YAKUNIN: SOUTH CAUCASUS RAILWAY TO CONSIDER ARMENIAN RAILWAY INFRASTRUCTURE MODERNIZATION AMONG TOP-PRIORITY FOCUSES

ARKA News Agency
Feb 13 2008
Armenia

YEREVAN, February 13. /ARKA/. Yuzhnokavkazskaya Zheleznaya Doroga
(South Caucasus Railway) CJSC will consider Armenian railway
infrastructure modernization among top-priority focuses, Vladimir
Yakunin, president of the Russian Railways public corporation, said
Wednesday in Yerevan.

He told journalists that South Caucasus Railway’s directorial board
would hold session soon consider the business plan for embarking on
carrying out contractual obligations.

He said that the major attention will be paid to the infrastructure
modernization, since without it nothing can operate.

"This is a joint opinion that worked out by Russian and Armenian
railways’ authorities and will be taken as top priority in our activity
in Armenia, especially at the first stage", Yakunin said.

He said that at least three or four electric trains will be brought
to South Caucasus Railway for commuter traffic in Armenia.

"We also intend to improve Caucasus ferry way’s work, to build up
cargo exchange between Armenia and Russia as well as other nearby
countries", he said and expressed hope for Armenian people’s and
authorities’ support.

Armenian Transport and Communication Minister Andranik Manukyan
pledged support saying Armenian people are happy about Armenian Railway
handover to Russian railways and adding that he sees no problems.

The agreement on Armenian Railway handover to Russian Railways for
concession administration was signed on February 13 in Yerevan.

Russian Railways expressed willingness to invest $570 million in
Armenian Railway. The Russians said 230 million of this amount would
be invested within five years.

They said the investments will grow to $610 million, if railway
communication with Turkey opens, to $1.8 billion if the same happens
with Azerbaijan and $2.2 billion in the event of Abkhazian section
launch.

The Russian entrepreneurs’ activity in Armenia is expected to start
at the first half of 2008. Armenian Railway possesses 805 kilometers
of Armenia’s 1125 km railways.

The company started gaining stable profit in 2001.3 million tons of
cargo was carried through the railway in 2007 against 2.7mln in 2006.

The company’s profit totaled AMD 12 billion in 2007 against 11 billion
in the previous year. ($1 = AMD 309.82).