Russian Railways in Crisis: Freight Traffic has Collapsed to 2008 Levels.
The company 'Russian Railways' is facing a serious crisis, the worst since 2008. According to Bloomberg, the company is having problems delivering goods to China via the eastern railway network, despite optimistic statements from the Kremlin.
Russian Railways has already announced a 30% reduction in next year's investment program due to a sharp rise in credit costs. In November, freight volumes fell by 5.2% compared to last year.
The increase in military cargo further complicates the situation, creating additional strain on the infrastructure.
Sanctions also complicate cross-border payments, which, along with outdated logistics problems, hinder the transportation of important cargoes, particularly coal and aluminum.
Particularly acute problems are observed on the 'Eastern Polygon', which consists of the Trans-Siberian and Baikal-Amur highways, a total length of 14,000 kilometers. These highways were supposed to ensure the reorientation of Russian trade to Asia, but are currently unable to cope with the load.
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