Magazines — RZD-Partner International — 1 (17) February-April 2009
1 (17) February-April 2009
Contents
Editorial
EDITORIAL
Things in both the global economy and the Russian transport sector seem to be changing. So is the mentality of people involved in the business. What was regarded as a short-term, maybe medium-term, crisis is now considered a very long-term trend. It is almost universally accepted that the downturn could last longer than any crisis seen before.“Our Business Is Stable”
INTERVIEW
In 2008, OAO RZD (Russian Railways) demonstrated a stable growth in throughput volume, number of serviced passengers and financial results. Naturally, the crisis impacted the company’s activities but it has managed to take proper measures in time and now OAO RZD is sure about its future. Vladimir Yakunin, President of OAO RZD, spoke about it in his interview with The RZD-Partner International.
Wagon Building: A Slight Correction, Stagnation or Recession?
THEME / machine building at the interface of different market tendencies
The economic crisis has also hit the transport engineering sector - in particular the Russian wagon-building industry. By the end of 2008, the production price had fallen by 15-20% in both primary and secondary markets. Operators no longer aspire to increase rolling stock purchase volumes, blaming a lack of available assets.
The Country of High Speed
THEME / machine building at the interface of different market tendencies
According to the approved Speed and High-Speed Movement on Russian Railway Network Organisation Program to 2020, up to 1,500 km of high-speed mainline railway will be built in the country. OAO RZD Senior Vice-President Mr VALENTIN GAPANOVICH tells us how this program will be realised and what changes may be needed as a result of the financial crisis.
Does a Chinese Wagon Have Any Chances in Russia?
THEME / machine building at the interface of different market tendencies
In autumn 2008 Russian transport media published a lot of information about the possible advent of freight railcars made in China on the Russian railway network. The second half of 2009 was named “the most probable period” for launching this project. Obviously, the crisis in the sector may prevent Chinese railway production from coming to Russia.
Panorama. Economics
ECONOMICS / Panorama
On February 9, 2009, OAO RZD started work on electrifying the Tebriz – Azarshahr railway line. The contract to electrify the Tebriz – Azarshahr (TARE) line was signed on 29 March, 2008, by Vladimir Yakunin, the President of Russian Railways, and Mr Hassan Ziyari, the President of Iranian Railways (RAI), as a direct result of agreements reached in Moscow on 13 December, 2007, during the seventh meeting of the Permanent Russian-Iranian Commission on Trade and Economic Cooperation. The cost of the contract was not divulged.Passenger Reform on the Home Straight
ECONOMICS / Reform
The “Russian Railways” Board of Directors has made a decision to create an affiliated company OAO “Federal Passenger Company” by 2010, which will take over the entire long-distance passenger portfolio from the holding and play the role of national carrier. The creation of OAO FPC within the RZD structure has been approved by the Government of the Russian Federation.
Downward Spiral
ECONOMICS / baltic states and the cis: recession or temporary slowdown
The fall of the Russian transport sector into a global financial hole was rapid: the first signs of a change appeared last September; a sharp reduction in industrial production in the country started at the beginning of October; in November, the volume of rail transportation decreased by 20% compared to the same period in 2007; and in December it fell by almost 30%. The results for the whole year made it obvious that, even for complete optimists, the position of the industrial sector in Russia, transport included, was unenviable to put it mildly…
Baltic States Soften the Blow
ECONOMICS / baltic states and the cis: recession or temporary slowdown
While transport authorities and analysts are discussing all possible avenues for transport sector development in the Baltic states during the crisis, regional railwaymen and portmen are being cautious in their assessments. In their opinion, the first results will appear not later than after the first quarter of the year, and then it will be high time to think about future prospects.
Transport in the Ukraine Is Between a Rock and a Hard Place
ECONOMICS / baltic states and the cis: recession or temporary slowdown
Last year cargo transportation by all means of Ukrainian transport dropped by 0.3%. For the first time in a decade, the Ukrainian transport branch fell into minus figures, thus following the universal economic trend.
