Jun 01, 2012

Oleg Sienko: development of the 1520 area

The first day of the VII International Rail Business Forum "1520 Strategic Partnership" in Sochi saw a plenary session on “EU-1520-APEC: TransEurasia economic corridor”. Oleg Sienko, CEO of OJSC “RESEARCH AND PRODUCTION CORPORATION “URALVAGONZAVOD”, was one of the speakers. The key questions raised at the discussion were strategy for the development of Europe-Asia transport corridor and cargo delivery efficiency.

Oleg Sienko emphasised that EU and APR countries are reluctant to opt for through shipments. As a result, the 1520 area doesn’t realise its full transit potential, but use only 2-3% of volume of shipments between EU and Asian-Pacific Region. There is a need to join together in order to make some arrangements.

Flaws in cargo shipment system, technical regulation that affects safety of transportation, detains at borders, numerous taxes and extra levies are the holdbacks that countries of the 1520 area face when dealing with freight transport. The main obstacles though, are bad railroad tracks, border crossing impediment, freight car fleet is obsolete.

“We suppose, in order to boost development of the international rail though traffic we need to update Russian transport network that borders with foreign ones and provide transporters with modern freight cars”, said Oleg Sienko. 

According to statistics, average freight car age amounts to 19 years. One of the steps to the upgrade is a prospective program launched by UVZ and Russian Railways. The program is aimed at out-of-date rolling stock utilization. 

Oleg Sienko is positive that the above mentioned measures will improve the situation in EurAsEC.