New Wagons. New Tariffs?

07.06.2007 (18:42)

Alexey TaycherAccording to the Target model of railway transport services market accepted by Governmental commission, in 2007 it is planned to launch the first Cargo company of OAO RZD. We asked one of leading developers of the project Alexey Taycher, the adviser of the senior vice-president of OAO RZD to comment on the situation.

-Mr. Taycher, have any suggestions been made concerning the change of tariffs for services of the Cargo company in comparison with the rates envisaged by the Tariff Regulation?

- Within the limits of study of price policy, differentiated on the types of cargo, bonuses and discounts to the freight car constituent of the tariff from 10% up to 17% is supposed. I emphasize - to a freight car constituent, i.e. full tariff for transportation in cars of the Cargo company will vary within the limits of 2-3%. Thus, while preparing the materials, the detailed estimation of the changes of prices influence on the transport loading on railway transport costumers was made. Let’s take, for example, mineral and construction materials on which the average transport constituent in the price of production last year was maximal and amounted to 39.7% last year. Let us suppose that the freight car constituent in the tariff for transportation in the car of the Cargo company increases by17% to provide timely renovation of rolling stock. As a result, transport loading on the cargo owner will grow by 0.3% in view of a share of a carload constituent in the tariff and shares of the Cargo company in transportation of these cargoes. And this deviation is limiting. If we analyze the commodity market situation on this kind of transported cargo, such change lays within the limits of the miscalculation, even it is less than that.

- Is it really possible to hope that on the revenues the Cargo company will purchase additional quantity of flat wagons or gondola cars, and market mechanisms of leveling of a supply and demand by means of the instability of prices will work?

- Not only it is possible to hope, but it is the key target of work of the Cargo company - updating and an enlargement of park. It is planned, that in five years the company will purchase 70 thousand freight cars of all types. There are three key tasks: renewal of freight cars, development of the competition and the company’s entering the market of the capital.

- Is it possible to consider the work on the market will allow to service much more flexibly with such unprofitable cargo as for example, coal? In fact there are also quite profitable routes but is it possible to work individually with the client when the price is fixed and is the same for all?

- Certainly. For example, if I bring coal to a metallurgical enterprise in gondola cars, and I remove metal from it in the same rolling stock, transportation of coal is profitable for me. And logistic is very important here. And if today transportation of coal is unprofitable within the limits of acting tariff regulation, tomorrow the Cargo company as the operator, having provided even a partial return loading and, having an opportunity to operate with the prices flexibly, will struggle for these transportations.

- What are the basic difficulties at the launch of the Cargo company - organizational, technological, others?

- This process will be uneasy for OAO RZD in many aspects. All business will be created from the very beginning, and this is the main difficulty. As to legal and technological aspects, for one and a half year of discussions already we have done a lot and continue to work actively.

- What is it possible to tell about the basic characteristics of the Cargo company?

- 200 thousand freight cars will belong to the company. They will pass in its operating gradually, in the next two years. The staff will amount to 5.7 thousand people. It is planned to create powerful matrix marketing structure, which will have regional offices, and the business-groups will function. These groups will be engaged in working with the certain branches of economy. The Cargo company will own 9 - 10 regional affiliates. Realization of the investment program of the first Cargo company assumes renewal of more than 70 thousand freight cars during five years, that will allow to reduce deterioration and costs for the maintenance of the wagon park of the company. The market share of the company in the throughput served by its park will make 18-21 %. According to forecast, the cost of the Cargo Company (when it is launched) is from 90 to 120 bln. rubles.

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