TRANSPORTATION GROWTH AND TRENDS IN THE USSR 1950-65

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CIA-RDP79R01141A001900030001-6
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February 1, 1961
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Declassi fied in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 SECRET Economic Intelligence Report N? 122 TRANSPORTATION GROWTH AND TRENDS IN THE USSR 1950-65 CIA/RR ER 61-3 February 1961 CENTRAL INTELLIGENCE AGENCY Office of Research and Reports SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 SECRET Economic Intelligence Report TRANSPORTATION GROWTH AND TRENDS IN THE USSR 1950-65 CIA/RR ER 61-3 WARNING This material contains information affecting the National Defense of the United States within the meaning of the espionage laws, Title 18, USC, Secs. 793 and 794, the trans- mission or revelation of which in any manner to an unauthorized person is prohibited by law. CENTRAL INTELLIGENCE AGENCY Office of Research and Reports SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T FOREWORD During 1950-65, certain basic trends in inland transport are being established in the USSR, and other trends established before this time are being continued or reversed. These trends in transport have sig- nificant influences on the economic growth and military potential of the country. The purpose of this report is to point out these trends and to measure the extent of their effect. Inland transport includes railroads, highways, inland waterways, coastal shipping, and pipe- lines -- the modern carriers that comprise the Soviet capability to move freight and passengers within the country. Comparisons with in- land transport in the US are incorporated when they are helpful for obtaining an understanding of Soviet problems. Every effort has been made to effect complete comparability in the basic data used in these comparisons. It has been necessary to provide only gross analysis of many per- tinent aspects of Soviet transport in order to keep the length of the report within manageable limits. S-E-C-R-E-T 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Summary I. II. CONTENTS Page and Conclusions Introduction Transport Performance and the Economy 1 5 5 A. Freight Service 5 B. Passenger Service 6 C. Relationship of Transport Performance to Economic Growth 7 III. Development and Maintenance of the Transport System . . 9 A. Railroads 9 1 Administrative Organization 9 2. Plant 10 a. Network 10 b. Inventory of Freight Cars and Locomotives 12 (1) Freight Cars 12 (2) Locomotives 14 3. Labor Force 16 B. Highways 18 1. Administrative Organization 18 2. Plant .. 19 a. Network 19 b. Vehicle Inventory . .. 20 3. Labor Force 21 C. Inland Waterways 21 .4 1. Administrative Organization 21 2. Plant 22 a. Network 22 b. Fleet Inventory 23 S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S- E- C- R- E- T 3. Labor Force D. Pipelines 1. Administrative Organization 2. Plant Page 24 25 25 25 IV. Trends in Freight Traffic on Individual Carriers ? ? ? 27 A. Railroads 27 1. Freight Traffic by Major Commodity Groups . ? ? 27 2. Freight Traffic by Region 28 B. Motor Transport 28 C. Inland Water Transport 29 D. Pipelines 30 V. Operating Efficiency 31 A. Railroads 31 B. Motor Transport 33 1. Utilization of Equipment 33 2. Utilization of Network 33 C. Inland Water Transport 34 1. Utilization of Equipment 34 2. Utilization of Network 35 D. Pipelines 35 VI. Rate Structures and Policies 36 A. Railroads 36 B. Motor Transport 38 C. Inland Water Transport 39 D. Pipelines 14.0 VII. Costs, Revenues, and PrOfits 140 A. Railroads 40 B. Motor Transport 42 S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T C. Inland Water Transport D. Pipelines Page 43 VIII. Capital Inputs and Productivity 44 A. Capital Allocations 44 B. Capital Investment) Fixed Assets, and Capital Productivity 44 1. Railroads 46 2. Motor Transport 49 3. Inland Water Transport 49 4. Pipelines 50 Appendixes Appendix A. Statistical Tables 51 Appendix B. Methodology 85 Tables 1. Ton-Kilometer Performance by Inland Transport in the USSR and the US, by Mode of Transport, 1950, 1955-59, and 1965 Flan 52 2. Passenger-Kilometer Performance by Inland Transport in the USSR and the US, by Mode of Transport, Selected Years, 1950-58, and 1965 Plan 3. Passengers Carried by Inland Transport in the USSR, by Mode of Transport, Selected Years, 1950-58, and 1965 Plan 4. Indexes of Performance of Inland Transport and Other Economic Indicators in the USSR and the US, Selected Years, 1938-65 S- E- C-R- E- T 53 54 55 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S- E- C-R- E- T Page 5. Railroad Network in the USSR, 1950, 1958-59, and 1965 Plan 56 6. Estimated Inventory of Railroad Freight Cars in the USSR, Selected Years, 1945-59, and 1965 Plan 57 7. Estimated Inventory of Mainline Locomotives in the USSR, Selected Years, 1946-65 58 8. Railroad Labor Force, Productivity, and Earnings in the USSR and the US, 1950-58 and 1965 Plan 59 9. Volume and Selected Characteristics of Motor Freight Traffic in the USSR, Selected Years, 1950-59, and 1965 Plan 60 10. Length of the Highway Network in the USSR and the US, Selected Years, 1950-59, and 1965 Plan 61 11. Estimated Inventory of Motor Vehiclesin the USSR, Selected Years, 1950-58, and 1965 Plan 62 12. Mainline Petroleum Pipeline Transport in the USSR, 1950-59 and 1960 and 1965 Plans .... .. ? ? ? ? 63 13. Commodity Composition of Railroad Traffic in the USSR in Ton-Kilometers, 1950-58 64 14. Commodity Composition of Railroad Traffic in the USSR in Tons Originated, 1950-58 and 1965 Plan 65 15. Average Length of Haul per Metric Ton of Railroad Freight in the USSR, by Principal Commodity, 1950-58 66 16. Railroad Freight Traffic in the USSR, by Economic Region, 1940, 1950, and 1955 67 17. Tons Originated by Inland Transport in the USSR, by Mode of Transport, Selected Years, 1950-59, and 1965 Plan 68 18. Distribution of Total River Cargoes in the USSR, by River Basin, 1955 69 - xi - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Page 19. Performance of River Transport in the USSR, Selected Years, 1945-58, and 1965 Plan 70 20. Average Freight Car Performance of Railroads in the USSR, 1950-58 and 1965 Plan 72 21. Average Freight Train Performance of Railroads in the USSR, 1950-58 and 1965 Plan 73 22. Profits, Revenues, and Costs of Railroad Operations in the USSR, 1940, 1950-58, and 1959 and 1965 Pla.ns 74 23. Average Revenue Rates for Selected Commodities as a Percent of Unit Costs of Railroad Freight Traffic in the USSR, Selected Years, 1949-56 75 24. Profits, Revenues, and Costs of Railroad Passenger Operations in the USSR, 1940, 1950-58, and 1965 Plan 76 25. Profits, Revenues, and Costs of Railroad Freight Operations in the USSR, 1940, 1950-58, and 1965 Plan 77 26. Profits and Budget Transaction of the Ministry of Railroad Transportation of the USSR, 1950-59 and 1965 Plan 78 27. Profits, Revenues, and Costs of Inland Water Transport Operations in the USSR, 1950-59 and 1965 Plan . . . . 79 28. Estimated State Budget and Nonbudget Allocations for Transport and Communications in the USSR, 1950-51, 1956-57, 1952-55 Plan, and 1958-59 Plan 80 29. Estimated Capital Investment in the National Economy, Transport and Communications, and Railroad Transport in the USSR, by Plan Period 81 30. Capital Inputs of Railroad Transport in the USSR, 1950-59 and 1965' Plan 82 31. Estimated Capital Investment in Transport in the USSR and the US, 1951-59 83 32. Estimated Fixed Assets, Depreciation Charges, Output, and Capital-Output Ratios for Railroads in the USSR, 1950-58 and 1965 Plan 84 - xiii - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Illustrations Figure 1. USSR and US: Ton-Kilometer Performance of Inland Transport, by Mode of Transport, 1950, 1955-59, and 1965 Plan (Chart) following page Figure 2. USSR and US: Comparative Indexes of Inland Freight Transport and Industrial Production, Selected Years, 1950-65 (Chart) following page Figure 3. USSR and US: Comparative Indexes of Inland Freight Transport and Gross National Product, Selected Years, 1950-65 (Chart) following page Figure 4. USSR and US: Index of Ton-Kilometers Performed by Inland Transport per Metric Ton of Basic Production, Selected Years, 1938-58 (Chart) following page Figure 5. USSR: Railroad Systems, Summer 1960 (Map) inside back cover Figure 6. USSR: Railroads, 1960 (Western, Central, and Eastern Sheets) (Map) inside back cover Figure 7. USSR: Typical Freight Yard on Rail Network (Photograph) page Figure 8. USSR: Typical Four-Axle Freight Car in General Use (Photograph) page Figure 9. USSR: Obsolete Two-Axle Freight Cars (Photograph) page 6 8 8 10 10 13 13 Figure 10. USSR: 95-Ton Six-Axle, All-Steel Gondola Cars Equipped with Roller Bearings (Photograph) sage 13 Figure 11. USSR: Typical Mainline Steam Locomotive and Tender (Photograph) page 15 Figure 12. USSR: VL-23 Electric Locomotive (Photograph) page 15 S- E- C- R- E- T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 0 Figure 13. Figure 14. Figure 15. Figure 16. Figure 17. Figure Figure Figure S-E-C-R-E-T USSR: TE-3 Diesel Locomotive (Photograph) page USSR: Typical Gang of Railroad Workers (Photograph) page USSR: Selected Highways (Map) inside back cover USSR: ZIS-355 M Truck (Photograph) page USSR: Principal Inland Waterways, 1956 (M.4) inside back cover 18. USSR: Timber Rafts Being Towed on the Kuybyshev Reservoir (Photograph) page ? ? 19. USSR: Tuymazy-Irkutsk Oil Pipeline Under Construction (Photograph) page 20. USSR: Profit and Cost Segments of Unit Revenue of Railroads, 1950-58 and 1959-65 Plan (Chart) following page Figure 21. USSR: Net Contribution of the Ministry of Railroad Transportation to the State Budget, 1951-58 (Chart) following page S-E-C-R-E-T 15 17 20 23 25 42 42 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T TRANSpORTATION GROWTH AND TRENDS IN THE USSR* 1950-65 Summary and Conclusions Soviet inland transport has been developing since 1950 at a rate adequate to support current economic growth. Its development has been restricted, however, by a policy of keeping just ahead of re- quirements and obtaining maximum productivity from limited inputs of capital. The high-utilization-of existing facilities tends to-create transport shortages at specific times and places, and the lack of al- ternate service often leads to excessive transport costs. Hope for greater economy in the use of transport is indicated by the current Soviet Seven Year Plan (1959-65) in spite of the fact that, since 1955, transport has grown at a more rapid rate'than the economy of the USSR as a whole. Economy is to be realized through ' plans for a rapidly changing fuel balance in combination with more rational shipping policies and location-of industry. Increased use of pipeline transport, however, is not .occurring at planned rates, and the average length of haul for railroads is still increasing in ' spite of plans for its decrease.' The USSR is incurring more rapidly increasing demands for trans- port in relation to over-all economic growth than the US is at the present time. This trend in the USSR isbelieved to be the result of several factors, the most significant-of which is the increasing traffic between the traditional 'production and consUmption centers of the western USSR and the areas- being developed in Kazakhstan-and-in eastern and central Siberia Although the 'USSR will continue to re- quire greater increases in transport input per unit of economic L growth than the US will require, the rate at which these demands in- crease will not continue to accelerate "during the period of this estimate as it has in the past. ? Inland freight traffic by all modes of transport in the USSR in- creased to about 1,530 billion ton-kilometers (tin)** in 1958 from about 700 billion in 1950 and probably will increase to about 2,400 billion tkm in 1965. Absolute annual traffic increases are to average * The estimates and conclusions in this report represent the. best judgment of this Office as of 1 January 1961: ? ** Tonnages are given in metric tont throughout this report. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-EC-R-E,T about the same during the 7-year period 1959-65 as during the 8-year period 1950-58. The average annual rates of growth* for 1951-58 and for the 7-year period 1959-65 will decelerate from 10.4 percent dur- ing the earlier period to 6.4 percent during the later period. Total inland transport performance in the USSR was 67 percent of comparable US performance in 1958, and by 1965 it may increase to about 76 per- cent. Railroads performed about 85 percent of total inland freight traf- fic in 1959 and should perform about 78 percent by 1965. Their share was 87 percent in 1950. The principal increase in the carrier share of total transport during 1950-58 occurred in motor transport. The shares of both motor transport and petroleum pipelines in total traf- fic will gain during 1959-65. The US depends much less than the USSR on railroads. Only 37 percent of the total inland freight traffic in the US was performed by rail carriers in 1958 compared with 85 percent in the USSR. Soviet policy.seeks to limit expansion of private passenger trans- port. Public carriers are expanded sufficiently to handle the neces- sary urban commuting and long-distance official travel'. Development of good roads and production of passenger automobiles have low pri- ority. Railroads handle a major share of passenger transport, cur- rently accounting for about 50 percent of total passenger-kilometers. By 1965 the railroads' share of total passenger traffic is to decrease to about 40 percent with significant expansion of intercity bus and long-distance air transport. Soviet pOlicy has limited.capital investment in transport so that a larger share of available capital could be devoted to increasing in- dustrial capacity. ,Consequently, transport equipment is kept in oper- ation for a longer time than would be considered economical in most Westerncountries,:and investment is concentrated in the existing net- work to bring it to a?high level of productivity before any expansion is undertaken. This policy is expected to continue. , Inj.ecent years, there has been a tendency to increase investment in nonrail transport faster than in railroads This policy has been carried out in motor transport to relieve the railroads of costly short-haul traffic and in maritime and inland water shipping, together with petraeum_pipelines,.to divert petroleum traffic from the rail- roads to lower. cost carriers. AveraEe annual rates of growth throughout this report are computed at the compound rate for the stated period, including the terminal years. - 2 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Soviet investment in transport amounted to about 20 billion rubles* in 1958, nearly double the amount invested annually during 1946-50. As a share of total