DMITRY MACHERET First deputy Chairman of the Russian Railways Joint Scientific Council, Doctor of Economic Sciences, Professor 17 October 2012 Russia – EU seminar The Trans-Siberian in 7 days (an innovative and competitive transport product) VNIIZhT (Russian Rail Transport Research Institute)

ОАО «Научно-исследовательский институт железнодорожного транспорта» 2 The target period for delivering containers from the eastern to western borders of Russia by the Trans-Siberian Railway is 7 days Application of modern information technologies Development of railway infrastructure Cooperation with foreign railways and organisations Development of the logistics sector Development of intermodal transport technologies The Trans-Siberian Railway – a link between Europe and Asia The Trans-Siberian Railway is a high-capacity route, electrified throughout its length and equipped with modern types of automation, communications and information technologies. The Trans-Siberian has significant spare traffic and transport capacity and can handle significant levels of additional freight. Russian Rail Transport Research Institute 2

Strategic parameters of the Trans-Siberian in 7 days product Russian Rail Transport Research Institute 3 Speed of delivery and stability of transit time A competitive tariff based on the price – delivery time criterion Stability of tariff policy Timely provision of information about changes to tariffs Regularity of service Adherence to fixed traffic schedule 9,806 km Nakhodka – Krasnoye 7 days 1,400 km/day Possibility of running up to 15 pairs of trains per day 60 days before they are brought into effect Target tariff Deep-sea + $1,000 For 2 or 3 years as a minimum By time spent en route By arrival at final destination

Strategic priorities of the Trans-Siberian in 7 days product Russian Rail Transport Research Institute 4 Increasing the quality of transport services Strategic priorities of the Trans- Siberian in 7 days product Changes in technology Developing the infrastructure Improving the legal and regulatory framework Tariff regulation Approval of rules for transport in container trains Improving the international regulatory framework A competitive tariff Stability of tariff policy Tariff application periods stabilised for up to 2 or 3 years Tariffs established for container transport per wagon, and in future per container train Removing infrastructure- related speed restrictions Modernisation and construction of new container terminals Simple document processing Adherence to schedule Regular service Increasing speeds up to 1,400 km/day Replacing rolling stock Introducing modern information systems

Main measures to develop the infrastructure of the Trans- Siberian Railway Russian Rail Transport Research Institute 5 Development of Zabaikalsk and Naushki border stations Completion of construction of second tracks on the Karymskaya – Zabaikalsk section, with the possibility of electrification Development of pre-port stations in the Nakhodka railway hub, servicing the ports of Vostochny and Nakhodka Construction of second stage of rail bridge crossing over the Amur River in Khabarovsk Expanding the network of container terminals for processing high-tonnage containers Refurbishing stations and lengthening arrival and departure tracks to 71 u.v. Modernising and strengthening power supply, computerisation and communications facilities and equipping the line with double track automatic block signalling Construction of Perm and Chita rail hub bypasses

Base level Level achieved to date Target level (achieved during trial journeys) Future level Increase in route speeds of container trains on the Trans- Siberian Railway, km/day Russian Rail Transport Research Institute 6

7 The mega-economic effect of switching 1 TEU from deep sea to the Trans-Siberian route Russian Rail Transport Research Institute

The effects of expanding the involvement of rail transport in Eurasian transcontinental transport 8 Potential additional GWP (mega- economic effect) of $2.9 billion Potential additional GWP (mega- economic effect) of $2.9 billion Switching 1 million TEU from deep sea to trans- continental routes using rail transport Reduction in losses for manufacturers from freezing of value of transported products Benefits for consumers from increase in speed of delivery and reduction in prices Additional revenue for logistics and operator companies Additional revenue for railways Increase in GDP for countries producing goods Increase in GDP for countries consuming goods Increase in GDP for countries involved in transporting goods

The importance of the innovative and competitive Trans-Siberian in 7 days transport product for the global railway system and the global economy Russian Rail Transport Research Institute 9 The Trans-Siberian in 7 days Implementing the idea of the mutual usefulness of the 1520 Area and the 1435 Area Increasing the global competitiveness of rail transport The renaissance of the railway industry Mega-economic effects in the interests of consumers and producers from European Union and APEC countries and Russia

Thank you for your interest! 10 Russian Rail Transport Research Institute