Network Rail hailed in Russia

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Network Rail has received an unlikely mention at a rail industry forum in Russia’s Black Sea resort of Sochi, drawing praise for its co-operative approach to delivering major infrastructure projects. Writes David Shirres

On October 17, the Open Dialogue Forum considered construction, innovation and partnership aspects of Russian Railways (RZD) infrastructure projects both in Russia and abroad. This includes RZD’s involvement in Serbia, North Korea, Vietnam, Indonesia, Ecuador, Iran and Ethiopia.

Speaking during a session on project implementation, Matthais Manhart, of Sersa Mashineller Glaysbau AG, suggested that the forum could learn much from how Network Rail’s alliancing arrangements break down contractual barriers. He referred to the joint venture in the UK between Amey and Sersa to renew switch and crossings using innovative techniques from the European Continent. After his presentation, Manhart told Global Rail News that the creation of a virtual company in this way was, in his experience, unprecedented.

RZD is investing £4.7 billion in 2014 on infrastructure projects including £1.2 billion on track renewals. By 2020, RZD expects to have constructed its first high-speed line of 770 km between Moscow and Kazan at a cost of £16 billion. At the forum Deputy Transport Minister Alexey Tsydenov emphasised that, for this project, the question was not “to be or not to be” but “when and how”.

The forum heard that much had been learnt from the challenging construction, in just four years, of the new 48-kilometre combined rail and road route through the mountains to the Sochi Winter Olympic resorts. It was felt that this showed the ambitious timescale for the high-speed line was achievable.

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New road and rail route through the mountains.

The forum took place against a backdrop of Russia’s GDP falling to 0.7 per cent in 2013 and the imposition of sanctions. However, it would seem that the main effect of sanctions on RZD’s plans is to force a look to the East. This month, Russia and China signed a Memorandum of Co-operation to create a high-speed rail strategic partnership and a study of the huge amount of materials required for the high-speed line has concluded that they can be supplied from within Russia or from countries that have not applied sanctions.

At a similar forum in Sochi two years ago there was representation from the EU but no speakers from Asia, a situation reversed at this forum which had speakers from Japan and China. There was however strong representation from European rail companies many of whom have significant involvement in infrastructure and rolling stock projects. At the forum’s press conference, RZD’s President Vladimir Yakunin was asked if any European companies had stopped doing business in Russia as a result of the sanctions. His response was “not one”.

Yakunin has no doubt that infrastructure development is an essential part of the solution to Russia’s economic problems. In his opening address, he explained his belief that such projects are a driver of economic development as illustrated by the history of Russian railways. In a typical Yakunin one-liner, his answer to those who doubt the need for infrastructure spending was “are you saying I can’t have the money to build a machine that prints money”.

 

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