III КВАРТАЛ 2022Г. - 55 баллов
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Matter of prestige
Nowadays one of the main targets for Russia is to finish the negotiations about its joining the WTO. To become a member of the world's largest "trade club" is to improve the conditions of activities for the Russian exporters on the foreign markets; moreover, it can speed up the modernization of the Russian economy by creating a competitive environment and activate the modern technologies of import. The main arguments for the country's joining the organization are the following: Russian enterprises will have an access to cheaper foreign utilities and raw materials, and Russian people will have an access to cheaper foreign goods and services, which will increase their standard of living. However, a serious preparation is needed to integrate into the world's economic community. Joining the WTO, Russia will have to assume obligations concerning the further liberalization of foreign service providers' access to the Russian market, which can strengthen their positions. The experience of the Baltic states and that of the Eastern European countries showed that with the integration of the national and the international markets, natives lose their positions in many sectors of economy. Russia can also face it when joining the WTO. Besides, according to the vice-president of the Russian Transport Academy Felix Katsman, almost all Russian transport sectors are technically outdated, with the exception of the pipeline one. For example, in the road haulage sphere, many trucks do not meet the European standards of internal pressure of a wheel and the ecological safety requirements. As for the river transport, its condition is very poor: often there are shipwrecks; as a rule, the reason for them is that the tankers, barges and dry cargo fleet are technically worn. The age of most vessels is 45-50 years.
Who wants what from Russia
According to the head of the Trade Negotiations Department of the Ministry of Economic Development and Trade Maxim Medvedkov, the USA, Panama, Australia, and Switzerland make demands to the Russian transport sphere. The United States demand that Russia carried out reforms in the air transport sphere to improve the quality of repair and maintenance of airplanes; Panama demands the reforms in the sea transport sphere; Switzerland - in the logistic services sphere, and Australia - in the pipeline transport sphere. However, M.Medvedkov said, all the demands can be satisfied, and the Trade Negotiations Department plans to come to an agreement with all the countries by the end of 2006. After it, the document is to be ratified by the Trade Committee of the WTO and by the European Parliament, and 30 days later Russia will become a "formal member" of the WTO. The "formal membership" will be prolonged until 2008, and the country is to use this period of transition to strengthen its economic, industrial and transport sectors.
At the same time, Maxim Medvedkov stated, Russia has already agreed its positions with a number of "very difficult partners". The most exigent member of the WTO is, as it has been expected, the European Union, which raised a lot of demands to the Russian road haulage, railway and river transport spheres, in particular to the tariffs on domestic and foreign transportation. Besides, it raised demands in the sea transport sphere concerning charter rates, intercalculations, and vessels repair and maintenance. In the air transport sphere, the EU has demanded to hold a number of changes in marketing and airplane sales.
The European Union and Japan have raised demands concerning the sea transport and the value added services for all the transport modes; the Southern Korea's demands concerned the sea transport sphere and the system of intercalculations when providing reciprocal services at the air transport (the latter was also demanded by Norway). Singapore, China and Norway also raised their demands to the Russian sea transport sphere. At the same time, China demanded that Russia removed all the restrictions for international road transportations and for value added services for all the transport modes.
Russia has successfully fulfilled all the demands mentioned above, Maxim Medvedkov said. Besides, all the demands of the WTO members in the sea transportation sphere and value added services, such as loading/unloading works, sea agencies, cargo warehousing and container transportation, have been approved by the legislative branch. In the river transport sphere, Russia has assumed obligations concerning some value added services, such as cleaning and disinfection of vessels, as well as insects control.
It was very difficult to reach compromise in the air transportation sphere. Thus, after negotiations with the WTO members, Russia assumed additional obligations concerning repair and maintenance of airplanes with a quota of 25% for the companies established before Russia's joining the WTO. The same applies to air tickets and computer reservation systems sales and marketing. The Department of the State Policy in the Civil Aviation Sphere, Geodesy and Cartography of the RF Ministry of Transport believe that the Russian air industry needs budget support in the framework of Russia's joining the WTO. The demand to zero the dues for the foreign airplanes and air equipment envisaged by the list of demands to Russia's joining the WTO can significantly decrease the competitiveness of the Russian air industry. According to the forecasts of the RF Ministry of Transport, the passenger flow will increase from 29.5 mln people to 56 mln people by 2010, and half of the air fleet will be written off by then, because of the end of its life time.
In the road haulages sphere Russia assumed additional obligations concerning domestic transportation (at the same time, international road transportation will be regulated in accordance with bilateral agreements) and improvement of road transport technical maintenance and repair. Foreign companies will have an access to the Russian domestic transportation market only if they establish a Russian juridical person.
As for the services, such as cargo handling, warehouses and storehouses constructing, and freight transport agencies establishing, foreign companies will also have to establish a Russian juridical person to operate on the territory of Russia (but for passenger transport agencies).
At the same time, M.Medvedkov reported, the Russian negotiators managed to retain some reserves from the most favourable conditions in several most important sectors of the transport sphere. Thus, the existing system of bilateral international relations will be the same in the international road haulage, river and railway transportation, as well as in the foreign companies' access to the Russian inner water ways. Besides, Russian shipping companies will have preferential conditions for access to sea transportation in the domestic market even after Russia's joining the WTO.
Why does Russia need the WTO?
The officials of the RF Ministry of Economic Development and Trade believe, Russia's becoming a full member of the WTO will promote an active development of the transport sphere. In particular, among other advantages of being a member of the main world trade organization, there are: expansion of the Russian transport-economic networks with economically developed states; attraction of foreign investments into the Russian infrastructure, which is necessary for the transport sector; improvement of the transport services quality and reduction of expenses. One more important point will be the regulation of foreign countries' discriminating attitude to Russia. The foreign supporters of joining the WTO hope, Russia's being a member of the organization will prevent the European countries from implementing in unilateral order "protective" dues on import of grain, steel, pipes and other goods, which can compete with the same types of goods produced in the countries members of the WTO (nowadays there are about 90 such limitations). Besides, the foreign market players hope, this will provide growth of the most favourable conditions in Russia and improve the terms of transit transportation via the country's territory. The advantage of joining the WTO for Russia is the opportunity for the native carriers to use transport and logistic and terminal systems of other countries, as well as their experience of services and information systems meeting the modern norms and quality standards. If there are any trade conflicts or arguments, the membership can be an instrument to solve the problem in the framework of the WTO mechanisms. As it has been already mentioned above, there are some important disadvantages of the Russia's joining the WTO. That is why nowadays the Russian transport companies should get ready to non-residents' entering the market and strengthen their positions in the domestic market to be strong competitors to the international business and to keep leadership in the national transport sphere.
Meanwhile, the authorities of the RF Ministry of Economic Development and Trade believe, not everything is so bad for Russia. To such questions as whether universal rules of trade relations among countries are necessary in the WTO, whether there will be domestic rules in the Russian Federation, and whether the intergovernmental agreements about international and domestic transportation will be acting, the officials of the Ministry answer that "in this country it is possible to work according to mixed rules, as well as in other states of the world". The thing is that all the states joining the WTO are to fix their obligations, which are to meet their acting legislation.
ILYA SVERDLOV
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Matter of prestige
Nowadays one of the main targets for Russia is to finish the negotiations about its joining the WTO. To become a member of the world's largest "trade club" is to improve the conditions of activities for the Russian exporters on the foreign markets; moreover, it can speed up the modernization of the Russian economy by creating a competitive environment and activate the modern technologies of import. The main arguments for the country's joining the organization are the following: Russian enterprises will have an access to cheaper foreign utilities and raw materials, and Russian people will have an access to cheaper foreign goods and services, which will increase their standard of living. However, a serious preparation is needed to integrate into the world's economic community. Joining the WTO, Russia will have to assume obligations concerning the further liberalization of foreign service providers' access to the Russian market, which can strengthen their positions. The experience of the Baltic states and that of the Eastern European countries showed that with the integration of the national and the international markets, natives lose their positions in many sectors of economy. Russia can also face it when joining the WTO. Besides, according to the vice-president of the Russian Transport Academy Felix Katsman, almost all Russian transport sectors are technically outdated, with the exception of the pipeline one. For example, in the road haulage sphere, many trucks do not meet the European standards of internal pressure of a wheel and the ecological safety requirements. As for the river transport, its condition is very poor: often there are shipwrecks; as a rule, the reason for them is that the tankers, barges and dry cargo fleet are technically worn. The age of most vessels is 45-50 years.
Who wants what from Russia
According to the head of the Trade Negotiations Department of the Ministry of Economic Development and Trade Maxim Medvedkov, the USA, Panama, Australia, and Switzerland make demands to the Russian transport sphere. The United States demand that Russia carried out reforms in the air transport sphere to improve the quality of repair and maintenance of airplanes; Panama demands the reforms in the sea transport sphere; Switzerland - in the logistic services sphere, and Australia - in the pipeline transport sphere. However, M.Medvedkov said, all the demands can be satisfied, and the Trade Negotiations Department plans to come to an agreement with all the countries by the end of 2006. After it, the document is to be ratified by the Trade Committee of the WTO and by the European Parliament, and 30 days later Russia will become a "formal member" of the WTO. The "formal membership" will be prolonged until 2008, and the country is to use this period of transition to strengthen its economic, industrial and transport sectors.
At the same time, Maxim Medvedkov stated, Russia has already agreed its positions with a number of "very difficult partners". The most exigent member of the WTO is, as it has been expected, the European Union, which raised a lot of demands to the Russian road haulage, railway and river transport spheres, in particular to the tariffs on domestic and foreign transportation. Besides, it raised demands in the sea transport sphere concerning charter rates, intercalculations, and vessels repair and maintenance. In the air transport sphere, the EU has demanded to hold a number of changes in marketing and airplane sales.
The European Union and Japan have raised demands concerning the sea transport and the value added services for all the transport modes; the Southern Korea's demands concerned the sea transport sphere and the system of intercalculations when providing reciprocal services at the air transport (the latter was also demanded by Norway). Singapore, China and Norway also raised their demands to the Russian sea transport sphere. At the same time, China demanded that Russia removed all the restrictions for international road transportations and for value added services for all the transport modes.
Russia has successfully fulfilled all the demands mentioned above, Maxim Medvedkov said. Besides, all the demands of the WTO members in the sea transportation sphere and value added services, such as loading/unloading works, sea agencies, cargo warehousing and container transportation, have been approved by the legislative branch. In the river transport sphere, Russia has assumed obligations concerning some value added services, such as cleaning and disinfection of vessels, as well as insects control.
It was very difficult to reach compromise in the air transportation sphere. Thus, after negotiations with the WTO members, Russia assumed additional obligations concerning repair and maintenance of airplanes with a quota of 25% for the companies established before Russia's joining the WTO. The same applies to air tickets and computer reservation systems sales and marketing. The Department of the State Policy in the Civil Aviation Sphere, Geodesy and Cartography of the RF Ministry of Transport believe that the Russian air industry needs budget support in the framework of Russia's joining the WTO. The demand to zero the dues for the foreign airplanes and air equipment envisaged by the list of demands to Russia's joining the WTO can significantly decrease the competitiveness of the Russian air industry. According to the forecasts of the RF Ministry of Transport, the passenger flow will increase from 29.5 mln people to 56 mln people by 2010, and half of the air fleet will be written off by then, because of the end of its life time.
In the road haulages sphere Russia assumed additional obligations concerning domestic transportation (at the same time, international road transportation will be regulated in accordance with bilateral agreements) and improvement of road transport technical maintenance and repair. Foreign companies will have an access to the Russian domestic transportation market only if they establish a Russian juridical person.
As for the services, such as cargo handling, warehouses and storehouses constructing, and freight transport agencies establishing, foreign companies will also have to establish a Russian juridical person to operate on the territory of Russia (but for passenger transport agencies).
At the same time, M.Medvedkov reported, the Russian negotiators managed to retain some reserves from the most favourable conditions in several most important sectors of the transport sphere. Thus, the existing system of bilateral international relations will be the same in the international road haulage, river and railway transportation, as well as in the foreign companies' access to the Russian inner water ways. Besides, Russian shipping companies will have preferential conditions for access to sea transportation in the domestic market even after Russia's joining the WTO.
Why does Russia need the WTO?
The officials of the RF Ministry of Economic Development and Trade believe, Russia's becoming a full member of the WTO will promote an active development of the transport sphere. In particular, among other advantages of being a member of the main world trade organization, there are: expansion of the Russian transport-economic networks with economically developed states; attraction of foreign investments into the Russian infrastructure, which is necessary for the transport sector; improvement of the transport services quality and reduction of expenses. One more important point will be the regulation of foreign countries' discriminating attitude to Russia. The foreign supporters of joining the WTO hope, Russia's being a member of the organization will prevent the European countries from implementing in unilateral order "protective" dues on import of grain, steel, pipes and other goods, which can compete with the same types of goods produced in the countries members of the WTO (nowadays there are about 90 such limitations). Besides, the foreign market players hope, this will provide growth of the most favourable conditions in Russia and improve the terms of transit transportation via the country's territory. The advantage of joining the WTO for Russia is the opportunity for the native carriers to use transport and logistic and terminal systems of other countries, as well as their experience of services and information systems meeting the modern norms and quality standards. If there are any trade conflicts or arguments, the membership can be an instrument to solve the problem in the framework of the WTO mechanisms. As it has been already mentioned above, there are some important disadvantages of the Russia's joining the WTO. That is why nowadays the Russian transport companies should get ready to non-residents' entering the market and strengthen their positions in the domestic market to be strong competitors to the international business and to keep leadership in the national transport sphere.
Meanwhile, the authorities of the RF Ministry of Economic Development and Trade believe, not everything is so bad for Russia. To such questions as whether universal rules of trade relations among countries are necessary in the WTO, whether there will be domestic rules in the Russian Federation, and whether the intergovernmental agreements about international and domestic transportation will be acting, the officials of the Ministry answer that "in this country it is possible to work according to mixed rules, as well as in other states of the world". The thing is that all the states joining the WTO are to fix their obligations, which are to meet their acting legislation.
ILYA SVERDLOV
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Matter of prestige
Nowadays one of the main targets for Russia is to finish the negotiations about its joining the WTO. To become a member of the world's largest "trade club" is to improve the conditions of activities for the Russian exporters on the foreign markets; moreover, it can speed up the modernization of the Russian economy by creating a competitive environment and activate the modern technologies of import. The main arguments for the country's joining the organization are the following: Russian enterprises will have an access to cheaper foreign utilities and raw materials, and Russian people will have an access to cheaper foreign goods and services, which will increase their standard of living. However, a serious preparation is needed to integrate into the world's economic community. Joining the WTO, Russia will have to assume obligations concerning the further liberalization of foreign service providers' access to the Russian market, which can strengthen their positions. The experience of the Baltic states and that of the Eastern European countries showed that with the integration of the national and the international markets, natives lose their positions in many sectors of economy. Russia can also face it when joining the WTO. Besides, according to the vice-president of the Russian Transport Academy Felix Katsman, almost all Russian transport sectors are technically outdated, with the exception of the pipeline one. For example, in the road haulage sphere, many trucks do not meet the European standards of internal pressure of a wheel and the ecological safety requirements. As for the river transport, its condition is very poor: often there are shipwrecks; as a rule, the reason for them is that the tankers, barges and dry cargo fleet are technically worn. The age of most vessels is 45-50 years.
Who wants what from Russia
According to the head of the Trade Negotiations Department of the Ministry of Economic Development and Trade Maxim Medvedkov, the USA, Panama, Australia, and Switzerland make demands to the Russian transport sphere. The United States demand that Russia carried out reforms in the air transport sphere to improve the quality of repair and maintenance of airplanes; Panama demands the reforms in the sea transport sphere; Switzerland - in the logistic services sphere, and Australia - in the pipeline transport sphere. However, M.Medvedkov said, all the demands can be satisfied, and the Trade Negotiations Department plans to come to an agreement with all the countries by the end of 2006. After it, the document is to be ratified by the Trade Committee of the WTO and by the European Parliament, and 30 days later Russia will become a "formal member" of the WTO. The "formal membership" will be prolonged until 2008, and the country is to use this period of transition to strengthen its economic, industrial and transport sectors.
At the same time, Maxim Medvedkov stated, Russia has already agreed its positions with a number of "very difficult partners". The most exigent member of the WTO is, as it has been expected, the European Union, which raised a lot of demands to the Russian road haulage, railway and river transport spheres, in particular to the tariffs on domestic and foreign transportation. Besides, it raised demands in the sea transport sphere concerning charter rates, intercalculations, and vessels repair and maintenance. In the air transport sphere, the EU has demanded to hold a number of changes in marketing and airplane sales.
The European Union and Japan have raised demands concerning the sea transport and the value added services for all the transport modes; the Southern Korea's demands concerned the sea transport sphere and the system of intercalculations when providing reciprocal services at the air transport (the latter was also demanded by Norway). Singapore, China and Norway also raised their demands to the Russian sea transport sphere. At the same time, China demanded that Russia removed all the restrictions for international road transportations and for value added services for all the transport modes.
Russia has successfully fulfilled all the demands mentioned above, Maxim Medvedkov said. Besides, all the demands of the WTO members in the sea transportation sphere and value added services, such as loading/unloading works, sea agencies, cargo warehousing and container transportation, have been approved by the legislative branch. In the river transport sphere, Russia has assumed obligations concerning some value added services, such as cleaning and disinfection of vessels, as well as insects control.
It was very difficult to reach compromise in the air transportation sphere. Thus, after negotiations with the WTO members, Russia assumed additional obligations concerning repair and maintenance of airplanes with a quota of 25% for the companies established before Russia's joining the WTO. The same applies to air tickets and computer reservation systems sales and marketing. The Department of the State Policy in the Civil Aviation Sphere, Geodesy and Cartography of the RF Ministry of Transport believe that the Russian air industry needs budget support in the framework of Russia's joining the WTO. The demand to zero the dues for the foreign airplanes and air equipment envisaged by the list of demands to Russia's joining the WTO can significantly decrease the competitiveness of the Russian air industry. According to the forecasts of the RF Ministry of Transport, the passenger flow will increase from 29.5 mln people to 56 mln people by 2010, and half of the air fleet will be written off by then, because of the end of its life time.
In the road haulages sphere Russia assumed additional obligations concerning domestic transportation (at the same time, international road transportation will be regulated in accordance with bilateral agreements) and improvement of road transport technical maintenance and repair. Foreign companies will have an access to the Russian domestic transportation market only if they establish a Russian juridical person.
As for the services, such as cargo handling, warehouses and storehouses constructing, and freight transport agencies establishing, foreign companies will also have to establish a Russian juridical person to operate on the territory of Russia (but for passenger transport agencies).
At the same time, M.Medvedkov reported, the Russian negotiators managed to retain some reserves from the most favourable conditions in several most important sectors of the transport sphere. Thus, the existing system of bilateral international relations will be the same in the international road haulage, river and railway transportation, as well as in the foreign companies' access to the Russian inner water ways. Besides, Russian shipping companies will have preferential conditions for access to sea transportation in the domestic market even after Russia's joining the WTO.
Why does Russia need the WTO?
The officials of the RF Ministry of Economic Development and Trade believe, Russia's becoming a full member of the WTO will promote an active development of the transport sphere. In particular, among other advantages of being a member of the main world trade organization, there are: expansion of the Russian transport-economic networks with economically developed states; attraction of foreign investments into the Russian infrastructure, which is necessary for the transport sector; improvement of the transport services quality and reduction of expenses. One more important point will be the regulation of foreign countries' discriminating attitude to Russia. The foreign supporters of joining the WTO hope, Russia's being a member of the organization will prevent the European countries from implementing in unilateral order "protective" dues on import of grain, steel, pipes and other goods, which can compete with the same types of goods produced in the countries members of the WTO (nowadays there are about 90 such limitations). Besides, the foreign market players hope, this will provide growth of the most favourable conditions in Russia and improve the terms of transit transportation via the country's territory. The advantage of joining the WTO for Russia is the opportunity for the native carriers to use transport and logistic and terminal systems of other countries, as well as their experience of services and information systems meeting the modern norms and quality standards. If there are any trade conflicts or arguments, the membership can be an instrument to solve the problem in the framework of the WTO mechanisms. As it has been already mentioned above, there are some important disadvantages of the Russia's joining the WTO. That is why nowadays the Russian transport companies should get ready to non-residents' entering the market and strengthen their positions in the domestic market to be strong competitors to the international business and to keep leadership in the national transport sphere.
Meanwhile, the authorities of the RF Ministry of Economic Development and Trade believe, not everything is so bad for Russia. To such questions as whether universal rules of trade relations among countries are necessary in the WTO, whether there will be domestic rules in the Russian Federation, and whether the intergovernmental agreements about international and domestic transportation will be acting, the officials of the Ministry answer that "in this country it is possible to work according to mixed rules, as well as in other states of the world". The thing is that all the states joining the WTO are to fix their obligations, which are to meet their acting legislation.
ILYA SVERDLOV
[~DETAIL_TEXT] =>
Matter of prestige
Nowadays one of the main targets for Russia is to finish the negotiations about its joining the WTO. To become a member of the world's largest "trade club" is to improve the conditions of activities for the Russian exporters on the foreign markets; moreover, it can speed up the modernization of the Russian economy by creating a competitive environment and activate the modern technologies of import. The main arguments for the country's joining the organization are the following: Russian enterprises will have an access to cheaper foreign utilities and raw materials, and Russian people will have an access to cheaper foreign goods and services, which will increase their standard of living. However, a serious preparation is needed to integrate into the world's economic community. Joining the WTO, Russia will have to assume obligations concerning the further liberalization of foreign service providers' access to the Russian market, which can strengthen their positions. The experience of the Baltic states and that of the Eastern European countries showed that with the integration of the national and the international markets, natives lose their positions in many sectors of economy. Russia can also face it when joining the WTO. Besides, according to the vice-president of the Russian Transport Academy Felix Katsman, almost all Russian transport sectors are technically outdated, with the exception of the pipeline one. For example, in the road haulage sphere, many trucks do not meet the European standards of internal pressure of a wheel and the ecological safety requirements. As for the river transport, its condition is very poor: often there are shipwrecks; as a rule, the reason for them is that the tankers, barges and dry cargo fleet are technically worn. The age of most vessels is 45-50 years.
Who wants what from Russia
According to the head of the Trade Negotiations Department of the Ministry of Economic Development and Trade Maxim Medvedkov, the USA, Panama, Australia, and Switzerland make demands to the Russian transport sphere. The United States demand that Russia carried out reforms in the air transport sphere to improve the quality of repair and maintenance of airplanes; Panama demands the reforms in the sea transport sphere; Switzerland - in the logistic services sphere, and Australia - in the pipeline transport sphere. However, M.Medvedkov said, all the demands can be satisfied, and the Trade Negotiations Department plans to come to an agreement with all the countries by the end of 2006. After it, the document is to be ratified by the Trade Committee of the WTO and by the European Parliament, and 30 days later Russia will become a "formal member" of the WTO. The "formal membership" will be prolonged until 2008, and the country is to use this period of transition to strengthen its economic, industrial and transport sectors.
At the same time, Maxim Medvedkov stated, Russia has already agreed its positions with a number of "very difficult partners". The most exigent member of the WTO is, as it has been expected, the European Union, which raised a lot of demands to the Russian road haulage, railway and river transport spheres, in particular to the tariffs on domestic and foreign transportation. Besides, it raised demands in the sea transport sphere concerning charter rates, intercalculations, and vessels repair and maintenance. In the air transport sphere, the EU has demanded to hold a number of changes in marketing and airplane sales.
The European Union and Japan have raised demands concerning the sea transport and the value added services for all the transport modes; the Southern Korea's demands concerned the sea transport sphere and the system of intercalculations when providing reciprocal services at the air transport (the latter was also demanded by Norway). Singapore, China and Norway also raised their demands to the Russian sea transport sphere. At the same time, China demanded that Russia removed all the restrictions for international road transportations and for value added services for all the transport modes.
Russia has successfully fulfilled all the demands mentioned above, Maxim Medvedkov said. Besides, all the demands of the WTO members in the sea transportation sphere and value added services, such as loading/unloading works, sea agencies, cargo warehousing and container transportation, have been approved by the legislative branch. In the river transport sphere, Russia has assumed obligations concerning some value added services, such as cleaning and disinfection of vessels, as well as insects control.
It was very difficult to reach compromise in the air transportation sphere. Thus, after negotiations with the WTO members, Russia assumed additional obligations concerning repair and maintenance of airplanes with a quota of 25% for the companies established before Russia's joining the WTO. The same applies to air tickets and computer reservation systems sales and marketing. The Department of the State Policy in the Civil Aviation Sphere, Geodesy and Cartography of the RF Ministry of Transport believe that the Russian air industry needs budget support in the framework of Russia's joining the WTO. The demand to zero the dues for the foreign airplanes and air equipment envisaged by the list of demands to Russia's joining the WTO can significantly decrease the competitiveness of the Russian air industry. According to the forecasts of the RF Ministry of Transport, the passenger flow will increase from 29.5 mln people to 56 mln people by 2010, and half of the air fleet will be written off by then, because of the end of its life time.
In the road haulages sphere Russia assumed additional obligations concerning domestic transportation (at the same time, international road transportation will be regulated in accordance with bilateral agreements) and improvement of road transport technical maintenance and repair. Foreign companies will have an access to the Russian domestic transportation market only if they establish a Russian juridical person.
As for the services, such as cargo handling, warehouses and storehouses constructing, and freight transport agencies establishing, foreign companies will also have to establish a Russian juridical person to operate on the territory of Russia (but for passenger transport agencies).
At the same time, M.Medvedkov reported, the Russian negotiators managed to retain some reserves from the most favourable conditions in several most important sectors of the transport sphere. Thus, the existing system of bilateral international relations will be the same in the international road haulage, river and railway transportation, as well as in the foreign companies' access to the Russian inner water ways. Besides, Russian shipping companies will have preferential conditions for access to sea transportation in the domestic market even after Russia's joining the WTO.
Why does Russia need the WTO?
The officials of the RF Ministry of Economic Development and Trade believe, Russia's becoming a full member of the WTO will promote an active development of the transport sphere. In particular, among other advantages of being a member of the main world trade organization, there are: expansion of the Russian transport-economic networks with economically developed states; attraction of foreign investments into the Russian infrastructure, which is necessary for the transport sector; improvement of the transport services quality and reduction of expenses. One more important point will be the regulation of foreign countries' discriminating attitude to Russia. The foreign supporters of joining the WTO hope, Russia's being a member of the organization will prevent the European countries from implementing in unilateral order "protective" dues on import of grain, steel, pipes and other goods, which can compete with the same types of goods produced in the countries members of the WTO (nowadays there are about 90 such limitations). Besides, the foreign market players hope, this will provide growth of the most favourable conditions in Russia and improve the terms of transit transportation via the country's territory. The advantage of joining the WTO for Russia is the opportunity for the native carriers to use transport and logistic and terminal systems of other countries, as well as their experience of services and information systems meeting the modern norms and quality standards. If there are any trade conflicts or arguments, the membership can be an instrument to solve the problem in the framework of the WTO mechanisms. As it has been already mentioned above, there are some important disadvantages of the Russia's joining the WTO. That is why nowadays the Russian transport companies should get ready to non-residents' entering the market and strengthen their positions in the domestic market to be strong competitors to the international business and to keep leadership in the national transport sphere.
Meanwhile, the authorities of the RF Ministry of Economic Development and Trade believe, not everything is so bad for Russia. To such questions as whether universal rules of trade relations among countries are necessary in the WTO, whether there will be domestic rules in the Russian Federation, and whether the intergovernmental agreements about international and domestic transportation will be acting, the officials of the Ministry answer that "in this country it is possible to work according to mixed rules, as well as in other states of the world". The thing is that all the states joining the WTO are to fix their obligations, which are to meet their acting legislation.
ILYA SVERDLOV
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Following the Law
At present the Federal Tariff Service (FTS) controls domestic and export-import OAO RZD tariffs, while the RF Transport Ministry regulates transit.
At the same time the RF legislation envisages staged transfer to tariffs deregulation for competitive transportation segments within the structural reform of railway transport that has been unfolding since 2001.
The Federal Bill "On natural monopolies" reads as follows "According to the programme of demonopolization of railway transportation market approved by the RF Government, the sector is to switch from regulating the activities of natural monopolies subjects within railway transportation to regulating the above stated activities within supplying services on railway transport infrastructure exploiting". The Bill directly states that any restriction of economically grounded transition of the natural monopolies towards a competitive market is unacceptable.
However, there are some problems due to the fact that the mechanism of tariffs deregulation itself is interpreted differently. The Programme of the reform states that tariffs liberalization is defined by the body regulating natural monopolies, i.e. the Federal Tariff Service. Moreover, the FTS Board unites representatives of all the adjacent government bodies. Still, the regulating bodies themselves referring to the above citation from the Bill "On natural monopolies" believe that a Government decision on demonopolization of the railway transportation market should be made.
In any case, both the format and the level of the relevant decision on tariffs deregulation could be defined immediately, if only the regulators were sure this step is to be made. However, they still doubt the time has come to make such a decision.
Proposals
The only transport market subject persistent in its demands to make a decision on tariffs deregulation is OAO RZD. On the whole, the situation dates back to 2002, when Viktor Khristenko, then vice-premier of the RF Government, authorized the adjacent bodies to develop a mechanism of competitive sectors separation from railway transportation.
