Transport and communication minister calls for railroad sector demonopolization and restructuring

12.02.01 00:00
/IRBIS, Feb 12, 01/ - The Great Silk Road World News Agency informs that at today's session of the Parliament, Kazakhstan Transport and Communications Minister Mr. Karim Masimov said the railway sector needs to be de-monopolized and restructured. According to the official, reforms should frame the competitive core of this sector, with establishment of several transport companies and separation of service and maintenance divisions of Kazakhstan Temir Zholy. Besides, the minister considers it is necessary to stop cross financing of several branches of the sector (meaning that transport services to passengers bring no profit and are backed up at the expense of proceeds from cargo transport) as well as privileges to individual consignors. Regarding the state participation in the sector, Mr. Masimov believes it is necessary to divide functions of the ministry and Kazakhstan Temir Zholy more clearly. The Ministry intends to set up both monopoly and competitive business in the sector in the course of restructuring of railway transport services. The monopoly will cover maintenance and use of the railway infrastructure, while the competitive business will cover transportation.