Russian Railways (RZD) has expanded its 20,7 per cent discount on container transportation in open wagons. The move is aimed at decongesting its Far East railway infrastructure, but it now also applies to transport from the Zabaykalsk border crossing.

The discount is supposed to encourage companies to transport their containers in empty open wagons and declutter public infrastructure. Such a financial stimulus has been in place in the Far East since 2022, but RZD has recently extended the discount to the Zabaykalsk crossing, which is located on the Chinese border just east of Mongolia.

Too many wagons

Russia’s Far East is littered with empty open wagons. Russia transports lots of coal to China and through its ports on the Pacific coast, which are then left empty at the border or in port facilities, says RZD. Those wagons clutter the infrastructure and need to be moved elsewhere, but empty wagons do not bring in any cash. RZD is therefore stimulating companies to use the empty open wagons in the area to transport containers to other Russian regions.

The company hopes that the discount will help reduce its workload by increasing efficiency, which is much-needed at RZD. Infrastructure capacity limitations, locomotive shortages and staff shortages are restricting the ability of the Russian rail network to move freight around.