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SOUTH CAUCASUS RAILWAY: EFFICIENCY OF INVESTMENTS IN RAILWAY INFRASTRUCTURE OF ARMENIA EVIDENT
by Alexandr Avanesov
Wednesday, March 25, 12:08
South Caucasus Railway (SCR) CJSC (subsidiary of Russian Railways) is
a public company and the high attention of the state administrative
bodies to it is natural, Viktor Rebets, SCR CEO, told ArmInfo when
commenting the Monday statement by the anti- monopoly watchdog of
Armenia Artak Shaboyan who suggested a survey in the SCR's investments.
Viktor Rebets said SCR has invested over 100 billion drams (over
$210 million) in the railway infrastructure development in Armenia
over the last 6 years. For instance, the bridges built yet in the
19th century and the locomotive depot in Gyumri have been modernized
and now meet the international standards. All these investments will
develop the economy of Armenia and ensure safe railway traffic. The
car turn-around halved, the service weight was increased 1.5-fold,
with the train speed growing 1.5-fold. These technical features show
the efficiency of investments. The investments were necessary and they
did not affect cost of the services, as the funds were provided by the
Russian Railways OJSC, the majority shareholder. "Such high investments
could not be raised from he economy of Armenia," Rebets said.
Artak Shaboyan, the head of Armenia's State Commission for Protection
of Economic Competition said in the Parliament, Monday, that the
Commission's survey in 2014 revealed that along with investments of
91 billion drams as per the concession agreement, the company has an
accumulated loss of 9.3 billion drams, which means losses increase
along with investments.
The anti-monopoly watchdog recalled that On March 13, 2015, the
regulator reprimanded the company for unjustified price increases
in the last three years. In particular, according to the regulator,
the South Caucasus Railway has regularly increased the freight
transportation tariffs since 2011. During 2011-2014, prices rose from
5% to 17% for national transportation and up to 17% for international
freight activity.
Shaboyan said the Commission is yet look into the procurements
procedures of the company, as the latter decides on its own when,
where and at what price to make the procurement. Considering that the
Company has big accumulated losses, the Commission adopted a decision
to reprimand the Company and demand it to follow the anti-monopoly
laws and avoid abuses. The package of the Company's violations will
be submitted to the Ministry of Transport and Communications. In
addition, the Commission will provide its recommendations on how to
correct the situation to all the parties concerned.
CJSC "South Caucasian Railway" is a 100% subsidiary of JSC "Russian
Railways" and provides concession management of Armenian railroads.
CJSC "Armenian Railways" was referred to the concession management
to the company "SCR" according to the Concession Agreement signed on
February 13, 2008. The term of the concession management is 30 years
with possible extension for another 10 years
http://www.arminfo.am/index.cfm?objectid=8B588E10-D2CE-11E4-B2070EB7C0D21663
From: Emil Lazarian | Ararat NewsPress
by Alexandr Avanesov
Wednesday, March 25, 12:08
South Caucasus Railway (SCR) CJSC (subsidiary of Russian Railways) is
a public company and the high attention of the state administrative
bodies to it is natural, Viktor Rebets, SCR CEO, told ArmInfo when
commenting the Monday statement by the anti- monopoly watchdog of
Armenia Artak Shaboyan who suggested a survey in the SCR's investments.
Viktor Rebets said SCR has invested over 100 billion drams (over
$210 million) in the railway infrastructure development in Armenia
over the last 6 years. For instance, the bridges built yet in the
19th century and the locomotive depot in Gyumri have been modernized
and now meet the international standards. All these investments will
develop the economy of Armenia and ensure safe railway traffic. The
car turn-around halved, the service weight was increased 1.5-fold,
with the train speed growing 1.5-fold. These technical features show
the efficiency of investments. The investments were necessary and they
did not affect cost of the services, as the funds were provided by the
Russian Railways OJSC, the majority shareholder. "Such high investments
could not be raised from he economy of Armenia," Rebets said.
Artak Shaboyan, the head of Armenia's State Commission for Protection
of Economic Competition said in the Parliament, Monday, that the
Commission's survey in 2014 revealed that along with investments of
91 billion drams as per the concession agreement, the company has an
accumulated loss of 9.3 billion drams, which means losses increase
along with investments.
The anti-monopoly watchdog recalled that On March 13, 2015, the
regulator reprimanded the company for unjustified price increases
in the last three years. In particular, according to the regulator,
the South Caucasus Railway has regularly increased the freight
transportation tariffs since 2011. During 2011-2014, prices rose from
5% to 17% for national transportation and up to 17% for international
freight activity.
Shaboyan said the Commission is yet look into the procurements
procedures of the company, as the latter decides on its own when,
where and at what price to make the procurement. Considering that the
Company has big accumulated losses, the Commission adopted a decision
to reprimand the Company and demand it to follow the anti-monopoly
laws and avoid abuses. The package of the Company's violations will
be submitted to the Ministry of Transport and Communications. In
addition, the Commission will provide its recommendations on how to
correct the situation to all the parties concerned.
CJSC "South Caucasian Railway" is a 100% subsidiary of JSC "Russian
Railways" and provides concession management of Armenian railroads.
CJSC "Armenian Railways" was referred to the concession management
to the company "SCR" according to the Concession Agreement signed on
February 13, 2008. The term of the concession management is 30 years
with possible extension for another 10 years
http://www.arminfo.am/index.cfm?objectid=8B588E10-D2CE-11E4-B2070EB7C0D21663
From: Emil Lazarian | Ararat NewsPress