Magazines — RZD-Partner International — 4 (12) December-February 2007
4 (12) December-February 2007
ÎÀÎ RZD outlines the long-term targets: Railway engineering development passes ahead of the general rates of industrial development in Russia. OAO RZD Vice-President Valentin Gapanovich comments on the basic prospects of the sector, production acceptance criteria and problems the national engineering sector is to face in the near future. Target-Oriented Development: At present the RF Ministry of Transport is developing a new Federal target programme “Development of Transport System of Russia” with the budget worth RUR 3 trln. The programme will be implemented in 2010–2015 and is aimed at modernization of large-scaled projects in road, railway and sea transport.
Let’s fight rolling stock deficit!: Deficit in rolling stock has resulted in railway machine engineering boom and as a result growth of demand for new railway engineering production by OAO RZD and private operators. In 2007 growth of rolling stock production is estimated at 15%.
Contents
There Will Be a Hot Discussion about the Rules of the Game
INTERVIEW
The reforms in the Russian transport sector, regulated by special legislative acts, have been held for several years, bringing the need to adopt new normative acts. “The RZD-Partner International” asked Deputy Minister of Transport of the Russian Federation Sergey Aristov to comment on the process of the legislative base improving the transport sector.
ÎÀÎ RZD outlines the long-term targets
THEME / transport engineering: industry on the rise
Railway engineering development passes ahead of the general rates of industrial development in Russia. OAO RZD Vice-President Valentin Gapanovich comments on the basic prospects of the sector, production acceptance criteria and problems the national engineering sector is to face in the near future.
Let’s fight rolling stock deficit!
THEME / transport engineering: industry on the rise
Deficit in rolling stock has resulted in railway machine engineering boom and as a result growth of demand for new railway engineering production by OAO RZD and private operators.In 2007 growth of rolling stock production is estimated at 15%.
Too many passengers for too few coaches
THEME / transport engineering: industry on the rise
ÎÀÎ RZD has been searching the way out to solve the problem with the passengers rolling stock deficit from a long-term perspective. The present situation shows that the Russian industry is unable to cope with this deficit that makes the corporation take active steps to launch their own production. The major hope in this respect is laid upon cooperation with foreign companies who operate innovative modern technologies.
Panorama. Economics
ECONOMICS / Panorama
Before 2015, forty terminal and logistics centres are to be constructed in the largest transport junctions of Russia as part of the framework of the Strategy of RF Railway Transport Development to 2030.From ISO to IRIS?
ECONOMICS / Reform
A German agency for certification of DQS management systems intends to offer cooperation with OAO RZD regarding the launch of IRIS international standards in the rail industry of Russia. In its turn OAO RZD has agreed to assist in promoting IRIS in Russia.Target-Oriented Development
ECONOMICS / state policy
At present the RF Ministry of Transport is developing a new Federal target programme (FTP) “Development of Transport System of Russia” with the budget worth RUR 3 trln. The programme will be implemented in 2010–2015 and is aimed at modernization of large-scaled projects in road, railway and sea transport.New Railway to Enhance Caspian Transit Chances
ECONOMICS / Projects and Investments
Kazakhstan and Turkmenistan concluded an agreement on a Caspian railway construction. It will be built along the shore of the Caspian Sea and connect the railway networks of the two states. The new railway, aimed at transportation of chemicals and oil products, may become an alternative route to the Moscow link in the frames of the corridor North-South.It may also make the corridor popular for cargo owners.
Byelorussian Railway: Optimistic, But Careful
ECONOMICS / CIS and Baltic States
Recognising the positive trends in the economies of Russia and Belarus, First Deputy Head of the Byelorussian Railway Vladimir Laptinsky hopes the current transit volume will not drop and the domestic transportation profitability will grow.
“There are vast opportunities in Russia!”
ECONOMICS / Doing business in Russia
«Russia is extremely important to the Finnish investors. Russian Federation offers a vast base of not only raw materials such as gas, oil, timber and minerals, but an increasingly competitive base for Finnish companies to locate their business in Russia», says Tarja Tiirikainen, Director of Finnish-Russian Chamber of Commerce in St. Petersburg. We asked Mrs. Tiirikainen to express her view on the opportunities and threats of the business operations in Russia.
Russia Lacks Logisticians
ECONOMICS / logistics
In the Russian logistics sector there is an enormous staff shortage, caused by an imperfect education system which does not fulfil the demand for specialist training. Meanwhile, the sector develops actively, so Russian companies looking for qualified employees turn to foreign states.Panorama. Transportation
TRANSPORTATION / Panorama
On October 30, Eesti Raudtee (the Estonian Railway) launched the first block train from Tallinn to Kazakhstan. During the previous five years, containerised cargoes were delivered to Latvia, and then transported to Middle Asia by Baltika-Transit train.Rich harvest – problems for transport business
TRANSPORTATION / Cargo and routes
Rich harvest of 2007 in Russia and high prices on grain set on the world market have examined transport system of the state again. Now according to the Russian Grain Union, practically each grain trader faces problems with specialized railroad cars since the volumes of the grain to be transported are twofold higher than the volume of available rolling stock.Railway vs Pipelines
TRANSPORTATION / Cargo and routes
In spite of the “cooling down” of political relations between Russia and the EU, obviously, the latter will hardly suffer from the lack of energy. It is confirmed by Russian oil and gas companies’ plans to increase the capacities to export hydrocarbons via the RF North-Western region – the enlargement of the Baltic Pipeline System (the BPS) capacity to 110 mln tons of oil annually.
