Magazines — RZD-Partner International — 4 (16) November - February 2008-2009
4 (16) November - February 2008-2009
Baltic Ports: Freight War in the Face of an Economic CrisisAfter the beginning of economic instability caused by the world financial crisis, the fight between the former Soviet ports on the Baltic Sea may become even more bitter. Are the largest Russian players happy with their position? What are their chances of coming out on top? What strategy will they choose in these new, difficult conditions?
New Life Is Promised To BAM
The Baikal-Amur Mainline railroad (from East Siberia to Far East) runs through an area rich in mineral resources desired in the People's Republic of China. In 2007-2008, OAO RZD and a number of private companies have undertaken efforts to modernise BAM. One can see evidence of the fact that, in the near future, BAM will come out of its present poor state to become one of the busiest railroads in Russia.
More Than Half Of The Park Is In Private Hands
Reform of Russia's railway transport structure should be completed in 2010. Perhaps, one of its few conclusively positive results is the emergence of new, independent players on the market, private operators and development of competition between them and OAO Russian Railways.
Contents
Editorial
EDITORIAL
This issue of the magazine may seem to you a bit optimistic. Despite the fact that the global economic downturn in its first wave made history of a few great worldwide banks and in its second wave leaked into the industrial sector (see our stats on pp. 76-79), the main players in Russia’s transport industry are still reporting good financial results. Among them OAO RZD (Russian Railways). The company’s investment program is to be cut, but by a modest 10%, maybe a bit more or less. A reasonable debt policy, stable revenue and consistent attempts to cut expenses result in a very confident financial position for RZD (pp. 34-37).How to Provide Competitiveness?
INTERVIEW
A lot of changes have taken place in the sphere of Russian transport in the last two years – large infrastructure projects, normative and legislative base improvements, development of new programme documents. All these have made the Russian port sector enter a new level of activity, Alexander Davydenko, Head of the Federal Agency for Sea and River Transport, is sure.
Baltic Ports: Freight War in the Face of an Economic Crisis
THEME / fight for baltic cargoes
After the beginning of economic instability caused by the world financial crisis, the fight between the former Soviet ports on the Baltic Sea may become even more bitter. Are the largest Russian players happy with their position? What are their chances of coming out on top? What strategy will they choose in these new, difficult conditions?Henri Kuitunen: “It’s High Time We Set To Work”
THEME / fight for baltic cargoes
There are a number of changes in the activities of VR Group. These are changes in the structure of cargo turnover, partly caused by the volumes of timber transport, as well as passenger transportation growth, which will increase in the future with the Helsinki – Saint Petersburg line. We asked Henri Kuitunen, President and CEO of VR-Group Ltd, to talk about its work and ambitious Finnish projects.
Latvia Fights for Russian Transit
THEME / fight for baltic cargoes
The profitable geographical location of Latvia and its developed port and transport infrastructure allows the state to be considered a transit country. However, the last few years have been testing for transporters – traditional cargoes are leaving, and new ones are yet to arrive.
Estonia: in Search of New Cargoes
THEME / fight for baltic cargoes
In the one and a half years since relations between Russia and Estonia soured, Russian transit transportation through Estonian territory have continued to decrease. And experts forecast it is not impossible that mineral oil transportation in that direction will be completely stopped in the near future.
Panorama. Economics
ECONOMICS / Panorama
At the 17th plenary session of the International Association “Coordina¬ting Council on Transsiberian Transportation” (CCTT) Vladimir Yakunin, President of OAO RZD, asked all members of the Association to cut prices on their services by 10% next year.New Life Is Promised To BAM
ECONOMICS / Transport Corridors
The Baikal-Amur Mainline railroad (from East Siberia to Far East) runs through an area rich in mineral resources desired in the People’s Republic of China. In 2007-2008, OAO RZD and a number of private companies have undertaken efforts to modernise BAM. One can see evidence of the fact that, in the near future, BAM will come out of its present poor state to become one of the busiest railroads in Russia.Ministry of Transport
ECONOMICS / who is who
The RF Ministry of Transport is a federal body with executive power in the sphere of transport. Its functions are development of national policy and legislative regulation in civil aviation, airspace usage, aeronautical servicing for users of Russian airspace, air search and rescue, sea (including sea ports) and river transport, as well as railway, road and passenger electric transport in towns (including the underground), industrial transport and the public road system.Panorama. Transportation
TRANSPORTATION / Panorama
In Kazakhstan the throughput of non-transport enterprises and commercial transportation entrepreneurs reached 306.27 billion tonne-kilometres (t/km) in January-October 2008, 7% up year-on-year.Financial Crisis – Russian Transport Is Feeling Confident
TRANSPORTATION / Cargo and routes
The world financial crisis has affected Russia’s railway business. Changes in production volumes caused by a reduction in the ability to pay for demanded metals, oil, mineral fertilisers and other cargoes on both external and home markets have had a direct influence on the turnover of OAÎ RZD. Another consequence could be a fall in prices for rolling stock due to decreasing demand.Lots of Plans, But Few Planes
TRANSPORTATION / Air Transport
In spite of the world economy recession, experts are optimistic about the global and Russian freight transportation markets. Russian market players believe that its annual growth is 5-7% and that this trend will continue till 2025.
