Array
(
    [ID] => 107728
    [~ID] => 107728
    [IBLOCK_ID] => 25
    [~IBLOCK_ID] => 25
    [IBLOCK_SECTION_ID] => 1443
    [~IBLOCK_SECTION_ID] => 1443
    [NAME] => Panorama
    [~NAME] => Panorama
    [ACTIVE_FROM_X] => 
    [~ACTIVE_FROM_X] => 
    [ACTIVE_FROM] => 
    [~ACTIVE_FROM] => 
    [TIMESTAMP_X] => 24.10.2016 17:13:43
    [~TIMESTAMP_X] => 24.10.2016 17:13:43
    [DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2776/
    [~DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2776/
    [LIST_PAGE_URL] => /info/index.php?ID=25
    [~LIST_PAGE_URL] => /info/index.php?ID=25
    [DETAIL_TEXT] => On June 22, Vladimir Yakunin, OAO RZD President and Georgy Boos, the head of the Kaliningrad region signed Protocol «On further development of the cooperation between the Kaliningrad region administration and OAO RZD» during the meeting in Kaliningrad.

The general plan of Kaliningrad transport junction, including the new railway branch passing over Kaliningrad and the construction of a sorting yard out of the city, will be developed in the framework of Federal programmes «RF transport system modernization» and «Kaliningrad region development». The sorting yard in Baltiysk will be necessary. The sides agreed that, to improve the freight transportation, it is necessary to reduce the railway crossings. «The railway infrastructure is the key issue for the development of the region», G.Boos said. It must be invested in not only by OAO RZD, but also from the Federal Budget.



Kazakhstan Increases Cost of Railway Freight Transportation

In accordance with the relevant decree of AO NC Kazakstan Temir Zholy, Kazakhstan increased the cost of freight transportation by railway. 

In accordance with the document, tariff for freight wagons and containers use, as well as for value-added logistic services, increases. The coefficient to the acting tariff is 1.234. Meanwhile, progressed payment for wagons and containers idling is implemented. If idling continues from 31 to 45 days, the tariff increases by 30%; if it goes over 45 days, the tariff grows by 200%. The document came in force on August 1, 2006.



Russian, Baltic and Finnish Railways Signed Protocol

On June 21, 2006, a protocol on the General scheme for transport infrastructure development in the Baltic region was signed.

The document was signed by Viktor Stepov, Head of the Octyabrskaya (October) railway (affiliate of OAO RZD); Ugis Magonis, Head of GAO Latvijas Dzelzcels (Latvian Railway); Stasis Dailidka, Lietuvos Gelezinkeliai (Lithuanian railway) Director General; Riivo Sinijarv, Eesti Raudtee (Estonian Railway) Member of the Board – Deputy Executive Director, and Ilkka Seppjanen, VR Cargo CEO in the framework of the round table «Coordination of transport and IT infrastructure development in the Baltic region», held at the Saint-Petersburg Transport and Logistic Forum, organized by OAO RZD and the «RZD-Partner» business magazine. The parties discussed mechanisms of long term and short term forecasts to be developed to optimize investments, to develop and use the infrastructure more efficiently. 

The second issue of the round table discussion touched the problem of efficiency while using the infrastructure. Viktor Stepov suggested using the Logistics centre existing at the Octyabrskaya (October) railway for joint coordination of the railway transportation in the Baltic region. Experts of the Council in cooperation with GIPROTransTEI and the Octyabrskaya railway Information and Logistics centre will possibly design the project.



Tariffs on Oil Transportation by Railway Are reduced

The RF Ministry of Transport set a discount of 50% on transit transportation of crude oil and products by railway to the ports of the Black Sea and the Sea of Azov. The correspondent decree was registered in the RF Ministry of Justice at the end of July 2006. The discounts are in force till December 31, 2006. 

The discount is used for transportation of oil destined for the port of Feodosiya (Ukraine) via the Samur and Uspenskaya stations; oil and products destined for the port of Makhachkala via the Samur station; oil and products from Turkmenistan to Ukrainian ports via the port of Makhachkala, the Uspenskaya station and the ports of the Black Sea. Besides, the RF Ministry of Transport implemented a discount of 48% on transit transportation of mazut from Kazakhstan via Aksarayskaya-2 station by railway in case of direct railway-ferry communication via the ports of Kavkaz (Russia) and the Crimea (Ukraine). The discount is in force till November 30, 2006.



OAO RZD Invests into Transportation Development

OAO Russian Railways plans to invest in transportation development at least RUR 1.137 billion in 2006-2010 and RUR 1.413 billion in 2011-2015. 

This was announced by the company’s President Vladimir Yakunin at the briefing devoted to the results of the meeting of OAO RZD’s Board, where the project of Strategic programme of company’s development and the General Scheme of railways Development till 2010 were discussed. The total volume of OAO RZD’s investment into transportation development amounts to RUR 200 billion in 2006.  OAO RZD President said that the Board discussed the impossibility of using mechanisms of joint investment nowadays. «The order has not yet been worked out. There is no normative or legislative basis, which would enable private companies to invest into railway infrastructure», he stressed. If the project goes ahead, it will be a powerful stimulus for the state economy’s development: transportation will become more available, besides, its quality will improve, and there will be non-discriminating access to infrastructure. Moreover, the Strategic Programme will ensure a transparent formation and easy forecasting of railway tariffs and their relative reduction for the ultimate consumer.



Concept of Logistic Company Approved 

«The task is to increase road vehicles transportation by two and a half times by 2015», Vladimir Yakunin, OAO RZD President said at the OAO RZD Board of Directors meeting held in July.

The Board of Directors of OAO RZD approved the concept of launching a new logistic company specializing in transportation of road vehicles. The Board of Directors also decided that the RF Agency of Federal Property Management would assess the authorized capital of the new company. Afterwards a secret vote will be held to make the final decision.

OAO RZD will launch the company in cooperation with the Transgroup company. OAO RZD will own 51% shareholding. OAO RZD will invest 4,500 specialized platforms, including 1,583 covered platforms (each of them can transport 10 vehicles on average), for the total sum of RUR 1.8 billion into the company’s authorized capital. The rest of the company’s park will consist of open platforms, for modernization of which Transgroup’s investments will be needed.

In 2007, the company’s forecasted revenue may reach RUR 5.6 billion; net profit – RUR 700 million. If in the next five years the company manages to attract investments for the total sum of RUR 10.5 billion, thus increasing their park of specialized platforms to 4,500 units, the company’s turnover and net profit may amount to RUR 18 billion and RUR 2.8 billion respectively by 2016.

In the coming five years, 1500 platforms are to be modernized to prolong their life-time by five years. 3,000 covered auto carriers are to be purchased. RUR 200 million will be invested into the construction of new terminals and equipment for them in 2007-2008. The first terminal will be constructed at the Mikhnevo station. Similar terminals will be built in Ekaterinburg, Novosibirsk and the port of Zarubino (Far East).

Vice-President of OAO RZD Salman Babayev said that Transgroup has been using leased from OAO RZD specialized rolling stock since the beginning of 2006. Experts of OAO RZD reported that in six months of the current year vehicles transportation by railway grew by 17% year-on-year.

«Nowadays, the share of vehicles transportation by railway is 10%. When the joint-stock company is launched, we plan to increase the share to 25% by 2012», OAO RZD President Vladimir Yakunin said.



Project of AO Skorostnye Magistrali Approved

In July, the Board of Directors of OAO RZD approved the project of launching the joint-stock company Skorostnye Magistrali. 

The joint-stock company Skorostnye Magistrali will be launched by OAO RZD and ZAO Transmashholding. The share of OAO RZD will be 75%+1 share, while the one of Transmashholding will be 25%-1 share. The company’s authorized capital will be RUR 1 million. The joint-stock company Skorostnye Magistrali will be OAO RZD’s instrument to carry out the investment project of a high-speed railway line Moscow-Saint Petersburg.

«The launched company will function as the project office», said OAO RZD President Vladimir Yakunin. 



TransCreditBank Attracts Credit

TransCreditBank attracted a syndicated credit of USD 100 million. The credit agreement was signed on July 26, 2006.

The credit term is two years; it can then be prolonged for one more year. The credit rate is LIBOR+70 basic points annually.

Eleven foreign banks took part in the syndicate. Organizers and bookrunners are ABN Amro Bank N.V. and Barclays Capital. Bank Austria Creditanstalt AG acts as an organizer and financial agent. Other participants of the syndicate are ICICI Bank Limited, Depfa Investment Bank Limited, Dresdner Bank AG, Raiffeisen Zentalbank, Standard Bank PLC, MKB Bank Nyrt and The Bank of New York.

The attracted means will be used to finance foreign trade projects of TransCreditBank’s clients and partial re-financing of existing foreign loans.



Baltic Dialogue: Equal Conditions for All Companies

On July 21, a protocol of amendment to the Agreement on cooperation in the railway transport sector between the Russian Government and the Estonian Government was signed.

The document was signed by Igor Levitin, the RF Transport Minister, and Edgar Savisaar, Minister of Transport and Communications of Estonia, The agreement defines the basic rules of exploitation of the railway infrastructure in both states. «The peculiar feature of the rules is that equal access to the infrastructure will be set for both private and state companies», Igor Levitin said. 

Edgar Savisaar mentioned that the agreement is to improve the cooperation between the two neighbouring states. 



OAO RZD Counts on Investment Fund

OAO RZD believes that the Investment Fund will help to carry out the largest projects of railway infrastructure development. 

Partucalarly the construction of the tunnel on Komsomolsk-on-Amur – Sovetskaya Gavan line. And the electrification of Karymskaya-Zabaikalsk and Trubnaya-Aksarayskaya lines are mentioned. «I believe that the projects will be quite competitive to get the state support from the investment Fund», said First Vice President of OAO RZD Vadim Morozov. 

Besides, he noticed that the company expects the state to support the construction of a railway line for freight transportation in the framework of the project of high speed passenger communication on Saint-Petersburg-Helsinki line. 



Import of Second-Hand Trucks Restricted

The Prime Minister of the Russian Federation Mikhail Fradkov signed a Decree on change of customs dues on import in Russia for tractors and trucks the age of which exceeds five years. 

Until the Decree was adopted, customs dues of EUR 2.2 for each cub sm of the working volume of engine were applied to truck tractors and trucks with the mass of over five tons and the age of more than 7 years. 

The Decree is aimed at stimulating foreign companies to launch their own assembling to produce trucks. 

The new dues are in force for 9 months. However, experts believe that after the period, another decree, making the dues permanent, will be adopted.

    [~DETAIL_TEXT] => On June 22, Vladimir Yakunin, OAO RZD President and Georgy Boos, the head of the Kaliningrad region signed Protocol «On further development of the cooperation between the Kaliningrad region administration and OAO RZD» during the meeting in Kaliningrad.

The general plan of Kaliningrad transport junction, including the new railway branch passing over Kaliningrad and the construction of a sorting yard out of the city, will be developed in the framework of Federal programmes «RF transport system modernization» and «Kaliningrad region development». The sorting yard in Baltiysk will be necessary. The sides agreed that, to improve the freight transportation, it is necessary to reduce the railway crossings. «The railway infrastructure is the key issue for the development of the region», G.Boos said. It must be invested in not only by OAO RZD, but also from the Federal Budget.



Kazakhstan Increases Cost of Railway Freight Transportation

In accordance with the relevant decree of AO NC Kazakstan Temir Zholy, Kazakhstan increased the cost of freight transportation by railway. 

In accordance with the document, tariff for freight wagons and containers use, as well as for value-added logistic services, increases. The coefficient to the acting tariff is 1.234. Meanwhile, progressed payment for wagons and containers idling is implemented. If idling continues from 31 to 45 days, the tariff increases by 30%; if it goes over 45 days, the tariff grows by 200%. The document came in force on August 1, 2006.



Russian, Baltic and Finnish Railways Signed Protocol

On June 21, 2006, a protocol on the General scheme for transport infrastructure development in the Baltic region was signed.

The document was signed by Viktor Stepov, Head of the Octyabrskaya (October) railway (affiliate of OAO RZD); Ugis Magonis, Head of GAO Latvijas Dzelzcels (Latvian Railway); Stasis Dailidka, Lietuvos Gelezinkeliai (Lithuanian railway) Director General; Riivo Sinijarv, Eesti Raudtee (Estonian Railway) Member of the Board – Deputy Executive Director, and Ilkka Seppjanen, VR Cargo CEO in the framework of the round table «Coordination of transport and IT infrastructure development in the Baltic region», held at the Saint-Petersburg Transport and Logistic Forum, organized by OAO RZD and the «RZD-Partner» business magazine. The parties discussed mechanisms of long term and short term forecasts to be developed to optimize investments, to develop and use the infrastructure more efficiently. 

The second issue of the round table discussion touched the problem of efficiency while using the infrastructure. Viktor Stepov suggested using the Logistics centre existing at the Octyabrskaya (October) railway for joint coordination of the railway transportation in the Baltic region. Experts of the Council in cooperation with GIPROTransTEI and the Octyabrskaya railway Information and Logistics centre will possibly design the project.



Tariffs on Oil Transportation by Railway Are reduced

The RF Ministry of Transport set a discount of 50% on transit transportation of crude oil and products by railway to the ports of the Black Sea and the Sea of Azov. The correspondent decree was registered in the RF Ministry of Justice at the end of July 2006. The discounts are in force till December 31, 2006. 

The discount is used for transportation of oil destined for the port of Feodosiya (Ukraine) via the Samur and Uspenskaya stations; oil and products destined for the port of Makhachkala via the Samur station; oil and products from Turkmenistan to Ukrainian ports via the port of Makhachkala, the Uspenskaya station and the ports of the Black Sea. Besides, the RF Ministry of Transport implemented a discount of 48% on transit transportation of mazut from Kazakhstan via Aksarayskaya-2 station by railway in case of direct railway-ferry communication via the ports of Kavkaz (Russia) and the Crimea (Ukraine). The discount is in force till November 30, 2006.



OAO RZD Invests into Transportation Development

OAO Russian Railways plans to invest in transportation development at least RUR 1.137 billion in 2006-2010 and RUR 1.413 billion in 2011-2015. 

This was announced by the company’s President Vladimir Yakunin at the briefing devoted to the results of the meeting of OAO RZD’s Board, where the project of Strategic programme of company’s development and the General Scheme of railways Development till 2010 were discussed. The total volume of OAO RZD’s investment into transportation development amounts to RUR 200 billion in 2006.  OAO RZD President said that the Board discussed the impossibility of using mechanisms of joint investment nowadays. «The order has not yet been worked out. There is no normative or legislative basis, which would enable private companies to invest into railway infrastructure», he stressed. If the project goes ahead, it will be a powerful stimulus for the state economy’s development: transportation will become more available, besides, its quality will improve, and there will be non-discriminating access to infrastructure. Moreover, the Strategic Programme will ensure a transparent formation and easy forecasting of railway tariffs and their relative reduction for the ultimate consumer.



Concept of Logistic Company Approved 

«The task is to increase road vehicles transportation by two and a half times by 2015», Vladimir Yakunin, OAO RZD President said at the OAO RZD Board of Directors meeting held in July.

The Board of Directors of OAO RZD approved the concept of launching a new logistic company specializing in transportation of road vehicles. The Board of Directors also decided that the RF Agency of Federal Property Management would assess the authorized capital of the new company. Afterwards a secret vote will be held to make the final decision.

OAO RZD will launch the company in cooperation with the Transgroup company. OAO RZD will own 51% shareholding. OAO RZD will invest 4,500 specialized platforms, including 1,583 covered platforms (each of them can transport 10 vehicles on average), for the total sum of RUR 1.8 billion into the company’s authorized capital. The rest of the company’s park will consist of open platforms, for modernization of which Transgroup’s investments will be needed.

In 2007, the company’s forecasted revenue may reach RUR 5.6 billion; net profit – RUR 700 million. If in the next five years the company manages to attract investments for the total sum of RUR 10.5 billion, thus increasing their park of specialized platforms to 4,500 units, the company’s turnover and net profit may amount to RUR 18 billion and RUR 2.8 billion respectively by 2016.

In the coming five years, 1500 platforms are to be modernized to prolong their life-time by five years. 3,000 covered auto carriers are to be purchased. RUR 200 million will be invested into the construction of new terminals and equipment for them in 2007-2008. The first terminal will be constructed at the Mikhnevo station. Similar terminals will be built in Ekaterinburg, Novosibirsk and the port of Zarubino (Far East).

Vice-President of OAO RZD Salman Babayev said that Transgroup has been using leased from OAO RZD specialized rolling stock since the beginning of 2006. Experts of OAO RZD reported that in six months of the current year vehicles transportation by railway grew by 17% year-on-year.

«Nowadays, the share of vehicles transportation by railway is 10%. When the joint-stock company is launched, we plan to increase the share to 25% by 2012», OAO RZD President Vladimir Yakunin said.



Project of AO Skorostnye Magistrali Approved

In July, the Board of Directors of OAO RZD approved the project of launching the joint-stock company Skorostnye Magistrali. 

The joint-stock company Skorostnye Magistrali will be launched by OAO RZD and ZAO Transmashholding. The share of OAO RZD will be 75%+1 share, while the one of Transmashholding will be 25%-1 share. The company’s authorized capital will be RUR 1 million. The joint-stock company Skorostnye Magistrali will be OAO RZD’s instrument to carry out the investment project of a high-speed railway line Moscow-Saint Petersburg.

«The launched company will function as the project office», said OAO RZD President Vladimir Yakunin. 



TransCreditBank Attracts Credit

TransCreditBank attracted a syndicated credit of USD 100 million. The credit agreement was signed on July 26, 2006.

The credit term is two years; it can then be prolonged for one more year. The credit rate is LIBOR+70 basic points annually.

Eleven foreign banks took part in the syndicate. Organizers and bookrunners are ABN Amro Bank N.V. and Barclays Capital. Bank Austria Creditanstalt AG acts as an organizer and financial agent. Other participants of the syndicate are ICICI Bank Limited, Depfa Investment Bank Limited, Dresdner Bank AG, Raiffeisen Zentalbank, Standard Bank PLC, MKB Bank Nyrt and The Bank of New York.

The attracted means will be used to finance foreign trade projects of TransCreditBank’s clients and partial re-financing of existing foreign loans.



Baltic Dialogue: Equal Conditions for All Companies

On July 21, a protocol of amendment to the Agreement on cooperation in the railway transport sector between the Russian Government and the Estonian Government was signed.

The document was signed by Igor Levitin, the RF Transport Minister, and Edgar Savisaar, Minister of Transport and Communications of Estonia, The agreement defines the basic rules of exploitation of the railway infrastructure in both states. «The peculiar feature of the rules is that equal access to the infrastructure will be set for both private and state companies», Igor Levitin said. 

Edgar Savisaar mentioned that the agreement is to improve the cooperation between the two neighbouring states. 



OAO RZD Counts on Investment Fund

OAO RZD believes that the Investment Fund will help to carry out the largest projects of railway infrastructure development. 

Partucalarly the construction of the tunnel on Komsomolsk-on-Amur – Sovetskaya Gavan line. And the electrification of Karymskaya-Zabaikalsk and Trubnaya-Aksarayskaya lines are mentioned. «I believe that the projects will be quite competitive to get the state support from the investment Fund», said First Vice President of OAO RZD Vadim Morozov. 

Besides, he noticed that the company expects the state to support the construction of a railway line for freight transportation in the framework of the project of high speed passenger communication on Saint-Petersburg-Helsinki line. 



Import of Second-Hand Trucks Restricted

The Prime Minister of the Russian Federation Mikhail Fradkov signed a Decree on change of customs dues on import in Russia for tractors and trucks the age of which exceeds five years. 

Until the Decree was adopted, customs dues of EUR 2.2 for each cub sm of the working volume of engine were applied to truck tractors and trucks with the mass of over five tons and the age of more than 7 years. 

The Decree is aimed at stimulating foreign companies to launch their own assembling to produce trucks. 

The new dues are in force for 9 months. However, experts believe that after the period, another decree, making the dues permanent, will be adopted.

    [DETAIL_TEXT_TYPE] => html
    [~DETAIL_TEXT_TYPE] => html
    [PREVIEW_TEXT] => V.Yakunin and G.Boos Signed Protocol on Further Cooperation

    [~PREVIEW_TEXT] => V.Yakunin and G.Boos Signed Protocol on Further Cooperation

    [PREVIEW_TEXT_TYPE] => html
    [~PREVIEW_TEXT_TYPE] => html
    [PREVIEW_PICTURE] => 
    [~PREVIEW_PICTURE] => 
    [LANG_DIR] => /
    [~LANG_DIR] => /
    [CODE] => 2776
    [~CODE] => 2776
    [EXTERNAL_ID] => 2776
    [~EXTERNAL_ID] => 2776
    [IBLOCK_TYPE_ID] => info
    [~IBLOCK_TYPE_ID] => info
    [IBLOCK_CODE] => articles_magazines
    [~IBLOCK_CODE] => articles_magazines
    [IBLOCK_EXTERNAL_ID] => 
    [~IBLOCK_EXTERNAL_ID] => 
    [LID] => s1
    [~LID] => s1
    [EDIT_LINK] => 
    [DELETE_LINK] => 
    [DISPLAY_ACTIVE_FROM] => 
    [FIELDS] => Array
        (
        )

    [PROPERTIES] => Array
        (
            [AUTHOR] => Array
                (
                    [ID] => 97
                    [IBLOCK_ID] => 25
                    [NAME] => Автор
                    [ACTIVE] => Y
                    [SORT] => 400
                    [CODE] => AUTHOR
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => Y
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107728:97
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [AUTHOR_PHOTO] => Array
                (
                    [ID] => 108
                    [IBLOCK_ID] => 25
                    [NAME] => Автор фото
                    [ACTIVE] => Y
                    [SORT] => 410
                    [CODE] => AUTHOR_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор фото
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107728:108
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [ISSUE] => Array
                (
                    [ID] => 93
                    [IBLOCK_ID] => 25
                    [NAME] => Выпуск
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ISSUE
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => E
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => Y
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Выпуск
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 105208
                    [PROPERTY_VALUE_ID] => 107728:93
                    [DESCRIPTION] => 
                    [~VALUE] => 105208
                    [~DESCRIPTION] => 
                )

            [BLOG_POST_ID] => Array
                (
                    [ID] => 94
                    [IBLOCK_ID] => 25
                    [NAME] => ID поста блога для комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_POST_ID
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => ID поста блога для комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107728:94
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [BLOG_COMMENTS_CNT] => Array
                (
                    [ID] => 95
                    [IBLOCK_ID] => 25
                    [NAME] => Количество комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_COMMENTS_CNT
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Количество комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107728:95
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [MORE_PHOTO] => Array
                (
                    [ID] => 98
                    [IBLOCK_ID] => 25
                    [NAME] => Дополнительные фотографии
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => MORE_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => Y
                    [XML_ID] => 
                    [FILE_TYPE] => jpg, gif, bmp, png, jpeg
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Дополнительные фотографии
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [PUBLIC_ACCESS] => Array
                (
                    [ID] => 110
                    [IBLOCK_ID] => 25
                    [NAME] => Открытый доступ
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => PUBLIC_ACCESS
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => L
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => C
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Открытый доступ
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107728:110
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                    [VALUE_ENUM_ID] => 
                )

            [ATTACHED_PDF] => Array
                (
                    [ID] => 324
                    [IBLOCK_ID] => 25
                    [NAME] => Прикрепленный PDF
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ATTACHED_PDF
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => pdf
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Прикрепленный PDF
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107728:324
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

        )

    [DISPLAY_PROPERTIES] => Array
        (
        )

    [IPROPERTY_VALUES] => Array
        (
            [SECTION_META_TITLE] => Panorama
            [SECTION_META_KEYWORDS] => panorama
            [SECTION_META_DESCRIPTION] => <B>V.Yakunin and G.Boos Signed Protocol on Further Cooperation</B><BR>
            [ELEMENT_META_TITLE] => Panorama
            [ELEMENT_META_KEYWORDS] => panorama
            [ELEMENT_META_DESCRIPTION] => <B>V.Yakunin and G.Boos Signed Protocol on Further Cooperation</B><BR>
            [SECTION_PICTURE_FILE_ALT] => Panorama
            [SECTION_PICTURE_FILE_TITLE] => Panorama
            [SECTION_DETAIL_PICTURE_FILE_ALT] => Panorama
            [SECTION_DETAIL_PICTURE_FILE_TITLE] => Panorama
            [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => Panorama
            [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => Panorama
            [ELEMENT_DETAIL_PICTURE_FILE_ALT] => Panorama
            [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => Panorama
        )

)

									Array
(
    [ID] => 107728
    [~ID] => 107728
    [IBLOCK_ID] => 25
    [~IBLOCK_ID] => 25
    [IBLOCK_SECTION_ID] => 1443
    [~IBLOCK_SECTION_ID] => 1443
    [NAME] => Panorama
    [~NAME] => Panorama
    [ACTIVE_FROM_X] => 
    [~ACTIVE_FROM_X] => 
    [ACTIVE_FROM] => 
    [~ACTIVE_FROM] => 
    [TIMESTAMP_X] => 24.10.2016 17:13:43
    [~TIMESTAMP_X] => 24.10.2016 17:13:43
    [DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2776/
    [~DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2776/
    [LIST_PAGE_URL] => /info/index.php?ID=25
    [~LIST_PAGE_URL] => /info/index.php?ID=25
    [DETAIL_TEXT] => On June 22, Vladimir Yakunin, OAO RZD President and Georgy Boos, the head of the Kaliningrad region signed Protocol «On further development of the cooperation between the Kaliningrad region administration and OAO RZD» during the meeting in Kaliningrad.

The general plan of Kaliningrad transport junction, including the new railway branch passing over Kaliningrad and the construction of a sorting yard out of the city, will be developed in the framework of Federal programmes «RF transport system modernization» and «Kaliningrad region development». The sorting yard in Baltiysk will be necessary. The sides agreed that, to improve the freight transportation, it is necessary to reduce the railway crossings. «The railway infrastructure is the key issue for the development of the region», G.Boos said. It must be invested in not only by OAO RZD, but also from the Federal Budget.



Kazakhstan Increases Cost of Railway Freight Transportation

In accordance with the relevant decree of AO NC Kazakstan Temir Zholy, Kazakhstan increased the cost of freight transportation by railway. 

In accordance with the document, tariff for freight wagons and containers use, as well as for value-added logistic services, increases. The coefficient to the acting tariff is 1.234. Meanwhile, progressed payment for wagons and containers idling is implemented. If idling continues from 31 to 45 days, the tariff increases by 30%; if it goes over 45 days, the tariff grows by 200%. The document came in force on August 1, 2006.



Russian, Baltic and Finnish Railways Signed Protocol

On June 21, 2006, a protocol on the General scheme for transport infrastructure development in the Baltic region was signed.

The document was signed by Viktor Stepov, Head of the Octyabrskaya (October) railway (affiliate of OAO RZD); Ugis Magonis, Head of GAO Latvijas Dzelzcels (Latvian Railway); Stasis Dailidka, Lietuvos Gelezinkeliai (Lithuanian railway) Director General; Riivo Sinijarv, Eesti Raudtee (Estonian Railway) Member of the Board – Deputy Executive Director, and Ilkka Seppjanen, VR Cargo CEO in the framework of the round table «Coordination of transport and IT infrastructure development in the Baltic region», held at the Saint-Petersburg Transport and Logistic Forum, organized by OAO RZD and the «RZD-Partner» business magazine. The parties discussed mechanisms of long term and short term forecasts to be developed to optimize investments, to develop and use the infrastructure more efficiently. 

The second issue of the round table discussion touched the problem of efficiency while using the infrastructure. Viktor Stepov suggested using the Logistics centre existing at the Octyabrskaya (October) railway for joint coordination of the railway transportation in the Baltic region. Experts of the Council in cooperation with GIPROTransTEI and the Octyabrskaya railway Information and Logistics centre will possibly design the project.



Tariffs on Oil Transportation by Railway Are reduced

The RF Ministry of Transport set a discount of 50% on transit transportation of crude oil and products by railway to the ports of the Black Sea and the Sea of Azov. The correspondent decree was registered in the RF Ministry of Justice at the end of July 2006. The discounts are in force till December 31, 2006. 

The discount is used for transportation of oil destined for the port of Feodosiya (Ukraine) via the Samur and Uspenskaya stations; oil and products destined for the port of Makhachkala via the Samur station; oil and products from Turkmenistan to Ukrainian ports via the port of Makhachkala, the Uspenskaya station and the ports of the Black Sea. Besides, the RF Ministry of Transport implemented a discount of 48% on transit transportation of mazut from Kazakhstan via Aksarayskaya-2 station by railway in case of direct railway-ferry communication via the ports of Kavkaz (Russia) and the Crimea (Ukraine). The discount is in force till November 30, 2006.



OAO RZD Invests into Transportation Development

OAO Russian Railways plans to invest in transportation development at least RUR 1.137 billion in 2006-2010 and RUR 1.413 billion in 2011-2015. 

This was announced by the company’s President Vladimir Yakunin at the briefing devoted to the results of the meeting of OAO RZD’s Board, where the project of Strategic programme of company’s development and the General Scheme of railways Development till 2010 were discussed. The total volume of OAO RZD’s investment into transportation development amounts to RUR 200 billion in 2006.  OAO RZD President said that the Board discussed the impossibility of using mechanisms of joint investment nowadays. «The order has not yet been worked out. There is no normative or legislative basis, which would enable private companies to invest into railway infrastructure», he stressed. If the project goes ahead, it will be a powerful stimulus for the state economy’s development: transportation will become more available, besides, its quality will improve, and there will be non-discriminating access to infrastructure. Moreover, the Strategic Programme will ensure a transparent formation and easy forecasting of railway tariffs and their relative reduction for the ultimate consumer.



Concept of Logistic Company Approved 

«The task is to increase road vehicles transportation by two and a half times by 2015», Vladimir Yakunin, OAO RZD President said at the OAO RZD Board of Directors meeting held in July.

The Board of Directors of OAO RZD approved the concept of launching a new logistic company specializing in transportation of road vehicles. The Board of Directors also decided that the RF Agency of Federal Property Management would assess the authorized capital of the new company. Afterwards a secret vote will be held to make the final decision.

OAO RZD will launch the company in cooperation with the Transgroup company. OAO RZD will own 51% shareholding. OAO RZD will invest 4,500 specialized platforms, including 1,583 covered platforms (each of them can transport 10 vehicles on average), for the total sum of RUR 1.8 billion into the company’s authorized capital. The rest of the company’s park will consist of open platforms, for modernization of which Transgroup’s investments will be needed.

In 2007, the company’s forecasted revenue may reach RUR 5.6 billion; net profit – RUR 700 million. If in the next five years the company manages to attract investments for the total sum of RUR 10.5 billion, thus increasing their park of specialized platforms to 4,500 units, the company’s turnover and net profit may amount to RUR 18 billion and RUR 2.8 billion respectively by 2016.

In the coming five years, 1500 platforms are to be modernized to prolong their life-time by five years. 3,000 covered auto carriers are to be purchased. RUR 200 million will be invested into the construction of new terminals and equipment for them in 2007-2008. The first terminal will be constructed at the Mikhnevo station. Similar terminals will be built in Ekaterinburg, Novosibirsk and the port of Zarubino (Far East).

Vice-President of OAO RZD Salman Babayev said that Transgroup has been using leased from OAO RZD specialized rolling stock since the beginning of 2006. Experts of OAO RZD reported that in six months of the current year vehicles transportation by railway grew by 17% year-on-year.

«Nowadays, the share of vehicles transportation by railway is 10%. When the joint-stock company is launched, we plan to increase the share to 25% by 2012», OAO RZD President Vladimir Yakunin said.



Project of AO Skorostnye Magistrali Approved

In July, the Board of Directors of OAO RZD approved the project of launching the joint-stock company Skorostnye Magistrali. 

The joint-stock company Skorostnye Magistrali will be launched by OAO RZD and ZAO Transmashholding. The share of OAO RZD will be 75%+1 share, while the one of Transmashholding will be 25%-1 share. The company’s authorized capital will be RUR 1 million. The joint-stock company Skorostnye Magistrali will be OAO RZD’s instrument to carry out the investment project of a high-speed railway line Moscow-Saint Petersburg.

«The launched company will function as the project office», said OAO RZD President Vladimir Yakunin. 



TransCreditBank Attracts Credit

TransCreditBank attracted a syndicated credit of USD 100 million. The credit agreement was signed on July 26, 2006.

The credit term is two years; it can then be prolonged for one more year. The credit rate is LIBOR+70 basic points annually.

Eleven foreign banks took part in the syndicate. Organizers and bookrunners are ABN Amro Bank N.V. and Barclays Capital. Bank Austria Creditanstalt AG acts as an organizer and financial agent. Other participants of the syndicate are ICICI Bank Limited, Depfa Investment Bank Limited, Dresdner Bank AG, Raiffeisen Zentalbank, Standard Bank PLC, MKB Bank Nyrt and The Bank of New York.

The attracted means will be used to finance foreign trade projects of TransCreditBank’s clients and partial re-financing of existing foreign loans.



Baltic Dialogue: Equal Conditions for All Companies

On July 21, a protocol of amendment to the Agreement on cooperation in the railway transport sector between the Russian Government and the Estonian Government was signed.

The document was signed by Igor Levitin, the RF Transport Minister, and Edgar Savisaar, Minister of Transport and Communications of Estonia, The agreement defines the basic rules of exploitation of the railway infrastructure in both states. «The peculiar feature of the rules is that equal access to the infrastructure will be set for both private and state companies», Igor Levitin said. 

Edgar Savisaar mentioned that the agreement is to improve the cooperation between the two neighbouring states. 



OAO RZD Counts on Investment Fund

OAO RZD believes that the Investment Fund will help to carry out the largest projects of railway infrastructure development. 

Partucalarly the construction of the tunnel on Komsomolsk-on-Amur – Sovetskaya Gavan line. And the electrification of Karymskaya-Zabaikalsk and Trubnaya-Aksarayskaya lines are mentioned. «I believe that the projects will be quite competitive to get the state support from the investment Fund», said First Vice President of OAO RZD Vadim Morozov. 

Besides, he noticed that the company expects the state to support the construction of a railway line for freight transportation in the framework of the project of high speed passenger communication on Saint-Petersburg-Helsinki line. 



Import of Second-Hand Trucks Restricted

The Prime Minister of the Russian Federation Mikhail Fradkov signed a Decree on change of customs dues on import in Russia for tractors and trucks the age of which exceeds five years. 

Until the Decree was adopted, customs dues of EUR 2.2 for each cub sm of the working volume of engine were applied to truck tractors and trucks with the mass of over five tons and the age of more than 7 years. 

The Decree is aimed at stimulating foreign companies to launch their own assembling to produce trucks. 

The new dues are in force for 9 months. However, experts believe that after the period, another decree, making the dues permanent, will be adopted.

    [~DETAIL_TEXT] => On June 22, Vladimir Yakunin, OAO RZD President and Georgy Boos, the head of the Kaliningrad region signed Protocol «On further development of the cooperation between the Kaliningrad region administration and OAO RZD» during the meeting in Kaliningrad.

The general plan of Kaliningrad transport junction, including the new railway branch passing over Kaliningrad and the construction of a sorting yard out of the city, will be developed in the framework of Federal programmes «RF transport system modernization» and «Kaliningrad region development». The sorting yard in Baltiysk will be necessary. The sides agreed that, to improve the freight transportation, it is necessary to reduce the railway crossings. «The railway infrastructure is the key issue for the development of the region», G.Boos said. It must be invested in not only by OAO RZD, but also from the Federal Budget.



