OREANDA-NEWS. February 01, 2010. Vladimir Yakunin, President of Russian Railways, spoke at the roundtable "Reform of Rail Transport in Russia: State, Problems and Prospects", which was organised by the State Duma Committee on Transport. According to Yakunin, during the reforms underway since 2001, the demand for transport has been met in a sustainable manner, while simultaneously the proportion of railways as part of the overall transport market has increased, reported the press-centre of Russian Railways.

Thus, turnover between 2003 and 2008 increased by 26.6%, rail transport as a proportion of total cargo turnover increased by 3.7 percent to 42.7% (including pipelines), transit through Russia increased by 75% and the proportion of passenger rail transport in general passenger turnover increased from 32 to 37 percent. Since 2003, labour productivity has increased by 55%, and the cost of transport in real terms has decreased by over 15%.

"The proportion of transport in the country’s economy has been falling consistently, from 18.2% in 2003 to 13.8% in 2008. These data indicate the consistent upward trend of the main indicators of rail transport," said Vladimir Yakunin.

However, he also stressed that the rates charged by Russian Railways set by the government are below the rates for industry as a whole, which has significantly reduced the possibilities for investment in infrastructure.

"Federal compensation for the lack of indexation of freight rates in 2009 amounting to 50 billion roubles did of course ensure the Company’s stable operation, but it focused primarily on supporting our economy and our industry. Russian Railways is also the most demanding consumer of products manufactured in Russia," said the Company’s President.

According to Vladimir Yakunin, currently under consideration is the possibility of reducing the state subsidy for 2010. If such a decision is taken, it will inevitably require adjustments to the Company’s investment programme.

Currently, the investment shortfall of Russian Railways up to 2015 is 1.4 trillion roubles, including 380 billion roubles of state subsidies and another 1 trillion roubles out of the investment programme.

"Neither of these mechanisms is working at the moment. This will affect the speed at which assets become obsolescent and the overall development of Russian Railways," said Vladimir Yakunin.