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Russia: Russian Railways Presents 1H 2007 Results

September 2007.



In the first half of 2007, Russian Railways achieved an increase in freight turnover of 9.7%, two-and-a-half times more than the trends in the Russian transport system.

As a result, the proportion of rail transport in the country’s total freight turnover (excluding pipeline transportation) exceeded 87% in the first half of 2007.

However, tariffs have fallen, with the cost of transport in goods shipped by the Company down by over 4% this year compared to 2006.

The main goal of the rail sector’s structural reform is therefore being achieved, namely providing rail services which fully cover the growing transport demand and at the same time reduce freight costs.

In the first half of 2007, Russian Railways shipped over 658 million tonnes of freight, 4% more than in the same period last year, while freight turnover amounted to 1,026.3 billion tonnes-kilometres, up 8.9% on the first six months of 2006.

In the first half of 2007, Russian Railways carried over 594 million passengers on long-distance and suburban trains. Passenger turnover was 82.4 billion passenger-kilometres, 1.9% more than in the same period last year.

In the first half of the year, Russian Railways invested 82 billion roubles in development, 39% of the amount planned for 2007.

Capital investments were successfully implemented and used to acquire and modernise rolling stock. The Company’s total investment in traction units for rolling stock in 2007 will amount to around 20 billion roubles.

Including leasing, the Company has acquired 388 passenger coaches since the beginning of the year, up from 314 in the same period last year, 117 locomotives (up from 104), over 6,200 freight wagons, up from 3,000.

In addition, in the first half of 2007, over 100 passenger coaches have been modernised, as well as 126 electric train units, 212 locomotives and around 4,000 freight wagons.


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