Kazakhstan: A Pleasant Exception
ECONOMICS / baltic states and the cis: recession or temporary slowdown
Despite the economic crisis, railway transport in Kazakhstan has shown quite good results in the final reports for 2008 - AO National Company “Kazakhstan Temir Zholy“ not only maintained its cargo transportation volumes but has also even exceeded the previous year.
Roszheldor
ECONOMICS / who is who
In this issue we present the structure of the main railway government body in Russia: the Federal Agency for Railway Transport.Panorama. Transportation
TRANSPORTATION / Panorama
Despite the transport market slump at the end of the year, OAO TransContainer’s financial report in 2008 highlighted quite a positive performance by the company. The volume of cargo carried on container flat wagons in Russia and abroad grew by 15% against the previous year. The number of dispatched container trains made up of TransContainer’s flat wagons grew by 2.5 times year-on-year.Trans-Siberian Railway: Deceptive “Plus”
TRANSPORTATION / Cargo and routes
2008 finished with positive figures for the Trans-Siberian Mainline: the total cargo transportation volumes in large-capacity containers on international routes increased by 14%, imports by 13% and exports by 21%. The positive statistics were impaired a little by transit cargoes, which fell 24%.Somali Pirates on the Attack: a Chance for Land Routes?
TRANSPORTATION / Cargo and routes
What consequences does the growth in the frequency of pirate attacks bring, and what ways of solving this problem are available to companies that transport cargo from the People’s Republic of China to Russia and Europe? Are there alternatives to the Aden Passage? Answers to these questions are being sought in Russia, as well as everywhere else.
The United Sky
TRANSPORTATION / Air Transport
The Russian passenger aviation transport market is experiencing significant changes - the two largest players Rosavia and Aeroflot are dividing up their spheres of influence. The trigger for the new split in the market was the jump in the price of aviation fuel in the summer of 2008 and disorder at the largest alliance AirUnion. Trends show a strengthening of the state’s position in this sector to the point of becoming the dominant character.
Russian Ports: Small Growth And Modest Hopes
TRANSPORTATION / Port
Russian sea ports demonstrated positive dynamics in 2008. Their throughput grew by 1.1% year-on-year to 454.6 million tons. Nevertheless, there are few reasons for being optimistic.
Containers on Russia’s Inner Waterways: What Are The Prospects?
TRANSPORTATION / sea transport
The share of river transport is less than 4% of the total throughput in Russia nowadays, and hardly any containers are carried along inner waterways in the country. But there are attempts to recommence the river-based container transportation that used to take place in the Soviet era.
Panorama. Company
COMPANY / Panorama
On February 2, 2009, in Minsk, representatives of OAO TransContainer and Belintertrans, affiliate and official forwarder of Byelorussian railway, signed a cooperation agreement. According to this agreement, Belintertrans will organise transportation of TransContainer’s loaded and empty platforms and containers within Belarus and promote their efficient utilisation.Russia at the Crossroads
COMPANY / OAO RZD
The throughput of OAO RZD grew by 4.8% in 2008. Transportation distance increased by 2.2%, while loading volume fell by 3%.
“Make better use of railways for international transportation!”
COMPANY / OAO RZD
Wishing to increase the effectiveness of cargo transportation between Russia and other countries, OAO RZD chose to make OOO Customs-Broker Centre (CBC) a centre for innovation. This is in addition to OOO CBC’s running of customs operations. Avtandil Gorgiladze, Director of OAO RZD Customs-Broker Activity Department tells how the new firm may affect the work of foreign business partners.
How to Deal with Russian Customs Services
COMPANY / Doing Business in Russia
Finland is one of the most important economic partners of the RF. Huge volumes of freights are being transported to the RF via Finland. That is why optimization of the customs clearance procedures is very important for the both countries. Jarko Saksa, Director of Finnish Customs Administration and Jarmo Raikka, Head of the unit LLM comment on the advantages and disadvantages of cooperation with the Russian Federal Customs service and Russian transport companies.
Warehouse Real Estate in Russia: Time to Pay the Bills
PRODUCTION AND SERVICES / logistics
Experts report that 28 A-Class Logistics Complex Engineering Design Projects have been declared in Russia at present time, but a considerable number of them have been put on hold. While estimating prospects for this sector’s development during the crisis, market participants emphasise that each region has its own peculiarities.
