IEDT Expert View on the Economics of Railway Transport

At the St. Petersburg International Economic Forum held earlier this month, the holding signed 11 cooperation agreements aimed at improving service quality. Experts from the Institute for Transport Economics and Development commented on the role of railway transport in the national economy.

IEDT notes that the management of railway transport economics is currently based on a combination of state and market mechanisms. Accordingly, both regulatory and tariff-based instruments are applied, along with financial and investment, technological, and operational tools. These include optimizing the use of limited infrastructure resources, including through digitalization (development of freight flow forecasting systems, creation of digital twins of assets), as well as the introduction of technological innovations (such as virtual coupling and heavy-haul operations).

The specifics of railway operations in the North-West and on the Oktyabrskaya Railway are driven by the presence of major ports such as St. Petersburg, Ust-Luga, Murmansk, Vysotsk, and others. Peak loads on infrastructure arise when vessels arrive; train schedules must be synchronized with shipping timetables, and railcars must be accumulated at port-side stations. Therefore, key projects that will positively impact the regional and national economy include the modernization of sections in the St. Petersburg–Vitebsk region of the Oktyabrskaya Railway to handle transit Belarusian cargo to North-Western ports, as well as the modernization of the Volkhovstroy–Murmansk line to accommodate future traffic volumes and support the development of the Murmansk transport hub.

The high-speed rail line between St. Petersburg and Moscow is also expected to have a significant positive impact on the economies of several regions. With its introduction, freight trains will be redirected to the Moscow–Bologoye–St. Petersburg route, increasing the carrying capacity of the Oktyabrskaya Railway.

Source: Gudok.