Magazines — RZD-Partner International — 4 (20) October - February 2009-2010
4 (20) October - February 2009-2010
Contents
Editorial
EDITORIAL
The current period of the Russian railway transport reform is coming to its end. There are different opinions in Russia about whether the reform was successful and reached its goals set by the government more than ten years ago. But what remains beyond any doubts is the fact that the situations in railway cargo transportation now and then are two different things.The right rail reform to meet the needs of the economy
THEME / reform is on the right track
Rail reform has already been underway in Russia for more than ten years, but the debate about whether or not the industry actually needs reform has never ceased. Some believe that reform should be stopped during the economic crisis, while others believe that this is time to hand over the dominant role in passenger and freight transport to private business which, they maintain, is ready to solve all the problems and strategic challenges facing the industry.
The New Directorates Set Out on Their Journey
THEME / reform is on the right track
The Russian Railways JSC will change its four-level system of transportation control (head department, territorial branch, branch departments and stations) to a three-level system and eliminate ‘the redundant link’, i.e. branch departments, which will no longer participate in the transport process. The new system includes central and regional directorates (on the territorial branch level) as well as regional centres.From regulation towards deregulation
THEME / reform is on the right track
The government of the RF adopted a resolution on the state regulation and control of tariffs, fees, charges and natural monopolies work on rail transport, which forms the framework for the entire system of tariff regulation. Among the innovations is the new six-component structure of the tariff, marginal price fixing, and the opportunity to set the price for services within selected market segments or on particular directions. The industry’s experts believe that the quality of debate surrounding the statutory acts, which will determine the mechanisms of how these new ideas will be implemented, could ensure the success of these regulations.
Panorama. Economics
ECONOMICS / Panorama
Financing of the RF transport industry by the federal budget in 2010 will stay at the level of 2009, RF Transport Minister Igor Levitin said at the II international conference “St Petersburg – the Maritime Capital of Russia. Transport and Transit Potential” held in St Petersburg on September 22.Three aspects of Kaliningrad transit
ECONOMICS / CIS and Baltic States
Due to the growth of tariffs on transit transportation via the territory of Lithuania and Belarus, the volume of cargo carried via the Kaliningrad Railway (KZD, an affiliate of RZD) in early 2009 fell by almost 60% year-on-year. After a number of trilateral meetings, where the issue of tariff policy optimisation was discussed, in May-July 2009 the Lithuanian and the Byelorussian railways gave discounts on some cargoes transit transportation to the Kaliningrad region. Were these measures effective? Were they enough to restore freight flow?
Rosmorport
ECONOMICS / who is who
Federal state unitary enterprise Rosmorport was created by the regulation of Government of the Russian Federation ¹705 “On the Improvement of Public Administration System in the Sphere of Commercial and Specialised Seaports Management” (September 25, 2002), by order of the Ministry of Transport of the Russian Federation ¹154 “On Measures for Realisation of the Regulation of Government of the Russian Federation ¹705” (November 28, 2002) and by the decision of the Ministry of Property Relations of the Russian Federation ¹1069-p (April 7, 2003).We are interested in our German partners’ know-how
ECONOMICS / Doing business in Rossia. Germany and Rossia
The current level of cooperation between Russian and German authorities, as well as between transport companies, is enabling both sides to handle urgent challenges effectively. Nevertheless, the dialogue needs further reinforcement. Igor Levitin, Minister of Transport of the RF, is sure that both sides have much to offer each other in view of the new technologies available.
Recipe for success is to reduce the number of barriers
ECONOMICS / Doing business in Rossia. Germany and Rossia
Walter Jürgen Schmid, the Ambassador Extraordinary and Plenipotentiary of the Federal Republic of Germany to Russia, comments on the prospects and the problems of Russian and German businesses’ interaction in the transport sector.
And of Course Vodka
ECONOMICS / Doing business in Rossia. Germany and Rossia
The Russian-German transport and logistics business is developing more and more actively. Many German companies have had established representative offices for several years now and are actively promoting their logistics concepts in the market. Nevertheless, representatives of this sector do not gloss over the difficulties they face in Russia. Usually they are non-transparent customs legislation and bureaucratic formalities in transportation and cargo registration.
New Technologies in Exchange for the Market
ECONOMICS / Doing business in Rossia. Germany and Rossia
The active participation of German companies in the Russian railway machine-building sector started several years ago. Since that time, the total sum of investments in the sector made by German parties have exceeded €800 million. However, another tender important for German companies will be held soon – the one on supplying rolling stock for the Olympic Games in Sochi. Also, they are eager to participate in other projects. Russia’s machine-building sector needs modern technologies badly, and Germany is the world leader in this sphere.
