Russia Plans to Enhance Grain Block Trains Mechanism
OREANDA-NEWS. June 09, 2012. The Ministry of Agriculture discusses with RZD and other market players the mechanism of support of grain transportation by block trains in the Russian Federation, which are used to export this product, said Ilya Shestakov, Deputy Minister of Agriculture.
“Nowadays, we are developing a mechanism to give an additional economic stimulus to grain transportation by block trains,” said Mr Shestakov, speaking at the XIII International grain round “Grain Market 0 Yesterday, Today, Tomorrow”.
He mentioned that the Ministry and RZD signed an interaction agreement last year.
In his words, in the mentioned draft state programme of the agricultural sector development to 2020, the Ministry offers to envisage allocation of funds to support such stimuli. “We consider this mechanism the most prospective, it will be popular,” noted the Deputy Minister of Agriculture, adding that already in 2012 the RF authorities can develop documents targeted at stimulating transportation in these or those directions.
In particular, the Ministry of Agriculture has already chosen grain elevators, which will participate in forming the lots carried by block trains. RZD is ready to support this novation, said Mr Shestakov.
Artem Krestyaninov, Deputy Director of the Department of Agrarian Market Regulation and Infrastructure Development, there 38 elevators, which can now be used as hubs. Such elevators are mainly used for temporary storage of grain to be transported further. Most part of them are located in the southern regions of Russia.
Meanwhile, they are now badly needed in Siberia, and the Urals region, added Mr Krestyaninov.
He offered participants of the conference to develop hub elevators. “This will not just help to solve the problem of the market. Those companies, who create a hub elevator today, will be economically efficient for a lot of decades,” stated Mr Krestyaninov.