investment in all sectors of the economy, however, the transport sector received only 10 percent during 1958 compared with 14 percent during 1946-50. During 1950-59, Soviet investment in trans- port averaged about 10 percent of total investment, with a slight down- ward trend, while the comparable US transport share of domestic invest- ment was about 20 percent. Fixed assets of the transport sector represented about 20 percent of total Soviet assets in 1956 compared with about .26 percent in 1950. This decline is a direct result of the relatively low level of invest- ment in transport since 1950. Soviet transport investment and rate policies have led, neverthe- less, to increasing productivity and profit from railroad operations in recent years. Railroad operating indexes reflect lower operating costs per unit of output. Steady growth in traffic together with a policy of not lowering rates to the same extent as the costs have decreased cause profits to increase to an extent that more than offsets losses by other modes of inland transport. Until 1953, railroad operations had been subsidized, but net accrual to the state budget from such operations was 12.2 billion rubles in 1959 and is planned to be 22 billion rubles in 1965. Railroad earnings are more than adequate to support the cap- ital investment planned through 1965. Soviet inland transport is growing at a more rapid rate than com- parable US transport. As the Soviet economy has developed in recent years, a greater increase in transport input per unit of economic growth has become necessary. Diversification of transport facilities is expected to continue in both countries through 1965, although Soviet diversification by 1965 will not reach the level already achieved in the US. * Unless otherwise indicated, ruble values in this report are given in current rubles and may be converted to US dollars at a rate of exchange of 4 rubles to US $l. This rate does not necessarily reflect the value of rubles in terms of dollars. All dollar values in this report are given in terms of current US dollars. - 3 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T I. Introduction The method and the rate of development of transport in the USSR have been markedly influenced by the political and economic framework within which they took place. In order to maximize the short-run productivity of available capital for over-all economic growth, in- vestment policy for transport facilities appears to keep one step ahead of the current requirement for transport. Planned economic development as practiced in the USSR does not require advance capital investment in transport facilities to stimulate industrial growth. Surpluses of some inputs have been substituted for deficiencies in others. There was extensive use of labor, including forced labor, until the early 1950s, when labor became more critical in relation to available capital and materials. Investment to modernize the existing plant and facilities then began to receive emphasis, with increased production and improved labor productivity as a result. The current Seven Year Plan (1959-65) continues the emphasis on modernization, with extension of transport facilities concentrated in areas of new indus- trial development. II. Transport Performance and the Economy The performance of the Soviet inland transport system in recent years has not been a limiting factor in the aggregate development of the Soviet economy. Soviet transport, however, has failed to satisfy certain specific plan goals contained in ministerial directives and has demonstrated localized inadequacy from time to time: Traffic has tended to expand more rapidly than transport facilities since 1928. Although theresultant high-density transport system has managed to move substantially all the freight offered, little excess capacity exists, and transport operations have been oriented toward producing maximum output rather than optimum service. Although present capacity would allow for considerable increases in military traffic without a serious reduction in essential economic activity, the transport network is not so diversified as in the US and most Western European countries. A. Freight Service* Freight traffic in the USSR has increased rapidly during the ? postwar period. Performance by the inland transport system in 1959 was nearly 1,700 billion tkm compared with about 700 billion in 1950, an average increase of 10.4 percent.per year. The increase in the last few years was more rapid than in the earlier postwar years because * Table 1, Appendix A, p. 52, below, and the chart, Figure 1, fol- lowing p. 6. -5- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T of the intensified economic development of the eastern regions* and the consequent increase in the average length of haul. The increase is not expected to be as rapid during the period of the Seven Year Plan. Total inland freight traffic is planned to reach about 2,400 billion tkm in 1965, requiring an increase of 6.4 percent per year during the plan period. Even with the rapid growth achieved in the past and that planned for the future, the total freight traffic in the USSR in 1965 probably will be only at about the same level as the US performance during 1958. Rail freight traffic in the USSR will constitute a smaller share of the total than heretofore -- it will decline from about 87 percent of the total in 1950 to about 78 percent in 1965. A rapid ex- pansion of motor transport was principally responsible for the decline in the railroads' share of the total during 1950-59, and petroleum pipeline transport will be largely responsible for the shift expected by 1965. Motor transport increased its share of the total from about 3 percent in 1950 to about 5 percent in 1959 and in 1965 may account for about 6 perceht. The share performed by petroleum pipeline trans- port increased from less than 1 percent in 1950 to more than 2 percent in 1959, and the plan for 1965 calls for pipeline transport to perform about 8 percent of total ton-kilometers. The share of freight traffic performed by inland water transport declined a little during 1950-59, and although some increase is expected, the share in 1965 probably will not regain the 1950 proportion. Modern freight transport .service in the US has always'been more diversified than in the USSR. Of the total inland freight traffic in the US during 1958, railroads accounted for about 37 percent compared with 85 percent in the USSR. Railroads in the USSR carried more traf- fic than railroads in the US for the first time in 1955, and the Soviet performance in 1958 was 55 percent more than that of the US railroads. Freight transport by all other inland carriers in the US is much more developed than in the USSR.. Performance by each of the other modes of transport in 1958 averaged more than five times the comparable level in the USSR. B. Passenger Service** The USSR has relatively little long-haul passenger traffic. Although Soviet passenger traffic has increased considerably in recent * The economic regions referred to in this report are those definec and numbered ** See Tables 2 and 3, Appendix A, pp. 53 and 54, respectively, below. The data include both intercity and intracity movement by all modes of transport. - 6 - S-E-C-R-E-T 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 ? ? ? Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 2,010 . . PETROLEUM PIPELINES ?' 9.4% ? . ? SHIPS IN COASTAL AND INTERCOASTAL TRAFFIC INLAND WATERWAYS MOTOR VEHICLES RAILROADS 29360 12-60 4;f4 45.6% 692 87% USSR AND US TON-KILOMETER PERFORMANCE OF INLAND TRANSPORT BY MODE OF TRANSPORT, 1950, 1955-591 AND 1965 PLAN USSR US 0 7% 2.7% 6.7% 2.9% 2,396 "13.2%, 39.8% 1,129 3% 3.0% 3.8% 6..`? ' 85.9% 2,509 W4 4-1*.2 1,252 ... 39.3% 86.3% 1 6% 2.6% 3.9% Billion Ton-Kilometers 2,467 .?,..?? ? ?:13:2X. "44 38.2% 1,405 19% X5.41g 86.3% 4.4% 2,289 1,533 20:7% 36.6% 84.9% 2 2% 2.3% NO BREAKDOWN AVAILABLE 1,690 Ot.:BO 84.6% 2.5% 22% Figure 1 50X1 3,100 2,371 77- - 78% 2.1% 1950 1955 1956 1957 1958 1959 1965 Plan Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C,R-E-T years; absolute performance remains rather low, especially when com- pared with that in the US. In 1950, about 127 billion passenger- kilometers were produced in the USSR,. less than 10 percent of the level of the US. By 1957, passenger-kilometers in the USSR had doubled, The Seven Year Plan calls for another 70-percent increase, to 470 billion passenger-kilometers, by 1965, a level that would be less than one-half of the US performance in 1938. . In the USSR, railroads are the principal mode of:passenger transport,. whereas in the US passengers travel mainly by automobile.. In 1950 the Soviet railroads produced 69 percent of the total passenger-, kilometers:compared with less than 4 percent by the US railroads. In the same year, automobiles in the USSR performed, only about 1 percent of total passenger-kilometers, whereas automobiles in the US were re- sponsible for about 85 percent of the US total passenger-kilometers. During the 1950's, automobiles in both countries increased their pas- senger traffic more rapidly than did the railroads. , The motorbus has rapidly enlarged its share of intercity pas- senger traffic-in the USSR.. In 1958 the number of intercity passengers traveling by bus was more than eight times the level of 1950 compared, with an increase of about 20 percent by rail. Buses were responsible also for a large portion of the growth in local and urban passenger traffic, The over-all number of local and urban passengers* increased by 163 percent in.1958 compared with 1950, and the share carried by buses rose from 11 percent to 34 percent of the total. Again', these gains were made concurrently with slower growth in urban streetcar and suburban railroad traffic'. The growth trends for individual carriers established during the 1950's are expected to continue through 1965, with buses increasing their share to about 55 percent of the total. C. Relationship of Transport Performance to Economic Growth Certain comparisons of the development of the economy and of transport performance in both the USSR and the US help to assess the past and future demand for transport services in the USSR. Industrial production grew slightly faster than freight transport from 1950 to 1955 in both the USSR and the US (see Table 4** and the chart, Figure 2***). In 1955 or 1956 the trend was reversed in the USSR, and freight transport has grown faster than industrial production since that time. Whether or not this reversal of the trend is a temporary or secular development * Passenger movement by automobiles other than taxis is not included. Taxis, however, carried more than one-half of the total automobile pas- sengers. ** Appendix A, p. 55, below. *** Following p. 8. - 7 - S-E7C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T cannot yet be accurately ascertained. The indexes for industrial pro- duction and freight transport have a general tendency to parallel each other over extended periods, and the recent reversal of lead relation- ships probably does not alter this long-run relationship. Data on industry and transport for the Seven Year Plan indicate that a return to the relationships of 1950-55 is planned in the USSR. A 55-percent increase in freight traffic is planned, whereas industrial production is planned to increase by 80 percent. The plan implies con- siderable economy in the use of transport compared with the trend in 1956-58. The USSR may hope to achieve this objective in the following two ways: (1) a change in consumption from coal to gas and oil for fuel and power and (2) a reduction in the average length of haul. There is no doubt that the change in fuel consumption patterns will reduce the rate of growth for rail transport performance, although pipeline transport has not met planned rates* and increasing amounts of petroleum are transported by rail each year. Expected decreases in the average length of rail freight haul also have been overly optimis- tic. Decreases planned each year bince 1950 were only partly realized in 1952 and 1958. Increases in every other year caused the average length of haul in 1959 to reach 810 kilometers (km), 88 km greater than in 1950.** A comparison of transport performance with the gross national product (GNP) demonstrates that demands for transport in support of growth have been greater and have increased more rapidly in the USSR than in the US (see the chart, Figure 3***). Soviet planners, how- ever, do not expect growth in production through 1965 to require equal concurrent growth in demand for transport. Although transport input necessary to produce a given unit of GNP in the USSR has increased over recent years, plans for future growth of GNP and transport in- dicate a reduction in unit transport input. Several factors, however, including the probable degree of success with plans for fuel balance and industry location, cast serious doubt on the validity of esti- mating any significant reduction in unit transport input. Comparing freight traffic with the total tons produced of a comprehensive list of basic commoditiest for the USSR and the US demon- strates the extent of transport economy practiced in the past in the * See III, D, p. 25, below. ** For a fuller discussion of the length of haul, see IV, A, 1, p. 27, below. XXX Following p. 8. t The 24 commodities used include the most important ores, fuels,. agricultural products, and chemicals. - 8 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 USSR AND US Figure 2 50X1 COMPARATIVE INDEXES OF INLAND FREIGHT TRANSPORT AND INDUSTRIAL PRODUCTION SELECTED YEARS, 1950-65 240 220 200 180 160 140 120 100 USSR US ? Inland Freight Transport _ Production Industrial ? / / /V/ / / / / / / / ". ? ? .?,........ o? 00' _...0000,. N /_. / / ,?'' *- --N / // 1950 29361 12-60 1955 '56 '57 1958 1965 Plan Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 50X1 Declassified in Part - Sanitized Copy Approved for Release' 2013/07/15': CIA-RDP79R01141A001900030001-6 USSR AND US Figure 3 50X1 COMPARATIVE INDEXES OF INLAND FREIGHT TRANSPORT AND GROSS NATIONAL PRODUCT SELECTED YEARS, 1950-65 240 220 200 180 160 140 120 100 ' . USSR US ? Inland Freight Gross National Transport Product ? / / / / , I I ? / / // ..................?............ ?.....? ), ......? ...----' / 1 / ./ I......' .....? 