Merganov Avaz Mirsultanovich
Tashkent Institute of Railway Engineers
Teacher of the “Economics and Management” Department

The introduction of corporate governance contributes to the effective use of equity and debt as well as to sharing interests of a wide range of stakeholders by companies. The study of the leading models and generalization of foreign experi-ence allow to make recommendations for the implementation of best corporate governance practices.

Keywords: corporate governance, joint-stock company, organizational structure, railway complex

Article reference:
Analyses of international practice of corporate governance in railway // Economics and innovations management. 2017. № 3 [Electronic journal]. URL:

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The problem of installation and improvement of corporate governance is calling an increased interest of government, public organizations and governmental organs of legislature and executive authority. As the proof of an increased interest of government, we need to mark the ordinance of the President of Republic of Uzbekistan “About the action for the installation of modern methods of corporate governance into shareholder societies” (2015) [1]. Current ordinance affects fully on the activity of “Uzbekistan Railways”. According to this, it is necessary to analyze the experiments of the abroad countries in order to exploit own methods of improving the corporate governance in the shareholder societies and in the railway complex of Uzbekistan [6].

According to the variations in the railway branch (reformation of governmental shareholder railway company to shareholder society) appeared the proposal for dividing the infrastructure of transport in the form of European railways. According to official informational bases and messages of railway company, at the moment the question of dividing the infrastructure of transport in the form of European railways is not being examined and in the informational messages it is not informed [7]. At this stage, a lot of structural variations are installed to the administration of railways, and among the targets of ordinance, the most important ones are the improvement of the transparency of functioning and growth of effectiveness of shareholder societies.

We find it necessary to analyze the experiments of the abroad countries for defining needs of dividing the company into transporters and infrastructure owners.

As it is shown in the table, the full division into independent functioning subjects is called the Swiss model and is utilized by many railway administrations in the EU.  There is the German model as well, which is based on the organization of holding companies, but holding control over the most important issues [2, 3].

Table. 1. Types of competitive models of railway transport

Organizational separation

Complete separation (Swedish model)

Branch of infrastructure ownership rights (French model)

Holding companies (the German model)

A vertically integrated company

United Kingdom





Czech Republic


Northern Ireland


















But, it is very important to take into account the economical, national and social features, where the railway transport is functioning, in choosing the model of improvement. The special feature of the reformation of the railway administrations in the EU is, as it is said above, the division of transporting process from monopoly sphere, of in another word from infrastructure. The progress is supplied with the result of the growth of (in some situations, arising) rivalry.

In the transport sphere of Central Asia dominates the strategy of the division of the functions of governmental regulation and the functioning activity. Reforms in that kind are not noted, besides the reformations in the railway sector of Kazakhstan on the base of the German model.

Making a decision about the form of reformations of administration and functioning the railway system is difficult according to the national and regional features of every country, there is no model, which is available for all administrations of railways. every situation needs to be checked separately. The lack of statistics for the objective evaluation of the growth of effectiveness of the functioning the railway branch is making difficult the process of making a decision too. Because, every railway company possesses the specific feature, these supply him with the advantages besides the form of functioning. As an example, we can mark the countries, where transit transportings are developed, this is always beneficial.

According to the opinions of analytics, the most effective models from the table №1 are Swiss and German models of the administration.

The Swiss model from 1994 to 1999 (the period of occurring the process of division) showed the growth of work effectiveness in Great Britain and Denmark 102.2% and 95.1% respectively, and production actives grew to 7.1% and 19.6%, at this moment, the German model showed the growth of work effectiveness 80.7% and production actives grew to 19%.

Apparently, the railway transport is the most important system of the economy of the country, from this point of view we can conclude that, what is exactly good for the railways will be useful for society and country (but, is not proven at the moment, that the reformation of infrastructure leads to the growth of company benefits).

In the project “Research of the subadditiveness of expenses in dividing the infrastructure and transportation in the example of railways of the USA”, authors came to this conclusion.

In the case of dividing the infrastructure and transportation into two companies, where one of them has the infrastructure and the another deals with the transportation of the goods only, expenses grow at 20-40% comparing to the simultaneously integrating companies. Current conclusions were made by Estonian “Ministry of  Economy and Communication”, which recommends the incorporation governmental companies of transport sector, that gives 8.8-14.8 euro supplementary benefit yearly [4]. In another word, in the result of the reformation with usage of EU models leads to the financial expenses in the transportation of goods, as a result, effects badly on the economy of the country [6, 8].

The transition to the new form of administration occurs with the difficulties and deterioration of the railways (temporarily), but there is no guarantee for arising the positive results. For this reason, we can make a basic summary, we should not transit to the EU system of administration of railway transport until it will not  be in detail researched and guaranteed its positive effects.

  1. Указ Президента Республики Узбекистан от 24 апреля 2015 г. № УП – 4720 «О мерах внедрению современных методов корпоративного управления в акционерных обществах» // Собрание законодательства Республики Узбекистан, 2015 г., №17, ст. 204.
  2. Антонов В. Г. Корпоративное управление // В. Г. Антонов [и др.]. М. : Форум : ИНФРА-М, 2009.
  3. Теоретическая оценка целесообразности отделения перевозочной деятельности от инфраструктуры в рамках третьего этапа структурной реформы на железнодорожном транспорте. – АНО «ИПЕМ», 2009.
  4. Экономические эффекты вертикального разделения в железнодорожном секторе. – Институт исследований в сфере транспорта: Университет Лидса, 2012.
  5. Мерганов А. М. Вопросы повышения эффективности естественных монополий //Журнал научных публикаций аспирантов и докторантов. – №. 3.
  6. Gulamov A. The issues of economic efficiency of the fixed assets reproduction process in investing activities of railway company. // Наука и Мир. 2016. Т. 2. № 10 (38). С. 37-41.
  7. Методы стратегического анализа в железнодорожном комплексе. Мардас А.Н., Гуляева О.А., Румянцев Н.К., Третьяк В.П. монография / Санкт-Петербург, 2013. C. 45.
  8. Гуламов А. А., Gulamov A. A. Совершенствование методов целевого использования амортизации в воспроизводственном процессе основных фондов железнодорожной компании //В журнале опубликованы научные статьи по актуальным проблемам современной науки. Материалы публикуются на языке оригинала в авторской редакции. Редакция не всегда разделяет мнения и взгляды авторов. Ответственность за достоверность фактов, имен, географических названий, цитат, цифр и других сведений несут авторы публикаций. При использовании научных идей и материалов этого сборника, ссылки на авторов и издания являются обязательными. – 2016. – С. 103.

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