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Social policy finds its support

Issues of business’ social responsibility were discussed on 11th of March at the meeting of deputies of the Committee for social and cultural development of the Senate of the Parliament of the Republic of Kazakhstan with the leaders of national companies, holdings and business-structures. Report by the Vice-president of JSC “NC “Kazakhstan temir zholy” for human resources and social affairs Askhat Akchurin received approval and support of elected representatives of the people.

The chairman of the Committee Akhan Bizhanov started discussion with underlying the importance of issues of protection of workers’ rights, personnel development, social protection on employers’ part for stability in the society and the state.

In his opinion, the real sector companies, working in such an important and vulnerable sphere as social one, must use world’s experience, adhering to the principles of transparency, environmental safety and comply with standards of employment relationship.

The Vice-president of KTZ in his report gave a detailed account of the personnel policy of the national company, which is built on the principles of personnel management, considered coordination of processes within this sphere. The deputies were informed in detail about the content of “social package”, provided for railroaders, measures to support young people and pensioners of rail transport and other components of social responsibility of transport holding “KTZ”.

Members of the Senate’s committee for social and cultural development fully supported the work of the national company in the field of personnel management and social protection, thanked the company’s management for a thoughtful policy in this area, made a number of constructive suggestions for improving the social support for railroaders.

Press service of JSC “National company “Kazakhstan temir zholy”.

KTZ: Aspiration to innovation and progress

The JSC “NC “Kazakhstan temir zholy” became a winner of the first National Contest “Senim-2010” for the best employer. The Company received diplomas and silver statuettes in the “Best National Company-Employer” and the “Best HR-project” nominations.

The results of the contest, which began in November 2010, were announced during the VI International conference “Human resource management: innovations in HR” that was held under the auspices of JSC “National welfare fund “Samruk-Kazyna”.

The purpose of “Senim” is to identify and encourage Kazakhstan companies, which enjoy people’s confidence, as the best employers. It was organized by the Association of HR managers in Kazakhstan, “Corporate University “Samruk-Kazyna”, Institute of Social and Political Studies in Kazakhstan.

There were 5 stages in the contest. The first one involved a sociological survey of 3000 Kazakhstanis with “Change in living standards, job satisfaction and social well-being of the population of the Republic of Kazakhstan”. During the second and third stages experts collected and analyzed applications from participating companies with at least 50 employees. In the fourth stage the jury evaluated companies’ projects in the field of human resource management, which applied to participate in the “Best HR-project” nomination.

According to the results of the survey, interview and company’s HR-project presentation, the jury of 11 experts in the field of personnel management awarded the JSC “NC “Kazakhstan temir zholy” with a diploma of first degree in the “Best HR-project” nomination for the “Youth policy” project and diploma of second degree in the “Best national company employer” nomination.

- In our work we focus on the best international practice of corporate governance, work on improving the quality of human resources and improve the system of labor motivation, - said at the ceremony the Vice-president for human resources and social affairs Askhat Akchurin.

According to him the Company has a motivating social support for railroaders: providing them with accommodation, medical insurance, welfare benefits and financial aid. Because of this over the last two years the employee turnover has dropped from 14 to 9.9%, while the level of job satisfaction increased to 65%.

The Company’s youth policy is also very effective. Here, the Council of the Youth Wing “Zhas Otan” and the Council for Youth Affairs of JSC “NC “KTZ” has been established in order to represent interests of the Company’s young employees, develop various social programs to increase workers’ labor motivation. Every year the Company organizes a camp for young workers “Sen bolmasan, Kim?” (If not you, then who?), regional and national Forums of young workers “Zhastar – temirzhol bolashagy” (The youth is the future of railway) as a part of “Project management” and “Future managers” programs.

These and other programs and projects of the Company’s Youth policy not only help to solve social issues of young railroaders but also to identify talented and promising young employees, teach them competent project management, increase level of education within their sphere, increase the number of potential workforce.

For reference: According to the diagnosis ran by S&P, KPMG agencies and National Welfare Fund “Samruk-Kazyna”, the JSC “NC “KTZ” became the best one in the quality of corporate governance in 2010 among all fund’s subsidiaries – 59%, which corresponds to the best world practice.

Press service of JSC “National company “Kazakhstan temir zholy”.

Training in London

Specialists from JSC “NC “Kazakhstan temir zholy” and its subsidiary JSC “Kaztemirtrans” took a training in the British capital in working with financial tools and using them in railways’ functioning.

During the sessions participants were able to acquire knowledge and skills in risk management, funding, access to debt capital markets, working with export credit agencies, hedge currency and interest rates, considering similar operations in IFRS and others.