That year the RF Ministry of Railways controlling railways as a part of its centralized economic system presented a methodology "Conditions and mechanism of competitive segments of transport services market separation from natural monopoly". At the beginning of 2003 the RF Ministry of Railways brought in a project of tariffs deregulation for oil and products transportation. If that project had been approved, the issue of oil tariffs liberalization would have become an inseparable part of the general process. However, the project presented was considered as improperly developed.
On October 1, 2003 the RF Ministry of Railways was re-organized into OAO RZD and the deregulation problem was put aside. Nevertheless, starting from last year, railway men resumed their efforts. In his first report on July 15, Vladimir Yakunin, the new OAO RZD president appointed in June 2005, said, "We must increase the transparency of our activities, provide equal access to the infrastructure defined by the RF Government normative Bills and, on this basis, make the car component of the tariff deregulated".
At present OAO RZD proposals cover several areas. The first one is the separation of competitive segments in the transport services market from their natural monopoly, with a total tariffs liberalization to follow. The second one envisages OAO RZD becoming authorized to set tariffs within the framework of their utmost level determined by the Tariff Regulations. That leads to the opportunity to make quick decisions on tariffs decrease considering market conditions, or implement partial deregulation.
ОАО RZD believes that now about 17 competitive transport services market segments can be separated at least for partial deregulation, with setting up maximum permissible tariff levels. These segments are cargo transportation combined with water transportation during navigation; oil and products, chemical and mineral fertilizers, containerized cargo transportation etc.From OAO RZD's point of view, it plays a crucially important role for oil liquid bulk transportation. Besides competition with oil pipeline and water transport, competitive relations within the railway transportation sector itself are also developing. Nowadays some quite big operator companies possessing their own cars and locomotives are involved into oil transportation. In the near future they plan to turn into independent carriers.
According to OAO RZD, in 2003 the car park of the company transported 54% of oil and products, while private park made 46%. In 2004 the situation changed and private park share amounted to as much as 58.1% of oil cargo, considering the fact that state and private rolling stock proportions are practically equal today.
As opposed to OAO RZD, private companies are not natural monopolies subjects and that is the reason why they get the favorable opportunity indicated by Tariff Regulation № 10-01 effective from August 2003, which states that they can decrease the car component for the cargo owner. On average, for all the cargoes it amounts to 15% and is slightly higher for oil cargos. This creates advantageous conditions for private companies, in comparison with OAO RZD. Moreover, traditionally better services provided by private business, as compared to the state, cause the obvious tendency of high-profit oil liquid bulk flow to private carriers. In general, one third of all the cargoes is transported by private rolling stock.
Objections
So what is the Federal Tariff Service reaction to the proposal of deregulating the car component, for example, in oil bulk transportation sector? The FTS notified OAO RZD such a step is seen as untimely.
Vitaly Yevdokimenko, FTS deputy head, commented on the situation, "We share the opinion that we should promote tariff deregulation for competitive segments of the market. But now certain risks are quite probable and that prevents us from approving this decision. These risks should be taken in consideration, despite the fact that the share of cargo transported by private rolling stock and other modes of transport is quite impressive now".
What exactly these risks that stop deregulation are? According to Mr. Yevdokimenko, the first group concerns the absence of separate accounting for profits and expenditures in OAO RZD activities. This prevents experts from assessing the level of the company's crossed subsiding. "We can't carry on with the reform comfortably until the activities of the company become financial and economically transparent", the FTS representative stated.
The second point is that OAO RZD carries out some uncontrolled activities, such as services on private rolling stock repair and maintenance, spare parts manufacturing, servicing cars to be loaded etc. Considering the fact that these activities directly influence the activities of private carriers in terms of conditions for equal competition, a decision on tariffs deregulation is only possible to be made if OAO RZD gets restructured. "That is why the major condition is to accomplish steps determined by the Programme of structural reform in respect of separating economically certain competitive types of activities performed by OAO RZD", V.Yevdokimenko noted.
In his opinion, more factors can be mentioned. For example, the absence of separated car component in the tariffs of the third paragraph in the Tariff Regulation № 10-01 which taxes export-import cargo transportation.
The Ministry of Economic Development and Trade is called to perform the part of mediator in the market changes. However, here is what Yevgeny Mikhailov, Deputy Head of the tariffs state regulation and infrastructure reforms Department, thinks. He says, "We don't object to the car component tariff deregulation for oil and products transportation. But this has to be done under the condition of accounting for all the expenditures, including those on car repair and maintenance and cars empty-run, in a separate balance. Simultaneously, these expenditures must be excluded from regulated tariffs level".
Thus, it is clear that the major stumbling block on the way to railway tariffs deregulation is the absence of separate balances for different types of activities in OAO RZD. On December 29, 2004, the RF Government issued Bill № 871 "On formation of separate accounting for different types of activities in OAO RZD". It reads that in the annual report for 2004 and further on the company must provide information on profits, expenditures and results of its financial-economic activities, based on the following categories: cargo transportation, infrastructure employment and maintenance, locomotive haulage services, long-distance passenger transportation, suburban transportation, rolling stock repair, infrastructure objects construction, rolling stock repair, scientific-research activities, social sector, and other activities.
ОАО RZD realizes the obvious necessity of building up an almost totally new financial-economic corporate system pretty well. For example, at one of the company's recent sessions Boris Lapidus, OAO RZD seniour vice president on strategic planning and development, noted, "We must provide an opportunity to reflect the nature of our goods market conjuncture in tariffs by endowing OAO RZD with the right to change them flexibly within the framework of their utmost level. To put it in practice we must solve the problem of profits and expenditures separate accounting. In this respect we've already made a great deal".
However, the above-mentioned process is moving slowly. In June Mikhail Beskhmelnitsyn, an auditor of the RF Counting Chamber, stated, when speaking at one of the round-tables: "The auditing of OAO RZD showed that the final scheme for transparent and proved expenditures accounting for definite types of activities has not been worked out yet. First of all, this applies to cargo and passenger transportation".
"No" to Dumping!
However, a question can arise why not let decrease the tariffs at least? This seems to be what the railway men are trying to obtain in the first place. They want their rates decrease, not rise. Here is the answer given by Mikhail Kozlovsky, Association of railway transport rolling stock carriers and operators, "If we let OAO RZD decrease their tariffs for transportation of certain cargoes even in competitive segments, the company could set up initially dumping tariffs. This way the corporation will make private carriers go bankrupt and then, forcing them to sell their rolling stock for nothing, bring all the high-profitable cargo transportation back under its own control, consequently taking the tariffs up to their economically grounded level".
According to private business representatives, such ideas have already revealed their validity this year. In spring OAO RZD directed a proposal to the Federal Tariff Service on seasonal decreasing tariffs for oil and products transportation during the summer navigation from Povolzhye region to the Russian and foreign ports. The target was to attract additional oil bulk volumes, including those normally carried by inland water transport. At the same time, if a traditional gap between river and railway tariffs has been kept at the level of 10-20% for the last two years, then discounts offered by railways amounted to 30%, and even 60% for certain directions.
The reaction of river transport companies was hard to underrate. In particular, Andrey Kleimenov, "Vologotanker" JSC vice-president, said to The RZD-Partner International, "Railway men lobbing the introduction of seasonal tariffs are, in fact, breaking the rules of fair competition. We are sure the RF Government will not allow this gradual destruction of oil water transport in view of the state's interests, as the application of these discounts will necessarily lead to the death of tanker "river-sea" transportation".
Private railway operator companies expressed ideas close to the above-mentioned. The Association of railway transport rolling stock carriers and operators even presented an official claim at the Parliament readings on the railway transport reform. In particular, it said that measures offered by OAO RZD could result in "discrimination and bankruptcy of private companies". As a result, the Federal Tariff Service didn't support OAO RZD's proposal and didn't let the oil products transportation tariff drop.
Logic of Reform Programme and Economic Subject
Thus, the major demand of the regulating bodies for tariffs regulation is separate accounting. Still, one should confess it is a quite complicated task to carry out such a procedure. The matter is different types of activities are interrelated and mixed up even on the level of linear enterprises, not to mention OAO RZD departments, i.e. railways.
In this respect the most rational, though quite painful, way is property separation between activities, first, into departments with separate financial balances, and then into independent affiliates. Tariffs for the services of such companies should be fixed by means of contracts. The so-called infrastructure component, i.e. the part they will pay to OAO RZD for the use of its infrastructure, will remain regulated.
Strictly speaking, the Programme of structural reform of railway transport envisages this way of development for the second and especially the third stage. The document states that the organization-legislative separation of intermodal (container) and refrigerator cargo transportation, as well as suburban passenger transportation, from OAO RZD should be initiated at the second stage of the reform. Moreover, the share of rolling stock operated by private carriers will enlarge and reach over 50% by the third stage.
The third stage of the reform is aimed at "the creation of a developed competitive market in railway transportation". The Programme points out that "the expediency of total organizational separation between infrastructure and transportation should be estimated, if the conditions allowing such separation have been achieved at this stage". At the same time it is planned that "the most part of the cargo car park (60%)" will be transferred to private owners.
Besides the official approval of separating such OAO RZD affiliates as "Transcontainer" (container transportation) and "Refservice" (perishable goods transportation), the idea of applying the same procedure to the oil transportation company was also brought to consideration. In this respect V.Yakunin formulated one of the key tasks for the company, i.e. to solve all procedure and organization issues concerning the establishment of the company's affiliates within the high-profit cargo transportation segment, where the company's share tends to decrease. Such a position can help overcome barriers in certain sectors on the tariffs deregulation development and give space for market competitive relations.
Interesting Variant
Currently, companies-operators have started to separate off of OAO RZD, as previously planned. And the start is an interesting one. OAO RZD is to establish subsidiaries in co-operation with large private operators. In October, the Board of OAO RZD approved the launch of a company that will specialize in profitable cargoes transportation(see "Consolidating Advantages",p. 60). This will be done on equal footing with New Forwarding Company OJSC. The new company will transport oil and products, produce of the ferrous metallurgy, iron ore, coal and other cargoes in its rolling-stock.
Other operators are also interested in launching joint companies together with OAO RZD. Thus, one would think, for some sectors tariff deregulation will become a reality in 2006.
ANDREY GURYEV
[~DETAIL_TEXT] =>
Following the Law
At present the Federal Tariff Service (FTS) controls domestic and export-import OAO RZD tariffs, while the RF Transport Ministry regulates transit.
At the same time the RF legislation envisages staged transfer to tariffs deregulation for competitive transportation segments within the structural reform of railway transport that has been unfolding since 2001.
The Federal Bill "On natural monopolies" reads as follows "According to the programme of demonopolization of railway transportation market approved by the RF Government, the sector is to switch from regulating the activities of natural monopolies subjects within railway transportation to regulating the above stated activities within supplying services on railway transport infrastructure exploiting". The Bill directly states that any restriction of economically grounded transition of the natural monopolies towards a competitive market is unacceptable.
However, there are some problems due to the fact that the mechanism of tariffs deregulation itself is interpreted differently. The Programme of the reform states that tariffs liberalization is defined by the body regulating natural monopolies, i.e. the Federal Tariff Service. Moreover, the FTS Board unites representatives of all the adjacent government bodies. Still, the regulating bodies themselves referring to the above citation from the Bill "On natural monopolies" believe that a Government decision on demonopolization of the railway transportation market should be made.
In any case, both the format and the level of the relevant decision on tariffs deregulation could be defined immediately, if only the regulators were sure this step is to be made. However, they still doubt the time has come to make such a decision.
Proposals
The only transport market subject persistent in its demands to make a decision on tariffs deregulation is OAO RZD. On the whole, the situation dates back to 2002, when Viktor Khristenko, then vice-premier of the RF Government, authorized the adjacent bodies to develop a mechanism of competitive sectors separation from railway transportation.
That year the RF Ministry of Railways controlling railways as a part of its centralized economic system presented a methodology "Conditions and mechanism of competitive segments of transport services market separation from natural monopoly". At the beginning of 2003 the RF Ministry of Railways brought in a project of tariffs deregulation for oil and products transportation. If that project had been approved, the issue of oil tariffs liberalization would have become an inseparable part of the general process. However, the project presented was considered as improperly developed.
On October 1, 2003 the RF Ministry of Railways was re-organized into OAO RZD and the deregulation problem was put aside. Nevertheless, starting from last year, railway men resumed their efforts. In his first report on July 15, Vladimir Yakunin, the new OAO RZD president appointed in June 2005, said, "We must increase the transparency of our activities, provide equal access to the infrastructure defined by the RF Government normative Bills and, on this basis, make the car component of the tariff deregulated".
At present OAO RZD proposals cover several areas. The first one is the separation of competitive segments in the transport services market from their natural monopoly, with a total tariffs liberalization to follow. The second one envisages OAO RZD becoming authorized to set tariffs within the framework of their utmost level determined by the Tariff Regulations. That leads to the opportunity to make quick decisions on tariffs decrease considering market conditions, or implement partial deregulation.
ОАО RZD believes that now about 17 competitive transport services market segments can be separated at least for partial deregulation, with setting up maximum permissible tariff levels. These segments are cargo transportation combined with water transportation during navigation; oil and products, chemical and mineral fertilizers, containerized cargo transportation etc.From OAO RZD's point of view, it plays a crucially important role for oil liquid bulk transportation. Besides competition with oil pipeline and water transport, competitive relations within the railway transportation sector itself are also developing. Nowadays some quite big operator companies possessing their own cars and locomotives are involved into oil transportation. In the near future they plan to turn into independent carriers.
According to OAO RZD, in 2003 the car park of the company transported 54% of oil and products, while private park made 46%. In 2004 the situation changed and private park share amounted to as much as 58.1% of oil cargo, considering the fact that state and private rolling stock proportions are practically equal today.
As opposed to OAO RZD, private companies are not natural monopolies subjects and that is the reason why they get the favorable opportunity indicated by Tariff Regulation № 10-01 effective from August 2003, which states that they can decrease the car component for the cargo owner. On average, for all the cargoes it amounts to 15% and is slightly higher for oil cargos. This creates advantageous conditions for private companies, in comparison with OAO RZD. Moreover, traditionally better services provided by private business, as compared to the state, cause the obvious tendency of high-profit oil liquid bulk flow to private carriers. In general, one third of all the cargoes is transported by private rolling stock.
Objections
So what is the Federal Tariff Service reaction to the proposal of deregulating the car component, for example, in oil bulk transportation sector? The FTS notified OAO RZD such a step is seen as untimely.
Vitaly Yevdokimenko, FTS deputy head, commented on the situation, "We share the opinion that we should promote tariff deregulation for competitive segments of the market. But now certain risks are quite probable and that prevents us from approving this decision. These risks should be taken in consideration, despite the fact that the share of cargo transported by private rolling stock and other modes of transport is quite impressive now".
What exactly these risks that stop deregulation are? According to Mr. Yevdokimenko, the first group concerns the absence of separate accounting for profits and expenditures in OAO RZD activities. This prevents experts from assessing the level of the company's crossed subsiding. "We can't carry on with the reform comfortably until the activities of the company become financial and economically transparent", the FTS representative stated.
The second point is that OAO RZD carries out some uncontrolled activities, such as services on private rolling stock repair and maintenance, spare parts manufacturing, servicing cars to be loaded etc. Considering the fact that these activities directly influence the activities of private carriers in terms of conditions for equal competition, a decision on tariffs deregulation is only possible to be made if OAO RZD gets restructured. "That is why the major condition is to accomplish steps determined by the Programme of structural reform in respect of separating economically certain competitive types of activities performed by OAO RZD", V.Yevdokimenko noted.
In his opinion, more factors can be mentioned. For example, the absence of separated car component in the tariffs of the third paragraph in the Tariff Regulation № 10-01 which taxes export-import cargo transportation.
The Ministry of Economic Development and Trade is called to perform the part of mediator in the market changes. However, here is what Yevgeny Mikhailov, Deputy Head of the tariffs state regulation and infrastructure reforms Department, thinks. He says, "We don't object to the car component tariff deregulation for oil and products transportation. But this has to be done under the condition of accounting for all the expenditures, including those on car repair and maintenance and cars empty-run, in a separate balance. Simultaneously, these expenditures must be excluded from regulated tariffs level".
Thus, it is clear that the major stumbling block on the way to railway tariffs deregulation is the absence of separate balances for different types of activities in OAO RZD. On December 29, 2004, the RF Government issued Bill № 871 "On formation of separate accounting for different types of activities in OAO RZD". It reads that in the annual report for 2004 and further on the company must provide information on profits, expenditures and results of its financial-economic activities, based on the following categories: cargo transportation, infrastructure employment and maintenance, locomotive haulage services, long-distance passenger transportation, suburban transportation, rolling stock repair, infrastructure objects construction, rolling stock repair, scientific-research activities, social sector, and other activities.
ОАО RZD realizes the obvious necessity of building up an almost totally new financial-economic corporate system pretty well. For example, at one of the company's recent sessions Boris Lapidus, OAO RZD seniour vice president on strategic planning and development, noted, "We must provide an opportunity to reflect the nature of our goods market conjuncture in tariffs by endowing OAO RZD with the right to change them flexibly within the framework of their utmost level. To put it in practice we must solve the problem of profits and expenditures separate accounting. In this respect we've already made a great deal".
However, the above-mentioned process is moving slowly. In June Mikhail Beskhmelnitsyn, an auditor of the RF Counting Chamber, stated, when speaking at one of the round-tables: "The auditing of OAO RZD showed that the final scheme for transparent and proved expenditures accounting for definite types of activities has not been worked out yet. First of all, this applies to cargo and passenger transportation".
"No" to Dumping!
However, a question can arise why not let decrease the tariffs at least? This seems to be what the railway men are trying to obtain in the first place. They want their rates decrease, not rise. Here is the answer given by Mikhail Kozlovsky, Association of railway transport rolling stock carriers and operators, "If we let OAO RZD decrease their tariffs for transportation of certain cargoes even in competitive segments, the company could set up initially dumping tariffs. This way the corporation will make private carriers go bankrupt and then, forcing them to sell their rolling stock for nothing, bring all the high-profitable cargo transportation back under its own control, consequently taking the tariffs up to their economically grounded level".
According to private business representatives, such ideas have already revealed their validity this year. In spring OAO RZD directed a proposal to the Federal Tariff Service on seasonal decreasing tariffs for oil and products transportation during the summer navigation from Povolzhye region to the Russian and foreign ports. The target was to attract additional oil bulk volumes, including those normally carried by inland water transport. At the same time, if a traditional gap between river and railway tariffs has been kept at the level of 10-20% for the last two years, then discounts offered by railways amounted to 30%, and even 60% for certain directions.
The reaction of river transport companies was hard to underrate. In particular, Andrey Kleimenov, "Vologotanker" JSC vice-president, said to The RZD-Partner International, "Railway men lobbing the introduction of seasonal tariffs are, in fact, breaking the rules of fair competition. We are sure the RF Government will not allow this gradual destruction of oil water transport in view of the state's interests, as the application of these discounts will necessarily lead to the death of tanker "river-sea" transportation".
Private railway operator companies expressed ideas close to the above-mentioned. The Association of railway transport rolling stock carriers and operators even presented an official claim at the Parliament readings on the railway transport reform. In particular, it said that measures offered by OAO RZD could result in "discrimination and bankruptcy of private companies". As a result, the Federal Tariff Service didn't support OAO RZD's proposal and didn't let the oil products transportation tariff drop.
Logic of Reform Programme and Economic Subject
Thus, the major demand of the regulating bodies for tariffs regulation is separate accounting. Still, one should confess it is a quite complicated task to carry out such a procedure. The matter is different types of activities are interrelated and mixed up even on the level of linear enterprises, not to mention OAO RZD departments, i.e. railways.
In this respect the most rational, though quite painful, way is property separation between activities, first, into departments with separate financial balances, and then into independent affiliates. Tariffs for the services of such companies should be fixed by means of contracts. The so-called infrastructure component, i.e. the part they will pay to OAO RZD for the use of its infrastructure, will remain regulated.
Strictly speaking, the Programme of structural reform of railway transport envisages this way of development for the second and especially the third stage. The document states that the organization-legislative separation of intermodal (container) and refrigerator cargo transportation, as well as suburban passenger transportation, from OAO RZD should be initiated at the second stage of the reform. Moreover, the share of rolling stock operated by private carriers will enlarge and reach over 50% by the third stage.
The third stage of the reform is aimed at "the creation of a developed competitive market in railway transportation". The Programme points out that "the expediency of total organizational separation between infrastructure and transportation should be estimated, if the conditions allowing such separation have been achieved at this stage". At the same time it is planned that "the most part of the cargo car park (60%)" will be transferred to private owners.
Besides the official approval of separating such OAO RZD affiliates as "Transcontainer" (container transportation) and "Refservice" (perishable goods transportation), the idea of applying the same procedure to the oil transportation company was also brought to consideration. In this respect V.Yakunin formulated one of the key tasks for the company, i.e. to solve all procedure and organization issues concerning the establishment of the company's affiliates within the high-profit cargo transportation segment, where the company's share tends to decrease. Such a position can help overcome barriers in certain sectors on the tariffs deregulation development and give space for market competitive relations.
Interesting Variant
Currently, companies-operators have started to separate off of OAO RZD, as previously planned. And the start is an interesting one. OAO RZD is to establish subsidiaries in co-operation with large private operators. In October, the Board of OAO RZD approved the launch of a company that will specialize in profitable cargoes transportation(see "Consolidating Advantages",p. 60). This will be done on equal footing with New Forwarding Company OJSC. The new company will transport oil and products, produce of the ferrous metallurgy, iron ore, coal and other cargoes in its rolling-stock.
Other operators are also interested in launching joint companies together with OAO RZD. Thus, one would think, for some sectors tariff deregulation will become a reality in 2006.
ANDREY GURYEV
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Following the Law
At present the Federal Tariff Service (FTS) controls domestic and export-import OAO RZD tariffs, while the RF Transport Ministry regulates transit.
At the same time the RF legislation envisages staged transfer to tariffs deregulation for competitive transportation segments within the structural reform of railway transport that has been unfolding since 2001.
The Federal Bill "On natural monopolies" reads as follows "According to the programme of demonopolization of railway transportation market approved by the RF Government, the sector is to switch from regulating the activities of natural monopolies subjects within railway transportation to regulating the above stated activities within supplying services on railway transport infrastructure exploiting". The Bill directly states that any restriction of economically grounded transition of the natural monopolies towards a competitive market is unacceptable.
However, there are some problems due to the fact that the mechanism of tariffs deregulation itself is interpreted differently. The Programme of the reform states that tariffs liberalization is defined by the body regulating natural monopolies, i.e. the Federal Tariff Service. Moreover, the FTS Board unites representatives of all the adjacent government bodies. Still, the regulating bodies themselves referring to the above citation from the Bill "On natural monopolies" believe that a Government decision on demonopolization of the railway transportation market should be made.
In any case, both the format and the level of the relevant decision on tariffs deregulation could be defined immediately, if only the regulators were sure this step is to be made. However, they still doubt the time has come to make such a decision.
Proposals
The only transport market subject persistent in its demands to make a decision on tariffs deregulation is OAO RZD. On the whole, the situation dates back to 2002, when Viktor Khristenko, then vice-premier of the RF Government, authorized the adjacent bodies to develop a mechanism of competitive sectors separation from railway transportation.
That year the RF Ministry of Railways controlling railways as a part of its centralized economic system presented a methodology "Conditions and mechanism of competitive segments of transport services market separation from natural monopoly". At the beginning of 2003 the RF Ministry of Railways brought in a project of tariffs deregulation for oil and products transportation. If that project had been approved, the issue of oil tariffs liberalization would have become an inseparable part of the general process. However, the project presented was considered as improperly developed.
On October 1, 2003 the RF Ministry of Railways was re-organized into OAO RZD and the deregulation problem was put aside. Nevertheless, starting from last year, railway men resumed their efforts. In his first report on July 15, Vladimir Yakunin, the new OAO RZD president appointed in June 2005, said, "We must increase the transparency of our activities, provide equal access to the infrastructure defined by the RF Government normative Bills and, on this basis, make the car component of the tariff deregulated".
At present OAO RZD proposals cover several areas. The first one is the separation of competitive segments in the transport services market from their natural monopoly, with a total tariffs liberalization to follow. The second one envisages OAO RZD becoming authorized to set tariffs within the framework of their utmost level determined by the Tariff Regulations. That leads to the opportunity to make quick decisions on tariffs decrease considering market conditions, or implement partial deregulation.
ОАО RZD believes that now about 17 competitive transport services market segments can be separated at least for partial deregulation, with setting up maximum permissible tariff levels. These segments are cargo transportation combined with water transportation during navigation; oil and products, chemical and mineral fertilizers, containerized cargo transportation etc.From OAO RZD's point of view, it plays a crucially important role for oil liquid bulk transportation. Besides competition with oil pipeline and water transport, competitive relations within the railway transportation sector itself are also developing. Nowadays some quite big operator companies possessing their own cars and locomotives are involved into oil transportation. In the near future they plan to turn into independent carriers.
According to OAO RZD, in 2003 the car park of the company transported 54% of oil and products, while private park made 46%. In 2004 the situation changed and private park share amounted to as much as 58.1% of oil cargo, considering the fact that state and private rolling stock proportions are practically equal today.
As opposed to OAO RZD, private companies are not natural monopolies subjects and that is the reason why they get the favorable opportunity indicated by Tariff Regulation № 10-01 effective from August 2003, which states that they can decrease the car component for the cargo owner. On average, for all the cargoes it amounts to 15% and is slightly higher for oil cargos. This creates advantageous conditions for private companies, in comparison with OAO RZD. Moreover, traditionally better services provided by private business, as compared to the state, cause the obvious tendency of high-profit oil liquid bulk flow to private carriers. In general, one third of all the cargoes is transported by private rolling stock.
Objections
So what is the Federal Tariff Service reaction to the proposal of deregulating the car component, for example, in oil bulk transportation sector? The FTS notified OAO RZD such a step is seen as untimely.
Vitaly Yevdokimenko, FTS deputy head, commented on the situation, "We share the opinion that we should promote tariff deregulation for competitive segments of the market. But now certain risks are quite probable and that prevents us from approving this decision. These risks should be taken in consideration, despite the fact that the share of cargo transported by private rolling stock and other modes of transport is quite impressive now".
What exactly these risks that stop deregulation are? According to Mr. Yevdokimenko, the first group concerns the absence of separate accounting for profits and expenditures in OAO RZD activities. This prevents experts from assessing the level of the company's crossed subsiding. "We can't carry on with the reform comfortably until the activities of the company become financial and economically transparent", the FTS representative stated.
The second point is that OAO RZD carries out some uncontrolled activities, such as services on private rolling stock repair and maintenance, spare parts manufacturing, servicing cars to be loaded etc. Considering the fact that these activities directly influence the activities of private carriers in terms of conditions for equal competition, a decision on tariffs deregulation is only possible to be made if OAO RZD gets restructured. "That is why the major condition is to accomplish steps determined by the Programme of structural reform in respect of separating economically certain competitive types of activities performed by OAO RZD", V.Yevdokimenko noted.
In his opinion, more factors can be mentioned. For example, the absence of separated car component in the tariffs of the third paragraph in the Tariff Regulation № 10-01 which taxes export-import cargo transportation.
The Ministry of Economic Development and Trade is called to perform the part of mediator in the market changes. However, here is what Yevgeny Mikhailov, Deputy Head of the tariffs state regulation and infrastructure reforms Department, thinks. He says, "We don't object to the car component tariff deregulation for oil and products transportation. But this has to be done under the condition of accounting for all the expenditures, including those on car repair and maintenance and cars empty-run, in a separate balance. Simultaneously, these expenditures must be excluded from regulated tariffs level".
Thus, it is clear that the major stumbling block on the way to railway tariffs deregulation is the absence of separate balances for different types of activities in OAO RZD. On December 29, 2004, the RF Government issued Bill № 871 "On formation of separate accounting for different types of activities in OAO RZD". It reads that in the annual report for 2004 and further on the company must provide information on profits, expenditures and results of its financial-economic activities, based on the following categories: cargo transportation, infrastructure employment and maintenance, locomotive haulage services, long-distance passenger transportation, suburban transportation, rolling stock repair, infrastructure objects construction, rolling stock repair, scientific-research activities, social sector, and other activities.
ОАО RZD realizes the obvious necessity of building up an almost totally new financial-economic corporate system pretty well. For example, at one of the company's recent sessions Boris Lapidus, OAO RZD seniour vice president on strategic planning and development, noted, "We must provide an opportunity to reflect the nature of our goods market conjuncture in tariffs by endowing OAO RZD with the right to change them flexibly within the framework of their utmost level. To put it in practice we must solve the problem of profits and expenditures separate accounting. In this respect we've already made a great deal".
However, the above-mentioned process is moving slowly. In June Mikhail Beskhmelnitsyn, an auditor of the RF Counting Chamber, stated, when speaking at one of the round-tables: "The auditing of OAO RZD showed that the final scheme for transparent and proved expenditures accounting for definite types of activities has not been worked out yet. First of all, this applies to cargo and passenger transportation".
"No" to Dumping!
