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.