1 1 i .? -,' 1950 1955 1956 1957 1958 29362 12-60 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 1965 Plan 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T USSR* (see the chart, Figure 1+**). On the basis of US experience (1938-58) and Soviet experience (1950-58), it would seem likely that the Soviet requirement for transport during the current phase of economic development will continue through 1965 to increase at least as fast as the US requirement. III. Development and Maintenance of the Transport System A. Railroads 1. Administrative Organization*** Throughout the recent postwar years, there has been a tend- ency to shift some operating and traffic responsibilities in the Soviet transport system to lower organizational levels. There have been two significant administrative changes in this respect. Most industrial and line organizations formerly assigned to the Ministry of Railroad Transport (Ministerstvo Putey Soobshcheniya -- MPS) have been shifted to divisional level, and the railroad system has assumed increased? responsibility for traffic planning and car distribution. These dele- gations of power and increases in authority of local administration probably have not enhanced efficiency to any marked degree but were consistent with and in part stemmed from the general industrial reor- ganization of 1957 that created the sovnarkhozes (councils of national economy). Before the reorganization, 67 percent of the total freight shipment plan was arranged for by the MPS working directly with other ministries at the national level. Now that some industrial ministries have been abolished, much of the information necessary for planning shipments is gathered by the railroad system and its divisions at the sovnarkhoz level and is passed on to the central planners assigned to the MPS. Each railroad system also is responsible for car distribution in its area, within the framework of a general plan worked out at the ministerial level. Attempts have been made to introduce close cooperation and joint study of transportation problems between the local transport units and the sovnarkhozes. The major problem is that there is usually little relationship between the boundaries of the divisions and the sovnar- khozes. The MIS attempts to shape the boundaries of the operating di- visions so as to increase operating efficiency. Although cooperative traffic planning will be stressed in the future, the MIS very likely will continue to determine the boundaries of the operating divisions on the basis of operating efficiency. * Comparison with the US is believed to be particularly useful be- cause the average hauls in both countries are relatively long. ** Following p. 10. xxx See the map, Figure 5, inside back cover. - 9 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T At the same time that the responsibilities of the systems and the operating divisions have increased, the size of these units also has increased. In 1952, in addition to 56 systems and 277 divi- sions, there existed another administrative echelon (the okrug), which stood between the NTS and the systems. Today the okrug no longer ex- ists; there are only 35 systems; and the operating divisions, which now number 230, have become larger and have assumed many of the powers of the system. The major reorganization took place in July 1959 after a few large systems had been tried on an experimental basis early in 1959. The new systems are expected tc make better use of high-caliber personnel, utilize equipment more efficiently, and fulfill expanded traffic planning responsibilities more effectively. 2. Plant a. Network* The route length of the Soviet railroad network oper- ated by the NTS was officially reported to be 122,800 km** at the end FIGURE 7. USSR: Typical Freight Yard on Rail Network. For data on the network, see Table 5, Appendix A, p. and for a map of the network, see Figure 6, inside back also the accompanying photograph, Figure 7. ** Trackage nearly equal to the length operated by the ated by other organizations. All long-distance traffic, enters the MPS system. -10 - S-E-C-R-E-T 56, below, cover. See MPS is oper- however, Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 ? Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 180 160 140 120 100 USSR AND US INDEX OF TON-KILOMETERS PERFORMED BY INLAND TRANSPORT PER METRIC TON OF BASIC PRODUCTION; SELECTED YEARS, 1938-58 Figure 4 USSR - US 1938 29363 12-60 1950 *Ton-kilometer performance divided by total production of 24 basic commodities, which include ores, fuels, chemicals, and agricultural products. 1955 '56 '57 1958 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T of 1958. Of this total, about 27 percent was double tracked. Eight percent of the route had been converted to electric traction and 9 percent to diesel operation. Automatic block signaling was in- stalled on about 18 percent, and 2 percent was equipped with central- ized traffic control. About 96 percent of the route is broad gauge (5 feet). Of the total network operated by the MPS, about 73 percent is concentrated in the European USSR and only 27 percent in the Asi- atic USSR. 1/* Soviet plans for construction of new railroads have been consistently underfulfilled. The Fifth Five Year Plan (1951-55) was only about 54 percent fulfilled, 2/ and construction completed during 1956-60 probably will amount to only about 66 percent of that called for under the original Sixth Five Year Plan (1956-60). The Seven Year Plan (1959-65) calls for about 9,000 km of new trunk lines, plus about 2,700 km of logging railroads. The route length of rail- roads of the MPS in 1965 must therefore be planned at about 131,800 km. This figure does not include the logging railroads, some of which may be transferred to the MPS at a later date, as has occurred in the past. In view of past experience, it would not be surprising if the present plan for line construction should, like its predecessor, also prove to be overly ambitious.** Important construction scheduled for the current Seven Year Plan includes completion of the South Siberian and Central Sibe- rian Railroads, the Aktogay-Gosgranitsa section of the Trans-Sinkiang line, and the Yesil'-Turgay, Suoyarvi-Lendery, and Miass-Uchaly lines as well as construction of the new Gur'yev-Astrakhan' and Pavlograd- Zolotonosha-Zhashkov lines. It is planned during 1959-65 to double track about 8,000 km of line, an increase of about 24 percent above the 1958 length. Instead of new construction and double tracking of other lines, the capacity of the railroads on certain heavily traveled or difficult sections has been increased by electrification, automatic blocking, and centralized traffic control. Railroad electrification is now being intensively car- ried out under the pressure of increasing traffic.xxx The route length of electrified railroads was scheduled to be increased from 5,361 km in 1955 to 13,361 km in 1960. Electrification plans were exceeded every year during 1956-59, bringing the length of electrified lines to about 11,600 km at the end of 1959. A total of 30,000 km of electrified route is planned by the end of 1965. S-E-C-R-E-T 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T By 1965, automatic block signaling is to be installed on 18,000 to 20,000 km of additional route, nearly doubling the amount installed by the end of 1958. Plans call for the introduction of cen- tralized traffic control on about 10,000 km of route by 1965, which, would extend it to more than five times the length existing at the ehd of 1958. Rail lines under diesel operation totaled 3,432 km in 1950, located principally in the water-deficit areas of Central Asia. By 1958 the total dieselized route had expanded to 11,100 km. These lines were still concentrated largely in Turkmen, Tadzhik, Uzbek, and Kazakh SSR's; in the Trans-Volga area; and in the Caucasus. Dieselized lines by 1965 are to total 70,000 km, including many heavy-density, primarily single-track lines requiring an increase in capacity but not scheduled for electrification. Lines on which water supply is inadequate and fuel coal is not readily available also are included. b. Inventory of Freight Cars and Locomotives (1) Freight Cars . The freight car inventory in 1958 represented about 14 percent of the value of the fixed assets of the railroads in the USSR. 2/ On 1 January 1959 the railroads are estimated to have had 889,000 freight cars, 27 percent of which are still the old two-axle types. During 1952-59 the inventory increased by about 86,000 cars and is expected to.increase to 969,700cars by 1965, with two-axle cars then constituting only 14 percent of the total. -Compared with the US, the USSR is handling about 50 percent more freight traffic on its rail- roads with about one-half of the total number of freight cars. Additions to the inventory in recent years have been in higher capacity units, causing the freight-carrying capacity of the freight car inventory in the USSR to increase about 170 percent since 1945, although the unit increase was only about 46 percent (see Table 6*). Three types of freight cars in use in the USSR are shown in the accompanying photo- graphs, Figures 8, 9, and 10.** Most Western countries attempt to achieve quantity manufacture of spare parts and a reduction in the spare parts inventory by using a high degree of standardization throughout a wider range of types, whereas the USSR follows a policy of. reduction in the number of types themselves. 'There exist two types of standard wheel sets, the latest of 1.ihich is a version of the earlier design having all-coil springs and shock absorbers. Standardization of car types is currently achieved with only two designs of four-axle chassis having cast steel frames. Two-axle cars are no longer produced and are being retired as rapidly as practicable. Appendix A, p. 57, below. ** P. 13, below. - 12 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 ? 4 S -E -C -R -E -T FIGURE 8. USSR: Typical Four-Axle Freight Car in General Use. FIGURE 9. USSR: Obsolete Two-Axle Freight Cars. These types of cars are still widely used but are being retired as rapidly as practical. FIGURE 10. USSR: 95-Ton Six-Axle, All-Steel Gondola Cars Equipped with Roller Bearings. These types of cars are now operating in limited but increasing numbers. - 13 - S -E -C -R -E -T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T The backbone of the working freight car inventory consists of open-top gondolas and hopper cars, types that carry more than 40 percent of the freight traffic in terms of both tons and ton- kilometers. The following tabulation shows the distribution of freight traffic by type of car, probably for 1954 g: Percent of Total Percent of Total Type of Car Tons Ton-Kilometers Box 21.8 28.4 Flat 25.6 18.7 Open-top 45.7 41.6 Tank 6.1 9.9 Refrigerator 0.8 1.4 Total 100.0 100.0 ,The 60-ton four-axle, open-top car with steel frame and wooden body is the most representative type now in produc- tion. Production has Commenced on a 93-ton six-axle, all-steel open- top car, but only a few hundred are in use. Large-scale production of wooden body types probably will continue through 1965 because of a limited supply of steel plate for freight cars. (2) Locomotives On 1 January 1959 the Soviet railroads are esti- mated to have had 36,000 operable mainline locomotives of all types.* Coal-fired steam locomotives predominate (88 percent), although about one-third of rail freight traffic in 1959 was moved by diesel and elec- tric locomotives. A significant transition in motive power is in prog- ress, which, while increasing the capacity of the locomotive inventory, will lower the total number of units to about 26,300 by 1965. The in- ventory will then consist of approximately equal magnitudes of steam, electric, and diesel units (see Table 7**). ?The ultimate motive power 'goal of the Soviet railroads is to effect a complete changeover to electric and diesel traction by about 1970, with about 55 percent of total railroad freight traffic to be hauled by electric locomotives. . Three types of locomotives in use in the USSR are shown in the accom- panying photographs, Figures 11, 12, and 13.*** ** Appendix A, p. 58, below. *** P. 15, below. -14- S-E-C-R-E-T 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T FIGURE 11. USSR: Typical Mainline Steam Locomotive and Tender. About two-thirds of the rail traffic is still handled by steam traction. FIGURE 12. USSR: VL-23 Electric Locomotive. This type of locomotive is the backbone of the current electric locomotive inventory. FIGURE 13. USSR: TE-3 Diesel Locomotive. This locomotive is the most typical of the current inventory of diesel locomotives, which are to handle nearly one-half of the rail traffic by 1970. - 15 - S -E-C -R-E -T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S -R -E -T The Soviet conversion from steam to diesel and electric traction is taking place at a rate considerably slower than the conversion to diesel traction in the US after World War II, in spite of the already higher and still increasing traffic density on the Soviet network. US railroads, which were hauling more than 90 percent of freight traffic by steam in 1945, were handling more than 85 per- cent by diesel traction in 1955 and are now, for all practical purposes, completely dieselized.* Considering the availability to the USSR of Western experience, as well as its own experience with diesel and electric lo- comotives, Soviet capability to date to develop and produce really ef- ficient electric or diesel locomotives has been incredibly unimpressive. Soviet authorities themselves admit that they do not yet have suitable passenger electric or diesel locomotives, and lack of adequate success with the development of AC electric locomotives has necessitated im- ports from France and West Germany to take advantage of completed AC line electrification. The last steam locomotive was built in the USSR in 1956, and increasing production of existing standard electric and die- sel locomotive designsl plus a measure of exploration into new lines of development, is indicated. Steam locomotives are being either rel- egated to light traffic lines and switching service or exported to Communist China as they are replaced by more efficient types. Some locomotives may be held in reserve, and others may be scrapped. Diesels will be transferred from area to area within the USSR. Locomotive units of about 6,000 horsepower (hp) (two units of 3,000 hp each in the case of diesels) probably will predominate eventually, possibly supplemented by gas turbine locomotives burning low-grade oil or diesels modified to run on compressed natural gas, depending on the outcome of current ex- perimentation. Electric locomotives powered by atomic energy either directly or through power substations also are a long-range possibility, although Soviet railroad officials have stated that they do not con- sider the former to be a practical approach. 3. Labor Force In recent years the labor force of the MPS has amounted to about 3.4 million employees, or about 5.7 percent of the total state- employed labor force. About 2.3 million of this total are engaged in functions comparable with those performed by US railroads (see Table 8** and the accompanying photograph, Figure 14.