OREANDA-NEWS. On December 24, 2008 Vadim Morozov, First Vice-President of Russian Railways, reported to a full meeting of the management board about the Company’s main tasks on the production side in 2009, reported the press-centre of Russian Railways.

Morozov noted that this year, Russian Railways had to work at a time when Russia’s economy was undergoing significant changes. For example, volumes were fairly high and rising at the beginning of the year, but they have slowed sharply in recent months.

Nevertheless, the targets the Company set for 2008 in terms of increasing efficiency on the operational side were reached.

“The main aim in managing shipments in 2009 should be to shift to working based on economic criteria when measuring performance on the operational side, as Company President Vladimir Yakunin highlighted yesterday in his report,” stressed Morozov.

“Next year, the Transportation Management Department, together with the heads of the rail divisions, should implement the programme of anti-crisis measures by improving the management of traction and loading equipment and resources, optimising the use of infrastructure and achieving additional cost savings of at least 2.2 billion roubles.”

Morozov said that targets on the production side for 2009 provide for loading at least 1.055 billion tons, 19% less than this year, and achieving freight revenues of at least 757.3 billion roubles, 10% lower than in 2008.

The Company believes that in order to ensure its competitiveness, in 1H2009 it has to finalise its business development strategy and the target market for freight transport covering:

the development and adoption of normative legal documents defining cooperation between the carrier and owners (operators) of the rolling stock;

the conclusion of long-term contracts with shippers to provide integrated services for freight shipping;

the conclusion of agreements with rolling-stock owners on the terms of use of the private fleet;

the creation of a wagon exchange - electronic trading platform.

“We must first create market-based mechanisms to balance supply and demand for freight wagons and convince market participants that a unified management of the wagon fleet, irrespective of ownership, will increase the throughput and processing capacity of the available infrastructure and provide the most efficient use of rolling stock, and thus in turn contribute to the development of their business,” said Morozov.