“FSU Countries Fleets Require Huge Investment”
TRANSPORTATION / sea transport
Alan McCarthy from the Eurofin Group has undoubtedly a full right to be named a true lover of Russia. It’s really worth seeing him trying to get bankers into the necessity to work with Russian small and medium shipowners closer, despite the well-known difficulties which wait for everybody wishing to do their business here. Where his huge belief in Russia comes from, he explains in an interview to The RZD-Partner International.
Panorama. Company
COMPANY / Panorama
On November 13, 2008, Vladimir Yakunin, President of OAO Russian Railways, and Igor Zyuzin, CEO of OAO Mechel, signed the contract for Chelyabinsk Metallurgical Plant OAO to supply rail products to OAO RZD from 2010 to 2030.RZD Trading House: Around the Globe
COMPANY / OAO RZD
Open joint-stock company “RZD Trading House” was created almost two years ago on the initiative of OAO RZD. Its basic purpose is promotion of the goods, services and technologies of OAO RZD and other Russian railway complex enterprises to foreign markets. General Director of OAO “RZD Trading House” Alexey Mersiyanov talks about the achievements of the company and the projects it is developing today.
When Will the Era of Transporter Competition Start?
SPECIAL PROJECT: / Rating of operators
Russian railway reform envisages that private transporters will finally appear. In his interview with The RZD-Partner International, Vladimir Prokofyev, President of the Association of Transporters and Rolling Stock Operators of Russia and Director General of OOO BaltTransService, speaks about the formation of independent railway operators and their vision for further market development, particularly after such a powerful player as OAO the First Cargo Company was launched.
More Than Half Of The Park Is In Private Hands
SPECIAL PROJECT: / Rating of operators
Reform of Russia’s railway transport structure should be completed in 2010. Perhaps, one of its few conclusively positive results is the emergence of new, independent players on the market, private operators and development of competition between them and OAO Russian Railways.
What We Calculated And How We Did It
SPECIAL PROJECT: / Rating of operators
Each self-respecting branch of the economy has a way of rating itself. Our magazine was among those who found it necessary to create a table of the best railway operators in Russia. The feedback we received from our audience shows that the need for such a project, which is to become an annual one, is serious enough. The ratings were created in cooperation with information agency INFOLine and is based on the data received from the companies themselves.The Advantage of Railways Is Its Low Price
COMPANY / Doing Business in Russia
IKEA has worked in the Russian market for eight years. Per Kaufmann, Director General for Russia andthe CIS, talks about the company’s interaction with cargo carriers, methods to improve the competitiveness of railway transportation and the potential of the Russian transport market.
Show Your Rating, Please
PRODUCTION AND SERVICES / finances
The world’s financial crisis will no doubt have one fundamental consequence – a long-term toughening of credit quality requirements demanded of potential borrowers. Because of this, the question of credit ratings is becoming urgent with respect to the many Russian transport companies which have not only started using banks actively but are also thinking to sell shares by means of an IPO.Manufacture of Double-Deck Wagons in Russia: Choosing Partners
PRODUCTION AND SERVICES / Rolling Stock
OAO RZD has announced a tender for the production of double-deck wagons for the company’s needs. Three global concerns – Bombardier, Alstom and Transtech – are taking part in the tender. Its results will be announced soon but the most intriguing part of the project is that the compulsory location of manufacture is in Russia. Specialists forecast that it will prompt a number of problems.
The Way to Clients’ Hearts Goes Through Exhibitions in Russia
PRODUCTION AND SERVICES / Exhibitions and Symposia
A lot of productive and “resonant” projects in the transport-logistical sphere have been launched in Russia within the last few years. Each of them had their own orientation, specificity and audience. The RZD-Partner International gives here a review of industrial exhibitions, conferences and forums with the purpose of helping its readers understand which of them are worth visiting.
Statistics and Documents
PRODUCTION AND SERVICES
In January-September 2008, the transport throughput in Russia amounted to 3,755.2 billion tonne-kilometre (t/km), of which 1,625.7 billion t/km was carried by railway, 164.4 billion t/km carried by road haulage, 63.1 billion t/km by sea, 52.5 billion t/km by river, 2.8 billion t/km by air transport and 1,846.7 billion t/km by pipelines.