***) ** Appendix A, p. 59, below. *** P. 17, below. - 16 - S-E-C-R-E-T 50X1: Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 a 4 S-E-C-R-E-T FIGURE 14. USSR: Typical Gang of Railroad Workers. Observe the large number of women. Although traffic on the railroads of the USSR continues to increase, gains in labor productivity have largely offset requirements for additional personnel for several years. Investment in moderniza- ? tion of plant and equipment, especially dieselization and.electrifica- tion, together with the supplementary facilities necessary to utilize the advantages of the modern traction, has been largely responsible for the impressive gains in labor Productivity. Even so, the US railroads, with their transition from steam to diesel traction virtually completed, have continued to register about the same absolute gains in traffic-kilometers per employee as the railroads of the USSR. The US railroad laborer is still about 60 per- cent more productive than the comparable Soviet worker, and by 1965, if present traffic and productivity trends continue, each US railroad employee probably will still outprodude'his Soviet counterpart' by more. than 50 percent. What this 'Statement really means is that investment ? in modernization of railroads in both countries is paying handsome div- idends in increased labor productivity.' Because labor is a relatively more costly input in the US than in the USSR, it may be argued that greater increases in labor productivity are necessary in the US (see Table 8*)._ It will become increasingly important to the USSR, however, to keep its railroad labor requirement to a minimum as the labOr?supply Appendix A, p. 59, below. - 17 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T becomes more critical. A reduction in the labor force for certain ac- tivities should not be difficult, because labor is used inefficiently and even lavishly in many instances on the railroads. Current productivity gains in the US are now largely the result of improved signaling and mechanized maintenance of way, whereas the USSR still has much to gain from the changeover to diesel and elec- tric traction, which probably will not be completed until about 1970. Average annual earnings of US and Soviet railroad employees since 1950 have increased at a somewhat faster rate than productivity in the US and at a much lesser rate than productivity in the USSR. In both countries, however, the average railroad worker is paid better than the average worker in the economy as a whole.* B. Highways 1. Administrative Organization The administration of both freight and passenger motor transport and the highway network in the USSR is largely decentralized. If the element of private ownership is disregarded, it may be said that the administration of motor transport in the USSR is similar to that in the US, although there is in the USSR considerably more centralized 1 control over the operating pools, especially in matters of policy. Re- sponsibility for highway. construction and maintenance also is consider- ably decentralized. Roads of "All-Union significance" are financed by direct centralized allocations. Each republic is responsible for the maintenance and development of all highways within its borders. Some of this responsibility is established at the republic level, and some is assumed by administrative districts within the republics. KOlkhozes and industrial enterprises also construct and maintain roads for their own use. The administration and operation of the civilian freight motor vehicle inventory may be divided into the following four major categories: (a) common carrier, (b) agricultural, (c) industrial, and (d) trade. .Responsibilities, subordination, and administration of the inventory of these vehicles have changed considerably in recent years. Common carrier trucking** is now subordinate to republic transport or- ganizations and is being significantly expanded. A reorganization in motor transport in 1956 transferred vehicles from many ministerial pools to common carrier organizations.' The reason given for this change was that the ministries were not Utilizing their vehicles nearly Common carrier trucking includes considerable - 18 - S-E-C-R-E-T contract trucking. 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T as effectively as the common carriers'. Consequently, more transport and less expensive transport could be produced by expanding the common carrier system. The need for more effective control over unauthorized use of vehicles also probably influenced the decision. During 1953-58 the share of motor freight ton-kilometers performed by common carrier trucks increased from 8 to 24 percent, and by 1965 common carrier trucks are to perform 44 percent of the total 12/ (see Table 9*). More recently, centralized industrial pools have been cre- ated within the sovnarkhozes from vehicles formerly owned and operated by individual enterprises, and the common carrier pools have been re- organized into larger units. In addition to operating at lower costs, the larger pools are believed to be more flexible and hence better able to meet shipper demands. Agricultural vehicles, formerly controlled by the machine tractor stations, are now controlled entirely by the kol- khozes and sovkhozes. Practically all passenger service by motor vehicles is by common carrier. Intercity buses are administered by common carrier organizations of the republics, and taxis and urban bus organizations are controlled by the governments of the cities in which they operate. 2. Plant a. Network** Development of a good road system has been assigned a relatively low priority in the USSR. In 1950 the Soviet highway system had only 2 percent of the US mileage of paved roads.*** Total Soviet highway expansion during 1950-58 was equal to only about 75 percent of annual US expansion in recent years. There were still only 58,500 km of paved roads in the USSR at the end of 1958 (see Table 10t). Oper- ating efficiency of motor vehicles often suffers because of adverse road conditions, and motor traffic is practically nonexistent in many areas that could benefit from such service. Service stations and re- pair points are few and far between, and their stock of spare parts is often inadequate. Planned expansion by 1965 is to increase the Soviet network of paved roads to only about 158,500 km. Even if construction is somewhat less than planned,tt the anticipated traffic load will not strain the capacity of the network. Appendix A, p. 60, below. For a map of the highway network, see Figure 15, inside back cover. *-)HE Roads that are graded and surfaced with either a water-resistant material or a material that facilitates drainage. t Appendix A, 61, below. tt During the 5 years ending in 1955 the program for construction of new hard-surfaced roads was fulfilled only 65 percent. 11/ - 19 - S-E-C-R-ETT Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T b. Vehicle Inventory The motor vehicle inventory in the USSR has expanded rather significantly since the end of World War II, and annual produc- tion of motor vehicles is to increase from 511,000 in 1958 to a level of 750,000 to 856,000 by 1965.* 1.V The motor vehicle inventory by 1958 had reached 3.4 million vehicles, and if plans for increasing production are successful, the 1965 inventory will consist of about 5.4 million vehicles, an increase of about 57 percent above the level of 1958 (see Table 11** and the accompanying photograph, Figure 16). Although trucks will continue to make up the largest share of the in- ventory, production of passenger vehicles is expanding rapidly. Auto- mobiles and buses together will account for about 25 percent of the in- ventory in 1965 compared with 10 percent in 1950. FIGURE 16. USSR: ZIS-355M Truck. This size of truck is typical of the current inventory, al- though limited numbers of larger and specialized types are beginning to be produced. Recent expansion of the truck inventory has aided the growth and improvement of transport services to some extent, but the * Although Soviet production of all motor vehicles is only about 10 percent of US production of all motor vehicles, Soviet truck produc- tion is 34 percent of US truck production, based on 1957 data. 12/ ** Appendix A, p. 62, below. -20 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T quality and quantity of motor transport services are still below West- ern standards. Operating characteristics of some vehicles are poor, and there is a high degree of obsolescence as well as a lack of suffi- cient research and development. Too few types of vehicles are produced to satisfy the varied needs of industry and agriculture. The majority of trucks produced are 2.5-ton to 4.5-ton vehicles. The output of light, heavy, and specialized trucks is inadequate. Most of the vehi- cles in agriculture can utilize only 75 percent of their weight capac- ity, and trucks are used where trailers or semitrailers could be used to greater advantage. An analysis of truck types in 1956 recommended the following desired distribution: Capacity Percentage in the 1956 Inventory Desired Percentage 1.5 tons and under 13 30 2 to 5 tons 85 60 Above 5 tons 2 lo Total 100 100 By 1958, most of the basic models of both trucks and passenger vehicles made in the USSR had been in production from 10 to 12 years. In recent years, new designs have been prepared and proto- types constructed which, if successfully introduced into serial produc- tion, should help alleviate some of the Weak spots in motor transport. 3. Labor Force Data are not available from which estimates of labor force and productivity of labor can be made force is believed to be substantial. that labor productivity has increased is still believed to be very low as a highways and equipment.* for motor transport. The labor Although Soviet sources indicate considerably in recent years, it result of the poor condition of C. Inland, Waterways 1. Administrative Organization In June 1956 the administration of river transport, which. had been centralized under an All-Union Ministry, was transferred * Labor productivity for common carrier operations increased by 48 per- cent between 1940 and 1950 and by 72 percent between 1950 and 1956.111/ -21 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 to the control of the individual republics. At the present time, in all republics except the RSFSR, the administrative organizations of river transport have the status of main administrations. Ministerial status has been retained in the RSFSR only. This ministry accounts for approximately 95 percent of the total freight ton-kilometers and 90 per- cent of freight tons originated on the inland waterways of the USSR.* At the time of the 1956 reorganization the shipping activi- ties of all private and state organizations (noncommon carrier), ex- cepting those essential to their own productive needs, were transferred to common carrier steamship agencies. Before this change the volume of freight carried by noncommon carriers normally exceeded that of the common carrier organizations but was hauled for short distances only. No substantial changes in Soviet river transport operations appear to have resulted from decentralization of river fleet management or from absorption of the noncommon carriers. The practical effects, if any, would scarcely be reflected in statistics available since that time, because of the dominating influence of river operations in the RSFSR on total river statistics in the USSR. 2. Plant** a. Network . The length of, navigable rivers in the USSR is estimated to be 527;000 km, about 135,000 km of which were used in 1958 for river transport. River transport in 1950 operated on about 130,000 km, using navigation aids on 112,000 km, of which lighted aids were on 66,000 km. By 1965, river transport is expected tO extend operations to 142,000 km. Common carrier steamships operated on 65 percent of the operating net- work in 1958. In recent years, most new routes have been opened in the Siberian regions where the rivers are the longest and least uti- lized in the USSR because of short ice-free navigation periods and the presence of shallow beds, fast currents, and rapids. Exploitation of the eastern rivers, concurrent with the projected industrial growth of * All coastal shipping, including that on the Caspian, is under the jurisdiction of the All-Union Ministry of the Maritime Fleet. Although that part of the total performance of the maritime fleet which is do- mestic has been included in the over-all performance data in this re- port, the maritime fleet is excluded from this discussion. 50X1 ? *** For a map of the inland water network, see Figure 17, inside back ? cover. - 22 - S-EC-R7EtT Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E -C -R -T this area,. shoulft account for the greatest share of. new routes to .be opened. b. Fleet Inventory In 1945-46the river ,fleet in the USSR.had 612,000 hp in telfpropelled units and 4.2. million deadweight tons,(DWT)* in non-. self-propelled units,,but about 40 percent of each fleet was inoperable or in limited service. ,By the end of 1959 the river fleet totaled about 1.6 million. hp in self-propelled units, of which 45 percent Were diesel propelled.- Non-self-propelled, unitswere estimated to total DWT, of which 54 percent were steel .(see the accompanying photograph, Figure 18). FIGURE 18. USSR: Timber Rafts Being Towed on the Kuybyshev Reservoir. A large percentage of the existing fleet has?always been out Of service and undergoing repairs., thus imposing heavy demands-- on shipbuilding facilities, especially those of outside transport or..." ganizations on which the Ministry of the River Fleet was considerably * 'Deadweight tohnage isa measure of the carrying capacity of a ship expressed in metric tons that it, the differente-betWeen the AisL- placement of the Ship light and its displacement loaded.' -23- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T dependent. Because of high building costs, the scarcity of metal re- sources, and a limited capability for producing diesel engines in the USSR, ambitious plans for expanding the fleet with large numbers of new and modern ships were never fulfilled. Detailed plans for future river fleet acquisitions are not available, but the relatively small increase in traffic projected for the period indicates that growth will be limited. The fleet, how- ever, will be modernized to some extent. In 1959 a program was begun to convert the steamships built since World War II to diesel propulsion. By 1965 these ships should represent 84 percent of the total horsepower in the fleet. Obsolete wooden barges, replaced by metal ones, will be retired. By 1965, metal barges should account for 92 percent of the hon-self-propelled tonnage. It is planned to increase the load capac- ity of the self-propelled cargo fleet by ,320 percent. This is to be accomplished both by new construction and by converting non-self- propelled ships. In 1958, self-propelled cargo ships made up 12 per- cent of the dry deadweight tonnage and 2.3 percent of the oil dead- weight tonnage. In 1965, 23 percent of the dry cargo fleets and 27 per- cent of the oil fleets will be self-propelled. Turnaround time of self- propelled ships is 2 to 2.5 times faster than that of non-self-propelled ships. Their over-all productivity is more than three times as great, and their operating costs are 25 to 30 percent lower. 