Kazakhstan Increases Cost of Railway Freight Transportation

In accordance with the relevant decree of AO NC Kazakstan Temir Zholy, Kazakhstan increased the cost of freight transportation by railway. 

In accordance with the document, tariff for freight wagons and containers use, as well as for value-added logistic services, increases. The coefficient to the acting tariff is 1.234. Meanwhile, progressed payment for wagons and containers idling is implemented. If idling continues from 31 to 45 days, the tariff increases by 30%; if it goes over 45 days, the tariff grows by 200%. The document came in force on August 1, 2006.



Russian, Baltic and Finnish Railways Signed Protocol

On June 21, 2006, a protocol on the General scheme for transport infrastructure development in the Baltic region was signed.

The document was signed by Viktor Stepov, Head of the Octyabrskaya (October) railway (affiliate of OAO RZD); Ugis Magonis, Head of GAO Latvijas Dzelzcels (Latvian Railway); Stasis Dailidka, Lietuvos Gelezinkeliai (Lithuanian railway) Director General; Riivo Sinijarv, Eesti Raudtee (Estonian Railway) Member of the Board – Deputy Executive Director, and Ilkka Seppjanen, VR Cargo CEO in the framework of the round table «Coordination of transport and IT infrastructure development in the Baltic region», held at the Saint-Petersburg Transport and Logistic Forum, organized by OAO RZD and the «RZD-Partner» business magazine. The parties discussed mechanisms of long term and short term forecasts to be developed to optimize investments, to develop and use the infrastructure more efficiently. 

The second issue of the round table discussion touched the problem of efficiency while using the infrastructure. Viktor Stepov suggested using the Logistics centre existing at the Octyabrskaya (October) railway for joint coordination of the railway transportation in the Baltic region. Experts of the Council in cooperation with GIPROTransTEI and the Octyabrskaya railway Information and Logistics centre will possibly design the project.



Tariffs on Oil Transportation by Railway Are reduced

The RF Ministry of Transport set a discount of 50% on transit transportation of crude oil and products by railway to the ports of the Black Sea and the Sea of Azov. The correspondent decree was registered in the RF Ministry of Justice at the end of July 2006. The discounts are in force till December 31, 2006. 

The discount is used for transportation of oil destined for the port of Feodosiya (Ukraine) via the Samur and Uspenskaya stations; oil and products destined for the port of Makhachkala via the Samur station; oil and products from Turkmenistan to Ukrainian ports via the port of Makhachkala, the Uspenskaya station and the ports of the Black Sea. Besides, the RF Ministry of Transport implemented a discount of 48% on transit transportation of mazut from Kazakhstan via Aksarayskaya-2 station by railway in case of direct railway-ferry communication via the ports of Kavkaz (Russia) and the Crimea (Ukraine). The discount is in force till November 30, 2006.



OAO RZD Invests into Transportation Development

OAO Russian Railways plans to invest in transportation development at least RUR 1.137 billion in 2006-2010 and RUR 1.413 billion in 2011-2015. 

This was announced by the company’s President Vladimir Yakunin at the briefing devoted to the results of the meeting of OAO RZD’s Board, where the project of Strategic programme of company’s development and the General Scheme of railways Development till 2010 were discussed. The total volume of OAO RZD’s investment into transportation development amounts to RUR 200 billion in 2006.  OAO RZD President said that the Board discussed the impossibility of using mechanisms of joint investment nowadays. «The order has not yet been worked out. There is no normative or legislative basis, which would enable private companies to invest into railway infrastructure», he stressed. If the project goes ahead, it will be a powerful stimulus for the state economy’s development: transportation will become more available, besides, its quality will improve, and there will be non-discriminating access to infrastructure. Moreover, the Strategic Programme will ensure a transparent formation and easy forecasting of railway tariffs and their relative reduction for the ultimate consumer.



Concept of Logistic Company Approved 

«The task is to increase road vehicles transportation by two and a half times by 2015», Vladimir Yakunin, OAO RZD President said at the OAO RZD Board of Directors meeting held in July.

The Board of Directors of OAO RZD approved the concept of launching a new logistic company specializing in transportation of road vehicles. The Board of Directors also decided that the RF Agency of Federal Property Management would assess the authorized capital of the new company. Afterwards a secret vote will be held to make the final decision.

OAO RZD will launch the company in cooperation with the Transgroup company. OAO RZD will own 51% shareholding. OAO RZD will invest 4,500 specialized platforms, including 1,583 covered platforms (each of them can transport 10 vehicles on average), for the total sum of RUR 1.8 billion into the company’s authorized capital. The rest of the company’s park will consist of open platforms, for modernization of which Transgroup’s investments will be needed.

In 2007, the company’s forecasted revenue may reach RUR 5.6 billion; net profit – RUR 700 million. If in the next five years the company manages to attract investments for the total sum of RUR 10.5 billion, thus increasing their park of specialized platforms to 4,500 units, the company’s turnover and net profit may amount to RUR 18 billion and RUR 2.8 billion respectively by 2016.

In the coming five years, 1500 platforms are to be modernized to prolong their life-time by five years. 3,000 covered auto carriers are to be purchased. RUR 200 million will be invested into the construction of new terminals and equipment for them in 2007-2008. The first terminal will be constructed at the Mikhnevo station. Similar terminals will be built in Ekaterinburg, Novosibirsk and the port of Zarubino (Far East).

Vice-President of OAO RZD Salman Babayev said that Transgroup has been using leased from OAO RZD specialized rolling stock since the beginning of 2006. Experts of OAO RZD reported that in six months of the current year vehicles transportation by railway grew by 17% year-on-year.

«Nowadays, the share of vehicles transportation by railway is 10%. When the joint-stock company is launched, we plan to increase the share to 25% by 2012», OAO RZD President Vladimir Yakunin said.



Project of AO Skorostnye Magistrali Approved

In July, the Board of Directors of OAO RZD approved the project of launching the joint-stock company Skorostnye Magistrali. 

The joint-stock company Skorostnye Magistrali will be launched by OAO RZD and ZAO Transmashholding. The share of OAO RZD will be 75%+1 share, while the one of Transmashholding will be 25%-1 share. The company’s authorized capital will be RUR 1 million. The joint-stock company Skorostnye Magistrali will be OAO RZD’s instrument to carry out the investment project of a high-speed railway line Moscow-Saint Petersburg.

«The launched company will function as the project office», said OAO RZD President Vladimir Yakunin. 



TransCreditBank Attracts Credit

TransCreditBank attracted a syndicated credit of USD 100 million. The credit agreement was signed on July 26, 2006.

The credit term is two years; it can then be prolonged for one more year. The credit rate is LIBOR+70 basic points annually.

Eleven foreign banks took part in the syndicate. Organizers and bookrunners are ABN Amro Bank N.V. and Barclays Capital. Bank Austria Creditanstalt AG acts as an organizer and financial agent. Other participants of the syndicate are ICICI Bank Limited, Depfa Investment Bank Limited, Dresdner Bank AG, Raiffeisen Zentalbank, Standard Bank PLC, MKB Bank Nyrt and The Bank of New York.

The attracted means will be used to finance foreign trade projects of TransCreditBank’s clients and partial re-financing of existing foreign loans.



Baltic Dialogue: Equal Conditions for All Companies

On July 21, a protocol of amendment to the Agreement on cooperation in the railway transport sector between the Russian Government and the Estonian Government was signed.

The document was signed by Igor Levitin, the RF Transport Minister, and Edgar Savisaar, Minister of Transport and Communications of Estonia, The agreement defines the basic rules of exploitation of the railway infrastructure in both states. «The peculiar feature of the rules is that equal access to the infrastructure will be set for both private and state companies», Igor Levitin said. 

Edgar Savisaar mentioned that the agreement is to improve the cooperation between the two neighbouring states. 



OAO RZD Counts on Investment Fund

OAO RZD believes that the Investment Fund will help to carry out the largest projects of railway infrastructure development. 

Partucalarly the construction of the tunnel on Komsomolsk-on-Amur – Sovetskaya Gavan line. And the electrification of Karymskaya-Zabaikalsk and Trubnaya-Aksarayskaya lines are mentioned. «I believe that the projects will be quite competitive to get the state support from the investment Fund», said First Vice President of OAO RZD Vadim Morozov. 

Besides, he noticed that the company expects the state to support the construction of a railway line for freight transportation in the framework of the project of high speed passenger communication on Saint-Petersburg-Helsinki line. 



Import of Second-Hand Trucks Restricted

The Prime Minister of the Russian Federation Mikhail Fradkov signed a Decree on change of customs dues on import in Russia for tractors and trucks the age of which exceeds five years. 

Until the Decree was adopted, customs dues of EUR 2.2 for each cub sm of the working volume of engine were applied to truck tractors and trucks with the mass of over five tons and the age of more than 7 years. 

The Decree is aimed at stimulating foreign companies to launch their own assembling to produce trucks. 

The new dues are in force for 9 months. However, experts believe that after the period, another decree, making the dues permanent, will be adopted.

    [DETAIL_TEXT_TYPE] => html
    [~DETAIL_TEXT_TYPE] => html
    [PREVIEW_TEXT] => V.Yakunin and G.Boos Signed Protocol on Further Cooperation

    [~PREVIEW_TEXT] => V.Yakunin and G.Boos Signed Protocol on Further Cooperation

    [PREVIEW_TEXT_TYPE] => html
    [~PREVIEW_TEXT_TYPE] => html
    [PREVIEW_PICTURE] => 
    [~PREVIEW_PICTURE] => 
    [LANG_DIR] => /
    [~LANG_DIR] => /
    [CODE] => 2776
    [~CODE] => 2776
    [EXTERNAL_ID] => 2776
    [~EXTERNAL_ID] => 2776
    [IBLOCK_TYPE_ID] => info
    [~IBLOCK_TYPE_ID] => info
    [IBLOCK_CODE] => articles_magazines
    [~IBLOCK_CODE] => articles_magazines
    [IBLOCK_EXTERNAL_ID] => 
    [~IBLOCK_EXTERNAL_ID] => 
    [LID] => s1
    [~LID] => s1
    [EDIT_LINK] => 
    [DELETE_LINK] => 
    [DISPLAY_ACTIVE_FROM] => 
    [FIELDS] => Array
        (
        )

    [PROPERTIES] => Array
        (
            [AUTHOR] => Array
                (
                    [ID] => 97
                    [IBLOCK_ID] => 25
                    [NAME] => Автор
                    [ACTIVE] => Y
                    [SORT] => 400
                    [CODE] => AUTHOR
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => Y
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107728:97
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [AUTHOR_PHOTO] => Array
                (
                    [ID] => 108
                    [IBLOCK_ID] => 25
                    [NAME] => Автор фото
                    [ACTIVE] => Y
                    [SORT] => 410
                    [CODE] => AUTHOR_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор фото
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107728:108
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [ISSUE] => Array
                (
                    [ID] => 93
                    [IBLOCK_ID] => 25
                    [NAME] => Выпуск
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ISSUE
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => E
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => Y
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Выпуск
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 105208
                    [PROPERTY_VALUE_ID] => 107728:93
                    [DESCRIPTION] => 
                    [~VALUE] => 105208
                    [~DESCRIPTION] => 
                )

            [BLOG_POST_ID] => Array
                (
                    [ID] => 94
                    [IBLOCK_ID] => 25
                    [NAME] => ID поста блога для комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_POST_ID
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => ID поста блога для комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107728:94
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [BLOG_COMMENTS_CNT] => Array
                (
                    [ID] => 95
                    [IBLOCK_ID] => 25
                    [NAME] => Количество комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_COMMENTS_CNT
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Количество комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107728:95
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [MORE_PHOTO] => Array
                (
                    [ID] => 98
                    [IBLOCK_ID] => 25
                    [NAME] => Дополнительные фотографии
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => MORE_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => Y
                    [XML_ID] => 
                    [FILE_TYPE] => jpg, gif, bmp, png, jpeg
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Дополнительные фотографии
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [PUBLIC_ACCESS] => Array
                (
                    [ID] => 110
                    [IBLOCK_ID] => 25
                    [NAME] => Открытый доступ
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => PUBLIC_ACCESS
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => L
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => C
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Открытый доступ
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107728:110
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                    [VALUE_ENUM_ID] => 
                )

            [ATTACHED_PDF] => Array
                (
                    [ID] => 324
                    [IBLOCK_ID] => 25
                    [NAME] => Прикрепленный PDF
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ATTACHED_PDF
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => pdf
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Прикрепленный PDF
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107728:324
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

        )

    [DISPLAY_PROPERTIES] => Array
        (
        )

    [IPROPERTY_VALUES] => Array
        (
            [SECTION_META_TITLE] => Panorama
            [SECTION_META_KEYWORDS] => panorama
            [SECTION_META_DESCRIPTION] => <B>V.Yakunin and G.Boos Signed Protocol on Further Cooperation</B><BR>
            [ELEMENT_META_TITLE] => Panorama
            [ELEMENT_META_KEYWORDS] => panorama
            [ELEMENT_META_DESCRIPTION] => <B>V.Yakunin and G.Boos Signed Protocol on Further Cooperation</B><BR>
            [SECTION_PICTURE_FILE_ALT] => Panorama
            [SECTION_PICTURE_FILE_TITLE] => Panorama
            [SECTION_DETAIL_PICTURE_FILE_ALT] => Panorama
            [SECTION_DETAIL_PICTURE_FILE_TITLE] => Panorama
            [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => Panorama
            [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => Panorama
            [ELEMENT_DETAIL_PICTURE_FILE_ALT] => Panorama
            [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => Panorama
        )

)
								

Array
(
    [ID] => 107727
    [~ID] => 107727
    [IBLOCK_ID] => 25
    [~IBLOCK_ID] => 25
    [IBLOCK_SECTION_ID] => 1443
    [~IBLOCK_SECTION_ID] => 1443
    [NAME] => YTS: to Increase Company’s Liquidity
    [~NAME] => YTS: to Increase Company’s Liquidity
    [ACTIVE_FROM_X] => 
    [~ACTIVE_FROM_X] => 
    [ACTIVE_FROM] => 
    [~ACTIVE_FROM] => 
    [TIMESTAMP_X] => 24.10.2016 17:13:43
    [~TIMESTAMP_X] => 24.10.2016 17:13:43
    [DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2775/
    [~DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2775/
    [LIST_PAGE_URL] => /info/index.php?ID=25
    [~LIST_PAGE_URL] => /info/index.php?ID=25
    [DETAIL_TEXT] => In 2004 OAO RZD and the oil company YUKOS concluded an Agreement on a guaranteed increase of the annual volume of oil bulk transported to China. In accordance with the Agreement, YUKOS guaranteed the dispatch of 6.4 million tons of oil to China in 2004, 8.5 million tons in 2005, and 15 million tons in 2006. In its turn, OAO Russian Railways approved the plan of reconstruction of the sector and border stations to increase the carrying capacity. However, the Agreement became invalid because of the well-known events in the history of the largest and most dynamical Russian company. ZAO YUKOS-Transservice (YTS) Director General Alexey Grom answers the questions of «The RZD-Partner International».



 – Mr.Grom, could you comment on the current situation with oil bulk transportation to China provided by YTS?

– The share of oil transportation to China is about 20% (500-600 thousand tons monthly) of the total volume of transportation provided by YUKOS-Transservice. At the same time, the volume of crude oil of  YUKOS and destined for China has reduced since the beginning of the year, while the dynamics of our company’s work is positive. At the beginning of 2006 we planned to transport no less than 200-250 thousand tons of crude oil for YUKOS via the Naushki border crossing monthly; however, now the figure does not exceed 100 thousand tons, and in August the application was only for 50 thousand tons. 

At the same time, I hope that the production of other oil companies will compensate for the decreasing volumes of YUKOS in the near future. We have already got several inquiries for the terms of transportation services. Besides, OAO Rosneft, the major exporter of oil to China, increases the delivery volume. I believe, in a few months, the company’s application for transportation from the Sukhovskaya station will grow to 500 thousand tons or even more. We have reserves. To transport oil to China we can give up to 4.5 thousand tank-wagons equipped with a steam-heating system, adopted for year-round crude oil transportation to the country. This amount of wagons is enough to carry 700,000-750,000 tons monthly. I believe, the whole park will be required on this route soon. In our turn, we will continue to offer best services and terms of oil transportation to China to companies-exporters. So, we are optimistic about the future. 

– However, the assumption is that when the East Siberia – Pacific oil pipeline with a branch to China is put into operation, the volume of crude transportation by railway will significantly reduce…

– I believe that there will appear plenty of alternative projects of oil bulk transportation till the project of the East Siberia – Pacific oil pipeline is carried out. Perhaps, we will even have to choose, on which route we will use rolling stock. Taking into account the dynamics of development of Siberia and the Far East regions as well as of the Asian Pacific region countries, I am sure that there will be a large demand for railway transportation there. As far as I know, the issue of organization of crude oil transportation by railway to another state of the region is being actively discussed nowadays. And the volume will be almost the same as delivered to China. So, there are reserves. And ZAO YTS is going to take an active part in carrying these projects out.

– Could you evaluate the work of YTS company since the beginning of the year?

– The results of company’s work exceeded the figures planned. Taking into account the fact that the year 2005 was very effective (in fact, it was the best in YTS’s history), we approved the plan for this year envisaging the same positive dynamics. However, in practice it turned out that we are exceeding the plan from both – the production and financial standpoints. In particular, in H1 of 2006 we increased transportation volume by 9.6% (or +1.5 million tons) year-on-year. Such growth became possible due to the increase of production volume of refineries incorporated into the YUKOS company. The growth of production led to increase of transportation. However, the directions of transportation have remained the same. Besides, I would like to note that YTS (as opposed to most Russian operators of rolling stock) has always been oriented at the domestic market. I believe that nowadays we are on the first place in Russia according to the share of commercial transportation inside the country. It is obvious that operators are eager to occupy a sector in some stable and profitable export direction… However, the growth of the Russian consumer market is more important for us today from the standpoint of the new transportation directions development. In the portfolio of our orders there are much more single deliveries in the RF than export transportation directions such as oil to China. 

The second important reason for the high results YTS achieved is the reduction of river navigation volumes in the Samara region this year. The arrest of the largest transporter – Volgotanker’s – accounts almost stopped its activities. As a result, if earlier we registered a 500-thousand-ton-decrease for the group of YUKOS refineries in Samara monthly (during navigation period), this year we load over one million tons monthly.

– Has YUKOS-Transservice created any new logistic solutions this year?

– If it is possible to say so, we have entered а new market – liquefied natural gas (LNG) transportation in tank-containers. In cooperation with our partner Spetstransgarant, we organized trial transportation from Samara to consumers in July. The consumers at gas filling stations valued the economy and technology of the transportation. Our clients liked the technology so much, that nowadays they ask to provide 100% of transportation this way and to start regular operation dispatches in tank-containers. We will surely continue to develop this activity.

– Mr. Grom, what will the future of YUKOS-Transservice be after the announced procedure of YUKOS bankruptcy?

– ZAO YUKOS-Transservice is an independent company, and YUKOS is one of the company’s shareholders. At the same time, it is necessary to understand that the aim of any bankruptcy procedure is to sell the assets of the bankrupt as profitable as it is possible to pay off the debts. That is why we are trying to work most efficiently to increase our capitalization. I would like to stress that the misfortune of our mother company made us mobilize and work more and more effectively to prove that the assets of YUKOS are liquid and very interesting companies. In any situation it is necessary to look for new opportunities to realize one’s potential, and YTS is searching for such opportunities keeping away from politics, doing its best to concentrate its efforts to work efficiently.



Interviewed by TATYANA  TOKAREVA
    [~DETAIL_TEXT] => In 2004 OAO RZD and the oil company YUKOS concluded an Agreement on a guaranteed increase of the annual volume of oil bulk transported to China. In accordance with the Agreement, YUKOS guaranteed the dispatch of 6.4 million tons of oil to China in 2004, 8.5 million tons in 2005, and 15 million tons in 2006. In its turn, OAO Russian Railways approved the plan of reconstruction of the sector and border stations to increase the carrying capacity. However, the Agreement became invalid because of the well-known events in the history of the largest and most dynamical Russian company. ZAO YUKOS-Transservice (YTS) Director General Alexey Grom answers the questions of «The RZD-Partner International».



 – Mr.Grom, could you comment on the current situation with oil bulk transportation to China provided by YTS?

– The share of oil transportation to China is about 20% (500-600 thousand tons monthly) of the total volume of transportation provided by YUKOS-Transservice. At the same time, the volume of crude oil of  YUKOS and destined for China has reduced since the beginning of the year, while the dynamics of our company’s work is positive. At the beginning of 2006 we planned to transport no less than 200-250 thousand tons of crude oil for YUKOS via the Naushki border crossing monthly; however, now the figure does not exceed 100 thousand tons, and in August the application was only for 50 thousand tons. 

At the same time, I hope that the production of other oil companies will compensate for the decreasing volumes of YUKOS in the near future. We have already got several inquiries for the terms of transportation services. Besides, OAO Rosneft, the major exporter of oil to China, increases the delivery volume. I believe, in a few months, the company’s application for transportation from the Sukhovskaya station will grow to 500 thousand tons or even more. We have reserves. To transport oil to China we can give up to 4.5 thousand tank-wagons equipped with a steam-heating system, adopted for year-round crude oil transportation to the country. This amount of wagons is enough to carry 700,000-750,000 tons monthly. I believe, the whole park will be required on this route soon. In our turn, we will continue to offer best services and terms of oil transportation to China to companies-exporters. So, we are optimistic about the future. 

– However, the assumption is that when the East Siberia – Pacific oil pipeline with a branch to China is put into operation, the volume of crude transportation by railway will significantly reduce…

– I believe that there will appear plenty of alternative projects of oil bulk transportation till the project of the East Siberia – Pacific oil pipeline is carried out. Perhaps, we will even have to choose, on which route we will use rolling stock. Taking into account the dynamics of development of Siberia and the Far East regions as well as of the Asian Pacific region countries, I am sure that there will be a large demand for railway transportation there. As far as I know, the issue of organization of crude oil transportation by railway to another state of the region is being actively discussed nowadays. And the volume will be almost the same as delivered to China. So, there are reserves. And ZAO YTS is going to take an active part in carrying these projects out.

– Could you evaluate the work of YTS company since the beginning of the year?

– The results of company’s work exceeded the figures planned. Taking into account the fact that the year 2005 was very effective (in fact, it was the best in YTS’s history), we approved the plan for this year envisaging the same positive dynamics. However, in practice it turned out that we are exceeding the plan from both – the production and financial standpoints. In particular, in H1 of 2006 we increased transportation volume by 9.6% (or +1.5 million tons) year-on-year. Such growth became possible due to the increase of production volume of refineries incorporated into the YUKOS company. The growth of production led to increase of transportation. However, the directions of transportation have remained the same. Besides, I would like to note that YTS (as opposed to most Russian operators of rolling stock) has always been oriented at the domestic market. I believe that nowadays we are on the first place in Russia according to the share of commercial transportation inside the country. It is obvious that operators are eager to occupy a sector in some stable and profitable export direction… However, the growth of the Russian consumer market is more important for us today from the standpoint of the new transportation directions development. In the portfolio of our orders there are much more single deliveries in the RF than export transportation directions such as oil to China. 

The second important reason for the high results YTS achieved is the reduction of river navigation volumes in the Samara region this year. The arrest of the largest transporter – Volgotanker’s – accounts almost stopped its activities. As a result, if earlier we registered a 500-thousand-ton-decrease for the group of YUKOS refineries in Samara monthly (during navigation period), this year we load over one million tons monthly.

– Has YUKOS-Transservice created any new logistic solutions this year?

– If it is possible to say so, we have entered а new market – liquefied natural gas (LNG) transportation in tank-containers. In cooperation with our partner Spetstransgarant, we organized trial transportation from Samara to consumers in July. The consumers at gas filling stations valued the economy and technology of the transportation. Our clients liked the technology so much, that nowadays they ask to provide 100% of transportation this way and to start regular operation dispatches in tank-containers. We will surely continue to develop this activity.

– Mr. Grom, what will the future of YUKOS-Transservice be after the announced procedure of YUKOS bankruptcy?

– ZAO YUKOS-Transservice is an independent company, and YUKOS is one of the company’s shareholders. At the same time, it is necessary to understand that the aim of any bankruptcy procedure is to sell the assets of the bankrupt as profitable as it is possible to pay off the debts. That is why we are trying to work most efficiently to increase our capitalization. I would like to stress that the misfortune of our mother company made us mobilize and work more and more effectively to prove that the assets of YUKOS are liquid and very interesting companies. In any situation it is necessary to look for new opportunities to realize one’s potential, and YTS is searching for such opportunities keeping away from politics, doing its best to concentrate its efforts to work efficiently.



Interviewed by TATYANA  TOKAREVA
    [DETAIL_TEXT_TYPE] => html
    [~DETAIL_TEXT_TYPE] => html
    [PREVIEW_TEXT] => 
    [~PREVIEW_TEXT] => 
    [PREVIEW_TEXT_TYPE] => html
    [~PREVIEW_TEXT_TYPE] => html
    [PREVIEW_PICTURE] => 
    [~PREVIEW_PICTURE] => 
    [LANG_DIR] => /
    [~LANG_DIR] => /
    [CODE] => 2775
    [~CODE] => 2775
    [EXTERNAL_ID] => 2775
    [~EXTERNAL_ID] => 2775
    [IBLOCK_TYPE_ID] => info
    [~IBLOCK_TYPE_ID] => info
    [IBLOCK_CODE] => articles_magazines
    [~IBLOCK_CODE] => articles_magazines
    [IBLOCK_EXTERNAL_ID] => 
    [~IBLOCK_EXTERNAL_ID] => 
    [LID] => s1
    [~LID] => s1
    [EDIT_LINK] => 
    [DELETE_LINK] => 
    [DISPLAY_ACTIVE_FROM] => 
    [FIELDS] => Array
        (
        )

    [PROPERTIES] => Array
        (
            [AUTHOR] => Array
                (
                    [ID] => 97
                    [IBLOCK_ID] => 25
                    [NAME] => Автор
                    [ACTIVE] => Y
                    [SORT] => 400
                    [CODE] => AUTHOR
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => Y
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107727:97
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [AUTHOR_PHOTO] => Array
                (
                    [ID] => 108
                    [IBLOCK_ID] => 25
                    [NAME] => Автор фото
                    [ACTIVE] => Y
                    [SORT] => 410
                    [CODE] => AUTHOR_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор фото
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107727:108
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [ISSUE] => Array
                (
                    [ID] => 93
                    [IBLOCK_ID] => 25
                    [NAME] => Выпуск
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ISSUE
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => E
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => Y
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Выпуск
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 105208
                    [PROPERTY_VALUE_ID] => 107727:93
                    [DESCRIPTION] => 
                    [~VALUE] => 105208
                    [~DESCRIPTION] => 
                )

            [BLOG_POST_ID] => Array
                (
                    [ID] => 94
                    [IBLOCK_ID] => 25
                    [NAME] => ID поста блога для комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_POST_ID
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => ID поста блога для комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107727:94
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [BLOG_COMMENTS_CNT] => Array
                (
                    [ID] => 95
                    [IBLOCK_ID] => 25
                    [NAME] => Количество комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_COMMENTS_CNT
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Количество комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107727:95
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [MORE_PHOTO] => Array
                (
                    [ID] => 98
                    [IBLOCK_ID] => 25
                    [NAME] => Дополнительные фотографии
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => MORE_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => Y
                    [XML_ID] => 
                    [FILE_TYPE] => jpg, gif, bmp, png, jpeg
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Дополнительные фотографии
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [PUBLIC_ACCESS] => Array
                (
                    [ID] => 110
                    [IBLOCK_ID] => 25
                    [NAME] => Открытый доступ
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => PUBLIC_ACCESS
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => L
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => C
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Открытый доступ
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107727:110
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                    [VALUE_ENUM_ID] => 
                )

            [ATTACHED_PDF] => Array
                (
                    [ID] => 324
                    [IBLOCK_ID] => 25
                    [NAME] => Прикрепленный PDF
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ATTACHED_PDF
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => pdf
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Прикрепленный PDF
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107727:324
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

        )

    [DISPLAY_PROPERTIES] => Array
        (
        )

    [IPROPERTY_VALUES] => Array
        (
            [SECTION_META_TITLE] => YTS: to Increase Company’s Liquidity
            [SECTION_META_KEYWORDS] => yts: to increase company’s liquidity
            [SECTION_META_DESCRIPTION] => <TABLE cellSpacing=0 cellPadding=2 width="150" height="150" border=0 align="left"><TR><TD><IMG border=0 src="/ufiles/image/rus/partner/2006/03/5.gif"></TD></TR></TABLE>
            [ELEMENT_META_TITLE] => YTS: to Increase Company’s Liquidity
            [ELEMENT_META_KEYWORDS] => yts: to increase company’s liquidity
            [ELEMENT_META_DESCRIPTION] => <TABLE cellSpacing=0 cellPadding=2 width="150" height="150" border=0 align="left"><TR><TD><IMG border=0 src="/ufiles/image/rus/partner/2006/03/5.gif"></TD></TR></TABLE>
            [SECTION_PICTURE_FILE_ALT] => YTS: to Increase Company’s Liquidity
            [SECTION_PICTURE_FILE_TITLE] => YTS: to Increase Company’s Liquidity
            [SECTION_DETAIL_PICTURE_FILE_ALT] => YTS: to Increase Company’s Liquidity
            [SECTION_DETAIL_PICTURE_FILE_TITLE] => YTS: to Increase Company’s Liquidity
            [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => YTS: to Increase Company’s Liquidity
            [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => YTS: to Increase Company’s Liquidity
            [ELEMENT_DETAIL_PICTURE_FILE_ALT] => YTS: to Increase Company’s Liquidity
            [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => YTS: to Increase Company’s Liquidity
        )

)

									Array
(
    [ID] => 107727
    [~ID] => 107727
    [IBLOCK_ID] => 25
    [~IBLOCK_ID] => 25
    [IBLOCK_SECTION_ID] => 1443
    [~IBLOCK_SECTION_ID] => 1443
    [NAME] => YTS: to Increase Company’s Liquidity
    [~NAME] => YTS: to Increase Company’s Liquidity
    [ACTIVE_FROM_X] => 
    [~ACTIVE_FROM_X] => 
    [ACTIVE_FROM] => 
    [~ACTIVE_FROM] => 
    [TIMESTAMP_X] => 24.10.2016 17:13:43
    [~TIMESTAMP_X] => 24.10.2016 17:13:43
    [DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2775/
    [~DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2775/
    [LIST_PAGE_URL] => /info/index.php?ID=25
    [~LIST_PAGE_URL] => /info/index.php?ID=25
    [DETAIL_TEXT] => In 2004 OAO RZD and the oil company YUKOS concluded an Agreement on a guaranteed increase of the annual volume of oil bulk transported to China. In accordance with the Agreement, YUKOS guaranteed the dispatch of 6.4 million tons of oil to China in 2004, 8.5 million tons in 2005, and 15 million tons in 2006. In its turn, OAO Russian Railways approved the plan of reconstruction of the sector and border stations to increase the carrying capacity. However, the Agreement became invalid because of the well-known events in the history of the largest and most dynamical Russian company. ZAO YUKOS-Transservice (YTS) Director General Alexey Grom answers the questions of «The RZD-Partner International».



 – Mr.Grom, could you comment on the current situation with oil bulk transportation to China provided by YTS?

– The share of oil transportation to China is about 20% (500-600 thousand tons monthly) of the total volume of transportation provided by YUKOS-Transservice. At the same time, the volume of crude oil of  YUKOS and destined for China has reduced since the beginning of the year, while the dynamics of our company’s work is positive. At the beginning of 2006 we planned to transport no less than 200-250 thousand tons of crude oil for YUKOS via the Naushki border crossing monthly; however, now the figure does not exceed 100 thousand tons, and in August the application was only for 50 thousand tons. 

At the same time, I hope that the production of other oil companies will compensate for the decreasing volumes of YUKOS in the near future. We have already got several inquiries for the terms of transportation services. Besides, OAO Rosneft, the major exporter of oil to China, increases the delivery volume. I believe, in a few months, the company’s application for transportation from the Sukhovskaya station will grow to 500 thousand tons or even more. We have reserves. To transport oil to China we can give up to 4.5 thousand tank-wagons equipped with a steam-heating system, adopted for year-round crude oil transportation to the country. This amount of wagons is enough to carry 700,000-750,000 tons monthly. I believe, the whole park will be required on this route soon. In our turn, we will continue to offer best services and terms of oil transportation to China to companies-exporters. So, we are optimistic about the future. 

– However, the assumption is that when the East Siberia – Pacific oil pipeline with a branch to China is put into operation, the volume of crude transportation by railway will significantly reduce…

– I believe that there will appear plenty of alternative projects of oil bulk transportation till the project of the East Siberia – Pacific oil pipeline is carried out. Perhaps, we will even have to choose, on which route we will use rolling stock. Taking into account the dynamics of development of Siberia and the Far East regions as well as of the Asian Pacific region countries, I am sure that there will be a large demand for railway transportation there. As far as I know, the issue of organization of crude oil transportation by railway to another state of the region is being actively discussed nowadays. And the volume will be almost the same as delivered to China. So, there are reserves. And ZAO YTS is going to take an active part in carrying these projects out.

– Could you evaluate the work of YTS company since the beginning of the year?

– The results of company’s work exceeded the figures planned. Taking into account the fact that the year 2005 was very effective (in fact, it was the best in YTS’s history), we approved the plan for this year envisaging the same positive dynamics. However, in practice it turned out that we are exceeding the plan from both – the production and financial standpoints. In particular, in H1 of 2006 we increased transportation volume by 9.6% (or +1.5 million tons) year-on-year. Such growth became possible due to the increase of production volume of refineries incorporated into the YUKOS company. The growth of production led to increase of transportation. However, the directions of transportation have remained the same. Besides, I would like to note that YTS (as opposed to most Russian operators of rolling stock) has always been oriented at the domestic market. I believe that nowadays we are on the first place in Russia according to the share of commercial transportation inside the country. It is obvious that operators are eager to occupy a sector in some stable and profitable export direction… However, the growth of the Russian consumer market is more important for us today from the standpoint of the new transportation directions development. In the portfolio of our orders there are much more single deliveries in the RF than export transportation directions such as oil to China. 

The second important reason for the high results YTS achieved is the reduction of river navigation volumes in the Samara region this year. The arrest of the largest transporter – Volgotanker’s – accounts almost stopped its activities. As a result, if earlier we registered a 500-thousand-ton-decrease for the group of YUKOS refineries in Samara monthly (during navigation period), this year we load over one million tons monthly.

– Has YUKOS-Transservice created any new logistic solutions this year?

– If it is possible to say so, we have entered а new market – liquefied natural gas (LNG) transportation in tank-containers. In cooperation with our partner Spetstransgarant, we organized trial transportation from Samara to consumers in July. The consumers at gas filling stations valued the economy and technology of the transportation. Our clients liked the technology so much, that nowadays they ask to provide 100% of transportation this way and to start regular operation dispatches in tank-containers. We will surely continue to develop this activity.

– Mr. Grom, what will the future of YUKOS-Transservice be after the announced procedure of YUKOS bankruptcy?

