Committee on Investment Policy and Public-Private Partnership of Russia's Union of Industrialists and Entrepreneurs (RUIE) jointly with the PPP Center of VneshEconomBank and the Center for Basic Research of State University - Higher School of Economics presented the results of a study on reforming the railway industry, the Russian Railways press service reported.
"The Role of the State Railway Monopoly in the Processes of the Government Management of Economic Complex of Russia" study has been presented at the press center of the RUIE.
The authors of the study presented their assessment of the role of the RZD, Russian Railways as the state-owned monopolist in rail transportation, which has been reforming the public sector while maintaining its sustainable development.
The experts believe that such a single common network company as RZD provided optimal conditions for govt. regulation of safety and total transportation costs.
The dominating state-run company has ensured the efficient management of the industry development program ("Strategy-2030"), implemented through the budget, and provided funds spending control.
In addition, the company provides the predictability of the process of reform in the railway industry for the transition period.
According to the experts, to continue successful industry reform two key measures should be undertaken: the establishment of the Second Cargo Company (SCC) as a 100-percent subsidiary of Russian Railways, RZD OJSC; the transfer to the new company the fleet of freight rail cars owned by RZD OJSC, while the services of locomotives and the entire railway infrastructure will be managed by state-owned RZD.
"The RZD, as a single carrier of the country with its single fleet of freight locomotives will allow applying the system of tariff-based pricing based on the transportation costs of a particular shipment", the document reads. Besides, the centralized management of cargo traffic will help contain the rate growth.
The RZD as a single carrier may ensure transportation safety, as well as guarantee the shipments of goods across the entire railway network (including the carriage of goods for the govt. needs), the experts said.
"The Role of the State Railway Monopoly in the Processes of the Government Management of Economic Complex of Russia" study has been presented at the press center of the RUIE.
The authors of the study presented their assessment of the role of the RZD, Russian Railways as the state-owned monopolist in rail transportation, which has been reforming the public sector while maintaining its sustainable development.
The experts believe that such a single common network company as RZD provided optimal conditions for govt. regulation of safety and total transportation costs.
The dominating state-run company has ensured the efficient management of the industry development program ("Strategy-2030"), implemented through the budget, and provided funds spending control.
In addition, the company provides the predictability of the process of reform in the railway industry for the transition period.
According to the experts, to continue successful industry reform two key measures should be undertaken: the establishment of the Second Cargo Company (SCC) as a 100-percent subsidiary of Russian Railways, RZD OJSC; the transfer to the new company the fleet of freight rail cars owned by RZD OJSC, while the services of locomotives and the entire railway infrastructure will be managed by state-owned RZD.
"The RZD, as a single carrier of the country with its single fleet of freight locomotives will allow applying the system of tariff-based pricing based on the transportation costs of a particular shipment", the document reads. Besides, the centralized management of cargo traffic will help contain the rate growth.
The RZD as a single carrier may ensure transportation safety, as well as guarantee the shipments of goods across the entire railway network (including the carriage of goods for the govt. needs), the experts said.