However, a question can arise why not let decrease the tariffs at least? This seems to be what the railway men are trying to obtain in the first place. They want their rates decrease, not rise. Here is the answer given by Mikhail Kozlovsky, Association of railway transport rolling stock carriers and operators, "If we let OAO RZD decrease their tariffs for transportation of certain cargoes even in competitive segments, the company could set up initially dumping tariffs. This way the corporation will make private carriers go bankrupt and then, forcing them to sell their rolling stock for nothing, bring all the high-profitable cargo transportation back under its own control, consequently taking the tariffs up to their economically grounded level".
According to private business representatives, such ideas have already revealed their validity this year. In spring OAO RZD directed a proposal to the Federal Tariff Service on seasonal decreasing tariffs for oil and products transportation during the summer navigation from Povolzhye region to the Russian and foreign ports. The target was to attract additional oil bulk volumes, including those normally carried by inland water transport. At the same time, if a traditional gap between river and railway tariffs has been kept at the level of 10-20% for the last two years, then discounts offered by railways amounted to 30%, and even 60% for certain directions.
The reaction of river transport companies was hard to underrate. In particular, Andrey Kleimenov, "Vologotanker" JSC vice-president, said to The RZD-Partner International, "Railway men lobbing the introduction of seasonal tariffs are, in fact, breaking the rules of fair competition. We are sure the RF Government will not allow this gradual destruction of oil water transport in view of the state's interests, as the application of these discounts will necessarily lead to the death of tanker "river-sea" transportation".
Private railway operator companies expressed ideas close to the above-mentioned. The Association of railway transport rolling stock carriers and operators even presented an official claim at the Parliament readings on the railway transport reform. In particular, it said that measures offered by OAO RZD could result in "discrimination and bankruptcy of private companies". As a result, the Federal Tariff Service didn't support OAO RZD's proposal and didn't let the oil products transportation tariff drop.
Logic of Reform Programme and Economic Subject
Thus, the major demand of the regulating bodies for tariffs regulation is separate accounting. Still, one should confess it is a quite complicated task to carry out such a procedure. The matter is different types of activities are interrelated and mixed up even on the level of linear enterprises, not to mention OAO RZD departments, i.e. railways.
In this respect the most rational, though quite painful, way is property separation between activities, first, into departments with separate financial balances, and then into independent affiliates. Tariffs for the services of such companies should be fixed by means of contracts. The so-called infrastructure component, i.e. the part they will pay to OAO RZD for the use of its infrastructure, will remain regulated.
Strictly speaking, the Programme of structural reform of railway transport envisages this way of development for the second and especially the third stage. The document states that the organization-legislative separation of intermodal (container) and refrigerator cargo transportation, as well as suburban passenger transportation, from OAO RZD should be initiated at the second stage of the reform. Moreover, the share of rolling stock operated by private carriers will enlarge and reach over 50% by the third stage.
The third stage of the reform is aimed at "the creation of a developed competitive market in railway transportation". The Programme points out that "the expediency of total organizational separation between infrastructure and transportation should be estimated, if the conditions allowing such separation have been achieved at this stage". At the same time it is planned that "the most part of the cargo car park (60%)" will be transferred to private owners.
Besides the official approval of separating such OAO RZD affiliates as "Transcontainer" (container transportation) and "Refservice" (perishable goods transportation), the idea of applying the same procedure to the oil transportation company was also brought to consideration. In this respect V.Yakunin formulated one of the key tasks for the company, i.e. to solve all procedure and organization issues concerning the establishment of the company's affiliates within the high-profit cargo transportation segment, where the company's share tends to decrease. Such a position can help overcome barriers in certain sectors on the tariffs deregulation development and give space for market competitive relations.
Interesting Variant
Currently, companies-operators have started to separate off of OAO RZD, as previously planned. And the start is an interesting one. OAO RZD is to establish subsidiaries in co-operation with large private operators. In October, the Board of OAO RZD approved the launch of a company that will specialize in profitable cargoes transportation(see "Consolidating Advantages",p. 60). This will be done on equal footing with New Forwarding Company OJSC. The new company will transport oil and products, produce of the ferrous metallurgy, iron ore, coal and other cargoes in its rolling-stock.
Other operators are also interested in launching joint companies together with OAO RZD. Thus, one would think, for some sectors tariff deregulation will become a reality in 2006.
ANDREY GURYEV
[~DETAIL_TEXT] =>
Following the Law
At present the Federal Tariff Service (FTS) controls domestic and export-import OAO RZD tariffs, while the RF Transport Ministry regulates transit.
At the same time the RF legislation envisages staged transfer to tariffs deregulation for competitive transportation segments within the structural reform of railway transport that has been unfolding since 2001.
The Federal Bill "On natural monopolies" reads as follows "According to the programme of demonopolization of railway transportation market approved by the RF Government, the sector is to switch from regulating the activities of natural monopolies subjects within railway transportation to regulating the above stated activities within supplying services on railway transport infrastructure exploiting". The Bill directly states that any restriction of economically grounded transition of the natural monopolies towards a competitive market is unacceptable.
However, there are some problems due to the fact that the mechanism of tariffs deregulation itself is interpreted differently. The Programme of the reform states that tariffs liberalization is defined by the body regulating natural monopolies, i.e. the Federal Tariff Service. Moreover, the FTS Board unites representatives of all the adjacent government bodies. Still, the regulating bodies themselves referring to the above citation from the Bill "On natural monopolies" believe that a Government decision on demonopolization of the railway transportation market should be made.
In any case, both the format and the level of the relevant decision on tariffs deregulation could be defined immediately, if only the regulators were sure this step is to be made. However, they still doubt the time has come to make such a decision.
Proposals
The only transport market subject persistent in its demands to make a decision on tariffs deregulation is OAO RZD. On the whole, the situation dates back to 2002, when Viktor Khristenko, then vice-premier of the RF Government, authorized the adjacent bodies to develop a mechanism of competitive sectors separation from railway transportation.
That year the RF Ministry of Railways controlling railways as a part of its centralized economic system presented a methodology "Conditions and mechanism of competitive segments of transport services market separation from natural monopoly". At the beginning of 2003 the RF Ministry of Railways brought in a project of tariffs deregulation for oil and products transportation. If that project had been approved, the issue of oil tariffs liberalization would have become an inseparable part of the general process. However, the project presented was considered as improperly developed.
On October 1, 2003 the RF Ministry of Railways was re-organized into OAO RZD and the deregulation problem was put aside. Nevertheless, starting from last year, railway men resumed their efforts. In his first report on July 15, Vladimir Yakunin, the new OAO RZD president appointed in June 2005, said, "We must increase the transparency of our activities, provide equal access to the infrastructure defined by the RF Government normative Bills and, on this basis, make the car component of the tariff deregulated".
At present OAO RZD proposals cover several areas. The first one is the separation of competitive segments in the transport services market from their natural monopoly, with a total tariffs liberalization to follow. The second one envisages OAO RZD becoming authorized to set tariffs within the framework of their utmost level determined by the Tariff Regulations. That leads to the opportunity to make quick decisions on tariffs decrease considering market conditions, or implement partial deregulation.
ОАО RZD believes that now about 17 competitive transport services market segments can be separated at least for partial deregulation, with setting up maximum permissible tariff levels. These segments are cargo transportation combined with water transportation during navigation; oil and products, chemical and mineral fertilizers, containerized cargo transportation etc.From OAO RZD's point of view, it plays a crucially important role for oil liquid bulk transportation. Besides competition with oil pipeline and water transport, competitive relations within the railway transportation sector itself are also developing. Nowadays some quite big operator companies possessing their own cars and locomotives are involved into oil transportation. In the near future they plan to turn into independent carriers.
According to OAO RZD, in 2003 the car park of the company transported 54% of oil and products, while private park made 46%. In 2004 the situation changed and private park share amounted to as much as 58.1% of oil cargo, considering the fact that state and private rolling stock proportions are practically equal today.
As opposed to OAO RZD, private companies are not natural monopolies subjects and that is the reason why they get the favorable opportunity indicated by Tariff Regulation № 10-01 effective from August 2003, which states that they can decrease the car component for the cargo owner. On average, for all the cargoes it amounts to 15% and is slightly higher for oil cargos. This creates advantageous conditions for private companies, in comparison with OAO RZD. Moreover, traditionally better services provided by private business, as compared to the state, cause the obvious tendency of high-profit oil liquid bulk flow to private carriers. In general, one third of all the cargoes is transported by private rolling stock.
Objections
So what is the Federal Tariff Service reaction to the proposal of deregulating the car component, for example, in oil bulk transportation sector? The FTS notified OAO RZD such a step is seen as untimely.
Vitaly Yevdokimenko, FTS deputy head, commented on the situation, "We share the opinion that we should promote tariff deregulation for competitive segments of the market. But now certain risks are quite probable and that prevents us from approving this decision. These risks should be taken in consideration, despite the fact that the share of cargo transported by private rolling stock and other modes of transport is quite impressive now".
What exactly these risks that stop deregulation are? According to Mr. Yevdokimenko, the first group concerns the absence of separate accounting for profits and expenditures in OAO RZD activities. This prevents experts from assessing the level of the company's crossed subsiding. "We can't carry on with the reform comfortably until the activities of the company become financial and economically transparent", the FTS representative stated.
The second point is that OAO RZD carries out some uncontrolled activities, such as services on private rolling stock repair and maintenance, spare parts manufacturing, servicing cars to be loaded etc. Considering the fact that these activities directly influence the activities of private carriers in terms of conditions for equal competition, a decision on tariffs deregulation is only possible to be made if OAO RZD gets restructured. "That is why the major condition is to accomplish steps determined by the Programme of structural reform in respect of separating economically certain competitive types of activities performed by OAO RZD", V.Yevdokimenko noted.
In his opinion, more factors can be mentioned. For example, the absence of separated car component in the tariffs of the third paragraph in the Tariff Regulation № 10-01 which taxes export-import cargo transportation.
The Ministry of Economic Development and Trade is called to perform the part of mediator in the market changes. However, here is what Yevgeny Mikhailov, Deputy Head of the tariffs state regulation and infrastructure reforms Department, thinks. He says, "We don't object to the car component tariff deregulation for oil and products transportation. But this has to be done under the condition of accounting for all the expenditures, including those on car repair and maintenance and cars empty-run, in a separate balance. Simultaneously, these expenditures must be excluded from regulated tariffs level".
Thus, it is clear that the major stumbling block on the way to railway tariffs deregulation is the absence of separate balances for different types of activities in OAO RZD. On December 29, 2004, the RF Government issued Bill № 871 "On formation of separate accounting for different types of activities in OAO RZD". It reads that in the annual report for 2004 and further on the company must provide information on profits, expenditures and results of its financial-economic activities, based on the following categories: cargo transportation, infrastructure employment and maintenance, locomotive haulage services, long-distance passenger transportation, suburban transportation, rolling stock repair, infrastructure objects construction, rolling stock repair, scientific-research activities, social sector, and other activities.
ОАО RZD realizes the obvious necessity of building up an almost totally new financial-economic corporate system pretty well. For example, at one of the company's recent sessions Boris Lapidus, OAO RZD seniour vice president on strategic planning and development, noted, "We must provide an opportunity to reflect the nature of our goods market conjuncture in tariffs by endowing OAO RZD with the right to change them flexibly within the framework of their utmost level. To put it in practice we must solve the problem of profits and expenditures separate accounting. In this respect we've already made a great deal".
However, the above-mentioned process is moving slowly. In June Mikhail Beskhmelnitsyn, an auditor of the RF Counting Chamber, stated, when speaking at one of the round-tables: "The auditing of OAO RZD showed that the final scheme for transparent and proved expenditures accounting for definite types of activities has not been worked out yet. First of all, this applies to cargo and passenger transportation".
"No" to Dumping!
However, a question can arise why not let decrease the tariffs at least? This seems to be what the railway men are trying to obtain in the first place. They want their rates decrease, not rise. Here is the answer given by Mikhail Kozlovsky, Association of railway transport rolling stock carriers and operators, "If we let OAO RZD decrease their tariffs for transportation of certain cargoes even in competitive segments, the company could set up initially dumping tariffs. This way the corporation will make private carriers go bankrupt and then, forcing them to sell their rolling stock for nothing, bring all the high-profitable cargo transportation back under its own control, consequently taking the tariffs up to their economically grounded level".
According to private business representatives, such ideas have already revealed their validity this year. In spring OAO RZD directed a proposal to the Federal Tariff Service on seasonal decreasing tariffs for oil and products transportation during the summer navigation from Povolzhye region to the Russian and foreign ports. The target was to attract additional oil bulk volumes, including those normally carried by inland water transport. At the same time, if a traditional gap between river and railway tariffs has been kept at the level of 10-20% for the last two years, then discounts offered by railways amounted to 30%, and even 60% for certain directions.
The reaction of river transport companies was hard to underrate. In particular, Andrey Kleimenov, "Vologotanker" JSC vice-president, said to The RZD-Partner International, "Railway men lobbing the introduction of seasonal tariffs are, in fact, breaking the rules of fair competition. We are sure the RF Government will not allow this gradual destruction of oil water transport in view of the state's interests, as the application of these discounts will necessarily lead to the death of tanker "river-sea" transportation".
Private railway operator companies expressed ideas close to the above-mentioned. The Association of railway transport rolling stock carriers and operators even presented an official claim at the Parliament readings on the railway transport reform. In particular, it said that measures offered by OAO RZD could result in "discrimination and bankruptcy of private companies". As a result, the Federal Tariff Service didn't support OAO RZD's proposal and didn't let the oil products transportation tariff drop.
Logic of Reform Programme and Economic Subject
Thus, the major demand of the regulating bodies for tariffs regulation is separate accounting. Still, one should confess it is a quite complicated task to carry out such a procedure. The matter is different types of activities are interrelated and mixed up even on the level of linear enterprises, not to mention OAO RZD departments, i.e. railways.
In this respect the most rational, though quite painful, way is property separation between activities, first, into departments with separate financial balances, and then into independent affiliates. Tariffs for the services of such companies should be fixed by means of contracts. The so-called infrastructure component, i.e. the part they will pay to OAO RZD for the use of its infrastructure, will remain regulated.
Strictly speaking, the Programme of structural reform of railway transport envisages this way of development for the second and especially the third stage. The document states that the organization-legislative separation of intermodal (container) and refrigerator cargo transportation, as well as suburban passenger transportation, from OAO RZD should be initiated at the second stage of the reform. Moreover, the share of rolling stock operated by private carriers will enlarge and reach over 50% by the third stage.
The third stage of the reform is aimed at "the creation of a developed competitive market in railway transportation". The Programme points out that "the expediency of total organizational separation between infrastructure and transportation should be estimated, if the conditions allowing such separation have been achieved at this stage". At the same time it is planned that "the most part of the cargo car park (60%)" will be transferred to private owners.
Besides the official approval of separating such OAO RZD affiliates as "Transcontainer" (container transportation) and "Refservice" (perishable goods transportation), the idea of applying the same procedure to the oil transportation company was also brought to consideration. In this respect V.Yakunin formulated one of the key tasks for the company, i.e. to solve all procedure and organization issues concerning the establishment of the company's affiliates within the high-profit cargo transportation segment, where the company's share tends to decrease. Such a position can help overcome barriers in certain sectors on the tariffs deregulation development and give space for market competitive relations.
Interesting Variant
Currently, companies-operators have started to separate off of OAO RZD, as previously planned. And the start is an interesting one. OAO RZD is to establish subsidiaries in co-operation with large private operators. In October, the Board of OAO RZD approved the launch of a company that will specialize in profitable cargoes transportation(see "Consolidating Advantages",p. 60). This will be done on equal footing with New Forwarding Company OJSC. The new company will transport oil and products, produce of the ferrous metallurgy, iron ore, coal and other cargoes in its rolling-stock.
Other operators are also interested in launching joint companies together with OAO RZD. Thus, one would think, for some sectors tariff deregulation will become a reality in 2006.
ANDREY GURYEV
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[DETAIL_TEXT] => On October 3, in Brussels, the RF Minister of Transport Igor Levitin and the Commissioner in charge of Transport Jacques Barrot signed a joint document defining basic principles, targets and structure of Russia-EU dialogue in the sphere of transport and infrastructure.
In the signed document it is written that the dialogue is to contribute to the harmonization and mutual additions of the transport infrastructure development strategies in Russia and the EU, cooperation in development and implementation of technical rules, norms and universally recognized standards, strengthening of mutual understanding in the sphere of acting and developed legislation, as well as of the transport policy. The dialogue is to cover problems interesting for Russia and the EU.
Annual coordination meetings will be held in Russia and the EU in turn.
Ukrzaliznytsya to Be Restructured
The Ministry of Transport and Communication of Ukraine supports the initiative of the President of Ukraine about the separation of functions of the Minister of Transport and Communication and the director general of the Ukrainian State Administration of the Railway Transport "Ukrzaliznytsya".
On November 11, the president of Ukraine Viktor Yuschenko discharged the director general of the Ukrainian State Administration of Railway Transport, the Deputy Minister of Transport and Communication of Ukraine Zenko Aftanaziv, because of the post being liquidated.
Such a decision will enable to separate state and household management of the economy sectors, in particular in railway transport. Besides, it will provide more efficient and faster development of Ukraine as a transit state, start a new strategic approach to the transit policy of Ukraine and reform the state monopoly - railways.
Now the Deputy Minister of Transport is to work out and apply the tariff policy for the railway transport, coordinating it with the sea ports. He is responsible for the development of the programme of the railway sector reforms, based on the analysis of foreign experience.
To Be Continued
The RF Minister of Transport Igor Levitin recognized that the second stage of the railway transport reform is over. "The third stage will be completed in 2006-2010", he said at the meeting of the RF Government held on November 10 and devoted to the railway transport reform.
At the same time, I.Levitin offered to improve the organizational mechanism of legislative regulation on railway transport. He asked the Government to support the creation of a Department of the State Policy in the Railway Transport Sphere.
As stated at the meeting, by now, the Conception of the Corporate Building of OAO RZD has been approved. In 2004-2005, the company's Board of Directors approved 9 out of 10 discussed conceptions of reforming OAO RZD.
The only, according to the Ministry of Transport and OAO RZD, measure in the restructuring sphere which fell behind the schedule is setting apart of the passenger complex. The following plan was offered and approved at the Government's meeting. In 2006, OAO RZD gives property to the Federal Passenger Directorate and registers it as an affiliate with an independent balance. This gives it an opportunity to separate the stock of freight and passenger transportation. The President of OAO RZD Vladimir Yakunin made an interesting offer: "We believe, to decrease the budget loading in the sphere of railway transport reforms, some measures from the third stage of the reform can be taken now. I mean, the separation off and formation of a large subsidiary engaged in freight transportation, which would be attractive for foreign investors. We mean a very large company, with the possible capitalization of RUR120 bln, which could attract up to RUR60 bln for rolling stock renewal". According to V.Yakunin, that could decrease ageing and tearing of basic funds, reduce exploitation expenses and allow them to speak about tariffs reduction.
As a result of the Government meeting, all the basic statements made by the Ministry of Transport and OAO RZD were supported, and the way the reform goes was not criticized. The Prime-Minister Mikhail Fradkov summed up the discussion: "We expect that the reform will result in the formation of a market, our enterprises being used to their full capacity and a sound competition going on".
To Discuss Transport with manufacturers
On October 3 in London, OAO RZD President Vladimir Yakunin reported to the delegates attending the 7th session of the European Union-Russia Manufacturers' Round Table a series of proposals drawn up by the working group of transport specialists.
According to the members of the working group, "the transport system is the most convenient basis for perfecting integration processes, whereas specific joint operations are essential, not only to overcome existing preconceptions, but also to eliminate unsatisfactory circumstances, particularly in the legislation, which affect freight transference".
To quote Vladimir Yakunin, "the working group has a precise understanding of what should be done next and how it should be carried out in joint operation".
The specific contribution by the transportation working group is a proposal included in the resolutions of the 7th session of the European Union-Russia Manufacturers' Round Table session on the formation of a new working mechanism to overcome the problems of developing the European transport system. This refers to initial steps for the formation of an organisation to unite the transport workers of Russia and the EU, and, within this framework, solve all existing problems.
"Right now we all need the concept of a new transportation system for Greater Europe", stated Vladimir Yakunin. "This concept must be practical rather than theoretical, and, among other things, it should forsee the creation of joint organisations and cooperation on a mutually profitable basis".
According to Vladimir Yakunin, the most pressing transport problems and projects should be reflected in the concept: the development of container deliveries, high-speed traffic, further exploitation of the Trans-Siberian railway, leasing of rolling stock, etc.
Participants of the 7th session of the European Union-Russia Manufacturers' Round Table seconded the proposal made by the transportation working group under Vladimir Yakunin for the creation of four subgroups charged with the following tasks: coordination of transportation policies between Russia and the EU aimed at infrastructure development and administration of transport corridors; harmonisation of a legislative basis to cover freight transport; development and introduction of new technologies and innovations; review of the issues involving insurance and responsibilities of carriers.
Integration going on
On September 3, at the 5th conference of European Railways CEOs in Strelna(St.-Petersburg), President of OAO RZD Vladimir Yakunin stated that the company has developed a programme of measures to be taken until 2010, which can be considered as Russia's next steps towards integration.
The basic results of OAO RZD's integration into the Eurasian transport system are joint ventures being launched and service quality improved to enhance the company's competitiveness at the international market.
The programme of measures to integrate into the Eurasian transport system developed by OAO RZD includes several aspects. Firstly, it is the harmonization of the transport legislation in the Eurasian system and the simplification of border crossing procedures. "The final target is to speed up the freight transportation via the borders of neighboring states, i.e. to increase the efficiency of the commodity turnover in Europe and Asia, which will positively influence the economy of our countries", stressed President of OAO RZD Vladimir Yakunin. Secondly, they plan to create the technology of rolling stock's running in two technical systems.V. Yakunin noted "As a result, the operation expenses for international transportation, as well as delivery time, will be reduced". Besides, the technology of foreign trade cargo transportation will be improved and the cooperation with the foreign railways will be developing. As President of OAO RZD said, "Here we suggest creating universal information-logistics centers, improving the tariff policy and increasing investment activities".
Finally, the programme envisages development of international transport corridors, railway border crossings and port stations, creation of intermodal companies, and coordinating the transcontinental container transportation. Answering the question of a reporter from The RZD-Partner International magazine, the chairperson of Deutsche Bahn AG Hartmut Moedhorn said, "The need for integration is defined by the customers' interests. If the railways want to offer their clients competitive international transportation services, there is no other way out. And the demand for it has already appeared on the market".
OAO RZD Bonds at Value of RUR15 Billion Floated in One Day
Two issues of OAO RZD rouble bonds floated on November 16, 2005 at the auction on the Moscow MICEX stock exchange, total bond placement of RUR15 bln.
Two issues of OAO RZD bonds were placed: series 06 with bond turnover of 5 years (1,820 days) at a volume of RUR10 bln, and series 07 with bond turnover of 7 years (2,548 days) at a volume of RUR5 bln.
The bonds were floated at a price equal to 100% of nominal value (RUR1 thousand).
Results of tenders for the two issues of OAO RZD bonds set yield rates for the first coupon as follows: 7.35% annually for series 06 with bond redemption after 5 years; 7.55% annually for series 07 with bond redemption after 7 years.
Coupon yield rates for other coupon payment periods will be equal to the rate of the first coupon period for each bond series.
Coupon yield for OAO RZD bonds will be paid every 6 months (182 days).
A syndicate of leading banks floated OAO RZD bonds. KIT Finance Investment Bank and JP Morgan Bank acted as loan organisers. The syndicate of co-organisers was formed by Gazprombank, Petrokommertz Bank, Sberbank and TransCreditBank. Co-underwriters of the issue were Promyshlenno-stroitelny Bank, Stroikredit Bank, ABN Amro Bank, ING Bank (Eurasia), Mezhdunarodny Moskovsky Bank, NOMOS-Bank, Promsvyazbank, Citybank, Soyuz Bank and FC Megatrastoil.
The successful placement with participation by both Russian and foreign institutional investors proves its market value, and the level of profitability shows that investors perceive OAO RZD as a quasi-sovereign borrower with a very high credit rating.
Long-term funds attracted in accordance with the 2005 loans programme approved by the OAO RZD Board of directors will be directed towards repayment of the company's short-term credits with commercial banks. These credits were previously used for target financing of investment projects implemented on the principle of project financing (oil haulage to China, an automatic commercial accounting system for electrical energy, regular traffic on the line Moscow-Lyubertsy-Ramenskoye, etc.).
Circulation of OAO RZD bonds will begin on the secondary market after particulars of the issue result have been listed.
EBRD Loans Azerbaijan USD 100 Mln for Road Repairs
On September 29, the Azerbaijan Government and the European Bank for Reconstruction and Development (EBRD) signed an agreement for a USD100 mln loan to repair one of the country's main highways that runs from Baku to the Russian border.
The 15-year loan will have a three-year grace period and a rate of LIBOR+1%.
The money will be spent on reconstructing the part of the highway that runs from Sumgait to the village of Zarat. The cost of the 200 km stretch reconstruction will exceed USD280 mln.
Repairs on the remaining part of the road will be financed by the Czech Republic's Eximbank, which has already allocated USD180 mln for this purpose. The Azerbaijan Government will pay for the repair work of the first 28 km of the highway.
OAO RZD and Finmeccanica Signed Memorandum of Understanding
On September 22, President of Russian Railways (OAO RZD) Vladimir Yakunin and the head of the Italian concern Finmeccanica Pier Francesco Guarguaglini signed a Memorandum of Understanding between the companies. The Memorandum envisages cooperation in the sphere of railway transport and technologies development.
OAO RZD and Finmeccanica will create a joint working group to examine the ways to develop co-operation in the sphere of IT for speeded trains, systems of safety control on rail transport, and systems of power supply and communication.
The sides agreed to examine the possibilities to produce junctions and utilities for wagons, bogies, locomotives etc. in Russia. The sides also agreed to examine the possible forms of cooperation in the sphere of coordinating systems for control of communication, based on the European and Russian safety standards.
[~DETAIL_TEXT] => On October 3, in Brussels, the RF Minister of Transport Igor Levitin and the Commissioner in charge of Transport Jacques Barrot signed a joint document defining basic principles, targets and structure of Russia-EU dialogue in the sphere of transport and infrastructure.
In the signed document it is written that the dialogue is to contribute to the harmonization and mutual additions of the transport infrastructure development strategies in Russia and the EU, cooperation in development and implementation of technical rules, norms and universally recognized standards, strengthening of mutual understanding in the sphere of acting and developed legislation, as well as of the transport policy. The dialogue is to cover problems interesting for Russia and the EU.
Annual coordination meetings will be held in Russia and the EU in turn.
Ukrzaliznytsya to Be Restructured
The Ministry of Transport and Communication of Ukraine supports the initiative of the President of Ukraine about the separation of functions of the Minister of Transport and Communication and the director general of the Ukrainian State Administration of the Railway Transport "Ukrzaliznytsya".
On November 11, the president of Ukraine Viktor Yuschenko discharged the director general of the Ukrainian State Administration of Railway Transport, the Deputy Minister of Transport and Communication of Ukraine Zenko Aftanaziv, because of the post being liquidated.
Such a decision will enable to separate state and household management of the economy sectors, in particular in railway transport. Besides, it will provide more efficient and faster development of Ukraine as a transit state, start a new strategic approach to the transit policy of Ukraine and reform the state monopoly - railways.
Now the Deputy Minister of Transport is to work out and apply the tariff policy for the railway transport, coordinating it with the sea ports. He is responsible for the development of the programme of the railway sector reforms, based on the analysis of foreign experience.
To Be Continued
The RF Minister of Transport Igor Levitin recognized that the second stage of the railway transport reform is over. "The third stage will be completed in 2006-2010", he said at the meeting of the RF Government held on November 10 and devoted to the railway transport reform.
At the same time, I.Levitin offered to improve the organizational mechanism of legislative regulation on railway transport. He asked the Government to support the creation of a Department of the State Policy in the Railway Transport Sphere.
As stated at the meeting, by now, the Conception of the Corporate Building of OAO RZD has been approved. In 2004-2005, the company's Board of Directors approved 9 out of 10 discussed conceptions of reforming OAO RZD.
The only, according to the Ministry of Transport and OAO RZD, measure in the restructuring sphere which fell behind the schedule is setting apart of the passenger complex. The following plan was offered and approved at the Government's meeting. In 2006, OAO RZD gives property to the Federal Passenger Directorate and registers it as an affiliate with an independent balance. This gives it an opportunity to separate the stock of freight and passenger transportation. The President of OAO RZD Vladimir Yakunin made an interesting offer: "We believe, to decrease the budget loading in the sphere of railway transport reforms, some measures from the third stage of the reform can be taken now. I mean, the separation off and formation of a large subsidiary engaged in freight transportation, which would be attractive for foreign investors. We mean a very large company, with the possible capitalization of RUR120 bln, which could attract up to RUR60 bln for rolling stock renewal". According to V.Yakunin, that could decrease ageing and tearing of basic funds, reduce exploitation expenses and allow them to speak about tariffs reduction.
As a result of the Government meeting, all the basic statements made by the Ministry of Transport and OAO RZD were supported, and the way the reform goes was not criticized. The Prime-Minister Mikhail Fradkov summed up the discussion: "We expect that the reform will result in the formation of a market, our enterprises being used to their full capacity and a sound competition going on".
To Discuss Transport with manufacturers
On October 3 in London, OAO RZD President Vladimir Yakunin reported to the delegates attending the 7th session of the European Union-Russia Manufacturers' Round Table a series of proposals drawn up by the working group of transport specialists.
