Magazines — RZD-Partner International — 2 (10) June - August 2007
2 (10) June - August 2007
We Are Speaking of DevelopmentTraditionally each spring Igor Levitin, the RF Transport Minister, gives his exclusive interview to The RZD-Partner International business magazine where he analyzes the year’s results and emphasizes new focuses and prospects.
Olympic Sochi – Area for New Logistic Technologies
If Sochi wins the competition for the right to hold XXII Winter Olympic Games, the success of this event will partly depend on how coordinated and well-organized the work of the city’s transport system is. And railway is one of the key components in it.
Does TransSib Have a Chance?
Last year the aggregate volume of container transportation via the TransSib grew by 8%. It is not a very impressive result, though, considering recent tariff fluctuations, it was not expected at all. Nevertheless, the volume of transit flows amounted to 40 thousand TEU only, showing a drop by 68% (compared to 126 thousand in 2005). In this respect some questions arise: where the remaining part of transit went, what the structure of present day cargo turnover looks like and when thousands of container units will come back to the TransSib.
Contents
Editorial
EDITORIAL
Russia begins to invest in transport infrastructure. It’s not only about new roads, new ports and things like launching a regular rail ferry line between port of Ust-Luga and port of Sassnitz. Firstly, it is about improving law «atmosphere» in the branch, setting new rules for transportation and solid relations between state authorities and business on a long term basis.We Are Speaking of Development
INTERVIEW
Traditionally each spring Igor Levitin, the RF Transport Minister, gives his exclusive interview to The RZD-Partner International business magazine where he analyzes the year’s results and emphasizes new focuses and prospects.
Panorama
ECONOMICS / Panorama
Return Transit to the TranssibConsortium to Be Launched to Join Transsib and TransKorean Railways
Machine Building from Strategic Viewpoint...
Kazakhstan Railways Build Up the Market
ECONOMICS / Reform
The RZD Partner-International has already reported about the way the railway transport reform is unfolding in Russia. What about railway transport liberalization in the countries of the former USSR? Kazakhstan performs as the most efficient state in this respect.
Russia – China: Direct Way to Europe
ECONOMICS / Transport Corridors
The dynamics of the foreign trade cargo turnover between Russia and China has become stable in recent years. Thus, for the past six years the transportation volume between two countries has doubled (from 24 mln tons in 2000 to 47 mln tons in 2006). The export cargo volumes have doubled as well (from 22.6 mln tons to 43.8 mln tons), import has grown by 2.8 times (from 1.1 mln tons to 3 mln tons), though transit transportation has seriously dropped (from 637.4 thousand tons to 253.7 thousand tons). Vadim Morozov, OAO RZD First Vice-President, comments on the prospects of Russia – China railway cargo transportation.
Epilogue
ECONOMICS / Projects and Investments
Practically all formalities on the termination of the contract about privatization of the Estonian railways by Baltic Rail Services OU consortium of investors are already finished. After leaving Estonia for the last time one of shareholders of BRS, chairman of Board of directors of Railroad Development Corporation Henry Posner III has arrived to Moscow and has told to The RZD-Partner International magazine about BRS vision of the company's results acheved in Estonia and forecasts for the railway transportation market development in the country.
Olympic Sochi – Area for New Logistic Technologies
ECONOMICS / Projects and Investments
If Sochi wins the competition for the right to hold XXII Winter Olympic Games, the success of this event will partly depend on how coordinated and well-organized the work of the city’s transport system is. And railway is one of the key components in it.We Are a Prospective Partner
ECONOMICS / Projects and Investments
Nowadays Railways of Yakutia (RY) is a dynamically developing company who enhances transportation volumes and efficiently cooperates with OAO RZD and foreign colleagues as a competent partner. «This cooperation gives us a chance to promote our company onto a new level of higher quality», Vasily Zagorodsky, Vice-President of ÎÀÎ «Railways of Yakutia», states.
We Need More Joint Projects
ECONOMICS / CIS and Baltic States
Competition battle unfolding between Polish railway cargo carrier is one of the toughest in the EU. Kazimierz Murawski, Board Member and Marketing Director of the Central Board of PKP Cargo JSC, comments on last year results, plans for the future and clarifies the goals set to the state carrier.
