Armenian Railways: Five Year Business Plan
Operations and Cost Reduction Opportunities
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- Navigate this page:
- 3.2Transportation Services
- 3.2.2Freight Services
- 3.2.2.1Massis
- 3.2.2.2Yerevan Terminal
- 3.2.2.3Karmir Blur
- 3.2.2.4Other Major Terminals
- 3.2.2.5Freight Operating Cost Reductions
3Operations and Cost Reduction Opportunities3.1IntroductionThe Armenian Railway consists of about 750 kilometers of main line track, 200 kilometers of second track, and about 1,400 track-kilometers in total. The main lines of the railway (about 780 track-kilometers) are electrified at 3,000 Volts DC. The basic structure of the network is shown in the diagram below. 
The northern part of the railway is very mountainous, characterized by steep grades and sharp curves. The ruling-grade southbound is between Sanahin and Vanadzor, where the gradient reaches 2.9% and helper locomotives are used. The ruling-grade northbound grade (1.9%) is approaching Vanadzor from Gyumri. Major shunting yards are at Massis, Gyumri and Airum. The line north of Dilijan is closed by slides. There is a section of railway line in the far south of the country, along the Iran border, but it is isolated from the rest of the system by border closings and is not operated. Armenia has closed all but one of its international railway connections. Railway connections to Turkey, west of Gyumri, and to Azerbaijan, east of Ijevan, and south of Norashen have been closed (see the map on page 1). Armenia’s sole remaining international railway connection is with the Georgian railway through Airum. The railway handled some 1.5 million tonnes of freight and about 1.3 million passenger journeys in 1999, both substantially lower than the prior year. Both freight and passenger traffic are projected to decline again in 2000. AR is projected to generate some 600 million gross-tonne-kilometers of freight and 44 million passenger-kilometers in 2000. 3.2Transportation ServicesARC operates about 15 passenger trains and 20-22 through freight trains each weekday. Weekend operations are lower. In addition to the through trains, five to six shunting and local assignments work across the network each weekday. 3.2.1Passenger ServicesPassenger services include one international train between Yerevan and Tbilisi (operating from Yerevan, through Gyumri and Airum to Tbilisi). It operates on alternate days: up one day, down the next. The 14 other passenger trains operated in daily turn-around service—operating out and back from a base city daily. Each direction of operation is counted as a train service. Most of these domestic trains operate with Electric-Multiple-Unit (emu) equipment. One pair of trains operates with locomotive hauled passenger coaches between Armivar and Akshalins. The Yerevan-Yeraskh emu train is shown in the picture below. a    rc emu Services
ARC owns seven emu train sets; two are currently being rebuilt (one in Yerevan Locomotive Depot, shown in the picture above, and one in the Gyumri Locomotive Depot); another is awaiting rebuild at the Yerevan Locomotive Depot. As a result, the Gyumri-Airum service is operated with a VL10 locomotive set and regular coaches. An AR emu includes six pieces of rolling stock, two non-powered cab-cars, three powered center-cars with pantograph, and one non-powered center car. A train is considered to be composed of three 
components, two control-cab-power car units permanently coupled together, and a power car-trailer car combination. Sometimes a train operates with four or five cars. emu services are generally short haul services with few passenger amenities. They operate like commuter trains to and from their origin stations in a day. Emu train services have relatively good patronage—averaging about 80 passengers per train. Many domestic passengers travel with produce and goods to sell in larger cities and extra space is needed for luggage. The international train has lower patronage—averaging about 50 passengers per train (usually a ten car train). Opportunities for reducing the loss on passenger services by improving fare collection or reducing costs appear limited. Revenue collections could be improved by increased policing. Given the low level of current fares, however, increased policing using increased manpower is likely to cost more than the additional revenue collected. On the cost side, emu services are relatively spartan and the equipment, when rebuilt, is reasonably efficient. Less costly equipment is not likely to be found. Modest cost reductions may be available from using fewer station staff; reducing the cost of train cleaning and maintenance;8 or by reducing the number of stations served. In determining the most cost efficient way to provide rural passenger services, the Government of Armenia may find that substitution of rail services with bus services is a viable option for lower density trains. To accommodate the passengers on some of the fuller trains, at least three round trip bus services each day would be required. Such bus services would require new investment greater than the cost of rebuilding electric trains. Bus service operating costs, including the cost of imported fuel, are likely to be greater than the avoidable cost of rail passenger train services now operated. Therefore, service substitution may not represent a significant cost reduction opportunity for the state. 