According to the members of the working group, "the transport system is the most convenient basis for perfecting integration processes, whereas specific joint operations are essential, not only to overcome existing preconceptions, but also to eliminate unsatisfactory circumstances, particularly in the legislation, which affect freight transference".
To quote Vladimir Yakunin, "the working group has a precise understanding of what should be done next and how it should be carried out in joint operation".
The specific contribution by the transportation working group is a proposal included in the resolutions of the 7th session of the European Union-Russia Manufacturers' Round Table session on the formation of a new working mechanism to overcome the problems of developing the European transport system. This refers to initial steps for the formation of an organisation to unite the transport workers of Russia and the EU, and, within this framework, solve all existing problems.
"Right now we all need the concept of a new transportation system for Greater Europe", stated Vladimir Yakunin. "This concept must be practical rather than theoretical, and, among other things, it should forsee the creation of joint organisations and cooperation on a mutually profitable basis".
According to Vladimir Yakunin, the most pressing transport problems and projects should be reflected in the concept: the development of container deliveries, high-speed traffic, further exploitation of the Trans-Siberian railway, leasing of rolling stock, etc.
Participants of the 7th session of the European Union-Russia Manufacturers' Round Table seconded the proposal made by the transportation working group under Vladimir Yakunin for the creation of four subgroups charged with the following tasks: coordination of transportation policies between Russia and the EU aimed at infrastructure development and administration of transport corridors; harmonisation of a legislative basis to cover freight transport; development and introduction of new technologies and innovations; review of the issues involving insurance and responsibilities of carriers.
Integration going on
On September 3, at the 5th conference of European Railways CEOs in Strelna(St.-Petersburg), President of OAO RZD Vladimir Yakunin stated that the company has developed a programme of measures to be taken until 2010, which can be considered as Russia's next steps towards integration.
The basic results of OAO RZD's integration into the Eurasian transport system are joint ventures being launched and service quality improved to enhance the company's competitiveness at the international market.
The programme of measures to integrate into the Eurasian transport system developed by OAO RZD includes several aspects. Firstly, it is the harmonization of the transport legislation in the Eurasian system and the simplification of border crossing procedures. "The final target is to speed up the freight transportation via the borders of neighboring states, i.e. to increase the efficiency of the commodity turnover in Europe and Asia, which will positively influence the economy of our countries", stressed President of OAO RZD Vladimir Yakunin. Secondly, they plan to create the technology of rolling stock's running in two technical systems.V. Yakunin noted "As a result, the operation expenses for international transportation, as well as delivery time, will be reduced". Besides, the technology of foreign trade cargo transportation will be improved and the cooperation with the foreign railways will be developing. As President of OAO RZD said, "Here we suggest creating universal information-logistics centers, improving the tariff policy and increasing investment activities".
Finally, the programme envisages development of international transport corridors, railway border crossings and port stations, creation of intermodal companies, and coordinating the transcontinental container transportation. Answering the question of a reporter from The RZD-Partner International magazine, the chairperson of Deutsche Bahn AG Hartmut Moedhorn said, "The need for integration is defined by the customers' interests. If the railways want to offer their clients competitive international transportation services, there is no other way out. And the demand for it has already appeared on the market".
OAO RZD Bonds at Value of RUR15 Billion Floated in One Day
Two issues of OAO RZD rouble bonds floated on November 16, 2005 at the auction on the Moscow MICEX stock exchange, total bond placement of RUR15 bln.
Two issues of OAO RZD bonds were placed: series 06 with bond turnover of 5 years (1,820 days) at a volume of RUR10 bln, and series 07 with bond turnover of 7 years (2,548 days) at a volume of RUR5 bln.
The bonds were floated at a price equal to 100% of nominal value (RUR1 thousand).
Results of tenders for the two issues of OAO RZD bonds set yield rates for the first coupon as follows: 7.35% annually for series 06 with bond redemption after 5 years; 7.55% annually for series 07 with bond redemption after 7 years.
Coupon yield rates for other coupon payment periods will be equal to the rate of the first coupon period for each bond series.
Coupon yield for OAO RZD bonds will be paid every 6 months (182 days).
A syndicate of leading banks floated OAO RZD bonds. KIT Finance Investment Bank and JP Morgan Bank acted as loan organisers. The syndicate of co-organisers was formed by Gazprombank, Petrokommertz Bank, Sberbank and TransCreditBank. Co-underwriters of the issue were Promyshlenno-stroitelny Bank, Stroikredit Bank, ABN Amro Bank, ING Bank (Eurasia), Mezhdunarodny Moskovsky Bank, NOMOS-Bank, Promsvyazbank, Citybank, Soyuz Bank and FC Megatrastoil.
The successful placement with participation by both Russian and foreign institutional investors proves its market value, and the level of profitability shows that investors perceive OAO RZD as a quasi-sovereign borrower with a very high credit rating.
Long-term funds attracted in accordance with the 2005 loans programme approved by the OAO RZD Board of directors will be directed towards repayment of the company's short-term credits with commercial banks. These credits were previously used for target financing of investment projects implemented on the principle of project financing (oil haulage to China, an automatic commercial accounting system for electrical energy, regular traffic on the line Moscow-Lyubertsy-Ramenskoye, etc.).
Circulation of OAO RZD bonds will begin on the secondary market after particulars of the issue result have been listed.
EBRD Loans Azerbaijan USD 100 Mln for Road Repairs
On September 29, the Azerbaijan Government and the European Bank for Reconstruction and Development (EBRD) signed an agreement for a USD100 mln loan to repair one of the country's main highways that runs from Baku to the Russian border.
The 15-year loan will have a three-year grace period and a rate of LIBOR+1%.
The money will be spent on reconstructing the part of the highway that runs from Sumgait to the village of Zarat. The cost of the 200 km stretch reconstruction will exceed USD280 mln.
Repairs on the remaining part of the road will be financed by the Czech Republic's Eximbank, which has already allocated USD180 mln for this purpose. The Azerbaijan Government will pay for the repair work of the first 28 km of the highway.
OAO RZD and Finmeccanica Signed Memorandum of Understanding
On September 22, President of Russian Railways (OAO RZD) Vladimir Yakunin and the head of the Italian concern Finmeccanica Pier Francesco Guarguaglini signed a Memorandum of Understanding between the companies. The Memorandum envisages cooperation in the sphere of railway transport and technologies development.
OAO RZD and Finmeccanica will create a joint working group to examine the ways to develop co-operation in the sphere of IT for speeded trains, systems of safety control on rail transport, and systems of power supply and communication.
The sides agreed to examine the possibilities to produce junctions and utilities for wagons, bogies, locomotives etc. in Russia. The sides also agreed to examine the possible forms of cooperation in the sphere of coordinating systems for control of communication, based on the European and Russian safety standards.
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[DETAIL_TEXT] => On October 3, in Brussels, the RF Minister of Transport Igor Levitin and the Commissioner in charge of Transport Jacques Barrot signed a joint document defining basic principles, targets and structure of Russia-EU dialogue in the sphere of transport and infrastructure.
In the signed document it is written that the dialogue is to contribute to the harmonization and mutual additions of the transport infrastructure development strategies in Russia and the EU, cooperation in development and implementation of technical rules, norms and universally recognized standards, strengthening of mutual understanding in the sphere of acting and developed legislation, as well as of the transport policy. The dialogue is to cover problems interesting for Russia and the EU.
Annual coordination meetings will be held in Russia and the EU in turn.
Ukrzaliznytsya to Be Restructured
The Ministry of Transport and Communication of Ukraine supports the initiative of the President of Ukraine about the separation of functions of the Minister of Transport and Communication and the director general of the Ukrainian State Administration of the Railway Transport "Ukrzaliznytsya".
On November 11, the president of Ukraine Viktor Yuschenko discharged the director general of the Ukrainian State Administration of Railway Transport, the Deputy Minister of Transport and Communication of Ukraine Zenko Aftanaziv, because of the post being liquidated.
Such a decision will enable to separate state and household management of the economy sectors, in particular in railway transport. Besides, it will provide more efficient and faster development of Ukraine as a transit state, start a new strategic approach to the transit policy of Ukraine and reform the state monopoly - railways.
Now the Deputy Minister of Transport is to work out and apply the tariff policy for the railway transport, coordinating it with the sea ports. He is responsible for the development of the programme of the railway sector reforms, based on the analysis of foreign experience.
To Be Continued
The RF Minister of Transport Igor Levitin recognized that the second stage of the railway transport reform is over. "The third stage will be completed in 2006-2010", he said at the meeting of the RF Government held on November 10 and devoted to the railway transport reform.
At the same time, I.Levitin offered to improve the organizational mechanism of legislative regulation on railway transport. He asked the Government to support the creation of a Department of the State Policy in the Railway Transport Sphere.
As stated at the meeting, by now, the Conception of the Corporate Building of OAO RZD has been approved. In 2004-2005, the company's Board of Directors approved 9 out of 10 discussed conceptions of reforming OAO RZD.
The only, according to the Ministry of Transport and OAO RZD, measure in the restructuring sphere which fell behind the schedule is setting apart of the passenger complex. The following plan was offered and approved at the Government's meeting. In 2006, OAO RZD gives property to the Federal Passenger Directorate and registers it as an affiliate with an independent balance. This gives it an opportunity to separate the stock of freight and passenger transportation. The President of OAO RZD Vladimir Yakunin made an interesting offer: "We believe, to decrease the budget loading in the sphere of railway transport reforms, some measures from the third stage of the reform can be taken now. I mean, the separation off and formation of a large subsidiary engaged in freight transportation, which would be attractive for foreign investors. We mean a very large company, with the possible capitalization of RUR120 bln, which could attract up to RUR60 bln for rolling stock renewal". According to V.Yakunin, that could decrease ageing and tearing of basic funds, reduce exploitation expenses and allow them to speak about tariffs reduction.
As a result of the Government meeting, all the basic statements made by the Ministry of Transport and OAO RZD were supported, and the way the reform goes was not criticized. The Prime-Minister Mikhail Fradkov summed up the discussion: "We expect that the reform will result in the formation of a market, our enterprises being used to their full capacity and a sound competition going on".
To Discuss Transport with manufacturers
On October 3 in London, OAO RZD President Vladimir Yakunin reported to the delegates attending the 7th session of the European Union-Russia Manufacturers' Round Table a series of proposals drawn up by the working group of transport specialists.
According to the members of the working group, "the transport system is the most convenient basis for perfecting integration processes, whereas specific joint operations are essential, not only to overcome existing preconceptions, but also to eliminate unsatisfactory circumstances, particularly in the legislation, which affect freight transference".
To quote Vladimir Yakunin, "the working group has a precise understanding of what should be done next and how it should be carried out in joint operation".
The specific contribution by the transportation working group is a proposal included in the resolutions of the 7th session of the European Union-Russia Manufacturers' Round Table session on the formation of a new working mechanism to overcome the problems of developing the European transport system. This refers to initial steps for the formation of an organisation to unite the transport workers of Russia and the EU, and, within this framework, solve all existing problems.
"Right now we all need the concept of a new transportation system for Greater Europe", stated Vladimir Yakunin. "This concept must be practical rather than theoretical, and, among other things, it should forsee the creation of joint organisations and cooperation on a mutually profitable basis".
According to Vladimir Yakunin, the most pressing transport problems and projects should be reflected in the concept: the development of container deliveries, high-speed traffic, further exploitation of the Trans-Siberian railway, leasing of rolling stock, etc.
Participants of the 7th session of the European Union-Russia Manufacturers' Round Table seconded the proposal made by the transportation working group under Vladimir Yakunin for the creation of four subgroups charged with the following tasks: coordination of transportation policies between Russia and the EU aimed at infrastructure development and administration of transport corridors; harmonisation of a legislative basis to cover freight transport; development and introduction of new technologies and innovations; review of the issues involving insurance and responsibilities of carriers.
Integration going on
On September 3, at the 5th conference of European Railways CEOs in Strelna(St.-Petersburg), President of OAO RZD Vladimir Yakunin stated that the company has developed a programme of measures to be taken until 2010, which can be considered as Russia's next steps towards integration.
The basic results of OAO RZD's integration into the Eurasian transport system are joint ventures being launched and service quality improved to enhance the company's competitiveness at the international market.
The programme of measures to integrate into the Eurasian transport system developed by OAO RZD includes several aspects. Firstly, it is the harmonization of the transport legislation in the Eurasian system and the simplification of border crossing procedures. "The final target is to speed up the freight transportation via the borders of neighboring states, i.e. to increase the efficiency of the commodity turnover in Europe and Asia, which will positively influence the economy of our countries", stressed President of OAO RZD Vladimir Yakunin. Secondly, they plan to create the technology of rolling stock's running in two technical systems.V. Yakunin noted "As a result, the operation expenses for international transportation, as well as delivery time, will be reduced". Besides, the technology of foreign trade cargo transportation will be improved and the cooperation with the foreign railways will be developing. As President of OAO RZD said, "Here we suggest creating universal information-logistics centers, improving the tariff policy and increasing investment activities".
Finally, the programme envisages development of international transport corridors, railway border crossings and port stations, creation of intermodal companies, and coordinating the transcontinental container transportation. Answering the question of a reporter from The RZD-Partner International magazine, the chairperson of Deutsche Bahn AG Hartmut Moedhorn said, "The need for integration is defined by the customers' interests. If the railways want to offer their clients competitive international transportation services, there is no other way out. And the demand for it has already appeared on the market".
OAO RZD Bonds at Value of RUR15 Billion Floated in One Day
Two issues of OAO RZD rouble bonds floated on November 16, 2005 at the auction on the Moscow MICEX stock exchange, total bond placement of RUR15 bln.
Two issues of OAO RZD bonds were placed: series 06 with bond turnover of 5 years (1,820 days) at a volume of RUR10 bln, and series 07 with bond turnover of 7 years (2,548 days) at a volume of RUR5 bln.
The bonds were floated at a price equal to 100% of nominal value (RUR1 thousand).
Results of tenders for the two issues of OAO RZD bonds set yield rates for the first coupon as follows: 7.35% annually for series 06 with bond redemption after 5 years; 7.55% annually for series 07 with bond redemption after 7 years.
Coupon yield rates for other coupon payment periods will be equal to the rate of the first coupon period for each bond series.
Coupon yield for OAO RZD bonds will be paid every 6 months (182 days).
A syndicate of leading banks floated OAO RZD bonds. KIT Finance Investment Bank and JP Morgan Bank acted as loan organisers. The syndicate of co-organisers was formed by Gazprombank, Petrokommertz Bank, Sberbank and TransCreditBank. Co-underwriters of the issue were Promyshlenno-stroitelny Bank, Stroikredit Bank, ABN Amro Bank, ING Bank (Eurasia), Mezhdunarodny Moskovsky Bank, NOMOS-Bank, Promsvyazbank, Citybank, Soyuz Bank and FC Megatrastoil.
The successful placement with participation by both Russian and foreign institutional investors proves its market value, and the level of profitability shows that investors perceive OAO RZD as a quasi-sovereign borrower with a very high credit rating.
Long-term funds attracted in accordance with the 2005 loans programme approved by the OAO RZD Board of directors will be directed towards repayment of the company's short-term credits with commercial banks. These credits were previously used for target financing of investment projects implemented on the principle of project financing (oil haulage to China, an automatic commercial accounting system for electrical energy, regular traffic on the line Moscow-Lyubertsy-Ramenskoye, etc.).
Circulation of OAO RZD bonds will begin on the secondary market after particulars of the issue result have been listed.
EBRD Loans Azerbaijan USD 100 Mln for Road Repairs
On September 29, the Azerbaijan Government and the European Bank for Reconstruction and Development (EBRD) signed an agreement for a USD100 mln loan to repair one of the country's main highways that runs from Baku to the Russian border.
The 15-year loan will have a three-year grace period and a rate of LIBOR+1%.
The money will be spent on reconstructing the part of the highway that runs from Sumgait to the village of Zarat. The cost of the 200 km stretch reconstruction will exceed USD280 mln.
Repairs on the remaining part of the road will be financed by the Czech Republic's Eximbank, which has already allocated USD180 mln for this purpose. The Azerbaijan Government will pay for the repair work of the first 28 km of the highway.
OAO RZD and Finmeccanica Signed Memorandum of Understanding
On September 22, President of Russian Railways (OAO RZD) Vladimir Yakunin and the head of the Italian concern Finmeccanica Pier Francesco Guarguaglini signed a Memorandum of Understanding between the companies. The Memorandum envisages cooperation in the sphere of railway transport and technologies development.
OAO RZD and Finmeccanica will create a joint working group to examine the ways to develop co-operation in the sphere of IT for speeded trains, systems of safety control on rail transport, and systems of power supply and communication.
The sides agreed to examine the possibilities to produce junctions and utilities for wagons, bogies, locomotives etc. in Russia. The sides also agreed to examine the possible forms of cooperation in the sphere of coordinating systems for control of communication, based on the European and Russian safety standards.
[~DETAIL_TEXT] => On October 3, in Brussels, the RF Minister of Transport Igor Levitin and the Commissioner in charge of Transport Jacques Barrot signed a joint document defining basic principles, targets and structure of Russia-EU dialogue in the sphere of transport and infrastructure.
In the signed document it is written that the dialogue is to contribute to the harmonization and mutual additions of the transport infrastructure development strategies in Russia and the EU, cooperation in development and implementation of technical rules, norms and universally recognized standards, strengthening of mutual understanding in the sphere of acting and developed legislation, as well as of the transport policy. The dialogue is to cover problems interesting for Russia and the EU.
Annual coordination meetings will be held in Russia and the EU in turn.
Ukrzaliznytsya to Be Restructured
The Ministry of Transport and Communication of Ukraine supports the initiative of the President of Ukraine about the separation of functions of the Minister of Transport and Communication and the director general of the Ukrainian State Administration of the Railway Transport "Ukrzaliznytsya".
On November 11, the president of Ukraine Viktor Yuschenko discharged the director general of the Ukrainian State Administration of Railway Transport, the Deputy Minister of Transport and Communication of Ukraine Zenko Aftanaziv, because of the post being liquidated.
Such a decision will enable to separate state and household management of the economy sectors, in particular in railway transport. Besides, it will provide more efficient and faster development of Ukraine as a transit state, start a new strategic approach to the transit policy of Ukraine and reform the state monopoly - railways.
Now the Deputy Minister of Transport is to work out and apply the tariff policy for the railway transport, coordinating it with the sea ports. He is responsible for the development of the programme of the railway sector reforms, based on the analysis of foreign experience.
To Be Continued
The RF Minister of Transport Igor Levitin recognized that the second stage of the railway transport reform is over. "The third stage will be completed in 2006-2010", he said at the meeting of the RF Government held on November 10 and devoted to the railway transport reform.
At the same time, I.Levitin offered to improve the organizational mechanism of legislative regulation on railway transport. He asked the Government to support the creation of a Department of the State Policy in the Railway Transport Sphere.
As stated at the meeting, by now, the Conception of the Corporate Building of OAO RZD has been approved. In 2004-2005, the company's Board of Directors approved 9 out of 10 discussed conceptions of reforming OAO RZD.
The only, according to the Ministry of Transport and OAO RZD, measure in the restructuring sphere which fell behind the schedule is setting apart of the passenger complex. The following plan was offered and approved at the Government's meeting. In 2006, OAO RZD gives property to the Federal Passenger Directorate and registers it as an affiliate with an independent balance. This gives it an opportunity to separate the stock of freight and passenger transportation. The President of OAO RZD Vladimir Yakunin made an interesting offer: "We believe, to decrease the budget loading in the sphere of railway transport reforms, some measures from the third stage of the reform can be taken now. I mean, the separation off and formation of a large subsidiary engaged in freight transportation, which would be attractive for foreign investors. We mean a very large company, with the possible capitalization of RUR120 bln, which could attract up to RUR60 bln for rolling stock renewal". According to V.Yakunin, that could decrease ageing and tearing of basic funds, reduce exploitation expenses and allow them to speak about tariffs reduction.
As a result of the Government meeting, all the basic statements made by the Ministry of Transport and OAO RZD were supported, and the way the reform goes was not criticized. The Prime-Minister Mikhail Fradkov summed up the discussion: "We expect that the reform will result in the formation of a market, our enterprises being used to their full capacity and a sound competition going on".
To Discuss Transport with manufacturers
On October 3 in London, OAO RZD President Vladimir Yakunin reported to the delegates attending the 7th session of the European Union-Russia Manufacturers' Round Table a series of proposals drawn up by the working group of transport specialists.
According to the members of the working group, "the transport system is the most convenient basis for perfecting integration processes, whereas specific joint operations are essential, not only to overcome existing preconceptions, but also to eliminate unsatisfactory circumstances, particularly in the legislation, which affect freight transference".
To quote Vladimir Yakunin, "the working group has a precise understanding of what should be done next and how it should be carried out in joint operation".
The specific contribution by the transportation working group is a proposal included in the resolutions of the 7th session of the European Union-Russia Manufacturers' Round Table session on the formation of a new working mechanism to overcome the problems of developing the European transport system. This refers to initial steps for the formation of an organisation to unite the transport workers of Russia and the EU, and, within this framework, solve all existing problems.
"Right now we all need the concept of a new transportation system for Greater Europe", stated Vladimir Yakunin. "This concept must be practical rather than theoretical, and, among other things, it should forsee the creation of joint organisations and cooperation on a mutually profitable basis".
According to Vladimir Yakunin, the most pressing transport problems and projects should be reflected in the concept: the development of container deliveries, high-speed traffic, further exploitation of the Trans-Siberian railway, leasing of rolling stock, etc.
Participants of the 7th session of the European Union-Russia Manufacturers' Round Table seconded the proposal made by the transportation working group under Vladimir Yakunin for the creation of four subgroups charged with the following tasks: coordination of transportation policies between Russia and the EU aimed at infrastructure development and administration of transport corridors; harmonisation of a legislative basis to cover freight transport; development and introduction of new technologies and innovations; review of the issues involving insurance and responsibilities of carriers.
Integration going on
On September 3, at the 5th conference of European Railways CEOs in Strelna(St.-Petersburg), President of OAO RZD Vladimir Yakunin stated that the company has developed a programme of measures to be taken until 2010, which can be considered as Russia's next steps towards integration.
The basic results of OAO RZD's integration into the Eurasian transport system are joint ventures being launched and service quality improved to enhance the company's competitiveness at the international market.
The programme of measures to integrate into the Eurasian transport system developed by OAO RZD includes several aspects. Firstly, it is the harmonization of the transport legislation in the Eurasian system and the simplification of border crossing procedures. "The final target is to speed up the freight transportation via the borders of neighboring states, i.e. to increase the efficiency of the commodity turnover in Europe and Asia, which will positively influence the economy of our countries", stressed President of OAO RZD Vladimir Yakunin. Secondly, they plan to create the technology of rolling stock's running in two technical systems.V. Yakunin noted "As a result, the operation expenses for international transportation, as well as delivery time, will be reduced". Besides, the technology of foreign trade cargo transportation will be improved and the cooperation with the foreign railways will be developing. As President of OAO RZD said, "Here we suggest creating universal information-logistics centers, improving the tariff policy and increasing investment activities".
Finally, the programme envisages development of international transport corridors, railway border crossings and port stations, creation of intermodal companies, and coordinating the transcontinental container transportation. Answering the question of a reporter from The RZD-Partner International magazine, the chairperson of Deutsche Bahn AG Hartmut Moedhorn said, "The need for integration is defined by the customers' interests. If the railways want to offer their clients competitive international transportation services, there is no other way out. And the demand for it has already appeared on the market".
OAO RZD Bonds at Value of RUR15 Billion Floated in One Day
Two issues of OAO RZD rouble bonds floated on November 16, 2005 at the auction on the Moscow MICEX stock exchange, total bond placement of RUR15 bln.
Two issues of OAO RZD bonds were placed: series 06 with bond turnover of 5 years (1,820 days) at a volume of RUR10 bln, and series 07 with bond turnover of 7 years (2,548 days) at a volume of RUR5 bln.
The bonds were floated at a price equal to 100% of nominal value (RUR1 thousand).
Results of tenders for the two issues of OAO RZD bonds set yield rates for the first coupon as follows: 7.35% annually for series 06 with bond redemption after 5 years; 7.55% annually for series 07 with bond redemption after 7 years.
Coupon yield rates for other coupon payment periods will be equal to the rate of the first coupon period for each bond series.
Coupon yield for OAO RZD bonds will be paid every 6 months (182 days).
A syndicate of leading banks floated OAO RZD bonds. KIT Finance Investment Bank and JP Morgan Bank acted as loan organisers. The syndicate of co-organisers was formed by Gazprombank, Petrokommertz Bank, Sberbank and TransCreditBank. Co-underwriters of the issue were Promyshlenno-stroitelny Bank, Stroikredit Bank, ABN Amro Bank, ING Bank (Eurasia), Mezhdunarodny Moskovsky Bank, NOMOS-Bank, Promsvyazbank, Citybank, Soyuz Bank and FC Megatrastoil.
The successful placement with participation by both Russian and foreign institutional investors proves its market value, and the level of profitability shows that investors perceive OAO RZD as a quasi-sovereign borrower with a very high credit rating.
Long-term funds attracted in accordance with the 2005 loans programme approved by the OAO RZD Board of directors will be directed towards repayment of the company's short-term credits with commercial banks. These credits were previously used for target financing of investment projects implemented on the principle of project financing (oil haulage to China, an automatic commercial accounting system for electrical energy, regular traffic on the line Moscow-Lyubertsy-Ramenskoye, etc.).
Circulation of OAO RZD bonds will begin on the secondary market after particulars of the issue result have been listed.
EBRD Loans Azerbaijan USD 100 Mln for Road Repairs
On September 29, the Azerbaijan Government and the European Bank for Reconstruction and Development (EBRD) signed an agreement for a USD100 mln loan to repair one of the country's main highways that runs from Baku to the Russian border.
The 15-year loan will have a three-year grace period and a rate of LIBOR+1%.
The money will be spent on reconstructing the part of the highway that runs from Sumgait to the village of Zarat. The cost of the 200 km stretch reconstruction will exceed USD280 mln.
Repairs on the remaining part of the road will be financed by the Czech Republic's Eximbank, which has already allocated USD180 mln for this purpose. The Azerbaijan Government will pay for the repair work of the first 28 km of the highway.
OAO RZD and Finmeccanica Signed Memorandum of Understanding
On September 22, President of Russian Railways (OAO RZD) Vladimir Yakunin and the head of the Italian concern Finmeccanica Pier Francesco Guarguaglini signed a Memorandum of Understanding between the companies. The Memorandum envisages cooperation in the sphere of railway transport and technologies development.
OAO RZD and Finmeccanica will create a joint working group to examine the ways to develop co-operation in the sphere of IT for speeded trains, systems of safety control on rail transport, and systems of power supply and communication.
The sides agreed to examine the possibilities to produce junctions and utilities for wagons, bogies, locomotives etc. in Russia. The sides also agreed to examine the possible forms of cooperation in the sphere of coordinating systems for control of communication, based on the European and Russian safety standards.
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General Director "Delo-Center" JSC |
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[DETAIL_TEXT] => Under the conditions of a new model of the world economy development being formed, transport becomes a significant instrument of integration. Besides its own export-import operations, Russia aspires to use its territory as an inseparable part of the international transport corridors linking the markets of Europe, China, India and South-Eastern Asia. That is why the task of forming a developed and properly integrated into the world transport system is vital.
At the summit of the countries participants of the Asian-Pacific Economic Union in November, Russia proved its intention to join the WTO. We realize pretty well that taking such a step means re-considering customs duties on import industrial and agricultural goods, and we are certain that acceptable agreements between our country and its partners can be achieved. In the view of such events, transport market participants can see a certain perspective for a further development of the sector, i.e. increase of goods import and cargo transit.
"Delo" group has been working on the transport-forwarding market for 12 years. Being a holding, "Delo" comprises 14 companies specializing in different areas. Our companies provide different sorts of services on handling, forwarding, customs registration of export-import cargo, railway and multimodal transportation organization, container transportation, insurance, and oil and oil products handling. The geography of our business is wide, but our priority direction is the South of Russia.
In recent years Krasnodar region has become one of the most powerful transport centers of Russia. This region shows a great economic potential, being part of the international transport corridor "North-South". The port of Novorossiysk alone handles 30% of export Russian oil, 70% of grain, 25% of steel and 25% of imported sugar.
Container transportation is one of the most dynamically developing modes now. The annual growth of container turnover in the Russian market is about 25%. This transportation market longs for changes: from quantity to quality. Containers are a sort of "hi-tech" of the transportation market. They appeared only in the late 1950ies and stated to be widely used quite recently - 15-20 years ago, when the infrastructure was developed enough to start their mass handling. One of the examples of a specialized container terminal is Novorossiysk Junction Transport and Forwarding Enterprise (NUTEP). This terminal is of large capacity: the first stage was already launched, and block-trains of high freight-carrying capacity are being serviced. The turnover of "NUTEP" JSC for 9 months of 2005 made 40.75 thousand TEU, with the increase of 102.8% year-on-year. This project goes hand in hand with the Transport strategy of Russia developed for the period up to 2020, which focuses on the port capacities enhance.
