Russia signs partnerships and conquers Eurasia

Feb 24th, 2012 | Category: Articles, Current Issue ID, February 12, Policies & Strategies

In 2008, the Russian Government approved the Railway Transport Development Strategy on the modernisation of the infrastructure in 2008-2015 and the extension of the infrastructure (2016-2030) for the development of new areas of national economic growth.

By 2030, RZD estimates to build 20,000 km of new lines requiring investments of up to RUB 4.2 Trillion (around EUR 105 Billion) coming from the state budget and private investors. These new lines will ensure the transport in industrial areas and new mineral deposits. The modernisation of the existing infrastructure requires investments of up to RUB 3.2 Trillion (EUR 80 Billion) and stipulates the rehabilitation and modernisation of the Far East tunnels, Siberia, Black Sea region and Russia’s territory. For meeting this objective, Russian Railways initiates projects in partnership with different countries for the implementation of the latest technologies and for the optimisation of railway competitiveness throughout the world. “To maintain and develop optimal relationships with the foreign partners in the railway industry, a company that has to prove the efficiency of its management and its credibility in signing partnerships”, declared Vladimir Yakunin, at RZD’s Second Railway Congress held at the end of 2011.
One of the main objectives of the Strategy is the integration in the Eurasian transport system and in order to do that, RZD seeks to increase the role of the railway network in the international transport market, to consolidate its competitiveness compared to other alternative transport modes and to meet the transport potential of the Russian network as efficiently as possible. One of the key fields of activity is the development of partnerships with CIS, Baltic States and Finland for optimising the 1520-mm gauge lines and the implementation of partnerships with Slovakia, Ukraine and Austria for the construction of  Košice-Vienna line in conformity with broad gauge standards. Construction works are expected to be completed in 2013-2015 and the line to enter operation in 2016.

Partnerships for competitive services

The development of the infrastructure for a market favourable to railway transport requires enhanced competitiveness. Companies face this demand by creating joint-ventures with foreign partners.
One of the most important partnerships set up by RZD is that with Deutsche Bahn, which resulted in the company called Trans Eurasia Logistics (TEL) whose main goal was to boost the quality of transport ser-vices. Also, the development of logistics centres in Bely Rast (near Moscow), in partnership with DB will increase the capacity of containers (290 thousand/year), this involving infrastructure investments of up to EUR 500 Million.
Russia collaborates with China in the delivery of services on China-Russia and China-Europe routes.  For this purpose, in 2009, the two countries set up the company Container Transport Corp.
For ensuring the competitiveness of its services with Finland, Russia initiates projects on the modernisation of the infrastructure. The two countries have set up the joint-venture ContainerTransScandinavia. The national companies of the two countries managed in 2010 to maintain exclusive tariffs for the transport of containers, coal and petrochemical products.
The consolidation of transport links in Eurasia depends on the extension of a strategic cooperation and on the development of logistics chains and Russia plans to build 40 such centres by 2015. Investments in plan by 2030 are also estimated at EUR 285 Billion.

[ by Pamela Luică ]

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