Box: The Official Russian Railroads Reform Plan

Creating Competition: 2003-05

• Independent freight operators run up to 50 percent of carriages.

• The Russian Railroad Corporation still owns the track, trains, locomotives infrastructure, and so on, but spins off noncore activities, such as suburban trains, long distance trains; maintenance units; and social, telecommunications, and construction activities.

Privatization: 2006-10

• Most carriages and some locomotives are already privately owned.

• Vertically integrated companies might be established that own both trains and tracks (most likely using the corporate railroads).

• The feasibility of full vertical separation is evaluated.

• Privatization enables competition in long distance passenger traffic.

• Franchises are granted for suburban train operators.