3.2.2Freight ServicesThe major freight route is between Airum, the border interchange with Georgia, and Yerevan, the population center of Armenia. Most freight is import—oil, and grain and grain products. Southbound from Airum, trains carrying imported goods average about 15 or 16 wagons in length, a maximum of 1,300 tonnes, and are pulled by one VL10 locomotive set.9 Northbound trains are about the same physical size but much lighter since the return flow is mostly empty wagons. The grades south of Sanahin are adverse and steep. Southbound trains must be helped over the 2.9% grade by a VL10 helper10 locomotive between Sanahin and a station just north of Vanadzor. Southbound trains from Airum operate to Gyumri where they are marshaled briefly and a few cars are set out. Trains operating between Gyumri and Yerevan are somewhat longer but are pulled by one VL8 locomotive set. Most freight trains operate in cycles between Gyumri and Airum or Massis and Gyumri. Freight trains operate from Massis to other locations as needed. Principal crew change points are at Airum, Gyumri, and Massis. The helper operation and steep grades complicate operations on the northern section of the line. Northbound freights have a shorter running time than southbound partly because of the grades (steepest northbound grade is 1.6% while the steepest southbound grade is 2.9%, both on the Vanadzor to Sanahin segment). While the grades and helper operation complicate train operations somewhat on the northern section of the line, in the past the line carried more traffic than it does currently. The diagram below shows typical daily train operations on the main line between Airum and Yerevan. Daily train volume is quite variable, driven by the arrival of ships in the port of Poti as well as by interchange traffic with the Georgian railways. An inbound shipment of grain can result in six or more trains per day operating between the port and Gyumri.11 Trains are often broken-up at Gyumri and freight destined to northern cities in the region distributed from there. As a result, while there are on average five freight trains a day operating in each direction between Gyumri and Airum, there are on average, about four daily trains in each direction between Yerevan and Gyumri. Freight train operation between Yerevan and Hrazdan and points north and between Yereva and Yeraskh is much less frequent. 
A number of movements, however, occur between Massis and the Yerevan area. Some movements are trains operating into Yerevan terminals, others are local and shunting assignments serving various locations. The major freight terminal areas are described below: 3.2.2.1MassisMassis is the largest marshalling yard in Armenia. It is not a major originator and terminator of freight traffic. Massis has a hump yard with electrically controlled switching but no retarders (skatemen use wheel skates to stop freight wagons, with no control for high impacts). The yard has 16 tracks and the hump is about 1 meter high. A parallel yard runs beside the hump classification tracks and acts as a receiving yard and serves as the passenger yard (see the diagram on the next page). While the hump is no longer used, the yard is still used to marshal and shunt freight wagons for the Yerevan area. Freight volumes are down to about 30 to 50 wagons per day (loads, empties, transit cars) through the terminal. Some trains from the north operate through Massis to points in Yerevan. Two shunting locomotives working from Yerevan Locomotive Depot shunt all yards in the area—Massis, Yerevan, and Karmir Blur. The receiving yard is currently full of stored wagons. A total of 60 transportation staff work at Massis terminal: 32 on the freight side; 20 on the passenger side, with 8 management staff. Freight employees include 5 attendants, 5 operators, 7 staff for ming trains, 5 weighting, 8 signalmen, 1 agent and 1 technical agent responsible for loading and unloading. A signal control board which controls signals and switches in the area around Massis is located in the attendant’s building (see the picture below). The board controls access to the yard as well as the routes through Massis to Yerevan, Gyumri, and Yeraskh. 
