By 2016, “South Caucasus Railways” will work without losses, company’s CEO Shevket Shajdullin told a press conference in Yerevan. According to him, the company failed to reach the planned target of income, fulfilling it at 91.4 per cent.
According to Shevket Shajdullin, in order to support the country’s economy, the company has not raised its transportation rates since 2008 despite the growth of electricity tariffs in April 2009. “Loss of profits amounted to 845 million rubles since we basically did not raise rates, and the new electricity tarriffs, assumed by our company, caused us more than AMD 300 million spending,” he explained.
Thus, according to Shevket Shajdullin, railroaders’ contribution into Armenian economy efficiency, in industry and business has surpassed AMD 1 billion.
The company managed to optimize its costs and reach the planned level of the losses. Now SCR plans to reach breakeven point by 2016, director general said.
