Russia outlines railcar requirements for operators

The proposed resolution is widely seen as a bid to consolidate the freight operators’ industry in Russia as the lack of structure is seen as a major negative impact on key national exports. Russia depends on its rail network to transport raw materials, such as coal, to its customers in Europe, Central Asia and East Asia. Oil, natural gas, coal, timber and metals are Russia’s major export items, with the European Union (EU) consuming approximately 45% of the nation’s overseas exports.

Lack of coordination and structure in the freight operators industry was seen as the primary reason behind the shortfall in shipment of coal from Siberia by 4m tonnes during the third quarter of 2011.

Accordingly, the ministerial push for greater consolidation of the Russian rail freight operators’ market is a strategic move to accumulate rail transport in the hands of strong players in terms of freight cars ownership. Although raising the ownership qualification bar will adversely affect thousands of smaller railroad freight operators, the Russian government is expected to view the development as inevitable collateral damage in the drive towards preserving national economic vitality, for which continuously available shipment channels are a must.