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Dec 05, 2015

Belozerov: "The Company is ready to consider any joint projects with business to attract additional investment and a freight base"

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Belozerov: The President of Russian Railways, Oleg Belozerov, took part in the plenary session "Transport and the Economy: Formula of Interdependence", which was held in the framework of the IX International Forum "Transport of Russia" on 4 December 2015 in Moscow.

As the Company President noted, during the last 3 years Russian Railways has invested more than 1 trillion roubles in fixed assets. In accordance with the government's instructions, the railway infrastructure in Siberia and Russia's Far East and the approaches to the ports of the North-West and the South are being developed, the construction project for the Northern Latitudinal Route is being worked out, and plans for the development of the North - South, East - West, Primorye-1 and Primorye-2 transport corridors are under discussion.

"We are planning to increase our investment programme by 10% to 432 billion roubles next year and expect to implement all these projects by the set deadlines. At the same time, we are also actively negotiating with the owners of mineral deposits and industries with the aim of developing mechanisms to attract jointly additional investment. We believe that attracting investment to the rail industry is possible now," said Oleg Belozerov, adding that one of the prerequisites is a change in the tariff policy.

According to Belozerov, the impact on infrastructure projects is very noticeable. As a result of the modernisation of the railways in Eastern Russia, by 2020 industry will be able to export an additional 66 million tons through the eastern ports. By 2020 it is also planned to increase shipments to the ports of the North-West region to 164 million tons of freight. In addition, the construction of the Northern Latitudinal Route will enable the transportation of 24 million tons of freight from 2020.

The Company has calculated the economic effects for each project in terms of increased tax payments and insurance contributions to Russia's budget system. The development of the infrastructure of the Baikal-Amur Main Line and the Trans-Siberian Railway alone will result in almost 500 billion roubles for the country's budget, including more than 100 billion roubles which will go to the budget of Russia's Far Eastern Federal District.

"We get offers of cooperation, not only from domestic but also from foreign companies. There are proposals from companies with the involvement of funds from domestic banks. We are ready to consider all options, providing a joint project will allow us to increase the cargo base, and colleagues can expand their own business by reducing the tariff," said the Company President.

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