Windows to Europe
TRANSPORTATION / Container transportation
After the TransSib transit collapse in 2006 every market player expresses his ideas how to revive the line. Now neighbors are ready to help Russia. Thus, Poland is actively developing the project of Slavkov (another name Slavkuv) terminal construction. Coordinating Council on TransSiberian Transportation (CCTT) even recommends to the Ministry of Transport to introduce privileged tariffs on transit transportation. Will border crossings and terminals development in Europe help to attract long awaited transit?Russia – China: Border is Under Repair
TRANSPORTATION / transport corridors
In the first six months of 2007 the growth of trade turnover between Russia and China made 40%. In 2008 experts believe it can double compared with the results of 2006. This significant growth has become the stimulus for development of the basic Russian – Chinese border crossings. Logisticians and importers see certain difficulties in handling cargo at the border crossings that have to do with low carrying capacity, bureaucracy and problems with customs procedures.
“Yes” to Foreign Trucks, “No” to Russian Ones
TRANSPORTATION / Auto Transport
The significant growth of road transportation in Russia has lead to the increase of demand for new trucks. Foreign vehicles actively put out the ones produced in Russia. Domestic producers are trying hard to compete with European and Asian manufacturers, but they haven’t succeeded in it so far.
Airports of Russia: future belongs to cargo transportation
TRANSPORTATION / Air Transport
Cargo sector in the Russian airport business has been booming. There is no federal air harbour that wouldn’t have intended to build specialized cargo-terminal within two past years. Foreign airlines which now prefer not to deal with Russian cargo airports may change their opinions for the better soon.
Bunker market of Saint-Petersburg: Do not be late to enter
TRANSPORTATION / sea transport
In 2007 the Big Port of Saint Petersburg astonished the European shipping business by showing a growth in bunker fuel of 20% for 6 months. These volumes equal those of the port of Hamburg, which has a higher ship turnover. The secret of this miraculous result lies in the fact that Saint Petersburg offers the cheapest bunkering in Europe, which attracts ship owners. Hopefully, next year will bring more foreign bunker companies and oil holdings to the local market and strengthen competition.
Russia increases competition of the ports
TRANSPORTATION / Port
At present cargo handling in the Russian port takes two-three weeks. In neighboring countries this term makes two or three days. As a result 30% of the Russian cargo is delivered via the neighboring ports having increased transport component in the prime-cost to 20% instead of possible 8%. To change the current unfavorable situation the state creates special economic port zones where residents are not to pay part of dues.
Panorama. Company
COMPANY / Panorama
OAO Sea Port of Saint Petersburg group of companies concluded a contract with an international company Royal Haskoning on a container terminal project. The terminal is planned to be constructed on the territory of the Fourth Stevedoring Company.Accounting According to International Standards
COMPANY / OAO RZD
In OAO RZD, the accounting system is being reformed. The most important aspects in the new approach are the transfer to IFRS (International Financial Reporting Standards), making financial flows more transparent, and centralisation of client servicing. The accountant-in-chief of OAO RZD Galina Kraft told a journalist of “The RZD-Partner International” about the most important innovations.
Russian rail Business on the way to real market
COMPANY / OAO RZD
The RF Government approved the launch of ÎÀÎ First Cargo Company – OAO RZD daughter company (The First Cargo Company – FCC). Compared to its mothering structure, FCC will be able to set tariffs for its service itself, which will allow FCC to compete with independent operators who have taken away a significant part of profitable cargofrom OAO RZD.
“The Cargo-Luggage Market May Disappear”
COMPANY / passenger transportation
Cargo-luggage transportation is now at a very complicated level of its development. The lack of rolling stock, the stoppage of its production, problems of wagon repair and unclear future tariff policy do not enable private operators to realise the significant potential of this socially important segment of transport business. The President of Russian Railway Carriers Association “Union of Transport Companies” Maxim Stepanov spoke about it in an interview to “The RZD-Partner International”.
Customs Union in the CIS: Will This Attempt Be a Success?
PRODUCTION AND SERVICES / Customs
In October, at the summit of the Eurasian Economic Community (EurAsEC) member states, the Presidents of Russia, Kazakhstan and Byelorussia signed an agreement to establish a customs union. The document envisages that the other CIS members may also participate in the union. Will this attempt to create an integrated economic association in the area of the former Soviet Union be a success? Will it help to simplify the movement of cargo in the newly organized area?Leasing of Railway Transport: Is Growth Peak Over?
PRODUCTION AND SERVICES / finances
Leasing of railway transport that started in Russia in practice several years ago, together with the structural reforms in the railway sector, has been demonstrating significant growth rates. Is the positive dynamics stable? Will the growth remain the same?These are the main questions asked by market experts
VAT Refund for Leasing Contracts: Do Not Fear Taking It to Count
PRODUCTION AND SERVICES / finances
Almost all companies we asked named the so-called “VAT problem” among other negative factors restraining the leasing market development in the RF. Head of Tax Practice Department of the juridical company “Pepeliaev, Goltsblat and Partners”,lawyer Anton Nikiforov also commented on the issue.