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  /  Development Strategy / Structural Reform

Structural Reform

Structural reform of the railway industry

Objectives of the current stage of the reform: to develop the railway transportation services market, to ensure global competitiveness of the railway transport, to work out effective investment vehicles for a sustainable development of the industry. The basic document defining trends of the reform is the Program for Structural Reform in the Railway Transport approved by the Russian Government in 2001. The main objectives of the fourth state are defined in the Target Freight Railway Transportation Model for the period until 2015 approved by the Russian Government in 2011.

The Program of Structural Reforms on the Railway Transport

The first stage2001-2002
The second stage2003-2005
The third stage2006-2011
The fourth stage2012-2015

At the first (preparatory) stage, an action plan on the division of state regulation of the industry and economic management was developed; basic law and regulatory acts were adopted.

At the second stage, JSC “Russian Railways” was established, ensuring its financial transparency. Separation of subsidiaries and associates able to operate in competitive market segments began on the basis of JSC “RZD”. Basic conditions were created to develop competition in the market of operators.

At the third stage of the reform, competitive and potentially competitive businesses were separated from JSC “RZD” by establishing subsidiaries and affiliates. The competitive market segment was created in the sphere of operating freight cars. Basic conditions were created to avoid crosssubsidization of passenger services at the expense of freight transportation. The Government n general approved the progress of the reform and decided to continue the structural reformation of the industry.

The objectives of the current fourth stage of the reforms are defined in the Target Model of the railway freight market for the period up to 2015 approved by the Government:

  • ensuring global competitiveness of Russia’s railway transport;
  • developing efficient investment mechanisms in the industry;
  • creating incentives to increase the efficiency of market participants;
  • developing the market for railway transport services on the basis of liberalization of the state regulation of the industry.

In accordance with the Target Model, the railway infrastructure and general network traffic at least up to 2015 will remain within the scope of responsibility of JSC “Russian Railways”. The industry, with JSC “Russian Railways” as its main company, has the following targets:

  • development of a competitive market for freight car operation;
  • implementation of pilot projects to create local carriers;
  • integration of the national transport systems of Russia, Belarus and Kazakhstan in light of the Common
  • improvement in the tariff system