– ZAO YUKOS-Transservice is an independent company, and YUKOS is one of the company’s shareholders. At the same time, it is necessary to understand that the aim of any bankruptcy procedure is to sell the assets of the bankrupt as profitable as it is possible to pay off the debts. That is why we are trying to work most efficiently to increase our capitalization. I would like to stress that the misfortune of our mother company made us mobilize and work more and more effectively to prove that the assets of YUKOS are liquid and very interesting companies. In any situation it is necessary to look for new opportunities to realize one’s potential, and YTS is searching for such opportunities keeping away from politics, doing its best to concentrate its efforts to work efficiently.



Interviewed by TATYANA  TOKAREVA
    [~DETAIL_TEXT] => In 2004 OAO RZD and the oil company YUKOS concluded an Agreement on a guaranteed increase of the annual volume of oil bulk transported to China. In accordance with the Agreement, YUKOS guaranteed the dispatch of 6.4 million tons of oil to China in 2004, 8.5 million tons in 2005, and 15 million tons in 2006. In its turn, OAO Russian Railways approved the plan of reconstruction of the sector and border stations to increase the carrying capacity. However, the Agreement became invalid because of the well-known events in the history of the largest and most dynamical Russian company. ZAO YUKOS-Transservice (YTS) Director General Alexey Grom answers the questions of «The RZD-Partner International».



 – Mr.Grom, could you comment on the current situation with oil bulk transportation to China provided by YTS?

– The share of oil transportation to China is about 20% (500-600 thousand tons monthly) of the total volume of transportation provided by YUKOS-Transservice. At the same time, the volume of crude oil of  YUKOS and destined for China has reduced since the beginning of the year, while the dynamics of our company’s work is positive. At the beginning of 2006 we planned to transport no less than 200-250 thousand tons of crude oil for YUKOS via the Naushki border crossing monthly; however, now the figure does not exceed 100 thousand tons, and in August the application was only for 50 thousand tons. 

At the same time, I hope that the production of other oil companies will compensate for the decreasing volumes of YUKOS in the near future. We have already got several inquiries for the terms of transportation services. Besides, OAO Rosneft, the major exporter of oil to China, increases the delivery volume. I believe, in a few months, the company’s application for transportation from the Sukhovskaya station will grow to 500 thousand tons or even more. We have reserves. To transport oil to China we can give up to 4.5 thousand tank-wagons equipped with a steam-heating system, adopted for year-round crude oil transportation to the country. This amount of wagons is enough to carry 700,000-750,000 tons monthly. I believe, the whole park will be required on this route soon. In our turn, we will continue to offer best services and terms of oil transportation to China to companies-exporters. So, we are optimistic about the future. 

– However, the assumption is that when the East Siberia – Pacific oil pipeline with a branch to China is put into operation, the volume of crude transportation by railway will significantly reduce…

– I believe that there will appear plenty of alternative projects of oil bulk transportation till the project of the East Siberia – Pacific oil pipeline is carried out. Perhaps, we will even have to choose, on which route we will use rolling stock. Taking into account the dynamics of development of Siberia and the Far East regions as well as of the Asian Pacific region countries, I am sure that there will be a large demand for railway transportation there. As far as I know, the issue of organization of crude oil transportation by railway to another state of the region is being actively discussed nowadays. And the volume will be almost the same as delivered to China. So, there are reserves. And ZAO YTS is going to take an active part in carrying these projects out.

– Could you evaluate the work of YTS company since the beginning of the year?

– The results of company’s work exceeded the figures planned. Taking into account the fact that the year 2005 was very effective (in fact, it was the best in YTS’s history), we approved the plan for this year envisaging the same positive dynamics. However, in practice it turned out that we are exceeding the plan from both – the production and financial standpoints. In particular, in H1 of 2006 we increased transportation volume by 9.6% (or +1.5 million tons) year-on-year. Such growth became possible due to the increase of production volume of refineries incorporated into the YUKOS company. The growth of production led to increase of transportation. However, the directions of transportation have remained the same. Besides, I would like to note that YTS (as opposed to most Russian operators of rolling stock) has always been oriented at the domestic market. I believe that nowadays we are on the first place in Russia according to the share of commercial transportation inside the country. It is obvious that operators are eager to occupy a sector in some stable and profitable export direction… However, the growth of the Russian consumer market is more important for us today from the standpoint of the new transportation directions development. In the portfolio of our orders there are much more single deliveries in the RF than export transportation directions such as oil to China. 

The second important reason for the high results YTS achieved is the reduction of river navigation volumes in the Samara region this year. The arrest of the largest transporter – Volgotanker’s – accounts almost stopped its activities. As a result, if earlier we registered a 500-thousand-ton-decrease for the group of YUKOS refineries in Samara monthly (during navigation period), this year we load over one million tons monthly.

– Has YUKOS-Transservice created any new logistic solutions this year?

– If it is possible to say so, we have entered а new market – liquefied natural gas (LNG) transportation in tank-containers. In cooperation with our partner Spetstransgarant, we organized trial transportation from Samara to consumers in July. The consumers at gas filling stations valued the economy and technology of the transportation. Our clients liked the technology so much, that nowadays they ask to provide 100% of transportation this way and to start regular operation dispatches in tank-containers. We will surely continue to develop this activity.

– Mr. Grom, what will the future of YUKOS-Transservice be after the announced procedure of YUKOS bankruptcy?

– ZAO YUKOS-Transservice is an independent company, and YUKOS is one of the company’s shareholders. At the same time, it is necessary to understand that the aim of any bankruptcy procedure is to sell the assets of the bankrupt as profitable as it is possible to pay off the debts. That is why we are trying to work most efficiently to increase our capitalization. I would like to stress that the misfortune of our mother company made us mobilize and work more and more effectively to prove that the assets of YUKOS are liquid and very interesting companies. In any situation it is necessary to look for new opportunities to realize one’s potential, and YTS is searching for such opportunities keeping away from politics, doing its best to concentrate its efforts to work efficiently.



Interviewed by TATYANA  TOKAREVA
    [DETAIL_TEXT_TYPE] => html
    [~DETAIL_TEXT_TYPE] => html
    [PREVIEW_TEXT] => 
    [~PREVIEW_TEXT] => 
    [PREVIEW_TEXT_TYPE] => html
    [~PREVIEW_TEXT_TYPE] => html
    [PREVIEW_PICTURE] => 
    [~PREVIEW_PICTURE] => 
    [LANG_DIR] => /
    [~LANG_DIR] => /
    [CODE] => 2775
    [~CODE] => 2775
    [EXTERNAL_ID] => 2775
    [~EXTERNAL_ID] => 2775
    [IBLOCK_TYPE_ID] => info
    [~IBLOCK_TYPE_ID] => info
    [IBLOCK_CODE] => articles_magazines
    [~IBLOCK_CODE] => articles_magazines
    [IBLOCK_EXTERNAL_ID] => 
    [~IBLOCK_EXTERNAL_ID] => 
    [LID] => s1
    [~LID] => s1
    [EDIT_LINK] => 
    [DELETE_LINK] => 
    [DISPLAY_ACTIVE_FROM] => 
    [FIELDS] => Array
        (
        )

    [PROPERTIES] => Array
        (
            [AUTHOR] => Array
                (
                    [ID] => 97
                    [IBLOCK_ID] => 25
                    [NAME] => Автор
                    [ACTIVE] => Y
                    [SORT] => 400
                    [CODE] => AUTHOR
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => Y
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107727:97
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [AUTHOR_PHOTO] => Array
                (
                    [ID] => 108
                    [IBLOCK_ID] => 25
                    [NAME] => Автор фото
                    [ACTIVE] => Y
                    [SORT] => 410
                    [CODE] => AUTHOR_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор фото
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107727:108
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [ISSUE] => Array
                (
                    [ID] => 93
                    [IBLOCK_ID] => 25
                    [NAME] => Выпуск
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ISSUE
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => E
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => Y
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Выпуск
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 105208
                    [PROPERTY_VALUE_ID] => 107727:93
                    [DESCRIPTION] => 
                    [~VALUE] => 105208
                    [~DESCRIPTION] => 
                )

            [BLOG_POST_ID] => Array
                (
                    [ID] => 94
                    [IBLOCK_ID] => 25
                    [NAME] => ID поста блога для комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_POST_ID
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => ID поста блога для комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107727:94
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [BLOG_COMMENTS_CNT] => Array
                (
                    [ID] => 95
                    [IBLOCK_ID] => 25
                    [NAME] => Количество комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_COMMENTS_CNT
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Количество комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107727:95
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [MORE_PHOTO] => Array
                (
                    [ID] => 98
                    [IBLOCK_ID] => 25
                    [NAME] => Дополнительные фотографии
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => MORE_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => Y
                    [XML_ID] => 
                    [FILE_TYPE] => jpg, gif, bmp, png, jpeg
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Дополнительные фотографии
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [PUBLIC_ACCESS] => Array
                (
                    [ID] => 110
                    [IBLOCK_ID] => 25
                    [NAME] => Открытый доступ
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => PUBLIC_ACCESS
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => L
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => C
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Открытый доступ
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107727:110
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                    [VALUE_ENUM_ID] => 
                )

            [ATTACHED_PDF] => Array
                (
                    [ID] => 324
                    [IBLOCK_ID] => 25
                    [NAME] => Прикрепленный PDF
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ATTACHED_PDF
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => pdf
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Прикрепленный PDF
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107727:324
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

        )

    [DISPLAY_PROPERTIES] => Array
        (
        )

    [IPROPERTY_VALUES] => Array
        (
            [SECTION_META_TITLE] => YTS: to Increase Company’s Liquidity
            [SECTION_META_KEYWORDS] => yts: to increase company’s liquidity
            [SECTION_META_DESCRIPTION] => <TABLE cellSpacing=0 cellPadding=2 width="150" height="150" border=0 align="left"><TR><TD><IMG border=0 src="/ufiles/image/rus/partner/2006/03/5.gif"></TD></TR></TABLE>
            [ELEMENT_META_TITLE] => YTS: to Increase Company’s Liquidity
            [ELEMENT_META_KEYWORDS] => yts: to increase company’s liquidity
            [ELEMENT_META_DESCRIPTION] => <TABLE cellSpacing=0 cellPadding=2 width="150" height="150" border=0 align="left"><TR><TD><IMG border=0 src="/ufiles/image/rus/partner/2006/03/5.gif"></TD></TR></TABLE>
            [SECTION_PICTURE_FILE_ALT] => YTS: to Increase Company’s Liquidity
            [SECTION_PICTURE_FILE_TITLE] => YTS: to Increase Company’s Liquidity
            [SECTION_DETAIL_PICTURE_FILE_ALT] => YTS: to Increase Company’s Liquidity
            [SECTION_DETAIL_PICTURE_FILE_TITLE] => YTS: to Increase Company’s Liquidity
            [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => YTS: to Increase Company’s Liquidity
            [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => YTS: to Increase Company’s Liquidity
            [ELEMENT_DETAIL_PICTURE_FILE_ALT] => YTS: to Increase Company’s Liquidity
            [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => YTS: to Increase Company’s Liquidity
        )

)
								

Array
(
    [ID] => 107726
    [~ID] => 107726
    [IBLOCK_ID] => 25
    [~IBLOCK_ID] => 25
    [IBLOCK_SECTION_ID] => 1443
    [~IBLOCK_SECTION_ID] => 1443
    [NAME] => "To Give Unhampered Access"
    [~NAME] => "To Give Unhampered Access"
    [ACTIVE_FROM_X] => 
    [~ACTIVE_FROM_X] => 
    [ACTIVE_FROM] => 
    [~ACTIVE_FROM] => 
    [TIMESTAMP_X] => 24.10.2016 17:13:43
    [~TIMESTAMP_X] => 24.10.2016 17:13:43
    [DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2774/
    [~DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2774/
    [LIST_PAGE_URL] => /info/index.php?ID=25
    [~LIST_PAGE_URL] => /info/index.php?ID=25
    [DETAIL_TEXT] => Rail transport importance for foreign trade between Russia and China cannot be overestimated.

Recently about 80% of aggregate turnover was transported by railways. Vadim Morozov, First Vice-President  of OAO RZD, comments on this cooperation perspectives.



– What cargo volume was transported between China and Russia starting from the beginning of the year? What is year-on-year dynamics and what are transportation prospects?

– In the first half of 2006 the volume of foreign trade cargo transported by railways between Russia and China increased by 7.8% (1.7 mln tons) and made 23.7 mln tons. Russian export took 94.2%, import – 5.4%, transit – 0.4%.

 – You mean increase of transit  flow from China… What is your position in this respect?

– China is the biggest generator of international cargo flows in the world, destined for European countries and the US. At the same time, Russian railways, due to the geographical location of the country and a powerful transport infrastructure, has a great potential for servicing the world trade turnover and contributing to the transport-economic relations development between Europe and Asia. The TransSibrian line being the shortest route for Chinese production delivery to the target consumer markets, it is capable to offer unique transport production in respect of speed and cost. 

As it is known, ОАО RZD strategy aims to advance transit transportation development and we are greatly interested in the attraction of additional cargo flows to this route. We are actively cooperating with the Chinese side in the field of modern transport technologies introduction: in particular, it has to do with the advance growth of container transportation and services quality improvement, as well as speed of delivery and offering clients a complex of services throughout the whole route. 

An important step in partnership development was signing an Agreement between ОАО RZD and the Ministry of Railways of China on the mutual use of standard containers for export-import cargo transportation and e-data exchange during international cargo transportation. In the future we expect a development of our partnership in respect of coordination issues on tariff policy, transportation process optimization, launch of large joint logistic operator companies, joint investment projects for railway infrastructure modernization and development, as well as logistic capacities and service centers launch. I suppose, joint activities will allow to make the rail transport more competitive in order to provide transit transportation and attract additional cargo to the Russian transport infrastructure.

Speaking of the conjuncture valuation of prospects for the transit cargo flows boost, I, first of all, have to say that these volumes can be influenced by the process of containerization going on within the Russian-Chinese trade and by block trains transportation closely connected with it. Now about 1 mln tons of export-import cargoes is transported in containers. Russian export deliveries make paper, cellulose, chemical and other cargoes, while import has to do with consumer goods basically. However, we have a great potential of the Russian-Chinese trade container transportation which is estimated at 3-3.5 mln  tons of containerized cargo. 

Moreover, there is a prospect of transit cargo attraction from volumes made by trade turnover between China and Europe. Nowadays, according to experts, the trade volume between China and Europe amounts to 57 mln tons. The basic part of this volume is oil and other raw materials and, thus, shipping is considered to be the most traditional way of these cargoes delivery. Only about 25% of the above-mentioned trade volume (14-15 mln tons) is destined for the countries that can be linked with the help of the Russian transport network. Containerized cargo makes 8-9 mln tons. 

– How does China’s border infrastructure development correspond with the growing volumes of cargo transportation? What projects on border crossings modernization were implemented last year? What do you plan to do this year? What long-term programmes are implemented for these objects, what investment volume do they need? 

– At present foreign trade cargo transportation between China and Russia goes along three key directions – via border crossings Grodekovo, Zabailkalsk and Naushki. 

In 2005 cargo transportation volumes between Russia and China flowing in these directions amounted to over 29 mln tons. Considering the growing rates of railway throughput between the two countries, which increased three-fold in the last decade, Russian Railways implement large-scaled projects on border transport infrastructure development. 

With the aim to service the growing volumes, in 2005 infrastructure objects worth RUR 3 bln 137 mln were put in operation in the Karymskaya-Zabaikalsk sector, including 55 kilometers of assistant tracks and 17.2 kilometers of station tracks. At the Zabaikalsk railway station tracks were lengthened up to 1050 meters; also, signalization and video surveillance systems were installed. Frontier-customs points were equipped. At the Northern access to the station a new receiving yard and a break-up yard for 8 tracks of 1050 meters were constructed. This modernization of the Zabaikalsk railway station will make it possible to transport 25 mln tons of cargo to China. 

By 2010 the second main line in the Zabaikalsk – Gosgranitsa sector is to be constructed in order to provide a further growth of foreign trade cargo transportation via the border crossing Zabailkalsk – Manchuria.

Within the programme of Naushki – Suhe Bator border crossing development, in 2005 work on lengthening receiving-departure tracks of the Naushki railway station up to 1050 meters was carried out, also, a reconstruction of communication and energy saving devices was implemented, which allowed to shorten export trains idling time. The aggregate cost of the above-mentioned work amounts to RUR 261 mln  In 2006 the construction of a service-technical office worth RUR 200 mln at the Naushki railway station will be completed. 

Steps on the railway station Grodekovo development are also undertaken. By now, a major repair of 21 kilometers of the track in the Grodekovo – Gosgranitsa sector has been completed, as well as laying of crossover track of narrow gauge between Grodekovo 1 and Grodekovo 2 and the work on lengthening the receiving-departure tracks of these stations. The parks are equipped with industrial television systems. The total cost of work amounts to RUR 82.8 mln.

All these projects on infrastructure development are undertaken by OAO RZD according to the Treaty of Friendship, Neighborliness and Cooperation concluded between Russia and the Chinese People’s Republic. 

Speaking of transport infrastructure development in Eastern Russia, we can’t help mentioning the decision recently approved by the Governmental Commission on railway construction to minerals deposits in Chita region. About RUR 140 bln will be invested into the region. For the first time in many years such a large-scaled transport investment project with the state’s participation will be implemented. The Chita region project goes hand in hand with the President’s task on Eastern Siberia development. The 360-kilometer long railway will help business and allow to reach mineral deposits; some ore-mining and processing enterprises will also be constructed. As a result, the region will get over 70 thousand working places, whereas the regional budget will get a one third higher income. These calculations show only the direct effect from the investment. However, it is clear enough that this project launch will assist in new business-ideas development and finding new sources for budget income.

It is a real break-through. 

– What about the present-day technology of interaction functioning at border crossings neighboring with China? 

– Today an automated control system of Zabaikalsk border crossing railstation performs all basic technological operations on getting, handling, accumulation, registration and transmission of information concerning train, cargo, commercial and other types of crossing point work. All departments of the Zabaikalsk station and those of Manchuria are integrated into e-data transmission network. Data exchange with China is implemented according to the Protocol agreements and respective technologies following the rules of network security.

I’d like to reiterate the fact that, in order to implement information accompaniment of railway cargo transportation between Russia and China, on March 20, 2006 the «Agreement between ОАО RZD and the Ministry of Railways of China on e-data exchange for international cargo transportation» was concluded in Beijing. The description of the procedure and technological demands for e-data exchange are envisaged by clauses №1-4 of this Agreement. These clauses include specifications of IFТМIN, APERAK, CONTRL, coding and classification systems used for soft copies exchange in UN/EDIFACT standard, technological schemes of soft copies exchange, a list of electronic addresses, telephones etc. 

The agreement envisages soft copies exchange with data provided by SMGS (internal freight communication way-bill) for further data transmission to border check-points with the aim of preliminary documents registration.

Today we have to add to the Agreement clauses about e-data exchange on cargo documents tracking in UN/EDIFACT format starting from the dispatch point to the final destination, as well as tracking movement and status of both carried units and goods consignments. 

– How satisfactory is the work of the customs bodies?

– One of the significant factors showing the level of customs bodies efficiency is the number of detained cars and their idle-time at the stations. 

In a way the growth of detained cars number can be explained by foreign trade transportation volumes boost and the state bodies control toughening. At the same time, I should say that at some stations the number of customs officials does not correspond to the actual amount of work, which for example, is true for the October railway border crossings. Ideally railway relations with customs bodies should work so that the latter are able to change the number of officials, if necessary and provide minimum idle-time. 

It is important to note that recently the tendency of inspection time shortening has become evident.

In our opinion, customs bodies don’t use the system of risk control analysis so as to reach the minimum level of customs control at border check-points and, as a result, shorten the time of car-idling and strengthen customs control at dispatch points. 

Speaking of the shortening time for car idling at border check-points, I have to confess the latter aren’t equipped enough to mechanize the loading-unloading procedures. This situation results in the fact that the idling period amounts to 3-5 days in average. In this respect such stations as Buslovskaya, Rubtsovsk, Kulunda (import) and Gukovo face the worst situation. 

On the other hand, car idling is also explained by the speed of information exchange between border and domestic customs offices when checking data about detained cars. 

Thus, the major directions for shortening the car idling period are as follows: equipping border check points according to modern demands, and improving the railway interaction with state control bodies at the border. 

– What innovations (including latest information systems launch) were developed and introduced for technological optimization last and this year?

– All information systems should be based on cargo transportation technology with the use of invoices that would perform as customs documents plus their e-version. 

Business activities activation, business community participation in the most prospective transport sector projects launched within the unified customs territory and many other aspects of cooperation are impossible without an automated system of information resources exchange. That was the reason why ОАО RZD and the Federal Customs Service of Russia defined general principles of information interaction during the process of international cargo transportation on the basis of automated system for centralized preparation and registration of transportation documents (ETRAN) of Russian Railways and unified automated information system of customs of Russia. Moreover, we concluded an   agreement on information exchange. 

This agreement envisages organization and introduction of e-documents turnover for international cargo transportation, including e-transport way bills and e-customs declaration. We agreed to exchange information on exported, imported and transit cargo on-line with giving data on cargo in accordance with transportation documents before their arrival to border check-points or destinations. 

Together with e-data on export cargo customs bodies should get preliminary information about import and transit cargo. The best example of such work is setting the system of e-data transmission within the international transport corridor №2. 

Thus, according to «Agreement on e-data exchange between ОАО RZD and Belarus railways» №520 effective from 11.08.2005 in December the decision was made to put the e-data exchange system into operation for such trains as «Mongolian Vector» and «Eastern Wind» that previously worked in e-data exchange trial mode. It aims to exchange confidential data of way bills via Minsk for the whole volume of cargo dispatched from Belarus to Russia and back, including transit. 

On March 14-16, 2006, experts of OAO RZD and Deutsche Bahn held negotiations in Moscow on e-data exchange for railway way bill registration in the second European corridor. The German side offered simultaneous registration for CIM/SMGS at the start of transportation. This registration technology envisages the following procedure: of the Malashevichi railway station CIM transportation document is registered and further on cargo goes under SMGS. 

Considering the fact that in September CIM/SMGS way bill comes in force for the whole route, all aspects of this decision are to be discussed once again. ОАО RZD offered the German side to register transportation documents using the automated system ETRAN. 

The work held on developing the technology of cargo transportation within the international transport corridor №2 brought to lights the necessity of SMGS way bill improvement, since during the process of cargo transportation one of the participants (in particular, the German side) uses CIM way bills. As a result, the work on harmonization of transport legislation for CIM/SMGS had to be done and the unified CIM /SMGS way bill had to be created. 

The latter, including the Directory for its use, was developed under the patronage of International Committee of Railways (CIT) and Organization of railways cooperation.  

– Nowadays not only Russia is interested in cooperation with China. From your point of view, how can the construction of transcontinental Kazakhstan and TransKorean railway influence the Russian railway corridors competitiveness? 

– The intensive growth of trade turnover between Europe and countries of Asian-Pacific region assists in the formation of respective transport infrastructure servicing transcontinental cargo flows. One of the widely-discussed projects is the construction of the Transkazakhstan line on the basis of the European standard gauge aimed to launch a nonstop run between China and European countries. In my mind, such ideas are economically unjustified since the scale of capacities expansion for the present day European gauge consumers and construction of a new one involves heavy investment with no pay-back chances. Moreover, I haven’t even mentioned the great risks concerning the tense international environment in the region. Thus, we believe this project is unlikely to compete with the TransSib, at least in middle-term perspective. Most likely, the Transkazakhstan line, if it is constructed, will focus on servicing Kazakhstan raw material export towards China. 

I think funds distracted for this project implementation could be directed to develop the already existing China – Kazakhstan – Russia –Europe route. It would give a chance to develop the railway infrastructure potential to the full. 

Our position goes hand in hand with the approaches of main international organizations guiding international transport corridors development. Thus, our task in this respect is to develop the present-day infrastructure and its additional directions, avoiding inefficient investment into the construction of alternative lines copying the functioning routes. The TransSiberian line has all capacities for transit cargo flows servicing. Today we should improve it to make it competitive on the world transport services market. 

In this respect activities undertaken by OAO RZD and its president Vladimir Yakunin personally directed at the reconstruction of the TransKorean line are of major importance. Negotiations held between OAO RZD and the railway administrations of the Korean People’s Democratic Republic and the Korea Republic resulted in the decision to start the railway reconstruction in the sector between the North Korean port of Radzhin and the Russian border station Hasan. The project on launching a railway route connect south and North Koreas via the TransSib with Europe is, of course, important for both the economic of all interested sides and the increase of global railway transport competition.

I’m sure the TransSiberian line and the TransKorean line must become key links of the unified railway joining Asia and Europe. 

– In August the railway sector celebrated its professional holiday. What is your seeing of the company’s results this year? 

– In general, I’m satisfied with the positive results achieved. Last year was the period of re-considering methods to meet OAO RZD’s strategic goals; the general way of reform unfolding underwent some changes. At the third stage of the reform we are constructing a powerful transport holding, capable to control its affiliates effectively and provide a dynamic development of railway infrastructure. Last year affiliates in container and perishable goods transportation fields were launched; construction complex is acquiring the sock ownership status; the rolling stock repair sector is close to separation; the work on the launch of the Federal Passenger company is unfolding. The Board made a decision to launch an affiliate operator- company for cargo transportation. All this is implemented in conditions of transportation volumes growth. 

In July the OAO RZD Board approved the updated Strategic programme of the company’s development and the advanced General scheme of railway transport development for the period until 2010 and prospectively until 2015. These documents answer the key questions: what railways will look like in 5-10 years, how passenger and cargo transportation will be organized, what services are to be developed in the near future, which routes will bring new trains, where new railway lines will be constructed etc. 

The major result achieved by the company last year and, generally speaking, during the whole process of the reform is the positive effect for both railway transport consumers and the company’s personnel. In this respect, I can’t help mentioning the positive effect for the economy of Russia as well, since ОАО RZD meets the growing demands for cargo and passenger transportation and does its best to increase transportation quality and safety. 



Interviewed by TATYANA  TOKAREVA
    [~DETAIL_TEXT] => Rail transport importance for foreign trade between Russia and China cannot be overestimated.

Recently about 80% of aggregate turnover was transported by railways. Vadim Morozov, First Vice-President  of OAO RZD, comments on this cooperation perspectives.



– What cargo volume was transported between China and Russia starting from the beginning of the year? What is year-on-year dynamics and what are transportation prospects?

– In the first half of 2006 the volume of foreign trade cargo transported by railways between Russia and China increased by 7.8% (1.7 mln tons) and made 23.7 mln tons. Russian export took 94.2%, import – 5.4%, transit – 0.4%.

 – You mean increase of transit  flow from China… What is your position in this respect?

– China is the biggest generator of international cargo flows in the world, destined for European countries and the US. At the same time, Russian railways, due to the geographical location of the country and a powerful transport infrastructure, has a great potential for servicing the world trade turnover and contributing to the transport-economic relations development between Europe and Asia. The TransSibrian line being the shortest route for Chinese production delivery to the target consumer markets, it is capable to offer unique transport production in respect of speed and cost. 

As it is known, ОАО RZD strategy aims to advance transit transportation development and we are greatly interested in the attraction of additional cargo flows to this route. We are actively cooperating with the Chinese side in the field of modern transport technologies introduction: in particular, it has to do with the advance growth of container transportation and services quality improvement, as well as speed of delivery and offering clients a complex of services throughout the whole route. 

An important step in partnership development was signing an Agreement between ОАО RZD and the Ministry of Railways of China on the mutual use of standard containers for export-import cargo transportation and e-data exchange during international cargo transportation. In the future we expect a development of our partnership in respect of coordination issues on tariff policy, transportation process optimization, launch of large joint logistic operator companies, joint investment projects for railway infrastructure modernization and development, as well as logistic capacities and service centers launch. I suppose, joint activities will allow to make the rail transport more competitive in order to provide transit transportation and attract additional cargo to the Russian transport infrastructure.

Speaking of the conjuncture valuation of prospects for the transit cargo flows boost, I, first of all, have to say that these volumes can be influenced by the process of containerization going on within the Russian-Chinese trade and by block trains transportation closely connected with it. Now about 1 mln tons of export-import cargoes is transported in containers. Russian export deliveries make paper, cellulose, chemical and other cargoes, while import has to do with consumer goods basically. However, we have a great potential of the Russian-Chinese trade container transportation which is estimated at 3-3.5 mln  tons of containerized cargo. 

Moreover, there is a prospect of transit cargo attraction from volumes made by trade turnover between China and Europe. Nowadays, according to experts, the trade volume between China and Europe amounts to 57 mln tons. The basic part of this volume is oil and other raw materials and, thus, shipping is considered to be the most traditional way of these cargoes delivery. Only about 25% of the above-mentioned trade volume (14-15 mln tons) is destined for the countries that can be linked with the help of the Russian transport network. Containerized cargo makes 8-9 mln tons. 

– How does China’s border infrastructure development correspond with the growing volumes of cargo transportation? What projects on border crossings modernization were implemented last year? What do you plan to do this year? What long-term programmes are implemented for these objects, what investment volume do they need? 

– At present foreign trade cargo transportation between China and Russia goes along three key directions – via border crossings Grodekovo, Zabailkalsk and Naushki. 

In 2005 cargo transportation volumes between Russia and China flowing in these directions amounted to over 29 mln tons. Considering the growing rates of railway throughput between the two countries, which increased three-fold in the last decade, Russian Railways implement large-scaled projects on border transport infrastructure development. 

With the aim to service the growing volumes, in 2005 infrastructure objects worth RUR 3 bln 137 mln were put in operation in the Karymskaya-Zabaikalsk sector, including 55 kilometers of assistant tracks and 17.2 kilometers of station tracks. At the Zabaikalsk railway station tracks were lengthened up to 1050 meters; also, signalization and video surveillance systems were installed. Frontier-customs points were equipped. At the Northern access to the station a new receiving yard and a break-up yard for 8 tracks of 1050 meters were constructed. This modernization of the Zabaikalsk railway station will make it possible to transport 25 mln tons of cargo to China. 

By 2010 the second main line in the Zabaikalsk – Gosgranitsa sector is to be constructed in order to provide a further growth of foreign trade cargo transportation via the border crossing Zabailkalsk – Manchuria.

Within the programme of Naushki – Suhe Bator border crossing development, in 2005 work on lengthening receiving-departure tracks of the Naushki railway station up to 1050 meters was carried out, also, a reconstruction of communication and energy saving devices was implemented, which allowed to shorten export trains idling time. The aggregate cost of the above-mentioned work amounts to RUR 261 mln  In 2006 the construction of a service-technical office worth RUR 200 mln at the Naushki railway station will be completed. 

Steps on the railway station Grodekovo development are also undertaken. By now, a major repair of 21 kilometers of the track in the Grodekovo – Gosgranitsa sector has been completed, as well as laying of crossover track of narrow gauge between Grodekovo 1 and Grodekovo 2 and the work on lengthening the receiving-departure tracks of these stations. The parks are equipped with industrial television systems. The total cost of work amounts to RUR 82.8 mln.

All these projects on infrastructure development are undertaken by OAO RZD according to the Treaty of Friendship, Neighborliness and Cooperation concluded between Russia and the Chinese People’s Republic. 

Speaking of transport infrastructure development in Eastern Russia, we can’t help mentioning the decision recently approved by the Governmental Commission on railway construction to minerals deposits in Chita region. About RUR 140 bln will be invested into the region. For the first time in many years such a large-scaled transport investment project with the state’s participation will be implemented. The Chita region project goes hand in hand with the President’s task on Eastern Siberia development. The 360-kilometer long railway will help business and allow to reach mineral deposits; some ore-mining and processing enterprises will also be constructed. As a result, the region will get over 70 thousand working places, whereas the regional budget will get a one third higher income. These calculations show only the direct effect from the investment. However, it is clear enough that this project launch will assist in new business-ideas development and finding new sources for budget income.

It is a real break-through. 

– What about the present-day technology of interaction functioning at border crossings neighboring with China? 

– Today an automated control system of Zabaikalsk border crossing railstation performs all basic technological operations on getting, handling, accumulation, registration and transmission of information concerning train, cargo, commercial and other types of crossing point work. All departments of the Zabaikalsk station and those of Manchuria are integrated into e-data transmission network. Data exchange with China is implemented according to the Protocol agreements and respective technologies following the rules of network security.

I’d like to reiterate the fact that, in order to implement information accompaniment of railway cargo transportation between Russia and China, on March 20, 2006 the «Agreement between ОАО RZD and the Ministry of Railways of China on e-data exchange for international cargo transportation» was concluded in Beijing. The description of the procedure and technological demands for e-data exchange are envisaged by clauses №1-4 of this Agreement. These clauses include specifications of IFТМIN, APERAK, CONTRL, coding and classification systems used for soft copies exchange in UN/EDIFACT standard, technological schemes of soft copies exchange, a list of electronic addresses, telephones etc. 

The agreement envisages soft copies exchange with data provided by SMGS (internal freight communication way-bill) for further data transmission to border check-points with the aim of preliminary documents registration.

Today we have to add to the Agreement clauses about e-data exchange on cargo documents tracking in UN/EDIFACT format starting from the dispatch point to the final destination, as well as tracking movement and status of both carried units and goods consignments. 

– How satisfactory is the work of the customs bodies?

– One of the significant factors showing the level of customs bodies efficiency is the number of detained cars and their idle-time at the stations. 

In a way the growth of detained cars number can be explained by foreign trade transportation volumes boost and the state bodies control toughening. At the same time, I should say that at some stations the number of customs officials does not correspond to the actual amount of work, which for example, is true for the October railway border crossings. Ideally railway relations with customs bodies should work so that the latter are able to change the number of officials, if necessary and provide minimum idle-time. 

It is important to note that recently the tendency of inspection time shortening has become evident.

In our opinion, customs bodies don’t use the system of risk control analysis so as to reach the minimum level of customs control at border check-points and, as a result, shorten the time of car-idling and strengthen customs control at dispatch points. 

Speaking of the shortening time for car idling at border check-points, I have to confess the latter aren’t equipped enough to mechanize the loading-unloading procedures. This situation results in the fact that the idling period amounts to 3-5 days in average. In this respect such stations as Buslovskaya, Rubtsovsk, Kulunda (import) and Gukovo face the worst situation. 

On the other hand, car idling is also explained by the speed of information exchange between border and domestic customs offices when checking data about detained cars. 

Thus, the major directions for shortening the car idling period are as follows: equipping border check points according to modern demands, and improving the railway interaction with state control bodies at the border. 

– What innovations (including latest information systems launch) were developed and introduced for technological optimization last and this year?

– All information systems should be based on cargo transportation technology with the use of invoices that would perform as customs documents plus their e-version. 

Business activities activation, business community participation in the most prospective transport sector projects launched within the unified customs territory and many other aspects of cooperation are impossible without an automated system of information resources exchange. That was the reason why ОАО RZD and the Federal Customs Service of Russia defined general principles of information interaction during the process of international cargo transportation on the basis of automated system for centralized preparation and registration of transportation documents (ETRAN) of Russian Railways and unified automated information system of customs of Russia. Moreover, we concluded an   agreement on information exchange. 

This agreement envisages organization and introduction of e-documents turnover for international cargo transportation, including e-transport way bills and e-customs declaration. We agreed to exchange information on exported, imported and transit cargo on-line with giving data on cargo in accordance with transportation documents before their arrival to border check-points or destinations. 

Together with e-data on export cargo customs bodies should get preliminary information about import and transit cargo. The best example of such work is setting the system of e-data transmission within the international transport corridor №2. 

