RZD Needs Fund to Revive Rail

Russian Railways plans to borrow $1.3 billion in 2009 to boost its struggling freight operations, aiming for a 1.6-2% increase despite an 18% drop in 2009 and total debt nearing RUB350bn by the end of the year.

September 20, 2009 9:44 am | Last Update: August 7, 2015 9:46 am

Russian Railways (RZD) is planning to borrow an additional RUB40bn (approximately $1.3bn) in 2009 to help improve its economic crisis-hit rail freight operations.

After a fall of 15.4% in freight in 2009, the company hopes it will rise by 1.6–2% in 2010.
The loan would increase the total debt of the railways to RUB350bn ($11.30bn) by the end of 2009, RZD president Vladimir Yakunin revealed.
This comes even as RZD had planned an annual RUB250bn of investment for 2009 and 2010.
The money would be sought via credits instead of bonds.

TAGS: russia freight transportation statistics, russia railway news

railwaynews

Railway infrastructure, rolling stock and transport technologies specialist focused on global rail industry developments, high-speed rail systems, signaling technologies and freight transportation. Covering railway investments, public transport modernization, rail operations and international mobility projects across Europe, Asia and North America.