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Russian Railways to sign long-term contracts on transport engineering.

May 2008.


The Board of Directors of Russian Railways has approved a concept for concluding contracts of up to 5 years for the supply of transport engineering products, which calls for the development of new technology, its production and servicing throughout the period of its operation.

In fact, the Company will not acquire a separate technological tool, but rather an integrated product that includes rolling stock and its servicing. Foreign suppliers will be asked to consider further the conditions for localising production in Russia.

These integrated long-term contracts will be also for the acquisition of products used en masse in the construction of railway infrastructure, such as track, electrical products, automated systems and communications.

The new approach will benefit both Russian Railways and manufacturers. The Company will be able to buy new equipment on a stable basis in accordance with its strategic needs. In turn, suppliers will be able to implement long-term planning of their production, upgrade their technological base and attract concessional loans.

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The first time Russian Railways acquired an integrated product in transport engineering was its award of a contract to Siemens for the supply of the Velaro RUS high-speed train for the Moscow - St. Petersburg line. The agreement provides for the development, production and supply of trains and their maintenance for a period of 30 years.

 



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