Text 4 . Joint Stock Company Russian Railways
In the past Russian railways were built as part of the national development plan for strategic and security reasons. The system entirely belonged to the Railways Ministry, a state within a state. It was completely owned, regulated and operated by the government. However, the funds from the government became insufficient to keep the railway in good operating condition. In response to the increasing needs of economy, the system was completely renovated.
Reforms started in September 2003 with the establishment of the joint stock company Russian Railways (RZD). The Russian Federation became the only shareholder of the company and delegated shareholder control to the Government.
Being a large monopoly of vital strategic importance, JSC Russian Railways is regulated by several governmental bodies with different functions. Thus, the Ministry of Transport and Communication is responsible for the regulation and licensing of the railway industry. The Ministry of Economics Trade and Development approves RZD strategic plans and the key budget parameters. The Federal Tariff Service answers for the tariff policy and electrification of the railway industry. The Ministry of Finance is responsible for taxation and subsidies.
JSC Russian Railways is the sole owner and operator of the railway infrastructure in Russia. The company's assets include track depots, stations, switching facilities and dispatch centres. The company has the largest freight rolling stock and operates all the passenger service rail assets. It has the largest locomotive fleet.
RZD is constantly expanding and upgrading its domestic and international services. The company provides maximum comfort and reliability for all passengers, including new rail-air links, luxury compartments and suburban transit trains.
The new high speed Sapsan trains are the pride of the company. The trains were developed by Siemens specialists with the involvement of RZD representatives and higher education institutes. The Sapsan trains fully comply with the Russian Federation safety standards. Their design ensures reliability, energy, efficiency, safety and comfort for passengers and personnel.
Nowadays RZD is successfully integrating into Eurasian transport infrastructure. Russian railways cooperate with European and Asian railways and have common routes with them.
Questions for discussion:
1. How were Russian railways managed in the past?
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2. When and why was JSC Russian Railways established?
3. What governmental bodies regulate JSC Russian Railways?
4. What corporate structure does the company Russian Railways have?
5. What are RZD assets?
6. Why do you think RZD is a company of vital strategic importance?
7. What does the company Russian Railways provide for passengers?
8. Who worked on the project of the Sapsan trains?
9. Why do you think the Sapsan trains are fully reliable and energy efficient?
10. How is RZD integrating into Eurasian transport infrastructure?
Text 5 . Railway Reforms in Russia
In 1991 the Soviet Railway System broke into the individual national railways of CIS countries. The Ministry of Railways remained the only structure in Russia to control state regulations and economic activities of Russian railways. However, severe competition between other transport modes and railways made the latter completely renovate their system. It became clear that successful reforms in the railway sector required separating regulation from business. In 1998, President Yeltsin approved a concept for the structural reforming of the Federal Railway Transport. It consisted of three different phases.
Phase I was completed in the autumn of 2003, with the establishment of the Joint Stock Company Russian Railways (RZD). The company assumed the assets and the functions of the former Ministry of Railways.
RZD primary mission is to satisfy the market demand in transportation services, to increase effectiveness of operations and to improve the quality of services. Much of this work is still to be done.
Phase II is close to completion. RZD is forming multiple subsidiaries for passenger service, non-core business and refrigerator transportation. Retaining its monopoly on infrastructure, locomotive fleet and freight business the company is phasing out cross-subsidies from profitable freight operations to passenger service.
Phase III is a subject to modification, depending on the industry condition. However, its task lies in selling operating licenses for selected passenger services and independent operators. RZD is planning to increase competition from private rail operators through partial privatisation of Russian railways or some of their enterprises.
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Safe control and supervision of the national railway usage is ensured by the Federal Law of Management and Disposal of Railway asserts.
Questions for discussion:
1. What happened to the former Soviet Union Railway System?
2. What was necessary to do for successful reforms in the railway transport sector?
3. What concept did President Yeltsin approve?
4. What happened in the autumn of 2003?
5. What did Russian Railways get from the former Ministry of Railways?
6. What is the current mission of RZD?
7. What are the main targets of Phase II?
8. Why is Phase III a subject to modification?
9. What is the main task of Phase III?
10. What is RZD planning to increase?
Text 6 . British Railways
Britain has one of the most efficient and heavily used railway systems in the world. However, freight and passenger service now operate without subsidies from the Government and are in direct competition with other forms of transport. British Rail has а computerized freight information and traffic control system known as TOPS (Total Operations Processing System). In Britain а network of intercity service operates at speeds of up to 100 mph (161 km/h). On some lines the speed is raised to 125 mph (201 km/h).
The 1970s saw British Rail introduce high speed diesel train services. The InterCity 125 High Speed Train (HST) operated successfully and it increased the number of passengers improving British Rail's finances. The InterCity 125 was an outstanding success and is still in use.
British Rail also developed the world's first tilting train - the Advanced Passenger Train (APT) achieving 150 mph (241 km/h). The APT was powered either by electric motors or by gas turbines, and it used conventional tracks. The aim of the tilt was to minimise discomfort to passengers caused by taking the curves at high speeds.
Between 1994 and 1997 British Rail was privatised and passed to Railtrack. Privatisation made improvement in passenger service. But the public image of rail travel was severely damaged because of significant accidents. After these accidents Railtrack imposed over 1,200 speed restrictions across its network. Extremely costly nationwide track replacement programme was started.
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Another interesting project of British Railways is “Thameslink Programme”. The project includes the lengthening of platforms, station remodeling, new railway infrastructure such as viaducts and additional rolling stock.
In recent years, there has been a significant increase in demand for rail transport in Britain. Railways operate in direct competition with road hauliers and airlines.
Questions for discussion:
1. Do British Railways get subsidies from the Government?
2. How is the British computerized freight information and traffic control system called?
3. What speed does British intercity service operate at?
4. What do the abbreviations “HST” and “APT” stand for?
5. When and why did British Rail introduce HST and APT?
6. What speeds were achieved by these systems?
7. What happened in the British railway service between 1994 and 1997?
8. How did authorities improve the situation on the rail track?
9. What does “Thameslink Programme” include?
10. What do British railways compete with?
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