T Massis Yard has a wagon depot for wagon repairs. It is active and enclosed and in the past was a wagon washing station.
T This puts the surface where containers are stored at about the same level as the tops of flat wagons used for transport. The container terminal handles an average of six containers a day (three inbound and three out bound) and records about 150 to 200-handlings a month. The freight yard at Karmir Blur is used to store excess wagons and wagons for local shippers and is switched by a shunting locomotive and crew operating from the Yerevan Locomotive depot to and from Massis. Eleven staff are employed on the first shift. These include 9 staff inside the transportation office (2 managers and assistants, 7 clerical staff including billing and cashier staff). Three outside staff include crane operators and loading and unloading staff. The outside staff include switch employees or ground staff for the shunting locomotive. 3.2.2.4Other Major TerminalsOther major terminals are located in Airum and Gyumri. The Airum terminal is used to marshal wagons for interchange with the Georgian railway. Airum is a busy yard with 12 tracks for chambering inbound and outbound trains. Tracks are 15 to 20 wagon lengths long. Normally, five and six freight trains are interchanged each day with the Georgian railway. Cars are pre-cleared for customs in Airum and then proceed to the border crossing point for documents checking and then to a terminal on the Georgian Railway side. A similar process is used for reverse movements. A freight forwarder handles most customs information and one of the AR companies is a freight expediting and forwarding company handling imports into Armenia. The transportation department employs 23 staff, including shunting helpers and clerical staff. There are two shunting assignments working two shifts each day at Airum. Gyumri Terminal is a marshalling, originating and terminating location. Primary use of the terminal in current operations is as a staging area for trains operating between Airum and Yerevan. Crews and locomotives are changed at Gyumri with VL10 locomotive sets hauling trains north of Gyumri and VL8 locomotive sets working trains to the south of Gyumri. Only a few cars terminate in Gyumri each day the terminal does shunt and form trains to operate through Massis to Yerevan. One shunting assignment works in Gyumri. 3.2.2.5Freight Operating Cost ReductionsThe operation of the Armenian Railway is much reduced from its previous scope and volume. Border closings have reduced former main lines to light density branch status. Economic difficulties have reduced both freight and passenger traffic volumes. The railway is carrying less than a tenth of its former volume. While it is likely that the Armenian railway network is now larger than can be economically justified, the railway has reduced assets and employment and reduced the use of excess facilities. Freight operating costs may still be reduced in several ways. First, all stations should be carefully reviewed and the smallest stations closed. Many stations exist as operating stations for train meets. With the substantial reduction in volume, the list of stations necessary for this purpose should be carefully reviewed using a line capacity model. Unnecessary stations should be closed. The number of employees per station can also be reduced, reflecting reduced volumes. There may not be much opportunity to reduce marshalling yards and terminals, but some consideration should be given to closing Massis Terminal and operating all trains into Yerevan Terminal. Over the next few years, the Rollingstock CSJC will be disposing of excess wagons and locomotives. This would free track space in urban areas and provide room for marshaling and shunting trains within Yerevan Terminal. In addition, the on-duty point for locomotive drivers and assistants is at Yerevan Locomotive Depot, just south of Yerevan Terminal. In the future, a transportation computer information system providing waybilling, customs clearances, wagon tracing, wagon distribution and order entry functions as well as rating and pricing should be implemented. This will permit a reduction in commercial station staffing, consolidation of stations, and improvement in wagon fleet management. In addition, a computer system will permit the introduction of a more complex pricing system for freight traffic, helping to build railway volume and revenue. 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he dispatching control panel is an entry/exit type interlocking system for the terminal area. Switches in the classification yard are controlled electrically in the building at the hump crest, not from this panel. 
he container facility has two 20-tonne overhead cranes and a new side loader capable of handling 40-tonne containers. The side loader was purchased with TACIS funds and bears their trademark as do a number of the tractor units we saw in the yard. The container storage and loading platform has been recently built and is in good condition. It is elevated by about a meter from the surrounding roadway.