EFFICIENT INVESTMENT POLICY ALLOWED SCR TO INCREASE ITS TECHNICAL-ECONOMICAL INDICATORS

/ARKA/
November 19, 2009
YEREVAN

YEREVAN, November 19. /ARKA/. Indicators of CJSC "South-Caucasian
Railway" for 2008-2009 evidence about efficiency of investment policy.

As of October 1, 2009 capital repair of 10 electric locomotives B’Ð~10,
79 cargo wagons, 12 passengers’ wagons, 30 pair of wheels of electric
locomotives and 300 pair of wheels of cargo wagons was implemented.

During the same period 10 diesel locomotives ЧÐ~Э3 and 24 sections
of electric trains were obtained. As of October 1 repair of 10.2
km of route, replacement of ties – 82 000 items, transfer bars –
88 sets, repair of indicating transfer bars – 60 sets, repair of
crossing buildings – 18 sites, repair of passengers’ buildings,
platforms – 15 sites was implemented. Total volume of expenses of CJSC
"South-Caucasian Railway" investment program in 2008-2009 was 3 653.3
million rubles.

The result of investment activity is the increase of
technical-economical indicators of the road. It is expected that the
repair of roads in the sections Kaqavadzor-Hrazdan, Vardenis-Zod,
Shorzha- Vardenis, Tsovagyugh- Shorzha, Sevan- Tsovagyugh, Tsaghkunk-
Sevan, Hrazdan- Tsaghkunk will allow to increase the speed of the
trains from 25-40 km/hour to 30-45 km/hour. It is planned to repair the
buildings of locomotive depot of Gyumri and Yerevan till the end of
2009. Modernization of information system of ASQMT (automated system
of quick management of transportation), network of FOCL (fiber-optic
communication line) and repair of administrative and other bulldogs
is envisaged (2849.8 quadrate meters).

The main tasks of investment activity of CJSC "SCR" have two directions
– repair and improvement of infrastructure of railway of Armenia and
renovation of parks of passengers’. CJSC "South Caucasian Railway" is
100% affiliate of Open JSC "Russian Railway". CJSC "Armenian railway"
was transferred under concession management of CJSC "SCR" according
to Concession Agreement signed on February 13, 2008.

The terms of concession management is for 30 years with the right of
prolongation for another 10 years.