What have been the major developments the Uzbek railways have gone through in the last couples of years and what are the main activities of the State Railway Company today?
I would say that the successful development and stable functioning of all industries of the countries' economy is provided by transportation system in which railway has a leading position. Moreover, the railway transport must provide execution of a whole complex of requirements the major ones of which are: the full and in time satisfaction of requirements of the national economy and population in passenger and cargo transportation, the provision of the highest economic effectiveness, the provision of security of traffic of transportation means, the provision of non-stop traffic of carriages and reduction of delivery time, the enhancement of comfort for passengers and transportation services for cargo owners, the guarantee of full safety of transporting cargo in terms of its volume and quality, and the undertaking of all measures aiming to environmental safety.
What have been the latest developments in the field of transportation over the past two years?
The state railway company "Uzbekistan railways" was created in November 7th, 1994 on the base of regions of Central Asian railway, located on the territory of the Republic of Uzbekistan. The development of the railway transport of the Republic of Uzbekistan for the last few years mainly concentrates on the following aspects: the construction of new railway lines for creation of a single national railway network, the electrification of the major regions of the railways, the renewal of carriage parks (garages), the creation of our own maintenance base for maintaining of our locomotive park, the implementation of automated systems of transportation process management and development of the communication systems of the railway. Furthermore, for provision of carriage traffic security the company takes measures on modernization of the technical and traffic means. It mastered a large scale assembling of tanks and worked out a program on prolongation of their carriage live to the average term of 10 years. For the purpose of maintaining the carriages a program has been worked out for the modernization of carriages which allows to save 1,4 USD per carriage and prolong its service life to 20 years without worsening its technical parameters. The company has changed its consideration of putting the carriages for maintenance which allows to save up to 2 billion sums in exploitation.
Can you tell us what are the possible investments in the field of railway and what are your new projects?
At the moment the major investment projects for the development and reconstruction of the railway transport are worked out. Some of them have already been realized. Three projects are declared the state targeted program such as electrification and also construction of the new railway lines Navoi-Uchkuduk-Sultanuizdak-Nukus and Guzar-Kumkurgan.
Also, the region of Uchkuduk-Misken-Nukus with the total distance of 342 km lies along the territories that dispose considerable treasures of the soil such as gold, poly-metallic minerals, gas, uranium, marble, etc. On 31 of January - 1st of February 2001 the first cargo locomotive has passed this region.
The construction works of the Guzar-Kukurgan line with a length of 223 km are being held at the moment. It also passes along a territory which is rich in coal, poli - metallic minerals, marble and granite. Construction on both lines is being held with the state budget funds.
Along with the construction works held with the company's own funds, the company is trying to attract foreign investments. It actively cooperates with the following financial institutions: the Japanese Bank for International Cooperation (former Fund for overseas economic cooperation); the Asian Development Bank, the European Bank for Reconstruction and Development, the KfV bank (Kreditanshtalt fur Wiederaufbau).
Based on a credit agreement signed on June 16th 1996 between the Japanese Fund for Foreign Economic Cooperation and the government of Uzbekistan "Uzbekistan railways" we are implementing the project "modernization of the passenger transport" the credit line of which makes up 6,102 m yen. The term of this project is 5 years. This projects includes construction of a carriage maintenance plant with the full maintenance program of 450 units a year, buying 25 new passenger carriages and spare parts, conduction of consulting services. Inauguration of the plant is planned for March 2001.
Currently, EBRD has given a grant amounting 750000 EURO directed to technical cooperation and consulting services with the purpose of cooperation and implementation of the project on renewal of the locomotive park.
The number of priority investment projects on major activities of the company planned to be implemented till 2010 includes: the strengthening of communication channels using the fibrous-optical lines, the buying of new electric and other types of carriages and modernization of carriages in disposal, the construction of new railway lines, the implementation of the projects for speeding up the traffic of carriages using new technologies and materials, and the production of materials for upper way construction and spare parts. A business plan has been worked out for the investment projects on construction of a maintenance plant and electrification of the Tashkent-Angren region. These projects are planned to be implemented in cooperation with the Japanese Bank for International Cooperation and Kreditanshtalt fuer Wiederaufbau. I would like also to add that pre-investment works are being held on the following projects: the construction of a new railway route Angren-Pap, the reconstruction of the Tashkent railway station, and the construction of a new railway route Andijan-Osh-Kashgar.
What are you future outlooks?