One of the factors restricting the growth of container turnover in ports is the limited space for terminal operations. This problem can be solved by constructing transport-logistic centers located out of the port areas. It has become a typical practice now that port terminal owners finance the whole complex of works on their port infrastructure modernization, including its railway and motor components. Our company is ready to participate in such projects; moreover, business and the state cooperation on the terms of publlic-private partnership is officially claimed by the Law "On concession agreements". This document envisages certain limitations, but it can still be called a form of compromise. Most importantly, the state gives certain guarantees of the capital safety and certain directions for development.
Our company is interested in the project in the port of Novorossyisk which has to do with constructing a big port terminal to handle dry bulk. Our construction site can become the area of 50 hectares in Tsemdolina village located 4 kilometers away from the port of Novorossyisk. In our experts' experience, it would be worthwhile to construct a logistic center on the base of the above-mentioned terminal, which, in its turn, would become an absolute leader on the market of this sort of services, including forwarding, contracting etc.
Our transport sector lag in technological and infrastructure data could become a serious hindrance on the way to the economic development of Russia. The biggest companies have already realized the necessity to invest into the transport sector. The market participants note that the container market growth in Russia stimulated business activities of transport market players and attracted investors' attention, who are ready to invest into infrastructure development.
The Russian transit potential has been widely discussed for a long time. This potential implementation is closely connected with the solution of the tasks that the transport infrastructure development programme promotes and that concern foreign trade cargo flows. Investment into transport infrastructure is one of key national projects. Transport is a sort of locomotive capable to haul a great number of industries on the way of development, to activate economic activities of the regions, to raise our population life-standards and assist in the solution of social-economic problems.
[~DETAIL_TEXT] => Under the conditions of a new model of the world economy development being formed, transport becomes a significant instrument of integration. Besides its own export-import operations, Russia aspires to use its territory as an inseparable part of the international transport corridors linking the markets of Europe, China, India and South-Eastern Asia. That is why the task of forming a developed and properly integrated into the world transport system is vital.
At the summit of the countries participants of the Asian-Pacific Economic Union in November, Russia proved its intention to join the WTO. We realize pretty well that taking such a step means re-considering customs duties on import industrial and agricultural goods, and we are certain that acceptable agreements between our country and its partners can be achieved. In the view of such events, transport market participants can see a certain perspective for a further development of the sector, i.e. increase of goods import and cargo transit.
"Delo" group has been working on the transport-forwarding market for 12 years. Being a holding, "Delo" comprises 14 companies specializing in different areas. Our companies provide different sorts of services on handling, forwarding, customs registration of export-import cargo, railway and multimodal transportation organization, container transportation, insurance, and oil and oil products handling. The geography of our business is wide, but our priority direction is the South of Russia.
In recent years Krasnodar region has become one of the most powerful transport centers of Russia. This region shows a great economic potential, being part of the international transport corridor "North-South". The port of Novorossiysk alone handles 30% of export Russian oil, 70% of grain, 25% of steel and 25% of imported sugar.
Container transportation is one of the most dynamically developing modes now. The annual growth of container turnover in the Russian market is about 25%. This transportation market longs for changes: from quantity to quality. Containers are a sort of "hi-tech" of the transportation market. They appeared only in the late 1950ies and stated to be widely used quite recently - 15-20 years ago, when the infrastructure was developed enough to start their mass handling. One of the examples of a specialized container terminal is Novorossiysk Junction Transport and Forwarding Enterprise (NUTEP). This terminal is of large capacity: the first stage was already launched, and block-trains of high freight-carrying capacity are being serviced. The turnover of "NUTEP" JSC for 9 months of 2005 made 40.75 thousand TEU, with the increase of 102.8% year-on-year. This project goes hand in hand with the Transport strategy of Russia developed for the period up to 2020, which focuses on the port capacities enhance.
One of the factors restricting the growth of container turnover in ports is the limited space for terminal operations. This problem can be solved by constructing transport-logistic centers located out of the port areas. It has become a typical practice now that port terminal owners finance the whole complex of works on their port infrastructure modernization, including its railway and motor components. Our company is ready to participate in such projects; moreover, business and the state cooperation on the terms of publlic-private partnership is officially claimed by the Law "On concession agreements". This document envisages certain limitations, but it can still be called a form of compromise. Most importantly, the state gives certain guarantees of the capital safety and certain directions for development.
Our company is interested in the project in the port of Novorossyisk which has to do with constructing a big port terminal to handle dry bulk. Our construction site can become the area of 50 hectares in Tsemdolina village located 4 kilometers away from the port of Novorossyisk. In our experts' experience, it would be worthwhile to construct a logistic center on the base of the above-mentioned terminal, which, in its turn, would become an absolute leader on the market of this sort of services, including forwarding, contracting etc.
Our transport sector lag in technological and infrastructure data could become a serious hindrance on the way to the economic development of Russia. The biggest companies have already realized the necessity to invest into the transport sector. The market participants note that the container market growth in Russia stimulated business activities of transport market players and attracted investors' attention, who are ready to invest into infrastructure development.
The Russian transit potential has been widely discussed for a long time. This potential implementation is closely connected with the solution of the tasks that the transport infrastructure development programme promotes and that concern foreign trade cargo flows. Investment into transport infrastructure is one of key national projects. Transport is a sort of locomotive capable to haul a great number of industries on the way of development, to activate economic activities of the regions, to raise our population life-standards and assist in the solution of social-economic problems.
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General Director "Delo-Center" JSC |
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General Director "Delo-Center" JSC |
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[DETAIL_TEXT] => Under the conditions of a new model of the world economy development being formed, transport becomes a significant instrument of integration. Besides its own export-import operations, Russia aspires to use its territory as an inseparable part of the international transport corridors linking the markets of Europe, China, India and South-Eastern Asia. That is why the task of forming a developed and properly integrated into the world transport system is vital.
At the summit of the countries participants of the Asian-Pacific Economic Union in November, Russia proved its intention to join the WTO. We realize pretty well that taking such a step means re-considering customs duties on import industrial and agricultural goods, and we are certain that acceptable agreements between our country and its partners can be achieved. In the view of such events, transport market participants can see a certain perspective for a further development of the sector, i.e. increase of goods import and cargo transit.
"Delo" group has been working on the transport-forwarding market for 12 years. Being a holding, "Delo" comprises 14 companies specializing in different areas. Our companies provide different sorts of services on handling, forwarding, customs registration of export-import cargo, railway and multimodal transportation organization, container transportation, insurance, and oil and oil products handling. The geography of our business is wide, but our priority direction is the South of Russia.
In recent years Krasnodar region has become one of the most powerful transport centers of Russia. This region shows a great economic potential, being part of the international transport corridor "North-South". The port of Novorossiysk alone handles 30% of export Russian oil, 70% of grain, 25% of steel and 25% of imported sugar.
Container transportation is one of the most dynamically developing modes now. The annual growth of container turnover in the Russian market is about 25%. This transportation market longs for changes: from quantity to quality. Containers are a sort of "hi-tech" of the transportation market. They appeared only in the late 1950ies and stated to be widely used quite recently - 15-20 years ago, when the infrastructure was developed enough to start their mass handling. One of the examples of a specialized container terminal is Novorossiysk Junction Transport and Forwarding Enterprise (NUTEP). This terminal is of large capacity: the first stage was already launched, and block-trains of high freight-carrying capacity are being serviced. The turnover of "NUTEP" JSC for 9 months of 2005 made 40.75 thousand TEU, with the increase of 102.8% year-on-year. This project goes hand in hand with the Transport strategy of Russia developed for the period up to 2020, which focuses on the port capacities enhance.
One of the factors restricting the growth of container turnover in ports is the limited space for terminal operations. This problem can be solved by constructing transport-logistic centers located out of the port areas. It has become a typical practice now that port terminal owners finance the whole complex of works on their port infrastructure modernization, including its railway and motor components. Our company is ready to participate in such projects; moreover, business and the state cooperation on the terms of publlic-private partnership is officially claimed by the Law "On concession agreements". This document envisages certain limitations, but it can still be called a form of compromise. Most importantly, the state gives certain guarantees of the capital safety and certain directions for development.
Our company is interested in the project in the port of Novorossyisk which has to do with constructing a big port terminal to handle dry bulk. Our construction site can become the area of 50 hectares in Tsemdolina village located 4 kilometers away from the port of Novorossyisk. In our experts' experience, it would be worthwhile to construct a logistic center on the base of the above-mentioned terminal, which, in its turn, would become an absolute leader on the market of this sort of services, including forwarding, contracting etc.
Our transport sector lag in technological and infrastructure data could become a serious hindrance on the way to the economic development of Russia. The biggest companies have already realized the necessity to invest into the transport sector. The market participants note that the container market growth in Russia stimulated business activities of transport market players and attracted investors' attention, who are ready to invest into infrastructure development.
The Russian transit potential has been widely discussed for a long time. This potential implementation is closely connected with the solution of the tasks that the transport infrastructure development programme promotes and that concern foreign trade cargo flows. Investment into transport infrastructure is one of key national projects. Transport is a sort of locomotive capable to haul a great number of industries on the way of development, to activate economic activities of the regions, to raise our population life-standards and assist in the solution of social-economic problems.
[~DETAIL_TEXT] => Under the conditions of a new model of the world economy development being formed, transport becomes a significant instrument of integration. Besides its own export-import operations, Russia aspires to use its territory as an inseparable part of the international transport corridors linking the markets of Europe, China, India and South-Eastern Asia. That is why the task of forming a developed and properly integrated into the world transport system is vital.
At the summit of the countries participants of the Asian-Pacific Economic Union in November, Russia proved its intention to join the WTO. We realize pretty well that taking such a step means re-considering customs duties on import industrial and agricultural goods, and we are certain that acceptable agreements between our country and its partners can be achieved. In the view of such events, transport market participants can see a certain perspective for a further development of the sector, i.e. increase of goods import and cargo transit.
"Delo" group has been working on the transport-forwarding market for 12 years. Being a holding, "Delo" comprises 14 companies specializing in different areas. Our companies provide different sorts of services on handling, forwarding, customs registration of export-import cargo, railway and multimodal transportation organization, container transportation, insurance, and oil and oil products handling. The geography of our business is wide, but our priority direction is the South of Russia.
In recent years Krasnodar region has become one of the most powerful transport centers of Russia. This region shows a great economic potential, being part of the international transport corridor "North-South". The port of Novorossiysk alone handles 30% of export Russian oil, 70% of grain, 25% of steel and 25% of imported sugar.
Container transportation is one of the most dynamically developing modes now. The annual growth of container turnover in the Russian market is about 25%. This transportation market longs for changes: from quantity to quality. Containers are a sort of "hi-tech" of the transportation market. They appeared only in the late 1950ies and stated to be widely used quite recently - 15-20 years ago, when the infrastructure was developed enough to start their mass handling. One of the examples of a specialized container terminal is Novorossiysk Junction Transport and Forwarding Enterprise (NUTEP). This terminal is of large capacity: the first stage was already launched, and block-trains of high freight-carrying capacity are being serviced. The turnover of "NUTEP" JSC for 9 months of 2005 made 40.75 thousand TEU, with the increase of 102.8% year-on-year. This project goes hand in hand with the Transport strategy of Russia developed for the period up to 2020, which focuses on the port capacities enhance.
One of the factors restricting the growth of container turnover in ports is the limited space for terminal operations. This problem can be solved by constructing transport-logistic centers located out of the port areas. It has become a typical practice now that port terminal owners finance the whole complex of works on their port infrastructure modernization, including its railway and motor components. Our company is ready to participate in such projects; moreover, business and the state cooperation on the terms of publlic-private partnership is officially claimed by the Law "On concession agreements". This document envisages certain limitations, but it can still be called a form of compromise. Most importantly, the state gives certain guarantees of the capital safety and certain directions for development.
Our company is interested in the project in the port of Novorossyisk which has to do with constructing a big port terminal to handle dry bulk. Our construction site can become the area of 50 hectares in Tsemdolina village located 4 kilometers away from the port of Novorossyisk. In our experts' experience, it would be worthwhile to construct a logistic center on the base of the above-mentioned terminal, which, in its turn, would become an absolute leader on the market of this sort of services, including forwarding, contracting etc.
Our transport sector lag in technological and infrastructure data could become a serious hindrance on the way to the economic development of Russia. The biggest companies have already realized the necessity to invest into the transport sector. The market participants note that the container market growth in Russia stimulated business activities of transport market players and attracted investors' attention, who are ready to invest into infrastructure development.
The Russian transit potential has been widely discussed for a long time. This potential implementation is closely connected with the solution of the tasks that the transport infrastructure development programme promotes and that concern foreign trade cargo flows. Investment into transport infrastructure is one of key national projects. Transport is a sort of locomotive capable to haul a great number of industries on the way of development, to activate economic activities of the regions, to raise our population life-standards and assist in the solution of social-economic problems.
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General Director "Delo-Center" JSC |
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General Director "Delo-Center" JSC |
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Truck - New Transport Leader
The distinguishing peculiarity of transport connection between China and its main trade partners is the dominating position of sea transport. As a consequence, the biggest part of cargo is exported from the country by sea. However, the current terminal capacity cannot cope with the constantly growing freight flow. Moreover, the charter rates on the sea transport have considerably grown during the last few years; which largely reduces the possibilities of using it by state cargo producers.
From the economical point of view, transportation by air appears to be low-profitable as well. "We sell to Europe perishable raw materials for cosmetic products; for this reason we have no choice but to use air transport, and we have to pay USD 6 per kilogram of the cargo transported", says a representative of one of the Chinese companies.
Using regular railway communication for foreign cargoes transportation could become a possible alternative. But, according to some opinions, the Trans-Siberian railway, running across the territory of Russia, will not be able to handle the transportation of more than 300-400 tons of freight, whereas China plans to export to Europe more than a million tons of different cargoes. This induces the Chinese producers to search for new ways and possibilities of exporting their goods.
The China Road Transport Assosiation (CRTA) entering the International Road Transport Union (IRU), which followed China's joining the International Trade Organisation, has enlarged the horizons for a more fruitful collaboration and confirmed the wish of the most populous country of the world to participate more actively in logistic activities concerned with international trade. This fact couldn't have passed unnoticed in the countries ready to become potential partners of Chinese cargo producers and take an active part in creating an on-land transport corridor to open "a window to Europe" for the countries of South-Eastern Asia.
"Having carried out an in-depth analisys of Chinese foreign commerce activity, we came to a conclusion that a large part of cargoes can be exported by road transport. First of all, we are speaking about goods of high prime cost for a product unit, goods in need of a quick "door-to-door" delivery, and goods requiring careful transportation", says Igor Runov, IRU General Delegate to the CIS countries.
The Union of International Road Transport Carriers of the Republic of Kazakhstan (KazATO) organized and inspired the experimental container truck caravan named "Project 3B" (Beijing-Berlin-Brussels). According to Kazakhstan truck drivers' calculations, a crew consisting of only two drivers is able to deliver cargo form the Chinese-Kazakh border to Berlin in 10-12 days. With all this going on, the prime cost of one "there-and-back" trip will come to approximately USD 4600, 50% of which will be spent on fuel, 25% - on the drivers' salary, and the rest 25% - on the vehicle technical maintenance and repair, payments for using the infrastructure and other expenses. For the sake of comparison, freight charges for the transportation of one container from Beijing to Berlin by sea (through Hamburg seaport) amounts to USD 5500.
Combining the interests
The international truck caravan "Beijing-Berlin-Brussels" started in a town named Horgos on 27 September, 2005 within the frames of the Third Eurasian Conference on Transport.
Commercial sectors, as well as state bodies of different countries, showed their big interest in the project of Kazakhstan truck haulers. The Kazakh Government has recently adopted the programme "New Eurasian Transport Initiative" (NELTY), which envisages the construction of a new road network with the help of German, Italian, Korean and Iranian compnies. Goods produced in China will have a special permission for a green customs corridor.
Truck haulage associations of Latvia, Lithuania and Poland expressed their deep interest in launching the project. "After Latvia's entering the EU and after the abolition of customs borders between the EU countries, the speed of transportation has alarmingly increased. As a consequence, part of road transport companies' potential apppeared to be idle, and we hope that the new transport corridor will make it possible to use these reserves", Valdis Trezinsh, the president of Latvian International Road Transport Association "Latvijas Auto" shares his views with the reporter of The RZD-Partner International.
American businessmen are interested in creating a new transport route between Europe and South-Eastern Asia in the same way as the EU countries and Kazakhstan. These days the Chinese cargoes are transported to the USA by sea, using the ports of the Western Coast. These seaports do not cope with the cargo flow due to the limited capacity of the branch railway lines. Calculating transportation costs using the new logistic scheme, the Americans realised that it would be much more profitable to carry the cargoes by land from South-Eastern Asia to the ports of the Mediterranian and the Baltic Sea, and then to transport them to the Eastern ports of the North-American continent. So, the fact that the representatives of the United States Chamber of Commerce were looking forward to the truck caravan arrival to Brussels was not a coincidence.
Russian truck haulers also showed an intensive interest in the "Project 3B". They believe that using the small part of the Russian-Chinese border in the area of Gornyj Altaj and the Nothern Chinese province Sintszyan will be one of the prospective ways for "Project 3B" to develop. This will enable Russia and China to establish direct road transport communication.
Problems or optimism
In prospect of development of the on-land route from China to Europe, which became palpable thanks to the road race "Project 3B", there arose the challenging issue of rivalry with the international corridor TRACEKA, currently constructed across Middle Asia and Turkey. According to the former deputy minister of transport of the RF, currently in the position of Chairman of the Intergovernmental Road Workers Council of the CIS countries, Evgeniy Kazantsev, TRACEKA is a very promising transport route from China to Europe and a dangerous rival to the Russian parts of the International transport corridor.
"We shouldn't close our eyes to this fact. TRACEKA is a very strong competitor, and a very profitable route from the economic point of view", he says.
Apart from the competition with the Asian-Mediterranean corridor, there are a lot of problems connected with crossing the borders. The recent customs stoppage at the Russian-Kazakh border, village Troitskoe, Chelyabinsk area, came to 16 hours. A banal outage of the cargo volume carried by the participants of the road race was the reason. In spite of the fact that the customs bodies of the RF called the above mentioned incident a misunderstanding, the representatives of the Ministry of Economic Development and Trade, which coordinates the Federal Customs Service, agreed that 16 hours was an excessively long period for an investigation of the matter of international importance.
It is fair to say that long stoppages at Russian borders are not only the customs officials' fault. The capacities of Russian road transport infrastructure are restricted; and the roads on the way to the customs posts very often become as narrow as a neck of a bottle. This problem will be solved in the near future though. According to the Director of the Road and Municipal Passenger Transport Policy Department of the Russian Ministry of Transport Evgeniy Moskvichev, in 2006 the Federal Road Agency has to prepare projects on special roads to approach the main posts, and then to withdraw money from the state budget to make five- or six-lined roads with the required quantity of "road pockets" at these posts.
As it happened before, the issues of visas for drivers, fuel prices and safety during transportation cause intense anxiety to road transport companies. The fact that China is closed is a separate problem. At present it is hardly possible for foreigners to move around the territory of this country freely.
However, as the well-known adage says, the first attempt is the most difficult. Probably, for this reason, despite the fact that for many businessmen China was and continues to be terra incognita, their interest in trade business with this country is very deep. This means that there is a chance to re-construct the Silk Road famous in the old days.
GERMAN NUTELS
[~DETAIL_TEXT] =>
Truck - New Transport Leader
The distinguishing peculiarity of transport connection between China and its main trade partners is the dominating position of sea transport. As a consequence, the biggest part of cargo is exported from the country by sea. However, the current terminal capacity cannot cope with the constantly growing freight flow. Moreover, the charter rates on the sea transport have considerably grown during the last few years; which largely reduces the possibilities of using it by state cargo producers.
From the economical point of view, transportation by air appears to be low-profitable as well. "We sell to Europe perishable raw materials for cosmetic products; for this reason we have no choice but to use air transport, and we have to pay USD 6 per kilogram of the cargo transported", says a representative of one of the Chinese companies.
Using regular railway communication for foreign cargoes transportation could become a possible alternative. But, according to some opinions, the Trans-Siberian railway, running across the territory of Russia, will not be able to handle the transportation of more than 300-400 tons of freight, whereas China plans to export to Europe more than a million tons of different cargoes. This induces the Chinese producers to search for new ways and possibilities of exporting their goods.
The China Road Transport Assosiation (CRTA) entering the International Road Transport Union (IRU), which followed China's joining the International Trade Organisation, has enlarged the horizons for a more fruitful collaboration and confirmed the wish of the most populous country of the world to participate more actively in logistic activities concerned with international trade. This fact couldn't have passed unnoticed in the countries ready to become potential partners of Chinese cargo producers and take an active part in creating an on-land transport corridor to open "a window to Europe" for the countries of South-Eastern Asia.
"Having carried out an in-depth analisys of Chinese foreign commerce activity, we came to a conclusion that a large part of cargoes can be exported by road transport. First of all, we are speaking about goods of high prime cost for a product unit, goods in need of a quick "door-to-door" delivery, and goods requiring careful transportation", says Igor Runov, IRU General Delegate to the CIS countries.
The Union of International Road Transport Carriers of the Republic of Kazakhstan (KazATO) organized and inspired the experimental container truck caravan named "Project 3B" (Beijing-Berlin-Brussels). According to Kazakhstan truck drivers' calculations, a crew consisting of only two drivers is able to deliver cargo form the Chinese-Kazakh border to Berlin in 10-12 days. With all this going on, the prime cost of one "there-and-back" trip will come to approximately USD 4600, 50% of which will be spent on fuel, 25% - on the drivers' salary, and the rest 25% - on the vehicle technical maintenance and repair, payments for using the infrastructure and other expenses. For the sake of comparison, freight charges for the transportation of one container from Beijing to Berlin by sea (through Hamburg seaport) amounts to USD 5500.
Combining the interests
The international truck caravan "Beijing-Berlin-Brussels" started in a town named Horgos on 27 September, 2005 within the frames of the Third Eurasian Conference on Transport.
Commercial sectors, as well as state bodies of different countries, showed their big interest in the project of Kazakhstan truck haulers. The Kazakh Government has recently adopted the programme "New Eurasian Transport Initiative" (NELTY), which envisages the construction of a new road network with the help of German, Italian, Korean and Iranian compnies. Goods produced in China will have a special permission for a green customs corridor.
Truck haulage associations of Latvia, Lithuania and Poland expressed their deep interest in launching the project. "After Latvia's entering the EU and after the abolition of customs borders between the EU countries, the speed of transportation has alarmingly increased. As a consequence, part of road transport companies' potential apppeared to be idle, and we hope that the new transport corridor will make it possible to use these reserves", Valdis Trezinsh, the president of Latvian International Road Transport Association "Latvijas Auto" shares his views with the reporter of The RZD-Partner International.
American businessmen are interested in creating a new transport route between Europe and South-Eastern Asia in the same way as the EU countries and Kazakhstan. These days the Chinese cargoes are transported to the USA by sea, using the ports of the Western Coast. These seaports do not cope with the cargo flow due to the limited capacity of the branch railway lines. Calculating transportation costs using the new logistic scheme, the Americans realised that it would be much more profitable to carry the cargoes by land from South-Eastern Asia to the ports of the Mediterranian and the Baltic Sea, and then to transport them to the Eastern ports of the North-American continent. So, the fact that the representatives of the United States Chamber of Commerce were looking forward to the truck caravan arrival to Brussels was not a coincidence.
Russian truck haulers also showed an intensive interest in the "Project 3B". They believe that using the small part of the Russian-Chinese border in the area of Gornyj Altaj and the Nothern Chinese province Sintszyan will be one of the prospective ways for "Project 3B" to develop. This will enable Russia and China to establish direct road transport communication.
Problems or optimism
In prospect of development of the on-land route from China to Europe, which became palpable thanks to the road race "Project 3B", there arose the challenging issue of rivalry with the international corridor TRACEKA, currently constructed across Middle Asia and Turkey. According to the former deputy minister of transport of the RF, currently in the position of Chairman of the Intergovernmental Road Workers Council of the CIS countries, Evgeniy Kazantsev, TRACEKA is a very promising transport route from China to Europe and a dangerous rival to the Russian parts of the International transport corridor.
"We shouldn't close our eyes to this fact. TRACEKA is a very strong competitor, and a very profitable route from the economic point of view", he says.
Apart from the competition with the Asian-Mediterranean corridor, there are a lot of problems connected with crossing the borders. The recent customs stoppage at the Russian-Kazakh border, village Troitskoe, Chelyabinsk area, came to 16 hours. A banal outage of the cargo volume carried by the participants of the road race was the reason. In spite of the fact that the customs bodies of the RF called the above mentioned incident a misunderstanding, the representatives of the Ministry of Economic Development and Trade, which coordinates the Federal Customs Service, agreed that 16 hours was an excessively long period for an investigation of the matter of international importance.
It is fair to say that long stoppages at Russian borders are not only the customs officials' fault. The capacities of Russian road transport infrastructure are restricted; and the roads on the way to the customs posts very often become as narrow as a neck of a bottle. This problem will be solved in the near future though. According to the Director of the Road and Municipal Passenger Transport Policy Department of the Russian Ministry of Transport Evgeniy Moskvichev, in 2006 the Federal Road Agency has to prepare projects on special roads to approach the main posts, and then to withdraw money from the state budget to make five- or six-lined roads with the required quantity of "road pockets" at these posts.
As it happened before, the issues of visas for drivers, fuel prices and safety during transportation cause intense anxiety to road transport companies. The fact that China is closed is a separate problem. At present it is hardly possible for foreigners to move around the territory of this country freely.
However, as the well-known adage says, the first attempt is the most difficult. Probably, for this reason, despite the fact that for many businessmen China was and continues to be terra incognita, their interest in trade business with this country is very deep. This means that there is a chance to re-construct the Silk Road famous in the old days.
GERMAN NUTELS
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[PREVIEW_TEXT] => With this slogan the international road race along the route "Beijing-Berlin-Brussels", aiming to connect China with the EU countries by means of effective freight road transport communication, finished in the capital of Belgium in the middle of October. Will the successfully completed project become a new transport bridgebetween Europe and Asia?
[~PREVIEW_TEXT] => With this slogan the international road race along the route "Beijing-Berlin-Brussels", aiming to connect China with the EU countries by means of effective freight road transport communication, finished in the capital of Belgium in the middle of October. Will the successfully completed project become a new transport bridgebetween Europe and Asia?
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Truck - New Transport Leader
The distinguishing peculiarity of transport connection between China and its main trade partners is the dominating position of sea transport. As a consequence, the biggest part of cargo is exported from the country by sea. However, the current terminal capacity cannot cope with the constantly growing freight flow. Moreover, the charter rates on the sea transport have considerably grown during the last few years; which largely reduces the possibilities of using it by state cargo producers.
From the economical point of view, transportation by air appears to be low-profitable as well. "We sell to Europe perishable raw materials for cosmetic products; for this reason we have no choice but to use air transport, and we have to pay USD 6 per kilogram of the cargo transported", says a representative of one of the Chinese companies.
Using regular railway communication for foreign cargoes transportation could become a possible alternative. But, according to some opinions, the Trans-Siberian railway, running across the territory of Russia, will not be able to handle the transportation of more than 300-400 tons of freight, whereas China plans to export to Europe more than a million tons of different cargoes. This induces the Chinese producers to search for new ways and possibilities of exporting their goods.
The China Road Transport Assosiation (CRTA) entering the International Road Transport Union (IRU), which followed China's joining the International Trade Organisation, has enlarged the horizons for a more fruitful collaboration and confirmed the wish of the most populous country of the world to participate more actively in logistic activities concerned with international trade. This fact couldn't have passed unnoticed in the countries ready to become potential partners of Chinese cargo producers and take an active part in creating an on-land transport corridor to open "a window to Europe" for the countries of South-Eastern Asia.
"Having carried out an in-depth analisys of Chinese foreign commerce activity, we came to a conclusion that a large part of cargoes can be exported by road transport. First of all, we are speaking about goods of high prime cost for a product unit, goods in need of a quick "door-to-door" delivery, and goods requiring careful transportation", says Igor Runov, IRU General Delegate to the CIS countries.
The Union of International Road Transport Carriers of the Republic of Kazakhstan (KazATO) organized and inspired the experimental container truck caravan named "Project 3B" (Beijing-Berlin-Brussels). According to Kazakhstan truck drivers' calculations, a crew consisting of only two drivers is able to deliver cargo form the Chinese-Kazakh border to Berlin in 10-12 days. With all this going on, the prime cost of one "there-and-back" trip will come to approximately USD 4600, 50% of which will be spent on fuel, 25% - on the drivers' salary, and the rest 25% - on the vehicle technical maintenance and repair, payments for using the infrastructure and other expenses. For the sake of comparison, freight charges for the transportation of one container from Beijing to Berlin by sea (through Hamburg seaport) amounts to USD 5500.
Combining the interests
The international truck caravan "Beijing-Berlin-Brussels" started in a town named Horgos on 27 September, 2005 within the frames of the Third Eurasian Conference on Transport.
Commercial sectors, as well as state bodies of different countries, showed their big interest in the project of Kazakhstan truck haulers. The Kazakh Government has recently adopted the programme "New Eurasian Transport Initiative" (NELTY), which envisages the construction of a new road network with the help of German, Italian, Korean and Iranian compnies. Goods produced in China will have a special permission for a green customs corridor.
