Title: THREE-STAGE REFORM LAYS THE FOUNDATIONS OF COMPETITION
Abstract: On 16 August 2000, the Board of Russia's Ministry of Railways confirmed that it was pursuing further stages in the programme of structural reform of Russian railways. It is formally responsible for implementing the programme under the Government's guidance. The Ministry's own role will change significantly, when its strategic and operational functions are separated. It will retain its powers as the executive body for carrying out national railway policy, but its operational and commercial functions will be devolved to the state-owned Russian Railway Company (RZD). As there is no intention to create a separate infrastructure company, the railway will remain an integrated system with central control of operations and safety. Various aspects of the national rail activities will no longer be a monopoly, and market competition will be developed as independent companies will be set up to compete for passenger and freight traffic against RZD. There will be major financial reforms. The costs of operating freight companies will be reduced, cross subsidies for passenger traffic will be abolished, socially necessary passenger services will be state-funded, and there will be more state control over fares, to ensure that operators cannot abuse a monopoly position. The reforms will have three stages.
Publication Year: 2000
Publication Date: 2000-10-01
Language: en
Type: article
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