Russians will be transported by private trains

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Russian Railways (Russian Railways) remains one of the largest strategic monopolists in Russia. However, in the foreseeable future this monopoly will also be partially undermined. The Ministry of Transport of the Russian Federation is preparing a draft target market model (DEM) for long-distance transportation. We are talking about long-distance passenger trains that want to partially transfer to private hands.





In 2017, 87,9% of passenger traffic on Russian railways was served by the Federal Passenger Company, which is part of Russian Railways, 5,7% - by the Directorate of High Speed ​​Traffic, also part of the Russian Railways, and 4,3% - railway companies of other states. If the project of the Ministry of Transport of the Russian Federation is adopted, then by 2025 at least 10% of passenger traffic in Russia will be transferred to private companies not affiliated with the Russian Railways.

During 2021-2025, according to the draft target market model, the access of private carriers to the passenger transportation market should be ensured. Private companies will conclude contracts with Russian Railways for a period of 15 years - on a competitive basis. It remains to hope that the competitions will be fair, truly oriented towards the inclusion of third-party companies in the process of organizing rail transportation. Since if anti-corruption security is not ensured, then there will be practically no sense in such a reform of the railway communication system.

In order to avoid increased attention to profitable routes and a complete lack of attention to unprofitable routes, it is planned to combine profitable and unprofitable directions in lots. That is, private companies, receiving the right to transport on a profitable route, will be required to subsidize transport on a loss-making basis. Those carriers who manage to win the lots will be able to conclude a contract at a price taking into account the return on invested capital. For the period until 2021, the state should assess the possibilities and consequences of transferring part of passenger traffic to private hands.

It is known that the project of the Ministry of Transport has already been supported by the Federal Antimonopoly Service of the Russian Federation. Therefore, if the project is adopted, then Russian Railways will have to ensure a tender for unprofitable socially significant routes, using the minimum requested subsidy as the main criterion for the carrier.

Russian Railways itself claims that the target market model needs further refinement and improvement. The presented project, according to company representatives, is aimed at reducing the real independence of Russian Railways and at the same time increasing the rights of other companies that may appear on the railway transportation market.
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