Every third ton is international…

26.02.2025

Russia, together with its partners in the Eurasian Economic Union and BRICS, is actively advancing transport and logistics corridors while promoting initiatives for enhanced international economic integration. In an interview with 1520International, Sergey Pavlov, First Deputy Managing Director of Russian Railways (RZD), outlined the company’s key priorities in international cooperation.

— Last year presented significant challenges for the company. What was Russian Railways’ international freight volume?

— Indeed, it was a demanding year, both for our company and the national economy. International transportation continued to face headwinds from geopolitical tensions, ongoing sanctions, and global market volatility. Nevertheless, our network has consistently maintained international freight volumes exceeding half a billion tons annually for several consecutive years — meaning every third ton of our cargo goes global. We have also continued to strengthen our strategic partnership with China, Russia’s key economic partner. Rail freight traffic between our countries reached a historic milestone last year, exceeding 175 million tons — a 9% increase compared to 2023.

— Container shipping remains one of the fastest-growing sectors in the market — what are the current figures for this sector?

— Our international container traffic reached 4.8 million TEU, representing an 8.3% increase over 2023. Container transit volumes demonstrated significant growth, increasing 1.5 times to reach 1.3 million TEUs by 2023. This substantial increase was made possible through effective coordination between rail operators across international transport corridors. I believe the joint integration project of the United Transport and Logistics Company, which marked its 10th anniversary in 2024, serves as a remarkable example of collaboration with our Belarusian and Kazakh colleagues. Over 4 million TEU have been transported by UTLC ERA services since their launch, with their geographical reach now spanning over 740 routes.

— What were the primary routes and ITCs for rail freight last year, and what drove these patterns?

— International freight traffic primarily flows through four major corridors: the Eastern Route, Northwestern Route, Azov-Black Sea Route, and the North-South International Transport Corridor (ITC). Following directives from Russian President Vladimir Putin, Russian Railways has successfully implemented the road maps approved by the Government of the Russian Federation for developing transport and logistics corridors to facilitate international cargo transportation. In collaboration with the Russian Ministry of Transport, we developed proposals late last year for a new action plan («road map») extending through 2030 and looking ahead to 2036. This plan supports the national development goals outlined in Presidential Decree No. 309 («May Decree»), which calls for increasing transportation volumes along ITCs by at least 1.5 times by 2030 compared to 2021 levels. The strategy focuses on enhancing the global competitiveness of these four designated international transport corridors.

— How is the North-South ITC traffic evolving?

— Rail freight volumes along the North-South ITC are growing dynamically, with 12.9 million tons transported in 2024 (+2.6% compared to 2023), representing a 16% increase since 2019. Infrastructure development and logistics capabilities are being enhanced across all routes. In May 2023, the governments of Russia and Iran signed an agreement on the Rasht-Astara railway project, with both countries’ presidents present at the signing ceremony, to establish direct rail connectivity on the corridor’s western branch. Late last year, Russian Railways contributed to securing an intergovernmental agreement with Azerbaijan on developing the western route of the North-South ITC. The agreement aims to coordinate freight transportation and infrastructure development, streamline border crossing procedures for goods, and ensure balanced growth between transport volumes and infrastructure capacity. Current infrastructure upgrades include the modernization of the Derbent railway checkpoint and the conversion of the Derbent-Samur section to AC traction. Along the eastern branch of the North-South ITC (via Turkmen-Iranian border crossings), competitive tariff rates established jointly by the railways of Russia, Iran, Kazakhstan, and Turkmenistan have remained in effect for three consecutive years. Regular container service frequency has increased to four trains since late 2023.

— From your perspective, is there a need to establish new rail border crossings with neighboring countries? Which routes require additional capacity?

— The development of rail border crossing points with neighboring countries is a crucial part of our infrastructure adaptation to meet economic demands. We are working closely with the relevant authorities in this area. For its part, Russian Railways is implementing an investment project titled ’Development of Railway Border Checkpoint Infrastructure.’ As mentioned earlier, we are modernizing the Derbent rail border crossing on the Azerbaijan border. To accommodate growing freight traffic with China at the Zabaikalsk-Manchuria crossing, we are expanding both standard gauge (1435 mm) and broad gauge (1520 mm) infrastructure at Zabaikalsk station. In 2024, we completed the design phase for three yards and commenced construction. Once the work on both gauges is complete, the station’s throughput capacity will reach 39 million tons by 2030, an increase of 11 million tons from current levels. Regular container services have begun operating via the Nizhneleninskoye-Tongjiang bridge crossing, which opened in 2022. Additional rail border crossing points with China are under consideration. As part of the Russia-Mongolia-China economic corridor development, we have completed the extension of receiving and departure tracks in both Mongolia and Russia, increasing the throughput capacity at the Naushki-Sukhbaatar crossing from 9.7 to 15 million tons. We are implementing measures to enhance the capacity of rail border crossings with Kazakhstan. A plan to increase transit traffic is being developed, taking into account the commissioning of double tracking on the Dostyk-Moynty line in 2025. We are also involved in developing new projects, including the proposed Jalinda-Mohe international rail crossing.

— Could you outline the key international infrastructure projects currently under development?

— Regarding international infrastructure projects, we are fulfilling our existing commitments, with projects being developed in Serbia, Belarus, and Kyrgyzstan. Following the directive from Russian President Vladimir Putin, operations have resumed on the Russia-North Korea Hassan-Rajin project.

— Which direct passenger rail services were restored with other countries last year, and what new routes are being planned or already in progress?

— In previous years, we restored international passenger operations that were suspended during the pandemic with Abkhazia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Mongolia. Last year, as part of the Union State initiatives, we launched an additional service on the St. Petersburg-Minsk route and increased the frequency of trains to Kaliningrad via Belarus. A third daily pair of Lastochka high-speed services was also introduced between our capitals. Passenger services have resumed with China (on the Suifenhe-Grodekovo route) and North Korea. The Tashkent-Moscow service operated by Uzbek Railways has been restored. Arrangements have been reached to expand collaboration on tourist transportation and related matters.

— How would you assess the work of the BRICS Business Council’s Transport and Logistics Subgroup? What has been achieved so far? What projects and activities are planned for this year?

— The geographical distance between BRICS nations highlights the importance of improving logistics connectivity, which is crucial for mutual trade and transportation dynamics.
During Russia’s BRICS presidency in 2024, we focused on enhancing logistics connectivity between member states. Within the Business Council, we launched a new transport and logistics initiative, which has attracted representatives from over 100 BRICS companies.
We have jointly conducted a BRICS Transport Barriers Review and established common approaches to address the identified constraints.
At the initiative of our UAE partners, we are developing the concept of a permanent Global Transport and Logistics Platform, scheduled for launch in 2025.
Another key priority in multilateral cooperation is human capital development. We have launched the BRICS Transport Academy (currently in online format), which we expect to evolve into joint internship programs, professional development initiatives, knowledge exchange, and other areas of collaboration.

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