Consolidation of transport within a new government body (360 words)

Published: 7/20/2000

During an official visit to Krasnoyarsk, Mikhail Ivankov, First Deputy Minister of Railways, stated that the Ministry of Railways (MPS) had plans to establish a 'super' Ministry that would incorporate the present Ministry of Railways, Ministry of Transport and FSVT. The proposed merger of Russia`s key transport agencies may reportedly take place within a year, which will allow the consolidation of all critical modes of transport in the hands of the new government's agency. The controversial statement came amidst the lingering reorganisation of FSVT, Russia`s main aviation regulatory body, which for months has deprived Russian air transport of effective regulation. The dramatic fall in volume of passengers travelling by air, paralleled by the considerable growth of rail travel, has raised the significance and the influence of the Railways Ministry. According to Ivankov, the Ministry of Railways will also establish a special state-run joint stock company 'Russian Railways', which will take all Russian railways and facilities under central control. This effectively gives it complete control of travel between the country's towns and cities, given the fact that in many cases there are no other transport options. The possible merger of the Ministry of Transport and FSVT with the MPS, where the Railways Ministry would play the dominant role, potentially could allow the MPS to control all modes of transport. This is a development that is reported to have alarmed both agencies and led to a scramble to persuade them to preserve their independence and direct reporting to the Russian Government. Elsewhere, another possible transport scenario is emerging that may save the FSVT from being subsumed into the depths of the Transport Ministry or the new super ministry and retain its independence. This involves the possible formation of a joint civil aviation authority between Russia and Belarus. Sources within the FSVT indicate that the Governments of Russia and Belarus are currently discussing the formation of such an agency under the Russia-Belarus union. Alexander Lukashenko, Belarus President, is said to be strongly in favour of a joint ministry, believing it would cement ties with Russia before his term in office expires.

Article ID: 1954