Conclusion
Railways are crucial to the economy and Russia approached reforms gradually, which left RZhD as the dominant party. Reforms have taken 15 years, the last 10 years were the most active, which is longer than was originally planned, but progress has been steady. As a result, reforms have succeeded in expanding rail freight traffic, expanding market share, reducing freight rates, restoring operational productivity, and attracting private capital to profitable sector elements such as high-value freight. However, significant issues remain unresolved. For freight, the next big issues are opening First and Second Freight companies, and the locomotive market to private sector participation. For passenger transport, financial sustainability remains elusive. Government issued Decree Number 377 (2008), “On Federal Target Program-Modernization of the Russian Transport System (2010-2015)”, and passed “The Strategy of Railway Transport Development in Russian Federation to 2030” to tackle these challenges. The Strategy aims to increase asset renewal and resolve remaining economic challenges. Recently, Prime Minister Putin authorized RZhD to use proceeds from subsidiary IPOs to finance the Strategy. In February 2010, RZhD announced share sales in 30 subsidiaries, including First Freight Company, TransContainer, and Refservice, but will retain controlling shares in each.
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