Not Only Sea
ECONOMICS / CIS and Baltic States
«The fact that the Baltic countries are located favourably in the heart of Northern transport ways and their port infrastructure, as well as that of railway and motor transport, is developed properly allows Latvia, Lithuania and Estonia to attract towards their transit corridors a significant part of cargo flow following between the two enormous markets of East and West» – Eric Shmuksts, Director of Cargo Transportation Department of Latvijas Dzelzcels JSC, believes.
Forget Competition, Take to Partnership
ECONOMICS / Doing business in Russia
Russian logistics market becomes more and more international, thus, numerous discussions on competition and cooperation between domestic and foreign companies arise. This was the topic of the round table organized by The RZD-Partner business magazine and held in Moscow on March 29 within the largest transport exhibition «TransRussia-2007».Panorama
TRANSPORTATION / Panorama
FESCO Will Build Container Terminal in Moscow Freight Transportation in Ukraine: +15% in Q1 New Container Terminal in Vladivostok by Summer 2008....OAO RZD Feels Fine on the Market
TRANSPORTATION / Cargo and routes
Railway transportation volumes grew by 6.5% in Q1 2007. The major growth was provided by the high dynamics of mass cargo transportation. Thus, coal grew by 2.7%, oil bulk – by 5.6%, ferrous metals and timber – by 12.2% and 5% respectively.
Export of Timber Turns Unprofitable
TRANSPORTATION / Cargo and routes
The increase of export dues on unprocessed timber, according to the Government’s concept,is to attract investments into the RF forest sector. This initiative caused debates inside the country, as well as abroad. The effects from the decision may include the reduction of timber transportation volume by railway in the next two years.
Dues Increase Is Profitable for Russia
TRANSPORTATION / Cargo and routes
If the export dues on export of unprocessed timber from Russia are increased in accordance with the programme announced by the Government, it will be a landmark for the world forest sector. The adviser of the North-Western Forest Industry Confederation Igor Ryvkin told us what the RF neighbours are unhappy with and why it is profitable for the Russian forest industry.
Does TransSib Have a Chance?
TRANSPORTATION / Container transportation
Last year the aggregate volume of container transportation via the Transsib grew by 8%. It is not a very impressive result, though, considering recent tariff fluctuations, it was not expected at all. Nevertheless, the volume of transit flows amounted to 40 thousand TEU only, showing a drop by 68% (compared to 126 thousand in 2005). In this respect some questions arise: where the remaining part of transit went, what the structure of present day cargo turnover looks like and when thousands of container units will come back to the TransSib.
Take Barriers off the Road
TRANSPORTATION / Auto Transport
The dynamics of international transportation by road haulages between Russia and its neighbouring countries is positive. However, experts note that the development of this type of communication is restrained by a large number of barriers. It is high time to think about the problem. Otherwise road hauliers can lose their advantage and the competition with the railway transport.
«We Managed to Increase the Share of Russian International Road Hauliers»
TRANSPORTATION / Auto Transport
Deputy Transport Minister of the Russian Federation Evgeny Moskvichev spoke to The RZD-Partner International about the state policy in the sector of international transportation by road hauliers in 2006.
Air Industry: Any Way Out?
TRANSPORTATION / Air Transport
Wear and tear of the air park in Russia has reached its crucial stage. Experts believe the inability of the national air industry to cover the deficit of modern vessels can hardly be compensated by the radical and desperate efforts of the state launching the United Air Construction Corporation to help the situation.
Panorama
COMPANY / Panorama
OAO RZD Chose Banks AltaiVagon: Project of Speeded-Up Container Carrier FESCO Group Purchased Transgarant 12 million tons of Oil to Vysotsk Terminal Annually....Russian Railways and Ports: Move Towards Each Other
COMPANY / Port
Certain difficulties arising in railway transport and sea ports cooperation has become a traditional problem which is rooted in the poorly developed infrastructure and the lack of proper amount of co-ordination between these two modes of transport. Now the sides are trying to work out new and more efficient tools for cooperation; currently expectations are laid upon ÎÀÎ RZD who might participate in the authorized capital of the ports and launch a joint logistics centers network.
