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"Armenian Railraods": Its Further Fate

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  • "Armenian Railraods": Its Further Fate

    "ARMENIAN RAILROADS": ITS FURTHER FATE
    Vasak Tarposhyan

    Hayots Ashkharh Daily, Armenia
    Oct 17 2007

    The pre-qualification stage of the bid announced for handing the
    "Armenian Railroads" to accredited governance came to a close.

    For implementing the governance of the Armenian rail network, two
    companies have submitted a claim; they are "The Russian Railroads"
    and "RITES", an Indian company. At the second stage of the bid the
    profitableness of the proposals submitted by each of the parties will
    be determined. And this will serve as a basis for announcing the
    name of the company taking over the leadership of the railroad. It
    is planned to end the process in January next year.

    Handing the railroad to accredited governance for a period of about 30
    years, the Government is first of all anticipating a solution to the
    problem of attracting investments and refreshing the system. Perhaps
    it is with this purpose that making a $ 170 investment is one of
    the main requirements proposed to the participants of the bid. This
    is the sum that is required for providing a continuous railroad
    operation. Otherwise, the railroad will encounter serious difficulties
    in a short while.

    With the purpose of increasing the effectiveness of the operation of
    "Armenian Railroads", a great number of constructive changes were made
    during the recent years. However, the railroad never gained anything
    from that. Considering that factor, the Government decided, after a
    long search, to hand it to concessionary governance which is actually
    an alternative opportunity for involving investments in the system.

    Although, during the recent years the "Armenian Railroads" worked
    with gains, those sums are not enough to save the railroads by way
    of returning the money to the system in the form of investments. By
    making annual investments in the amount of a couple of million Dollars,
    it is impossible to repair a system that requires means, exceeding
    the above-mentioned number 100 times.

    Obviously, if the things go on like that, the railroad will, in a
    short while, come face-to-face with a serious fact. Especially in a
    situation when all the operation time-limits are coming to a close.

    The accidents which occurred one after another several months ago
    can be an evidence for this, as they were chiefly caused by the
    depreciated system.

    The rolling stock of the railroad has a 25-30 years' history, which
    means that the railroad may totally become deprived of carriages in
    case of not receiving a relevant replenishment.

    Fortunately, several electric trains were purchased from Russia this
    year. And what's more, in 1980 the "Armenian Railroads" acquired new
    locomotives for the last time.

    Technically, both the railway and the railroad bridge are in an
    extremely hard condition. Even though separate railroad sections
    and bridges underwent repairs at the expense of different financial
    means during the past years, this cannot be considered a solution
    to the problem. There are bridges that were built around a hundred
    years ago and today, in the estimation of specialists, they are not
    merely in bad, but in extremely bad conditions.

    Perhaps, everything produces an influence both on the speed of the
    railway and the efficiency of its operation. That's why using this
    particular service has become inappropriate both in terms of its high
    prices and its low speed.

    It is not difficult in such conditions to imagine what would happen
    if the railroads providing a communication between Armenia and
    abroad opened today. And that this will sooner or later happen,
    there is no doubt about it. Therefore, it is necessary to prepare
    for such developments in advance, not to become faced with serious
    facts tomorrow.
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