OREANDA-NEWS. September 03, 2010. The reform of Russian Railways (RZD) OJSC must help to solve existing problems in the railway haulage market of the Far East, said business leaders participating in an interregional round table held in Vladivostok organized by Freight One’s Vladivostok branch. The event was attended by representatives of the Far Eastern Railway, the Primorye Territorial Administration, shippers, shipping companies, port administrators and owners of rolling stock.

The main topic of discussion was the creation of a second freight company (Freight Two) and the associated changes in the structure of the market. Freight One’s First Deputy CEO Igor Asaturov said a key event would occur in the reform of RZD in 2010-in October, Russia’s fleet would be fully privatized and Freight Two would begin operations.

"The creation of Freight Two is all about ensuring a healthy competitive environment and upgrading the rolling stock", he said.

He added that Freight One is ready for change, being a versatile operator with a number of competitive advantages.

"Our fleet of 228,000 freight cars is ten times the size of that of our nearest competitor. This allows us to fulfill any order and provide the types of rolling stock the customer needs according to tight schedules", he said.

Another key benefit of Freight One is its extensive branch network. The company has 14 branches, each of which independently signs operating and forwarding contracts and fully manages a fleet at its respective location. For example, the Vladivostok branch manages a fleet of more than 20,000 cars on the Far Eastern Railway.

"Each branch has its own specifics. We, for example, have achieved excellent dispatch results because of our geographical location" said Vladivostok Branch Director Viktor Osipov. "We are dispatching more than 42,000 cars a month, which is 26% of the total dispatches on the Far Eastern Railway. In early 2009, when the branch had just begun to operate independently, the number was less than 22,000 cars a month".

The participants in the interregional round table who were customers and partners of Freight One noted the reliability of the branch and the company as a whole.

"Our company is involved in hauling and forwarding inert freight to Russky Island for the construction of facilities of the Russian Far Eastern Federal University and the 2012 APEC Summit. It’s a big, difficult job, and it’s in our interest to collaborate with reliable partners such as Freight One," said Maxim Dobrovolsky, CEO of Logard LLC. "For comparison, 10—15% of our shipments were in Freight One cars in 2009. In 2010 the figure is approaching 85—90%. This is because we’ve achieved mutual understanding and collaborate well with the management and staff of Freight One’s Vladivostok branch".

Rate policy, rolling stock quality, promptness in agreeing upon orders and other issues were discussed at the round table.

"We’re taking a wait-and-see approach to the creation of Freight Two. There are problems in the region, but we hope that the ongoing reform of RZD will help solve these problems," said Yuri Koval, Deputy Director of SUEK OJSC’s Vladivostok branch.

According to the roundtable participants, holding such meetings between shippers and rail transport operators is the best way to allow them to voice their concerns and work together to find solutions to problems.

"We support the initiative launched by Freight One. You’ve always made it your policy to be open to dialogue with shippers in order to find ways to deliver empty cars more efficiently," said Valery Tarabarov, Deputy CEO of Vostoktsement Management Company, expressing the general sentiment.