Competitive Environment of the Russian Railway Wagon Refurbishment Market

Railway transport plays a key role in the functioning and sustainable development of the Russian economy, providing transportation of passengers and cargo throughout the country. Modern Russia inherited the railway transport industry in the form of a post-Soviet monopoly, which itself provided transportation services, as well as by its own efforts ensured the maintenance of rolling stock in working condition, carrying out all types of wagon refurbishments. This study is devoted to the formation of an independent industry of wagon refurbishment services, as well as to the analysis of the way passed so far in building a competitive environment and further prospects for the development of the industry under study. In order to analyze the evolutionary path, the authors relied on the historical and genetic method, and the study of the current state of the wagon refurbishment services industry is based on the application of qualitative and quantitative methods, including the FAS RF market assessment methodology, the study of industries and markets combined in the approach of new institutional economics. The obtained research results allowed the authors to identify 5 stages of the evolution of this industry, characterize each of them in detail, identify features and evaluate the results obtained. Assessing the competitive environment of wagon refurbishment services formed to date, its subjects were described, the economic content of wagon refurbishment service and its types, currently used, institutions that act as a basis for coordination of the agents of the studied market were characterized in detail. According to the results of the study, the current competitive environment of the wagon refurbishment services market was assessed, including indicators of market power and concentration, and the directions and prospects for further development of the competitive environment of the domestic market of wagon refurbishment services were formulated. The theoretical significance of this study lies in the detailed description of the competitive environment of the wagon refurbishment services market, as well as the elements of its structure. The practical significance of this study lies in identifying the weaknesses of the industry and developing directions and recommendations to improve the efficiency of its functioning.