On the problems of railway reform in Russia

The problem of Russian railway reform is reviewed in historical terms. It is shown that long-term attempts to transform the centralist model of control of the public railways based on liberal principles did not lead to the expected results. The public efficiency of the railway transportation did not increase and the technological efficiency was reduced so that at the end of 2011 and beginning of 2012 the railways faced the loss of control. The trajectories of organizational development of the OJSC RZhD corporation in the past were analyzed and alternative variants of its development in future were specified. The practical steps were considered that should be made to form a specifically Russian mechanism of the control of railway transportation that would permit the implementation of an efficient compromise between the public and commercial aims of the corporation. The replacement of the territorial-functional control model of railway transportation by the model of control by the type of activity was critically studied. Horizontal splitting of the OJSC RZhD is suggested and the necessity to separate the natural monopoly cores in the existing structure is shown. Measures are substantiated whose implementation will provide progress in reforming railway transportation of Russia

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