The launch of the joint transport operator of Russia, Belarus and Kazakhstan will have a positive effect in the Russian railway transport market and, although this process is made difficult by several factors, the existing operators and the international situation will stimulate the liberalization of the freight transport market.
The project of the new operator is launched after in November 2013, the three railway companies from the participating countries signed the program of the operator’s activity. According to estimations, the project will significantly benefit the owners of the company and of regional countries. According to the business plan, the volume of freight carried by OTLK will exceed 4 million tonnes by 2020 and the turnover will reach USD 1.6 Billion.
“The establishment of the new joint operator of Russia, Belarus and Kazakhstan will impact on the Russian railway system determining the market liberalisation. It will ensure freight transport from Russia, the country’s strategy including the growth of transport volumes”, declared Ivan Khodov, Deputy CEO, Far East Landbridge.
Apart from this project, with significant impact in the sector, international trends represent a key factor in changing the system. Thus, the crisis has affected railway transport in both Russia and the EU triggering the downfall of activity and freight volumes. “Europe has experienced a drop of 20% in volumes. Also, the companies affected by crisis have fired part of the employees, but the positive side of the crisis consists in the implementation of restructuring programmes. For Russia, railway transport is one of the most important economic sectors, but the development of RZD has been affected by the crisis. Thus, we insist more and more on market liberalisation. There is a national pressure insisting on RZD’s monopoly, but the economic situation and international trends on the repositioning of railway transport and activities, including the process for the privatisation of national companies in many countries, are reasons enough to determine the liberalisation of the Russian market”, explained Khodov.
In order to increase competition and performance, over the last two decades the EU has determined the liberalisation of the railway freight transport market and Russia wants to open its market to competition as well. “Even though RZD is trying to maintain monopoly in the market, private companies will continue to carry out their transport activities and to modernise ser-vices. The liberalisation process of railway freight transport in Russia will continue, irrespective of RZD’s opinion or will”, said Khodov.
The private operators (20) support the necessity of market liberalisation to deve-lop the segment and to improve the situation of the rolling stock fleet which doesn’t look too good. Thus, in order to improve the situation of the whole market segment, including the vehicle fleet, private operators believe liberalisation is the only solution. Traction services should be libera-lized as part of the railway reform because the number of locomotives is every day smaller. Currently, there are 90 coaches to one locomotive, while the average length of a train is of 71 coaches. A 20% deficit is recorded and the system could no longer face this situation without liberalisation. It should be mentioned that the governmental strategy on transport development in Russia stipulates the development of transport competition and the establishment of private carriers.
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