Thus, according to «Agreement on e-data exchange between ОАО RZD and Belarus railways» №520 effective from 11.08.2005 in December the decision was made to put the e-data exchange system into operation for such trains as «Mongolian Vector» and «Eastern Wind» that previously worked in e-data exchange trial mode. It aims to exchange confidential data of way bills via Minsk for the whole volume of cargo dispatched from Belarus to Russia and back, including transit. 

On March 14-16, 2006, experts of OAO RZD and Deutsche Bahn held negotiations in Moscow on e-data exchange for railway way bill registration in the second European corridor. The German side offered simultaneous registration for CIM/SMGS at the start of transportation. This registration technology envisages the following procedure: of the Malashevichi railway station CIM transportation document is registered and further on cargo goes under SMGS. 

Considering the fact that in September CIM/SMGS way bill comes in force for the whole route, all aspects of this decision are to be discussed once again. ОАО RZD offered the German side to register transportation documents using the automated system ETRAN. 

The work held on developing the technology of cargo transportation within the international transport corridor №2 brought to lights the necessity of SMGS way bill improvement, since during the process of cargo transportation one of the participants (in particular, the German side) uses CIM way bills. As a result, the work on harmonization of transport legislation for CIM/SMGS had to be done and the unified CIM /SMGS way bill had to be created. 

The latter, including the Directory for its use, was developed under the patronage of International Committee of Railways (CIT) and Organization of railways cooperation.  

– Nowadays not only Russia is interested in cooperation with China. From your point of view, how can the construction of transcontinental Kazakhstan and TransKorean railway influence the Russian railway corridors competitiveness? 

– The intensive growth of trade turnover between Europe and countries of Asian-Pacific region assists in the formation of respective transport infrastructure servicing transcontinental cargo flows. One of the widely-discussed projects is the construction of the Transkazakhstan line on the basis of the European standard gauge aimed to launch a nonstop run between China and European countries. In my mind, such ideas are economically unjustified since the scale of capacities expansion for the present day European gauge consumers and construction of a new one involves heavy investment with no pay-back chances. Moreover, I haven’t even mentioned the great risks concerning the tense international environment in the region. Thus, we believe this project is unlikely to compete with the TransSib, at least in middle-term perspective. Most likely, the Transkazakhstan line, if it is constructed, will focus on servicing Kazakhstan raw material export towards China. 

I think funds distracted for this project implementation could be directed to develop the already existing China – Kazakhstan – Russia –Europe route. It would give a chance to develop the railway infrastructure potential to the full. 

Our position goes hand in hand with the approaches of main international organizations guiding international transport corridors development. Thus, our task in this respect is to develop the present-day infrastructure and its additional directions, avoiding inefficient investment into the construction of alternative lines copying the functioning routes. The TransSiberian line has all capacities for transit cargo flows servicing. Today we should improve it to make it competitive on the world transport services market. 

In this respect activities undertaken by OAO RZD and its president Vladimir Yakunin personally directed at the reconstruction of the TransKorean line are of major importance. Negotiations held between OAO RZD and the railway administrations of the Korean People’s Democratic Republic and the Korea Republic resulted in the decision to start the railway reconstruction in the sector between the North Korean port of Radzhin and the Russian border station Hasan. The project on launching a railway route connect south and North Koreas via the TransSib with Europe is, of course, important for both the economic of all interested sides and the increase of global railway transport competition.

I’m sure the TransSiberian line and the TransKorean line must become key links of the unified railway joining Asia and Europe. 

– In August the railway sector celebrated its professional holiday. What is your seeing of the company’s results this year? 

– In general, I’m satisfied with the positive results achieved. Last year was the period of re-considering methods to meet OAO RZD’s strategic goals; the general way of reform unfolding underwent some changes. At the third stage of the reform we are constructing a powerful transport holding, capable to control its affiliates effectively and provide a dynamic development of railway infrastructure. Last year affiliates in container and perishable goods transportation fields were launched; construction complex is acquiring the sock ownership status; the rolling stock repair sector is close to separation; the work on the launch of the Federal Passenger company is unfolding. The Board made a decision to launch an affiliate operator- company for cargo transportation. All this is implemented in conditions of transportation volumes growth. 

In July the OAO RZD Board approved the updated Strategic programme of the company’s development and the advanced General scheme of railway transport development for the period until 2010 and prospectively until 2015. These documents answer the key questions: what railways will look like in 5-10 years, how passenger and cargo transportation will be organized, what services are to be developed in the near future, which routes will bring new trains, where new railway lines will be constructed etc. 

The major result achieved by the company last year and, generally speaking, during the whole process of the reform is the positive effect for both railway transport consumers and the company’s personnel. In this respect, I can’t help mentioning the positive effect for the economy of Russia as well, since ОАО RZD meets the growing demands for cargo and passenger transportation and does its best to increase transportation quality and safety. 



Interviewed by TATYANA  TOKAREVA
    [DETAIL_TEXT_TYPE] => html
    [~DETAIL_TEXT_TYPE] => html
    [PREVIEW_TEXT] => 
    [~PREVIEW_TEXT] => 
    [PREVIEW_TEXT_TYPE] => html
    [~PREVIEW_TEXT_TYPE] => html
    [PREVIEW_PICTURE] => 
    [~PREVIEW_PICTURE] => 
    [LANG_DIR] => /
    [~LANG_DIR] => /
    [CODE] => 2774
    [~CODE] => 2774
    [EXTERNAL_ID] => 2774
    [~EXTERNAL_ID] => 2774
    [IBLOCK_TYPE_ID] => info
    [~IBLOCK_TYPE_ID] => info
    [IBLOCK_CODE] => articles_magazines
    [~IBLOCK_CODE] => articles_magazines
    [IBLOCK_EXTERNAL_ID] => 
    [~IBLOCK_EXTERNAL_ID] => 
    [LID] => s1
    [~LID] => s1
    [EDIT_LINK] => 
    [DELETE_LINK] => 
    [DISPLAY_ACTIVE_FROM] => 
    [FIELDS] => Array
        (
        )

    [PROPERTIES] => Array
        (
            [AUTHOR] => Array
                (
                    [ID] => 97
                    [IBLOCK_ID] => 25
                    [NAME] => Автор
                    [ACTIVE] => Y
                    [SORT] => 400
                    [CODE] => AUTHOR
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => Y
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107726:97
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [AUTHOR_PHOTO] => Array
                (
                    [ID] => 108
                    [IBLOCK_ID] => 25
                    [NAME] => Автор фото
                    [ACTIVE] => Y
                    [SORT] => 410
                    [CODE] => AUTHOR_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор фото
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107726:108
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [ISSUE] => Array
                (
                    [ID] => 93
                    [IBLOCK_ID] => 25
                    [NAME] => Выпуск
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ISSUE
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => E
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => Y
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Выпуск
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 105208
                    [PROPERTY_VALUE_ID] => 107726:93
                    [DESCRIPTION] => 
                    [~VALUE] => 105208
                    [~DESCRIPTION] => 
                )

            [BLOG_POST_ID] => Array
                (
                    [ID] => 94
                    [IBLOCK_ID] => 25
                    [NAME] => ID поста блога для комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_POST_ID
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => ID поста блога для комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107726:94
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [BLOG_COMMENTS_CNT] => Array
                (
                    [ID] => 95
                    [IBLOCK_ID] => 25
                    [NAME] => Количество комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_COMMENTS_CNT
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Количество комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107726:95
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [MORE_PHOTO] => Array
                (
                    [ID] => 98
                    [IBLOCK_ID] => 25
                    [NAME] => Дополнительные фотографии
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => MORE_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => Y
                    [XML_ID] => 
                    [FILE_TYPE] => jpg, gif, bmp, png, jpeg
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Дополнительные фотографии
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [PUBLIC_ACCESS] => Array
                (
                    [ID] => 110
                    [IBLOCK_ID] => 25
                    [NAME] => Открытый доступ
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => PUBLIC_ACCESS
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => L
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => C
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Открытый доступ
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107726:110
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                    [VALUE_ENUM_ID] => 
                )

            [ATTACHED_PDF] => Array
                (
                    [ID] => 324
                    [IBLOCK_ID] => 25
                    [NAME] => Прикрепленный PDF
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ATTACHED_PDF
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => pdf
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Прикрепленный PDF
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107726:324
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

        )

    [DISPLAY_PROPERTIES] => Array
        (
        )

    [IPROPERTY_VALUES] => Array
        (
            [SECTION_META_TITLE] => "To Give Unhampered Access"
            [SECTION_META_KEYWORDS] => "to give unhampered access"
            [SECTION_META_DESCRIPTION] => <TABLE cellSpacing=0 cellPadding=2 width="150" height="150" border=0 align="left"><TR><TD><IMG border=0 src="/ufiles/image/rus/partner/2006/03/4.gif"></TD></TR></TABLE>
            [ELEMENT_META_TITLE] => "To Give Unhampered Access"
            [ELEMENT_META_KEYWORDS] => "to give unhampered access"
            [ELEMENT_META_DESCRIPTION] => <TABLE cellSpacing=0 cellPadding=2 width="150" height="150" border=0 align="left"><TR><TD><IMG border=0 src="/ufiles/image/rus/partner/2006/03/4.gif"></TD></TR></TABLE>
            [SECTION_PICTURE_FILE_ALT] => "To Give Unhampered Access"
            [SECTION_PICTURE_FILE_TITLE] => "To Give Unhampered Access"
            [SECTION_DETAIL_PICTURE_FILE_ALT] => "To Give Unhampered Access"
            [SECTION_DETAIL_PICTURE_FILE_TITLE] => "To Give Unhampered Access"
            [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => "To Give Unhampered Access"
            [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => "To Give Unhampered Access"
            [ELEMENT_DETAIL_PICTURE_FILE_ALT] => "To Give Unhampered Access"
            [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => "To Give Unhampered Access"
        )

)

									Array
(
    [ID] => 107726
    [~ID] => 107726
    [IBLOCK_ID] => 25
    [~IBLOCK_ID] => 25
    [IBLOCK_SECTION_ID] => 1443
    [~IBLOCK_SECTION_ID] => 1443
    [NAME] => "To Give Unhampered Access"
    [~NAME] => "To Give Unhampered Access"
    [ACTIVE_FROM_X] => 
    [~ACTIVE_FROM_X] => 
    [ACTIVE_FROM] => 
    [~ACTIVE_FROM] => 
    [TIMESTAMP_X] => 24.10.2016 17:13:43
    [~TIMESTAMP_X] => 24.10.2016 17:13:43
    [DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2774/
    [~DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2774/
    [LIST_PAGE_URL] => /info/index.php?ID=25
    [~LIST_PAGE_URL] => /info/index.php?ID=25
    [DETAIL_TEXT] => Rail transport importance for foreign trade between Russia and China cannot be overestimated.

Recently about 80% of aggregate turnover was transported by railways. Vadim Morozov, First Vice-President  of OAO RZD, comments on this cooperation perspectives.



– What cargo volume was transported between China and Russia starting from the beginning of the year? What is year-on-year dynamics and what are transportation prospects?

– In the first half of 2006 the volume of foreign trade cargo transported by railways between Russia and China increased by 7.8% (1.7 mln tons) and made 23.7 mln tons. Russian export took 94.2%, import – 5.4%, transit – 0.4%.

 – You mean increase of transit  flow from China… What is your position in this respect?

– China is the biggest generator of international cargo flows in the world, destined for European countries and the US. At the same time, Russian railways, due to the geographical location of the country and a powerful transport infrastructure, has a great potential for servicing the world trade turnover and contributing to the transport-economic relations development between Europe and Asia. The TransSibrian line being the shortest route for Chinese production delivery to the target consumer markets, it is capable to offer unique transport production in respect of speed and cost. 

As it is known, ОАО RZD strategy aims to advance transit transportation development and we are greatly interested in the attraction of additional cargo flows to this route. We are actively cooperating with the Chinese side in the field of modern transport technologies introduction: in particular, it has to do with the advance growth of container transportation and services quality improvement, as well as speed of delivery and offering clients a complex of services throughout the whole route. 

An important step in partnership development was signing an Agreement between ОАО RZD and the Ministry of Railways of China on the mutual use of standard containers for export-import cargo transportation and e-data exchange during international cargo transportation. In the future we expect a development of our partnership in respect of coordination issues on tariff policy, transportation process optimization, launch of large joint logistic operator companies, joint investment projects for railway infrastructure modernization and development, as well as logistic capacities and service centers launch. I suppose, joint activities will allow to make the rail transport more competitive in order to provide transit transportation and attract additional cargo to the Russian transport infrastructure.

Speaking of the conjuncture valuation of prospects for the transit cargo flows boost, I, first of all, have to say that these volumes can be influenced by the process of containerization going on within the Russian-Chinese trade and by block trains transportation closely connected with it. Now about 1 mln tons of export-import cargoes is transported in containers. Russian export deliveries make paper, cellulose, chemical and other cargoes, while import has to do with consumer goods basically. However, we have a great potential of the Russian-Chinese trade container transportation which is estimated at 3-3.5 mln  tons of containerized cargo. 

Moreover, there is a prospect of transit cargo attraction from volumes made by trade turnover between China and Europe. Nowadays, according to experts, the trade volume between China and Europe amounts to 57 mln tons. The basic part of this volume is oil and other raw materials and, thus, shipping is considered to be the most traditional way of these cargoes delivery. Only about 25% of the above-mentioned trade volume (14-15 mln tons) is destined for the countries that can be linked with the help of the Russian transport network. Containerized cargo makes 8-9 mln tons. 

– How does China’s border infrastructure development correspond with the growing volumes of cargo transportation? What projects on border crossings modernization were implemented last year? What do you plan to do this year? What long-term programmes are implemented for these objects, what investment volume do they need? 

– At present foreign trade cargo transportation between China and Russia goes along three key directions – via border crossings Grodekovo, Zabailkalsk and Naushki. 

In 2005 cargo transportation volumes between Russia and China flowing in these directions amounted to over 29 mln tons. Considering the growing rates of railway throughput between the two countries, which increased three-fold in the last decade, Russian Railways implement large-scaled projects on border transport infrastructure development. 

With the aim to service the growing volumes, in 2005 infrastructure objects worth RUR 3 bln 137 mln were put in operation in the Karymskaya-Zabaikalsk sector, including 55 kilometers of assistant tracks and 17.2 kilometers of station tracks. At the Zabaikalsk railway station tracks were lengthened up to 1050 meters; also, signalization and video surveillance systems were installed. Frontier-customs points were equipped. At the Northern access to the station a new receiving yard and a break-up yard for 8 tracks of 1050 meters were constructed. This modernization of the Zabaikalsk railway station will make it possible to transport 25 mln tons of cargo to China. 

By 2010 the second main line in the Zabaikalsk – Gosgranitsa sector is to be constructed in order to provide a further growth of foreign trade cargo transportation via the border crossing Zabailkalsk – Manchuria.

Within the programme of Naushki – Suhe Bator border crossing development, in 2005 work on lengthening receiving-departure tracks of the Naushki railway station up to 1050 meters was carried out, also, a reconstruction of communication and energy saving devices was implemented, which allowed to shorten export trains idling time. The aggregate cost of the above-mentioned work amounts to RUR 261 mln  In 2006 the construction of a service-technical office worth RUR 200 mln at the Naushki railway station will be completed. 

Steps on the railway station Grodekovo development are also undertaken. By now, a major repair of 21 kilometers of the track in the Grodekovo – Gosgranitsa sector has been completed, as well as laying of crossover track of narrow gauge between Grodekovo 1 and Grodekovo 2 and the work on lengthening the receiving-departure tracks of these stations. The parks are equipped with industrial television systems. The total cost of work amounts to RUR 82.8 mln.

All these projects on infrastructure development are undertaken by OAO RZD according to the Treaty of Friendship, Neighborliness and Cooperation concluded between Russia and the Chinese People’s Republic. 

Speaking of transport infrastructure development in Eastern Russia, we can’t help mentioning the decision recently approved by the Governmental Commission on railway construction to minerals deposits in Chita region. About RUR 140 bln will be invested into the region. For the first time in many years such a large-scaled transport investment project with the state’s participation will be implemented. The Chita region project goes hand in hand with the President’s task on Eastern Siberia development. The 360-kilometer long railway will help business and allow to reach mineral deposits; some ore-mining and processing enterprises will also be constructed. As a result, the region will get over 70 thousand working places, whereas the regional budget will get a one third higher income. These calculations show only the direct effect from the investment. However, it is clear enough that this project launch will assist in new business-ideas development and finding new sources for budget income.

It is a real break-through. 

– What about the present-day technology of interaction functioning at border crossings neighboring with China? 

– Today an automated control system of Zabaikalsk border crossing railstation performs all basic technological operations on getting, handling, accumulation, registration and transmission of information concerning train, cargo, commercial and other types of crossing point work. All departments of the Zabaikalsk station and those of Manchuria are integrated into e-data transmission network. Data exchange with China is implemented according to the Protocol agreements and respective technologies following the rules of network security.

I’d like to reiterate the fact that, in order to implement information accompaniment of railway cargo transportation between Russia and China, on March 20, 2006 the «Agreement between ОАО RZD and the Ministry of Railways of China on e-data exchange for international cargo transportation» was concluded in Beijing. The description of the procedure and technological demands for e-data exchange are envisaged by clauses №1-4 of this Agreement. These clauses include specifications of IFТМIN, APERAK, CONTRL, coding and classification systems used for soft copies exchange in UN/EDIFACT standard, technological schemes of soft copies exchange, a list of electronic addresses, telephones etc. 

The agreement envisages soft copies exchange with data provided by SMGS (internal freight communication way-bill) for further data transmission to border check-points with the aim of preliminary documents registration.

Today we have to add to the Agreement clauses about e-data exchange on cargo documents tracking in UN/EDIFACT format starting from the dispatch point to the final destination, as well as tracking movement and status of both carried units and goods consignments. 

– How satisfactory is the work of the customs bodies?

– One of the significant factors showing the level of customs bodies efficiency is the number of detained cars and their idle-time at the stations. 

In a way the growth of detained cars number can be explained by foreign trade transportation volumes boost and the state bodies control toughening. At the same time, I should say that at some stations the number of customs officials does not correspond to the actual amount of work, which for example, is true for the October railway border crossings. Ideally railway relations with customs bodies should work so that the latter are able to change the number of officials, if necessary and provide minimum idle-time. 

It is important to note that recently the tendency of inspection time shortening has become evident.

In our opinion, customs bodies don’t use the system of risk control analysis so as to reach the minimum level of customs control at border check-points and, as a result, shorten the time of car-idling and strengthen customs control at dispatch points. 

Speaking of the shortening time for car idling at border check-points, I have to confess the latter aren’t equipped enough to mechanize the loading-unloading procedures. This situation results in the fact that the idling period amounts to 3-5 days in average. In this respect such stations as Buslovskaya, Rubtsovsk, Kulunda (import) and Gukovo face the worst situation. 

On the other hand, car idling is also explained by the speed of information exchange between border and domestic customs offices when checking data about detained cars. 

Thus, the major directions for shortening the car idling period are as follows: equipping border check points according to modern demands, and improving the railway interaction with state control bodies at the border. 

– What innovations (including latest information systems launch) were developed and introduced for technological optimization last and this year?

– All information systems should be based on cargo transportation technology with the use of invoices that would perform as customs documents plus their e-version. 

Business activities activation, business community participation in the most prospective transport sector projects launched within the unified customs territory and many other aspects of cooperation are impossible without an automated system of information resources exchange. That was the reason why ОАО RZD and the Federal Customs Service of Russia defined general principles of information interaction during the process of international cargo transportation on the basis of automated system for centralized preparation and registration of transportation documents (ETRAN) of Russian Railways and unified automated information system of customs of Russia. Moreover, we concluded an   agreement on information exchange. 

This agreement envisages organization and introduction of e-documents turnover for international cargo transportation, including e-transport way bills and e-customs declaration. We agreed to exchange information on exported, imported and transit cargo on-line with giving data on cargo in accordance with transportation documents before their arrival to border check-points or destinations. 

Together with e-data on export cargo customs bodies should get preliminary information about import and transit cargo. The best example of such work is setting the system of e-data transmission within the international transport corridor №2. 

Thus, according to «Agreement on e-data exchange between ОАО RZD and Belarus railways» №520 effective from 11.08.2005 in December the decision was made to put the e-data exchange system into operation for such trains as «Mongolian Vector» and «Eastern Wind» that previously worked in e-data exchange trial mode. It aims to exchange confidential data of way bills via Minsk for the whole volume of cargo dispatched from Belarus to Russia and back, including transit. 

On March 14-16, 2006, experts of OAO RZD and Deutsche Bahn held negotiations in Moscow on e-data exchange for railway way bill registration in the second European corridor. The German side offered simultaneous registration for CIM/SMGS at the start of transportation. This registration technology envisages the following procedure: of the Malashevichi railway station CIM transportation document is registered and further on cargo goes under SMGS. 

Considering the fact that in September CIM/SMGS way bill comes in force for the whole route, all aspects of this decision are to be discussed once again. ОАО RZD offered the German side to register transportation documents using the automated system ETRAN. 

The work held on developing the technology of cargo transportation within the international transport corridor №2 brought to lights the necessity of SMGS way bill improvement, since during the process of cargo transportation one of the participants (in particular, the German side) uses CIM way bills. As a result, the work on harmonization of transport legislation for CIM/SMGS had to be done and the unified CIM /SMGS way bill had to be created. 

The latter, including the Directory for its use, was developed under the patronage of International Committee of Railways (CIT) and Organization of railways cooperation.  

– Nowadays not only Russia is interested in cooperation with China. From your point of view, how can the construction of transcontinental Kazakhstan and TransKorean railway influence the Russian railway corridors competitiveness? 

– The intensive growth of trade turnover between Europe and countries of Asian-Pacific region assists in the formation of respective transport infrastructure servicing transcontinental cargo flows. One of the widely-discussed projects is the construction of the Transkazakhstan line on the basis of the European standard gauge aimed to launch a nonstop run between China and European countries. In my mind, such ideas are economically unjustified since the scale of capacities expansion for the present day European gauge consumers and construction of a new one involves heavy investment with no pay-back chances. Moreover, I haven’t even mentioned the great risks concerning the tense international environment in the region. Thus, we believe this project is unlikely to compete with the TransSib, at least in middle-term perspective. Most likely, the Transkazakhstan line, if it is constructed, will focus on servicing Kazakhstan raw material export towards China. 

I think funds distracted for this project implementation could be directed to develop the already existing China – Kazakhstan – Russia –Europe route. It would give a chance to develop the railway infrastructure potential to the full. 

Our position goes hand in hand with the approaches of main international organizations guiding international transport corridors development. Thus, our task in this respect is to develop the present-day infrastructure and its additional directions, avoiding inefficient investment into the construction of alternative lines copying the functioning routes. The TransSiberian line has all capacities for transit cargo flows servicing. Today we should improve it to make it competitive on the world transport services market. 

In this respect activities undertaken by OAO RZD and its president Vladimir Yakunin personally directed at the reconstruction of the TransKorean line are of major importance. Negotiations held between OAO RZD and the railway administrations of the Korean People’s Democratic Republic and the Korea Republic resulted in the decision to start the railway reconstruction in the sector between the North Korean port of Radzhin and the Russian border station Hasan. The project on launching a railway route connect south and North Koreas via the TransSib with Europe is, of course, important for both the economic of all interested sides and the increase of global railway transport competition.

I’m sure the TransSiberian line and the TransKorean line must become key links of the unified railway joining Asia and Europe. 

– In August the railway sector celebrated its professional holiday. What is your seeing of the company’s results this year? 

– In general, I’m satisfied with the positive results achieved. Last year was the period of re-considering methods to meet OAO RZD’s strategic goals; the general way of reform unfolding underwent some changes. At the third stage of the reform we are constructing a powerful transport holding, capable to control its affiliates effectively and provide a dynamic development of railway infrastructure. Last year affiliates in container and perishable goods transportation fields were launched; construction complex is acquiring the sock ownership status; the rolling stock repair sector is close to separation; the work on the launch of the Federal Passenger company is unfolding. The Board made a decision to launch an affiliate operator- company for cargo transportation. All this is implemented in conditions of transportation volumes growth. 

In July the OAO RZD Board approved the updated Strategic programme of the company’s development and the advanced General scheme of railway transport development for the period until 2010 and prospectively until 2015. These documents answer the key questions: what railways will look like in 5-10 years, how passenger and cargo transportation will be organized, what services are to be developed in the near future, which routes will bring new trains, where new railway lines will be constructed etc. 

The major result achieved by the company last year and, generally speaking, during the whole process of the reform is the positive effect for both railway transport consumers and the company’s personnel. In this respect, I can’t help mentioning the positive effect for the economy of Russia as well, since ОАО RZD meets the growing demands for cargo and passenger transportation and does its best to increase transportation quality and safety. 



Interviewed by TATYANA  TOKAREVA
    [~DETAIL_TEXT] => Rail transport importance for foreign trade between Russia and China cannot be overestimated.

Recently about 80% of aggregate turnover was transported by railways. Vadim Morozov, First Vice-President  of OAO RZD, comments on this cooperation perspectives.



– What cargo volume was transported between China and Russia starting from the beginning of the year? What is year-on-year dynamics and what are transportation prospects?

– In the first half of 2006 the volume of foreign trade cargo transported by railways between Russia and China increased by 7.8% (1.7 mln tons) and made 23.7 mln tons. Russian export took 94.2%, import – 5.4%, transit – 0.4%.

 – You mean increase of transit  flow from China… What is your position in this respect?

– China is the biggest generator of international cargo flows in the world, destined for European countries and the US. At the same time, Russian railways, due to the geographical location of the country and a powerful transport infrastructure, has a great potential for servicing the world trade turnover and contributing to the transport-economic relations development between Europe and Asia. The TransSibrian line being the shortest route for Chinese production delivery to the target consumer markets, it is capable to offer unique transport production in respect of speed and cost. 

As it is known, ОАО RZD strategy aims to advance transit transportation development and we are greatly interested in the attraction of additional cargo flows to this route. We are actively cooperating with the Chinese side in the field of modern transport technologies introduction: in particular, it has to do with the advance growth of container transportation and services quality improvement, as well as speed of delivery and offering clients a complex of services throughout the whole route. 

An important step in partnership development was signing an Agreement between ОАО RZD and the Ministry of Railways of China on the mutual use of standard containers for export-import cargo transportation and e-data exchange during international cargo transportation. In the future we expect a development of our partnership in respect of coordination issues on tariff policy, transportation process optimization, launch of large joint logistic operator companies, joint investment projects for railway infrastructure modernization and development, as well as logistic capacities and service centers launch. I suppose, joint activities will allow to make the rail transport more competitive in order to provide transit transportation and attract additional cargo to the Russian transport infrastructure.

Speaking of the conjuncture valuation of prospects for the transit cargo flows boost, I, first of all, have to say that these volumes can be influenced by the process of containerization going on within the Russian-Chinese trade and by block trains transportation closely connected with it. Now about 1 mln tons of export-import cargoes is transported in containers. Russian export deliveries make paper, cellulose, chemical and other cargoes, while import has to do with consumer goods basically. However, we have a great potential of the Russian-Chinese trade container transportation which is estimated at 3-3.5 mln  tons of containerized cargo. 

Moreover, there is a prospect of transit cargo attraction from volumes made by trade turnover between China and Europe. Nowadays, according to experts, the trade volume between China and Europe amounts to 57 mln tons. The basic part of this volume is oil and other raw materials and, thus, shipping is considered to be the most traditional way of these cargoes delivery. Only about 25% of the above-mentioned trade volume (14-15 mln tons) is destined for the countries that can be linked with the help of the Russian transport network. Containerized cargo makes 8-9 mln tons. 

– How does China’s border infrastructure development correspond with the growing volumes of cargo transportation? What projects on border crossings modernization were implemented last year? What do you plan to do this year? What long-term programmes are implemented for these objects, what investment volume do they need? 

– At present foreign trade cargo transportation between China and Russia goes along three key directions – via border crossings Grodekovo, Zabailkalsk and Naushki. 

In 2005 cargo transportation volumes between Russia and China flowing in these directions amounted to over 29 mln tons. Considering the growing rates of railway throughput between the two countries, which increased three-fold in the last decade, Russian Railways implement large-scaled projects on border transport infrastructure development. 

With the aim to service the growing volumes, in 2005 infrastructure objects worth RUR 3 bln 137 mln were put in operation in the Karymskaya-Zabaikalsk sector, including 55 kilometers of assistant tracks and 17.2 kilometers of station tracks. At the Zabaikalsk railway station tracks were lengthened up to 1050 meters; also, signalization and video surveillance systems were installed. Frontier-customs points were equipped. At the Northern access to the station a new receiving yard and a break-up yard for 8 tracks of 1050 meters were constructed. This modernization of the Zabaikalsk railway station will make it possible to transport 25 mln tons of cargo to China. 

By 2010 the second main line in the Zabaikalsk – Gosgranitsa sector is to be constructed in order to provide a further growth of foreign trade cargo transportation via the border crossing Zabailkalsk – Manchuria.

Within the programme of Naushki – Suhe Bator border crossing development, in 2005 work on lengthening receiving-departure tracks of the Naushki railway station up to 1050 meters was carried out, also, a reconstruction of communication and energy saving devices was implemented, which allowed to shorten export trains idling time. The aggregate cost of the above-mentioned work amounts to RUR 261 mln  In 2006 the construction of a service-technical office worth RUR 200 mln at the Naushki railway station will be completed. 

Steps on the railway station Grodekovo development are also undertaken. By now, a major repair of 21 kilometers of the track in the Grodekovo – Gosgranitsa sector has been completed, as well as laying of crossover track of narrow gauge between Grodekovo 1 and Grodekovo 2 and the work on lengthening the receiving-departure tracks of these stations. The parks are equipped with industrial television systems. The total cost of work amounts to RUR 82.8 mln.

All these projects on infrastructure development are undertaken by OAO RZD according to the Treaty of Friendship, Neighborliness and Cooperation concluded between Russia and the Chinese People’s Republic. 

Speaking of transport infrastructure development in Eastern Russia, we can’t help mentioning the decision recently approved by the Governmental Commission on railway construction to minerals deposits in Chita region. About RUR 140 bln will be invested into the region. For the first time in many years such a large-scaled transport investment project with the state’s participation will be implemented. The Chita region project goes hand in hand with the President’s task on Eastern Siberia development. The 360-kilometer long railway will help business and allow to reach mineral deposits; some ore-mining and processing enterprises will also be constructed. As a result, the region will get over 70 thousand working places, whereas the regional budget will get a one third higher income. These calculations show only the direct effect from the investment. However, it is clear enough that this project launch will assist in new business-ideas development and finding new sources for budget income.

It is a real break-through. 

– What about the present-day technology of interaction functioning at border crossings neighboring with China? 

– Today an automated control system of Zabaikalsk border crossing railstation performs all basic technological operations on getting, handling, accumulation, registration and transmission of information concerning train, cargo, commercial and other types of crossing point work. All departments of the Zabaikalsk station and those of Manchuria are integrated into e-data transmission network. Data exchange with China is implemented according to the Protocol agreements and respective technologies following the rules of network security.

I’d like to reiterate the fact that, in order to implement information accompaniment of railway cargo transportation between Russia and China, on March 20, 2006 the «Agreement between ОАО RZD and the Ministry of Railways of China on e-data exchange for international cargo transportation» was concluded in Beijing. The description of the procedure and technological demands for e-data exchange are envisaged by clauses №1-4 of this Agreement. These clauses include specifications of IFТМIN, APERAK, CONTRL, coding and classification systems used for soft copies exchange in UN/EDIFACT standard, technological schemes of soft copies exchange, a list of electronic addresses, telephones etc. 

The agreement envisages soft copies exchange with data provided by SMGS (internal freight communication way-bill) for further data transmission to border check-points with the aim of preliminary documents registration.

Today we have to add to the Agreement clauses about e-data exchange on cargo documents tracking in UN/EDIFACT format starting from the dispatch point to the final destination, as well as tracking movement and status of both carried units and goods consignments. 

– How satisfactory is the work of the customs bodies?

– One of the significant factors showing the level of customs bodies efficiency is the number of detained cars and their idle-time at the stations. 

In a way the growth of detained cars number can be explained by foreign trade transportation volumes boost and the state bodies control toughening. At the same time, I should say that at some stations the number of customs officials does not correspond to the actual amount of work, which for example, is true for the October railway border crossings. Ideally railway relations with customs bodies should work so that the latter are able to change the number of officials, if necessary and provide minimum idle-time. 

It is important to note that recently the tendency of inspection time shortening has become evident.

In our opinion, customs bodies don’t use the system of risk control analysis so as to reach the minimum level of customs control at border check-points and, as a result, shorten the time of car-idling and strengthen customs control at dispatch points. 

Speaking of the shortening time for car idling at border check-points, I have to confess the latter aren’t equipped enough to mechanize the loading-unloading procedures. This situation results in the fact that the idling period amounts to 3-5 days in average. In this respect such stations as Buslovskaya, Rubtsovsk, Kulunda (import) and Gukovo face the worst situation. 

On the other hand, car idling is also explained by the speed of information exchange between border and domestic customs offices when checking data about detained cars. 

Thus, the major directions for shortening the car idling period are as follows: equipping border check points according to modern demands, and improving the railway interaction with state control bodies at the border. 

– What innovations (including latest information systems launch) were developed and introduced for technological optimization last and this year?

– All information systems should be based on cargo transportation technology with the use of invoices that would perform as customs documents plus their e-version. 

Business activities activation, business community participation in the most prospective transport sector projects launched within the unified customs territory and many other aspects of cooperation are impossible without an automated system of information resources exchange. That was the reason why ОАО RZD and the Federal Customs Service of Russia defined general principles of information interaction during the process of international cargo transportation on the basis of automated system for centralized preparation and registration of transportation documents (ETRAN) of Russian Railways and unified automated information system of customs of Russia. Moreover, we concluded an   agreement on information exchange. 

This agreement envisages organization and introduction of e-documents turnover for international cargo transportation, including e-transport way bills and e-customs declaration. We agreed to exchange information on exported, imported and transit cargo on-line with giving data on cargo in accordance with transportation documents before their arrival to border check-points or destinations. 

Together with e-data on export cargo customs bodies should get preliminary information about import and transit cargo. The best example of such work is setting the system of e-data transmission within the international transport corridor №2. 

Thus, according to «Agreement on e-data exchange between ОАО RZD and Belarus railways» №520 effective from 11.08.2005 in December the decision was made to put the e-data exchange system into operation for such trains as «Mongolian Vector» and «Eastern Wind» that previously worked in e-data exchange trial mode. It aims to exchange confidential data of way bills via Minsk for the whole volume of cargo dispatched from Belarus to Russia and back, including transit. 

On March 14-16, 2006, experts of OAO RZD and Deutsche Bahn held negotiations in Moscow on e-data exchange for railway way bill registration in the second European corridor. The German side offered simultaneous registration for CIM/SMGS at the start of transportation. This registration technology envisages the following procedure: of the Malashevichi railway station CIM transportation document is registered and further on cargo goes under SMGS. 

Considering the fact that in September CIM/SMGS way bill comes in force for the whole route, all aspects of this decision are to be discussed once again. ОАО RZD offered the German side to register transportation documents using the automated system ETRAN. 

The work held on developing the technology of cargo transportation within the international transport corridor №2 brought to lights the necessity of SMGS way bill improvement, since during the process of cargo transportation one of the participants (in particular, the German side) uses CIM way bills. As a result, the work on harmonization of transport legislation for CIM/SMGS had to be done and the unified CIM /SMGS way bill had to be created. 

