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Status of Productive Industry
Transportation Industry
Development of economy of the Republic of Karelia is substantially defined by steady work of the transportation industry of the republic. In 2004 the volume of cargo transportations of all types of transport has made 15,1 million tons (108.3% to the level of 203), turnover of goods has increased 9.2%, and passenger turnover has increased 16%. Growth has been provided, basically, due to work of enterprises of railway transportation. At the same time, a reduction of volumes of cargoes transported by enterprises of automobile, air and water transport has occured. However, it is necessary to keep in mind that the statistics does not cover all the transport agencies rendering transport services, which underestimates branch parameters, as volumes of cargoes transported by motor transport of carrying capacity up to 3.5 tons is not included, as well as businessmen applying special tax modes are considered selectively.
Railway Transport
Railway transport is the key transport in the republic, about 93% of freight traffic and over 93.4% of passenger traffic fall on its share.
According to the Agreement between the Government of the RK and Russian Railways, Inc., in 2004-2005 almost all parties' obligations for 2004 have been performed. To cover suburban passenger transportation losses from the budget of republic 12,7 million rbl. has been allocated. Re-structuring of debts of enterprises of the branch to all levels of budgets and unappropriated funds has been accomplished. Reduced power rate for railway transportation enterprises allowed the latter to receive over 77 million rbl. of additional income in 2004.
Suburban passenger transportation remained in full. The budget of the RK assigned 25 million rbl. to purchase 3 electric train head cars for organization of suburban passenger transportation of created passenger company Karelprogorod. The joint mutually acceptable solution on functioning of ineffective lines has been found. Work on closing stations regarding some kinds of operations has been accomplished.
More than 2,7 billion rbl. of investments has been involved in 2004 for railway transport development due to which electrification of Idel-Svir site proceeded, construction of railway station in Segezha has begun, digital automatic telephone exchange in Petrozavodsk has been established, ways of Kem station have been lengthened, the project of reconstruction of Wärtsilä station has been developed.
In 2004, due to growth of industrial production in the republic, volumes of railway cargo transportation have increased increased up to 13,9 million tons of cargoes, that exceeds level of 2003 9.8%. Growth has been achieved due to increase in transportations of iron ore, timber and building cargoes. Industrial enterprises' payments for rolling-stock submissions has improved.
Teamwork of the Government of the Republic of Karelia andRussian Railways, Inc., resulted in the Agreement on cooperation, according to which Russian Railways, Inc., in 2005 plans to invest more than 6,7 billion rbl. in the economy of the republic to continue construction and reconstruction of objects of the railway, including completing electrification of Idel-Svir site.
Motor Transport
Now about 1940 enterprises of the republic, organizations of various patterns of ownership and entrepreneurs working on the basis of cargo and passengers transportation licenses are engaged in motor transportation. The aggregate number of cargo and passenger vehicles makes 7126 units and in comparison with 2003 has increased by 353 units.
Motor transport in 2004 delivered to consumers 557,8 thousand tons of cargoes (95% to the level of 2003). The turnover of goods was 6.5% reduced. One of the reasons of reduction of cargo transportation parameters is that according to the current legislation bodies of statistics do not consider transportation of cargoes by private carriers and enterprises switched to the uniform income tax payment completely.
In 2004 5,5 million passengers (135% to the level of 2003) has been transported. In the center of attention of the Government of the RK there were aspects of effective functioning and further development of public passenger motor transport in the republic. Problems of organization of inter-city and suburban passenger transportation, increases in financial aid to local budgets on reimbursement related to privileged public transportation of some categories of citizens have been considered.
Regular suburban transportation for the spring-and-summer period including due to attraction in transportation process of more than 30 commercial buses of small capacity has been provided.
The Government of the RK solved problems of organization and expansion of the inter-city network bus voyages. The following additional bus voyages have been organized: Petrozavodsk-Pudozh, Petrozavodsk-Segezha, Kostomuksha-Byelomorsk, Kalevala-Kostomuksha, Petrozavodsk-Olonets, Petrozavodsk-Kalevala, and Kostomuksha-Segezha. Assistance to institutions of local government in organization of transportation of the population within the limits of borders of municipal formations along long-distance buses' lines has been rendered. The budget of the RK for 2005 provides 37,5 million rbl. for purchase of buses for inter-city and suburban transportation of passengers.
Air Transport
In 2004 Airport Petrozavodsk Joint-Stock Company and Northwest Base for Aviation Forest Conservation Federal State Enterprise have transported 12,0 thousand passengers, or 13% more than in 2003. The international flight Cherepovets-Petrozavodsk-Helsinki-Cherepovets and local flight from Petrozavodsk to Sennaya Guba through Kizhi has been implemented. Delivery of cargoes was carried out to the cities of Archangelsks, Naryan-Mar, and Yakutsk.
During the year the Government of the RK has been working on preservation of the international airport status for Besovets airport, prolongation of the temporary aeroport activity sanction issued to Airport Petrozavodsk Joint-Stock Company. On the Day of the Republic a temporary passenger terminal was opened in Besovets airport, for its construction the budget of the RK has allocated 20,9 million rbl. Put of this terminal into operation has allowed to improve quality of service rendered to passengers and operating conditions of the attendants, as wel as enables speeding up the work of airlines granting services to the population.
In 2005 work with investors on implementation of the project of building modern international air terminal in Petrozavodsk will continue. Upon its putting into operation the aircraft will be able to take a powerful place in the transport industry of the republic.
Water Transport
According to the State Committee for Statistics of the Republic of Karelia in 2004 water transport have transported 542 thousand tons of cargoes, the number of passengers transported has made 169,2 thousand people and has increased 3.1% to the level of 2003.
Navigation opening problems were solved in due time. Passenger transportation losses occured due to preferential categories of passengers were financed in full. Transportations of passengers on all lines to Pudozh and Medvezhegorsk districts on a high-speed excursion line from Petrozavodsk to Kizhi, transport high-speed line from Petrozavodsk to Shala (Sennaya Guba, Kizhi, Velikaya Guba), intercity line Petrozavodsk-Zimnik-Barany Bereg, ferry in Shala have been kept. Transportation on a route from Byelomorsk toSolovki has been organized in addition.
With a view of replacing and updating the fleet in 2004 in Onego Ship-Building Factory, Ltd., has launched 2 new vessels for "river - sea" navigation (Rosiyanin, Ukrainets). Construction of new vessels will proceed.
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