working hard to make transport faster. Is 1,220 kph enough? The super high speed train project was designed by the founder of the SpaceX company, Elon Musk. This passenger train, which looks like a capsule, travels along a reduced-pressure tube. There is also a concept for such a freight train, which can transport cars (pp. 42-43).
There are a lot of critics of this invention. As, for example, for gigantic Triple-E container ships. It’s hard to collect enough cargo for them, it’s hard to provide maintenance and not all the terminals can accommodate them. But this technology is the future, because of increasing traffic and once again –
implementation of green logistics principles. Big ships use less fuel per 1TEU and, therefore, have less impact on the environment (pp. 32-33).
The future, when all these things become common, is not so far away. But let’s come back to the present. While thinking about reliability and time, logistics companies always face the problem of choosing the most profitable route. It’s an open secret that the most popular means for delivery is a truck, but the cheapest one is a ship. Unfortunately, the railways are losing (pp. 24-26).
If we talk about shipping to Russia, the situation is clear. Even if rail is the most reliable means of transport, as you can avoid traffic jams at the border, the level of bureaucracy is very high. According to foreigners working in Russia, you need only four documents to ship a container in Germany, but 10 documents for the same work in Russia. But even this serious obstacle can’t stop logistics companies from coming to this country. CEOs as usual are sharing their opinions on our pages and giving advice to those who would like to expand their cargo flows (pp. 56-57).
Follow the trends and find out more transport analytics in a newer, sleeker and more informative format in the first issue of RZD-Partner International Magazine in 2014.
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[DETAIL_TEXT] => The global market is changing rapidly, bringing a lot of new tools for efficient business strategy. Whether it be gigantic ships, ticketing technologies, iPad apps or safety systems – all these innovations are making modern logistics processes faster and more reliable.
But not all the companies today dare to get rid of their expireware and to try something new – for example, to become paperless. The reality is that about 15 million tons of paper is used every year for work usage. And if we talk about the logistics supply chain, add here usage of cardboard boxes. As the world moves towards green logistics and sustainability becomes an important factor for success, it is not too late to pay attention to IT solutions – such as iPad applications for logistics work. Integration of all the devices and electronic documentation available – which today may seem daunting, but tomorrow when EU directives concerning sustainable development become stricter, those playing the environmentally friendly game from the start will be the winners (pp. 30-31).
Definitely, the logistics of tomorrow will be completely influenced by IT, and cloud solutions are also going to play a very important part here. Currently it is a very young technology – less than 5 years old, but, according to experts, a very promising one. The best thing about it is tracking – the ability to follow the route of cargo and to be sure it will arrive in time (pp. 27-29).
Time. The most important factor for winning clients for logistics companies. Engineers are working hard to make transport faster. Is 1,220 kph enough? The super high speed train project was designed by the founder of the SpaceX company, Elon Musk. This passenger train, which looks like a capsule, travels along a reduced-pressure tube. There is also a concept for such a freight train, which can transport cars (pp. 42-43).
There are a lot of critics of this invention. As, for example, for gigantic Triple-E container ships. It’s hard to collect enough cargo for them, it’s hard to provide maintenance and not all the terminals can accommodate them. But this technology is the future, because of increasing traffic and once again –
implementation of green logistics principles. Big ships use less fuel per 1TEU and, therefore, have less impact on the environment (pp. 32-33).
The future, when all these things become common, is not so far away. But let’s come back to the present. While thinking about reliability and time, logistics companies always face the problem of choosing the most profitable route. It’s an open secret that the most popular means for delivery is a truck, but the cheapest one is a ship. Unfortunately, the railways are losing (pp. 24-26).
If we talk about shipping to Russia, the situation is clear. Even if rail is the most reliable means of transport, as you can avoid traffic jams at the border, the level of bureaucracy is very high. According to foreigners working in Russia, you need only four documents to ship a container in Germany, but 10 documents for the same work in Russia. But even this serious obstacle can’t stop logistics companies from coming to this country. CEOs as usual are sharing their opinions on our pages and giving advice to those who would like to expand their cargo flows (pp. 56-57).
Follow the trends and find out more transport analytics in a newer, sleeker and more informative format in the first issue of RZD-Partner International Magazine in 2014.
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But not all the companies today dare to get rid of their expireware and to try something new – for example, to become paperless. The reality is that about 15 million tons of paper is used every year for work usage. And if we talk about the logistics supply chain, add here usage of cardboard boxes. As the world moves towards green logistics and sustainability becomes an important factor for success, it is not too late to pay attention to IT solutions – such as iPad applications for logistics work. Integration of all the devices and electronic documentation available – which today may seem daunting, but tomorrow when EU directives concerning sustainable development become stricter, those playing the environmentally friendly game from the start will be the winners (pp. 30-31).
Definitely, the logistics of tomorrow will be completely influenced by IT, and cloud solutions are also going to play a very important part here. Currently it is a very young technology – less than 5 years old, but, according to experts, a very promising one. The best thing about it is tracking – the ability to follow the route of cargo and to be sure it will arrive in time (pp. 27-29).
Time. The most important factor for winning clients for logistics companies. Engineers are working hard to make transport faster. Is 1,220 kph enough? The super high speed train project was designed by the founder of the SpaceX company, Elon Musk. This passenger train, which looks like a capsule, travels along a reduced-pressure tube. There is also a concept for such a freight train, which can transport cars (pp. 42-43).
There are a lot of critics of this invention. As, for example, for gigantic Triple-E container ships. It’s hard to collect enough cargo for them, it’s hard to provide maintenance and not all the terminals can accommodate them. But this technology is the future, because of increasing traffic and once again –
implementation of green logistics principles. Big ships use less fuel per 1TEU and, therefore, have less impact on the environment (pp. 32-33).
The future, when all these things become common, is not so far away. But let’s come back to the present. While thinking about reliability and time, logistics companies always face the problem of choosing the most profitable route. It’s an open secret that the most popular means for delivery is a truck, but the cheapest one is a ship. Unfortunately, the railways are losing (pp. 24-26).
If we talk about shipping to Russia, the situation is clear. Even if rail is the most reliable means of transport, as you can avoid traffic jams at the border, the level of bureaucracy is very high. According to foreigners working in Russia, you need only four documents to ship a container in Germany, but 10 documents for the same work in Russia. But even this serious obstacle can’t stop logistics companies from coming to this country. CEOs as usual are sharing their opinions on our pages and giving advice to those who would like to expand their cargo flows (pp. 56-57).
Follow the trends and find out more transport analytics in a newer, sleeker and more informative format in the first issue of RZD-Partner International Magazine in 2014.
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