The latter, including the Directory for its use, was developed under the patronage of International Committee of Railways (CIT) and Organization of railways cooperation.  

– Nowadays not only Russia is interested in cooperation with China. From your point of view, how can the construction of transcontinental Kazakhstan and TransKorean railway influence the Russian railway corridors competitiveness? 

– The intensive growth of trade turnover between Europe and countries of Asian-Pacific region assists in the formation of respective transport infrastructure servicing transcontinental cargo flows. One of the widely-discussed projects is the construction of the Transkazakhstan line on the basis of the European standard gauge aimed to launch a nonstop run between China and European countries. In my mind, such ideas are economically unjustified since the scale of capacities expansion for the present day European gauge consumers and construction of a new one involves heavy investment with no pay-back chances. Moreover, I haven’t even mentioned the great risks concerning the tense international environment in the region. Thus, we believe this project is unlikely to compete with the TransSib, at least in middle-term perspective. Most likely, the Transkazakhstan line, if it is constructed, will focus on servicing Kazakhstan raw material export towards China. 

I think funds distracted for this project implementation could be directed to develop the already existing China – Kazakhstan – Russia –Europe route. It would give a chance to develop the railway infrastructure potential to the full. 

Our position goes hand in hand with the approaches of main international organizations guiding international transport corridors development. Thus, our task in this respect is to develop the present-day infrastructure and its additional directions, avoiding inefficient investment into the construction of alternative lines copying the functioning routes. The TransSiberian line has all capacities for transit cargo flows servicing. Today we should improve it to make it competitive on the world transport services market. 

In this respect activities undertaken by OAO RZD and its president Vladimir Yakunin personally directed at the reconstruction of the TransKorean line are of major importance. Negotiations held between OAO RZD and the railway administrations of the Korean People’s Democratic Republic and the Korea Republic resulted in the decision to start the railway reconstruction in the sector between the North Korean port of Radzhin and the Russian border station Hasan. The project on launching a railway route connect south and North Koreas via the TransSib with Europe is, of course, important for both the economic of all interested sides and the increase of global railway transport competition.

I’m sure the TransSiberian line and the TransKorean line must become key links of the unified railway joining Asia and Europe. 

– In August the railway sector celebrated its professional holiday. What is your seeing of the company’s results this year? 

– In general, I’m satisfied with the positive results achieved. Last year was the period of re-considering methods to meet OAO RZD’s strategic goals; the general way of reform unfolding underwent some changes. At the third stage of the reform we are constructing a powerful transport holding, capable to control its affiliates effectively and provide a dynamic development of railway infrastructure. Last year affiliates in container and perishable goods transportation fields were launched; construction complex is acquiring the sock ownership status; the rolling stock repair sector is close to separation; the work on the launch of the Federal Passenger company is unfolding. The Board made a decision to launch an affiliate operator- company for cargo transportation. All this is implemented in conditions of transportation volumes growth. 

In July the OAO RZD Board approved the updated Strategic programme of the company’s development and the advanced General scheme of railway transport development for the period until 2010 and prospectively until 2015. These documents answer the key questions: what railways will look like in 5-10 years, how passenger and cargo transportation will be organized, what services are to be developed in the near future, which routes will bring new trains, where new railway lines will be constructed etc. 

The major result achieved by the company last year and, generally speaking, during the whole process of the reform is the positive effect for both railway transport consumers and the company’s personnel. In this respect, I can’t help mentioning the positive effect for the economy of Russia as well, since ОАО RZD meets the growing demands for cargo and passenger transportation and does its best to increase transportation quality and safety. 



Interviewed by TATYANA  TOKAREVA
    [DETAIL_TEXT_TYPE] => html
    [~DETAIL_TEXT_TYPE] => html
    [PREVIEW_TEXT] => 
    [~PREVIEW_TEXT] => 
    [PREVIEW_TEXT_TYPE] => html
    [~PREVIEW_TEXT_TYPE] => html
    [PREVIEW_PICTURE] => 
    [~PREVIEW_PICTURE] => 
    [LANG_DIR] => /
    [~LANG_DIR] => /
    [CODE] => 2774
    [~CODE] => 2774
    [EXTERNAL_ID] => 2774
    [~EXTERNAL_ID] => 2774
    [IBLOCK_TYPE_ID] => info
    [~IBLOCK_TYPE_ID] => info
    [IBLOCK_CODE] => articles_magazines
    [~IBLOCK_CODE] => articles_magazines
    [IBLOCK_EXTERNAL_ID] => 
    [~IBLOCK_EXTERNAL_ID] => 
    [LID] => s1
    [~LID] => s1
    [EDIT_LINK] => 
    [DELETE_LINK] => 
    [DISPLAY_ACTIVE_FROM] => 
    [FIELDS] => Array
        (
        )

    [PROPERTIES] => Array
        (
            [AUTHOR] => Array
                (
                    [ID] => 97
                    [IBLOCK_ID] => 25
                    [NAME] => Автор
                    [ACTIVE] => Y
                    [SORT] => 400
                    [CODE] => AUTHOR
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => Y
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107726:97
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [AUTHOR_PHOTO] => Array
                (
                    [ID] => 108
                    [IBLOCK_ID] => 25
                    [NAME] => Автор фото
                    [ACTIVE] => Y
                    [SORT] => 410
                    [CODE] => AUTHOR_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор фото
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107726:108
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [ISSUE] => Array
                (
                    [ID] => 93
                    [IBLOCK_ID] => 25
                    [NAME] => Выпуск
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ISSUE
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => E
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => Y
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Выпуск
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 105208
                    [PROPERTY_VALUE_ID] => 107726:93
                    [DESCRIPTION] => 
                    [~VALUE] => 105208
                    [~DESCRIPTION] => 
                )

            [BLOG_POST_ID] => Array
                (
                    [ID] => 94
                    [IBLOCK_ID] => 25
                    [NAME] => ID поста блога для комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_POST_ID
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => ID поста блога для комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107726:94
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [BLOG_COMMENTS_CNT] => Array
                (
                    [ID] => 95
                    [IBLOCK_ID] => 25
                    [NAME] => Количество комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_COMMENTS_CNT
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Количество комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107726:95
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [MORE_PHOTO] => Array
                (
                    [ID] => 98
                    [IBLOCK_ID] => 25
                    [NAME] => Дополнительные фотографии
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => MORE_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => Y
                    [XML_ID] => 
                    [FILE_TYPE] => jpg, gif, bmp, png, jpeg
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Дополнительные фотографии
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [PUBLIC_ACCESS] => Array
                (
                    [ID] => 110
                    [IBLOCK_ID] => 25
                    [NAME] => Открытый доступ
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => PUBLIC_ACCESS
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => L
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => C
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Открытый доступ
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107726:110
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                    [VALUE_ENUM_ID] => 
                )

            [ATTACHED_PDF] => Array
                (
                    [ID] => 324
                    [IBLOCK_ID] => 25
                    [NAME] => Прикрепленный PDF
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ATTACHED_PDF
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => pdf
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Прикрепленный PDF
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107726:324
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

        )

    [DISPLAY_PROPERTIES] => Array
        (
        )

    [IPROPERTY_VALUES] => Array
        (
            [SECTION_META_TITLE] => "To Give Unhampered Access"
            [SECTION_META_KEYWORDS] => "to give unhampered access"
            [SECTION_META_DESCRIPTION] => <TABLE cellSpacing=0 cellPadding=2 width="150" height="150" border=0 align="left"><TR><TD><IMG border=0 src="/ufiles/image/rus/partner/2006/03/4.gif"></TD></TR></TABLE>
            [ELEMENT_META_TITLE] => "To Give Unhampered Access"
            [ELEMENT_META_KEYWORDS] => "to give unhampered access"
            [ELEMENT_META_DESCRIPTION] => <TABLE cellSpacing=0 cellPadding=2 width="150" height="150" border=0 align="left"><TR><TD><IMG border=0 src="/ufiles/image/rus/partner/2006/03/4.gif"></TD></TR></TABLE>
            [SECTION_PICTURE_FILE_ALT] => "To Give Unhampered Access"
            [SECTION_PICTURE_FILE_TITLE] => "To Give Unhampered Access"
            [SECTION_DETAIL_PICTURE_FILE_ALT] => "To Give Unhampered Access"
            [SECTION_DETAIL_PICTURE_FILE_TITLE] => "To Give Unhampered Access"
            [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => "To Give Unhampered Access"
            [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => "To Give Unhampered Access"
            [ELEMENT_DETAIL_PICTURE_FILE_ALT] => "To Give Unhampered Access"
            [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => "To Give Unhampered Access"
        )

)
								

Array
(
    [ID] => 107725
    [~ID] => 107725
    [IBLOCK_ID] => 25
    [~IBLOCK_ID] => 25
    [IBLOCK_SECTION_ID] => 1443
    [~IBLOCK_SECTION_ID] => 1443
    [NAME] => Railway to China
    [~NAME] => Railway to China
    [ACTIVE_FROM_X] => 
    [~ACTIVE_FROM_X] => 
    [ACTIVE_FROM] => 
    [~ACTIVE_FROM] => 
    [TIMESTAMP_X] => 24.10.2016 17:13:43
    [~TIMESTAMP_X] => 24.10.2016 17:13:43
    [DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2773/
    [~DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2773/
    [LIST_PAGE_URL] => /info/index.php?ID=25
    [~LIST_PAGE_URL] => /info/index.php?ID=25
    [DETAIL_TEXT] => 

Liquidation of Grey Schemes Damages Transit

As for the cargoes exported, the main share of them is timber (34.8%) and oil bulk (21.3%). The share of mineral fertilizers, ferrous metals and iron ore amounted to 13.9%, 11.3% and 7.1% respectively. Besides, container traffic increased by 11% year-on-year. Meanwhile, import of containers grew by 20% and export increased by 15%. Thus, the total volume of container transportation amounted to 135 thousand TEUs, including over 60 thousand TEUs of import and 35 thousand TEUss of export.

However, at the beginning of this year the situation changed completely. Container traffic increased by 3% only (67.9 thousand TEUs), but the ratio of import and export dynamics changed: export container volume increased by 43% and import container volume grew by 33%. Moreover, analysts noted a reduction of transit volumes, which is considered an inevitable consequence of the so called grey schemes of transportation being done with. 

Obviously, this tendency will continue. The players of the transport market in the Far Eastern region of Russia have often pointed at the reduction of containers transit caused by the increase of railway tariffs. Representatives of OAO RZD explained that the tariff policy will hardly change in the near future because the economic analysis shows that in the structure of the transport constituent for container transit transportation via Russia from any state of the Asian Pacific Region to any destination point in Western Europe the share of tariff on transportation via the territory of the Russian Federation is very small: it does not even compensate for the exploitation expenses. So, it is unreasonable to support such small traffic, and it is a groundless preference given to other participants of the transport chain. Thus, it would be logical to assume that the share of export from Russia in the container turnover volume between the Russian Federation and the People’s Republic of China, as well as in the import from China will increase.

Evaluating the prospects for growth of the basic export cargoes, transportation of ferrous metals will reduce because of the market situation and the fall of Chinese consumers’ demand for it. However, prospects of timber transportation are quite optimistic. Firstly, China is the largest importer of timber from the Russian Federation. At the same time, one third of Russian forests is situated in the Far East and Siberia, which border China. Secondly, in 2000 China implemented duty-free treatment for timber import, which stimulates Russian timber cutters. Besides, there are privileged terms of customs formalities on the key border crossings (because of the large volumes of the freight). Railway analysts believe that the rates of oil bulk transportation to China will be the highest. Experts forecast that China will require over 100 million tons of fuel by 2010. Taking into account the limited capacities of the pipeline network in the direction, it is expected that the railway transport will play a very important role.



OAO RZD and East Siberia – Pacific Oil Pipeline: Competitors...

According to the data of OAO RZD, in 2005 the volume of oil bulk transportation to China amounted to 9.3 million tons, 19.6% up year-on-year. At the same time, crude oil transportation to China grew by 33.9% year-on-year to 7.9 million tons (or 85% of the total volume of oil bulk transported to China). However, transportation volume of oil products decreased by 25.4% to 1.4 million tons (15% of the total oil bulk volume transported to China).

In H1 of 2006, export of oil and products from Russia to China amounted to 5.5 million tons, 20.6% up year-on-year. Meanwhile, there is the tendency of crude oil transportation growth (26% up in comparison with H1 of 2005). The total volume of delivered crude oil amounted to 4.9 million tons, which made 90% of the total volume. At the same time, oil products transportation reduced by 12.8% to 0.6 million tons. Representatives of OAO RZD explain that till 2010 crude oil transportation by railway will be carried out in correspondence with the Plan of Measures to implement the statements of the Agreement on Neighbourhood, Friendship and Cooperation between the Russian Federation and the People’s Republic of China (2005-2008), concluded by the RF President Vladimir Putin and the President of the People’s Republic of China Hu Jintao on October 14, 2004. The document envisages that, based on the principle of mutual profit, the sides are to support the increase of crude oil rail transportation to China, so that annual volume amounts to 15 million tons since 2006.

We can’t but stress that in the structure of Russia’ s and China’s foreign trade turnover, as well as in the structure of OAO RZD’s throughput, there is a tendency for an increase of raw materials supply and reduction of transportation of high value-added produce. However, analysts highlight that the market of the Asia-Pacific Region is the most prospective from the standpoint of oil and products consumption. Russia shows a serious interest to the region, as the RF is geographically close to the Asia-Pacific Region and plays the role of rge top-second world oil exporter (after Saudi Arabia). Besides, prospective plans envisage active development of new oil fields in Eastern Siberia (annual extraction is forecasted to increase there to 50 million tons by 2020), from where oil will be exported to the markets of the states of Asian Pacific Region and China, which occupies the second place in the world according to oil consumption and simultaneously holds a policy of creating a strategic oil reserve that will provide energy safety of the state.

Meanwhile, taking into account the non-developed pipeline network in the eastern direction, railway transport played the leading role in oil bulk transportation until recently. The market was being mastered very fast, so OAO RZD managed not only to increase it profitability, but also to reach a strategic target, i.e. to develop competition in the railway transport sector. (Nowadays, about 60% of oil bulk is transported by private owners of rolling stock). Simultaneously, OAO Russian Railways started to carry out scaled investment projects aimed at the increase of carrying capacity of border crossings and railways to China (with the total volume of capital investments of RUR 13.7 bln). The programmes envisage that oil transportation to China will increase to 30 mln tons by 2010. However, such significant investments require certain guarantees of payback (i.e. stable freight flows that will be operating for a long term). Are there such guarantees nowadays? As it has been mentioned before, the basis for the oil bulk flow carried by railway to China is crude oil. That is why the decision of the RF Government to construct East Siberia –­ Pacific Oil Pipeline with a branch to China (with the design capacity of up to 80 million tons) can influence oil bulk transportation in the Far Eastern region. Railway companies should not worry now, because a number of crucial parameters of the projects have not been defined yet, including the term of the construction, the exact route of the pipeline (because it is transferred from Baikal), the scheme of transportation to the refineries of the Far East and to the sea terminal. The issue of constructing a pipeline branch to China has not been thoroughly worked out. Until the RF Ministry of Industry and Energy presents a detailed analysis of transport balance of oil in the region, the question about the prospects of oil transportation to China by railway will remain opened.

That is why till 2010 (for the period of oil pipeline construction), OAO RZD will assume obligations to transport the required volumes of oil to China. 

Besides, experts of OAO RZD believe that the railway transport has important competitive advantages. These are a more diversified geography of deliveries (nowadays, Russian Railways has three main entrances to the railway network of the People’s Republic of China) and direct access to major consumers. That means the opportunity of transportation of high-quality oil and other liquefied hydrocarbons in tank-wagons with preservation of all the production characteristics. Thus, it can be suggested that OAO RZD will have its own sector of the oil transportation market in the future.

However, the company takes into account that when the pipeline is put into operation, the volume of oil transportation to China by railway may reduce, that is why it has started to look for freight reserves to provide effective loading of the constructed infrastructure at the expense of other cargoes as well. The dynamically increasing commodity turnover between Russia and China and the active development of passenger transportation between the two countries assure the company of its future success.

In any case, there is a hope that pipeline and railway will supplement each other instead of becoming competitors. Only then the efficient development of the Russian transport system and the country’s economy is possible.



YANA  KAREVA
    [~DETAIL_TEXT] => 

Liquidation of Grey Schemes Damages Transit

As for the cargoes exported, the main share of them is timber (34.8%) and oil bulk (21.3%). The share of mineral fertilizers, ferrous metals and iron ore amounted to 13.9%, 11.3% and 7.1% respectively. Besides, container traffic increased by 11% year-on-year. Meanwhile, import of containers grew by 20% and export increased by 15%. Thus, the total volume of container transportation amounted to 135 thousand TEUs, including over 60 thousand TEUs of import and 35 thousand TEUss of export.

However, at the beginning of this year the situation changed completely. Container traffic increased by 3% only (67.9 thousand TEUs), but the ratio of import and export dynamics changed: export container volume increased by 43% and import container volume grew by 33%. Moreover, analysts noted a reduction of transit volumes, which is considered an inevitable consequence of the so called grey schemes of transportation being done with. 

Obviously, this tendency will continue. The players of the transport market in the Far Eastern region of Russia have often pointed at the reduction of containers transit caused by the increase of railway tariffs. Representatives of OAO RZD explained that the tariff policy will hardly change in the near future because the economic analysis shows that in the structure of the transport constituent for container transit transportation via Russia from any state of the Asian Pacific Region to any destination point in Western Europe the share of tariff on transportation via the territory of the Russian Federation is very small: it does not even compensate for the exploitation expenses. So, it is unreasonable to support such small traffic, and it is a groundless preference given to other participants of the transport chain. Thus, it would be logical to assume that the share of export from Russia in the container turnover volume between the Russian Federation and the People’s Republic of China, as well as in the import from China will increase.

Evaluating the prospects for growth of the basic export cargoes, transportation of ferrous metals will reduce because of the market situation and the fall of Chinese consumers’ demand for it. However, prospects of timber transportation are quite optimistic. Firstly, China is the largest importer of timber from the Russian Federation. At the same time, one third of Russian forests is situated in the Far East and Siberia, which border China. Secondly, in 2000 China implemented duty-free treatment for timber import, which stimulates Russian timber cutters. Besides, there are privileged terms of customs formalities on the key border crossings (because of the large volumes of the freight). Railway analysts believe that the rates of oil bulk transportation to China will be the highest. Experts forecast that China will require over 100 million tons of fuel by 2010. Taking into account the limited capacities of the pipeline network in the direction, it is expected that the railway transport will play a very important role.



OAO RZD and East Siberia – Pacific Oil Pipeline: Competitors...

According to the data of OAO RZD, in 2005 the volume of oil bulk transportation to China amounted to 9.3 million tons, 19.6% up year-on-year. At the same time, crude oil transportation to China grew by 33.9% year-on-year to 7.9 million tons (or 85% of the total volume of oil bulk transported to China). However, transportation volume of oil products decreased by 25.4% to 1.4 million tons (15% of the total oil bulk volume transported to China).

In H1 of 2006, export of oil and products from Russia to China amounted to 5.5 million tons, 20.6% up year-on-year. Meanwhile, there is the tendency of crude oil transportation growth (26% up in comparison with H1 of 2005). The total volume of delivered crude oil amounted to 4.9 million tons, which made 90% of the total volume. At the same time, oil products transportation reduced by 12.8% to 0.6 million tons. Representatives of OAO RZD explain that till 2010 crude oil transportation by railway will be carried out in correspondence with the Plan of Measures to implement the statements of the Agreement on Neighbourhood, Friendship and Cooperation between the Russian Federation and the People’s Republic of China (2005-2008), concluded by the RF President Vladimir Putin and the President of the People’s Republic of China Hu Jintao on October 14, 2004. The document envisages that, based on the principle of mutual profit, the sides are to support the increase of crude oil rail transportation to China, so that annual volume amounts to 15 million tons since 2006.

We can’t but stress that in the structure of Russia’ s and China’s foreign trade turnover, as well as in the structure of OAO RZD’s throughput, there is a tendency for an increase of raw materials supply and reduction of transportation of high value-added produce. However, analysts highlight that the market of the Asia-Pacific Region is the most prospective from the standpoint of oil and products consumption. Russia shows a serious interest to the region, as the RF is geographically close to the Asia-Pacific Region and plays the role of rge top-second world oil exporter (after Saudi Arabia). Besides, prospective plans envisage active development of new oil fields in Eastern Siberia (annual extraction is forecasted to increase there to 50 million tons by 2020), from where oil will be exported to the markets of the states of Asian Pacific Region and China, which occupies the second place in the world according to oil consumption and simultaneously holds a policy of creating a strategic oil reserve that will provide energy safety of the state.

Meanwhile, taking into account the non-developed pipeline network in the eastern direction, railway transport played the leading role in oil bulk transportation until recently. The market was being mastered very fast, so OAO RZD managed not only to increase it profitability, but also to reach a strategic target, i.e. to develop competition in the railway transport sector. (Nowadays, about 60% of oil bulk is transported by private owners of rolling stock). Simultaneously, OAO Russian Railways started to carry out scaled investment projects aimed at the increase of carrying capacity of border crossings and railways to China (with the total volume of capital investments of RUR 13.7 bln). The programmes envisage that oil transportation to China will increase to 30 mln tons by 2010. However, such significant investments require certain guarantees of payback (i.e. stable freight flows that will be operating for a long term). Are there such guarantees nowadays? As it has been mentioned before, the basis for the oil bulk flow carried by railway to China is crude oil. That is why the decision of the RF Government to construct East Siberia –­ Pacific Oil Pipeline with a branch to China (with the design capacity of up to 80 million tons) can influence oil bulk transportation in the Far Eastern region. Railway companies should not worry now, because a number of crucial parameters of the projects have not been defined yet, including the term of the construction, the exact route of the pipeline (because it is transferred from Baikal), the scheme of transportation to the refineries of the Far East and to the sea terminal. The issue of constructing a pipeline branch to China has not been thoroughly worked out. Until the RF Ministry of Industry and Energy presents a detailed analysis of transport balance of oil in the region, the question about the prospects of oil transportation to China by railway will remain opened.

That is why till 2010 (for the period of oil pipeline construction), OAO RZD will assume obligations to transport the required volumes of oil to China. 

Besides, experts of OAO RZD believe that the railway transport has important competitive advantages. These are a more diversified geography of deliveries (nowadays, Russian Railways has three main entrances to the railway network of the People’s Republic of China) and direct access to major consumers. That means the opportunity of transportation of high-quality oil and other liquefied hydrocarbons in tank-wagons with preservation of all the production characteristics. Thus, it can be suggested that OAO RZD will have its own sector of the oil transportation market in the future.

However, the company takes into account that when the pipeline is put into operation, the volume of oil transportation to China by railway may reduce, that is why it has started to look for freight reserves to provide effective loading of the constructed infrastructure at the expense of other cargoes as well. The dynamically increasing commodity turnover between Russia and China and the active development of passenger transportation between the two countries assure the company of its future success.

In any case, there is a hope that pipeline and railway will supplement each other instead of becoming competitors. Only then the efficient development of the Russian transport system and the country’s economy is possible.



YANA  KAREVA
    [DETAIL_TEXT_TYPE] => html
    [~DETAIL_TEXT_TYPE] => html
    [PREVIEW_TEXT] => In 2005 the volumes of foreign trade cargoes transported to China via the Russian Railways’ network increased by 13.3% year-on-year to 43.4 million tons.  Export of produce from Russia made 93.6% of the cargo stream. The share of import and transit was  5.2% and 1.2% respectively.

    [~PREVIEW_TEXT] => In 2005 the volumes of foreign trade cargoes transported to China via the Russian Railways’ network increased by 13.3% year-on-year to 43.4 million tons.  Export of produce from Russia made 93.6% of the cargo stream. The share of import and transit was  5.2% and 1.2% respectively.

    [PREVIEW_TEXT_TYPE] => html
    [~PREVIEW_TEXT_TYPE] => html
    [PREVIEW_PICTURE] => 
    [~PREVIEW_PICTURE] => 
    [LANG_DIR] => /
    [~LANG_DIR] => /
    [CODE] => 2773
    [~CODE] => 2773
    [EXTERNAL_ID] => 2773
    [~EXTERNAL_ID] => 2773
    [IBLOCK_TYPE_ID] => info
    [~IBLOCK_TYPE_ID] => info
    [IBLOCK_CODE] => articles_magazines
    [~IBLOCK_CODE] => articles_magazines
    [IBLOCK_EXTERNAL_ID] => 
    [~IBLOCK_EXTERNAL_ID] => 
    [LID] => s1
    [~LID] => s1
    [EDIT_LINK] => 
    [DELETE_LINK] => 
    [DISPLAY_ACTIVE_FROM] => 
    [FIELDS] => Array
        (
        )

    [PROPERTIES] => Array
        (
            [AUTHOR] => Array
                (
                    [ID] => 97
                    [IBLOCK_ID] => 25
                    [NAME] => Автор
                    [ACTIVE] => Y
                    [SORT] => 400
                    [CODE] => AUTHOR
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => Y
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107725:97
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [AUTHOR_PHOTO] => Array
                (
                    [ID] => 108
                    [IBLOCK_ID] => 25
                    [NAME] => Автор фото
                    [ACTIVE] => Y
                    [SORT] => 410
                    [CODE] => AUTHOR_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор фото
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107725:108
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [ISSUE] => Array
                (
                    [ID] => 93
                    [IBLOCK_ID] => 25
                    [NAME] => Выпуск
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ISSUE
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => E
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => Y
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Выпуск
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 105208
                    [PROPERTY_VALUE_ID] => 107725:93
                    [DESCRIPTION] => 
                    [~VALUE] => 105208
                    [~DESCRIPTION] => 
                )

            [BLOG_POST_ID] => Array
                (
                    [ID] => 94
                    [IBLOCK_ID] => 25
                    [NAME] => ID поста блога для комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_POST_ID
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => ID поста блога для комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107725:94
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [BLOG_COMMENTS_CNT] => Array
                (
                    [ID] => 95
                    [IBLOCK_ID] => 25
                    [NAME] => Количество комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_COMMENTS_CNT
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Количество комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107725:95
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [MORE_PHOTO] => Array
                (
                    [ID] => 98
                    [IBLOCK_ID] => 25
                    [NAME] => Дополнительные фотографии
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => MORE_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => Y
                    [XML_ID] => 
                    [FILE_TYPE] => jpg, gif, bmp, png, jpeg
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Дополнительные фотографии
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [PUBLIC_ACCESS] => Array
                (
                    [ID] => 110
                    [IBLOCK_ID] => 25
                    [NAME] => Открытый доступ
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => PUBLIC_ACCESS
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => L
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => C
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Открытый доступ
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107725:110
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                    [VALUE_ENUM_ID] => 
                )

            [ATTACHED_PDF] => Array
                (
                    [ID] => 324
                    [IBLOCK_ID] => 25
                    [NAME] => Прикрепленный PDF
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ATTACHED_PDF
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => pdf
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Прикрепленный PDF
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107725:324
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

        )

    [DISPLAY_PROPERTIES] => Array
        (
        )

    [IPROPERTY_VALUES] => Array
        (
            [SECTION_META_TITLE] => Railway to China
            [SECTION_META_KEYWORDS] => railway to china
            [SECTION_META_DESCRIPTION] => In 2005 the volumes of foreign trade cargoes transported to China via the Russian Railways’ network increased by 13.3% year-on-year to 43.4 million tons.  Export of produce from Russia made 93.6% of the cargo stream. The share of import and transit was  5.2% and 1.2% respectively.<BR>
            [ELEMENT_META_TITLE] => Railway to China
            [ELEMENT_META_KEYWORDS] => railway to china
            [ELEMENT_META_DESCRIPTION] => In 2005 the volumes of foreign trade cargoes transported to China via the Russian Railways’ network increased by 13.3% year-on-year to 43.4 million tons.  Export of produce from Russia made 93.6% of the cargo stream. The share of import and transit was  5.2% and 1.2% respectively.<BR>
            [SECTION_PICTURE_FILE_ALT] => Railway to China
            [SECTION_PICTURE_FILE_TITLE] => Railway to China
            [SECTION_DETAIL_PICTURE_FILE_ALT] => Railway to China
            [SECTION_DETAIL_PICTURE_FILE_TITLE] => Railway to China
            [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => Railway to China
            [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => Railway to China
            [ELEMENT_DETAIL_PICTURE_FILE_ALT] => Railway to China
            [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => Railway to China
        )

)

									Array
(
    [ID] => 107725
    [~ID] => 107725
    [IBLOCK_ID] => 25
    [~IBLOCK_ID] => 25
    [IBLOCK_SECTION_ID] => 1443
    [~IBLOCK_SECTION_ID] => 1443
    [NAME] => Railway to China
    [~NAME] => Railway to China
    [ACTIVE_FROM_X] => 
    [~ACTIVE_FROM_X] => 
    [ACTIVE_FROM] => 
    [~ACTIVE_FROM] => 
    [TIMESTAMP_X] => 24.10.2016 17:13:43
    [~TIMESTAMP_X] => 24.10.2016 17:13:43
    [DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2773/
    [~DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2773/
    [LIST_PAGE_URL] => /info/index.php?ID=25
    [~LIST_PAGE_URL] => /info/index.php?ID=25
    [DETAIL_TEXT] => 

Liquidation of Grey Schemes Damages Transit

As for the cargoes exported, the main share of them is timber (34.8%) and oil bulk (21.3%). The share of mineral fertilizers, ferrous metals and iron ore amounted to 13.9%, 11.3% and 7.1% respectively. Besides, container traffic increased by 11% year-on-year. Meanwhile, import of containers grew by 20% and export increased by 15%. Thus, the total volume of container transportation amounted to 135 thousand TEUs, including over 60 thousand TEUs of import and 35 thousand TEUss of export.

However, at the beginning of this year the situation changed completely. Container traffic increased by 3% only (67.9 thousand TEUs), but the ratio of import and export dynamics changed: export container volume increased by 43% and import container volume grew by 33%. Moreover, analysts noted a reduction of transit volumes, which is considered an inevitable consequence of the so called grey schemes of transportation being done with. 

Obviously, this tendency will continue. The players of the transport market in the Far Eastern region of Russia have often pointed at the reduction of containers transit caused by the increase of railway tariffs. Representatives of OAO RZD explained that the tariff policy will hardly change in the near future because the economic analysis shows that in the structure of the transport constituent for container transit transportation via Russia from any state of the Asian Pacific Region to any destination point in Western Europe the share of tariff on transportation via the territory of the Russian Federation is very small: it does not even compensate for the exploitation expenses. So, it is unreasonable to support such small traffic, and it is a groundless preference given to other participants of the transport chain. Thus, it would be logical to assume that the share of export from Russia in the container turnover volume between the Russian Federation and the People’s Republic of China, as well as in the import from China will increase.

Evaluating the prospects for growth of the basic export cargoes, transportation of ferrous metals will reduce because of the market situation and the fall of Chinese consumers’ demand for it. However, prospects of timber transportation are quite optimistic. Firstly, China is the largest importer of timber from the Russian Federation. At the same time, one third of Russian forests is situated in the Far East and Siberia, which border China. Secondly, in 2000 China implemented duty-free treatment for timber import, which stimulates Russian timber cutters. Besides, there are privileged terms of customs formalities on the key border crossings (because of the large volumes of the freight). Railway analysts believe that the rates of oil bulk transportation to China will be the highest. Experts forecast that China will require over 100 million tons of fuel by 2010. Taking into account the limited capacities of the pipeline network in the direction, it is expected that the railway transport will play a very important role.



OAO RZD and East Siberia – Pacific Oil Pipeline: Competitors...

According to the data of OAO RZD, in 2005 the volume of oil bulk transportation to China amounted to 9.3 million tons, 19.6% up year-on-year. At the same time, crude oil transportation to China grew by 33.9% year-on-year to 7.9 million tons (or 85% of the total volume of oil bulk transported to China). However, transportation volume of oil products decreased by 25.4% to 1.4 million tons (15% of the total oil bulk volume transported to China).

In H1 of 2006, export of oil and products from Russia to China amounted to 5.5 million tons, 20.6% up year-on-year. Meanwhile, there is the tendency of crude oil transportation growth (26% up in comparison with H1 of 2005). The total volume of delivered crude oil amounted to 4.9 million tons, which made 90% of the total volume. At the same time, oil products transportation reduced by 12.8% to 0.6 million tons. Representatives of OAO RZD explain that till 2010 crude oil transportation by railway will be carried out in correspondence with the Plan of Measures to implement the statements of the Agreement on Neighbourhood, Friendship and Cooperation between the Russian Federation and the People’s Republic of China (2005-2008), concluded by the RF President Vladimir Putin and the President of the People’s Republic of China Hu Jintao on October 14, 2004. The document envisages that, based on the principle of mutual profit, the sides are to support the increase of crude oil rail transportation to China, so that annual volume amounts to 15 million tons since 2006.

We can’t but stress that in the structure of Russia’ s and China’s foreign trade turnover, as well as in the structure of OAO RZD’s throughput, there is a tendency for an increase of raw materials supply and reduction of transportation of high value-added produce. However, analysts highlight that the market of the Asia-Pacific Region is the most prospective from the standpoint of oil and products consumption. Russia shows a serious interest to the region, as the RF is geographically close to the Asia-Pacific Region and plays the role of rge top-second world oil exporter (after Saudi Arabia). Besides, prospective plans envisage active development of new oil fields in Eastern Siberia (annual extraction is forecasted to increase there to 50 million tons by 2020), from where oil will be exported to the markets of the states of Asian Pacific Region and China, which occupies the second place in the world according to oil consumption and simultaneously holds a policy of creating a strategic oil reserve that will provide energy safety of the state.

Meanwhile, taking into account the non-developed pipeline network in the eastern direction, railway transport played the leading role in oil bulk transportation until recently. The market was being mastered very fast, so OAO RZD managed not only to increase it profitability, but also to reach a strategic target, i.e. to develop competition in the railway transport sector. (Nowadays, about 60% of oil bulk is transported by private owners of rolling stock). Simultaneously, OAO Russian Railways started to carry out scaled investment projects aimed at the increase of carrying capacity of border crossings and railways to China (with the total volume of capital investments of RUR 13.7 bln). The programmes envisage that oil transportation to China will increase to 30 mln tons by 2010. However, such significant investments require certain guarantees of payback (i.e. stable freight flows that will be operating for a long term). Are there such guarantees nowadays? As it has been mentioned before, the basis for the oil bulk flow carried by railway to China is crude oil. That is why the decision of the RF Government to construct East Siberia –­ Pacific Oil Pipeline with a branch to China (with the design capacity of up to 80 million tons) can influence oil bulk transportation in the Far Eastern region. Railway companies should not worry now, because a number of crucial parameters of the projects have not been defined yet, including the term of the construction, the exact route of the pipeline (because it is transferred from Baikal), the scheme of transportation to the refineries of the Far East and to the sea terminal. The issue of constructing a pipeline branch to China has not been thoroughly worked out. Until the RF Ministry of Industry and Energy presents a detailed analysis of transport balance of oil in the region, the question about the prospects of oil transportation to China by railway will remain opened.

That is why till 2010 (for the period of oil pipeline construction), OAO RZD will assume obligations to transport the required volumes of oil to China. 

Besides, experts of OAO RZD believe that the railway transport has important competitive advantages. These are a more diversified geography of deliveries (nowadays, Russian Railways has three main entrances to the railway network of the People’s Republic of China) and direct access to major consumers. That means the opportunity of transportation of high-quality oil and other liquefied hydrocarbons in tank-wagons with preservation of all the production characteristics. Thus, it can be suggested that OAO RZD will have its own sector of the oil transportation market in the future.

