Russia to introduce new penalty scheme to boost rail infrastructure usage

Russia’s rail network is under strain. Therefore, Moscow is looking for ways to make more efficient use of its infrastructure. The transport ministry may now introduce a much-discussed penalty measure: ship – or pay.
If the transport ministry’s proposal is made into law, Russian Railways would be allowed to demand a payment from shippers even if they fail to present freight for their booked slots. The scheme is supposed to reduce overbookings.

Moreover, the measure is said to be particularly important for infrastructure sections where there is a deficit in throughput capacity.

Still controversial

“‘Ship or pay’ is one possible form of interaction between the infrastructure owner and the freight owner”, commented Pavel Ivankin, President of the National Research Center for Transportation and Infrastructure and Member of the State Council Commission on Transport, to Russian media.

“The infrastructure owner is interested in ensuring that the infrastructure volumes planned for use within the planning period are fully utilised. Freight owners, likewise, are interested in seeing the adopted plans translated into actual shipments.”

Not everyone is convinced of the effectiveness of the ‘ship or pay’ measure. The Russian Ministry of Energy and Federal Antimonopoly Service have spoken out against it. They reason that the changes will complicate shippers’ access to scarce infrastructure. Businesses are also said to oppose this mechanism.

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