The last “Mohican”

29/06/2007 Alina POGHOSYAN

“Armenian railway” CJSC is very often being audited and examined by different governmental bodies such as the taxation department, the finance ministry, public prosecutor’s office and the president’s control department. This company is the last Mohican, that is, state owned company, and we can surely say that next year these governmental bodies will not have to visit the company any more. Starting from 2000, the “Armenian railway” has been developing, and each year it states that the capacities of railway transportation have grown. The director of “Armenian railway” CJSC, Ararat Khrimyan, says that the export capacities by railway have significantly grown. In 2000, about 190,000 tons of cargo was exported by railroad, but in 2006 this capacity grew to 513,000 tons. As for imports, in the same period it covered 900 and 1,275,000 tons accordingly.

This month “Armenian railway” had two accidents, and because of this was at the center of public attention. To note, the first accident happened in between Nalband and Spitak, where five containers full of grain jumped off the rails and turned over. One week following that incident, a train again a train jumped off the rails and five containers turned over between Ani and Baghravan. “As a result of that accident, about 100 meters of the rails was damaged, which we repaired within eight hours and recovered the normal operation of the railway”, said the director of “Armenian railway” CJSC, Mr. Khrimyan.

– People are under the impression that accidents are an integral part of operating the railways. What is the reason for the last two accidents?

– There have always been accidents. Such accidents cannot be considered serious, as trains might always go off the rails. The reason may be connected with several factors such as the rails, crew, and human factor, which are being investigated now. Certainly, guilty people are punished, and the work goes on. Countries such as France, Italy, Japan and Russia, which have huge financial resources, are not free of such risks either. No means of transport may be100% secure. The reason for the first accident between Nalband and Spitak was heavy rain, and the second case is being investigated now to find out the reasons. We will find out the reason of this accident soon. In both cases the trains were Georgian.

– How many accidents are there each year?

– I can’t say exactly, maybe ten or more.

– Who shall compensate for the damaged cargo?

– After this recent accident, the grain was gathered up and delivered to its owner. There were some losses, which shall be covered by the insurance company. Since 1990, 72.3 kilometers of the rails, out of 850 kilometers, have been reconstructed, thanks to a credit program worth $10 million granted by the World Bank. The remaining part has not been renovated for over 17 years. The reason is not that we don’t want to or we work badly, but we don’t have the financial means to cover the expenses. Before, it used to transport over 30 million tons of cargo each year, but now this capacity does not exceed 3 million tons. Our incomes are made based on such capacity. Only one of the four exit points that existed before is in use now, which connects with Georgia and then connects with the world through ferry transportation through Georgia. Everything has a limit as to how long it can be used. For example, the limit of wooden base is 12-15 years, and that of concrete, about 25 years. The substructures, rails and other facilities have not reached those conditions. In the 306-km line of the Yerevan-Ayrum rails, of which 72-km has been reconstructed with WB support, 160 km still has to be reconstructed in order to make it secure. We are always doing reconstruction, and every year we change 25-30 thousand wooden bases. This year we have purchased 15,000 new wooden bases at our own expense, despite the fact that the price of construction materials has grown by 2-3 times.

– The government was going to privatize only the trains and the other relevant facilities of the railway company, but later they started discussing the issue of creating an Armenian-Georgian-Russian consortium. What kind of program does the government have now?

– The government’s current program is a good one, and it may be very effective for the railway. Thus, pursuant to the program, a competition shall be organized and the railway shall be given under management for 20 years, provided that $170 million is invested. This money must be spent on reconstructing and renovating the railway capacity.

– Some parts of the railway lines in western regions of Armenia are completely destroyed. Were these lines managed by the railway company?

– Nothing is destroyed in the part that is under our company’s management.

– How much is the median wage?

– We have 4300 employees with AMD 65,000 median wage. Almost 20% of our employees work with their families. The mentioned wage is a sustainable source of income for the families from the regions.

P.S. “Armenian railway” may not need so many employees, as it is going to be privatized. The company privatizing it will start its work by cutting down its personnel. It is also worth mentioning that the World Bank is not against this principle, and it has calculated that 60% of the employees may easily lose their jobs.