SOUTH-CAUCASIAN RAILWAY TO APPLY THROUGH RATES

ARKA
Apr 1, 2009

YEREVAN, April 1. /ARKA/. As a result of cooperation between the
South-Caucasian Railway CJSC and the Georgian railway, from April 1,
2009, the tariff for the transportation of 20-foot containers in the
Karmir Blur-Poti-Karmir Blur direction will be based on a through
rate, US about $300 for one container-kilometer in the territory of
both Armenia and Georgia.

The press service of the South-Caucasian Railway CJSC reports that
the decision was made to attract exported and imported cargoes.

"We hope that lower rates will allow us to increase container traffic
by railway and form a solid basis for further development of through
traffic in certain directions," the press service reports quoting Ilya
Kalperis, Head of the Service Center, South-Caucasian Railway CJSC.

"The reduced rates will also allow us to ensure the transparency of
the railway component in the cost of transportation in the case of
several modes of transport," he said.

The South-Caucasian Railway CJSC is fully owned by the Russian
Railways OJSC. Under a concession contract signed on February 13,
2008, the South-Caucasian Railway CJSC acts as concessionaire managing
the Armenian Railways CJSC. The 30-year concession contract can be
prolonged for 20 years more.