However, the company takes into account that when the pipeline is put into operation, the volume of oil transportation to China by railway may reduce, that is why it has started to look for freight reserves to provide effective loading of the constructed infrastructure at the expense of other cargoes as well. The dynamically increasing commodity turnover between Russia and China and the active development of passenger transportation between the two countries assure the company of its future success.

In any case, there is a hope that pipeline and railway will supplement each other instead of becoming competitors. Only then the efficient development of the Russian transport system and the country’s economy is possible.



YANA  KAREVA
    [~DETAIL_TEXT] => 

Liquidation of Grey Schemes Damages Transit

As for the cargoes exported, the main share of them is timber (34.8%) and oil bulk (21.3%). The share of mineral fertilizers, ferrous metals and iron ore amounted to 13.9%, 11.3% and 7.1% respectively. Besides, container traffic increased by 11% year-on-year. Meanwhile, import of containers grew by 20% and export increased by 15%. Thus, the total volume of container transportation amounted to 135 thousand TEUs, including over 60 thousand TEUs of import and 35 thousand TEUss of export.

However, at the beginning of this year the situation changed completely. Container traffic increased by 3% only (67.9 thousand TEUs), but the ratio of import and export dynamics changed: export container volume increased by 43% and import container volume grew by 33%. Moreover, analysts noted a reduction of transit volumes, which is considered an inevitable consequence of the so called grey schemes of transportation being done with. 

Obviously, this tendency will continue. The players of the transport market in the Far Eastern region of Russia have often pointed at the reduction of containers transit caused by the increase of railway tariffs. Representatives of OAO RZD explained that the tariff policy will hardly change in the near future because the economic analysis shows that in the structure of the transport constituent for container transit transportation via Russia from any state of the Asian Pacific Region to any destination point in Western Europe the share of tariff on transportation via the territory of the Russian Federation is very small: it does not even compensate for the exploitation expenses. So, it is unreasonable to support such small traffic, and it is a groundless preference given to other participants of the transport chain. Thus, it would be logical to assume that the share of export from Russia in the container turnover volume between the Russian Federation and the People’s Republic of China, as well as in the import from China will increase.

Evaluating the prospects for growth of the basic export cargoes, transportation of ferrous metals will reduce because of the market situation and the fall of Chinese consumers’ demand for it. However, prospects of timber transportation are quite optimistic. Firstly, China is the largest importer of timber from the Russian Federation. At the same time, one third of Russian forests is situated in the Far East and Siberia, which border China. Secondly, in 2000 China implemented duty-free treatment for timber import, which stimulates Russian timber cutters. Besides, there are privileged terms of customs formalities on the key border crossings (because of the large volumes of the freight). Railway analysts believe that the rates of oil bulk transportation to China will be the highest. Experts forecast that China will require over 100 million tons of fuel by 2010. Taking into account the limited capacities of the pipeline network in the direction, it is expected that the railway transport will play a very important role.



OAO RZD and East Siberia – Pacific Oil Pipeline: Competitors...

According to the data of OAO RZD, in 2005 the volume of oil bulk transportation to China amounted to 9.3 million tons, 19.6% up year-on-year. At the same time, crude oil transportation to China grew by 33.9% year-on-year to 7.9 million tons (or 85% of the total volume of oil bulk transported to China). However, transportation volume of oil products decreased by 25.4% to 1.4 million tons (15% of the total oil bulk volume transported to China).

In H1 of 2006, export of oil and products from Russia to China amounted to 5.5 million tons, 20.6% up year-on-year. Meanwhile, there is the tendency of crude oil transportation growth (26% up in comparison with H1 of 2005). The total volume of delivered crude oil amounted to 4.9 million tons, which made 90% of the total volume. At the same time, oil products transportation reduced by 12.8% to 0.6 million tons. Representatives of OAO RZD explain that till 2010 crude oil transportation by railway will be carried out in correspondence with the Plan of Measures to implement the statements of the Agreement on Neighbourhood, Friendship and Cooperation between the Russian Federation and the People’s Republic of China (2005-2008), concluded by the RF President Vladimir Putin and the President of the People’s Republic of China Hu Jintao on October 14, 2004. The document envisages that, based on the principle of mutual profit, the sides are to support the increase of crude oil rail transportation to China, so that annual volume amounts to 15 million tons since 2006.

We can’t but stress that in the structure of Russia’ s and China’s foreign trade turnover, as well as in the structure of OAO RZD’s throughput, there is a tendency for an increase of raw materials supply and reduction of transportation of high value-added produce. However, analysts highlight that the market of the Asia-Pacific Region is the most prospective from the standpoint of oil and products consumption. Russia shows a serious interest to the region, as the RF is geographically close to the Asia-Pacific Region and plays the role of rge top-second world oil exporter (after Saudi Arabia). Besides, prospective plans envisage active development of new oil fields in Eastern Siberia (annual extraction is forecasted to increase there to 50 million tons by 2020), from where oil will be exported to the markets of the states of Asian Pacific Region and China, which occupies the second place in the world according to oil consumption and simultaneously holds a policy of creating a strategic oil reserve that will provide energy safety of the state.

Meanwhile, taking into account the non-developed pipeline network in the eastern direction, railway transport played the leading role in oil bulk transportation until recently. The market was being mastered very fast, so OAO RZD managed not only to increase it profitability, but also to reach a strategic target, i.e. to develop competition in the railway transport sector. (Nowadays, about 60% of oil bulk is transported by private owners of rolling stock). Simultaneously, OAO Russian Railways started to carry out scaled investment projects aimed at the increase of carrying capacity of border crossings and railways to China (with the total volume of capital investments of RUR 13.7 bln). The programmes envisage that oil transportation to China will increase to 30 mln tons by 2010. However, such significant investments require certain guarantees of payback (i.e. stable freight flows that will be operating for a long term). Are there such guarantees nowadays? As it has been mentioned before, the basis for the oil bulk flow carried by railway to China is crude oil. That is why the decision of the RF Government to construct East Siberia –­ Pacific Oil Pipeline with a branch to China (with the design capacity of up to 80 million tons) can influence oil bulk transportation in the Far Eastern region. Railway companies should not worry now, because a number of crucial parameters of the projects have not been defined yet, including the term of the construction, the exact route of the pipeline (because it is transferred from Baikal), the scheme of transportation to the refineries of the Far East and to the sea terminal. The issue of constructing a pipeline branch to China has not been thoroughly worked out. Until the RF Ministry of Industry and Energy presents a detailed analysis of transport balance of oil in the region, the question about the prospects of oil transportation to China by railway will remain opened.

That is why till 2010 (for the period of oil pipeline construction), OAO RZD will assume obligations to transport the required volumes of oil to China. 

Besides, experts of OAO RZD believe that the railway transport has important competitive advantages. These are a more diversified geography of deliveries (nowadays, Russian Railways has three main entrances to the railway network of the People’s Republic of China) and direct access to major consumers. That means the opportunity of transportation of high-quality oil and other liquefied hydrocarbons in tank-wagons with preservation of all the production characteristics. Thus, it can be suggested that OAO RZD will have its own sector of the oil transportation market in the future.

However, the company takes into account that when the pipeline is put into operation, the volume of oil transportation to China by railway may reduce, that is why it has started to look for freight reserves to provide effective loading of the constructed infrastructure at the expense of other cargoes as well. The dynamically increasing commodity turnover between Russia and China and the active development of passenger transportation between the two countries assure the company of its future success.

In any case, there is a hope that pipeline and railway will supplement each other instead of becoming competitors. Only then the efficient development of the Russian transport system and the country’s economy is possible.



YANA  KAREVA
    [DETAIL_TEXT_TYPE] => html
    [~DETAIL_TEXT_TYPE] => html
    [PREVIEW_TEXT] => In 2005 the volumes of foreign trade cargoes transported to China via the Russian Railways’ network increased by 13.3% year-on-year to 43.4 million tons.  Export of produce from Russia made 93.6% of the cargo stream. The share of import and transit was  5.2% and 1.2% respectively.

    [~PREVIEW_TEXT] => In 2005 the volumes of foreign trade cargoes transported to China via the Russian Railways’ network increased by 13.3% year-on-year to 43.4 million tons.  Export of produce from Russia made 93.6% of the cargo stream. The share of import and transit was  5.2% and 1.2% respectively.

    [PREVIEW_TEXT_TYPE] => html
    [~PREVIEW_TEXT_TYPE] => html
    [PREVIEW_PICTURE] => 
    [~PREVIEW_PICTURE] => 
    [LANG_DIR] => /
    [~LANG_DIR] => /
    [CODE] => 2773
    [~CODE] => 2773
    [EXTERNAL_ID] => 2773
    [~EXTERNAL_ID] => 2773
    [IBLOCK_TYPE_ID] => info
    [~IBLOCK_TYPE_ID] => info
    [IBLOCK_CODE] => articles_magazines
    [~IBLOCK_CODE] => articles_magazines
    [IBLOCK_EXTERNAL_ID] => 
    [~IBLOCK_EXTERNAL_ID] => 
    [LID] => s1
    [~LID] => s1
    [EDIT_LINK] => 
    [DELETE_LINK] => 
    [DISPLAY_ACTIVE_FROM] => 
    [FIELDS] => Array
        (
        )

    [PROPERTIES] => Array
        (
            [AUTHOR] => Array
                (
                    [ID] => 97
                    [IBLOCK_ID] => 25
                    [NAME] => Автор
                    [ACTIVE] => Y
                    [SORT] => 400
                    [CODE] => AUTHOR
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => Y
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107725:97
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [AUTHOR_PHOTO] => Array
                (
                    [ID] => 108
                    [IBLOCK_ID] => 25
                    [NAME] => Автор фото
                    [ACTIVE] => Y
                    [SORT] => 410
                    [CODE] => AUTHOR_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор фото
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107725:108
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [ISSUE] => Array
                (
                    [ID] => 93
                    [IBLOCK_ID] => 25
                    [NAME] => Выпуск
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ISSUE
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => E
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => Y
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Выпуск
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 105208
                    [PROPERTY_VALUE_ID] => 107725:93
                    [DESCRIPTION] => 
                    [~VALUE] => 105208
                    [~DESCRIPTION] => 
                )

            [BLOG_POST_ID] => Array
                (
                    [ID] => 94
                    [IBLOCK_ID] => 25
                    [NAME] => ID поста блога для комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_POST_ID
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => ID поста блога для комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107725:94
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [BLOG_COMMENTS_CNT] => Array
                (
                    [ID] => 95
                    [IBLOCK_ID] => 25
                    [NAME] => Количество комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_COMMENTS_CNT
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Количество комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107725:95
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [MORE_PHOTO] => Array
                (
                    [ID] => 98
                    [IBLOCK_ID] => 25
                    [NAME] => Дополнительные фотографии
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => MORE_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => Y
                    [XML_ID] => 
                    [FILE_TYPE] => jpg, gif, bmp, png, jpeg
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Дополнительные фотографии
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [PUBLIC_ACCESS] => Array
                (
                    [ID] => 110
                    [IBLOCK_ID] => 25
                    [NAME] => Открытый доступ
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => PUBLIC_ACCESS
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => L
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => C
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Открытый доступ
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107725:110
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                    [VALUE_ENUM_ID] => 
                )

            [ATTACHED_PDF] => Array
                (
                    [ID] => 324
                    [IBLOCK_ID] => 25
                    [NAME] => Прикрепленный PDF
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ATTACHED_PDF
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => pdf
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Прикрепленный PDF
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107725:324
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

        )

    [DISPLAY_PROPERTIES] => Array
        (
        )

    [IPROPERTY_VALUES] => Array
        (
            [SECTION_META_TITLE] => Railway to China
            [SECTION_META_KEYWORDS] => railway to china
            [SECTION_META_DESCRIPTION] => In 2005 the volumes of foreign trade cargoes transported to China via the Russian Railways’ network increased by 13.3% year-on-year to 43.4 million tons.  Export of produce from Russia made 93.6% of the cargo stream. The share of import and transit was  5.2% and 1.2% respectively.<BR>
            [ELEMENT_META_TITLE] => Railway to China
            [ELEMENT_META_KEYWORDS] => railway to china
            [ELEMENT_META_DESCRIPTION] => In 2005 the volumes of foreign trade cargoes transported to China via the Russian Railways’ network increased by 13.3% year-on-year to 43.4 million tons.  Export of produce from Russia made 93.6% of the cargo stream. The share of import and transit was  5.2% and 1.2% respectively.<BR>
            [SECTION_PICTURE_FILE_ALT] => Railway to China
            [SECTION_PICTURE_FILE_TITLE] => Railway to China
            [SECTION_DETAIL_PICTURE_FILE_ALT] => Railway to China
            [SECTION_DETAIL_PICTURE_FILE_TITLE] => Railway to China
            [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => Railway to China
            [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => Railway to China
            [ELEMENT_DETAIL_PICTURE_FILE_ALT] => Railway to China
            [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => Railway to China
        )

)
								

Array
(
    [ID] => 107724
    [~ID] => 107724
    [IBLOCK_ID] => 25
    [~IBLOCK_ID] => 25
    [IBLOCK_SECTION_ID] => 1443
    [~IBLOCK_SECTION_ID] => 1443
    [NAME] => Cooperation of High-Level but Low Efficiency
    [~NAME] => Cooperation of High-Level but Low Efficiency
    [ACTIVE_FROM_X] => 
    [~ACTIVE_FROM_X] => 
    [ACTIVE_FROM] => 
    [~ACTIVE_FROM] => 
    [TIMESTAMP_X] => 24.10.2016 17:13:43
    [~TIMESTAMP_X] => 24.10.2016 17:13:43
    [DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2772/
    [~DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2772/
    [LIST_PAGE_URL] => /info/index.php?ID=25
    [~LIST_PAGE_URL] => /info/index.php?ID=25
    [DETAIL_TEXT] => 

Why does trade turnover grow?

In modern history a new start for Russia and China’s interaction occurred at the beginning of the new millennium. If in the 1990-ies their trade turnover didn’t exceed USD 6—7 bln annually, then starting from 2000 it began to grow intensively by 30% per year and in 2005 exceeded USD 29 bln (+37.3% year-on-year). On the one hand, it is impressive dynamics, on the other, the structure of this foreign trade isn’t favourable for our country, as a major increase can be made at the expense of raw material deliveries boost. 

In 2004, during his official visit to China, the RF President Vladimir Putin defined the aim of further cooperation between Moscow and China in terms of achieving a trade turnover of USD 60 bln by 2010 and optimizing its structure. Special attention should be paid to promoting cooperation in the nuclear sector and machine building production on both countries markets, as well as increasing hi-technologies production share. However, if the task of reaching the trade turnover level of 60 bln (due to current dynamics) seems to be quite realistic, the second task of changing the nature of Russian export, according to the most optimistic experts, is a difficult thing to do. 

Thus, according to the Ministry of Economic  Development and Trade of Russia, in 2005 Russian export to China grew by 31% and reached the level of USD 15.9 bln; import made USD 13.7 bln (+45.2%). At the same time the black ink of trade turnover was 11.5% down year-on-year and made about USD 2.7 bln. However, it should be noted that Russia managed to jump from the tenth to the ninth place of China’s key-partners after the US, Japan, Hong Kong, Korean Republic, Taiwan, Germany, Singapore and Malaysia. 

The results of the first five months of 2006 still demonstrate high dynamics of trade turnover (+21.6% year-on-year); on the other hand, many questions arise. Thus, Russia’s share in aggregate trade turnover of China decreased by 1.88%; export from our country to the Chinese People’s Republic grew by 16.2%, having reached USD 7.12 bln, though import grew by 30.3% (over USD 5 bln) and black ink amounted to USD 2.14 bln with the negative dynamics of 7.2%. The reason for this situation lies in Russian raw material export growth against the growing share of Chinese import-production of high value added. According to the Ministry of Trade and Economic Development, in 2004 the share of such production as mineral fuel, timber, fertilizers, fish and sea products, ferrous and non-ferrous metals, cellulose and ore made 84.2%; in 2005 this was 88.7%, and during the period from January to May of 2006 – 90%.

At the same time, such position as «machinery and equipment» takes only 2.1%: this is two-fold down compared to the results achieved in 2000 and last year, and by 14, 10 and 6 times down compared to the results of 2001, 2002 and 2003 respectively. It should be noted that the period from 2001 to 2003 was characterized by the highest rates of Chinese economic growth when it focused on steel industry development: simultaneously with raw materials – ferrous metals, ore and coal – China purchased industrial equipment. This is why «having built» the Chinese metallurgic complex, Russia now performs as its raw material appendage. 

At the same time, machinery and equipment are permanently expanding in the Chinese import. If in 2004 its share in import flow from China was 17.2%, in 2005 it made 20.1%. During the period from January to May this year, the share of machinery and equipment reached 26.5% (USD 1.37 bln, +63.8% year-on-year). The most intensively developing positions include transport vehicles, the import volume of which grew two-fold compared to 2004, and according to the results achieved in the first five months of 2006 – two-fold year-on-year. Import of electronics, communication equipment and domestic appliances grew by 50%.



Raw appendage of China?

The major position for the Russian export to China is still fuel-energy raw materials, such as coal, oil and products. This position shows the most stable growth. Thus, in 2005 its share in aggregate export structure was 41.3% (against 34.5% in 2004). In the first half of 2006 it reached 53%. 

Crude oil export is growing rapidly: in 2005 deliveries boosted by 18.6% (12.7 mln tons), and in USD equivalent grew by 68.8% (almost 5 bln). At the same time, in December 2005 crude oil export grew two-fold year-on-year. Speaking of crude oil, Russia joins the first five suppliers to the Chinese market. In China’s aggregate import Russia’s crude oil took over 10% (126.8 mln tons) against 8.8% in 2004. Saudi Arabia supplied 17.5%; 13.8% and 11.3% are the shares of Angola and Iran, while Oman supplies 8.5%.

This tendency remains the same this year. From January to May crude oil deliveries from Russia to China amounted to 6.4 mln tons (+35.5% year-on-year), which is 80% more in terms of financial results (USD 2.93 bln). Russia’s share of crude oil in the aggregate import of China exceeded 10.5%.

The second position of the Russian export belongs to timber and timber logs. In 2005 its share totaled to 11.3%. During the period of the first five months it reached almost 14%. In fact, if in 2004 some 17.6 mln cubic meters of timber was supplied to China (including 16.9 mln cubic meters of unprocessed timber), in 2005 the export volume of this corgo exceeded 21.1 mln cubic meters with the increase of 19%. In Q1 2006 the export boost amounted to 28.4% (having reached the level of 6.09 mln cubic meters, 95.6% of which took timber logs). At the same time, it is quite significant that the Russian timber share in the structure of the whole Chinese import is 75.2%.

One more sad specific of Russian timber deliveries to China is a clear contradiction between supply volumes achieved and their cost. Thus, in 2004 having accounted for 64.25% in the structure of aggregate Chinese import of timber, while priceworthy the Russian production took only 27.6%. Although in 2005 the Russian timber supplies cost grew by 25%, the same gap still remains today and makes 61%.

According to experts, when purchasing timber in Russia, Chinese companies prefer to import raw material, since prices for sawn-timber in China are unstable. In this situation Chinese companies negotiating with their Russian partners try to decrease risks as much as possible but at the expense of the Russian side. At the same time Russian companies doing business with China point out the following: considering the fact that the majority of cargo is exported to China from the Russian Far East, China has the chance to control prices for timber fluctuation. If an active demand for timber arises from the Japanese side, which is ready to offer world market prices, the Chinese also purchase timber within this price rate. When the Japanese market is full, China, using its position as a non-alternative consumer, can make purchase prices fall causing great trouble to the Russian manufactures. The third position in the structure of the Russian export is ferrous metals. During recent years their share fluctuated, however insignificantly and on average it made 11%. Today the situation has changed totally. As was said above, if earlier, in the period of its intensive development, China was interested in the purchase of Russian ferrous metals to develop domestic machine engineering, now there is no such necessity any longer which has influenced greatly the volumes of ferrous metallurgy production. According to the results of Q1 2006, the share of ferrous metals in the aggregate export of Russia to China made only 3.1%. 



Russian hospitability or Chinese expansion?

Nevertheless, the RF Government is optimistic and declares prospects of the trade turnover growing two-fold within the next five years. At the same time, one of the key issues concerns implementation of joint investment projects. This is the reason why Russia actively participates in specialized exhibitions and forums. Thus, last year it was 16th Harbin exhibition where the unified exposition of exhibiting stalls of enterprises and companies from 26 regions of Russia was represented. Over 70 investment projects for such areas as mineral deposit development, timber processing, communication and telecommunication, agriculture, transport infrastructure etc. were promoted. A similar event was the 2nd Russian-Chinese investment forum where some significant contracts worth USD 700 mln were signed.  In general, according to the Ministry of Commerce of Chinese People’s Republic during 2005 there were concluded 82 new investment projects on the territory of the Russian Federation (in 2004 there were 52). Thus, the total number of projects implemented in Russia with Chinese capital participation reached 657. The volume of Chinese investment last year made USD 320 mln, twice more than in 2004. The overall sum of Chinese contractual investment amounts to USD 977 mln. At the same time in Q1 2006 investment volume from China to Russia made USD 280 mln. 

According to experts of the RF Ministry of Economic Development and Trade, the increase of the Russian stock flowing to the Chinese economy can be observed. Russian investment volumes are practically equal to the Chinese investment in Russia.  According to the Ministry of Commerce of China, in 2005 the state gave permission to implement 162 projects with the Russian investment share worth USD 298 mln; the sum of investment used in reality made USD 81.9 mln. In general, Russian investment activities in China are characterized by the following data: total number of approved projects – 1849, volume of contractual investment – USD 1.4 bln. The aggregate sum of practically involved funds amounts to USD 541 mln.  Speaking of the basic areas where the Russian investors take active steps, they are: processing industry, including agriculture production processing, chemical goods manufacture, raw materials processing, transport machinery production, and transport services. Moreover, experts register a boost of interest on behalf of the biggest Russian companies (ОАО Severstal and ОАО Rusal) to both direct and portfolio investment into China’s industrial objects.

As a result the Russian government officials are optimistic and ready to consider projects of strengthening the cooperation within the framework of the newly launched coordination centers, specialized centers of investors’ support, advertising campaigns on the Chinese territory etc. However, can it really change the situation and solve the current problems? We can’t be sure.

The problem is even considering the fact of mutual agreements between the two countries’ heads on cooperation and probability of attraction of more and more Chinese investment into the Russian industry (about USD 12 bln until 2020), experts-realists say there won’t be any serious changes. China invests into the construction of its own enterprises on the territory of the RF, not into the RF development. 

The brightest example can be observed in the timber industry. China is ready to invest into factories construction only under condition of their being close to raw material bases and border crossings. About 40 Chinese companies are working in the Far East region of Russia now. Annually they produce about 1.14 bln tons of wood and process the same amount of raw material. China aims at production level of 5 mln cubic meters per year. Remembering the fact that China doesn’t destroy its own forests and, on the opposite, invests into forestry (USD 11.6 bln by 2010), then the answer to the question whether Russia performs as a raw material appendage for China is quite simple. That is why the next question arises, namely whether the declared raw-materials dependence of China is a real dependence or a strategically planned policy of Beijing? 

Moreover, Chinese companies presence on the Russian territory doesn’t assist in Russia’s own population employment. The Chinese work for China, and the Chinese work for Russia! According to the Ministry of Trade and Economic Development, in 2005 labour and construction contracts with China amounted to USD 660 mln. Last year, to perform contractual obligations on the territory of the Russian Federation, over 18 thousand of Chinese citizens lived in Russia (in 2004 this number amounted to 14.7 thousand people). It should be mentioned that they are employed not in the lowest-paid positions…



ZlATA  YASENEVA
    [~DETAIL_TEXT] => 

Why does trade turnover grow?

In modern history a new start for Russia and China’s interaction occurred at the beginning of the new millennium. If in the 1990-ies their trade turnover didn’t exceed USD 6—7 bln annually, then starting from 2000 it began to grow intensively by 30% per year and in 2005 exceeded USD 29 bln (+37.3% year-on-year). On the one hand, it is impressive dynamics, on the other, the structure of this foreign trade isn’t favourable for our country, as a major increase can be made at the expense of raw material deliveries boost. 

In 2004, during his official visit to China, the RF President Vladimir Putin defined the aim of further cooperation between Moscow and China in terms of achieving a trade turnover of USD 60 bln by 2010 and optimizing its structure. Special attention should be paid to promoting cooperation in the nuclear sector and machine building production on both countries markets, as well as increasing hi-technologies production share. However, if the task of reaching the trade turnover level of 60 bln (due to current dynamics) seems to be quite realistic, the second task of changing the nature of Russian export, according to the most optimistic experts, is a difficult thing to do. 

Thus, according to the Ministry of Economic  Development and Trade of Russia, in 2005 Russian export to China grew by 31% and reached the level of USD 15.9 bln; import made USD 13.7 bln (+45.2%). At the same time the black ink of trade turnover was 11.5% down year-on-year and made about USD 2.7 bln. However, it should be noted that Russia managed to jump from the tenth to the ninth place of China’s key-partners after the US, Japan, Hong Kong, Korean Republic, Taiwan, Germany, Singapore and Malaysia. 

The results of the first five months of 2006 still demonstrate high dynamics of trade turnover (+21.6% year-on-year); on the other hand, many questions arise. Thus, Russia’s share in aggregate trade turnover of China decreased by 1.88%; export from our country to the Chinese People’s Republic grew by 16.2%, having reached USD 7.12 bln, though import grew by 30.3% (over USD 5 bln) and black ink amounted to USD 2.14 bln with the negative dynamics of 7.2%. The reason for this situation lies in Russian raw material export growth against the growing share of Chinese import-production of high value added. According to the Ministry of Trade and Economic Development, in 2004 the share of such production as mineral fuel, timber, fertilizers, fish and sea products, ferrous and non-ferrous metals, cellulose and ore made 84.2%; in 2005 this was 88.7%, and during the period from January to May of 2006 – 90%.

At the same time, such position as «machinery and equipment» takes only 2.1%: this is two-fold down compared to the results achieved in 2000 and last year, and by 14, 10 and 6 times down compared to the results of 2001, 2002 and 2003 respectively. It should be noted that the period from 2001 to 2003 was characterized by the highest rates of Chinese economic growth when it focused on steel industry development: simultaneously with raw materials – ferrous metals, ore and coal – China purchased industrial equipment. This is why «having built» the Chinese metallurgic complex, Russia now performs as its raw material appendage. 

At the same time, machinery and equipment are permanently expanding in the Chinese import. If in 2004 its share in import flow from China was 17.2%, in 2005 it made 20.1%. During the period from January to May this year, the share of machinery and equipment reached 26.5% (USD 1.37 bln, +63.8% year-on-year). The most intensively developing positions include transport vehicles, the import volume of which grew two-fold compared to 2004, and according to the results achieved in the first five months of 2006 – two-fold year-on-year. Import of electronics, communication equipment and domestic appliances grew by 50%.



Raw appendage of China?

The major position for the Russian export to China is still fuel-energy raw materials, such as coal, oil and products. This position shows the most stable growth. Thus, in 2005 its share in aggregate export structure was 41.3% (against 34.5% in 2004). In the first half of 2006 it reached 53%. 

Crude oil export is growing rapidly: in 2005 deliveries boosted by 18.6% (12.7 mln tons), and in USD equivalent grew by 68.8% (almost 5 bln). At the same time, in December 2005 crude oil export grew two-fold year-on-year. Speaking of crude oil, Russia joins the first five suppliers to the Chinese market. In China’s aggregate import Russia’s crude oil took over 10% (126.8 mln tons) against 8.8% in 2004. Saudi Arabia supplied 17.5%; 13.8% and 11.3% are the shares of Angola and Iran, while Oman supplies 8.5%.

This tendency remains the same this year. From January to May crude oil deliveries from Russia to China amounted to 6.4 mln tons (+35.5% year-on-year), which is 80% more in terms of financial results (USD 2.93 bln). Russia’s share of crude oil in the aggregate import of China exceeded 10.5%.

The second position of the Russian export belongs to timber and timber logs. In 2005 its share totaled to 11.3%. During the period of the first five months it reached almost 14%. In fact, if in 2004 some 17.6 mln cubic meters of timber was supplied to China (including 16.9 mln cubic meters of unprocessed timber), in 2005 the export volume of this corgo exceeded 21.1 mln cubic meters with the increase of 19%. In Q1 2006 the export boost amounted to 28.4% (having reached the level of 6.09 mln cubic meters, 95.6% of which took timber logs). At the same time, it is quite significant that the Russian timber share in the structure of the whole Chinese import is 75.2%.

One more sad specific of Russian timber deliveries to China is a clear contradiction between supply volumes achieved and their cost. Thus, in 2004 having accounted for 64.25% in the structure of aggregate Chinese import of timber, while priceworthy the Russian production took only 27.6%. Although in 2005 the Russian timber supplies cost grew by 25%, the same gap still remains today and makes 61%.

According to experts, when purchasing timber in Russia, Chinese companies prefer to import raw material, since prices for sawn-timber in China are unstable. In this situation Chinese companies negotiating with their Russian partners try to decrease risks as much as possible but at the expense of the Russian side. At the same time Russian companies doing business with China point out the following: considering the fact that the majority of cargo is exported to China from the Russian Far East, China has the chance to control prices for timber fluctuation. If an active demand for timber arises from the Japanese side, which is ready to offer world market prices, the Chinese also purchase timber within this price rate. When the Japanese market is full, China, using its position as a non-alternative consumer, can make purchase prices fall causing great trouble to the Russian manufactures. The third position in the structure of the Russian export is ferrous metals. During recent years their share fluctuated, however insignificantly and on average it made 11%. Today the situation has changed totally. As was said above, if earlier, in the period of its intensive development, China was interested in the purchase of Russian ferrous metals to develop domestic machine engineering, now there is no such necessity any longer which has influenced greatly the volumes of ferrous metallurgy production. According to the results of Q1 2006, the share of ferrous metals in the aggregate export of Russia to China made only 3.1%. 



Russian hospitability or Chinese expansion?

Nevertheless, the RF Government is optimistic and declares prospects of the trade turnover growing two-fold within the next five years. At the same time, one of the key issues concerns implementation of joint investment projects. This is the reason why Russia actively participates in specialized exhibitions and forums. Thus, last year it was 16th Harbin exhibition where the unified exposition of exhibiting stalls of enterprises and companies from 26 regions of Russia was represented. Over 70 investment projects for such areas as mineral deposit development, timber processing, communication and telecommunication, agriculture, transport infrastructure etc. were promoted. A similar event was the 2nd Russian-Chinese investment forum where some significant contracts worth USD 700 mln were signed.  In general, according to the Ministry of Commerce of Chinese People’s Republic during 2005 there were concluded 82 new investment projects on the territory of the Russian Federation (in 2004 there were 52). Thus, the total number of projects implemented in Russia with Chinese capital participation reached 657. The volume of Chinese investment last year made USD 320 mln, twice more than in 2004. The overall sum of Chinese contractual investment amounts to USD 977 mln. At the same time in Q1 2006 investment volume from China to Russia made USD 280 mln. 

According to experts of the RF Ministry of Economic Development and Trade, the increase of the Russian stock flowing to the Chinese economy can be observed. Russian investment volumes are practically equal to the Chinese investment in Russia.  According to the Ministry of Commerce of China, in 2005 the state gave permission to implement 162 projects with the Russian investment share worth USD 298 mln; the sum of investment used in reality made USD 81.9 mln. In general, Russian investment activities in China are characterized by the following data: total number of approved projects – 1849, volume of contractual investment – USD 1.4 bln. The aggregate sum of practically involved funds amounts to USD 541 mln.  Speaking of the basic areas where the Russian investors take active steps, they are: processing industry, including agriculture production processing, chemical goods manufacture, raw materials processing, transport machinery production, and transport services. Moreover, experts register a boost of interest on behalf of the biggest Russian companies (ОАО Severstal and ОАО Rusal) to both direct and portfolio investment into China’s industrial objects.

As a result the Russian government officials are optimistic and ready to consider projects of strengthening the cooperation within the framework of the newly launched coordination centers, specialized centers of investors’ support, advertising campaigns on the Chinese territory etc. However, can it really change the situation and solve the current problems? We can’t be sure.

The problem is even considering the fact of mutual agreements between the two countries’ heads on cooperation and probability of attraction of more and more Chinese investment into the Russian industry (about USD 12 bln until 2020), experts-realists say there won’t be any serious changes. China invests into the construction of its own enterprises on the territory of the RF, not into the RF development. 

The brightest example can be observed in the timber industry. China is ready to invest into factories construction only under condition of their being close to raw material bases and border crossings. About 40 Chinese companies are working in the Far East region of Russia now. Annually they produce about 1.14 bln tons of wood and process the same amount of raw material. China aims at production level of 5 mln cubic meters per year. Remembering the fact that China doesn’t destroy its own forests and, on the opposite, invests into forestry (USD 11.6 bln by 2010), then the answer to the question whether Russia performs as a raw material appendage for China is quite simple. That is why the next question arises, namely whether the declared raw-materials dependence of China is a real dependence or a strategically planned policy of Beijing? 

Moreover, Chinese companies presence on the Russian territory doesn’t assist in Russia’s own population employment. The Chinese work for China, and the Chinese work for Russia! According to the Ministry of Trade and Economic Development, in 2005 labour and construction contracts with China amounted to USD 660 mln. Last year, to perform contractual obligations on the territory of the Russian Federation, over 18 thousand of Chinese citizens lived in Russia (in 2004 this number amounted to 14.7 thousand people). It should be mentioned that they are employed not in the lowest-paid positions…



ZlATA  YASENEVA
    [DETAIL_TEXT_TYPE] => html
    [~DETAIL_TEXT_TYPE] => html
    [PREVIEW_TEXT] => China is the second most important strategic partner for Russia after Germany and the first one in Asian-Pacific region. Russia hardly joins China’s first ten partners in terms of foreign trade cargo turnover since its share doesn’t exceed two percent in the Chinese foreign trade structure.

    [~PREVIEW_TEXT] => China is the second most important strategic partner for Russia after Germany and the first one in Asian-Pacific region. Russia hardly joins China’s first ten partners in terms of foreign trade cargo turnover since its share doesn’t exceed two percent in the Chinese foreign trade structure.