3. Labor Force Common carrier river transport organizations employ about 340,000 persons in the USSR, 8 percent more than in 1950. Less than 27 percent of this force is engaged in hauling cargoes -- that is, in actual operations. The remainder is employed in port operations, in- dustrial enterprises belonging to river transport organizations, and other nonoperating activities. Increased labor productivity result- ing from modernization of plant and equipment should keep total river transport employees to fewer than 370,000 persons (122,300 operating) through 1965. Not included in this total are employees of consumer organizations, who perform a large share. of the loading and unloading. The labor productivity of operating employees of the com- mon carrier fleet increased only 7 percent by 1957 compared with 1950. By 1965 an increase of about 40 percent above the level of 1958 is planned, to an average of about 1.2 million tkm per operating em- ployee.* * In view of plans in progress to increase the use of push barges and diesel tows, both of which supposedly release crews and increase labor productivity, this low planned increase is surprising. Although labor productivity increased 20 percent in 1958, the average annual increase in the Seven Year Plan is only 4.9 percent. -24- S -E -C -R-E -T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T D. Pipelines 1. Administrative Organization The administration of petroleum pipeline transportation in the USSR, formerly controlled to a large extent by a main administra- tion of the Council of Ministers of the USSR, has recently been decen- tralized. Responsibility for the administration of the entire system of trunk oil pipelines and oil distribution bases has been turned over to the republic councils of ministers. Organs subordinate to either the republic councils of ministers or the republic Gosplans have been given the responsibility for petroleum distribution and presumably, therefore, for operation of the pipelines. 161 2. Plant "Emphasis on petroleum pipeline transport is relatively new in the USSR. The petroleum pipeline network consisted of only 5,400 km of trunk lines in 1950, none of which exceeded 14 inches in diameter or had capacities of more than 1.5 million tons per year. Three-fourths of these lines had been installed before World War II.* By the end of 1956 the length of the network had more than doubled, and 33 percent of the network (3,800 km) consisted of 20-inch pipe. 11/ By the end of 1959 the network had increased to 16,700 km, and substantial quantities of 28-inch pipe were being installed. Expansion of the pipeline net- work, however, has not occurred at anticipated rates. The 3,915 km of pipeline put in operation during 1956-58 were only 60 percent of the plan for the 3-year period. 1.8_/ Lack of large-diameter pipes has been the major obstacle to network expansion (see the accompanying photo- graph, Figure 19). FIGURE 19. USSR: Tuymazy-Irkutsk Oil Pipeline Under Construction. See Table 12, Appendix A, p. 63, below. Gathering lines that are employed extensively in the producing fields are considered to be in- dustrial transport and not a part of the mainline system. -25 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Original data from the Seven Year Plan indicated that net- work length was to increase by about 200 percent, to 43,000 km, by the end of 1965. More recently, a semiofficial Soviet source indicated that the goal may have been revised down to about 35,400 km, 12/ pos- sibly because of difficulty in obtaining pipe. Of the six major trunk- lines under construction at the beginning of the plan period, three were of 28-inch diameter. 22/ - The Soviet petroleum pipeline network is designed primarily to transport crude oil from the producing fields to the refineries, most of which are located in the vicinity of the fields. A large por- tion of the network, therefore, is characterized by relatively short crude oil pipelines. In 1958, about 84 percent of the total volume of petroleum shipped on the system was crude oil, and the average distance that all petroleum freight was pumped was only 357 km. The heaviest concentration of pipelines in the USSR is in the Ural and Volga Regions, where about 65 percent of the tonnage car- ried by pipeline originated in 1958. Most of these pipelines also terminate within the area at the important refinery complexes of Kuyby- shev and Ufa. The most important interregional pipelines also originate in these areas.* The Seven Year Plan for expansion of the petroleum pipeline network consists primarily of a series of trunklines that are to trans- port crude oil from the Ural-Volga area to refineries which are either under construction or to be constructed in the major consuming areas. When the plan is completed, the longer interregional crude oil pipelines will have become the dominant feature of the network. It is estimated that the average distance that petroleum is pumped will increase from 357 km to approximately 1,100 km by 1965. The most ambitious of the planned pipelines is a system that is to originate at Kuybyshev and supply crude oil to refineries in the Ukraine, Belorussia, and the Eu- ropean Satellites and to the port of Klaipeda on the Baltic Sea. A petroleum product line to be built from Kuybyshev to Bryansk is already under construction between Syzran' and Penza. Two additional pipelines of considerable importance, which are to be completed before 1965, will originate in the Volga area. One of these is the Al'met'yevsk-Chistopol'-Gor'kiy pipeline (probable diam- eter, 20 inches), which will be completed to Moscow via Ryazan' and to Yaroslavl'. The other line is a 28-inch crude oil carrier being con- structed from Romashkino in the Tatar fields to Saratov via Kuybyshev. Plans for a pipeline from Stalingrad to Tuapse via Tikhoretskaya have been completed, and construction should commence in the near future. -26- S-E-C-R-E-T 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Although it has not been announced, it is more than likely that the line will be used to facilitate the southward movement of Ural-Volga crude oil. In the Urals, two intraregional crude oil pipelines are to be constructed. A second pipeline is being installed between the Shka- povo fields and the Salavat refining area, and a pipeline to the Orsk refinery to the south from Ishimbay is planned. Of the four pipelines that now terminate in West Siberia, at least two are to become Trans-Siberian trunk lines. The gasoline pipeline that is completed to Novosibirsk is being extended to Irkutsk, and the second crude oil line now under construction is to be completed to the site of a refinery also under construction at Angarsk near Ir- kutsk. The crude oil line also will supply the refinery to be con- structed at Bogotol in west central Siberia. This line is large enough to transport considerably more crude oil than the two new refineries will require. The excess capacity will be used to carry crude oil des- tined for Far Eastern consumption and possibly for export. A branch crude oil line is to be constructed from the vicinity of Omsk to the site of a new refinery at Pavlodar in northern Kazakhstan, and a branch product line is under construction from Chelyabinsk to Atbasar, also in northern Kazakhstan. IV. Trends in Freight Traffic on Individual Carriers A. Railroads 1. Freight Traffic by Major Commodity Groups About 80 percent of Soviet rail freight traffic in ton- kilometers consists of the transport of a few bulk commodities -- coal, coke, wood, petroleum, mineral construction materials, ferrous metals, ore, and grain. Coal and coke account for more than one-fourth of total ton-kilometers. In 1958, wood and petroleum together accounted for another 26 percent. The commodity distribution of ton-kilometers and tons originated in 1950-58 is shown in Tables 13 and 14.* These bulk commodities, both as a group and individually, have changed their relative roles in total traffic only slightly over the years. The average length of haul, by commodity, given in Table 15,** indicates why the share occupied by the individual commod- ity in total ton-kilometers differs from its share in total tons origi- nated. The difference is particularly striking in the case of mineral construction materials, which account for almost 20 percent of tons originated but less than 9 percent of ton-kilometers. * Appendix A, pp. 64 and 65, respectively, below. ** Appendix A, p. 66, below. -27 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T The most significant change expected in the commodity com- position of Soviet rail freight traffic in the near future is a de- crease in the relative importance of coal. Although the volume of coal (excluding coke) transported on the railroads is planned to in- crease from 457 million tons in 1958 to 552 million tons in 1965, the share of coal in total rail tonnage is to decline from 28 percent in 1958 to about 23 percent in 1965. Simultaneously the share of petro- leum is scheduled to increase from 7 to 9 percent. If pipelines do not absorb much of the expected increase in the demand for transport of petroleum, the amount of petroleum moved by rail will be considerably greater. Planned loadings of various bulk commodities in 1965 are com- pared with loadings in 1958 in Table 14.* Goals for ton-kilometers and average length of haul by com- modity in 1965 are not available. It is known, however, that a decrease in the average length of haul of coal and an increase in the average length of haul of petroleum are anticipated, so that the change in the role of coal and petroleum in total rail traffic will be even more pro- nounced in ton-kilometers than in tons originated. 2. Freight Traffic by Region The more densely populated and industrially developed west- ern part of the USSR has always generated more rail traffic than the eastern, but the role of the eastern regions has been steadily growing (see Table 16**). The share of the eastern regions in total tons orig- inated on Soviet railroads increased from about 28 percent in 1940 to 36 percent-in 1955. This growth of traffic has been especially great in the Urals (Region VIII), Siberia (Regions IX and XI), and Kazakhstan (Region Xa). During the Seven Year Plan an increase of about 47 percent in freight tons originated on the rail network as a whole is expected. Freight dispatched on the railroads of Kazakhstan is to increase by 120 percent, that on East Siberian railroads by 88 percent, and that on West Siberian railroads by 60 percent. 22/ Almost 40 percent of the total increment in loadings is to take place on the railroads of the Urals, Siberia, and Kazakhstan. 23/ B. Motor Transport Since the late 1930's, motor truck transport has assumed in- creasing importance in the Soviet transport system. .Throughout the postwar period the rates of groWth Of truck freight traffic hav been * Appendix A, p. 65, below. ** Appendix A, p. 67, below. -28- S -E-C -R-E -T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T higher than those for rail and water transport. The importance of truck transport in the USSR is best illustrated by freight tons origi- nated, for truck traffic is primarily short-haul, intracity, or farm to market or railhead and industrial traffic. The share of total tons originatea performed by motor vehicles, which was 55 percent in 1940, increased from 66 percent in 1950 to 77 percent in 1958 (see Table 17*). Although motor vehicles will account for a large portion of additional tons originated, they will not be able to increase their own share sig- nificantly. In 1965, motor vehicles should account for about 78 per- cent of the total. Motor vehicles do not carry a large volume of freight in long- . distance transport. Although considerable growth took place in terms of ton-kilometers during 1950-59, motor vehicle performance in 1959 remained at about 5 percent of total inland transport performance (see Table 1**). The average length of haul during the period increased only fromt 10.8 to 11.9 kilometers (see Table 9***). The nature of mo- tor freight traffic probably will remain substantially the same through 1965. The average length of haul for trucks is planned to be about 14 km for 1965, and the motor transport share of total performance will still be only 6 percent. C. Inland Water Transport River shipping in the USSR is slow and unreliable and is em- ployed primarily for low-priority bulk cargoes. Use of river trans- port by shippers (with the exception of its use for rafted timber) is usually a function of the availability of other carriers. The share of river shipping in total freight ton-kilometers in the USSR was 6.7 percent in 1950 and had been reduced to 5.5 percent in 1959t (see Table 1**). Cargoes carried on the Volga River and its tributaries (the Central Basin) account for 90 percent of the petroleum products, 51 percent of the rafted timber, and 60 percent of all-dry cargoes carried on Soviet inland waterways. The long navigation seasons and even the river beds are suitable to long, deep-draft hauls, and both operating costs and tariff rates are relatively low. In the Siberian Appendix A, p. 68, below. ** Appendix A, p. 52, below. Appendix A, p. 60, below. These data include that portion of performance of the maritime fleet which is domestic. This section, however, deals with freight handled by the river fleets only. Performance by ship in coastal and intercoastal traffic together with river shipping accounted for 9.4 per- cent of total inland traffic in 1950 and 7.7 percent in 1959. -29 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T regions the short seasons and adverse route conditions limit river shipping, but rivers are often the most important mode of transport because no alternate bulk transport facilities are available. At present, tons originated on Siberian rivers account for approximately 16 percent of the inland water total in the USSR (see Table 18*). Inadequate ports and landings and a lack of suitable ships have resulted in low efficiency of river transport, and, in spite of the advantage of comparatively lower rates, shipment by rail and pipe- line is usually preferred. In recent years, service 'problems have been increased as a result of changes in the waterways occasioned by the construction of power dams, particularly on the important Volga system. A reduction in currents and the creation of large reservoirs have slowed traffic and have made certain shipping practices obsolete. The practice of hauling a large share of the timber in the form of log rafts, at low rates to consumers and high profits to the shippers, has been especially affected. The equally profitable petroleum traffic also has been slowed. ,Other river shipping operations formerly were subsidized by profits from both rafted timber and petroleum. Traffic goals announced for the current Seven Year Plan call for an increase of 64 percent in ton-kilometers and 50 percent in tons originated above the level of 1958. The planned rate of growth is consistent with past performance and probably will be carried out. It is significant, however, that the rates of increase for the 1957 and 1958 navigation seasons were higher than the average annual increases planned through 1965. The emphasis appears to be on increasing the number of long petroleum hauls and dry cargo hauls at the expense of a relative reduction in the haulage of timber rafts. This plan should be accomplished if sufficient self-propelled cargo ships are made available. Increases in river traffic by major commodity are shown in Table 19.