photo: Wikimedia Commons / Public domain / CC BY 4.0/Electric locomotive 2ES10-222 with freight train
Russia's rail network, long reliant on a single-track system for much of its operation, is now struggling to keep up with increasing demand and outdated infrastructure.
According to Vadim Volozhanin, head of the Moscow division of Asia-L LLC, the rail system’s failure to adapt to new logistical challenges is costing the country’s transportation industry dearly, with significant economic consequences.
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A Logistics System Under Strain
Volozhanin pointed out that logistics systems are built on cyclicity, with goods, such as containers, following a back-and-forth journey between locations like China and Moscow, ensuring the system operates efficiently. Since Russia invaded Ukraine in February 2022, the Russian rail system, along with other sectors, has faced the consequences of those barbaric actions. The sanctions imposed by the EU and the US as a response have disrupted trade routes and created significant logistical challenges, as RAILTARGET previously reported.
As European markets closed and cargo traffic with China increased, the system struggled to keep up with demand. "A container from China arrives in Moscow, and there it stops—there are no entrepreneurs who would take this container and send it back by rail," said Volozhanin. According to Korkurent.ru, this disruption has caused severe delays, as the usual flow of imported and exported goods is no longer functioning as it once did. The lack of a return flow for empty containers, particularly from China to Russia, has led to increased costs for both platforms and containers, as businesses now pay not only for transportation but also the costs of returning empty platforms. In times of crisis, the cost of rail transport has surged, reaching tens of thousands of dollars.
Russia’s Infrastructure Problems: A Growing Crisis
Aside from the Russian war and its consequences, a key factor behind these issues is the state of the rail infrastructure. Much of the network, except for a few interchanges, operates on a so-called two-string system, meaning that when a train is delayed, there are few alternatives for rerouting. "The entire Russian railroad, except a few railway junctions, is two strings, and if a train stops ahead, it is impossible to maneuver," explained Volozhanin to Konkurent.ru. The system's lack of capacity and flexibility has led to increasing traffic jams, further slowing the movement of goods across the country.
The need for modernization has been long overdue. Russia’s railroads were built more than 50 years ago and were not designed to accommodate the current freight traffic. Expanding the rail network and increasing its capacity are vital to alleviating the current crisis. However, Russian Railways’ priorities, which place passenger traffic and emergency services ahead of freight, have compounded the problem, according to Railfreight.com.
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"Russian Railways has multi-level priorities. The first level priority is passenger traffic. Long-distance trains or electric trains are always given precedence. The second priority is for emergencies or government programs, such as the transportation of military equipment. Freight transportation, unfortunately, is only a third priority," said Volozhanin, explaining that this leaves freight trains consistently delayed, further complicating the already-strained logistics system. In addition, exports from Russia, particularly coal to Asia, have exacerbated the situation. Ports like Vladivostok and Nakhodka are overloaded with coal, and the open-top gondola cars used for coal transport are unsuitable for other goods, adding to the backlog at rail junctions.
The current state of Russian Railways shows how insufficient investment and underdeveloped infrastructure can hinder economic progress. Despite growing demand for freight transport, there is a serious lack of capacity to handle the volume. "We need to expand the railroad network to increase its capacity. It would help stop the traffic jams we are seeing," Volozhanin commented. Entrepreneurs have had to turn to expensive trucks to transport goods, increasing costs and delays. "Under the current conditions, entrepreneurs increasingly have to hire expensive trucks for cargo transportation," said Volozhanin.
Future Prospects and Potential Solutions
The challenges facing Russia’s rail freight system prove the pressing need for significant reforms, particularly in capacity expansion and modernization. Until these investments are made, businesses will likely continue to face rising costs, delays, and inefficiencies in the logistics sector. Earlier reports from Konkurent.ru mentioned that the growing container transport issues in Russia were exacerbated by Russian Railways’ restrictions on the number of container trains to the Far East, in favor of increasing export shipments, particularly coal. This has led to a shortage of empty rolling stock, including fitting platforms, and is a critical factor in the decline of imported cargo loading via rail.
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Source: Konkurent.ru; Railfreight.com