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Sep 19, 2009

Market Analysis * Russia - Railways Unlearned How To Transport Cargo

Moscow,Russia -The Rus Business Bews, by Pavel Kober & Vladimir Terletski -17 Sept 2009: -- The JSC Russian Railways reform has seriously complicated the life of business community. The share of empty mileage reached 42% while industrial companies are stuck for weeks with cargo they cannot shift due to railway car shortages. Only the reduction of production volumes is preventing the total paralysis of the Russian economy. RusBusinessNews observers have established that the chaos in this sphere is a consequence of the sharp drop in investments into the rolling stock and the lack of simple order in the railways... Business community, however, does not quite believe that haulage by rail would become more affordable, some of the cargo has been lost to trucking companies, says Gleb Kinder. Truckers are more flexible in their pricing policies and offer better delivery times. According to him, 90% of haulage up to 3,000 kilometres, e.g. to the Saint Petersburg port, the Urals manufacturers do by trucks...

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