OREANDA-NEWS. August 15, 2011. "In general, we achieved a positive result regarding the profit for the half year," Russian Railways president Vladimir Yakunin told reporters in Moscow on 5 August. "We are working successfully and sustainably. Despite all the uncertainty regarding the global economy, freight transport by rail is growing, although it has not yet recovered to pre-crisis levels. From January to July 2011, the volume of shipments reached 713.7 million tons, an increase of 3.7% over the same period of 2010, while freight turnover rose to 1.22 trillion tariff ton-kilometres, a rise of 6.6%", reported the press-centre of RZD. 

However, Yakunin also said that the commodity markets continue to see price increases, which in turn increases cost pressures on the Company’s expenditures, which in the first half of 2011 alone increased by 14.8%. Transportation costs at Russian Railways during the same period increased by just 3.7%, however, indicating that the Company was effectively containing the growth in costs.

Vladimir Yakunin said that steelmakers were not raising prices everywhere. In particular, the Company has reached an agreement with Evrazholding and is currently preparing a supplementary agreement to reduce prices for steel products.

The main problem faced by Russian Railways during the reporting period was that the relationship between the carrier and operating companies was still not fully developed, which is having a deleterious effect on the cargo owners.

"Our goal is to make things easy for cargo owners. Today, the holding already has less rolling stock than the operators. The main task is to develop clear rules governing the relationships between the carrier, the operators and the cargo owners. We are now working very hard at this at the moment, with the agreement of the operating companies," said Vladimir Yakunin.

During the last six months, Russian Railways transported 558.5 million passengers, an increase of 3.1%, including 65.2 million passengers on long-distance services and 493.3 million passengers on suburban commuter services. Passenger turnover grew by 1.3% compared to last year and amounted to 78.2 billion passenger-kilometres.

Vladimir Yakunin alo noted that the number of passengers travelling without paying for tickets had declined. For its part, the Company is trying to respond to the wishes and criticisms of the passengers. In particular, negotiations had just taken place with the president of Siemens, during which the possibility of localising the production of the Desiro (Lastochka or Swallow in English) electric train in Russia was discussed.

"In September we are due to sign a contract. I think that if we can achieve this, all our good intentions to update the rolling stock in the suburbs will be realised," noted Yakunin.

The President of Russian Railways also said that high-speed rail enjoys enormous demand, despite all the initial doubts. In the first six months of 2011, the Sapsan high-speed train carried 1.35 million passengers. Since the Sapsan came into operation, the Company has earned more than 10.4 billion roubles.

Turning to the Company’s social policy, Vladimir Yakunin said that in 2011 Russian Railways intended to provide subsidised mortgage loans to 2,520 employees and as part of the investment project "Construction of Technological Housing" commission 1,195 residential dwellings.