Railcar recycling premium to be discussed in Q4
MOSCOW. July 12 (Interfax) - Russian Prime Minister Dmitry Medvedev has asked the Industry and Trade Ministry, Finance Ministry, Transport Ministry and Economic Development Ministry to work on proposals by September 18 on the introduction of a recycling premium for buyers of freight railcars with increased capacity and an increased run between repairs.
The government press service said the instruction was given after a meeting of the economic modernization and innovation council under the Russian president, held on June 28 to discuss rail transport development.
ICT President Alexander Nesis proposed the premium at the meeting. ICT includes CJSC Tikhvin Freight Car Building Plant in Leningrad region, which manufactures railcars with improved technical features. He said the premium would encourage operators to recycle older railcars and buy new ones, helping to increase railway capacity in the country.
Industry and Trade Minister Denis Manturov agreed at the time that Russian producers could be helped with a recycling premium - along with other incentives. "So an operator gives up a railcar for scrap metal, obtains funds and a recycling certificate and can go to a leasing company counting on an advance payment," he said.
Manturov said this preference should only be provided for the purchase of railcars with enhanced technical features. The amount of such a premium has not yet been decided, he added. This issue is not going to be resolved before 2014 and only if it is approved by the Russian government and the Finance Ministry allocates the budget funds.
The proposal is being considered as a way to support Russian freight car manufacturers due to a drop in demand. A slump in their production is expected in 2013 from a record 120,000 in 2012 to 50,000 to 60,000.
The Transport Ministry, Industry and Trade Ministry, Russian Railways (RZD) and interested companies should by October 3 regulate the issue of operating railcars with a larger dimensions within the framework of the CIS rail transport council.
The Russian Federal Tariffs Service, Transport Ministry, Economic Development Ministry and RZD need to work out tariff preferences to encourage demand for trains with reduced impact on infrastructure and maintenance costs. By December 25 these same departments need to look at lowering the cost of freight transport (per tonne) with increased loads on railcars with enhanced technical features.
By September 5 the Transport, Industry, Economic Development and Finance ministries along with RZD are to put together measures to encourage demand and production of innovative machinery.
Also by September 4, the Industry, Transport, Economy and Finance ministries should compile proposals for government support of R&D from 2014 in line with a government program to develop the industry and enhance its competitiveness. The ministry must also look at encouraging foreign transport engineering companies to transfer technology to Russian companies and at encouraging more active localization in joint companies.
