Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

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Railway Reform: Toolkit for improving Rail Sector Performance Case Study: Russian Railways Significant traffic declines without corresponding operational reforms reduced asset and staff productivity. Track and staff productivity declined by 50 percent; wagon productivity increased by a modest 10 percent (Figures 3 and 4). The World Bank Page 392
Railway Reform: Toolkit for improving Rail Sector Performance Case Study: Russian Railways Investment declined for new equipment and maintenance, and new equipment deliveries fell by over 30 percent as some former Soviet republics refused to supply Russia. As assets and infrastructure deteriorated, the number of track kilometers subject to speed restrictions increased by about 30 percent. 176 Clearly, without reforms, railways could not maintain their pivotal role in the economy. 2 Reform Goals Edict Number 426 (1997) established the following major goals for railway reforms: • Stabilize quality and safety; • Preserve a pan-Russian institution and ensure economic development; • Ensure system interoperability; • Reduce system costs; and • Meet demand for transport services. Decree Number 448 refined these goals: end cross-subsidies, improve tariffsetting supervision, and increase transparency of financial flows in the industry. 3 Reform Process Railway reform had three phases as shown in Figure 5: 176 Transport Strategies for the Russian Federation (World Bank) The World Bank Page 393
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Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

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