Remarks by RZD President Vladimir Remarks by RZD President Vladimir YakuninYakunin

Eurasian transport link development by RZD

Geneva, Switzerland, 24 February 2010Geneva, Switzerland, 24 February 2010

EAST EAST –– WEST INTERNATIONAL TRANSPORT WEST INTERNATIONAL TRANSPORT CORRIDORCORRIDOR

Container transit time across Russia: 11 daysLong-term target: 7 days

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MAIN PRIORITIES OF THE MAIN PRIORITIES OF THE ““TRANSTRANS--SIBERIA IN 7 SIBERIA IN 7 DAYSDAYS”” PRODUCTPRODUCT

Increasing transport service

quality

Main priorities of the “Trans-Siberia in 7

days” product

Changing technology

Infrastructure development

Improving regulatory framework

Regulating tariffs

• Adopting the Rules for container train transport• Improving the international regulatory framework

• Competitive tariffs• Stable tariff policy • Stabilising tariffs’ period of operation to 2 – 3 years• Establishing container transport tariffs per wagon, and later per container train

•Removing infrastructure restrictions on speed•Constructing new container terminals

• Simple documentation systems• Adherence to timetable• Regular service

•Increasing speed to 1,400-1,500 km per day•Updating rolling stock•Introducing modern information systems

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Project goal: creating a new competitive route for container cargo transport linked to the Trans-Siberian mainline

The project provides for:

• Reconstructing a 54km section of the Tumangan – Rajin railway line

• Building a container terminal with a capacity of 100,000 TEUs per year in the Rajin port

• Organising international East – West cargo freight based on the new infrastructure

KHASAN KHASAN –– RAJIN PROJECTRAJIN PROJECT

The RasonKonTrans joint venture was established in April 2008 to reconstruct the railway line from Rajin to Tumangan and build a sea port container terminal

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Cooperation in boosting the efficiency of Ulan-Bator Railwayswithin the framework of the Agreement on Expanding Cooperation between Russian Railways and Ulan-Bator Railways

(February 2008):Providing Mongolian Railways with the necessary rolling stockRenovation of the track superstructureIntroduction of innovative transport and information technology on Ulan-Bator RailwaysIntegration of the IT systems of Russian and Mongolian RailwaysDevelopment of transit from China to Europe and backTraining and retraining of highly-qualified personnel in professions in urgent demand by Ulan-Bator Railways

In 2009, 2 Russian Railways representatives joined the Ulan-Bator Railways Management Board

COOPERATION FOR MONGOLIAN RAILWAYS COOPERATION FOR MONGOLIAN RAILWAYS DEVELOPMENTDEVELOPMENT

Development and implementation of the concept for Mongolian Railways’ development

In May 2009, the government of Mongolia and RZD established an Infrastructure Development company (with an RZD stake of 50%)

as a site for developing the Concept for implementation of the joint project with Ulan-Bator Railways and construction of a new railway infrastructure in Mongolia

on the principles:Unified network (on the basis of Ulan-Bator Railways)Single gauge track (1520mm)Financing of the project by Russian Railways (the funds) and the government of Mongolia (deposit development rights) on a parity basis

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The basis for cooperation is transfer of Russia’s share stake (50%) in Ulan-Bator Railways into Russian Railways trust management for 5 years (Decree of the President of the Russian Federation No. 965 dated 22 August 2009 and Decree of the Russian Government No. 1529r dated 17 October 2009)

The basis for cooperation is transfer of Russia’s share stake (50%) in Ulan-Bator Railways into Russian Railways trust management for 5 years (Decree of the President of the Russian Federation No. 965 dated 22 August 2009)

LegendLegendPlanned railwaysPlanned railways

Projects to be completed by 2013Projects to be completed by 2013

Projects to be completed by 2020Projects to be completed by 2020

Second track constructionSecond track construction

Siding construction, quantitySiding construction, quantity

Automatic block signalling available Automatic block signalling available on the sectionon the section

CONSTRUCTION OF THE KOSICE CONSTRUCTION OF THE KOSICE –– BRATISLAVA BRATISLAVA ––VIENNA 1520MM GAUGE RAILWAY LINEVIENNA 1520MM GAUGE RAILWAY LINE

The length of the planned line will be 565km

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LegendLegendExisting railwaysExisting railwaysApproximate freight terminal locationApproximate freight terminal locationMoscow Moscow –– Kiev Kiev –– Bratislava Bratislava –– Vienna line, 1520mm gaugeVienna line, 1520mm gaugePlanned Kosice (Planned Kosice (GaniskaGaniska) ) ––Bratislava Bratislava -- Vienna 1520mm railway line Vienna 1520mm railway line

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NORTH NORTH –– SOUTH INTERNATIONAL TRANSPORT SOUTH INTERNATIONAL TRANSPORT CORRIDORCORRIDOR

Expected North-South ITC

commodity market volume: 25m-26m

tonnes

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LegendLegend

--NorthNorth--South corridorSouth corridor--European cargo flows linked to the corridorEuropean cargo flows linked to the corridor

Freight routes within the NorthFreight routes within the North--South corridorSouth corridor

1.1. TransTrans--CaspianCaspian2.2. West (via Azerbaijan)West (via Azerbaijan)3.3. East (via Kazakhstan and Turkmenistan)East (via Kazakhstan and Turkmenistan)4.4. Traditional sea route vie the Suez CanalTraditional sea route vie the Suez Canal

--Planned Astara Planned Astara –– Rasht railway lineRasht railway line--Qazvin Qazvin –– Rasht and Rasht and UzenUzen –– BereketBereket –– GorganGorgan

lines under constructionlines under construction

--Potential North Potential North –– South corridor linesSouth corridor lines

COOPERATION OF JSC COOPERATION OF JSC ““RUSSIAN RAILWAYSRUSSIAN RAILWAYS”” WITH WITH FOREIGN TRANSPORTATION COMPANIESFOREIGN TRANSPORTATION COMPANIES TO SET UP TO SET UP JOINT VENTURE FOR FREIGHT SERVICEJOINT VENTURE FOR FREIGHT SERVICE

Joint Venture of JSC “TransContainer”and VR Ltd. “Container

TransScandinavia” for composite service at container transportation between

Finland and Russia

Joint Venture of JSC “Russian Railways” and DB AG

“Trans-Eurasia Logistics”for transportation of

containerized cargo between Germany and Russia

Joint Venture of JSC “TransContainer” and China Railway

Container Transport Corporation (CRCT) for international

transportation of containerized cargo

Cooperation of JSC “TransContainer” and ZAO ”Russkaya Troika” with the leading

consignors and forwarders of Japan within the framework of concluded agent

agreements

“Strategic Partnership 1520”

Strategic aim: Strengthening of JSC “Russian Railways” position at the Eurasian freight service market 88

between 2010 and 2020 – 362.0Blnroubles.

247.5

2020

83.4

2008

190.481.8Mln tonnes

20152009

North-West region

Southern region

Far East region

Total investment (in expected prices): 1,771.7 billion roubles

between 2010 and 2020: 1,075.9

137.3

2020

61.2

2008

Blnroubles

122.663.8Mlntonnes

20152009

between 2010 and 2020: 333.8

130.0

2020

46.1

2008

Blnroubles

105.152.6Mlntonnes

20152009

Freight volume and investment in railway Freight volume and investment in railway infrastructure around Russian ports until 2020infrastructure around Russian ports until 2020

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FERRY SERVICEFERRY SERVICEUSTUST--LUGA LUGA –– BALTIYSKBALTIYSK –– GERMAN PORTSGERMAN PORTS

1010