DECISION OF COUNCIL OF HEADS OF GOVERNMENT OF COMMONWEALTH OF INDEPENDENT STATES

of May 23, 2008

About measures for ensuring replenishment, upgrade and repair of the park of goods wagons of joint use of the State Parties of the Commonwealth of Independent States

The Council of Heads of Government of the Commonwealth of Independent States solved:

1. Take into consideration Information of Council for rail transport of the State Parties of the Commonwealth and Executive committee of the CIS on joint use of the park of the goods wagons which are property of the State Parties of the CIS.

2. Note that against the background of the increasing amounts of transportation of goods there is unsatisfactory provision with purchase, updating and upgrade of the railway vehicles which are in joint use of the State Parties of the CIS.

3. Ask the governments of the State Parties of the CIS:

- charge to railway administrations of the State Parties of the CIS together with the interested ministries, departments, the organizations of rail transport in six-months time to determine annual supply requirement of new cars for 2009-2015;

- on the basis of forecast amounts of annual surplus of transportation of goods for the period till 2010 and calculated requirements in railway vehicles to take urgent measures for replenishment and updating of the car park;

- charge to railway administrations of the State Parties of the CIS to take additional measures for ensuring control of observance of fixed terms of carrying out planned types of repair of cars together with the interested ministries and departments.

4. To council on rail transport of the State Parties of the Commonwealth to carry out comparative analysis of data on uncouplings of cars to running repair for 2006 and 2007 with indication of the car-repair companies, sort of railway vehicles, service life and type of the revealed defects.

5. Recommend to railway administrations of the State Parties of the CIS together with the interested ministries, departments, the organizations of rail transport, owners of railway vehicles to consider the possibility of change of the operating procedure for settlement between the organizations of rail transport for accomplishment of the running uncoupling repair of own goods wagons when transporting in the international message, meaning need of forming of the mechanism of timely compensation for expenses of the railroads in case of accomplishment of this type of repair.

6. Charge to Council for rail transport of the State Parties of the Commonwealth to consider question of optimization of rates of payment for use of goods wagons in the international message.

7. This Decision becomes effective from the date of its signing.

It is made in the city of Minsk on May 23, 2008 in one authentic copy in Russian. The authentic copy is stored in Executive committee of the Commonwealth of Independent States which will send to each state which signed this Decision, its verified copy.

INFORMATION ON JOINT USE OF THE GOODS WAGONS WHICH ARE PROPERTY OF THE STATE PARTIES OF THE CIS

The agreement on separation of inventory parks of goods wagons and containers of the former Ministry of Railways of the USSR between the State Parties of the Commonwealth, by the Azerbaijan Republic, the Republic Georgia, the Republic of Latvia, the Republic of Lithuania, the Republic of Estonia and their further joint use of January 22, 1993 (further - the Agreement) provides implementation of transportation of goods by railway transport on the basis of joint use of the goods wagons and containers which are property of the State Parties of the Agreement and also timely replenishment, upgrade and repair of goods wagons and containers, creation of necessary conditions for production and mutual deliveries of cars and containers.

According to article 5 of the Agreement implementation of coordination work on joint use of goods wagons and containers is entrusted to Council for rail transport of the State Parties of the Commonwealth.

Since 1993 on the railroads of the State Parties of the CIS and the Baltic States the technology of joint operation of goods wagons in the interstate message providing their effective use, proper maintenance and safety of movement is applied. The goods wagons and containers corresponding to the design, technological and other regulating technical documents approved by railway administrations of the states are allowed to collective use.

The existing practice of joint use and ensuring control of technical condition of cars at interstate transfer stations allowed to keep single technological system of work of the railroads, to considerably reduce movement of defective cars in the interstate message, to increase quality of transfer of cars in good repair on joint Items.

Since 1999 there was positive tendency of growth of amount of transportations and cargo turnover on the railroads of the State Parties of the CIS and the Baltic (Appendix 1, 1a).

At the same time the stable growth of transportation of goods characteristic of the majority of the railroads happens against the background of serious problems with railway vehicles. Owing to deficit of goods wagons the satisfaction of the increasing needs of economy of the State Parties of the CIS for transportation of goods is complicated.

The programs of the state support of the railroads of the State Parties of the CIS for content of their technical means in operating state developed according to the Agreement on cooperation in the field of technical retrofitting and updating of railway rolling stock of September 9, 1994 and the Decision of Council of CIS Heads of Government of December 9, 1994 about measures for improvement of work of the railroads of the State Parties of the Commonwealth do not satisfy to requirements of the increasing amounts of transportation of goods regarding replenishment of railway vehicles. Unfortunately, article 4 of the Agreement regarding implementation of timely replenishment, upgrade and repair of goods wagons and containers is carried out by railway administrations extremely unsatisfactorily that leads to systematic decrease in the car park and deterioration in its technical condition.

