• Home
  • Relevant Topics
  • Aleksandr Davydenko: on draft concept for reforming the system of Russia’s inland waterways management
  The version for the print

  • 2009 April 10

    Aleksandr Davydenko: on draft concept for reforming the system of Russia’s inland waterways management

    On April 8, 2009, RF Minister of Transport held a meeting to discuss a draft Concept for reforming the system of Russia’s inland waterways management.

    When opening the meeting the Minister said that inland water transport, like any other industry which has undergone or is subject to reforming, has not been being reformed for a long period. Budget financing is not sufficient. The industry is not attractive for a private business. The tariff system is not efficient thus making the water transport less competitive as compared with other types of transport. All this suggests the necessityto hold a reform. According to the Minister, this issue is to be considered by the RF Government by the end of May.

    PortNews provides the summary of the report of Aleksandr Davydenko, head of RorMorRechFlot (Russia’s Federal Agency of Marine and River Transport), on the concept for reforming the system of Russia’s inland waterways management.

    As of today, 16 federal state enterprises including 15 state basin departments of inland water transport, FSE River Administration of Moscow Basin as well as FSUE Moscow Canal manage and maintain IWW and hydraulic engineering structures at the level of basins. They comprise 92 branches.

    In 2008, total financing amounted to RUR 11.5 bln including some RUR 7 bln for routine maintenance (without tax) and RUR 4.5 bln for capital construction.


    The management system formed in the industry does not cover the entire range of issues related to regulation and development of transport infrastructure. Sometimesit directly contradicts the current legislation.


    It should be noted that inland waterways is the only system of transportation not to undergo an administrative reform.

    In 2004, the Decree of RF President No 314 “On the system and the structure of federal executive authorities” specified the necessity to reform the management system including that of the inland waterways of the Russian Federation. It was a ground for development of the draft Concept and introduction of amendments into the Inland Water Transport Code – core document regulating the activities of the river transport.

    On the Concept development process

    Federal property in river ports is to fall under operating control of RosVodPut FSUE which is under establishment today.

    When developing the draft Concept the foreign system of IWW management was studied.


    Having carried out a comparative analysis of 4 variants for reforming the system of Russia’s IWW the present Concept has been developed.

    The IWW management system is proposed to be arranged basing on functioning of:

    • federal state enterprises – administrations of river basins on the basis of the existing state basin departments of waterways and navigation – for implementation of state regulation functions at inland waterways and in river ports, as well as to strengthen control of safe navigation and operation of hydraulic engineering structures.
    • federal state unitary enterprises with branches of IWW basins – for maintenance of inland water ways and implementation of works at water transport infrastructure facilities, maintenance of state-owned berth and port facilities.


    It seems reasonable to let FSUE Moscow Canal continue operation as a separate commercial entity at the first phase.


    The function on maintenance of inland waterways is to be handed over to the federal state unitary enterprise Russian Waterway (RoVodPut) established on the basis of the existing FSUE.


    Financing

    Apart from strengthening control of safe navigation and operation of hydraulic engineering structures the proposed reform will help hydraulic engineering structures attract additional financing from off-budget sources for maintenance of inland waterway infrastructure including port hydraulic engineering structures.

    Stage-by-stage approach to reform

    The Concept envisages implementation of the reform in two phases.


    Reform results

    Thus, implementation of the above measures will make it possible to:

    1. Divide powers of administrative authority and business (economic) activities.
    2. Optimize the functions of federal executive authorities.
    3. Apply a comprehensive approach to functioning and development of inland water transport infrastructure including river ports.
    4. Attract additional financing from off-budget sources for infrastructure maintenance.
    5. Ensure navigation safety and order in river ports.

    The proposed reform of IWW management system is a long-standing need and it will contribute to the development of inland water transport as a whole.
 All relevant topics...