OREANDA-NEWS. October 08, 2012. Vladimir Yakunin, President of Russian Railways, held a teleconference to mark the Company’s 9th anniversary, reported the press-centre of Russian Railways.

"We traditionally celebrate the establishment of Open Joint Stock Company Russian Railways. I congratulate all our employees on this auspicious occasion and wish them every success in their work," said Vladimir Yakunin.

According to the President, in the nine years of the Company’s existence, Russian Railways has seen its freight traffic increase by a factor of 1.4 and total over 21 billion ton-kilometres. For the first time in 20 years, rail transport accounts for close to 45% of the country’s transportation and 86% excluding pipelines. In addition, during these nine years, the Russian Railways has carried about 11 billion passengers.

"Thanks to its high financial and credit ratings, Russian Railways has become one of the largest and most prestigious Russian companies borrowing money abroad to build and develop infrastructure," said Company head.

Vladimir Yakunin also noted that by the end of 2011, the Company had virtually completed the transformation of the industry as laid down in the structural reform programme for rail transport.

"We have developed a competitive corporate structure that ensures effective operations in today’s market conditions and continual improvements in efficiency and innovation. The Holding now faces new global challenges and must be transformed into a powerful transport and logistics structure which actively implements its expertise on domestic and international markets," he said.

The formation of the Holding was accompanied by a continuous improvement in its internal management system. Thus, from 1 October 2012 the Central Infrastructure Directorate took up its work.

"We have completed what is probably the biggest stage in terms of transformation – a transformation which affected one thousand departments and over 360,000 employees. Our managers at the main divisions we have created now have all the powers they need and bear full responsibility for the results of ongoing work and implementing development projects," said Vladimir Yakunin.

According to Yakunin, in October this year, the railway branches of the Company will begin functioning as regional centres of corporate governance (RCCG). This will create complete vertical management structures, with a corporate centre and regional centres of corporate governance.

The main function of the RCCGs will be the technological and corporate coordination of the territorial units of the Russian Railways Holding and the building and strengthening of horizontal relations between the Company’s territorial directorates and subsidiaries within Russian Railways.

"The end result and the most important task of all these changes is to increase efficiency and productivity, develop and implement measures to increase revenues and, of course, to optimise operating and other expenses," said Vladimir Yakunin.