Helicopters Most Important
COMPANY / Innovations
According to the forecast of international experts, in the next decade the world market’s demand for helicopters will make about 14.5 thousand units. Leonid Belykh, CEO of the only Russian enterprise producing both airplanes and helicopters – Ulan-Ude Aircraft Plant JSC, comments on how competitive the aircraft is.
«Rail Has Good Chances»
SPECIAL PROJECT: / Russia and Germany: Cooperation in Transport Sector
Hartmut Mehdorn, CEO and Chairman of the Management Board, Deutsche Bahn AG, is very pleased with a 40% growth in the freight traffic between Germany and the CIS. In the near future a growth rate must jump even more, but to get there railway companies must work hard on resolving common problems. To discuss the development of relations between OAO RZD and Deutshce Bahn AG, Hartmut Medorn exclusively spoke to The RZD-Partner International magazine.
Clients Bring Us Closer
SPECIAL PROJECT: / Russia and Germany: Cooperation in Transport Sector
Russian Railways (RZD) are on the way of restructuring and modernization. To adapt to working within a global transport net and cope with on-going processes of high-speed transportation development, business diversification etc., the company has to cooperate with foreign partners and get familiar with achievements of the key-players on the international market. One of them is Deutsche Bahn AG. Alexey Averin, OAO RZD Head of International Relations Department, comments on cooperation of the two companies.
Siemens – OAO RZD: Marriage of Convenience
SPECIAL PROJECT: / Russia and Germany: Cooperation in Transport Sector
The German company Siemens actively cooperates with OAO RZD, other Russian transport companies and scientific and research institutes. Nowadays, it is possible to say that the cooperation will be active during the next 30 years, because it is the term during which the agreement on technical servicing of Velaro RUS trains is in force. The agreement was concluded on April 20, 2007.
Russia – Germany Non-Stop
SPECIAL PROJECT: / Russia and Germany: Cooperation in Transport Sector
Close cooperation and intensive cargo flows need effective logistic solutions and developed transport links. Railway-ferry bridge between Zassnits and Baltiysk can satisfy this requirement in future. This bridge links Russia and Germany providing non-stop communication. Thus, this very peculiarity turns it into a very important project both from political and economic point of view.Welcome to Rail!
SPECIAL PROJECT: / Russia and Germany: Cooperation in Transport Sector
Germany, Russia, Poland and Belarus are willing to create an effective rail corridor between the two polar countries of this alliance. For improving rail services that are to compete short-sea and road, the four participants established a joint stock venture ZAO Eurasia Rail Logistics (ERL) based in Moscow, which must take measures to boost rail efficiency. The secret of success is clear and simple, say potential customers: high qaulity and reasonable price.«The main obstacles are the variable traction costs, transportation quality and unreliable capacity planning»
SPECIAL PROJECT: / Russia and Germany: Cooperation in Transport Sector
Dr. Joerg Mosolf, CEO Mosolf GmbH & Co. KG, spoke to The RZD-Partner International about what, in his opinion, must be done so that his company begins to bring freight owners to the rail route from Germany to the other countries represented in ERL.Special Attention to Quality and Innovations
PRODUCTION AND SERVICES / Rolling Stock
In spite of a number of positive results achieved by the transport machine-building sector in recent years, there is still a crisis in it. The developed by the RF Ministry of Industry and Energy programme «Strategy of Russian transport machine-building sector development in 2007-2010 and till 2015» is to become the most important step to overcome the crisis.
Is It Worth Purchasing a Locomotive?
PRODUCTION AND SERVICES / Rolling Stock
The inventory park of locomotives of OAO Russian Railways (RZD) consists of 20,000 units. Exterior organizations have over 170 mainline diesel locomotives that have a right to run along OAO RZD network, i.e. less than 1% of the total amount of locomotives used on the railway network.
There Will Be Order on Border
PRODUCTION AND SERVICES / Customs
Development of transport infrastructure and borders with neighbouring states are most important things for any country. Nevertheless, nowadays many questions concerning the functioning of the border crossings, for which the RF Federal Customs Service and the Ministry of Transport are responsible, have not been solved yet. Will the two state bodies manage to come to an agreement?