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Rail transport in Russia fell to a 15-year low – media

Photo: Russian ZMI (pictured)

Reasons for freight problems include a lack of network capacity in the east, sanctions, labor shortages and declining investment.

Rail transport in Russia has fallen to a 15-year low due to the war and sanctions. This was reported by Reuters citing sources.

It was noted that among the reasons for the cargo transportation problems are the lack of network capacity in the east, sanctions, labor shortages and reduced investment, as well as limited access to spare parts and lack of locomotive crew.

“The system used to work perfectly, but everything has changed – cargo goes to the east, now priority is given to defense, and the railways cannot cope,” said one of the interlocutors of the agency.

Russian Railways has also seen a big jump in interest payments this year as the central bank raised borrowing costs in an attempt to curb rising inflation and the company cut investments by nearly 40%.

According to sources, Russian Railways did not meet its expansion targets for traffic volume on the Baikal-Amur Mainline and Trans-Siberian Railway. By 2024, Russian Railways has transported about 150 million tons on these eastern routes, which is less than the planned 162 million tons.

Earlier it became known that the Russian Railways recorded a decrease in cargo transportation for the third year, which is related to the sanctions against Russia.

Russia is on the brink of an economic crisis


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Source: korrespondent

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