OREANDA-NEWS. May 18, 2007. A Russian Government Commission on Industrial Development, Technology and Transport has approved the target model for the transport services market. According to the document, Russian Railways will remain the single carrier across the whole network. The creation of the appropriate technological, legal, financial and economic conditions to promote effective competition in transport will continue.

The document notes that an important impulse behind the development of the rail transport market is the creation of conditions to attract private investment to the locomotive fleet.

At the current stage of market development, it is planned to develop conditions capable of increasing the quantity of private locomotive owners.

To implement the proposed scheme to attract investment and develop competition, it is planned to change legislation covering “locomotive traction services” and form sustainable tariffs for transport using proprietary trains.


It is also planned to increase competition in operating freight wagons and create subsidiaries and operators from the freight wagon fleet of Russian Railways.

In order to implement a gradual reform, a joint concept for the subsequent creation of two Russian Railways’ freight subsidiaries has been developed.

The first freight company should be set up this year, with 50% of the freight wagon fleet now belonging to Russian Railways becoming part of its charter capital.

A second freight company is due to be created in 2009 after analysing the results and IPO of the first company.