NEW RAILWAY EQUIPMENT ARRIVED TO SCR

/ARKA/
December 1, 2009
YEREVAN

YEREVAN, December 1. /ARKA/. New railway equipment arrived to CJSC
"South-Caucasian Railway" on Monday.

It is rail motor trolley- defectoscope- track measuring device íôëð-1
which is necessary for scanning and detecting different defects of
railway, width of railway track and mutual position of railway clues
by the level. Purchase of new equipment is implemented in the frames
of investment program for 2009.

The company said that the priority for 2009 is modernization of
railway and the majority of investments were allocated for this
purpose. Modernization will allow to increase the speed of movement
of trains, quality of SCR services and increase of railway to higher
level. Volume of work of railway modernization in the frames of
investment program 2009 significantly exceeded the volumes of 2008.

In modernization works of the railway, equipment received in 2008-2009
was used. It includes heavy railway equipment (in the amount of 427.

69 million rubles), machines and equipment (in the amount of 32.55
million rubles), car transport and reaming equipment (in the amount
of 51.62 million rubles). In railway works heavy railway equipment
was used rented from Open JSC "Russian Railway’.

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.