The South Caucasus Railway Company plans to switch to break-even production in 2011, director of the company Shevket Shaydullin said, ARKA reports.
He said that the company lost 1 billion drams in 2010, and that most of the sum came from business and passenger transport. The company plans to increase profitability by 16%.
Shaydullin rounded-up 2010 by saying that it was another stage of improving the budget management system with orientation on clarity and organization of control. He noted the efficiency of the company“s investment policy.
The director general said that 2010 can be characterized as a year of business optimization for the realization of plans in infrastructure and an improvement of the market potential of the South Caucasus Railway. Separate parts of the business started switching to competitive conditions in 2010.
Indicators grew by 5.1%, trade turnover by 3.5%, parameters of passenger turnover increased by 46%. Freighting carriages improved by 40%, productivity of locos and carriages increased by 30% and 38% relatively, compared with 2009.
The income plan of main activities was fulfilled by 5.2% in 2010, making 12.463 billion drams, while operation expenses dropped by 3.2%, making 14.241 billion drams, compared with 2009.
The South Caucasus Railway Company is a 100% subsidiary of the Russian Railways Company. It is under concessional management of the Armenian Railway, according to a deal signed on February 13, 2008. The deal lasts 30 years and can be prolonged by 10 more years.