Such skills are extremely relevant today given the Development Strategy of “Kazakhstan temir zholy” till 2020, part of which presumes using a wide range of financial tools in order to ensure long-term financing, reduce financial risks and prompt response to them.

The training in London took place on the initiative of JSC “HSBC Bank Kazakhstan”. According to organizers, investors are interested in working with such companies as KTZ, that show good financial indicators, large cash flows and stable credit ratings. And practical mastery of modern technologies in financial and credit sphere is a timely step to train employees of such companies with activities of this kind.

Press service of JSC “National company “Kazakhstan temir zholy”.

Связующая роль ОСЖД

The connecting role of Organization for Cooperation between Railways (OSJD).

Almaty hosts a meeting of III commission of OSJD involving representatives of railways and foreign trade organizations of the Republic of Kazakhstan, the Socialist Republic of Vietnam, the People’s Republic of China, the Democratic People’s Republic of Korea, Mongolia and Russian Federation.

The meeting’s agenda includes issues of traffic volumes between the countries for 2011, measures for their implementation and other topical questions of mutual cooperation.

Kazakhstan and Chinese railroaders will be developing high-speed traffic

As a part of state visit of the President of the Republic of Kazakhstan Nursultan Nazarbayev to the People’s Republic of China, on 22nd of February, 2011 the JSC “National Company “Kazakhstan temir zholy” and the Ministry of Railways of China signed a Memorandum on cooperation in building a high-speed railway Astana-Almaty.

The document was signed by the President of JSC “NC “Kazakhstan temir zholy” Askar Mamin and the Minister of Railways of China Sheng Guantszu.

The Memorandum reflects the parties’ desire to jointly conduct a feasibility study of the construction of high-speed railway between the Almaty and Astana cities.

Chinese railway is one of the longest in the world. Its total length is 86,000 km. High-speed trains came to China in 2007. Currently, this country has the world’s largest high-speed railways network with total length of more than 7,055 km, including the 1,995 km road section, where train’s speed exceeds 350 km/h.

In 2008 a speed record of 394,3 km/h for Chinese railways has been set at Beijing-Tianjin route. This line is 117 km long, 100 km of which are laid on overpasses and 17 km on embankment.

Today the train speed at Beijing-Tianjin route reaches 350 km/h.

The construction plans of the first high-speed railway in Kazakhstan are the part of systematic activities of the national company “Kazakhstan temir zholy” aimed at increasing the trains’ speed and improving the quality of passenger service.

Currently the passenger train “Tulpar” runs between Almaty and Astana at a route that combines passenger and freight traffic with 120 km/h speed on average.

This fact does not allow to keep the infrastructure in such state that could allow to increase the traffic speed.

The world experience shows that high-speed passenger transportation is carried out via specially constructed railways with a specific technology of service and maintenance of track facilities and infrastructure.

In the last day of his visit, 23rd of February, Nursultan Nazarbayev visited the Beijing South Railway Station, which is nowadays the largest one in Asia. 24 station train tracks and station facilities, as well as 13 boarding platforms are covered with a ceiling of 320 thousand square meters. The station has a capacity to dispatch 30,000 passengers per hour.

The Head of the State took a ride via “Beijing-Tianjin” route in one of the fastest trains in the world. The distance of 130 km took less than half an hour.

Press service of JSC “National company “Kazakhstan temir zholy”.

Going in a right direction

Authorized representatives of railway administrations of member-states of the Commonwealth of the Republics of Latvia, Lithuania and Estonia held a meeting in Baku from 15th to 18th of February to discuss and agree on the direction of car traffic, number of freight trains, their weight and length at interstate butt joints, plan on formation of freight trains and cars with containers in international traffic for 2011-2012.

The Kazakhstan delegation, which included employees of the Department for planning and regulating transportation process and the branch of JSC “NC “KTZ” – “Management of transportation process” as well as workers from Uralsk and Shymkent road divisions, attended the meeting.

During the meeting the participants made general provisions and basic principles on the direction of car traffic, agreed on the direction of cars, loaded on stations in Kazakhstan and direction of cars with containers bound from Europe to countries of Central Asia via Kazakhstan. Proposals made by the Department for planning and regulating transportation process, including an increase the size of traffic at the interstate butt joint Presnogorkovskaya, were fully accepted.

Given the difficulties of organizing the transportation process, the need to coordinate activities of all participants of the transportation process, the successful solution of tasks of railway administrations in managing the car traffic are a priority in Company’s functioning for 2011.

Press service of JSC “National company “Kazakhstan temir zholy”.