I would say that the reconstruction works being
held by "Uzbekistan railways" represent
the steps we are taking towards the de-monopolization
of the railway transport, modernization of economic
mechanism for industry regulation and improvement
of interrelationship between the branches and divisions
of the company. |
The experience of foreign countries in reforming the railway sector has been considered during the restructuring process of the industry and those are Germany, France, Finland, Sweden, Great Britain, Poland and Russian Federation.
The reformation process has started in 1997 when a government commission was established on restructuring the company based on the resolution of the Cabinet of Ministers. At the first stage all the branches of the company were reformed into regional railway directions on cargo transportation and a state company on passenger transportation "Uzjeldorpass" was established. Transition of the passenger transportation as a separate structure has allowed to decrease expenses of passenger transportation in average by 1bln. sums a year.
The major purpose of the railway transport is satisfaction of growing needs in volume and quality of transportation on the base of renewal of the production and technical base and increase of effectiveness of all branches of the railway transport.
It is necessary to complete a whole complex of tasks prior to the achievement of these goals and those are as follows: the implementation of necessary rectification into the current normative base of the railway transport functioning considering the market economy conditions, the creation of favorable conditions for attraction of investments with the purpose of renewal of production and technical base of the industry, the provision of financial transparency of all types of activities, the creation of mechanisms of inducements for high effectiveness of activity at all levels, the step by step de-monopolization of railway transport services, and the provision of access for potential carriers to production infrastructure of the railway transport on equal basis.
It is also proposed to transform "Uzbekistan railways" into an open type joint stock company where 100% of shares will belong to the state and will not be the subject for sale to other organizations, can not be the subject for collateral and also cannot be the subject for emission of additional securities.
A deepening of the de-monopolization process and formation of competitive environment on the railway transport has been proposed, the creation of conditions for further privatization of the companies and enterprises subordinated to the company, strengthening of management functions in the field of railway transport, and sounding the management structure. Nevertheless, the execution of indicated measures will allow: to conduct a single technical policy on development of all railway transport industries, to transit from a territorial to a functional principle of management, to transit to double division management system of the industry, providing rapidity of management and liquidate doubling of the management functions, to optimize specialization of maintenance plants on types of maintenance and concentrate the material and technical resources on major directions, to keep up with the process of privatization of the cargo and passenger carrier companies that are opening transportation and expedition services to cargo senders and passengers, passenger and cargo carrier companies (expediters) and also additional and servicing enterprises that are not related with passenger and cargo transportation, to direct the funds from privatization to the development and technical renovation of the industry, to provide an access of the carriers to the railway transportation infrastructure on equal basis and create a competitive environment, to increase investment attraction of the industry, and to create stimuli for establishing of enterprises for providing services to the passengers in the railway stations and carriages.
I should mention that the completion of the mentioned measures on restructuring of the industry will allow: to decrease the number of workers in the major activity by 2000 employees with the annual saving of the salary funds by 1.2 bln sums which comprises 7% salary payment of existing structure of the company; to reduce expenses of "Uzbekistan railways" for social security by 3 bln. Sums, and to deduct expenses on passenger transportation for the account of cargo transportation by 2 billion sums.
These measures will cause lowering tariffs for passenger transportation for the account of cargo transportation by 9.4%. A list of the sub companies of "Uzbekistan railways" company has been defined and that are subject to privatization. It includes bakeries, a boarding house in Khodjikent, farms in Yangiabad, Ona-zamin, Kushtepa, stoma hospital in Tashkent, points of civil construction in Tashkent, Khavast, a hotel "Locomotive". Now, 51% of shares of 6 companies are presumed to transfer to the statutory capital of "Uzbekistan railways" company and those are: the cargo transportation company, the Tashkent passenger carriage maintenance plant, the cargo carriage maintenance plant, the "Uzjeldorpass" company, the "Dorreftrans" company, and the "Uzjeldorcontainer" company.
The above mentioned companies will sell the rest of the 49% of shares to staff members, foreign investors and all other physical and legal entities of the Republic of Uzbekistan. So, 100% of the state's stake in the "Uzjeldormash" company remains at the disposal of "Uzbekistan railways".
The following will be transferred to the private property or for rent to private and legal entities of the Republic of Uzbekistan during the privatization process of the companies: the cargo spaces, the container squares, the warehouses, the lifting and cargo delivery mechanisms and transportation means for lifting the cargo, the extra items of cargo carriages for about 1000 items, 100 refrigerator sections for transportation of perishable cargo, part of the container park, the dining cars, the luggage carriages and also delivery and luggage services, and the cloakrooms. Also, the selling of tickets to passenger locomotives through private and commercial agencies is proposed ,and the restructuring process presumes free sale of the state owned 25% of shares of 30 companies and enterprises with limited liability.
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Uzbek State Railway Company