** D. Pipelines In 1950, mainline petroleum pipelines * accounted for less than 1 percent of total tons originated and ton-kilometers performed in inland transport in the USSR. During 1951-58, tons originated in- creased at an average annual rate of 26 percent, and ton-kilometers increased at an average annual rate of 27 percent. In 1958, tons originated and ton-kilometers represented 1.1 and 2.2 percent, re- spectively, of the totals for all inland transport (see Tables 1, 12, and 17t). Data for the Seven Year Plan specify that ton-kilometers Appendix A, p. 69, below. Appendix A, p. 70, below. Field gathering lines are excluded. Appendix A, pp. 52, 63, and 68, respectively, below. -30 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 ' Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T performed by pipelines are to increase to about 185 billion and will constitute 7.8 percent of the total in 1965. An average annual rate of increase of about 27 percent will be necessary to achieve this goal. Performance during 1959 showed an increase of 23 percent above the level of 1958. Tons originated are scheduled to reach about 170 mil- lion tons in 1965 and will comprise 1.3 percent of total freight orig- inated. The growing significance of pipeline traffic also may be illus- trated by a comparison with the petroleum traffic of other carriers.* The share of pipelines in the total tons of petroleum originated in- creased from 18 percent in 1950 to 37 percent in 1958. It is esti- mated, however, that the share of each mode of transport in the total will not be altered substantially during the Seven Year Plan. In. 1950, pipelines performed 6 percent of petroleum ton-kilometers and in 1958 increased this performance to 14 percent. The 185 billion tkm to be performed by pipelines in 1965 should account for 30 to 34 per- cent of the total petroleum traffic. In 1950, pipelines originated cargo equal to 4o percent of the total crude oil extracted in that year, yet performed only 6 per- cent of total petroleum ton-kilometers by all modes of transport. In 1958, pipelines originated cargo equal to 83 percent of total extrac- tions and performed 14 percent of petroleum ton-kilometers. The aver- age distance that petroleum is pumped declined from 320 km in 1950 to a low of 257 km in 1954. The distance had increased to 374 km in 1959. If the ambitious construction program of the Seven Year Plan is com- pleted on schedule, the average distance that petroleum is pumped on the network in 1965 should be approximately 1,100 km (see Table 12**). Average network traffic density has increased considerably be- cause of the increased use of large-diameter pipes. Density increased from 0.9 million to 2.3 million tkm per kilometer of line between 1950 and 1958 and is expected to reach 4.3 million tkm by 1965. V. Operating Efficiency A. Railroads Soviet railroad operations are characterized by the concept of maximum utilization of the freight car. Success in the accomplishment of this objective is much more attainable under the conditions encoun- tered in the USSR than in the US. Concentration in the origin and * Motor vehicle transport of petroleum is small in volume and local in character and is therefore excluded from this discussion. ** Appendix A, p. 63, below. -31- 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T termination of tonnage as a result of the location of resources, the manufacturing capacity, and the urban population in a limited number of major centers has made the Soviet problem one primarily of handling long-haul carload business originating and terminating at a limited number of major points. The traffic mix includes higher proportions of bulk commodities and lesser proportions of manufactures than in the US. With few competitive or alternate routes, a minimum of branch lines, and no shipper control over routing, it becomes easy to mini- mize intermediate yard work. There also is, in sharp contrast to US practice, effective pressure on shippers to accept and unload freight immediately. Soviet seasonal variations also are much less marked ' than those ih the US The highly concentrated and remarkably even flow of traffic, resulting in exceptionally high traffic densities, has created ideal conditions in the USSR for intensive utilization of plant. Require- ments of a competitive economy resulted in the US railroad plant be- ing substantially overbuilt both to encourage traffic generation and to handle peak demands over which the railroads have no control. Results of the conditions described above are clearly reflected in certain key operating indexes (see Tables 20 and 21*). Soviet freight car turnaround time, which has been reduced almost steadily since World War II, was reported to be 5.83 days** in 1958. Freight car turnaround time in the US is about 15 days and has never been much below 11 days. Most of the difference is accounted for by loading and unloading time for shippers.; ,with same lesser time requiredin yards and terminals in the USSR. The average operating freight car in the USSR spends 34 per- cent of its time in trains between terminals, whereas the average operating freight car in the US spends only 10 percent of its time in trains between terminals. ? Gross ton-kilometers per freight train hour, generally regarded as the best single index of line-haul efficiency, increased by 82 per- cent during 1950-58 in the USSR. US performance in this respect is still more efficient than Soviet performance, principally because of longer, heavier trains and higher average speeds in the US. Acquisi- tion of more powerful electric and diesel locomotives,' considerable upgrading of existing steampower, lengthening of sidings, and improve- ment of signaling and yard facilities are planned to enable the USSR to increase efficiency in terms of gross ton-kilometers per freight train hour, by 42 percent from 1958 to 1965. :Diversion of extremely short-haul traffic from the rail system to motor transport, together * Appendix.A, pp. 72 and 73, respectively, below. ** Soviet statistical methodsAend:to understate this figure, but it is nevertheless significantly less than its comparable US counterpart. -32- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T with technological developments, should continue to develop more fa- vorable operating indexes through 1965. B. Motor Transport 1. Utilization of Equipment The operating efficiency of Soviet motor vehicles is very poor. Nearly one-half of the civilian motor park is chronically unfit. for service, and trucks and buses are more often than not engaged in hauling traffic for which they were not designed. Partly because of the short-haul nature of Soviet trucking, it is difficult to provide back haul, and nearly 50 percent of truck-kilometers are run empty, as ' shown in the following tabulation LY: Serviceable vehicles 1940 - 1950 1955 1956 1957 1958 (percent of total) 39.0 48.0 52.0 54.4 56.9 60.8 Utilization of vehicle kilometers (percent of total truck-kilometers that run loaded) 55-0 53.7 52.5 53.0 53.5 53.1 Repair facilities, supplies of spare parts, and trained personnel have not been adequate to meet requirements. Although these shortcomings have long been recognized as a handicap to efforts to in- crease motor vehicle operating efficiency and decrease operating. costs, few effective measures have been taken to alter the situation. The consolidation of motor pools that began recently has ? alleviated the situation somewhat by making possible the application of mass repair techniques, which could not be used previously. Con- solidation also has improved utilization by reducing empty runs to some extent and by increasing the size of loads carried. During 1959-65 the expanding motor freight traffic is to be handled by increasing the average volume of ton-kilometers per- formed per vehicle by 32 percent. Ton-kilometer performance of civil- ian trucks is to increase by 90 percent with an increase in inventory of only about 20 percent. 2. Utilization of Network , Most of the good roads in the USSR have only recently been constructed, and their full capacity has not yet been developed. Given - 33 - S-E-C-R-E-T. Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T the modest increment in intercity movement expected, this situation should continue through 1965. In most cases, highway construction is undertaken not because maximum density has been reached but rather to permit the existing or proposed future traffic levels to operate more efficiently. In some cases, construction is simply a matter of providing a passable road. There is a pressing need for farm-to-market highway links. Even within urban and industrial centers, traffic is not heavy, and, except in a few large cities, it has not been necessary to increase the traffic capability of city streets. C. Inland Water Transport 1. Utilization of Equipment During 1950-55, all utilization indexes for tugs with rafts and for petroleum barges showed declines except in technical speeds.* The increase in technical speeds, however, does not necessarily indi- cate faster deliveries, because the over-all operating time of ships between terminal points has increased. The faster running time proba- bly can be traced to the acquisition of new diesel tugs, push tugs, and metal barges that are speedier and can operate more effectively when underway. There are no detailed breakdowns available after 1955, but 1958 productivity figures for, tugs with rafts and for petroleum barges indicate that tug utilization per horsepower continues to de- crease, while the productivity of petroleum barges per deadweight ton increased to the 1950 level. The productivity of dry cargo barges has slowly, but consistently, increased during this period. The general decline in performance of the river fleet may be explained by a number, of factors. Decreased loadings per horsepower and deadweight ton unit may have been caused by surplus shipping capac- ity stemming from an inability to attract traffic or by a deliberate reduction in loads (particularly timber rafts) in order to insure tugs better control of their tows. Navigation probably has deteriorated to such an extent that a large proportion of the ships are incapable of maintaining or-achieving efficient operations under existing circum- stances. Although the declines noted are not drastic, they will con- tinue until ships suitable for shipping under lake and reservoir con- ditions are provided.** * Technical speed is the average speed of movement between terminal points and includes only the net running time. Route speeds -- or the gross running time -- of a. ship operating between terminal points include all delays en route. -34- S-E-C-R-E-T 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T 2. Utilization of Network On river networks of the USSR the average freight density* is approximately 1 million tkm per kilometer of route. The Volga has an average density of 10 million thin, but some of the longer Siberian rivers average less than 400,000 thin. Freight increases scheduled for 1959-65 are relatively higher for the eastern regions, which should result in increasing utilization of the Siberian networks. Average freight density should total about 1.5 million thin per kilometer of route by 1965. D. Pipelines Although the USSR has been successful in achieving substantial annual traffic increments on its petroleum pipeline system for a num- ber of years, analysis of operating indexes and literature on pipelines indicates that the low level of pipeline technology has been an obsta- cle to even more significant increases. In constructing the pipelines, emphasis has been placed on getting the pipelines into the ground and ready for low-pressure operation. Relatively less attention has been given to increasing traffic by the installation of more and better pumping and control facilities. The diameter of pipe used in the construction of new petroleum pipelines in the USSR is excessively large when the other factors that determine capacity are considered. This situation is contrary to cur- rent Western design practice in which operating capacities are high relative to pipe diameter. Soviet pipelines of 15-inch, 20-inch, and 24-inch diameters are planned for capacities of 3 million, 7 million, and 10 million to 12 million tons, respectively, per year. 2Y US experience indicates that pipelines of these diameters operate most economically when used at capacities of about 5 million, 10 million, and 12 million to 15 million tons, respectively. 22/ The installation and operation of pipelines at even the low capacities presently planned are goals that are not now being met in * Freight density figures used in this report are derived from ton- kilometer performance of common carrier river transport steamship agencies and the length of route operated by them during given navi- gation periods. Figures for noncommon carrier operations are not available. An accurate estimate of river network utilization in the USSR is complicated as a result of the inclusion in river statistics of some coastal traffic performed by some inland waterway agencies and the exclusion of river route lengths where common carrier deliveries may not have been carried out. The extent of these variations, how- ever, should not substantially alter the estimates made above. - 35 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T the USSR. This situation is largely due to shortcomings in production and installation of pumping facilities. The inability to coordinate new refining capacity with pipeline completion dates and inadevate storage and.distribution facilities contributes to the problem. Dur- ing 1956, only 5 of the planned 22 pumping stations were built. 