Prospects of future cooperation

On 14th of February in Washington D.C. (U.S.A.) the president of JSC “National company “Kazakhstan temir zholy” Askar Mamin met with the chairman of the Export-Import Bank of the United States of America Fred Hochberg to discuss the issues of future cooperation in financing the production of “Evolution” locomotives in Kazakhstan.

Currently the total volume of project financing by Ex-Im Bank has reached over 150 million US dollars. The funds were used to purchase units of equipment to modernize the engine yard of KTZ subsidiary – JSC “Locomotive”. Fred Hochberg noted the full compliance with financial obligations of “Kazakhstan temir zholy” on previously signed loan contracts with the bank.

The sides mentioned the importance of collaboration in questions of organizing the financing of locomotive production at the locomotive factory in Astana. In 2010 the enterprise produced 30 diesel locomotives, in 2011 the volume of production will increase to 73 units, in the subsequent years the production volume will reach the plant’s estimated capacity – 150 locomotives per year.

Railroaders participate in Olympic torch relay race.

Railroaders took part in the relay race of the Olympic torch of the 7th Asian Winter Games 2011.

The ceremony of lighting the Olympic torch of the Asian Winter Games 20111 was held in Kuwait on January 11, the next day the torch was delivered to Kazakhstan.

The torch relay went through all regions of Kazakhstan, more than 1000 of our compatriots were honored with carrying the torch.

Among the torch bearers of the Asian Games was the President of JSC “National Company “Kazakhstan Temir Zholy” Askar Mamin. He is well known for his achievements in developing physical training and sports. Askar Mamin heads Kazakhstan Ice Hockey Federation, the National Company “Kazakhstan Temir Zholy” is the sponsor of “Barys” hockey club, which successfully performs in the Continental Hockey League, and “Locomotive” football club.

Physical training and sports are the priority areas of social policy on railway transport. Many athletes-railroaders successfully perform in the competitions of various kinds, including international ones.

The list of participants of “fiery relay race” included a sport instructor at KTZ branch “Akmola road division”, coach of a higher category and national referee of a higher category Nikolai Melnikov. On 22nd of January he proudly carried the torch through the 200-meter long distance in Resort-Borovoye zone and handed it to the next participant.

N. Melnikov trained three female football players, members of Kazakhtsan's national football team, that took part in a qualifying Olympic football tournament in Nyon city (Switzerland). Five football players from his team play also in female football team of Akmola region. He was decorated with the medal of Football Federation for the development of football in Kazakhstan.

Press service of JSC “National company “Kazakhstan temir zholy”.

Results of 2010: high indicators of shipping operations, security, workers’ social protection

A meeting on the outcomes of railway industry in 2010 and goals for 2011 was held in JSC “National company “Kazakhstan temir zholy”.

The meeting was addressed by President of JSC “NC “KTZ” Askar Mamin, Vice-presidents, heads of affiliated joint-stock companies and road divisions.

In 2010 railroaders improved all operational and financial indicators by the plan and year of 2009. Freight turnover amounted to 213 billion ton-kilometers, 268 million tons of cargo were transported, which is 8% higher compared to 2009. Passenger traffic reached 13,9 billion passenger-kilometres, which is 7.8% higher than in 2009. Volume of capital investments in 2010 is twice as greater than in a previous period.

In 2010 seven strategic goals, which were set by the Head of the Sate and the Government, were successfully realized in the industry. At the same time railroaders’ labor productivity increased by 29% compared to 2009 and amounted to 4 million thousand tenge per person. In order to organize high-speed passenger service a new logistic model was introduced, through which the range of high-speed trains’ network increased from 1 300 km in 2009 to 1 623 km in 2010. 

The EBRD supports modernization of freight cars fleet in Kazakhstan

Today the European Bank for Reconstruction and Development and the subsidiary of JSC "National Company "Kazakhstan Temir Zholy" (KTZ) JSC "Kaztemirtrans" (KTT) signed an agreement for the provision of 200 million U.S. dollars in order to purchase new freight cars.

An eight-year loan will be divided into two equal tranches and issued in U.S. dollars and tenge in equal proportions. Using this "NC "KTZ" will continue implementing its program of modernization of freight cars fleet by purchasing more than 3,000 freight cars.

This loan is directly related to the purposes of renovation of the freight cars fleet, which are reflected in the Program for the development of transport infrastructure in the Republic of Kazakhstan for 2010-2014 as well as in the Development strategy of the company. According to these plans more than 20,000 of new freight cars will be brought into railway service by 2015.

The president of JSC "NC "KTZ" Askar Mamin emphasized that "the active involvement of the European Bank for Reconstruction and Development is crucial for the reform process in the railway industry".

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