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Feb 29, 2016

"We are interested in attracting additional freight volumes from Japanese companies," says President of Russian Railways

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Oleg Belozerov, President of Russian Railways, has taken part in the forum "Russia-Japan Business Cooperation Priorities." The forum was organised by the Ministry of Industry and Energy of the Russian Federation and was held in Tokyo on 29 February 2016.

In his speech at the session Russian-Japanese Cooperation in Modernising Infrastructure, the Company President noted that Russian Railways attaches great importance to developing relations with Japanese companies, primarily in the field of transport and logistics. The RZD Holding successfully cooperates in particular with the major companies of Japanese industry, such as Toyota, Mazda, Mitsubishi and Subaru.

"I believe that our cooperation has significant potential. This view is confirmed by the fact that in recent years, freight rail transport between the two countries has witnessed an overall positive trend," said Oleg Belozerov.

Transit freight traffic between Russia and Japan in 2015 increased almost nine-fold due to shipments to Japan, and amounted to more than half a million tons. Transit container freight in 2015 increased by 17% compared to 2014 and totalled more than 2,400 Twenty-Foot Equivalent Units (TEU). The beginning of 2016 was also marked by a positive trend: in January, the volume of traffic shipped in large containers by rail between Russia and Japan reached almost 5,000 TEUs, 7% more than in January 2015, whereby the volume of container traffic increased due to an increase of imports from Japan by 78% to a total of 779 TEUs.

"I hope that this positive trend will continue," said the President of Russian Railways. "We are interested in additional freight volumes from Japanese companies being shipped on the infrastructure of Russian Railways,"

Oleg Belozerov also noted that in accordance with the instructions of Russia's leaders, the Company is actively developing its infrastructure in Siberia and the Russian Far East, modernising the Baikal-Amur Main Line and Trans-Siberian Railway and developing approaches to the ports of the Far East. In this context, according to the President of Russian Railways, work on the creation of a single Russian transport space requires both public and private investment.

"We are interested in attracting investment from Japan to develop transport infrastructure, particularly in the Far East. In the first instance, we propose to invest in projects that focus on the development of terminal and logistics infrastructure in the areas where freight traffic on International Transport Corridors (ITC) is formed and concentrated. This means creating terminal and logistics centres as freight hubs at Moscow - Severyanin and Lyublino."

Belozerov also said that the Company was working on improving logistics schemes for freight delivery. In particular, Russian Railways has developed a new transport service called the Baikal Shuttle for transporting goods from Japan and other Asian countries from the port of Yokohama to Moscow. The Baikal Shuttle makes it possible to deliver freight door to door on a regular and frequent basis with strict adherence to the timetable over Russia's vast distances. This new service will reduce the delivery price gap for containerised cargo from the port of Yokohama to Moscow, and will also reduce the delivery time from 42 to 25 days.

"I believe that our joint initiatives can and should lend a powerful impetus to economic development in both Russia and Japan," concluded the President of Russian Railways.

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