According to the Agreement Council for rail transport of the State Parties of the Commonwealth divided 1 602 716 cars, including 263 981 closed cars; 207 792 platforms; 552 966 gondola cars; 183 934 tanks; 301 277 other (Appendices 2-4); 52064 rail reefers (Appendix 5); 2547 specialized cars and 1959 cars transporters (Appendix 6). For that period the park of goods wagons of property of industrial enterprises constituted 266 623 cars.

As of January 1, 2007 in the inventory park there were 951 150 cars (Appendix 7). The number of cars of property of physical persons and legal entities for this period increased to 437 812 (Appendix 8). Thus, during joint use the inventory park of goods wagons was reduced by 651 566 units, or by % 40,7, in case of decrease in general cargo turnover of the State Parties of the CIS, Latvia, Lithuania, Estonia only on % 8,7.

For the expired period railway administrations acquire only 89 900 cars (Appendix 9). 441300 cars are excluded from stock during this time, or is 4,5 times more, than are acquired (Appendix 10).

On separate railway administrations write-off of cars from stock exceeded by 10 times and more. So, for example, since 1994 the railway administration of the Republic of Moldova did not acquire any car in case of write-off of 4125 cars. Railway administrations of the Republic of Armenia acquire 36 new cars, and are excluded from stock 468; The Kyrgyz Republic - 7 and 308; The Republic of Tajikistan - 27 and 327; Turkmenistan - 30 and 3305 cars respectively.

Data on quantity of the goods wagons which are subject to write-off by 2011 in connection with the expiration of service are given in Appendix 11.

If not to take urgent measures for replenishment of the park of goods wagons, then in the nearest future the State Parties of the CIS will face acute shortage of railway vehicles for providing the increasing amount of transportation of goods. Already now the railroads have huge deficiency of separate types of railway vehicles, first of all gondola cars, fitting platforms for transportation of containers, and also closed cars.

The current situation considerably reduces high-quality parameters of the park of goods wagons. In case of average normative service life of cars of 28 years the actual term of their use constitutes about 21 year. Average age of gondola cars makes 18,3 of year. As of January 1, 2007 in operation there were 177 655 cars with the expired service life (Appendix 12). Operation old, physically and morally the worn-out park of goods wagons causes inevitability of growth of operating expenses and repair costs of railway administrations, has an adverse effect on reliability of railway vehicles and traffic safety of trains, does not correspond to requests of clients on load-carrying capacity, delivery speed.

Serviceable technical condition of railway vehicles is provided due to production of planned types, and also capital and recovery repair with prolongation of service life. However amounts of planned types of repair (both capital, and depot) are systematically reduced practically by all railway administrations. So, the amount of capital repairs of cars was reduced for the period joint use by 20 800 cars a year (1994 - the 75th 384, 2006 - 54 563 cars). Railway administrations of the Republic of Kazakhstan in 2,4 of time, the Russian Federation - in 1,6, of Ukraine - in time 1,14 reduced amounts of capital repairs (Appendix 13). The number of the cars repaired by depot repair was reduced by 383500 cars annually (1994 - 763rd 512, 2006 - 379 990 cars). Railway administrations of the Azerbaijan Republic in 3,5 of time, the Republic of Belarus - in 3, the Republic of Kazakhstan - in 2,3, of the Kyrgyz Republic - in 1,6, of the Republic of Moldova - in 2,2, of the Russian Federation - in 1,8, of the Republic of Tajikistan - in 1,45, of the Republic of Uzbekistan - in 2,5, of Ukraine - in time 3,1 reduced for this period amounts of depot repair (Appendix 14).

As a result, as a result of operation of 177 665 goods wagons with the expired service life, and also 120 627 cars with violation of between-repairs standard rates only 68,6 of % of cars meets requirements of operation.

The most difficult situation with maintenance of cars on the railroads of the Republic of Armenia where only 22,7 of % of the inventory park answers service conditions, the Azerbaijan Republic 32,5, of Turkmenistan - 38, the Kyrgyz Republic - 41,7, of the Republic of Tajikistan - 42,4, of Georgia - 49%.

In 2005-2006 the tendency of aging of the park of goods wagons remained. The existing cars of the operational park have insufficient reliability, require heavy consumptions on maintenance, occasionally do not answer requests of clients on consumer qualities and technical characteristics. Most of them became outdated both physically, and morally.

Preserving tendency of use of the railway vehicles which developed normative service life and planned repair will lead to deepening of a number of negative problems, including reduction of performance of goods wagons, reducing the working park of cars, growth of additional expenses on content and repair of railway vehicles, to decrease in qualitative indexes of the train schedule, deterioration in traffic safety.

The carried-out analysis shows that after the minimum recovery repair of cars with the expired service life expenses on their maintenance in good repair decreased slightly. At the same time the quantity of uncouplings of cars in the running uncoupling repair not only does not decrease, but even increases.

For satisfaction of the increasing amounts of transportations by railway administrations it will be required, according to forecasts, annual purchase to 120 000 cars (Appendix 15).

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