"ARMENIAN RAILROADS": ITS FURTHER FATE
Vasak Tarposhyan

Hayots Ashkharh Daily, Armenia
Oct 17 2007

The pre-qualification stage of the bid announced for handing the
"Armenian Railroads" to accredited governance came to a close.

For implementing the governance of the Armenian rail network, two
companies have submitted a claim; they are "The Russian Railroads"
and "RITES", an Indian company. At the second stage of the bid the
profitableness of the proposals submitted by each of the parties will
be determined. And this will serve as a basis for announcing the
name of the company taking over the leadership of the railroad. It
is planned to end the process in January next year.

Handing the railroad to accredited governance for a period of about 30
years, the Government is first of all anticipating a solution to the
problem of attracting investments and refreshing the system. Perhaps
it is with this purpose that making a $ 170 investment is one of
the main requirements proposed to the participants of the bid. This
is the sum that is required for providing a continuous railroad
operation. Otherwise, the railroad will encounter serious difficulties
in a short while.

With the purpose of increasing the effectiveness of the operation of
"Armenian Railroads", a great number of constructive changes were made
during the recent years. However, the railroad never gained anything
from that. Considering that factor, the Government decided, after a
long search, to hand it to concessionary governance which is actually
an alternative opportunity for involving investments in the system.

Although, during the recent years the "Armenian Railroads" worked
with gains, those sums are not enough to save the railroads by way
of returning the money to the system in the form of investments. By
making annual investments in the amount of a couple of million Dollars,
it is impossible to repair a system that requires means, exceeding
the above-mentioned number 100 times.

Obviously, if the things go on like that, the railroad will, in a
short while, come face-to-face with a serious fact. Especially in a
situation when all the operation time-limits are coming to a close.

The accidents which occurred one after another several months ago
can be an evidence for this, as they were chiefly caused by the
depreciated system.

The rolling stock of the railroad has a 25-30 years’ history, which
means that the railroad may totally become deprived of carriages in
case of not receiving a relevant replenishment.

Fortunately, several electric trains were purchased from Russia this
year. And what’s more, in 1980 the "Armenian Railroads" acquired new
locomotives for the last time.

Technically, both the railway and the railroad bridge are in an
extremely hard condition. Even though separate railroad sections
and bridges underwent repairs at the expense of different financial
means during the past years, this cannot be considered a solution
to the problem. There are bridges that were built around a hundred
years ago and today, in the estimation of specialists, they are not
merely in bad, but in extremely bad conditions.

Perhaps, everything produces an influence both on the speed of the
railway and the efficiency of its operation. That’s why using this
particular service has become inappropriate both in terms of its high
prices and its low speed.

It is not difficult in such conditions to imagine what would happen
if the railroads providing a communication between Armenia and
abroad opened today. And that this will sooner or later happen,
there is no doubt about it. Therefore, it is necessary to prepare
for such developments in advance, not to become faced with serious
facts tomorrow.