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date: 05 December 2019

Abstract and Keywords

The Russian economy relies on the freight railways to an extraordinary degree. In 2001, after years of debate, the Russian government adopted an ambitious plan to transform this vertically integrated monopoly into a system that would rely more on private investment and competition and less on government ownership and regulation. This chapter examines the state of the industry after ten years of reforms, focusing on competition, tariffs, and private sector participation. Much remains to be decided, in particular the question of whether Russia will move in the direction of one of the three standard models seen in other countries—vertical separation, third-party access, or horizontal separation—or whether it will continue in the direction pursued in Kazakhstan and under discussion in Ukraine—vertical separation, but with locomotives and operations included with the network and competition limited to rolling stock ownership and freight forwarding.

Keywords: freight railways, restructuring, competition, Russian Federation, vertical separation, third-party access, horizontal separation

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