OREANDA-NEWS. June 23, 2010. A meeting of the Inter-Regional Roundtable was held today on the topic of securing stable rail freight haulage in northern Russia as Russian Railways (RZD) OJSC gets reformed. In attendance were representatives of the Northern Railway and Freight One, as well as partners and customers of Freight One’s Yaroslavl branch such as Slavneft OJSC, Lukoil-Komi LLC, Ammofos OJSC, Severstal-Resource CJSC, Arkhangelsk Sea Commercial Port OJSC, Arkhangelsk Plywood Factory CJSC, Zheshart Plywood Plant OJSC, Solombala Pulp and Paper Mill OJSC, Magistral NefteOrgSintez CJSC, Vologdabioexport LLC and others.

The event was organized by Freight One’s Yaroslavl branch. The topics of discussion were how to create a model of the freight transportation market that is optimal for the regional economy, the cooperation of Freight One’s Yaroslavl branch with shippers in the north of Russia, and optimizing collaboration between freight shippers and owners of rolling stock while RZD gets reformed.

Igor Asaturov, Freight One’s First Deputy General Director for Commerce and Production, noted in his speech that since Freight One opened two years ago, the company has been hauling freight throughout the RZD network, thus helping its customers to operate smoothly. Despite the general economic slowdown, 2009 was a good year for the company as it continues to increase haulage through flexible pricing. Rates were reduced at the beginning of the recession and are now being returned to the pre-recession level. Igor Asaturov shared his plans for the future, saying that in late 2010 the company plans to 1) upgrade its rolling stock, 2) implement information services for its customers, 3) upgrade the washing and steaming stations where tanks are prepared for loading with oil and petroleum products, and 4) form Freight One Group.

Asaturov praised the Yaroslavl branch for being the leader in terms of service quality and growth among Freight One’s branches.

Particular attention at the meeting was paid to the introduction of innovative rail traffic management methods. "The time has come to apply the latest technologies to the transport of goods. We must continue the transition to paperless communication and electronic signatures, which reduce costs and streamline collaboration with shippers," said Andrei Sidorov, Head of the Northern Transport Servicing Center.

"We’re successfully implementing an automated car routing system and updating the locomotive fleet in the north. There are currently no intractable issues related to our collaboration with Freight One" said Valentin Semkin, Deputy Head of Traffic Control of the Northern Railway.

During the discussion, special attention was paid to ensuring stable freight haulage as Freight Two gets formed this year. The new market model will ensure customer service throughout the public railway network. A full-fledged competitive environment will be formed for customers that will give them a range of services for every budget. "The market model will be very stable, ensure a balance between competition and efficiency, keep everyone honest and prevent dumping. It will also create an incentive to update the fleet and innovate in this segment of the business" said Asaturov.

Yuri Shifrin, Director of Freight One’s Yaroslavl branch, told those gathered that the branch was taking the necessary steps at the regional level to grow its business, had a stable work load and was maintaining high standards. It now accounts for 29% of the total haulage on the Northern Railway. In the first 5 months of 2010, the branch hauled 6.4 million metric tons of freight, including more than 2.1 million tons of coal, more than 1.8 million tons of ferrous metals, 613,000 tons of oil and petroleum products and 446,800 tons of nonferrous ore. The branch is steadily increasing its haulage; its monthly growth rate in 2010 averaged 3%. This was made possible thanks to the branch’s customer-oriented approach, long-term partnerships with the largest companies in the region, ability to take responsibility for much of the transportation process, and high service standards.

The partners and clients of the Yaroslavl branch noted in their speeches the smoothness of the branch’s operations and those of Freight One in general, along with the flexibility of the company’s economic policies and its high professionalism.