Truck haulage associations of Latvia, Lithuania and Poland expressed their deep interest in launching the project. "After Latvia's entering the EU and after the abolition of customs borders between the EU countries, the speed of transportation has alarmingly increased. As a consequence, part of road transport companies' potential apppeared to be idle, and we hope that the new transport corridor will make it possible to use these reserves", Valdis Trezinsh, the president of Latvian International Road Transport Association "Latvijas Auto" shares his views with the reporter of The RZD-Partner International.
American businessmen are interested in creating a new transport route between Europe and South-Eastern Asia in the same way as the EU countries and Kazakhstan. These days the Chinese cargoes are transported to the USA by sea, using the ports of the Western Coast. These seaports do not cope with the cargo flow due to the limited capacity of the branch railway lines. Calculating transportation costs using the new logistic scheme, the Americans realised that it would be much more profitable to carry the cargoes by land from South-Eastern Asia to the ports of the Mediterranian and the Baltic Sea, and then to transport them to the Eastern ports of the North-American continent. So, the fact that the representatives of the United States Chamber of Commerce were looking forward to the truck caravan arrival to Brussels was not a coincidence.
Russian truck haulers also showed an intensive interest in the "Project 3B". They believe that using the small part of the Russian-Chinese border in the area of Gornyj Altaj and the Nothern Chinese province Sintszyan will be one of the prospective ways for "Project 3B" to develop. This will enable Russia and China to establish direct road transport communication.
Problems or optimism
In prospect of development of the on-land route from China to Europe, which became palpable thanks to the road race "Project 3B", there arose the challenging issue of rivalry with the international corridor TRACEKA, currently constructed across Middle Asia and Turkey. According to the former deputy minister of transport of the RF, currently in the position of Chairman of the Intergovernmental Road Workers Council of the CIS countries, Evgeniy Kazantsev, TRACEKA is a very promising transport route from China to Europe and a dangerous rival to the Russian parts of the International transport corridor.
"We shouldn't close our eyes to this fact. TRACEKA is a very strong competitor, and a very profitable route from the economic point of view", he says.
Apart from the competition with the Asian-Mediterranean corridor, there are a lot of problems connected with crossing the borders. The recent customs stoppage at the Russian-Kazakh border, village Troitskoe, Chelyabinsk area, came to 16 hours. A banal outage of the cargo volume carried by the participants of the road race was the reason. In spite of the fact that the customs bodies of the RF called the above mentioned incident a misunderstanding, the representatives of the Ministry of Economic Development and Trade, which coordinates the Federal Customs Service, agreed that 16 hours was an excessively long period for an investigation of the matter of international importance.
It is fair to say that long stoppages at Russian borders are not only the customs officials' fault. The capacities of Russian road transport infrastructure are restricted; and the roads on the way to the customs posts very often become as narrow as a neck of a bottle. This problem will be solved in the near future though. According to the Director of the Road and Municipal Passenger Transport Policy Department of the Russian Ministry of Transport Evgeniy Moskvichev, in 2006 the Federal Road Agency has to prepare projects on special roads to approach the main posts, and then to withdraw money from the state budget to make five- or six-lined roads with the required quantity of "road pockets" at these posts.
As it happened before, the issues of visas for drivers, fuel prices and safety during transportation cause intense anxiety to road transport companies. The fact that China is closed is a separate problem. At present it is hardly possible for foreigners to move around the territory of this country freely.
However, as the well-known adage says, the first attempt is the most difficult. Probably, for this reason, despite the fact that for many businessmen China was and continues to be terra incognita, their interest in trade business with this country is very deep. This means that there is a chance to re-construct the Silk Road famous in the old days.
GERMAN NUTELS
[~DETAIL_TEXT] =>
Truck - New Transport Leader
The distinguishing peculiarity of transport connection between China and its main trade partners is the dominating position of sea transport. As a consequence, the biggest part of cargo is exported from the country by sea. However, the current terminal capacity cannot cope with the constantly growing freight flow. Moreover, the charter rates on the sea transport have considerably grown during the last few years; which largely reduces the possibilities of using it by state cargo producers.
From the economical point of view, transportation by air appears to be low-profitable as well. "We sell to Europe perishable raw materials for cosmetic products; for this reason we have no choice but to use air transport, and we have to pay USD 6 per kilogram of the cargo transported", says a representative of one of the Chinese companies.
Using regular railway communication for foreign cargoes transportation could become a possible alternative. But, according to some opinions, the Trans-Siberian railway, running across the territory of Russia, will not be able to handle the transportation of more than 300-400 tons of freight, whereas China plans to export to Europe more than a million tons of different cargoes. This induces the Chinese producers to search for new ways and possibilities of exporting their goods.
The China Road Transport Assosiation (CRTA) entering the International Road Transport Union (IRU), which followed China's joining the International Trade Organisation, has enlarged the horizons for a more fruitful collaboration and confirmed the wish of the most populous country of the world to participate more actively in logistic activities concerned with international trade. This fact couldn't have passed unnoticed in the countries ready to become potential partners of Chinese cargo producers and take an active part in creating an on-land transport corridor to open "a window to Europe" for the countries of South-Eastern Asia.
"Having carried out an in-depth analisys of Chinese foreign commerce activity, we came to a conclusion that a large part of cargoes can be exported by road transport. First of all, we are speaking about goods of high prime cost for a product unit, goods in need of a quick "door-to-door" delivery, and goods requiring careful transportation", says Igor Runov, IRU General Delegate to the CIS countries.
The Union of International Road Transport Carriers of the Republic of Kazakhstan (KazATO) organized and inspired the experimental container truck caravan named "Project 3B" (Beijing-Berlin-Brussels). According to Kazakhstan truck drivers' calculations, a crew consisting of only two drivers is able to deliver cargo form the Chinese-Kazakh border to Berlin in 10-12 days. With all this going on, the prime cost of one "there-and-back" trip will come to approximately USD 4600, 50% of which will be spent on fuel, 25% - on the drivers' salary, and the rest 25% - on the vehicle technical maintenance and repair, payments for using the infrastructure and other expenses. For the sake of comparison, freight charges for the transportation of one container from Beijing to Berlin by sea (through Hamburg seaport) amounts to USD 5500.
Combining the interests
The international truck caravan "Beijing-Berlin-Brussels" started in a town named Horgos on 27 September, 2005 within the frames of the Third Eurasian Conference on Transport.
Commercial sectors, as well as state bodies of different countries, showed their big interest in the project of Kazakhstan truck haulers. The Kazakh Government has recently adopted the programme "New Eurasian Transport Initiative" (NELTY), which envisages the construction of a new road network with the help of German, Italian, Korean and Iranian compnies. Goods produced in China will have a special permission for a green customs corridor.
Truck haulage associations of Latvia, Lithuania and Poland expressed their deep interest in launching the project. "After Latvia's entering the EU and after the abolition of customs borders between the EU countries, the speed of transportation has alarmingly increased. As a consequence, part of road transport companies' potential apppeared to be idle, and we hope that the new transport corridor will make it possible to use these reserves", Valdis Trezinsh, the president of Latvian International Road Transport Association "Latvijas Auto" shares his views with the reporter of The RZD-Partner International.
American businessmen are interested in creating a new transport route between Europe and South-Eastern Asia in the same way as the EU countries and Kazakhstan. These days the Chinese cargoes are transported to the USA by sea, using the ports of the Western Coast. These seaports do not cope with the cargo flow due to the limited capacity of the branch railway lines. Calculating transportation costs using the new logistic scheme, the Americans realised that it would be much more profitable to carry the cargoes by land from South-Eastern Asia to the ports of the Mediterranian and the Baltic Sea, and then to transport them to the Eastern ports of the North-American continent. So, the fact that the representatives of the United States Chamber of Commerce were looking forward to the truck caravan arrival to Brussels was not a coincidence.
Russian truck haulers also showed an intensive interest in the "Project 3B". They believe that using the small part of the Russian-Chinese border in the area of Gornyj Altaj and the Nothern Chinese province Sintszyan will be one of the prospective ways for "Project 3B" to develop. This will enable Russia and China to establish direct road transport communication.
Problems or optimism
In prospect of development of the on-land route from China to Europe, which became palpable thanks to the road race "Project 3B", there arose the challenging issue of rivalry with the international corridor TRACEKA, currently constructed across Middle Asia and Turkey. According to the former deputy minister of transport of the RF, currently in the position of Chairman of the Intergovernmental Road Workers Council of the CIS countries, Evgeniy Kazantsev, TRACEKA is a very promising transport route from China to Europe and a dangerous rival to the Russian parts of the International transport corridor.
"We shouldn't close our eyes to this fact. TRACEKA is a very strong competitor, and a very profitable route from the economic point of view", he says.
Apart from the competition with the Asian-Mediterranean corridor, there are a lot of problems connected with crossing the borders. The recent customs stoppage at the Russian-Kazakh border, village Troitskoe, Chelyabinsk area, came to 16 hours. A banal outage of the cargo volume carried by the participants of the road race was the reason. In spite of the fact that the customs bodies of the RF called the above mentioned incident a misunderstanding, the representatives of the Ministry of Economic Development and Trade, which coordinates the Federal Customs Service, agreed that 16 hours was an excessively long period for an investigation of the matter of international importance.
It is fair to say that long stoppages at Russian borders are not only the customs officials' fault. The capacities of Russian road transport infrastructure are restricted; and the roads on the way to the customs posts very often become as narrow as a neck of a bottle. This problem will be solved in the near future though. According to the Director of the Road and Municipal Passenger Transport Policy Department of the Russian Ministry of Transport Evgeniy Moskvichev, in 2006 the Federal Road Agency has to prepare projects on special roads to approach the main posts, and then to withdraw money from the state budget to make five- or six-lined roads with the required quantity of "road pockets" at these posts.
As it happened before, the issues of visas for drivers, fuel prices and safety during transportation cause intense anxiety to road transport companies. The fact that China is closed is a separate problem. At present it is hardly possible for foreigners to move around the territory of this country freely.
However, as the well-known adage says, the first attempt is the most difficult. Probably, for this reason, despite the fact that for many businessmen China was and continues to be terra incognita, their interest in trade business with this country is very deep. This means that there is a chance to re-construct the Silk Road famous in the old days.
GERMAN NUTELS
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"Eurotransit 2005" block train started its demonstration run along the Second Pan European corridor from Berlin on November 16. The project presentation organized for German businessmen representing big companies - cargo owners proceeded its dispatch. The main participants of the trip were OAO RZD President Vladimir Yakunin, Deutche Bahn Board Chairman Hartmut Moedern, Polish railways General Director Andrzej Wach and Belarus Railway Head Vladimir Zherelo. During the demonstration run, chief railway men of the four countries took immediate part in all the stages of work on the route. According to OAO RZD President Vladimir Yakunin, they spent four days in close and intensive cooperation: "This is an unprecedented event, when railway companies' authorities got together to work in a joint project for several days". "This event is of symbolic nature for the integration of the four countries' transport systems and you proved it having set your personal example - now nobody can claim that the international transportation has problems impossible to solve", Deputy Minister of Transport of the RF Alexander Misharin said, congratulating railway heads.
Customs Officials Agreed on Cooperation
"Eurotransit 2005" is of 600 meters long and 1600 tons of weight. With an average speed of 100 kilometers per hour, it delivered cars, radioelectronics and some other goods to Russia. Due to new technology its running time from Berlin to Moscow took 3.3 days, instead of the usual ten; 20ft container cost amounted to EUR 889, and 40ft container - EUR 1251.
"Eurotransit" project was being prepared by four railways for two months. There were four targets to achieve. They are improvement of transportation information servicing, improvement of the quality of transportation documents for transfer from CIM to SMGS standards, invoices translation into Russian before their arrival in Brest and accepting the SMGS invoice as a document controlling delivery or transit declaration (which envisages customs procedures simplification).
According to experts, a number of quite serious problems were possible to solve due to the presence of customs officials and frontier guards - members of the Russian delegation who assisted in "Eurotransit 2005" project from the very beginning up to the end. Together with their foreign counterparts, they were developing the project for the train crossing the state borders and tried to solve problems on the spot. In OAO RZD affiliate Transcontainer Director Peter Baskakov's words, two great problems were solved right while crossing the Belarus-Polish border. At the meeting taking place in Brest, Belarus and Russian customs official reached an agreement on using the SMGS invoice as a delivery controlling document for transportation between the two countries. Now there is no need to register document of delivery control, and the reduction of the documents number can reduce the number of technical errors impending fast cargo transportation. The second serious problem that was solved in Brest concerned an agreement on the Polish border station Milashevich getting preliminary electronic information on cargo arrival that would make the cargo registration easier during the crossing of the Belarus-Russian border. Moreover, the procedure of agreement of the Republic of Belarus joining the Convention on International Railway Transportation was started by some sectors of the railway. One more problem to be solved is the quality improvement of transportation documents for transfer from CIM to SMGS standards. According to Vladimir Yakunin, OAO RZD President, it will be solved in mid-2006, when, during many-sided negotiations, the common invoice is to be developed and approved (see "From Berlin to Novgorod without re-registration", p.69). This invoice will help to adapt CIM standards to the legislative norms of SMGS system. "This block train will be given the same favourable conditions in future as well. Its fast crossing the borders with no delays can be explained by the fact that customs services could obtain the cargo registration documents required beforehand and all they had to do was just checking the train", Yevgeny Ivanov, Deputy Head of the Federal Customs Service, stated.
Cargo Jumps from Wheels to Rails
After the block train "Eurotransit 2005" arrived in Moscow, OAO RZD President Vladimir Yakunin, Deutche Bahn Board Chairman Hartmut Moedern, Polish Railways General Director Andrzej Wach and Belarus railway Head Vladimir Zherelo signed a Memorandum on cooperation within cargo transportation. This document envisages the creation of a permanent working-group to improve the project stage by stage. In the opinion of this meeting participants, some technical faults can still be found on the route Berlin-Moscow. Their elimination can help to shorten the technological time spent on documents handling and, thus, the speed of the block train by more 12 hours. In particular, according to Vladimir Zherelo, this time is usually needed due to the difference in the rail gauge that demands a prolonged idling of the train on Poland-Belarus border.
"We believe now the project has been successfully completed, and its results surpassed expectations", Vladimir Yakunin, OAO RZD President, claimed. "We couldn't implement such a large-scaled project on our own", Hartmut Moedorn, Deutche Bahn Board Chairman admitted.
According to OAO RZD experts', the containerized route Berlin-Moscow can become competitive to motor transportation to Europe. The International Transport Corridor №2 potential is estimated at 1 mln containers per year, though railways share in the aggregate volume of cargo transportation amounts up to only 2% (cargo transportation volume between Russia and Germany reached 169 thousand tons only in October). In the opinion of the head of "Transcontainer" JSC Peter Baskakov, some 800 trucks per day cross the Russian-Belarus border carrying production mostly from Germany, Italy and other European countries. This cargo volume matches 400 TEU. If even one third of it goes from motor transport to railway, aggregate profit of the project's participants will make about EUR 150 thousand per day.
However, the Russian participants' plans go even further. According to P.Baskakov, now the process of selecting containerized cargo for export to Europe is going on. Cars and platforms empty back run is unprofitable to all the project's participants, thus, "Eurotransit" may receive its logical continuation soon.
ILYA SVERDLOV,
VICTOR STEPANOV
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Customs Officials Agreed on Cooperation
"Eurotransit 2005" is of 600 meters long and 1600 tons of weight. With an average speed of 100 kilometers per hour, it delivered cars, radioelectronics and some other goods to Russia. Due to new technology its running time from Berlin to Moscow took 3.3 days, instead of the usual ten; 20ft container cost amounted to EUR 889, and 40ft container - EUR 1251.
"Eurotransit" project was being prepared by four railways for two months. There were four targets to achieve. They are improvement of transportation information servicing, improvement of the quality of transportation documents for transfer from CIM to SMGS standards, invoices translation into Russian before their arrival in Brest and accepting the SMGS invoice as a document controlling delivery or transit declaration (which envisages customs procedures simplification).
According to experts, a number of quite serious problems were possible to solve due to the presence of customs officials and frontier guards - members of the Russian delegation who assisted in "Eurotransit 2005" project from the very beginning up to the end. Together with their foreign counterparts, they were developing the project for the train crossing the state borders and tried to solve problems on the spot. In OAO RZD affiliate Transcontainer Director Peter Baskakov's words, two great problems were solved right while crossing the Belarus-Polish border. At the meeting taking place in Brest, Belarus and Russian customs official reached an agreement on using the SMGS invoice as a delivery controlling document for transportation between the two countries. Now there is no need to register document of delivery control, and the reduction of the documents number can reduce the number of technical errors impending fast cargo transportation. The second serious problem that was solved in Brest concerned an agreement on the Polish border station Milashevich getting preliminary electronic information on cargo arrival that would make the cargo registration easier during the crossing of the Belarus-Russian border. Moreover, the procedure of agreement of the Republic of Belarus joining the Convention on International Railway Transportation was started by some sectors of the railway. One more problem to be solved is the quality improvement of transportation documents for transfer from CIM to SMGS standards. According to Vladimir Yakunin, OAO RZD President, it will be solved in mid-2006, when, during many-sided negotiations, the common invoice is to be developed and approved (see "From Berlin to Novgorod without re-registration", p.69). This invoice will help to adapt CIM standards to the legislative norms of SMGS system. "This block train will be given the same favourable conditions in future as well. Its fast crossing the borders with no delays can be explained by the fact that customs services could obtain the cargo registration documents required beforehand and all they had to do was just checking the train", Yevgeny Ivanov, Deputy Head of the Federal Customs Service, stated.
Cargo Jumps from Wheels to Rails
After the block train "Eurotransit 2005" arrived in Moscow, OAO RZD President Vladimir Yakunin, Deutche Bahn Board Chairman Hartmut Moedern, Polish Railways General Director Andrzej Wach and Belarus railway Head Vladimir Zherelo signed a Memorandum on cooperation within cargo transportation. This document envisages the creation of a permanent working-group to improve the project stage by stage. In the opinion of this meeting participants, some technical faults can still be found on the route Berlin-Moscow. Their elimination can help to shorten the technological time spent on documents handling and, thus, the speed of the block train by more 12 hours. In particular, according to Vladimir Zherelo, this time is usually needed due to the difference in the rail gauge that demands a prolonged idling of the train on Poland-Belarus border.
"We believe now the project has been successfully completed, and its results surpassed expectations", Vladimir Yakunin, OAO RZD President, claimed. "We couldn't implement such a large-scaled project on our own", Hartmut Moedorn, Deutche Bahn Board Chairman admitted.
According to OAO RZD experts', the containerized route Berlin-Moscow can become competitive to motor transportation to Europe. The International Transport Corridor №2 potential is estimated at 1 mln containers per year, though railways share in the aggregate volume of cargo transportation amounts up to only 2% (cargo transportation volume between Russia and Germany reached 169 thousand tons only in October). In the opinion of the head of "Transcontainer" JSC Peter Baskakov, some 800 trucks per day cross the Russian-Belarus border carrying production mostly from Germany, Italy and other European countries. This cargo volume matches 400 TEU. If even one third of it goes from motor transport to railway, aggregate profit of the project's participants will make about EUR 150 thousand per day.
However, the Russian participants' plans go even further. According to P.Baskakov, now the process of selecting containerized cargo for export to Europe is going on. Cars and platforms empty back run is unprofitable to all the project's participants, thus, "Eurotransit" may receive its logical continuation soon.
ILYA SVERDLOV,
VICTOR STEPANOV
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"Eurotransit 2005" block train started its demonstration run along the Second Pan European corridor from Berlin on November 16. The project presentation organized for German businessmen representing big companies - cargo owners proceeded its dispatch. The main participants of the trip were OAO RZD President Vladimir Yakunin, Deutche Bahn Board Chairman Hartmut Moedern, Polish railways General Director Andrzej Wach and Belarus Railway Head Vladimir Zherelo. During the demonstration run, chief railway men of the four countries took immediate part in all the stages of work on the route. According to OAO RZD President Vladimir Yakunin, they spent four days in close and intensive cooperation: "This is an unprecedented event, when railway companies' authorities got together to work in a joint project for several days". "This event is of symbolic nature for the integration of the four countries' transport systems and you proved it having set your personal example - now nobody can claim that the international transportation has problems impossible to solve", Deputy Minister of Transport of the RF Alexander Misharin said, congratulating railway heads.
Customs Officials Agreed on Cooperation
"Eurotransit 2005" is of 600 meters long and 1600 tons of weight. With an average speed of 100 kilometers per hour, it delivered cars, radioelectronics and some other goods to Russia. Due to new technology its running time from Berlin to Moscow took 3.3 days, instead of the usual ten; 20ft container cost amounted to EUR 889, and 40ft container - EUR 1251.
"Eurotransit" project was being prepared by four railways for two months. There were four targets to achieve. They are improvement of transportation information servicing, improvement of the quality of transportation documents for transfer from CIM to SMGS standards, invoices translation into Russian before their arrival in Brest and accepting the SMGS invoice as a document controlling delivery or transit declaration (which envisages customs procedures simplification).
According to experts, a number of quite serious problems were possible to solve due to the presence of customs officials and frontier guards - members of the Russian delegation who assisted in "Eurotransit 2005" project from the very beginning up to the end. Together with their foreign counterparts, they were developing the project for the train crossing the state borders and tried to solve problems on the spot. In OAO RZD affiliate Transcontainer Director Peter Baskakov's words, two great problems were solved right while crossing the Belarus-Polish border. At the meeting taking place in Brest, Belarus and Russian customs official reached an agreement on using the SMGS invoice as a delivery controlling document for transportation between the two countries. Now there is no need to register document of delivery control, and the reduction of the documents number can reduce the number of technical errors impending fast cargo transportation. The second serious problem that was solved in Brest concerned an agreement on the Polish border station Milashevich getting preliminary electronic information on cargo arrival that would make the cargo registration easier during the crossing of the Belarus-Russian border. Moreover, the procedure of agreement of the Republic of Belarus joining the Convention on International Railway Transportation was started by some sectors of the railway. One more problem to be solved is the quality improvement of transportation documents for transfer from CIM to SMGS standards. According to Vladimir Yakunin, OAO RZD President, it will be solved in mid-2006, when, during many-sided negotiations, the common invoice is to be developed and approved (see "From Berlin to Novgorod without re-registration", p.69). This invoice will help to adapt CIM standards to the legislative norms of SMGS system. "This block train will be given the same favourable conditions in future as well. Its fast crossing the borders with no delays can be explained by the fact that customs services could obtain the cargo registration documents required beforehand and all they had to do was just checking the train", Yevgeny Ivanov, Deputy Head of the Federal Customs Service, stated.
Cargo Jumps from Wheels to Rails
After the block train "Eurotransit 2005" arrived in Moscow, OAO RZD President Vladimir Yakunin, Deutche Bahn Board Chairman Hartmut Moedern, Polish Railways General Director Andrzej Wach and Belarus railway Head Vladimir Zherelo signed a Memorandum on cooperation within cargo transportation. This document envisages the creation of a permanent working-group to improve the project stage by stage. In the opinion of this meeting participants, some technical faults can still be found on the route Berlin-Moscow. Their elimination can help to shorten the technological time spent on documents handling and, thus, the speed of the block train by more 12 hours. In particular, according to Vladimir Zherelo, this time is usually needed due to the difference in the rail gauge that demands a prolonged idling of the train on Poland-Belarus border.
"We believe now the project has been successfully completed, and its results surpassed expectations", Vladimir Yakunin, OAO RZD President, claimed. "We couldn't implement such a large-scaled project on our own", Hartmut Moedorn, Deutche Bahn Board Chairman admitted.
According to OAO RZD experts', the containerized route Berlin-Moscow can become competitive to motor transportation to Europe. The International Transport Corridor №2 potential is estimated at 1 mln containers per year, though railways share in the aggregate volume of cargo transportation amounts up to only 2% (cargo transportation volume between Russia and Germany reached 169 thousand tons only in October). In the opinion of the head of "Transcontainer" JSC Peter Baskakov, some 800 trucks per day cross the Russian-Belarus border carrying production mostly from Germany, Italy and other European countries. This cargo volume matches 400 TEU. If even one third of it goes from motor transport to railway, aggregate profit of the project's participants will make about EUR 150 thousand per day.
However, the Russian participants' plans go even further. According to P.Baskakov, now the process of selecting containerized cargo for export to Europe is going on. Cars and platforms empty back run is unprofitable to all the project's participants, thus, "Eurotransit" may receive its logical continuation soon.
ILYA SVERDLOV,
VICTOR STEPANOV
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Customs Officials Agreed on Cooperation
"Eurotransit 2005" is of 600 meters long and 1600 tons of weight. With an average speed of 100 kilometers per hour, it delivered cars, radioelectronics and some other goods to Russia. Due to new technology its running time from Berlin to Moscow took 3.3 days, instead of the usual ten; 20ft container cost amounted to EUR 889, and 40ft container - EUR 1251.
"Eurotransit" project was being prepared by four railways for two months. There were four targets to achieve. They are improvement of transportation information servicing, improvement of the quality of transportation documents for transfer from CIM to SMGS standards, invoices translation into Russian before their arrival in Brest and accepting the SMGS invoice as a document controlling delivery or transit declaration (which envisages customs procedures simplification).
According to experts, a number of quite serious problems were possible to solve due to the presence of customs officials and frontier guards - members of the Russian delegation who assisted in "Eurotransit 2005" project from the very beginning up to the end. Together with their foreign counterparts, they were developing the project for the train crossing the state borders and tried to solve problems on the spot. In OAO RZD affiliate Transcontainer Director Peter Baskakov's words, two great problems were solved right while crossing the Belarus-Polish border. At the meeting taking place in Brest, Belarus and Russian customs official reached an agreement on using the SMGS invoice as a delivery controlling document for transportation between the two countries. Now there is no need to register document of delivery control, and the reduction of the documents number can reduce the number of technical errors impending fast cargo transportation. The second serious problem that was solved in Brest concerned an agreement on the Polish border station Milashevich getting preliminary electronic information on cargo arrival that would make the cargo registration easier during the crossing of the Belarus-Russian border. Moreover, the procedure of agreement of the Republic of Belarus joining the Convention on International Railway Transportation was started by some sectors of the railway. One more problem to be solved is the quality improvement of transportation documents for transfer from CIM to SMGS standards. According to Vladimir Yakunin, OAO RZD President, it will be solved in mid-2006, when, during many-sided negotiations, the common invoice is to be developed and approved (see "From Berlin to Novgorod without re-registration", p.69). This invoice will help to adapt CIM standards to the legislative norms of SMGS system. "This block train will be given the same favourable conditions in future as well. Its fast crossing the borders with no delays can be explained by the fact that customs services could obtain the cargo registration documents required beforehand and all they had to do was just checking the train", Yevgeny Ivanov, Deputy Head of the Federal Customs Service, stated.
Cargo Jumps from Wheels to Rails
After the block train "Eurotransit 2005" arrived in Moscow, OAO RZD President Vladimir Yakunin, Deutche Bahn Board Chairman Hartmut Moedern, Polish Railways General Director Andrzej Wach and Belarus railway Head Vladimir Zherelo signed a Memorandum on cooperation within cargo transportation. This document envisages the creation of a permanent working-group to improve the project stage by stage. In the opinion of this meeting participants, some technical faults can still be found on the route Berlin-Moscow. Their elimination can help to shorten the technological time spent on documents handling and, thus, the speed of the block train by more 12 hours. In particular, according to Vladimir Zherelo, this time is usually needed due to the difference in the rail gauge that demands a prolonged idling of the train on Poland-Belarus border.
"We believe now the project has been successfully completed, and its results surpassed expectations", Vladimir Yakunin, OAO RZD President, claimed. "We couldn't implement such a large-scaled project on our own", Hartmut Moedorn, Deutche Bahn Board Chairman admitted.
According to OAO RZD experts', the containerized route Berlin-Moscow can become competitive to motor transportation to Europe. The International Transport Corridor №2 potential is estimated at 1 mln containers per year, though railways share in the aggregate volume of cargo transportation amounts up to only 2% (cargo transportation volume between Russia and Germany reached 169 thousand tons only in October). In the opinion of the head of "Transcontainer" JSC Peter Baskakov, some 800 trucks per day cross the Russian-Belarus border carrying production mostly from Germany, Italy and other European countries. This cargo volume matches 400 TEU. If even one third of it goes from motor transport to railway, aggregate profit of the project's participants will make about EUR 150 thousand per day.
However, the Russian participants' plans go even further. According to P.Baskakov, now the process of selecting containerized cargo for export to Europe is going on. Cars and platforms empty back run is unprofitable to all the project's participants, thus, "Eurotransit" may receive its logical continuation soon.
ILYA SVERDLOV,
VICTOR STEPANOV
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In autumn 2003, during the meeting of the RF President Vladimir Putin and the chancellor of Germany Gerhard Schroeder the heads of the railway departments of the two countries signed Memorandum of interaction and cooperation. It the framework of the Memorandum realization, in the middle of 2004 a train Kaliningrad - Berlin was put into operation. It turned out, the route is very popular among Russian and German tourists. Then there appeared an idea to open a special route Berlin-St.-Petersburg for tourists.
A Russian-German joint company, specializing in passenger transportation sphere, will realize the project. According to documents, the German side will own 49.5% of the company's shares, and OAO RZD will own 50.5%. At the same time, Deutsche Bahn AG and OAO RZD will have equal rights to solve operational and strategic problems. The representatives of Deutsche Bahn AG plan to visit all the stations, where the train will stop, to define their service abilities.
