Railway Reform: Toolkit for Improving Rail Sector Performance - ppiaf

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