    [PREVIEW_TEXT_TYPE] => html
    [~PREVIEW_TEXT_TYPE] => html
    [PREVIEW_PICTURE] => 
    [~PREVIEW_PICTURE] => 
    [LANG_DIR] => /
    [~LANG_DIR] => /
    [CODE] => 2772
    [~CODE] => 2772
    [EXTERNAL_ID] => 2772
    [~EXTERNAL_ID] => 2772
    [IBLOCK_TYPE_ID] => info
    [~IBLOCK_TYPE_ID] => info
    [IBLOCK_CODE] => articles_magazines
    [~IBLOCK_CODE] => articles_magazines
    [IBLOCK_EXTERNAL_ID] => 
    [~IBLOCK_EXTERNAL_ID] => 
    [LID] => s1
    [~LID] => s1
    [EDIT_LINK] => 
    [DELETE_LINK] => 
    [DISPLAY_ACTIVE_FROM] => 
    [FIELDS] => Array
        (
        )

    [PROPERTIES] => Array
        (
            [AUTHOR] => Array
                (
                    [ID] => 97
                    [IBLOCK_ID] => 25
                    [NAME] => Автор
                    [ACTIVE] => Y
                    [SORT] => 400
                    [CODE] => AUTHOR
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => Y
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107724:97
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [AUTHOR_PHOTO] => Array
                (
                    [ID] => 108
                    [IBLOCK_ID] => 25
                    [NAME] => Автор фото
                    [ACTIVE] => Y
                    [SORT] => 410
                    [CODE] => AUTHOR_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор фото
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107724:108
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [ISSUE] => Array
                (
                    [ID] => 93
                    [IBLOCK_ID] => 25
                    [NAME] => Выпуск
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ISSUE
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => E
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => Y
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Выпуск
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 105208
                    [PROPERTY_VALUE_ID] => 107724:93
                    [DESCRIPTION] => 
                    [~VALUE] => 105208
                    [~DESCRIPTION] => 
                )

            [BLOG_POST_ID] => Array
                (
                    [ID] => 94
                    [IBLOCK_ID] => 25
                    [NAME] => ID поста блога для комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_POST_ID
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => ID поста блога для комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107724:94
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [BLOG_COMMENTS_CNT] => Array
                (
                    [ID] => 95
                    [IBLOCK_ID] => 25
                    [NAME] => Количество комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_COMMENTS_CNT
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Количество комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107724:95
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [MORE_PHOTO] => Array
                (
                    [ID] => 98
                    [IBLOCK_ID] => 25
                    [NAME] => Дополнительные фотографии
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => MORE_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => Y
                    [XML_ID] => 
                    [FILE_TYPE] => jpg, gif, bmp, png, jpeg
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Дополнительные фотографии
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [PUBLIC_ACCESS] => Array
                (
                    [ID] => 110
                    [IBLOCK_ID] => 25
                    [NAME] => Открытый доступ
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => PUBLIC_ACCESS
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => L
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => C
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Открытый доступ
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107724:110
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                    [VALUE_ENUM_ID] => 
                )

            [ATTACHED_PDF] => Array
                (
                    [ID] => 324
                    [IBLOCK_ID] => 25
                    [NAME] => Прикрепленный PDF
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ATTACHED_PDF
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => pdf
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Прикрепленный PDF
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107724:324
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

        )

    [DISPLAY_PROPERTIES] => Array
        (
        )

    [IPROPERTY_VALUES] => Array
        (
            [SECTION_META_TITLE] => Cooperation of High-Level but Low Efficiency
            [SECTION_META_KEYWORDS] => cooperation of high-level but low efficiency
            [SECTION_META_DESCRIPTION] => China is the second most important strategic partner for Russia after Germany and the first one in Asian-Pacific region. Russia hardly joins China’s first ten partners in terms of foreign trade cargo turnover since its share doesn’t exceed two percent in the Chinese foreign trade structure.<BR>
            [ELEMENT_META_TITLE] => Cooperation of High-Level but Low Efficiency
            [ELEMENT_META_KEYWORDS] => cooperation of high-level but low efficiency
            [ELEMENT_META_DESCRIPTION] => China is the second most important strategic partner for Russia after Germany and the first one in Asian-Pacific region. Russia hardly joins China’s first ten partners in terms of foreign trade cargo turnover since its share doesn’t exceed two percent in the Chinese foreign trade structure.<BR>
            [SECTION_PICTURE_FILE_ALT] => Cooperation of High-Level but Low Efficiency
            [SECTION_PICTURE_FILE_TITLE] => Cooperation of High-Level but Low Efficiency
            [SECTION_DETAIL_PICTURE_FILE_ALT] => Cooperation of High-Level but Low Efficiency
            [SECTION_DETAIL_PICTURE_FILE_TITLE] => Cooperation of High-Level but Low Efficiency
            [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => Cooperation of High-Level but Low Efficiency
            [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => Cooperation of High-Level but Low Efficiency
            [ELEMENT_DETAIL_PICTURE_FILE_ALT] => Cooperation of High-Level but Low Efficiency
            [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => Cooperation of High-Level but Low Efficiency
        )

)

									Array
(
    [ID] => 107724
    [~ID] => 107724
    [IBLOCK_ID] => 25
    [~IBLOCK_ID] => 25
    [IBLOCK_SECTION_ID] => 1443
    [~IBLOCK_SECTION_ID] => 1443
    [NAME] => Cooperation of High-Level but Low Efficiency
    [~NAME] => Cooperation of High-Level but Low Efficiency
    [ACTIVE_FROM_X] => 
    [~ACTIVE_FROM_X] => 
    [ACTIVE_FROM] => 
    [~ACTIVE_FROM] => 
    [TIMESTAMP_X] => 24.10.2016 17:13:43
    [~TIMESTAMP_X] => 24.10.2016 17:13:43
    [DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2772/
    [~DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2772/
    [LIST_PAGE_URL] => /info/index.php?ID=25
    [~LIST_PAGE_URL] => /info/index.php?ID=25
    [DETAIL_TEXT] => 

Why does trade turnover grow?

In modern history a new start for Russia and China’s interaction occurred at the beginning of the new millennium. If in the 1990-ies their trade turnover didn’t exceed USD 6—7 bln annually, then starting from 2000 it began to grow intensively by 30% per year and in 2005 exceeded USD 29 bln (+37.3% year-on-year). On the one hand, it is impressive dynamics, on the other, the structure of this foreign trade isn’t favourable for our country, as a major increase can be made at the expense of raw material deliveries boost. 

In 2004, during his official visit to China, the RF President Vladimir Putin defined the aim of further cooperation between Moscow and China in terms of achieving a trade turnover of USD 60 bln by 2010 and optimizing its structure. Special attention should be paid to promoting cooperation in the nuclear sector and machine building production on both countries markets, as well as increasing hi-technologies production share. However, if the task of reaching the trade turnover level of 60 bln (due to current dynamics) seems to be quite realistic, the second task of changing the nature of Russian export, according to the most optimistic experts, is a difficult thing to do. 

Thus, according to the Ministry of Economic  Development and Trade of Russia, in 2005 Russian export to China grew by 31% and reached the level of USD 15.9 bln; import made USD 13.7 bln (+45.2%). At the same time the black ink of trade turnover was 11.5% down year-on-year and made about USD 2.7 bln. However, it should be noted that Russia managed to jump from the tenth to the ninth place of China’s key-partners after the US, Japan, Hong Kong, Korean Republic, Taiwan, Germany, Singapore and Malaysia. 

The results of the first five months of 2006 still demonstrate high dynamics of trade turnover (+21.6% year-on-year); on the other hand, many questions arise. Thus, Russia’s share in aggregate trade turnover of China decreased by 1.88%; export from our country to the Chinese People’s Republic grew by 16.2%, having reached USD 7.12 bln, though import grew by 30.3% (over USD 5 bln) and black ink amounted to USD 2.14 bln with the negative dynamics of 7.2%. The reason for this situation lies in Russian raw material export growth against the growing share of Chinese import-production of high value added. According to the Ministry of Trade and Economic Development, in 2004 the share of such production as mineral fuel, timber, fertilizers, fish and sea products, ferrous and non-ferrous metals, cellulose and ore made 84.2%; in 2005 this was 88.7%, and during the period from January to May of 2006 – 90%.

At the same time, such position as «machinery and equipment» takes only 2.1%: this is two-fold down compared to the results achieved in 2000 and last year, and by 14, 10 and 6 times down compared to the results of 2001, 2002 and 2003 respectively. It should be noted that the period from 2001 to 2003 was characterized by the highest rates of Chinese economic growth when it focused on steel industry development: simultaneously with raw materials – ferrous metals, ore and coal – China purchased industrial equipment. This is why «having built» the Chinese metallurgic complex, Russia now performs as its raw material appendage. 

At the same time, machinery and equipment are permanently expanding in the Chinese import. If in 2004 its share in import flow from China was 17.2%, in 2005 it made 20.1%. During the period from January to May this year, the share of machinery and equipment reached 26.5% (USD 1.37 bln, +63.8% year-on-year). The most intensively developing positions include transport vehicles, the import volume of which grew two-fold compared to 2004, and according to the results achieved in the first five months of 2006 – two-fold year-on-year. Import of electronics, communication equipment and domestic appliances grew by 50%.



Raw appendage of China?

The major position for the Russian export to China is still fuel-energy raw materials, such as coal, oil and products. This position shows the most stable growth. Thus, in 2005 its share in aggregate export structure was 41.3% (against 34.5% in 2004). In the first half of 2006 it reached 53%. 

Crude oil export is growing rapidly: in 2005 deliveries boosted by 18.6% (12.7 mln tons), and in USD equivalent grew by 68.8% (almost 5 bln). At the same time, in December 2005 crude oil export grew two-fold year-on-year. Speaking of crude oil, Russia joins the first five suppliers to the Chinese market. In China’s aggregate import Russia’s crude oil took over 10% (126.8 mln tons) against 8.8% in 2004. Saudi Arabia supplied 17.5%; 13.8% and 11.3% are the shares of Angola and Iran, while Oman supplies 8.5%.

This tendency remains the same this year. From January to May crude oil deliveries from Russia to China amounted to 6.4 mln tons (+35.5% year-on-year), which is 80% more in terms of financial results (USD 2.93 bln). Russia’s share of crude oil in the aggregate import of China exceeded 10.5%.

The second position of the Russian export belongs to timber and timber logs. In 2005 its share totaled to 11.3%. During the period of the first five months it reached almost 14%. In fact, if in 2004 some 17.6 mln cubic meters of timber was supplied to China (including 16.9 mln cubic meters of unprocessed timber), in 2005 the export volume of this corgo exceeded 21.1 mln cubic meters with the increase of 19%. In Q1 2006 the export boost amounted to 28.4% (having reached the level of 6.09 mln cubic meters, 95.6% of which took timber logs). At the same time, it is quite significant that the Russian timber share in the structure of the whole Chinese import is 75.2%.

One more sad specific of Russian timber deliveries to China is a clear contradiction between supply volumes achieved and their cost. Thus, in 2004 having accounted for 64.25% in the structure of aggregate Chinese import of timber, while priceworthy the Russian production took only 27.6%. Although in 2005 the Russian timber supplies cost grew by 25%, the same gap still remains today and makes 61%.

According to experts, when purchasing timber in Russia, Chinese companies prefer to import raw material, since prices for sawn-timber in China are unstable. In this situation Chinese companies negotiating with their Russian partners try to decrease risks as much as possible but at the expense of the Russian side. At the same time Russian companies doing business with China point out the following: considering the fact that the majority of cargo is exported to China from the Russian Far East, China has the chance to control prices for timber fluctuation. If an active demand for timber arises from the Japanese side, which is ready to offer world market prices, the Chinese also purchase timber within this price rate. When the Japanese market is full, China, using its position as a non-alternative consumer, can make purchase prices fall causing great trouble to the Russian manufactures. The third position in the structure of the Russian export is ferrous metals. During recent years their share fluctuated, however insignificantly and on average it made 11%. Today the situation has changed totally. As was said above, if earlier, in the period of its intensive development, China was interested in the purchase of Russian ferrous metals to develop domestic machine engineering, now there is no such necessity any longer which has influenced greatly the volumes of ferrous metallurgy production. According to the results of Q1 2006, the share of ferrous metals in the aggregate export of Russia to China made only 3.1%. 



Russian hospitability or Chinese expansion?

Nevertheless, the RF Government is optimistic and declares prospects of the trade turnover growing two-fold within the next five years. At the same time, one of the key issues concerns implementation of joint investment projects. This is the reason why Russia actively participates in specialized exhibitions and forums. Thus, last year it was 16th Harbin exhibition where the unified exposition of exhibiting stalls of enterprises and companies from 26 regions of Russia was represented. Over 70 investment projects for such areas as mineral deposit development, timber processing, communication and telecommunication, agriculture, transport infrastructure etc. were promoted. A similar event was the 2nd Russian-Chinese investment forum where some significant contracts worth USD 700 mln were signed.  In general, according to the Ministry of Commerce of Chinese People’s Republic during 2005 there were concluded 82 new investment projects on the territory of the Russian Federation (in 2004 there were 52). Thus, the total number of projects implemented in Russia with Chinese capital participation reached 657. The volume of Chinese investment last year made USD 320 mln, twice more than in 2004. The overall sum of Chinese contractual investment amounts to USD 977 mln. At the same time in Q1 2006 investment volume from China to Russia made USD 280 mln. 

According to experts of the RF Ministry of Economic Development and Trade, the increase of the Russian stock flowing to the Chinese economy can be observed. Russian investment volumes are practically equal to the Chinese investment in Russia.  According to the Ministry of Commerce of China, in 2005 the state gave permission to implement 162 projects with the Russian investment share worth USD 298 mln; the sum of investment used in reality made USD 81.9 mln. In general, Russian investment activities in China are characterized by the following data: total number of approved projects – 1849, volume of contractual investment – USD 1.4 bln. The aggregate sum of practically involved funds amounts to USD 541 mln.  Speaking of the basic areas where the Russian investors take active steps, they are: processing industry, including agriculture production processing, chemical goods manufacture, raw materials processing, transport machinery production, and transport services. Moreover, experts register a boost of interest on behalf of the biggest Russian companies (ОАО Severstal and ОАО Rusal) to both direct and portfolio investment into China’s industrial objects.

As a result the Russian government officials are optimistic and ready to consider projects of strengthening the cooperation within the framework of the newly launched coordination centers, specialized centers of investors’ support, advertising campaigns on the Chinese territory etc. However, can it really change the situation and solve the current problems? We can’t be sure.

The problem is even considering the fact of mutual agreements between the two countries’ heads on cooperation and probability of attraction of more and more Chinese investment into the Russian industry (about USD 12 bln until 2020), experts-realists say there won’t be any serious changes. China invests into the construction of its own enterprises on the territory of the RF, not into the RF development. 

The brightest example can be observed in the timber industry. China is ready to invest into factories construction only under condition of their being close to raw material bases and border crossings. About 40 Chinese companies are working in the Far East region of Russia now. Annually they produce about 1.14 bln tons of wood and process the same amount of raw material. China aims at production level of 5 mln cubic meters per year. Remembering the fact that China doesn’t destroy its own forests and, on the opposite, invests into forestry (USD 11.6 bln by 2010), then the answer to the question whether Russia performs as a raw material appendage for China is quite simple. That is why the next question arises, namely whether the declared raw-materials dependence of China is a real dependence or a strategically planned policy of Beijing? 

Moreover, Chinese companies presence on the Russian territory doesn’t assist in Russia’s own population employment. The Chinese work for China, and the Chinese work for Russia! According to the Ministry of Trade and Economic Development, in 2005 labour and construction contracts with China amounted to USD 660 mln. Last year, to perform contractual obligations on the territory of the Russian Federation, over 18 thousand of Chinese citizens lived in Russia (in 2004 this number amounted to 14.7 thousand people). It should be mentioned that they are employed not in the lowest-paid positions…



ZlATA  YASENEVA
    [~DETAIL_TEXT] => 

Why does trade turnover grow?

In modern history a new start for Russia and China’s interaction occurred at the beginning of the new millennium. If in the 1990-ies their trade turnover didn’t exceed USD 6—7 bln annually, then starting from 2000 it began to grow intensively by 30% per year and in 2005 exceeded USD 29 bln (+37.3% year-on-year). On the one hand, it is impressive dynamics, on the other, the structure of this foreign trade isn’t favourable for our country, as a major increase can be made at the expense of raw material deliveries boost. 

In 2004, during his official visit to China, the RF President Vladimir Putin defined the aim of further cooperation between Moscow and China in terms of achieving a trade turnover of USD 60 bln by 2010 and optimizing its structure. Special attention should be paid to promoting cooperation in the nuclear sector and machine building production on both countries markets, as well as increasing hi-technologies production share. However, if the task of reaching the trade turnover level of 60 bln (due to current dynamics) seems to be quite realistic, the second task of changing the nature of Russian export, according to the most optimistic experts, is a difficult thing to do. 

Thus, according to the Ministry of Economic  Development and Trade of Russia, in 2005 Russian export to China grew by 31% and reached the level of USD 15.9 bln; import made USD 13.7 bln (+45.2%). At the same time the black ink of trade turnover was 11.5% down year-on-year and made about USD 2.7 bln. However, it should be noted that Russia managed to jump from the tenth to the ninth place of China’s key-partners after the US, Japan, Hong Kong, Korean Republic, Taiwan, Germany, Singapore and Malaysia. 

The results of the first five months of 2006 still demonstrate high dynamics of trade turnover (+21.6% year-on-year); on the other hand, many questions arise. Thus, Russia’s share in aggregate trade turnover of China decreased by 1.88%; export from our country to the Chinese People’s Republic grew by 16.2%, having reached USD 7.12 bln, though import grew by 30.3% (over USD 5 bln) and black ink amounted to USD 2.14 bln with the negative dynamics of 7.2%. The reason for this situation lies in Russian raw material export growth against the growing share of Chinese import-production of high value added. According to the Ministry of Trade and Economic Development, in 2004 the share of such production as mineral fuel, timber, fertilizers, fish and sea products, ferrous and non-ferrous metals, cellulose and ore made 84.2%; in 2005 this was 88.7%, and during the period from January to May of 2006 – 90%.

At the same time, such position as «machinery and equipment» takes only 2.1%: this is two-fold down compared to the results achieved in 2000 and last year, and by 14, 10 and 6 times down compared to the results of 2001, 2002 and 2003 respectively. It should be noted that the period from 2001 to 2003 was characterized by the highest rates of Chinese economic growth when it focused on steel industry development: simultaneously with raw materials – ferrous metals, ore and coal – China purchased industrial equipment. This is why «having built» the Chinese metallurgic complex, Russia now performs as its raw material appendage. 

At the same time, machinery and equipment are permanently expanding in the Chinese import. If in 2004 its share in import flow from China was 17.2%, in 2005 it made 20.1%. During the period from January to May this year, the share of machinery and equipment reached 26.5% (USD 1.37 bln, +63.8% year-on-year). The most intensively developing positions include transport vehicles, the import volume of which grew two-fold compared to 2004, and according to the results achieved in the first five months of 2006 – two-fold year-on-year. Import of electronics, communication equipment and domestic appliances grew by 50%.



Raw appendage of China?

The major position for the Russian export to China is still fuel-energy raw materials, such as coal, oil and products. This position shows the most stable growth. Thus, in 2005 its share in aggregate export structure was 41.3% (against 34.5% in 2004). In the first half of 2006 it reached 53%. 

Crude oil export is growing rapidly: in 2005 deliveries boosted by 18.6% (12.7 mln tons), and in USD equivalent grew by 68.8% (almost 5 bln). At the same time, in December 2005 crude oil export grew two-fold year-on-year. Speaking of crude oil, Russia joins the first five suppliers to the Chinese market. In China’s aggregate import Russia’s crude oil took over 10% (126.8 mln tons) against 8.8% in 2004. Saudi Arabia supplied 17.5%; 13.8% and 11.3% are the shares of Angola and Iran, while Oman supplies 8.5%.

This tendency remains the same this year. From January to May crude oil deliveries from Russia to China amounted to 6.4 mln tons (+35.5% year-on-year), which is 80% more in terms of financial results (USD 2.93 bln). Russia’s share of crude oil in the aggregate import of China exceeded 10.5%.

The second position of the Russian export belongs to timber and timber logs. In 2005 its share totaled to 11.3%. During the period of the first five months it reached almost 14%. In fact, if in 2004 some 17.6 mln cubic meters of timber was supplied to China (including 16.9 mln cubic meters of unprocessed timber), in 2005 the export volume of this corgo exceeded 21.1 mln cubic meters with the increase of 19%. In Q1 2006 the export boost amounted to 28.4% (having reached the level of 6.09 mln cubic meters, 95.6% of which took timber logs). At the same time, it is quite significant that the Russian timber share in the structure of the whole Chinese import is 75.2%.

One more sad specific of Russian timber deliveries to China is a clear contradiction between supply volumes achieved and their cost. Thus, in 2004 having accounted for 64.25% in the structure of aggregate Chinese import of timber, while priceworthy the Russian production took only 27.6%. Although in 2005 the Russian timber supplies cost grew by 25%, the same gap still remains today and makes 61%.

According to experts, when purchasing timber in Russia, Chinese companies prefer to import raw material, since prices for sawn-timber in China are unstable. In this situation Chinese companies negotiating with their Russian partners try to decrease risks as much as possible but at the expense of the Russian side. At the same time Russian companies doing business with China point out the following: considering the fact that the majority of cargo is exported to China from the Russian Far East, China has the chance to control prices for timber fluctuation. If an active demand for timber arises from the Japanese side, which is ready to offer world market prices, the Chinese also purchase timber within this price rate. When the Japanese market is full, China, using its position as a non-alternative consumer, can make purchase prices fall causing great trouble to the Russian manufactures. The third position in the structure of the Russian export is ferrous metals. During recent years their share fluctuated, however insignificantly and on average it made 11%. Today the situation has changed totally. As was said above, if earlier, in the period of its intensive development, China was interested in the purchase of Russian ferrous metals to develop domestic machine engineering, now there is no such necessity any longer which has influenced greatly the volumes of ferrous metallurgy production. According to the results of Q1 2006, the share of ferrous metals in the aggregate export of Russia to China made only 3.1%. 



Russian hospitability or Chinese expansion?

Nevertheless, the RF Government is optimistic and declares prospects of the trade turnover growing two-fold within the next five years. At the same time, one of the key issues concerns implementation of joint investment projects. This is the reason why Russia actively participates in specialized exhibitions and forums. Thus, last year it was 16th Harbin exhibition where the unified exposition of exhibiting stalls of enterprises and companies from 26 regions of Russia was represented. Over 70 investment projects for such areas as mineral deposit development, timber processing, communication and telecommunication, agriculture, transport infrastructure etc. were promoted. A similar event was the 2nd Russian-Chinese investment forum where some significant contracts worth USD 700 mln were signed.  In general, according to the Ministry of Commerce of Chinese People’s Republic during 2005 there were concluded 82 new investment projects on the territory of the Russian Federation (in 2004 there were 52). Thus, the total number of projects implemented in Russia with Chinese capital participation reached 657. The volume of Chinese investment last year made USD 320 mln, twice more than in 2004. The overall sum of Chinese contractual investment amounts to USD 977 mln. At the same time in Q1 2006 investment volume from China to Russia made USD 280 mln. 

According to experts of the RF Ministry of Economic Development and Trade, the increase of the Russian stock flowing to the Chinese economy can be observed. Russian investment volumes are practically equal to the Chinese investment in Russia.  According to the Ministry of Commerce of China, in 2005 the state gave permission to implement 162 projects with the Russian investment share worth USD 298 mln; the sum of investment used in reality made USD 81.9 mln. In general, Russian investment activities in China are characterized by the following data: total number of approved projects – 1849, volume of contractual investment – USD 1.4 bln. The aggregate sum of practically involved funds amounts to USD 541 mln.  Speaking of the basic areas where the Russian investors take active steps, they are: processing industry, including agriculture production processing, chemical goods manufacture, raw materials processing, transport machinery production, and transport services. Moreover, experts register a boost of interest on behalf of the biggest Russian companies (ОАО Severstal and ОАО Rusal) to both direct and portfolio investment into China’s industrial objects.

As a result the Russian government officials are optimistic and ready to consider projects of strengthening the cooperation within the framework of the newly launched coordination centers, specialized centers of investors’ support, advertising campaigns on the Chinese territory etc. However, can it really change the situation and solve the current problems? We can’t be sure.

The problem is even considering the fact of mutual agreements between the two countries’ heads on cooperation and probability of attraction of more and more Chinese investment into the Russian industry (about USD 12 bln until 2020), experts-realists say there won’t be any serious changes. China invests into the construction of its own enterprises on the territory of the RF, not into the RF development. 

The brightest example can be observed in the timber industry. China is ready to invest into factories construction only under condition of their being close to raw material bases and border crossings. About 40 Chinese companies are working in the Far East region of Russia now. Annually they produce about 1.14 bln tons of wood and process the same amount of raw material. China aims at production level of 5 mln cubic meters per year. Remembering the fact that China doesn’t destroy its own forests and, on the opposite, invests into forestry (USD 11.6 bln by 2010), then the answer to the question whether Russia performs as a raw material appendage for China is quite simple. That is why the next question arises, namely whether the declared raw-materials dependence of China is a real dependence or a strategically planned policy of Beijing? 

Moreover, Chinese companies presence on the Russian territory doesn’t assist in Russia’s own population employment. The Chinese work for China, and the Chinese work for Russia! According to the Ministry of Trade and Economic Development, in 2005 labour and construction contracts with China amounted to USD 660 mln. Last year, to perform contractual obligations on the territory of the Russian Federation, over 18 thousand of Chinese citizens lived in Russia (in 2004 this number amounted to 14.7 thousand people). It should be mentioned that they are employed not in the lowest-paid positions…



ZlATA  YASENEVA
    [DETAIL_TEXT_TYPE] => html
    [~DETAIL_TEXT_TYPE] => html
    [PREVIEW_TEXT] => China is the second most important strategic partner for Russia after Germany and the first one in Asian-Pacific region. Russia hardly joins China’s first ten partners in terms of foreign trade cargo turnover since its share doesn’t exceed two percent in the Chinese foreign trade structure.

    [~PREVIEW_TEXT] => China is the second most important strategic partner for Russia after Germany and the first one in Asian-Pacific region. Russia hardly joins China’s first ten partners in terms of foreign trade cargo turnover since its share doesn’t exceed two percent in the Chinese foreign trade structure.

    [PREVIEW_TEXT_TYPE] => html
    [~PREVIEW_TEXT_TYPE] => html
    [PREVIEW_PICTURE] => 
    [~PREVIEW_PICTURE] => 
    [LANG_DIR] => /
    [~LANG_DIR] => /
    [CODE] => 2772
    [~CODE] => 2772
    [EXTERNAL_ID] => 2772
    [~EXTERNAL_ID] => 2772
    [IBLOCK_TYPE_ID] => info
    [~IBLOCK_TYPE_ID] => info
    [IBLOCK_CODE] => articles_magazines
    [~IBLOCK_CODE] => articles_magazines
    [IBLOCK_EXTERNAL_ID] => 
    [~IBLOCK_EXTERNAL_ID] => 
    [LID] => s1
    [~LID] => s1
    [EDIT_LINK] => 
    [DELETE_LINK] => 
    [DISPLAY_ACTIVE_FROM] => 
    [FIELDS] => Array
        (
        )

    [PROPERTIES] => Array
        (
            [AUTHOR] => Array
                (
                    [ID] => 97
                    [IBLOCK_ID] => 25
                    [NAME] => Автор
                    [ACTIVE] => Y
                    [SORT] => 400
                    [CODE] => AUTHOR
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => Y
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107724:97
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [AUTHOR_PHOTO] => Array
                (
                    [ID] => 108
                    [IBLOCK_ID] => 25
                    [NAME] => Автор фото
                    [ACTIVE] => Y
                    [SORT] => 410
                    [CODE] => AUTHOR_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор фото
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107724:108
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [ISSUE] => Array
                (
                    [ID] => 93
                    [IBLOCK_ID] => 25
                    [NAME] => Выпуск
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ISSUE
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => E
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => Y
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Выпуск
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 105208
                    [PROPERTY_VALUE_ID] => 107724:93
                    [DESCRIPTION] => 
                    [~VALUE] => 105208
                    [~DESCRIPTION] => 
                )

            [BLOG_POST_ID] => Array
                (
                    [ID] => 94
                    [IBLOCK_ID] => 25
                    [NAME] => ID поста блога для комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_POST_ID
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => ID поста блога для комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107724:94
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [BLOG_COMMENTS_CNT] => Array
                (
                    [ID] => 95
                    [IBLOCK_ID] => 25
                    [NAME] => Количество комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_COMMENTS_CNT
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Количество комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107724:95
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [MORE_PHOTO] => Array
                (
                    [ID] => 98
                    [IBLOCK_ID] => 25
                    [NAME] => Дополнительные фотографии
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => MORE_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => Y
                    [XML_ID] => 
                    [FILE_TYPE] => jpg, gif, bmp, png, jpeg
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Дополнительные фотографии
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [PUBLIC_ACCESS] => Array
                (
                    [ID] => 110
                    [IBLOCK_ID] => 25
                    [NAME] => Открытый доступ
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => PUBLIC_ACCESS
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => L
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => C
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Открытый доступ
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107724:110
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                    [VALUE_ENUM_ID] => 
                )

            [ATTACHED_PDF] => Array
                (
                    [ID] => 324
                    [IBLOCK_ID] => 25
                    [NAME] => Прикрепленный PDF
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ATTACHED_PDF
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => pdf
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Прикрепленный PDF
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107724:324
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

        )

    [DISPLAY_PROPERTIES] => Array
        (
        )

    [IPROPERTY_VALUES] => Array
        (
            [SECTION_META_TITLE] => Cooperation of High-Level but Low Efficiency
            [SECTION_META_KEYWORDS] => cooperation of high-level but low efficiency
            [SECTION_META_DESCRIPTION] => China is the second most important strategic partner for Russia after Germany and the first one in Asian-Pacific region. Russia hardly joins China’s first ten partners in terms of foreign trade cargo turnover since its share doesn’t exceed two percent in the Chinese foreign trade structure.<BR>
            [ELEMENT_META_TITLE] => Cooperation of High-Level but Low Efficiency
            [ELEMENT_META_KEYWORDS] => cooperation of high-level but low efficiency
            [ELEMENT_META_DESCRIPTION] => China is the second most important strategic partner for Russia after Germany and the first one in Asian-Pacific region. Russia hardly joins China’s first ten partners in terms of foreign trade cargo turnover since its share doesn’t exceed two percent in the Chinese foreign trade structure.<BR>
            [SECTION_PICTURE_FILE_ALT] => Cooperation of High-Level but Low Efficiency
            [SECTION_PICTURE_FILE_TITLE] => Cooperation of High-Level but Low Efficiency
            [SECTION_DETAIL_PICTURE_FILE_ALT] => Cooperation of High-Level but Low Efficiency
            [SECTION_DETAIL_PICTURE_FILE_TITLE] => Cooperation of High-Level but Low Efficiency
            [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => Cooperation of High-Level but Low Efficiency
            [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => Cooperation of High-Level but Low Efficiency
            [ELEMENT_DETAIL_PICTURE_FILE_ALT] => Cooperation of High-Level but Low Efficiency
            [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => Cooperation of High-Level but Low Efficiency
        )

)
								

Array
(
    [ID] => 107723
    [~ID] => 107723
    [IBLOCK_ID] => 25
    [~IBLOCK_ID] => 25
    [IBLOCK_SECTION_ID] => 1443
    [~IBLOCK_SECTION_ID] => 1443
    [NAME] => A New Leader
    [~NAME] => A New Leader
    [ACTIVE_FROM_X] => 
    [~ACTIVE_FROM_X] => 
    [ACTIVE_FROM] => 
    [~ACTIVE_FROM] => 
    [TIMESTAMP_X] => 24.10.2016 17:13:42
    [~TIMESTAMP_X] => 24.10.2016 17:13:42
    [DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2771/
    [~DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2771/
    [LIST_PAGE_URL] => /info/index.php?ID=25
    [~LIST_PAGE_URL] => /info/index.php?ID=25
    [DETAIL_TEXT] => 

RULES OF SUCCESS

China is the third largest state in the world. Its area is over 9.6 million square kilometers; the population is over 1.3 billion people. The People’s Republic of China has 23 provinces, 5 autonomous regions, 4 centrally administered municipalities and 2 special administrative regions. China, whose economy is mainly based on public property and developing in accordance with the plan, is a large industrial state: according to the total volume of industrial production, it occupies the fourth place in the world, and has become the leader according to the amount of enterprises. 

There are three economic zones in China. The Eastern (coastal) zone is the most developed from the economic standpoint. Most industrial centers and free economic zones, sea ports, offices of large international companies are located there. In the Central zone production of fuel, energy, chemicals, raw materials, semi-finished products, foodstuffs etc. plays the leading role. Agriculture, cattle breeding, mineral raw materials processing prevail in the Western zone.

In spite of the high ratio of economic growth and the increase of China’s share in the world industrial production, its GDP production per head and labour productivity level is much lower than in developed countries. However, experts believe that this will not prevent China from becoming one of the leading world countries and influencing the world economy.

Starting from the beginning of the 1990s, the Government of China switched its policy from the closed society to the open one, in order to increase the flow of foreign capital to the state for modernization and industrial production development. The geographic closeness of Hong Kong, with its developed financial sphere and strong commercial ties, was the main advantage for foreign companies that started to place labour-intensive assembling works, oriented at export, in China. At the same time, four special economic zones (Shanghai, Zhuhai, Shantou and Haikou) were established by the Chinese Government to stimulate investment flows. Direct investments from Hong Kong, Taiwan and the USA were re-oriented to the zones.    

As a result, by the middle of the 1980s, 32 coastal towns and ports were opened for foreign investments. Western investors got an opportunity to access the large Chinese markets and territories with a large amount of labour force, qualified technical stuff and developed infrastructure. Starting from 1992, measures were taken to liberalize services sphere and to create prerequisites to join the WTO. As a result, foreign investors got an access to such sectors of Chinese economy as real estate, telecommunications, transport infrastructure, retail, insurance, accounting services etc, inaccessible for them earlier. At the same time, the launch of joint-stock companies, where foreign partners have 22%-50% shareholding and provide the enterprise with equipment, technologies and funding, while the Chinese side provides the infrastructure, labour resources and local contacts, is a characteristic feature of China. Lately, the amount of companies with 100% foreign capital has been increasing. Earlier it was permitted to establish such companies only in free economic zones; nowadays the limitation has been abolished. The law protects such enterprises from nationalization and expropriation, if they do not damage the social and state interests of China. In early 1995, the Chinese Government approved the law allowing foreign companies to establish holding companies. To do it, it is necessary to meet the following requirements: the company must have a stable financial position, own assets for the sum of no less than USD 400 million, and have worked in China for a long time; it should own a consolidated capital of at least USD 10 million; and it must have an approval for carrying out at least three investment projects in the People’s Republic of China.  

Nowadays, China uses different stimuli to attract foreign investments: tax preferences, privileged import tariffs, and simplified rules of hiring and dismissing foreign staff. Besides, if in a separate region the volume of foreign investments is lower than the level set for the country, the regional authorities can implement special stimulating measures to attract them. Summing up all the facts mentioned above, the Chinese economy’s priority is import substitution and export orientation of production, and the authorities of China make a stake on evolutional methods of reforming and flexible balancing to protect interests of different groups. The state control keeps the processes stable.



ALL FLAGS WELCOME

The correctness of the economic and foreign policies, approved over 20 years ago is confirmed again and again. In 1978-2005, the average annual growth of China’s foreign commerce amounted to 15.2%, and the commodity turnover increased from USD 20.6 billion in 1978 to USD 1.42 trillion nowadays. The average annual growth of GDP was about 9%. Analysts forecast that the country’s GDP will increase by 9.5% this year.

Meanwhile, it is necessary to mention the permanent increase of foreign capital attracted to the economy of China. According to some estimations, the flow of additional funds amounted to USD 60 billion in 2005 (the largest figure in the world); as a result, the real use of foreign capital in China made USD 500 billion. Nowadays, there are about 700 centers engaged in research and development of foreign investments in the country. Mainly they work in the sectors of electronics, processing industry and data communications equipment. Incidentally, the volume of value added produce increased by 26% year-on-year in 2005, and its export grew by 34%. In Chinese export the dominating operations are connected with commission processing and assembling. In 2005 they made about 55% of the total export volume. The share of such operations in import is also increasing (in 2005, it made 41.5% of the total volume). 

