SOUTH CAUCASUS RAILWAY NOT TO REVISE PRICING POLICY NEXT YEAR

ARKA
Dec 24, 2009

YEREVAN, December 24, /ARKA/. The South Caucasus Railways (SCR) company
CEO Shevket Shaidulin said today the company does not plan to revise
its pricing policy next year, but said some rate changes will be made
in compliance with railway policies of former Soviet republics with
regard to domestic and international cargo transportation.

He said the main focus next year will be the domestic and international
cargo transportation. He also said the company has announced New Year
discounts to attract more customers. He complained of protracted
10- day New Year holidays, granted by the government, saying the
company’s operation will be complicated until January 11 as many
organizations will not be working until then. This is why, he said,
the South Caucasus Railways company has announced special discounts
that will be effective from December 31 to January 10 next year. He
said the company will offer a 22% discount also for passenger travels.

In 2007 the Armenian government called tenders for a 30-year
concession to modernize and operate Armenian Railways. An Indian
RITES and Russian Railways qualified to bid, but the Indian company
withdrew. The Russian Railways was the only bidder and has set up
South Caucasian Railway as a subsidiary to run the Armenian Railway.

The concession agreement was concluded for 30 years, with a right of
extension for another 20 years after the first 20 years of operation.