It is supposed, among the passengers of the new train there will be rich tourists, who want to travel from Europe to Russia. This will be a weekly train. It will run in night time, and in the day time it will stop in Kaliningrad, Riga, Vilnius, and St.-Petersburg, where the local tourist companies will organize excursions and cultural programmes for the passengers. German tourist agencies, which were the initiators of such a train, held negotiations with them. One of the variant of the train schedule is like that: the train will leave Berlin on Saturday, arrive in Kaliningrad on Sunday, in Riga on Monday, in Tallinn on Tuesday; and the tourists will stay in St.-Petersburg on Wednesday and Thursday. The train will leaveSt.-Petersburg in the evening on Thursday, arrive in Vilnius on Friday and in Berlin on Saturday evening.
It is planned to use train "Talgo" on the route. Deutsche Bahn AG has successfully used the train since 1996 as a night train-hotel. Its technical peculiarities, such as an opportunity to install the system for automatic switching from the European gauge to Russian one and back, the system of the wagon body's incline, wagons-restaurants, bars, a cinema hall, make the train prospective and competitive in the tourist transport services market. It takes one wagon 18 seconds to switch from one gauge to another. It is done automatically. Due to the low position of the centre of gravity, aerodynamical design and the pendular suspension, the train speed is more than 200 km./h. According to the preliminary data, there will be 28 wagons in a train, including 18 wagons for tourists, 3 wagons-restaurants, a wagon-bar, a wagon-saloon and 2 wagons with machine equipment. Experts believe, the new tourist railway route Berlin-Kaliningrad-St.-Petersburg can attract up to 25,000 tourists in one season.
In May 2005, the representatives of the railways of Russia, Germany, Latvia and Lithuania signed a protocol about organization of "Talgo's" running. The representatives of Lithuania and Latvia confirmed their readiness to let the train to their railway network after the specialists of the Russian Research Institute of the Railway Transport test the train and confirm that it meets all the requirements. In September 2005, at the V conference of the general directors of the European railways, held in St.-Petersburg, it was noticed that the project of the train is interesting, and there are concrete plans of its realization. In the framework of the meeting, the investment projects, aimed at enlargement of the European railway network, were discussed. In particular, a working group was created. The group is to discuss the economic aspects of the project of high-speed railway Berlin-Kaliningrad-St.-Petersburg creation, based on the trains of Talgo type. The president of OAO RZD Vladimir Yakunin underlined that the project is to be realized in the framework of development of Russia's cooperation with the European countries, envisaging creation of necessary conditions for providing foreign trade freight transportation, growing trade volumes between Europe and Asia, further development of Eurasian transport corridors, simplification of border crossing procedures, development of public-private partnership and attraction of forwarders and cargo owners interested, providing of the necessary conditions for long-term investment into railway transport organization and into passenger transportation organization.
YULIA AKEXEYVA
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In autumn 2003, during the meeting of the RF President Vladimir Putin and the chancellor of Germany Gerhard Schroeder the heads of the railway departments of the two countries signed Memorandum of interaction and cooperation. It the framework of the Memorandum realization, in the middle of 2004 a train Kaliningrad - Berlin was put into operation. It turned out, the route is very popular among Russian and German tourists. Then there appeared an idea to open a special route Berlin-St.-Petersburg for tourists.
A Russian-German joint company, specializing in passenger transportation sphere, will realize the project. According to documents, the German side will own 49.5% of the company's shares, and OAO RZD will own 50.5%. At the same time, Deutsche Bahn AG and OAO RZD will have equal rights to solve operational and strategic problems. The representatives of Deutsche Bahn AG plan to visit all the stations, where the train will stop, to define their service abilities.
It is supposed, among the passengers of the new train there will be rich tourists, who want to travel from Europe to Russia. This will be a weekly train. It will run in night time, and in the day time it will stop in Kaliningrad, Riga, Vilnius, and St.-Petersburg, where the local tourist companies will organize excursions and cultural programmes for the passengers. German tourist agencies, which were the initiators of such a train, held negotiations with them. One of the variant of the train schedule is like that: the train will leave Berlin on Saturday, arrive in Kaliningrad on Sunday, in Riga on Monday, in Tallinn on Tuesday; and the tourists will stay in St.-Petersburg on Wednesday and Thursday. The train will leaveSt.-Petersburg in the evening on Thursday, arrive in Vilnius on Friday and in Berlin on Saturday evening.
It is planned to use train "Talgo" on the route. Deutsche Bahn AG has successfully used the train since 1996 as a night train-hotel. Its technical peculiarities, such as an opportunity to install the system for automatic switching from the European gauge to Russian one and back, the system of the wagon body's incline, wagons-restaurants, bars, a cinema hall, make the train prospective and competitive in the tourist transport services market. It takes one wagon 18 seconds to switch from one gauge to another. It is done automatically. Due to the low position of the centre of gravity, aerodynamical design and the pendular suspension, the train speed is more than 200 km./h. According to the preliminary data, there will be 28 wagons in a train, including 18 wagons for tourists, 3 wagons-restaurants, a wagon-bar, a wagon-saloon and 2 wagons with machine equipment. Experts believe, the new tourist railway route Berlin-Kaliningrad-St.-Petersburg can attract up to 25,000 tourists in one season.
In May 2005, the representatives of the railways of Russia, Germany, Latvia and Lithuania signed a protocol about organization of "Talgo's" running. The representatives of Lithuania and Latvia confirmed their readiness to let the train to their railway network after the specialists of the Russian Research Institute of the Railway Transport test the train and confirm that it meets all the requirements. In September 2005, at the V conference of the general directors of the European railways, held in St.-Petersburg, it was noticed that the project of the train is interesting, and there are concrete plans of its realization. In the framework of the meeting, the investment projects, aimed at enlargement of the European railway network, were discussed. In particular, a working group was created. The group is to discuss the economic aspects of the project of high-speed railway Berlin-Kaliningrad-St.-Petersburg creation, based on the trains of Talgo type. The president of OAO RZD Vladimir Yakunin underlined that the project is to be realized in the framework of development of Russia's cooperation with the European countries, envisaging creation of necessary conditions for providing foreign trade freight transportation, growing trade volumes between Europe and Asia, further development of Eurasian transport corridors, simplification of border crossing procedures, development of public-private partnership and attraction of forwarders and cargo owners interested, providing of the necessary conditions for long-term investment into railway transport organization and into passenger transportation organization.
YULIA AKEXEYVA
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In autumn 2003, during the meeting of the RF President Vladimir Putin and the chancellor of Germany Gerhard Schroeder the heads of the railway departments of the two countries signed Memorandum of interaction and cooperation. It the framework of the Memorandum realization, in the middle of 2004 a train Kaliningrad - Berlin was put into operation. It turned out, the route is very popular among Russian and German tourists. Then there appeared an idea to open a special route Berlin-St.-Petersburg for tourists.
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In May 2005, the representatives of the railways of Russia, Germany, Latvia and Lithuania signed a protocol about organization of "Talgo's" running. The representatives of Lithuania and Latvia confirmed their readiness to let the train to their railway network after the specialists of the Russian Research Institute of the Railway Transport test the train and confirm that it meets all the requirements. In September 2005, at the V conference of the general directors of the European railways, held in St.-Petersburg, it was noticed that the project of the train is interesting, and there are concrete plans of its realization. In the framework of the meeting, the investment projects, aimed at enlargement of the European railway network, were discussed. In particular, a working group was created. The group is to discuss the economic aspects of the project of high-speed railway Berlin-Kaliningrad-St.-Petersburg creation, based on the trains of Talgo type. The president of OAO RZD Vladimir Yakunin underlined that the project is to be realized in the framework of development of Russia's cooperation with the European countries, envisaging creation of necessary conditions for providing foreign trade freight transportation, growing trade volumes between Europe and Asia, further development of Eurasian transport corridors, simplification of border crossing procedures, development of public-private partnership and attraction of forwarders and cargo owners interested, providing of the necessary conditions for long-term investment into railway transport organization and into passenger transportation organization.
YULIA AKEXEYVA
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A Russian-German joint company, specializing in passenger transportation sphere, will realize the project. According to documents, the German side will own 49.5% of the company's shares, and OAO RZD will own 50.5%. At the same time, Deutsche Bahn AG and OAO RZD will have equal rights to solve operational and strategic problems. The representatives of Deutsche Bahn AG plan to visit all the stations, where the train will stop, to define their service abilities.
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In May 2005, the representatives of the railways of Russia, Germany, Latvia and Lithuania signed a protocol about organization of "Talgo's" running. The representatives of Lithuania and Latvia confirmed their readiness to let the train to their railway network after the specialists of the Russian Research Institute of the Railway Transport test the train and confirm that it meets all the requirements. In September 2005, at the V conference of the general directors of the European railways, held in St.-Petersburg, it was noticed that the project of the train is interesting, and there are concrete plans of its realization. In the framework of the meeting, the investment projects, aimed at enlargement of the European railway network, were discussed. In particular, a working group was created. The group is to discuss the economic aspects of the project of high-speed railway Berlin-Kaliningrad-St.-Petersburg creation, based on the trains of Talgo type. The president of OAO RZD Vladimir Yakunin underlined that the project is to be realized in the framework of development of Russia's cooperation with the European countries, envisaging creation of necessary conditions for providing foreign trade freight transportation, growing trade volumes between Europe and Asia, further development of Eurasian transport corridors, simplification of border crossing procedures, development of public-private partnership and attraction of forwarders and cargo owners interested, providing of the necessary conditions for long-term investment into railway transport organization and into passenger transportation organization.
YULIA AKEXEYVA
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[DETAIL_TEXT] =>
Seeker Finds
Signing the Agreement about the joint development of services in the railway transport sphere was preceded by long and thorough preparations. On October 9, 2003, the Memorandum of Understanding and Cooperation was signed in Ekaterinburg. The document envisaged that the Russian and the German railways would take joint measures aimed at an increase of railway transport competitiveness to boost the volumes of freight and passenger transportation.
The negotiations were continued on September 17, 2004, at the meeting of the heads of Deutsche Bahn AG (Railion Deutschland AG is its subsidiary) and of OAO RZD, where the Agreement about cooperation in the passenger and freight transportation sphere was signed. The experts of the both railway companies worked hard to develop a special model of joint business envisaging interests of the both companies.
The basis for the balance of the sides' interests was the participation of OAO RZD and Railion Deutschland AG in a joint project on an equal footing, as well as a shared perspective on the existing problems and possible prospects for development. The experts forecasting of foreign trade relations highlight that the sides' participation in the project enables Germany to get an access to the prospective markets of China and other Eastern-Asian countries, while Russia acquires an access to the Western European freight railway transportation market, which actively promotes a further integration of Russia into the Eurasian transport system.
At the same time, both OAO RZD and Railion are interested not only in gaining profit from participation in a joint company, but also in attracting additional transportation volumes to the infrastructure of the Russian and German railways.
The basis for the company's successful work in this respect is the increase of separate sectors efficiency, the simplification of the customs formalities, the liquidation of a number of middlemen in transportation process with a further creation of an adjusted system of organizing communication, the development of warehousing services, and, as a result, the increase of competitiveness and a significant reduction of delivery time.
Freight Flowin West-East Transport Corridor Will Double
According to the preliminary agreements with the representatives of Railion Deutschland AG, the company's authorized capital will be EUR 200,000 when it is launched (in 2007 it will increase to EUR 300,000). According to the agreement with the German partners, OAO RZD will own the ERL's control stock (50.1%). Railion Deutschland AG will own 49.9% of shares. The final decision about EurasiaRailLogistics CJSC will be made by the Board of Directors of OAO RZD in December 2005. The launch of the company is planned for 2006.
The company's activities will influence directly the activities of the Gorkovskaya Railway, which is a transit railway and an important part of the Transsiberian railway. The basic services will be provided by companies representing railways, for example, by Railion Deutschland AG and OAO RZD, as well as by the Polish and the Byelorussian railways on the route Germany-Poland-Byelorussia-Russia. The joint company will purchase their services. It will provide transportation, as well as initial and final cargo delivery, freight handling, i.e. "full through product".
To reach its targets, the joint company will purchase these services, integrate them into the main one, and later sell them as a combined product to the sale organizations i.e. agents or consignors in the market. Thus, transport and logistic services will be provided by one and the same company.
It is planned that the company will provide freight transportation, using the railway as well as private park of trucks. ERL is going to transport cargoes of the river fleet in the Russian Povolzhye and in Germany. Thus, freight transportation volumes of EurasiaRailLogistics CJSC can be formed by a partial re-routing to international transport corridor №2 of railway-water transportation, intermodal railway-road haulages transportation and direct road haulages transportation, as well as by an increase of freight transportation volumes and development of transit container transportation on the route Western Europe-China and back. As a result, transportation volumes carried along international transport corridor №2 are to double, i.e. they are to make over 400 thousand tons in the direct railway communication Russia-Germany and China-Germany by 2010.
By the end of 2010, OAO RZD's additional revenue from transportation services provided to the company will make EUR 17 mln. The company's equity capital will make EUR 2.5 mln by that time, which exceeds the founders' contribution to the authorized capital of the joint company eightfold, and proves expediency of this project realization.
NADEZHDA VTORUSHINA
[~DETAIL_TEXT] =>
Seeker Finds
Signing the Agreement about the joint development of services in the railway transport sphere was preceded by long and thorough preparations. On October 9, 2003, the Memorandum of Understanding and Cooperation was signed in Ekaterinburg. The document envisaged that the Russian and the German railways would take joint measures aimed at an increase of railway transport competitiveness to boost the volumes of freight and passenger transportation.
The negotiations were continued on September 17, 2004, at the meeting of the heads of Deutsche Bahn AG (Railion Deutschland AG is its subsidiary) and of OAO RZD, where the Agreement about cooperation in the passenger and freight transportation sphere was signed. The experts of the both railway companies worked hard to develop a special model of joint business envisaging interests of the both companies.
The basis for the balance of the sides' interests was the participation of OAO RZD and Railion Deutschland AG in a joint project on an equal footing, as well as a shared perspective on the existing problems and possible prospects for development. The experts forecasting of foreign trade relations highlight that the sides' participation in the project enables Germany to get an access to the prospective markets of China and other Eastern-Asian countries, while Russia acquires an access to the Western European freight railway transportation market, which actively promotes a further integration of Russia into the Eurasian transport system.
At the same time, both OAO RZD and Railion are interested not only in gaining profit from participation in a joint company, but also in attracting additional transportation volumes to the infrastructure of the Russian and German railways.
The basis for the company's successful work in this respect is the increase of separate sectors efficiency, the simplification of the customs formalities, the liquidation of a number of middlemen in transportation process with a further creation of an adjusted system of organizing communication, the development of warehousing services, and, as a result, the increase of competitiveness and a significant reduction of delivery time.
Freight Flowin West-East Transport Corridor Will Double
According to the preliminary agreements with the representatives of Railion Deutschland AG, the company's authorized capital will be EUR 200,000 when it is launched (in 2007 it will increase to EUR 300,000). According to the agreement with the German partners, OAO RZD will own the ERL's control stock (50.1%). Railion Deutschland AG will own 49.9% of shares. The final decision about EurasiaRailLogistics CJSC will be made by the Board of Directors of OAO RZD in December 2005. The launch of the company is planned for 2006.
The company's activities will influence directly the activities of the Gorkovskaya Railway, which is a transit railway and an important part of the Transsiberian railway. The basic services will be provided by companies representing railways, for example, by Railion Deutschland AG and OAO RZD, as well as by the Polish and the Byelorussian railways on the route Germany-Poland-Byelorussia-Russia. The joint company will purchase their services. It will provide transportation, as well as initial and final cargo delivery, freight handling, i.e. "full through product".
To reach its targets, the joint company will purchase these services, integrate them into the main one, and later sell them as a combined product to the sale organizations i.e. agents or consignors in the market. Thus, transport and logistic services will be provided by one and the same company.
It is planned that the company will provide freight transportation, using the railway as well as private park of trucks. ERL is going to transport cargoes of the river fleet in the Russian Povolzhye and in Germany. Thus, freight transportation volumes of EurasiaRailLogistics CJSC can be formed by a partial re-routing to international transport corridor №2 of railway-water transportation, intermodal railway-road haulages transportation and direct road haulages transportation, as well as by an increase of freight transportation volumes and development of transit container transportation on the route Western Europe-China and back. As a result, transportation volumes carried along international transport corridor №2 are to double, i.e. they are to make over 400 thousand tons in the direct railway communication Russia-Germany and China-Germany by 2010.
By the end of 2010, OAO RZD's additional revenue from transportation services provided to the company will make EUR 17 mln. The company's equity capital will make EUR 2.5 mln by that time, which exceeds the founders' contribution to the authorized capital of the joint company eightfold, and proves expediency of this project realization.
NADEZHDA VTORUSHINA
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Seeker Finds
Signing the Agreement about the joint development of services in the railway transport sphere was preceded by long and thorough preparations. On October 9, 2003, the Memorandum of Understanding and Cooperation was signed in Ekaterinburg. The document envisaged that the Russian and the German railways would take joint measures aimed at an increase of railway transport competitiveness to boost the volumes of freight and passenger transportation.
The negotiations were continued on September 17, 2004, at the meeting of the heads of Deutsche Bahn AG (Railion Deutschland AG is its subsidiary) and of OAO RZD, where the Agreement about cooperation in the passenger and freight transportation sphere was signed. The experts of the both railway companies worked hard to develop a special model of joint business envisaging interests of the both companies.
The basis for the balance of the sides' interests was the participation of OAO RZD and Railion Deutschland AG in a joint project on an equal footing, as well as a shared perspective on the existing problems and possible prospects for development. The experts forecasting of foreign trade relations highlight that the sides' participation in the project enables Germany to get an access to the prospective markets of China and other Eastern-Asian countries, while Russia acquires an access to the Western European freight railway transportation market, which actively promotes a further integration of Russia into the Eurasian transport system.
At the same time, both OAO RZD and Railion are interested not only in gaining profit from participation in a joint company, but also in attracting additional transportation volumes to the infrastructure of the Russian and German railways.
The basis for the company's successful work in this respect is the increase of separate sectors efficiency, the simplification of the customs formalities, the liquidation of a number of middlemen in transportation process with a further creation of an adjusted system of organizing communication, the development of warehousing services, and, as a result, the increase of competitiveness and a significant reduction of delivery time.
Freight Flowin West-East Transport Corridor Will Double
According to the preliminary agreements with the representatives of Railion Deutschland AG, the company's authorized capital will be EUR 200,000 when it is launched (in 2007 it will increase to EUR 300,000). According to the agreement with the German partners, OAO RZD will own the ERL's control stock (50.1%). Railion Deutschland AG will own 49.9% of shares. The final decision about EurasiaRailLogistics CJSC will be made by the Board of Directors of OAO RZD in December 2005. The launch of the company is planned for 2006.
The company's activities will influence directly the activities of the Gorkovskaya Railway, which is a transit railway and an important part of the Transsiberian railway. The basic services will be provided by companies representing railways, for example, by Railion Deutschland AG and OAO RZD, as well as by the Polish and the Byelorussian railways on the route Germany-Poland-Byelorussia-Russia. The joint company will purchase their services. It will provide transportation, as well as initial and final cargo delivery, freight handling, i.e. "full through product".
To reach its targets, the joint company will purchase these services, integrate them into the main one, and later sell them as a combined product to the sale organizations i.e. agents or consignors in the market. Thus, transport and logistic services will be provided by one and the same company.
It is planned that the company will provide freight transportation, using the railway as well as private park of trucks. ERL is going to transport cargoes of the river fleet in the Russian Povolzhye and in Germany. Thus, freight transportation volumes of EurasiaRailLogistics CJSC can be formed by a partial re-routing to international transport corridor №2 of railway-water transportation, intermodal railway-road haulages transportation and direct road haulages transportation, as well as by an increase of freight transportation volumes and development of transit container transportation on the route Western Europe-China and back. As a result, transportation volumes carried along international transport corridor №2 are to double, i.e. they are to make over 400 thousand tons in the direct railway communication Russia-Germany and China-Germany by 2010.
By the end of 2010, OAO RZD's additional revenue from transportation services provided to the company will make EUR 17 mln. The company's equity capital will make EUR 2.5 mln by that time, which exceeds the founders' contribution to the authorized capital of the joint company eightfold, and proves expediency of this project realization.
NADEZHDA VTORUSHINA
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Seeker Finds
Signing the Agreement about the joint development of services in the railway transport sphere was preceded by long and thorough preparations. On October 9, 2003, the Memorandum of Understanding and Cooperation was signed in Ekaterinburg. The document envisaged that the Russian and the German railways would take joint measures aimed at an increase of railway transport competitiveness to boost the volumes of freight and passenger transportation.
The negotiations were continued on September 17, 2004, at the meeting of the heads of Deutsche Bahn AG (Railion Deutschland AG is its subsidiary) and of OAO RZD, where the Agreement about cooperation in the passenger and freight transportation sphere was signed. The experts of the both railway companies worked hard to develop a special model of joint business envisaging interests of the both companies.
The basis for the balance of the sides' interests was the participation of OAO RZD and Railion Deutschland AG in a joint project on an equal footing, as well as a shared perspective on the existing problems and possible prospects for development. The experts forecasting of foreign trade relations highlight that the sides' participation in the project enables Germany to get an access to the prospective markets of China and other Eastern-Asian countries, while Russia acquires an access to the Western European freight railway transportation market, which actively promotes a further integration of Russia into the Eurasian transport system.
At the same time, both OAO RZD and Railion are interested not only in gaining profit from participation in a joint company, but also in attracting additional transportation volumes to the infrastructure of the Russian and German railways.
The basis for the company's successful work in this respect is the increase of separate sectors efficiency, the simplification of the customs formalities, the liquidation of a number of middlemen in transportation process with a further creation of an adjusted system of organizing communication, the development of warehousing services, and, as a result, the increase of competitiveness and a significant reduction of delivery time.
Freight Flowin West-East Transport Corridor Will Double
According to the preliminary agreements with the representatives of Railion Deutschland AG, the company's authorized capital will be EUR 200,000 when it is launched (in 2007 it will increase to EUR 300,000). According to the agreement with the German partners, OAO RZD will own the ERL's control stock (50.1%). Railion Deutschland AG will own 49.9% of shares. The final decision about EurasiaRailLogistics CJSC will be made by the Board of Directors of OAO RZD in December 2005. The launch of the company is planned for 2006.
The company's activities will influence directly the activities of the Gorkovskaya Railway, which is a transit railway and an important part of the Transsiberian railway. The basic services will be provided by companies representing railways, for example, by Railion Deutschland AG and OAO RZD, as well as by the Polish and the Byelorussian railways on the route Germany-Poland-Byelorussia-Russia. The joint company will purchase their services. It will provide transportation, as well as initial and final cargo delivery, freight handling, i.e. "full through product".
To reach its targets, the joint company will purchase these services, integrate them into the main one, and later sell them as a combined product to the sale organizations i.e. agents or consignors in the market. Thus, transport and logistic services will be provided by one and the same company.
It is planned that the company will provide freight transportation, using the railway as well as private park of trucks. ERL is going to transport cargoes of the river fleet in the Russian Povolzhye and in Germany. Thus, freight transportation volumes of EurasiaRailLogistics CJSC can be formed by a partial re-routing to international transport corridor №2 of railway-water transportation, intermodal railway-road haulages transportation and direct road haulages transportation, as well as by an increase of freight transportation volumes and development of transit container transportation on the route Western Europe-China and back. As a result, transportation volumes carried along international transport corridor №2 are to double, i.e. they are to make over 400 thousand tons in the direct railway communication Russia-Germany and China-Germany by 2010.
By the end of 2010, OAO RZD's additional revenue from transportation services provided to the company will make EUR 17 mln. The company's equity capital will make EUR 2.5 mln by that time, which exceeds the founders' contribution to the authorized capital of the joint company eightfold, and proves expediency of this project realization.
NADEZHDA VTORUSHINA
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From door to door
"Nowadays nobody questions the necessity to employ Russia as a transit bridge joining Europe and Asia. The geopolitical location of our country predestines its key role for setting and sustaining Eurasian links", OAO RZD President Vladimir Yakunin said. He also reminded that the "route map" signed by the RF President Vladimir Putin and by the EU government in May envisages the creation of a unified deeply integrated all-European transport system, where railway transport is to play a major part.
Today, according to the European Agreement on the most important lines of international multimodal transportation and respective objects, with Russia being its member since 1994, OAO RZD is taking a whole complex of measures to bring railway lines, terminals and border check-points close to the settled by the Agreement parameters and maintenance demands in accordance with European standards.
The process of the Russian railways integration into the European transport system is being carried out in several directions.
The first one is the harmonization of the transport legislation within the European transport system and introduction of the simplified procedures of crossing the border. This means that the transportation documents should be unified and unified standards of customs and border control should be introduced. The utmost purpose of this policy lies in speeding up the process of passenger and cargo transportation via neighboring countries' borders and reducing the involved assets cost. Thus, OAO RZD believes that cargo turnover between Russia and the EU can be doubled at the expense of taking such measures directed at administrative and technological procedures optimization, re-registration of transportation documents and harmonization of transport legislation. That is to say, measures that do not need heavy investment.
According to OAO RZD, the reduction of time wasted on documents registration and cars idling at border stations can shorten cargo delivery period for Moscow-Berlin route threefold (from 21 days to 7 days). Moreover, under conditions of better organization of transportation and new technologies put into operation at border stations this period could be shortened by one-two days more. These steps will increase the attractiveness of PanEuropean transport corridor № 2 significantly.
The second direction is creating the technology of rolling stock operation for two technological systems. First of all, that means the use of double power supply electric locomotives that would allow to lengthen the tractive arms for international transportation servicing, as well as the use of expanding wheel pairs in passenger trains for switching from the West-European gauge standard to the Russian one. As a result, maintenance expenditures on international transportation can be reduced, along with the time of journey.
The third aspect focuses on technology of export-import transit transportation that needs to be modernized and on the optimization of relations with foreign railways. In this direction OAO RZD plans to make the following steps: to establish the system of unified information-logistic centers, to improve tariff policy and to increase investment attractiveness.
The fourth line includes the programme of developing international transport corridors, railway border check-points and port railway stations, as well as the launch of intermodal companies to co-ordinate transcontinental container transportation.
"As a result, we plan to achieve the situation when the Russian railways could be used for international transportation between the countries of the European and Asian-Pacific regions. Judging objectively, despite the process of creating alternative routes, the Russian railways can offer minimum time and cost for cargo delivery during transcontinental transportation and this very advantage should be fully used for our countries economic development", Vladimir Yakunin stated at the recent meeting of European railway administrations general directors held in Saint-Petersburg.
In his opinion, to make these advantages available for a client, first of all, effective cooperation with ports should be settled, as well as "through" logistics of the door-to-door transcontinental transportation.
The key advantage is time
The TransSiberian line is seen as a major international transport corridor in Russia. Its system of railways, stations and joints stretches from the Russian western borders to the Pacific ones. According to transporters, this very route should become one of the most actively used links between the countries of Asian-Pacific region and the EU. Moreover, it promises to perform as an alternative to the Suez Canal sea route. It is quite clear that winning the settled sea cargo flow to land will not be easy, although, in this relation, great expectations are laid on the annual increase of fresh cargo flows formed in China, Korea and Japan that are prospective and dynamically developing.
Containerised cargo transportation volume is constantly growing and amounts to 150 thousand TEU in 2005. At the same time, technological opportunities of the line for transcontinental transit reach 300 thousand TEU per annum. Moreover, capacities for Chinese direction are being expanded now: the Karymskaya-Zabaikalsk line is being modernized, which will allow to increase cargo transportation volumes significantly and reduce the transportation period for cargo delivered from Europe to the Eastern China.
In future, when the Baikal-Amur line enters the Eurasian and domestic cargo flows operation, the TransSiberian route will become capable of handling one million TEU per year. The main advantage of this route is travelling time, which makes 12 days for speeded block trains set off from Nakhodka sea port to the western Russian border.
"Recently we've invested a lot into clients' service improvement, as well as in transportation safety and control increase. Information technologies actively used at the TransSib allow not only to plan in detail, but also control cargo and cars movement along the whole route on-line", Vladimir Yakunin says.
Also great attention is paid to the "North-South" international transport corridor development in order to set cargo delivery between Europe and the countries of the Persian Gulf and the Indian Ocean. According to OAO RZD, trade market of containerized cargo for this direction can amount to 15 mln tonnes or 100-150 thousand TEU per year. Transit cargo transportation time via international "North-South" transport corridor will have to reduce nearly twofold, as compared to the sea route, and transportation price for one container from Germany and Finland to India will cost significantly less, again as compared to the sea route.
Mongolian Winds
The structural reform of the Russian railway transport started from the approval of a new legislative base and the establishment of OAO RZD in October 2003; now it allows to enhance cooperation with foreign railways by launching joint-stock companies. Thus, to reach the European market under mutually profitable conditions a joint venture with Deutche Bahn specialized transportation company is being established (see "Russia-Germany: joint company for mutual advantage", p. 10). Its task is to create Eurasian links using the Russian railways.