At the same time, one of the most important targets of the foreign commerce of the People’s Republic of China is purchase of machinery and technologies. According to experts’ estimations, due to import of high technologies, industrial production grew by 60% in China last year, and about 8,000 new types of products were put on the market. Meanwhile, the share of finished produce in the Chinese export grew up to two thirds. The main trade partners of China are the European Union, the USA and Japan. Incidentally, Russia takes only the 7th place in the rating.

Naturally, by now China has demonstrated the fastest ratio of economy transformation in the modern history. However, there is a reverse side of the medal. Analysts believe that such high ratio of economic development can lead to an overheating of some sectors, which can negatively influence the world’s economic balance. To cool the economy, Chinese authorities can put into operation limitations on investments and credits. In spite of the forecast of the experts of the World Bank at the beginning of 2006 that the Chinese economy growth would make 9.2%, in Q1 of 2006 it amounted to 10.2%. At the same time, the Chinese State Information Center claimed that in Q2 the growth would reduce to 9.8%. Some independent analysts believe that the figure is underestimated and the growth would make 11-12%. As a result, the Government of China has already called upon to increase the discount rate to stop the abrupt rise of prices for real estate. In its turn, the World Bank has announced the necessity of reducing credits given to high-risk sectors of economy, including real estate. 

At the same time, the inflation is to be kept under control, and the growth of consumer prices is to slow down. 

Meanwhile, Chinese experts offer to reduce the state’s exchange reserves, which have been growing too fast lately due to the positive balance of foreign trade and an inflow of foreign investments. Thus, at the end of March of 2006, China’s exchange reserves reached the highest figure in the world - USD 875.1 billion. Economists forecast that by the end of the year the figure may rise to a trillion. 

Besides, China has started to lack raw materials and energy to provide a further stick-slip expansion of its economy. Chinese experts forecast that by 2020 China’s dependence on import of raw materials and semi-finished products may increase significantly: its dependence on oil may grow to 58%, on iron ore - to 52%, on manganese ore - to 38% etc.



TATYANA  TOKAREVA
    [~DETAIL_TEXT] => 

RULES OF SUCCESS

China is the third largest state in the world. Its area is over 9.6 million square kilometers; the population is over 1.3 billion people. The People’s Republic of China has 23 provinces, 5 autonomous regions, 4 centrally administered municipalities and 2 special administrative regions. China, whose economy is mainly based on public property and developing in accordance with the plan, is a large industrial state: according to the total volume of industrial production, it occupies the fourth place in the world, and has become the leader according to the amount of enterprises. 

There are three economic zones in China. The Eastern (coastal) zone is the most developed from the economic standpoint. Most industrial centers and free economic zones, sea ports, offices of large international companies are located there. In the Central zone production of fuel, energy, chemicals, raw materials, semi-finished products, foodstuffs etc. plays the leading role. Agriculture, cattle breeding, mineral raw materials processing prevail in the Western zone.

In spite of the high ratio of economic growth and the increase of China’s share in the world industrial production, its GDP production per head and labour productivity level is much lower than in developed countries. However, experts believe that this will not prevent China from becoming one of the leading world countries and influencing the world economy.

Starting from the beginning of the 1990s, the Government of China switched its policy from the closed society to the open one, in order to increase the flow of foreign capital to the state for modernization and industrial production development. The geographic closeness of Hong Kong, with its developed financial sphere and strong commercial ties, was the main advantage for foreign companies that started to place labour-intensive assembling works, oriented at export, in China. At the same time, four special economic zones (Shanghai, Zhuhai, Shantou and Haikou) were established by the Chinese Government to stimulate investment flows. Direct investments from Hong Kong, Taiwan and the USA were re-oriented to the zones.    

As a result, by the middle of the 1980s, 32 coastal towns and ports were opened for foreign investments. Western investors got an opportunity to access the large Chinese markets and territories with a large amount of labour force, qualified technical stuff and developed infrastructure. Starting from 1992, measures were taken to liberalize services sphere and to create prerequisites to join the WTO. As a result, foreign investors got an access to such sectors of Chinese economy as real estate, telecommunications, transport infrastructure, retail, insurance, accounting services etc, inaccessible for them earlier. At the same time, the launch of joint-stock companies, where foreign partners have 22%-50% shareholding and provide the enterprise with equipment, technologies and funding, while the Chinese side provides the infrastructure, labour resources and local contacts, is a characteristic feature of China. Lately, the amount of companies with 100% foreign capital has been increasing. Earlier it was permitted to establish such companies only in free economic zones; nowadays the limitation has been abolished. The law protects such enterprises from nationalization and expropriation, if they do not damage the social and state interests of China. In early 1995, the Chinese Government approved the law allowing foreign companies to establish holding companies. To do it, it is necessary to meet the following requirements: the company must have a stable financial position, own assets for the sum of no less than USD 400 million, and have worked in China for a long time; it should own a consolidated capital of at least USD 10 million; and it must have an approval for carrying out at least three investment projects in the People’s Republic of China.  

Nowadays, China uses different stimuli to attract foreign investments: tax preferences, privileged import tariffs, and simplified rules of hiring and dismissing foreign staff. Besides, if in a separate region the volume of foreign investments is lower than the level set for the country, the regional authorities can implement special stimulating measures to attract them. Summing up all the facts mentioned above, the Chinese economy’s priority is import substitution and export orientation of production, and the authorities of China make a stake on evolutional methods of reforming and flexible balancing to protect interests of different groups. The state control keeps the processes stable.



ALL FLAGS WELCOME

The correctness of the economic and foreign policies, approved over 20 years ago is confirmed again and again. In 1978-2005, the average annual growth of China’s foreign commerce amounted to 15.2%, and the commodity turnover increased from USD 20.6 billion in 1978 to USD 1.42 trillion nowadays. The average annual growth of GDP was about 9%. Analysts forecast that the country’s GDP will increase by 9.5% this year.

Meanwhile, it is necessary to mention the permanent increase of foreign capital attracted to the economy of China. According to some estimations, the flow of additional funds amounted to USD 60 billion in 2005 (the largest figure in the world); as a result, the real use of foreign capital in China made USD 500 billion. Nowadays, there are about 700 centers engaged in research and development of foreign investments in the country. Mainly they work in the sectors of electronics, processing industry and data communications equipment. Incidentally, the volume of value added produce increased by 26% year-on-year in 2005, and its export grew by 34%. In Chinese export the dominating operations are connected with commission processing and assembling. In 2005 they made about 55% of the total export volume. The share of such operations in import is also increasing (in 2005, it made 41.5% of the total volume). 

At the same time, one of the most important targets of the foreign commerce of the People’s Republic of China is purchase of machinery and technologies. According to experts’ estimations, due to import of high technologies, industrial production grew by 60% in China last year, and about 8,000 new types of products were put on the market. Meanwhile, the share of finished produce in the Chinese export grew up to two thirds. The main trade partners of China are the European Union, the USA and Japan. Incidentally, Russia takes only the 7th place in the rating.

Naturally, by now China has demonstrated the fastest ratio of economy transformation in the modern history. However, there is a reverse side of the medal. Analysts believe that such high ratio of economic development can lead to an overheating of some sectors, which can negatively influence the world’s economic balance. To cool the economy, Chinese authorities can put into operation limitations on investments and credits. In spite of the forecast of the experts of the World Bank at the beginning of 2006 that the Chinese economy growth would make 9.2%, in Q1 of 2006 it amounted to 10.2%. At the same time, the Chinese State Information Center claimed that in Q2 the growth would reduce to 9.8%. Some independent analysts believe that the figure is underestimated and the growth would make 11-12%. As a result, the Government of China has already called upon to increase the discount rate to stop the abrupt rise of prices for real estate. In its turn, the World Bank has announced the necessity of reducing credits given to high-risk sectors of economy, including real estate. 

At the same time, the inflation is to be kept under control, and the growth of consumer prices is to slow down. 

Meanwhile, Chinese experts offer to reduce the state’s exchange reserves, which have been growing too fast lately due to the positive balance of foreign trade and an inflow of foreign investments. Thus, at the end of March of 2006, China’s exchange reserves reached the highest figure in the world - USD 875.1 billion. Economists forecast that by the end of the year the figure may rise to a trillion. 

Besides, China has started to lack raw materials and energy to provide a further stick-slip expansion of its economy. Chinese experts forecast that by 2020 China’s dependence on import of raw materials and semi-finished products may increase significantly: its dependence on oil may grow to 58%, on iron ore - to 52%, on manganese ore - to 38% etc.



TATYANA  TOKAREVA
    [DETAIL_TEXT_TYPE] => html
    [~DETAIL_TEXT_TYPE] => html
    [PREVIEW_TEXT] => Russia and China are not only neighbours: the countries closely cooperate in commercial sphere; they even had similar political and economic systems until the dissolution of the USSR. Nowadays, the Russian economy is moving towards the market type, while the Chinese policy is based on the social market economy and the idea of a "complex state power", which, as the official Beijing claims, unites an open economy and a high level of production potential with available mechanisms of administrative-command regulation. Nowadays, Russia and China are not only partners, but also competitors on the world market.

    [~PREVIEW_TEXT] => Russia and China are not only neighbours: the countries closely cooperate in commercial sphere; they even had similar political and economic systems until the dissolution of the USSR. Nowadays, the Russian economy is moving towards the market type, while the Chinese policy is based on the social market economy and the idea of a "complex state power", which, as the official Beijing claims, unites an open economy and a high level of production potential with available mechanisms of administrative-command regulation. Nowadays, Russia and China are not only partners, but also competitors on the world market.

    [PREVIEW_TEXT_TYPE] => html
    [~PREVIEW_TEXT_TYPE] => html
    [PREVIEW_PICTURE] => 
    [~PREVIEW_PICTURE] => 
    [LANG_DIR] => /
    [~LANG_DIR] => /
    [CODE] => 2771
    [~CODE] => 2771
    [EXTERNAL_ID] => 2771
    [~EXTERNAL_ID] => 2771
    [IBLOCK_TYPE_ID] => info
    [~IBLOCK_TYPE_ID] => info
    [IBLOCK_CODE] => articles_magazines
    [~IBLOCK_CODE] => articles_magazines
    [IBLOCK_EXTERNAL_ID] => 
    [~IBLOCK_EXTERNAL_ID] => 
    [LID] => s1
    [~LID] => s1
    [EDIT_LINK] => 
    [DELETE_LINK] => 
    [DISPLAY_ACTIVE_FROM] => 
    [FIELDS] => Array
        (
        )

    [PROPERTIES] => Array
        (
            [AUTHOR] => Array
                (
                    [ID] => 97
                    [IBLOCK_ID] => 25
                    [NAME] => Автор
                    [ACTIVE] => Y
                    [SORT] => 400
                    [CODE] => AUTHOR
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => Y
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107723:97
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [AUTHOR_PHOTO] => Array
                (
                    [ID] => 108
                    [IBLOCK_ID] => 25
                    [NAME] => Автор фото
                    [ACTIVE] => Y
                    [SORT] => 410
                    [CODE] => AUTHOR_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор фото
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107723:108
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [ISSUE] => Array
                (
                    [ID] => 93
                    [IBLOCK_ID] => 25
                    [NAME] => Выпуск
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ISSUE
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => E
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => Y
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Выпуск
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 105208
                    [PROPERTY_VALUE_ID] => 107723:93
                    [DESCRIPTION] => 
                    [~VALUE] => 105208
                    [~DESCRIPTION] => 
                )

            [BLOG_POST_ID] => Array
                (
                    [ID] => 94
                    [IBLOCK_ID] => 25
                    [NAME] => ID поста блога для комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_POST_ID
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => ID поста блога для комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107723:94
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [BLOG_COMMENTS_CNT] => Array
                (
                    [ID] => 95
                    [IBLOCK_ID] => 25
                    [NAME] => Количество комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_COMMENTS_CNT
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Количество комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107723:95
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [MORE_PHOTO] => Array
                (
                    [ID] => 98
                    [IBLOCK_ID] => 25
                    [NAME] => Дополнительные фотографии
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => MORE_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => Y
                    [XML_ID] => 
                    [FILE_TYPE] => jpg, gif, bmp, png, jpeg
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Дополнительные фотографии
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [PUBLIC_ACCESS] => Array
                (
                    [ID] => 110
                    [IBLOCK_ID] => 25
                    [NAME] => Открытый доступ
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => PUBLIC_ACCESS
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => L
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => C
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Открытый доступ
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107723:110
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                    [VALUE_ENUM_ID] => 
                )

            [ATTACHED_PDF] => Array
                (
                    [ID] => 324
                    [IBLOCK_ID] => 25
                    [NAME] => Прикрепленный PDF
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ATTACHED_PDF
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => pdf
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Прикрепленный PDF
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107723:324
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

        )

    [DISPLAY_PROPERTIES] => Array
        (
        )

    [IPROPERTY_VALUES] => Array
        (
            [SECTION_META_TITLE] => A New Leader
            [SECTION_META_KEYWORDS] => a new leader
            [SECTION_META_DESCRIPTION] => Russia and China are not only neighbours: the countries closely cooperate in commercial sphere; they even had similar political and economic systems until the dissolution of the USSR. Nowadays, the Russian economy is moving towards the market type, while the Chinese policy is based on the social market economy and the idea of a "complex state power", which, as the official Beijing claims, unites an open economy and a high level of production potential with available mechanisms of administrative-command regulation. Nowadays, Russia and China are not only partners, but also competitors on the world market.<BR>
            [ELEMENT_META_TITLE] => A New Leader
            [ELEMENT_META_KEYWORDS] => a new leader
            [ELEMENT_META_DESCRIPTION] => Russia and China are not only neighbours: the countries closely cooperate in commercial sphere; they even had similar political and economic systems until the dissolution of the USSR. Nowadays, the Russian economy is moving towards the market type, while the Chinese policy is based on the social market economy and the idea of a "complex state power", which, as the official Beijing claims, unites an open economy and a high level of production potential with available mechanisms of administrative-command regulation. Nowadays, Russia and China are not only partners, but also competitors on the world market.<BR>
            [SECTION_PICTURE_FILE_ALT] => A New Leader
            [SECTION_PICTURE_FILE_TITLE] => A New Leader
            [SECTION_DETAIL_PICTURE_FILE_ALT] => A New Leader
            [SECTION_DETAIL_PICTURE_FILE_TITLE] => A New Leader
            [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => A New Leader
            [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => A New Leader
            [ELEMENT_DETAIL_PICTURE_FILE_ALT] => A New Leader
            [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => A New Leader
        )

)

									Array
(
    [ID] => 107723
    [~ID] => 107723
    [IBLOCK_ID] => 25
    [~IBLOCK_ID] => 25
    [IBLOCK_SECTION_ID] => 1443
    [~IBLOCK_SECTION_ID] => 1443
    [NAME] => A New Leader
    [~NAME] => A New Leader
    [ACTIVE_FROM_X] => 
    [~ACTIVE_FROM_X] => 
    [ACTIVE_FROM] => 
    [~ACTIVE_FROM] => 
    [TIMESTAMP_X] => 24.10.2016 17:13:42
    [~TIMESTAMP_X] => 24.10.2016 17:13:42
    [DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2771/
    [~DETAIL_PAGE_URL] => /publications/rzd-partner-int/7/2771/
    [LIST_PAGE_URL] => /info/index.php?ID=25
    [~LIST_PAGE_URL] => /info/index.php?ID=25
    [DETAIL_TEXT] => 

RULES OF SUCCESS

China is the third largest state in the world. Its area is over 9.6 million square kilometers; the population is over 1.3 billion people. The People’s Republic of China has 23 provinces, 5 autonomous regions, 4 centrally administered municipalities and 2 special administrative regions. China, whose economy is mainly based on public property and developing in accordance with the plan, is a large industrial state: according to the total volume of industrial production, it occupies the fourth place in the world, and has become the leader according to the amount of enterprises. 

There are three economic zones in China. The Eastern (coastal) zone is the most developed from the economic standpoint. Most industrial centers and free economic zones, sea ports, offices of large international companies are located there. In the Central zone production of fuel, energy, chemicals, raw materials, semi-finished products, foodstuffs etc. plays the leading role. Agriculture, cattle breeding, mineral raw materials processing prevail in the Western zone.

In spite of the high ratio of economic growth and the increase of China’s share in the world industrial production, its GDP production per head and labour productivity level is much lower than in developed countries. However, experts believe that this will not prevent China from becoming one of the leading world countries and influencing the world economy.

Starting from the beginning of the 1990s, the Government of China switched its policy from the closed society to the open one, in order to increase the flow of foreign capital to the state for modernization and industrial production development. The geographic closeness of Hong Kong, with its developed financial sphere and strong commercial ties, was the main advantage for foreign companies that started to place labour-intensive assembling works, oriented at export, in China. At the same time, four special economic zones (Shanghai, Zhuhai, Shantou and Haikou) were established by the Chinese Government to stimulate investment flows. Direct investments from Hong Kong, Taiwan and the USA were re-oriented to the zones.    

As a result, by the middle of the 1980s, 32 coastal towns and ports were opened for foreign investments. Western investors got an opportunity to access the large Chinese markets and territories with a large amount of labour force, qualified technical stuff and developed infrastructure. Starting from 1992, measures were taken to liberalize services sphere and to create prerequisites to join the WTO. As a result, foreign investors got an access to such sectors of Chinese economy as real estate, telecommunications, transport infrastructure, retail, insurance, accounting services etc, inaccessible for them earlier. At the same time, the launch of joint-stock companies, where foreign partners have 22%-50% shareholding and provide the enterprise with equipment, technologies and funding, while the Chinese side provides the infrastructure, labour resources and local contacts, is a characteristic feature of China. Lately, the amount of companies with 100% foreign capital has been increasing. Earlier it was permitted to establish such companies only in free economic zones; nowadays the limitation has been abolished. The law protects such enterprises from nationalization and expropriation, if they do not damage the social and state interests of China. In early 1995, the Chinese Government approved the law allowing foreign companies to establish holding companies. To do it, it is necessary to meet the following requirements: the company must have a stable financial position, own assets for the sum of no less than USD 400 million, and have worked in China for a long time; it should own a consolidated capital of at least USD 10 million; and it must have an approval for carrying out at least three investment projects in the People’s Republic of China.  

Nowadays, China uses different stimuli to attract foreign investments: tax preferences, privileged import tariffs, and simplified rules of hiring and dismissing foreign staff. Besides, if in a separate region the volume of foreign investments is lower than the level set for the country, the regional authorities can implement special stimulating measures to attract them. Summing up all the facts mentioned above, the Chinese economy’s priority is import substitution and export orientation of production, and the authorities of China make a stake on evolutional methods of reforming and flexible balancing to protect interests of different groups. The state control keeps the processes stable.



ALL FLAGS WELCOME

The correctness of the economic and foreign policies, approved over 20 years ago is confirmed again and again. In 1978-2005, the average annual growth of China’s foreign commerce amounted to 15.2%, and the commodity turnover increased from USD 20.6 billion in 1978 to USD 1.42 trillion nowadays. The average annual growth of GDP was about 9%. Analysts forecast that the country’s GDP will increase by 9.5% this year.

Meanwhile, it is necessary to mention the permanent increase of foreign capital attracted to the economy of China. According to some estimations, the flow of additional funds amounted to USD 60 billion in 2005 (the largest figure in the world); as a result, the real use of foreign capital in China made USD 500 billion. Nowadays, there are about 700 centers engaged in research and development of foreign investments in the country. Mainly they work in the sectors of electronics, processing industry and data communications equipment. Incidentally, the volume of value added produce increased by 26% year-on-year in 2005, and its export grew by 34%. In Chinese export the dominating operations are connected with commission processing and assembling. In 2005 they made about 55% of the total export volume. The share of such operations in import is also increasing (in 2005, it made 41.5% of the total volume). 

At the same time, one of the most important targets of the foreign commerce of the People’s Republic of China is purchase of machinery and technologies. According to experts’ estimations, due to import of high technologies, industrial production grew by 60% in China last year, and about 8,000 new types of products were put on the market. Meanwhile, the share of finished produce in the Chinese export grew up to two thirds. The main trade partners of China are the European Union, the USA and Japan. Incidentally, Russia takes only the 7th place in the rating.

Naturally, by now China has demonstrated the fastest ratio of economy transformation in the modern history. However, there is a reverse side of the medal. Analysts believe that such high ratio of economic development can lead to an overheating of some sectors, which can negatively influence the world’s economic balance. To cool the economy, Chinese authorities can put into operation limitations on investments and credits. In spite of the forecast of the experts of the World Bank at the beginning of 2006 that the Chinese economy growth would make 9.2%, in Q1 of 2006 it amounted to 10.2%. At the same time, the Chinese State Information Center claimed that in Q2 the growth would reduce to 9.8%. Some independent analysts believe that the figure is underestimated and the growth would make 11-12%. As a result, the Government of China has already called upon to increase the discount rate to stop the abrupt rise of prices for real estate. In its turn, the World Bank has announced the necessity of reducing credits given to high-risk sectors of economy, including real estate. 

At the same time, the inflation is to be kept under control, and the growth of consumer prices is to slow down. 

Meanwhile, Chinese experts offer to reduce the state’s exchange reserves, which have been growing too fast lately due to the positive balance of foreign trade and an inflow of foreign investments. Thus, at the end of March of 2006, China’s exchange reserves reached the highest figure in the world - USD 875.1 billion. Economists forecast that by the end of the year the figure may rise to a trillion. 

Besides, China has started to lack raw materials and energy to provide a further stick-slip expansion of its economy. Chinese experts forecast that by 2020 China’s dependence on import of raw materials and semi-finished products may increase significantly: its dependence on oil may grow to 58%, on iron ore - to 52%, on manganese ore - to 38% etc.



TATYANA  TOKAREVA
    [~DETAIL_TEXT] => 

RULES OF SUCCESS

China is the third largest state in the world. Its area is over 9.6 million square kilometers; the population is over 1.3 billion people. The People’s Republic of China has 23 provinces, 5 autonomous regions, 4 centrally administered municipalities and 2 special administrative regions. China, whose economy is mainly based on public property and developing in accordance with the plan, is a large industrial state: according to the total volume of industrial production, it occupies the fourth place in the world, and has become the leader according to the amount of enterprises. 

There are three economic zones in China. The Eastern (coastal) zone is the most developed from the economic standpoint. Most industrial centers and free economic zones, sea ports, offices of large international companies are located there. In the Central zone production of fuel, energy, chemicals, raw materials, semi-finished products, foodstuffs etc. plays the leading role. Agriculture, cattle breeding, mineral raw materials processing prevail in the Western zone.

In spite of the high ratio of economic growth and the increase of China’s share in the world industrial production, its GDP production per head and labour productivity level is much lower than in developed countries. However, experts believe that this will not prevent China from becoming one of the leading world countries and influencing the world economy.

Starting from the beginning of the 1990s, the Government of China switched its policy from the closed society to the open one, in order to increase the flow of foreign capital to the state for modernization and industrial production development. The geographic closeness of Hong Kong, with its developed financial sphere and strong commercial ties, was the main advantage for foreign companies that started to place labour-intensive assembling works, oriented at export, in China. At the same time, four special economic zones (Shanghai, Zhuhai, Shantou and Haikou) were established by the Chinese Government to stimulate investment flows. Direct investments from Hong Kong, Taiwan and the USA were re-oriented to the zones.    

As a result, by the middle of the 1980s, 32 coastal towns and ports were opened for foreign investments. Western investors got an opportunity to access the large Chinese markets and territories with a large amount of labour force, qualified technical stuff and developed infrastructure. Starting from 1992, measures were taken to liberalize services sphere and to create prerequisites to join the WTO. As a result, foreign investors got an access to such sectors of Chinese economy as real estate, telecommunications, transport infrastructure, retail, insurance, accounting services etc, inaccessible for them earlier. At the same time, the launch of joint-stock companies, where foreign partners have 22%-50% shareholding and provide the enterprise with equipment, technologies and funding, while the Chinese side provides the infrastructure, labour resources and local contacts, is a characteristic feature of China. Lately, the amount of companies with 100% foreign capital has been increasing. Earlier it was permitted to establish such companies only in free economic zones; nowadays the limitation has been abolished. The law protects such enterprises from nationalization and expropriation, if they do not damage the social and state interests of China. In early 1995, the Chinese Government approved the law allowing foreign companies to establish holding companies. To do it, it is necessary to meet the following requirements: the company must have a stable financial position, own assets for the sum of no less than USD 400 million, and have worked in China for a long time; it should own a consolidated capital of at least USD 10 million; and it must have an approval for carrying out at least three investment projects in the People’s Republic of China.  

Nowadays, China uses different stimuli to attract foreign investments: tax preferences, privileged import tariffs, and simplified rules of hiring and dismissing foreign staff. Besides, if in a separate region the volume of foreign investments is lower than the level set for the country, the regional authorities can implement special stimulating measures to attract them. Summing up all the facts mentioned above, the Chinese economy’s priority is import substitution and export orientation of production, and the authorities of China make a stake on evolutional methods of reforming and flexible balancing to protect interests of different groups. The state control keeps the processes stable.



ALL FLAGS WELCOME

The correctness of the economic and foreign policies, approved over 20 years ago is confirmed again and again. In 1978-2005, the average annual growth of China’s foreign commerce amounted to 15.2%, and the commodity turnover increased from USD 20.6 billion in 1978 to USD 1.42 trillion nowadays. The average annual growth of GDP was about 9%. Analysts forecast that the country’s GDP will increase by 9.5% this year.

Meanwhile, it is necessary to mention the permanent increase of foreign capital attracted to the economy of China. According to some estimations, the flow of additional funds amounted to USD 60 billion in 2005 (the largest figure in the world); as a result, the real use of foreign capital in China made USD 500 billion. Nowadays, there are about 700 centers engaged in research and development of foreign investments in the country. Mainly they work in the sectors of electronics, processing industry and data communications equipment. Incidentally, the volume of value added produce increased by 26% year-on-year in 2005, and its export grew by 34%. In Chinese export the dominating operations are connected with commission processing and assembling. In 2005 they made about 55% of the total export volume. The share of such operations in import is also increasing (in 2005, it made 41.5% of the total volume). 

At the same time, one of the most important targets of the foreign commerce of the People’s Republic of China is purchase of machinery and technologies. According to experts’ estimations, due to import of high technologies, industrial production grew by 60% in China last year, and about 8,000 new types of products were put on the market. Meanwhile, the share of finished produce in the Chinese export grew up to two thirds. The main trade partners of China are the European Union, the USA and Japan. Incidentally, Russia takes only the 7th place in the rating.

Naturally, by now China has demonstrated the fastest ratio of economy transformation in the modern history. However, there is a reverse side of the medal. Analysts believe that such high ratio of economic development can lead to an overheating of some sectors, which can negatively influence the world’s economic balance. To cool the economy, Chinese authorities can put into operation limitations on investments and credits. In spite of the forecast of the experts of the World Bank at the beginning of 2006 that the Chinese economy growth would make 9.2%, in Q1 of 2006 it amounted to 10.2%. At the same time, the Chinese State Information Center claimed that in Q2 the growth would reduce to 9.8%. Some independent analysts believe that the figure is underestimated and the growth would make 11-12%. As a result, the Government of China has already called upon to increase the discount rate to stop the abrupt rise of prices for real estate. In its turn, the World Bank has announced the necessity of reducing credits given to high-risk sectors of economy, including real estate. 

At the same time, the inflation is to be kept under control, and the growth of consumer prices is to slow down. 

Meanwhile, Chinese experts offer to reduce the state’s exchange reserves, which have been growing too fast lately due to the positive balance of foreign trade and an inflow of foreign investments. Thus, at the end of March of 2006, China’s exchange reserves reached the highest figure in the world - USD 875.1 billion. Economists forecast that by the end of the year the figure may rise to a trillion. 

Besides, China has started to lack raw materials and energy to provide a further stick-slip expansion of its economy. Chinese experts forecast that by 2020 China’s dependence on import of raw materials and semi-finished products may increase significantly: its dependence on oil may grow to 58%, on iron ore - to 52%, on manganese ore - to 38% etc.



TATYANA  TOKAREVA
    [DETAIL_TEXT_TYPE] => html
    [~DETAIL_TEXT_TYPE] => html
    [PREVIEW_TEXT] => Russia and China are not only neighbours: the countries closely cooperate in commercial sphere; they even had similar political and economic systems until the dissolution of the USSR. Nowadays, the Russian economy is moving towards the market type, while the Chinese policy is based on the social market economy and the idea of a "complex state power", which, as the official Beijing claims, unites an open economy and a high level of production potential with available mechanisms of administrative-command regulation. Nowadays, Russia and China are not only partners, but also competitors on the world market.

    [~PREVIEW_TEXT] => Russia and China are not only neighbours: the countries closely cooperate in commercial sphere; they even had similar political and economic systems until the dissolution of the USSR. Nowadays, the Russian economy is moving towards the market type, while the Chinese policy is based on the social market economy and the idea of a "complex state power", which, as the official Beijing claims, unites an open economy and a high level of production potential with available mechanisms of administrative-command regulation. Nowadays, Russia and China are not only partners, but also competitors on the world market.

    [PREVIEW_TEXT_TYPE] => html
    [~PREVIEW_TEXT_TYPE] => html
    [PREVIEW_PICTURE] => 
    [~PREVIEW_PICTURE] => 
    [LANG_DIR] => /
    [~LANG_DIR] => /
    [CODE] => 2771
    [~CODE] => 2771
    [EXTERNAL_ID] => 2771
    [~EXTERNAL_ID] => 2771
    [IBLOCK_TYPE_ID] => info
    [~IBLOCK_TYPE_ID] => info
    [IBLOCK_CODE] => articles_magazines
    [~IBLOCK_CODE] => articles_magazines
    [IBLOCK_EXTERNAL_ID] => 
    [~IBLOCK_EXTERNAL_ID] => 
    [LID] => s1
    [~LID] => s1
    [EDIT_LINK] => 
    [DELETE_LINK] => 
    [DISPLAY_ACTIVE_FROM] => 
    [FIELDS] => Array
        (
        )

    [PROPERTIES] => Array
        (
            [AUTHOR] => Array
                (
                    [ID] => 97
                    [IBLOCK_ID] => 25
                    [NAME] => Автор
                    [ACTIVE] => Y
                    [SORT] => 400
                    [CODE] => AUTHOR
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => Y
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107723:97
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [AUTHOR_PHOTO] => Array
                (
                    [ID] => 108
                    [IBLOCK_ID] => 25
                    [NAME] => Автор фото
                    [ACTIVE] => Y
                    [SORT] => 410
                    [CODE] => AUTHOR_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => S
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Автор фото
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107723:108
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [ISSUE] => Array
                (
                    [ID] => 93
                    [IBLOCK_ID] => 25
                    [NAME] => Выпуск
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ISSUE
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => E
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => Y
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Выпуск
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 105208
                    [PROPERTY_VALUE_ID] => 107723:93
                    [DESCRIPTION] => 
                    [~VALUE] => 105208
                    [~DESCRIPTION] => 
                )

            [BLOG_POST_ID] => Array
                (
                    [ID] => 94
                    [IBLOCK_ID] => 25
                    [NAME] => ID поста блога для комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_POST_ID
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => ID поста блога для комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107723:94
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [BLOG_COMMENTS_CNT] => Array
                (
                    [ID] => 95
                    [IBLOCK_ID] => 25
                    [NAME] => Количество комментариев
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => BLOG_COMMENTS_CNT
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => N
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 1
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Количество комментариев
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107723:95
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [MORE_PHOTO] => Array
                (
                    [ID] => 98
                    [IBLOCK_ID] => 25
                    [NAME] => Дополнительные фотографии
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => MORE_PHOTO
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => Y
                    [XML_ID] => 
                    [FILE_TYPE] => jpg, gif, bmp, png, jpeg
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Дополнительные фотографии
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

            [PUBLIC_ACCESS] => Array
                (
                    [ID] => 110
                    [IBLOCK_ID] => 25
                    [NAME] => Открытый доступ
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => PUBLIC_ACCESS
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => L
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => C
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => 
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Открытый доступ
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107723:110
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                    [VALUE_ENUM_ID] => 
                )

            [ATTACHED_PDF] => Array
                (
                    [ID] => 324
                    [IBLOCK_ID] => 25
                    [NAME] => Прикрепленный PDF
                    [ACTIVE] => Y
                    [SORT] => 500
                    [CODE] => ATTACHED_PDF
                    [DEFAULT_VALUE] => 
                    [PROPERTY_TYPE] => F
                    [ROW_COUNT] => 1
                    [COL_COUNT] => 30
                    [LIST_TYPE] => L
                    [MULTIPLE] => N
                    [XML_ID] => 
                    [FILE_TYPE] => pdf
                    [MULTIPLE_CNT] => 5
                    [LINK_IBLOCK_ID] => 0
                    [WITH_DESCRIPTION] => N
                    [SEARCHABLE] => N
                    [FILTRABLE] => N
                    [IS_REQUIRED] => N
                    [VERSION] => 2
                    [USER_TYPE] => 
                    [USER_TYPE_SETTINGS] => 
                    [HINT] => 
                    [~NAME] => Прикрепленный PDF
                    [~DEFAULT_VALUE] => 
                    [VALUE_ENUM] => 
                    [VALUE_XML_ID] => 
                    [VALUE_SORT] => 
                    [VALUE] => 
                    [PROPERTY_VALUE_ID] => 107723:324
                    [DESCRIPTION] => 
                    [~DESCRIPTION] => 
                    [~VALUE] => 
                )

        )

    [DISPLAY_PROPERTIES] => Array
        (
        )

    [IPROPERTY_VALUES] => Array
        (
            [SECTION_META_TITLE] => A New Leader
            [SECTION_META_KEYWORDS] => a new leader
            [SECTION_META_DESCRIPTION] => Russia and China are not only neighbours: the countries closely cooperate in commercial sphere; they even had similar political and economic systems until the dissolution of the USSR. Nowadays, the Russian economy is moving towards the market type, while the Chinese policy is based on the social market economy and the idea of a "complex state power", which, as the official Beijing claims, unites an open economy and a high level of production potential with available mechanisms of administrative-command regulation. Nowadays, Russia and China are not only partners, but also competitors on the world market.<BR>
            [ELEMENT_META_TITLE] => A New Leader
            [ELEMENT_META_KEYWORDS] => a new leader
            [ELEMENT_META_DESCRIPTION] => Russia and China are not only neighbours: the countries closely cooperate in commercial sphere; they even had similar political and economic systems until the dissolution of the USSR. Nowadays, the Russian economy is moving towards the market type, while the Chinese policy is based on the social market economy and the idea of a "complex state power", which, as the official Beijing claims, unites an open economy and a high level of production potential with available mechanisms of administrative-command regulation. Nowadays, Russia and China are not only partners, but also competitors on the world market.<BR>
            [SECTION_PICTURE_FILE_ALT] => A New Leader
            [SECTION_PICTURE_FILE_TITLE] => A New Leader
            [SECTION_DETAIL_PICTURE_FILE_ALT] => A New Leader
            [SECTION_DETAIL_PICTURE_FILE_TITLE] => A New Leader
            [ELEMENT_PREVIEW_PICTURE_FILE_ALT] => A New Leader
            [ELEMENT_PREVIEW_PICTURE_FILE_TITLE] => A New Leader
            [ELEMENT_DETAIL_PICTURE_FILE_ALT] => A New Leader
            [ELEMENT_DETAIL_PICTURE_FILE_TITLE] => A New Leader
        )

)