2/ This situation has not improved. In 1958, one pumping station was completed for operation. Automatic control systems have been limited to one or two lines and must be considered experimental. In 1955 the level of utilization of designed capacity of the network was 74 to 75 percent, and in 1958 the network operated at only 68.2 percent of designed capacity. 21/ Full utilization of existing capacity is apparently not planned until some time after 1965. Al- though emphasis is being placed on pipelines as a method of relieving the railroads of much burdensome long-haul freight, the savings will not be as great as they might be, because of the low technical level of installation and utilization of the pipelines. Consideration of the problem of steel allocation in the Soviet economy and of the fact that pipe-producing capacity has not been able to keep up with pipeline construction makes it seem reasonable to as- sume that the over-all design of pipelines and production and instal- lation of pumping facilities are hindering and will continue to hinder the application of the improved petroleum pipeline technology neces- sary for a high level of operating efficiency. VI. Rate Structures and Policies A. Railroads* Before World War II and during the immediate postwar period ? the general direction of Soviet rail rates had been upward in order to help achieve solvency. The revision of rates on.1 January 1949, ? which was intended to enable the railroads to support themselves at current levels of traffic, brought the rates to a level 68 percent 33/ aboVe that of 1939. Since 1949, freight tariffs have been revised six times, generally downward. By 1955 the rates had decreased 30 percent and stood at about 21 percentabove the level of 1939. 311/ At the ? same time, the railroad operating ratio has improved steadily every year since 1949 (see Table 22**). This improvement has been possible because unit operating costs declined even more rapidly than unit op- erating revenue throughout the period. Cost and profit data in the Seven Year Plan indicate that rates will be held at current levels Appendix A, p. 74, below. -36- S-EC-R-E-T 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T rather than continuing to decrease as costs decrease. Essentially this situation indicates the establishment of a new rate policy, which, in retrospect, can be seen to have developed during the past, few years. Railroad revenues in the USSR have been sufficiently high to accrue operating surpluses that not only cover capital investment in rail transport and other nonoperating expenses but produce net surpluses that accrue to the central budget for allocation to other carriers or other sectors of the economy. The new financial policy appears to be designed to increase operating surpluses rather than lower rates. Results obtained from this policy are contained in the discussion of profits and surpluses.* Rate structures, in addition to influencing the financial status of the railroads by their general level, also have been used to influence economic development. The latter has been accomplished by so constructing rates and rules as to influence traffic patterns and marketing areas. Another device for influencing industrial de- velopment has been the use of preferential rates for industrial raw materials and producer goods at the expense of consumer goods and passenger traffic.** In effect, this policy has amounted to a sub- sidy to heavy industry or a hidden tax paid by the consumer (see Table 23 XXX). The new system of rates introduced.in 1949 generally accentu- ated certain distinguishing features of the 1939 rates.t Restriction of marketing areas for most industrial commodities continued. These restrictions were achieved by increasing the charge per unitr.of dis- tance as the distance increased after the agreed optimum haul had been reached. 12/ For certainrcommodities, chiefly coal, petroleum, and mineral construction materials, a combination of prohibitive surcharge rates and exceptions was introduced to control the market area. The surcharge rates of between 50 and 100 percent established tariff barriers at traffic divides, which usually persuade the ,purchasing * See VII, p. 40, below. ** Although there is a tendency in other countries for bulk cm., modity rates that are essentially industrial to be lower than con-. sumer sumer goods rates, the extent of the discrepancy is very seldom as great as in the USSR. *** Appendix A, p. 75, below. This table shows average revenue rates for selected commodities as a percent of unit costs of railroad freight traffic for selected postwar years. The data presented indicate the" differences between commodities that are essentially industrial and. consumer goods. . t In 1942, certain special reduced.rates that favored heavy indus- try were abolished. Military shipments; :which had, been exempt from paying freight charges, lost their privileged position and were treated as normal commercial traffic. -37- S-E-C-R,E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T industry to resort to local sources of supply. In practice the use of surcharge rates and exceptions has been more effective than the manip- ulation of distance rates. Heavy industry lost more of its privileged position in the 1949 revision. The freight rates for industrial raw materials and producer goods were increased relatively more than those for consumer goods. In spite of the disproportionate change, revenues from con- sumer goods and passenger traffic continued to account for most of the operating surpluses.* The rates for most industrial commodities were simply brought closer to their transport costs, whereas rates for con- sumer goods remained considerably above their transport costs. Pas- senger fares, which were at their peak in 1948, also have declined since 1949, although not as much as freight rates. In 1951 suburban fares were reduced and the use of season tickets was increased. Railroad rates, which are applied to such a large portion of the total inland traffic movedj provide a natural base on which rate systems for the less developed modes of transport can be built. In instances where it is desired to divert traffic from the railroads to another mode of transport and where the rail tariff is low enough to compete with the costs of the alternate mode, increases and penalties are applied to bring about the desired results. Rate structures thus also are used as an instrument for preserving the noncompetitive, maximum-use aspect of Soviet transport. B. Motor Transport Motor freight traffic in the noncompetitive transport system in the USSR is assured not so much by the motor freight rate structure as by certain other factors. Because of the relatively limited extent Of railroad and water networks in the USSR and because of the fixed nature of railroad and water networks in general, certain hauls must necessarily be made by motor vehicles. Also, a penalty rate for rail shipments under specified distances tends to force shippers to use motor vehicles for short hauls even when railroad service also is available. In general, however, the rate structure for motor freight traffic is not unreasonably high. It is believed that the motor-ve- hicle rates are sufficiently high to cover operating costs in most instances.** If the cost reductions that are now forecast occur, considerable profits will result. These profits probably will be * The consistently low operating ratios for passenger service are shown in Table 24, Appendix A, p. 76, below, ** See VII, p. 40, below. - 38 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T reinvested in motor transport, although a rate reduction also is a possibility. C. Inland Water Transport The current tariffs for inland water transport, which became effective on 1 January 1957, represent the first complete revision of the river freight rate structure since 1940. The new tariff, in addi- tion to adjusting rates to bring them closer to costs, simplified rate- making and made more rational the application of the rate policies al- ready in existence. Several elements of rate policy are evident in each of the tar- iffs and in the changes from one to the other. Unlike railroad rates, which apply to the whole network, river rates vary from one steamship company to another. Before 1957, rates varied from one river to an- other.* In general, the level of rates applicable to a given steamship company bears some relationship to operating costs. Rates, which are generally lowest in the Volga Basin, become higher as one progresses from the Volga Basin to other river systems northward and eastward. Thus the Lena and Pechora Rivers have the highest rates and the highest costs. E/ Unlike rail rates, there is no attempt to limit length of haul, and almost without exception charges per unit of distance de- crease as the length of haul increases. Rates applicable on waterways that are connected with or are parallel to railroad lines are manipulated so as to induce shippers to utilize water transport as much as possible. There are 68 excep- tion rate classes, which are grouped under two categories mid which apply to shipments between ports, also connected by railroads. One category is for through water traffic, and the other category is for the water part of combined rail/water through shipments. The rates are computed at a certain percent below the rail rate for the all-rail distance between the ports -- that is, 10 to 20 percent below the rail rate in the case of through water traffic and 20 to 50 percent below the rail rate for combined through rail/water traffic where a through water route is not available. 2/ Great success has been claimed for the policy. The volume of combined hauls had already increased considerably before the introduc- tion of the new tariff. Between 1946 and 1957 the volume increased 200 percent. In 1958 alone, combined hauls increased 35 percent and accounted for 20.6 percent of all freight hauled. 39/ As a result of the policy of giving inducements to water ship- ments and the relatively low level of rates, substantial operating * Steamship company lines generally coincide with individual rivers. -39- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T losses are incurred each year on dry cargo shipments. The deficit ?is made up by revenues from oil and rafted timber traffic, the rates for which, although low, are significantly higher than the very low oper- ating costs. The following operating ratios for the various types of freight computed from 1950 plan data are illustrative Kopecks per Ton-Kilometer Revenue Cost Operating Ratio Rafted timber 2.2 1.4 63.6 Oil 4.2 2.4 57.1 ?Dry cargo 5.9 7.2 122.0 All freight 4.0 , 4.0 100.0 Subsequent changes in the structure of freight hnd rates have not sig- nificantly altered the situation. D. Pipelines Pipelines in the USSR are owned and operated by the petroleum industry. For this reason, no rates for the transport of petroleum have been announced, and none is believed to exist. VII. Costs, Revenues, and Profits A. Railroads . Unit operating costs,* probably the most useful single indi- cator of changesin over-all operating efficiency, have decreased spectacularly for a number of year on Soviet railroads. Because con- current decreasesdn'unit operating revenue have been less, the opera- ting ratio** for both.freight and passenger service has declined'suf- ficiently for the railroads to move from :a position of financial de- pendence to a position of financial independence during the past dec- ade. Unit operating costs for combined freight and passenger service decreased about 36 percent, from 5.252 to 3.349 kopecks per traffic- kilometer, between 1950 and 1958. Unit operating costs for freight * The cost of performing 1 ton-kilometer or 1 passenger-kilometer. ** The operating ratio (operating costs as a percent of operating revenues) illustrates the relationship between operating income and expenditure. The operating ratio is used as an indicator of financial condition resulting from operations alone and does not include nonop- erating income or expenditures such as taxes and investment. -4o- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T service declined about L[o percent, from 4.861 to 2.930 kopecks per ton-kilometer, and unit operating costs for passenger service de- clined about 16 percent, from 8.058 to 6.793 kopecks per passenger- kilometer. Unit operating costs for combined service are expected to decline 21 percent, to 2.64 kopecks per traffic-kilometer, during 1959-65 (see Tables 22, 24, and 25* and the chart, Figure 20**). AS a result of declining unit costs, obtained by modernization of plant and equipment, Soviet railroads have been able to handle a spectacular increase in traffic and at the same time hold increments to total cost of their services to a minimum. Between 1950 and 1958, performance in terms of traffic-kilometers increased at an average annual rate of about 10 percent, whereas total operating costs in- creased only 3.8 percent per year. It is estimated that operating costs will increase only 10 percent by 1965, whereas traffic will in- crease by nearly 40 percent. Operating revenue per traffic-kilometer declined somewhat dur- ing 1950-58 as a result of tariff changes and changes in the general composition of freight and traffic patterns. As a result of traffic increases, however, operating revenues increased at a much faster rate than costs. The operating ratio for combined freight and passenger services declined from 85.2 to 71.9, and total operating profits grew accordingly, from 6.3 billion to 19.1 billion rubles. Most of the de- cline in the combined ratio was due to consistent decreases in the ratio for freight service, which was lowered from 90.2 to 73.3. The ratio for passenger service remained at approximately 70 throughout the period. Until very recently, high passenger receipts were used to offset low income from freight operations. In 1950, profits from pas- senger operations accounted for 50 percent of total operating profits. By 1958, however, profits from passenger operations had dropped to 25 percent of total operating profits. By the end of 1953, total profits had increased sufficiently to provide a net surplus of 363 million rubles for the year .XXX Def- icits had occurred for several years before 1953. Since that year the net surplus has increased steadily. By 1958 it had reached 9.8 billion * Appendix A, pp. 74, 76, and 77, respectively, below. ** Following p. 42. *** The net surplus or deficit indicates the financial status of the railroads after payments to and allocations from the state budget. The railroads pay to the state budget from profits, from funds resulting from the sale of property, and from the turnover tax and receive from the budget funds for capital investment and expansion of working capi- tal. In short, net deficits are covered by the state budget and net surpluses accrue to the state budget. Table 26, p. 78, below, shows profits surpluses and deficits for 1950-59 and the 1965 Plan. - La - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 \Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 i S-E-C-R-E-T rubles and was planned to increase to 12.2 billion in 1959. It is ex- pected that by 1965 the annual surplus will reach 22 billion rubles and that during 1959-65 a total of 121 billion rubles will accrue to the state budget for allocation to other sectors (see the chart, Figure 21*). B. Motor Transport The only published financial data on motor carriers are oper- ating costs. It is not known, therefore, to what extent motor vehicle operations are profitable and to what extent capital investments are self-financed ?