One more reserve to mention is the intensification of OAO RZD's collaboration with foreign transport companies for joint servicing of cargo owners, establishing the agent net in the European and Asian countries to provide opportunities for keeping in touch with clients. In particular, the project under "Mongolian vector" code name has been launched. It aims to increase the volume of foreign trade cargo transportated from China to Europe via Russia (see The RZD-Partner International, issue 3). The first containerised train was dispatched from China to Germany in March. The train crossed the territories of six countries (China, Mongolia, Russia, Belarus, Poland, Germany), having covered in general over 10 thousand kilometers in 14 days. This project is a result of joint efforts by railways and forwarding companies of Russia, Belarus, Mongolia and China. This way one more container route between China and Europe with the use of the TransSib was opened, which makes it possible to shorten cargo delivery time fivefold compared to the sea route. Today an opportunity to create a constant transport route between Finland and China with the capacity of 100 thousand TEU per annum is discussed.
International relations development becomes a more and more important issue in the prospect of Russia joining the WTO, which results in the necessity to provide transport services of high quality and high-technology nature. In particular, this has much to do with the unification of railway tariffs for foreign trade cargo and domestic cargo transportation that will attract Russian export cargo flows.
ОАО RZD pays attention to the modernization of the transportation process control system: with this purpose, unified dispatch centers of transportation control are established in the large sectors of the net.
"The company has spent much money to improve the technical state of the railways supporting net. Now we plan to focus on the RF border stations development, as well as on the newest methods of cargo transportation based on logistic principles. All this will make grounds to implement modern transportation potential in full", Vladimir Yakunin claimed.
To coordinateis to control
OAO RZD management actively participates in the work of such international transport organizations as the UN European Economic Commission, the UNESCAP, the Organization of Railways Cooperation etc. Special attention is paid to the activities of the International Coordinating Counsil on TransSiberian Transportation (ICCTT) established in 1993. At present it comprises 128 members from 28 countries, including 16 railway administrations, 8 shipping companies, 4 foreign freight forwarders associations and big forwarding companies. Traditionally the ICCTT is chaired by ОАО RZD president. Deputies chairmen are presidents of Freight forwarders association from Russia, South Korea, Europe, Austria and Japan. ОАО RZD believes this organization provides a comfortable and effective mode for international cooperation to all who desire it.
Last ICCTT session was held in late October, 2005 in Seoul. About 300 members of the Counsil participated in it, including invited representatives from 22 countries: Korea, Poland, Slovakia, Czech Republic, Germany, Austria, Switzerland, Finland, Ukraine, Belarus, Kazakhstan, Lithuania, Latvia, Estonia, France, Sweden, the Netherlands, Japan, Mongolia, China, Thailand etc. Issues of additional cargo volumes attraction towards the TransSiberian route by means of increasing transportation competitiveness were considered at the session.
Speaking at the conference, Vladimir Yakunin, OAO RZD and ICCTT head, stated, "To reach the world standards of transportation, to increase cargo transportation competitiveness within the world communication, our company should provide foreign cargo owners with proofs of railway transport attractiveness, both along the TransSiberian route and in other railway transport corridors. This leads us to modernize technology in accordance with the modern market demands, to create infrastructure of world level quality, to complete the total renovation of the Eastern Siberia and the TransBaikal railways and work out a mechanism that would assist in solution of large-scaled logistic problems within the frames of global trade-economic relations development".
Obviously, ОАО RZD intends to struggle intensively for strengthening its role as the world's biggest infrastructure company and prove its profitability and reliability in cargo transportation.
ANDRIS LAUTSEVICHYUS
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From door to door
"Nowadays nobody questions the necessity to employ Russia as a transit bridge joining Europe and Asia. The geopolitical location of our country predestines its key role for setting and sustaining Eurasian links", OAO RZD President Vladimir Yakunin said. He also reminded that the "route map" signed by the RF President Vladimir Putin and by the EU government in May envisages the creation of a unified deeply integrated all-European transport system, where railway transport is to play a major part.
Today, according to the European Agreement on the most important lines of international multimodal transportation and respective objects, with Russia being its member since 1994, OAO RZD is taking a whole complex of measures to bring railway lines, terminals and border check-points close to the settled by the Agreement parameters and maintenance demands in accordance with European standards.
The process of the Russian railways integration into the European transport system is being carried out in several directions.
The first one is the harmonization of the transport legislation within the European transport system and introduction of the simplified procedures of crossing the border. This means that the transportation documents should be unified and unified standards of customs and border control should be introduced. The utmost purpose of this policy lies in speeding up the process of passenger and cargo transportation via neighboring countries' borders and reducing the involved assets cost. Thus, OAO RZD believes that cargo turnover between Russia and the EU can be doubled at the expense of taking such measures directed at administrative and technological procedures optimization, re-registration of transportation documents and harmonization of transport legislation. That is to say, measures that do not need heavy investment.
According to OAO RZD, the reduction of time wasted on documents registration and cars idling at border stations can shorten cargo delivery period for Moscow-Berlin route threefold (from 21 days to 7 days). Moreover, under conditions of better organization of transportation and new technologies put into operation at border stations this period could be shortened by one-two days more. These steps will increase the attractiveness of PanEuropean transport corridor № 2 significantly.
The second direction is creating the technology of rolling stock operation for two technological systems. First of all, that means the use of double power supply electric locomotives that would allow to lengthen the tractive arms for international transportation servicing, as well as the use of expanding wheel pairs in passenger trains for switching from the West-European gauge standard to the Russian one. As a result, maintenance expenditures on international transportation can be reduced, along with the time of journey.
The third aspect focuses on technology of export-import transit transportation that needs to be modernized and on the optimization of relations with foreign railways. In this direction OAO RZD plans to make the following steps: to establish the system of unified information-logistic centers, to improve tariff policy and to increase investment attractiveness.
The fourth line includes the programme of developing international transport corridors, railway border check-points and port railway stations, as well as the launch of intermodal companies to co-ordinate transcontinental container transportation.
"As a result, we plan to achieve the situation when the Russian railways could be used for international transportation between the countries of the European and Asian-Pacific regions. Judging objectively, despite the process of creating alternative routes, the Russian railways can offer minimum time and cost for cargo delivery during transcontinental transportation and this very advantage should be fully used for our countries economic development", Vladimir Yakunin stated at the recent meeting of European railway administrations general directors held in Saint-Petersburg.
In his opinion, to make these advantages available for a client, first of all, effective cooperation with ports should be settled, as well as "through" logistics of the door-to-door transcontinental transportation.
The key advantage is time
The TransSiberian line is seen as a major international transport corridor in Russia. Its system of railways, stations and joints stretches from the Russian western borders to the Pacific ones. According to transporters, this very route should become one of the most actively used links between the countries of Asian-Pacific region and the EU. Moreover, it promises to perform as an alternative to the Suez Canal sea route. It is quite clear that winning the settled sea cargo flow to land will not be easy, although, in this relation, great expectations are laid on the annual increase of fresh cargo flows formed in China, Korea and Japan that are prospective and dynamically developing.
Containerised cargo transportation volume is constantly growing and amounts to 150 thousand TEU in 2005. At the same time, technological opportunities of the line for transcontinental transit reach 300 thousand TEU per annum. Moreover, capacities for Chinese direction are being expanded now: the Karymskaya-Zabaikalsk line is being modernized, which will allow to increase cargo transportation volumes significantly and reduce the transportation period for cargo delivered from Europe to the Eastern China.
In future, when the Baikal-Amur line enters the Eurasian and domestic cargo flows operation, the TransSiberian route will become capable of handling one million TEU per year. The main advantage of this route is travelling time, which makes 12 days for speeded block trains set off from Nakhodka sea port to the western Russian border.
"Recently we've invested a lot into clients' service improvement, as well as in transportation safety and control increase. Information technologies actively used at the TransSib allow not only to plan in detail, but also control cargo and cars movement along the whole route on-line", Vladimir Yakunin says.
Also great attention is paid to the "North-South" international transport corridor development in order to set cargo delivery between Europe and the countries of the Persian Gulf and the Indian Ocean. According to OAO RZD, trade market of containerized cargo for this direction can amount to 15 mln tonnes or 100-150 thousand TEU per year. Transit cargo transportation time via international "North-South" transport corridor will have to reduce nearly twofold, as compared to the sea route, and transportation price for one container from Germany and Finland to India will cost significantly less, again as compared to the sea route.
Mongolian Winds
The structural reform of the Russian railway transport started from the approval of a new legislative base and the establishment of OAO RZD in October 2003; now it allows to enhance cooperation with foreign railways by launching joint-stock companies. Thus, to reach the European market under mutually profitable conditions a joint venture with Deutche Bahn specialized transportation company is being established (see "Russia-Germany: joint company for mutual advantage", p. 10). Its task is to create Eurasian links using the Russian railways.
One more reserve to mention is the intensification of OAO RZD's collaboration with foreign transport companies for joint servicing of cargo owners, establishing the agent net in the European and Asian countries to provide opportunities for keeping in touch with clients. In particular, the project under "Mongolian vector" code name has been launched. It aims to increase the volume of foreign trade cargo transportated from China to Europe via Russia (see The RZD-Partner International, issue 3). The first containerised train was dispatched from China to Germany in March. The train crossed the territories of six countries (China, Mongolia, Russia, Belarus, Poland, Germany), having covered in general over 10 thousand kilometers in 14 days. This project is a result of joint efforts by railways and forwarding companies of Russia, Belarus, Mongolia and China. This way one more container route between China and Europe with the use of the TransSib was opened, which makes it possible to shorten cargo delivery time fivefold compared to the sea route. Today an opportunity to create a constant transport route between Finland and China with the capacity of 100 thousand TEU per annum is discussed.
International relations development becomes a more and more important issue in the prospect of Russia joining the WTO, which results in the necessity to provide transport services of high quality and high-technology nature. In particular, this has much to do with the unification of railway tariffs for foreign trade cargo and domestic cargo transportation that will attract Russian export cargo flows.
ОАО RZD pays attention to the modernization of the transportation process control system: with this purpose, unified dispatch centers of transportation control are established in the large sectors of the net.
"The company has spent much money to improve the technical state of the railways supporting net. Now we plan to focus on the RF border stations development, as well as on the newest methods of cargo transportation based on logistic principles. All this will make grounds to implement modern transportation potential in full", Vladimir Yakunin claimed.
To coordinateis to control
OAO RZD management actively participates in the work of such international transport organizations as the UN European Economic Commission, the UNESCAP, the Organization of Railways Cooperation etc. Special attention is paid to the activities of the International Coordinating Counsil on TransSiberian Transportation (ICCTT) established in 1993. At present it comprises 128 members from 28 countries, including 16 railway administrations, 8 shipping companies, 4 foreign freight forwarders associations and big forwarding companies. Traditionally the ICCTT is chaired by ОАО RZD president. Deputies chairmen are presidents of Freight forwarders association from Russia, South Korea, Europe, Austria and Japan. ОАО RZD believes this organization provides a comfortable and effective mode for international cooperation to all who desire it.
Last ICCTT session was held in late October, 2005 in Seoul. About 300 members of the Counsil participated in it, including invited representatives from 22 countries: Korea, Poland, Slovakia, Czech Republic, Germany, Austria, Switzerland, Finland, Ukraine, Belarus, Kazakhstan, Lithuania, Latvia, Estonia, France, Sweden, the Netherlands, Japan, Mongolia, China, Thailand etc. Issues of additional cargo volumes attraction towards the TransSiberian route by means of increasing transportation competitiveness were considered at the session.
Speaking at the conference, Vladimir Yakunin, OAO RZD and ICCTT head, stated, "To reach the world standards of transportation, to increase cargo transportation competitiveness within the world communication, our company should provide foreign cargo owners with proofs of railway transport attractiveness, both along the TransSiberian route and in other railway transport corridors. This leads us to modernize technology in accordance with the modern market demands, to create infrastructure of world level quality, to complete the total renovation of the Eastern Siberia and the TransBaikal railways and work out a mechanism that would assist in solution of large-scaled logistic problems within the frames of global trade-economic relations development".
Obviously, ОАО RZD intends to struggle intensively for strengthening its role as the world's biggest infrastructure company and prove its profitability and reliability in cargo transportation.
ANDRIS LAUTSEVICHYUS
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From door to door
"Nowadays nobody questions the necessity to employ Russia as a transit bridge joining Europe and Asia. The geopolitical location of our country predestines its key role for setting and sustaining Eurasian links", OAO RZD President Vladimir Yakunin said. He also reminded that the "route map" signed by the RF President Vladimir Putin and by the EU government in May envisages the creation of a unified deeply integrated all-European transport system, where railway transport is to play a major part.
Today, according to the European Agreement on the most important lines of international multimodal transportation and respective objects, with Russia being its member since 1994, OAO RZD is taking a whole complex of measures to bring railway lines, terminals and border check-points close to the settled by the Agreement parameters and maintenance demands in accordance with European standards.
The process of the Russian railways integration into the European transport system is being carried out in several directions.
The first one is the harmonization of the transport legislation within the European transport system and introduction of the simplified procedures of crossing the border. This means that the transportation documents should be unified and unified standards of customs and border control should be introduced. The utmost purpose of this policy lies in speeding up the process of passenger and cargo transportation via neighboring countries' borders and reducing the involved assets cost. Thus, OAO RZD believes that cargo turnover between Russia and the EU can be doubled at the expense of taking such measures directed at administrative and technological procedures optimization, re-registration of transportation documents and harmonization of transport legislation. That is to say, measures that do not need heavy investment.
According to OAO RZD, the reduction of time wasted on documents registration and cars idling at border stations can shorten cargo delivery period for Moscow-Berlin route threefold (from 21 days to 7 days). Moreover, under conditions of better organization of transportation and new technologies put into operation at border stations this period could be shortened by one-two days more. These steps will increase the attractiveness of PanEuropean transport corridor № 2 significantly.
The second direction is creating the technology of rolling stock operation for two technological systems. First of all, that means the use of double power supply electric locomotives that would allow to lengthen the tractive arms for international transportation servicing, as well as the use of expanding wheel pairs in passenger trains for switching from the West-European gauge standard to the Russian one. As a result, maintenance expenditures on international transportation can be reduced, along with the time of journey.
The third aspect focuses on technology of export-import transit transportation that needs to be modernized and on the optimization of relations with foreign railways. In this direction OAO RZD plans to make the following steps: to establish the system of unified information-logistic centers, to improve tariff policy and to increase investment attractiveness.
The fourth line includes the programme of developing international transport corridors, railway border check-points and port railway stations, as well as the launch of intermodal companies to co-ordinate transcontinental container transportation.
"As a result, we plan to achieve the situation when the Russian railways could be used for international transportation between the countries of the European and Asian-Pacific regions. Judging objectively, despite the process of creating alternative routes, the Russian railways can offer minimum time and cost for cargo delivery during transcontinental transportation and this very advantage should be fully used for our countries economic development", Vladimir Yakunin stated at the recent meeting of European railway administrations general directors held in Saint-Petersburg.
In his opinion, to make these advantages available for a client, first of all, effective cooperation with ports should be settled, as well as "through" logistics of the door-to-door transcontinental transportation.
The key advantage is time
The TransSiberian line is seen as a major international transport corridor in Russia. Its system of railways, stations and joints stretches from the Russian western borders to the Pacific ones. According to transporters, this very route should become one of the most actively used links between the countries of Asian-Pacific region and the EU. Moreover, it promises to perform as an alternative to the Suez Canal sea route. It is quite clear that winning the settled sea cargo flow to land will not be easy, although, in this relation, great expectations are laid on the annual increase of fresh cargo flows formed in China, Korea and Japan that are prospective and dynamically developing.
Containerised cargo transportation volume is constantly growing and amounts to 150 thousand TEU in 2005. At the same time, technological opportunities of the line for transcontinental transit reach 300 thousand TEU per annum. Moreover, capacities for Chinese direction are being expanded now: the Karymskaya-Zabaikalsk line is being modernized, which will allow to increase cargo transportation volumes significantly and reduce the transportation period for cargo delivered from Europe to the Eastern China.
In future, when the Baikal-Amur line enters the Eurasian and domestic cargo flows operation, the TransSiberian route will become capable of handling one million TEU per year. The main advantage of this route is travelling time, which makes 12 days for speeded block trains set off from Nakhodka sea port to the western Russian border.
"Recently we've invested a lot into clients' service improvement, as well as in transportation safety and control increase. Information technologies actively used at the TransSib allow not only to plan in detail, but also control cargo and cars movement along the whole route on-line", Vladimir Yakunin says.
Also great attention is paid to the "North-South" international transport corridor development in order to set cargo delivery between Europe and the countries of the Persian Gulf and the Indian Ocean. According to OAO RZD, trade market of containerized cargo for this direction can amount to 15 mln tonnes or 100-150 thousand TEU per year. Transit cargo transportation time via international "North-South" transport corridor will have to reduce nearly twofold, as compared to the sea route, and transportation price for one container from Germany and Finland to India will cost significantly less, again as compared to the sea route.
Mongolian Winds
The structural reform of the Russian railway transport started from the approval of a new legislative base and the establishment of OAO RZD in October 2003; now it allows to enhance cooperation with foreign railways by launching joint-stock companies. Thus, to reach the European market under mutually profitable conditions a joint venture with Deutche Bahn specialized transportation company is being established (see "Russia-Germany: joint company for mutual advantage", p. 10). Its task is to create Eurasian links using the Russian railways.
One more reserve to mention is the intensification of OAO RZD's collaboration with foreign transport companies for joint servicing of cargo owners, establishing the agent net in the European and Asian countries to provide opportunities for keeping in touch with clients. In particular, the project under "Mongolian vector" code name has been launched. It aims to increase the volume of foreign trade cargo transportated from China to Europe via Russia (see The RZD-Partner International, issue 3). The first containerised train was dispatched from China to Germany in March. The train crossed the territories of six countries (China, Mongolia, Russia, Belarus, Poland, Germany), having covered in general over 10 thousand kilometers in 14 days. This project is a result of joint efforts by railways and forwarding companies of Russia, Belarus, Mongolia and China. This way one more container route between China and Europe with the use of the TransSib was opened, which makes it possible to shorten cargo delivery time fivefold compared to the sea route. Today an opportunity to create a constant transport route between Finland and China with the capacity of 100 thousand TEU per annum is discussed.
International relations development becomes a more and more important issue in the prospect of Russia joining the WTO, which results in the necessity to provide transport services of high quality and high-technology nature. In particular, this has much to do with the unification of railway tariffs for foreign trade cargo and domestic cargo transportation that will attract Russian export cargo flows.
ОАО RZD pays attention to the modernization of the transportation process control system: with this purpose, unified dispatch centers of transportation control are established in the large sectors of the net.
"The company has spent much money to improve the technical state of the railways supporting net. Now we plan to focus on the RF border stations development, as well as on the newest methods of cargo transportation based on logistic principles. All this will make grounds to implement modern transportation potential in full", Vladimir Yakunin claimed.
To coordinateis to control
OAO RZD management actively participates in the work of such international transport organizations as the UN European Economic Commission, the UNESCAP, the Organization of Railways Cooperation etc. Special attention is paid to the activities of the International Coordinating Counsil on TransSiberian Transportation (ICCTT) established in 1993. At present it comprises 128 members from 28 countries, including 16 railway administrations, 8 shipping companies, 4 foreign freight forwarders associations and big forwarding companies. Traditionally the ICCTT is chaired by ОАО RZD president. Deputies chairmen are presidents of Freight forwarders association from Russia, South Korea, Europe, Austria and Japan. ОАО RZD believes this organization provides a comfortable and effective mode for international cooperation to all who desire it.
Last ICCTT session was held in late October, 2005 in Seoul. About 300 members of the Counsil participated in it, including invited representatives from 22 countries: Korea, Poland, Slovakia, Czech Republic, Germany, Austria, Switzerland, Finland, Ukraine, Belarus, Kazakhstan, Lithuania, Latvia, Estonia, France, Sweden, the Netherlands, Japan, Mongolia, China, Thailand etc. Issues of additional cargo volumes attraction towards the TransSiberian route by means of increasing transportation competitiveness were considered at the session.
Speaking at the conference, Vladimir Yakunin, OAO RZD and ICCTT head, stated, "To reach the world standards of transportation, to increase cargo transportation competitiveness within the world communication, our company should provide foreign cargo owners with proofs of railway transport attractiveness, both along the TransSiberian route and in other railway transport corridors. This leads us to modernize technology in accordance with the modern market demands, to create infrastructure of world level quality, to complete the total renovation of the Eastern Siberia and the TransBaikal railways and work out a mechanism that would assist in solution of large-scaled logistic problems within the frames of global trade-economic relations development".
Obviously, ОАО RZD intends to struggle intensively for strengthening its role as the world's biggest infrastructure company and prove its profitability and reliability in cargo transportation.
ANDRIS LAUTSEVICHYUS
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From door to door
"Nowadays nobody questions the necessity to employ Russia as a transit bridge joining Europe and Asia. The geopolitical location of our country predestines its key role for setting and sustaining Eurasian links", OAO RZD President Vladimir Yakunin said. He also reminded that the "route map" signed by the RF President Vladimir Putin and by the EU government in May envisages the creation of a unified deeply integrated all-European transport system, where railway transport is to play a major part.
Today, according to the European Agreement on the most important lines of international multimodal transportation and respective objects, with Russia being its member since 1994, OAO RZD is taking a whole complex of measures to bring railway lines, terminals and border check-points close to the settled by the Agreement parameters and maintenance demands in accordance with European standards.
The process of the Russian railways integration into the European transport system is being carried out in several directions.
The first one is the harmonization of the transport legislation within the European transport system and introduction of the simplified procedures of crossing the border. This means that the transportation documents should be unified and unified standards of customs and border control should be introduced. The utmost purpose of this policy lies in speeding up the process of passenger and cargo transportation via neighboring countries' borders and reducing the involved assets cost. Thus, OAO RZD believes that cargo turnover between Russia and the EU can be doubled at the expense of taking such measures directed at administrative and technological procedures optimization, re-registration of transportation documents and harmonization of transport legislation. That is to say, measures that do not need heavy investment.
According to OAO RZD, the reduction of time wasted on documents registration and cars idling at border stations can shorten cargo delivery period for Moscow-Berlin route threefold (from 21 days to 7 days). Moreover, under conditions of better organization of transportation and new technologies put into operation at border stations this period could be shortened by one-two days more. These steps will increase the attractiveness of PanEuropean transport corridor № 2 significantly.
The second direction is creating the technology of rolling stock operation for two technological systems. First of all, that means the use of double power supply electric locomotives that would allow to lengthen the tractive arms for international transportation servicing, as well as the use of expanding wheel pairs in passenger trains for switching from the West-European gauge standard to the Russian one. As a result, maintenance expenditures on international transportation can be reduced, along with the time of journey.
The third aspect focuses on technology of export-import transit transportation that needs to be modernized and on the optimization of relations with foreign railways. In this direction OAO RZD plans to make the following steps: to establish the system of unified information-logistic centers, to improve tariff policy and to increase investment attractiveness.
The fourth line includes the programme of developing international transport corridors, railway border check-points and port railway stations, as well as the launch of intermodal companies to co-ordinate transcontinental container transportation.
"As a result, we plan to achieve the situation when the Russian railways could be used for international transportation between the countries of the European and Asian-Pacific regions. Judging objectively, despite the process of creating alternative routes, the Russian railways can offer minimum time and cost for cargo delivery during transcontinental transportation and this very advantage should be fully used for our countries economic development", Vladimir Yakunin stated at the recent meeting of European railway administrations general directors held in Saint-Petersburg.
In his opinion, to make these advantages available for a client, first of all, effective cooperation with ports should be settled, as well as "through" logistics of the door-to-door transcontinental transportation.
The key advantage is time
The TransSiberian line is seen as a major international transport corridor in Russia. Its system of railways, stations and joints stretches from the Russian western borders to the Pacific ones. According to transporters, this very route should become one of the most actively used links between the countries of Asian-Pacific region and the EU. Moreover, it promises to perform as an alternative to the Suez Canal sea route. It is quite clear that winning the settled sea cargo flow to land will not be easy, although, in this relation, great expectations are laid on the annual increase of fresh cargo flows formed in China, Korea and Japan that are prospective and dynamically developing.
Containerised cargo transportation volume is constantly growing and amounts to 150 thousand TEU in 2005. At the same time, technological opportunities of the line for transcontinental transit reach 300 thousand TEU per annum. Moreover, capacities for Chinese direction are being expanded now: the Karymskaya-Zabaikalsk line is being modernized, which will allow to increase cargo transportation volumes significantly and reduce the transportation period for cargo delivered from Europe to the Eastern China.
In future, when the Baikal-Amur line enters the Eurasian and domestic cargo flows operation, the TransSiberian route will become capable of handling one million TEU per year. The main advantage of this route is travelling time, which makes 12 days for speeded block trains set off from Nakhodka sea port to the western Russian border.
"Recently we've invested a lot into clients' service improvement, as well as in transportation safety and control increase. Information technologies actively used at the TransSib allow not only to plan in detail, but also control cargo and cars movement along the whole route on-line", Vladimir Yakunin says.
Also great attention is paid to the "North-South" international transport corridor development in order to set cargo delivery between Europe and the countries of the Persian Gulf and the Indian Ocean. According to OAO RZD, trade market of containerized cargo for this direction can amount to 15 mln tonnes or 100-150 thousand TEU per year. Transit cargo transportation time via international "North-South" transport corridor will have to reduce nearly twofold, as compared to the sea route, and transportation price for one container from Germany and Finland to India will cost significantly less, again as compared to the sea route.
Mongolian Winds
The structural reform of the Russian railway transport started from the approval of a new legislative base and the establishment of OAO RZD in October 2003; now it allows to enhance cooperation with foreign railways by launching joint-stock companies. Thus, to reach the European market under mutually profitable conditions a joint venture with Deutche Bahn specialized transportation company is being established (see "Russia-Germany: joint company for mutual advantage", p. 10). Its task is to create Eurasian links using the Russian railways.
One more reserve to mention is the intensification of OAO RZD's collaboration with foreign transport companies for joint servicing of cargo owners, establishing the agent net in the European and Asian countries to provide opportunities for keeping in touch with clients. In particular, the project under "Mongolian vector" code name has been launched. It aims to increase the volume of foreign trade cargo transportated from China to Europe via Russia (see The RZD-Partner International, issue 3). The first containerised train was dispatched from China to Germany in March. The train crossed the territories of six countries (China, Mongolia, Russia, Belarus, Poland, Germany), having covered in general over 10 thousand kilometers in 14 days. This project is a result of joint efforts by railways and forwarding companies of Russia, Belarus, Mongolia and China. This way one more container route between China and Europe with the use of the TransSib was opened, which makes it possible to shorten cargo delivery time fivefold compared to the sea route. Today an opportunity to create a constant transport route between Finland and China with the capacity of 100 thousand TEU per annum is discussed.
International relations development becomes a more and more important issue in the prospect of Russia joining the WTO, which results in the necessity to provide transport services of high quality and high-technology nature. In particular, this has much to do with the unification of railway tariffs for foreign trade cargo and domestic cargo transportation that will attract Russian export cargo flows.
ОАО RZD pays attention to the modernization of the transportation process control system: with this purpose, unified dispatch centers of transportation control are established in the large sectors of the net.
"The company has spent much money to improve the technical state of the railways supporting net. Now we plan to focus on the RF border stations development, as well as on the newest methods of cargo transportation based on logistic principles. All this will make grounds to implement modern transportation potential in full", Vladimir Yakunin claimed.
To coordinateis to control
OAO RZD management actively participates in the work of such international transport organizations as the UN European Economic Commission, the UNESCAP, the Organization of Railways Cooperation etc. Special attention is paid to the activities of the International Coordinating Counsil on TransSiberian Transportation (ICCTT) established in 1993. At present it comprises 128 members from 28 countries, including 16 railway administrations, 8 shipping companies, 4 foreign freight forwarders associations and big forwarding companies. Traditionally the ICCTT is chaired by ОАО RZD president. Deputies chairmen are presidents of Freight forwarders association from Russia, South Korea, Europe, Austria and Japan. ОАО RZD believes this organization provides a comfortable and effective mode for international cooperation to all who desire it.
Last ICCTT session was held in late October, 2005 in Seoul. About 300 members of the Counsil participated in it, including invited representatives from 22 countries: Korea, Poland, Slovakia, Czech Republic, Germany, Austria, Switzerland, Finland, Ukraine, Belarus, Kazakhstan, Lithuania, Latvia, Estonia, France, Sweden, the Netherlands, Japan, Mongolia, China, Thailand etc. Issues of additional cargo volumes attraction towards the TransSiberian route by means of increasing transportation competitiveness were considered at the session.
Speaking at the conference, Vladimir Yakunin, OAO RZD and ICCTT head, stated, "To reach the world standards of transportation, to increase cargo transportation competitiveness within the world communication, our company should provide foreign cargo owners with proofs of railway transport attractiveness, both along the TransSiberian route and in other railway transport corridors. This leads us to modernize technology in accordance with the modern market demands, to create infrastructure of world level quality, to complete the total renovation of the Eastern Siberia and the TransBaikal railways and work out a mechanism that would assist in solution of large-scaled logistic problems within the frames of global trade-economic relations development".
Obviously, ОАО RZD intends to struggle intensively for strengthening its role as the world's biggest infrastructure company and prove its profitability and reliability in cargo transportation.
ANDRIS LAUTSEVICHYUS
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