Kazakhstan Temir Zholy intends to free itself from disadvantageous facilities
12.02.01 00:00
/IRBIS, Feb 12, 01/ - The Great Silk Road World News Agency informs, with
the reference to Kazakhstan Temir Zholy's Director General Ablai
Myrzakhmetov, that currently the railway transport accounts for 63% in the
total freight transport volume. Of overall transport services, over 50% fall on
railway services to passengers. The railway sector accounts for over 6% in
the GDP and for 6.5% in tax and other budget revenues.
Heads of Kazakhstan Temir Zholy stand for the sector de-monopolization
and restructuring of the company which is considered a natural state-owned
monopolist. The company is planning reform in order to free itself from dead
weight, including social facilities, unprofitable maintenance and other
auxiliary departments which require financing at the expense of proceeds
from cargo transport. The burden of these facilities, according to
Mr.Myrzakhmetov, increases railway charges. Besides, 60% of equipment
needs upgrades. This urges the company to put its assets in good order and
to make its more attractive for investors.
Mr. Myrzakhmetov said de-monopolization will include establishment of
another two other transport companies on basis of excessive assets (around
40%) of the Kazakhstan Temir Zholy. Directors of the Kazakh railway
operator believe these companies should be state-owned at the beginning,
but should be privatized in the future.