Panorama. Transportation
TRANSPORTATION / Panorama
TransContainer and Byelorussian Railway signed an agreement on data exchanging in order to improve the organisation of cargo transportation in containers via the Brest-Terespol border crossing. The agreement was concluded on September 28 at the 18th plenary session of the Coordinating Council on Transsiberian Transportation (CCTT).Private Companies are Expressing their Interest in Coal
TRANSPORTATION / Cargo and routes
Just recently Russian Railways JSC was complaining about a shortage of rolling stock for coal transportations, appealing to private operators for help in organisation of sending this cargo well-known for its large loads. Private companies did not hurry to join in. Coal was a low-profit cargo; its transportation did not recoup itself. Today the share of RZD’s coal-carrying public park has become less than 50%. The crisis has definitely “helped” it.Dit nonse
Coercive Restructuring
TRANSPORTATION / Cargo and routes
The debate over the imposition of exclusive rates for transportation of perishable goods in refrigerated containers is still active in Russia. Operators hope to get a 13% discount for container transportations. Experts note that the new tariff will change the structure of the rolling stock in the segment of refrigerated cargo transportation on the RZD network.Sellers of Air
TRANSPORTATION / Air Transport
Nobody envies the life of foreign airlines in Russia. In fact, they do not have any reasons to develop business in this country. There are not only the most expensive in the world kerosene, old aviaports and ancient runways here, but also high royalties for using the country’s airspace. Those players, for whom it is absolutely necessary to land in Moscow, prefer private, rather than state, airports. However, in its turn, Moscow is finding own arguments to justify its way of conduct, though the final result is still the same - Russia is closed for foreign air carriers.
What consequences will the price dumping have?
TRANSPORTATION / Auto Transport
The world economic crisis impacted the activity of the whole transport sector in Russia, and particularly cargo transportation by road haulage. A decline in production volume appeared in the major industries, first of all in the building sector and ferrous metallurgy and chemical industries. Export of Russian production fell. All these caused almost a 20% decline in the demand for road transporters’ services.
Panorama. Company
COMPANY / Panorama
First Container Terminal (FCT) and ROLIS (parts of NCC group) announced the implementation of electronic digital signatures in FCT’s document execution. This is an example of know-how in Russia’s stevedoring business complying with universal stevedoring standards. Since October 1, 2009, all import containers issued from FCT will have electronic documents formed by shipping and forwarding agents in Conterra information system. These documents will be signed by electronic digital signature.To Mongolia With Love
COMPANY / International cooperation
RZD has finally established itself as the major partner of, and a probable investor in, Mongolia. Despite the crisis, falling cargo turnover and a slide in the nation’s profits, the Russian carrier will help its Mongolian colleagues to build the railway sector and will participate in the development of its largest mineral deposits. Experts are sure that it is more likely a political step, but RZD hopes to benefit from it.
Time-proved cooperation
COMPANY / International cooperation
The degree of interaction of the Oktyabrskaya Railway (an affiliate of RZD) with the world’s leading transport and engineering companies has reached a new level. Large infrastructure projects, especially those in the high-speed railway sector, are either being carried out now or in the near future.
2009: Warehouse logistics is no longer the focus of attention
PRODUCTION AND SERVICES / logistics
Warehouse real estate in central Russia is not going through the best of times. The share of vacant premises in the warehouse real estate market has reached
a record level of 34%. Just a year ago experts spoke about a warehouse boom
and emphasised a noticeable revival in this market sector - the demand was growing and supply could hardly catch up with it.
The “Test Drive” Is Moving Towards Completion
PRODUCTION AND SERVICES / High-Speed Transportation
Last summer a trial run was done from Moscow to St Petersburg by “Sapsan”, the first high-speed train in Russia. It will be put into regular commercial service in December this year. Now company managers are carrying out further technical tests and certification of the new train’s components. The work of “Sapsan” is currently attracting everybody’s attention because its successful operation will start the large-scale construction of high-speed lines, in which European suppliers can take part as well.
New Times - New Requirements
PRODUCTION AND SERVICES / machine enginering
In conditions of economic instability, the State is trying to support the engineering sector first of all, including transport, where many people work. The RZD-Partner International magazine asked Valentin Gapanovich, Senior Vice President and Chief Engineer of RZD, to define the main trends of the railway engineering development in near future.
Inspecting with Special Attention
PRODUCTION AND SERVICES / Customs
The crisis and the resulting fall in foreign trade figures has led to a decline in State Budget revenues from the Federal Customs Service (FCS), which is among its largest sources of income. In these circumstances, the FCS has little choice but to take different steps to compensate for the losses. Thus it toughens its relations with businesses.
