MANAGERIAL CHALLENGES IN RUSSIAN RAILWAYS
PRIVATIZATION AND RESTRUCTURING IN THE
CONTEXT OF INTEGRATION INTO GLOBAL
TRANSPORT SYSTEMS Cover Image

MANAGERIAL CHALLENGES IN RUSSIAN RAILWAYS PRIVATIZATION AND RESTRUCTURING IN THE CONTEXT OF INTEGRATION INTO GLOBAL TRANSPORT SYSTEMS
MANAGERIAL CHALLENGES IN RUSSIAN RAILWAYS PRIVATIZATION AND RESTRUCTURING IN THE CONTEXT OF INTEGRATION INTO GLOBAL TRANSPORT SYSTEMS

Author(s): Natalia Zhuravleva
Subject(s): Economy, National Economy, Supranational / Global Economy, Transport / Logistics
Published by: Zilinska univerzita v Ziline, Fakulta prevádzky a ekonomiky dopravy a spojov, Katedra ekonomiky
Keywords: privatization; restructuring; investment; effectiveness of the transport market;

Summary/Abstract: The article describes the results of an analysis of the processes of privatization andthe restructuring of railways, in the context of their inclusion in international transport projectsin managerial perspective. The purpose of this study is to emphasize the totality of the rationalproperty relationships, interrelationships and the competition between their structural elementsin present-day railway transport systems, and also the influences of branch restructuring on themarket effectiveness of transport services. The methodology used in this study involvedbuilding on a structural-functional approach and emphasizing the totality of the steadyrelationships and interrelationships between their elements and their roles relative to each otherand to the global market, for the transport services as a whole in the integral transport systems.The processes involved in the optimal model formation of the industry structure were studied.The following structural elements, which are basic for evaluating the expediency of railwayprivatization, were evaluated: the organizational form of the business, market competition andthe separation of the infrastructure and transportation functions. A conclusion was made aboutthe absence of a connection between the structural business model and the privatization effects;namely, the investment needs of the railway infrastructure are considerably higher than theamount that is invested, the active railway memberships are evaluated based on this and theasymmetry prevents the flow of the investments necessary for the branch. The effects of anincrease in the market competition in different organizational models of the market for railtransportation were also studied. As a result, a conclusion was made about the reasons for theabsence of such an effect on the Russian rail freight market. In the study, it is assumed that theconclusions will be applied to the current processes of the Russian railways privatization andrestructuring as a part of the Eurasian transport system infrastructure. It was proven that thebasic effects of privatization and restructuring were a result of the density of the network, theopenness of the market for transportation and the effectiveness of the national railways controls.It was substantiated that it is precisely the globalization of the economy that ensures the threedimensional effectiveness of global transport systems, drawing in investments through theirdevelopment and improving the quality of transport services for the users.

  • Issue Year: 11/2017
  • Issue No: 2
  • Page Range: 122-133
  • Page Count: 12
  • Language: English