On May 26, the Board of Directors of the South Caucasus Railway (CJSC) - subsidiary of Russian Railways OJSC - held a meeting in Yerevan. Oleg Belozyorov, President of Russian Railways, presided over the meeting.
The SCR press office has told ArmInfo that the meeting covered the financial and economic results of the company's activities in 2015 and in Q1 2016, discussed the plans for 2016 and approved the expenditures for charitable activities.
The participants pointed out that despite the hard situation on the railway service market, SCR CJSC does not operate at a loss and that the company has carried out its concessionary obligations by 102%.
"In Q1 2016, the South Caucasus Railway demonstrated positive dynamics. The investment program is being implemented in line with the concession agreement. The labor productivity has grown by almost 10%," Belozyorov said.
In Yerevan, Belozyorov also met with Armenian President Serzh Sargsyan and Minister of Transport and Communication Gagik Beglaryan. The sides discussed the course of implementation of the concession agreement signed between the Russian Railways and the Republic of Armenia in 2008.
In 2008-2015 the concessionaire invested 104 bln 456 mln AMD in the railway transport sector of Armenia. The investment program expenditures are expected to total 2 bln 520 mln AMD in 2016, which will enable complete fulfillment of investment obligations for 2008-2016 and will allow holding all the necessary events to modernize the railway facilities of Armenia.
South Caucasus Railway CJSC is a 100% subsidiary of Russian Railway OJSC and the concessional manager of Armenian Railway under the Concession Agreement signed on 13 Feb 2008. The Agreement was signed for 30 years but it may be prolonged for 10 more years.