** Motor vehicle operating costs are high as a result of certain technical and organizational weaknessesxxx but have undergone some de- cline in recent years. Between 1950 and 1956, operating costs decreased one-third, to 70 kopecks per ton-kilometer for all motor freight car- riersW and to 49 kopecks per ton-kilometer for the common carrier park. 2/ As a result of reductions in operating costs, the annual cost of motor freight service has increased much more slowly than traffic turnover. Total operating costs increased 62 percent, from 21 billion rubles in 1950 to 34 billion rubles in 1956, whereas freight turnover increased 141 percent during the same period. The high total cost of motor freight service also indicates the importance of the service in the economy, as do tons originated. In 1950, total operating expenditures by motor freight carriers were 72 percent of the total operating expenditures by railroads, and by 1956 these expenditures had increased to 95 percent. C. Inland Water Transport Attempts to reduce unit operating costs of inland water trans- port have been less successful than for railroad transport. Although plan data have consistently indicated that costs would be lowered, rel- atively little actually has been accomplished. Serious underfulfill- ment of investment plans and changing navigational conditions have been largely responsible. Between 1950 and 1958, costs per traffic-kilometer decreased 24 percent. During the same period, unit costs for railroad transport decreased more than 36 percent. Data for the Seven Year Plan specify that operating costs are to be lowered about 24 percent during 1958-65. * Following p. 42. ** Analysis of the motor vehicle freight tariff and composition of freights suggests that operating income is slightly higher than opera- ting costs. *** See V, B, p. 33, above. - 42 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15.: CIA-RDP79R01141A001900030001-6 Current Kopecks 7 3 1 Figure 20 50X1 USSR PROFIT AND COST SEGMENTS OF UNIT REVENUE OF RAILROADS 1950-58 AND 1959-65 PLAN P' ,,, ?,-;,/ rj il m viiiii riti , 1,111 ir,7,777://fill,A m riff/Zg713/94 COST 1950 1951 1952 1953 1954.. 1955 1956 1957 1958 1959 Plan 29365 12-60 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 1965 Plan 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15' : CIA-RDP79R01141A001900030001-6 Billion Current Rubles 25 20 15 10 5 Figure 21 USSR NET CONTRIBUTION OF THE MINISTRY OF RAILROAD TRANSPORTATION TO THE STATE BUDGET, 1951-58 SURPLUS DEFICIT 1951 29364 12-60 1952 1953 1954 1955 1956 1957 PAYMENTS TO THE STATE BUDGET APPROPRIATION FROM THE STATE BUDGET 1958 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T This reduction will be possible only if the investment plan is adhered to strictly. The relationship between inland water operating costs and rail- road operating costs indicates the seriousness of the cost problem. In 1950, unit operating costs for inland water transport were only 79 per- cent of those for railroads. By 1958 they had risen to 94 percent (see Table 27*). Operating ratios for inland water transport are very high as a result of relatively low tariffs and high operating costs. The ratio exceeded 100 until 1953, and in 1957 the ratio was still above 95.** The inland water fleet incurred operating losses throughout the post- war period until 1954. Since that year, there have been small operat- ing profits. These profits have not been sufficient, however, to offset other nonoperational expenses. In order to cover all such ex- penses, it would be necessary to lower the operating ratio, currently above 90, to about 85. Capital investments in inland water transport are completely subsidized through the All-Union and republic budgets. It is not likely that the inland water fleet will become financially self- sufficient in the foreseeable future, as the operating ratio would have to be lowered to about 57 to bring this result about. D. Pipelines As a result of accelerated network expansion and the use of larger diameter pipes that are potentially more efficient, operating costs of petroleum pipelines have decreased faster than those for other modes of transport. Consistent cost data for petroleum pipeline opera- tions, which are available for 1954-56, indicate that the unit cost de- creased 31 percent, from 2.38 to 1.65 kopecks per ton-kilometer, for these 3 years alone. /IV Thus although the number of ton-kilometers performed doubled during the 3-year period, total operating costs in- creased only 39 percent. Because of certain technical and operational difficulties, op- erating costs are still higher than they should be. Operating costs for petroleum pipelines of a given diameter and annual throughput for the USSR and the US indicate that unit operating costs in the USSR are about one-third of the average cost per rail ton-kilometer and such * Appendix A, p. 79, below. ** Operations on the Volga-Kama River system, where most of the traf- fic is handled, are somewhat more profitable than the over-all ratios indicate. -43- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T costs in the US are only about 7 percent of the average cost per rail ton-kilometer. )12/ No tariff or revenue data have ever been found for Soviet pe- troleum pipelines. Inasmuch as the pipelines are not common carriers, Soviet planners probably consider cost to be the only measure of price paid for the transport of petroleum by pipeline in the USSR. VIII. Capital Inputs and Productivity A. Capital Allocations The term capital allocations as used in this report is a Soviet financial term describing the total disposable financial resources available to the economy or any of its sectors.. These allocations pro- vide funds for new fixed investment; expansion of working capital; cap- ital repairs; and various other outlays, including health, welfare, housing, and education. Funds for capital formation are made from the state budget and from internal organizational funds. Sources of funds allocated.through the budget are primarily state accumulations from the turnover and profits taxes. Sources for organizational allocations are primarily amortization allowances, retained profits, and surpluses re- sulting from savings in investment costs. The portion of total allocations made available to the trans- port and communications sector has decreased significantly in recent years (see Table 28*). Between 1950 and 1953, estimated allocations to this sector alone** averaged nearly 14 percent of total investment in the Soviet economy. In 1958 and 1959 these allocations had dropped to 7.8 and 9.9 percent, respectively. The relative significance of allocations from the state budget alone to the transport sector has de- clined, although the allocations have not decreased absolutely. During 1951-55 they averaged 8.6 percent of total state budget allocations, and since then they have averaged 7.1 percent. B. Capital Investment, Fixed Assets, and Capital Productivity The Soviet economy has developed a policy of minimum capital investment in transport. In general, Soviet practice has been to use relatively large amounts of labor to keep equipment in operation:for much longer periods.before overhaul or retirement than is the practice in Western Countries and to increase the capability of the existing network while holding construction of new lines to a mimimum. * Appendix A, p. 8o, below. ** Communications have generally taken from 3 to 5 percent of the total allocated to transport and communications. - 44 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15 : CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Only limited manufacturing and construction capacity has been allocated to transport, although the demand for transport services by the economy has increased rapidly. A reversal of these trends is not envisioned in the near future. The increases in capital investment planned for the Seven Year Plan period are modest when consideration is given to the expected levels of transport performance and to in- vestment increases in other sectors of the economy. A consequence of the investment program is the strong tendency to continue to increase over-all traffic density on the existing carrier network. In recent years, there has been a tendency to increase nonrail- road investment faster than railroad investment. This trend has oc- curred mostly in motor transport, in order to relieve the railroads of costly short-haul traffic, and in maritime and inland water shipping, together with petroleum pipelines, in order to relieve the railroads of burdensome petroleum traffic. Absolute capital investment in transport has increased through- out the period of Communist control. However, the relative share of investment in the national economy accruing to transport has declined. Table 29* shows estimated capital investment in transport and communi- cations and the share of total investment allocated to transport, by plan period. Average annual investment in transport and communications dur- ing the immediate prewar years was 8.5 billion rubles, or about 20 per- cent of total investment. During the Fourth Five Year Plan (1946-50) and the Fifth Five Year Plan (1951-55), average annual investment rose to 9.6 billion and 13.2 billion rubles, respectively, but these figures' as a percent of total investment dropped to 14.2 percent and 10.1 percent, respectively. During the first 2 years of the original Sixth Five Year Plan, investment in transport and communications con- tinued to increase, averaging 17.9 billion rubles per year. At the same time, the share of total investment declined to 9 percent. Invest- ment data for the Seven Year Plan indicate that the share of total in- vestment that will go to transport is to remain at about the present level and that an annual average of about 30 billion rubles is planned. The budget figure for 1959 was 23.3 billion, and the investment plan was exceeded. Although the data that are readily available are not completely comparable, valid investment comparisons can be made between the USSR and the US that confirm the relatively low level of investment in trans- port in the USSR. The share of US investment that went to transport remained constant at about 19 percent between 1951 and 1957. In 1958 * Appendix A, p. 81, below. -45- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T and 1959 the percentages increased sharply to 22 and 25 percent, re- spectively, because of stagnation in general investment and increases in highway building programs. During the same decade, Soviet transport investment averaged 11 percent of total investment, with a slight down- ward trend (see Table 31*). In absolute figures, annual transport in- vestment in the US averaged $6.5 billion during 1951-57. On the basis of a 5.5-to-1 ruble-dollar ratio, comparable annual investment in the USSR amounted to about $3.3 billion.** As a result of the relatively low level of investment in trans- port, the transport share in total Soviet fixed assets has declined throughout the period of Communist control. Estimates for selected years are as follows /iY: 1913, 36.4 percent; 1928, 34.9 percent; 1940; 29.3 percent; 1950, 25.6 percent; and 1956, 20.1 percent. Soviet offi- cial estimates state that the productive assets of industry and con- struction organizations increased 32.6 times between 1913 and 1956 and that the assets of the transport and communications sector increased only 8.2 times. Lg./ 1. Railroads Capital investment in railroad transport has increased in recent years as investment has increased generally in the Soviet econ- omy. Representative, however, of the trend in total transport invest- ment, investment in railroad transport has not grown as fast as invest- ment in the economy as a whole. During the 8 1/2 years immediately preceding World War II, 14.3 percent of total investment went to the railroads. In the Fourth Five Year Plan, 10.4 percent went to the rail- roads. Their average share declined to 6.0 percent during 1952-58. Ac- tual investment in railroad transport averaged 7.0 billion rubles during 1946-50 and 9.8 billion rubles during 1951-55. In 1959, 14 billion rubles were invested (see Tables 29 and 30xxx). Average annual invest- ment in railroad transport is planned to be about 16.1 billion rubles during 1959-65. The portion of investment in all modes of transport that has gone to railroad transport has remained very high throughout the Soviet period, although it has shown a slight decline in recent years. Investment in railroad transport accounted for nearly 74 percent of all Appendix A, p. 83, below. ** The appropriate dollar valuation of the ruble varies greatly ac- cording to the composition of the goods and services comprising the in- vestment ruble for various investment programs. The ratio of 5.5 to 1 is an estimate based on the ruble-dollar cost of the components of the transport investment plan and cannot be applied to any of its compo- nents. XXX Appendix A, pp. 81 and 82, respectively, below. -46- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 .101, S-E-C-R-E-T investment in transport during 1945-55 and probably averaged between 60 and 65 percent during 1956-59.* Data in the Seven Year Plan in- dicate that the share of transport investment going to railroad trans- port will decline only about 3 percent by 1965. In contrast to the high share of transport investment ab- sorbed by the railroads in the USSR, the relative share of transport investment in the US that has gone to railroad transport has been very low. Between 1950 and 1959, railroad investment in the US declined from about 29 to 10 percent of the total** (see Table 31 XXX). Railroad transport investment policy in the USSR has been dominated almost entirely by a single financial consideration. This consideration has been the necessity of keeping capital inputs at a minimum level consonant with increasing performance at sustained high rates. The desire to reduce transport costs, although of significance, has been a secondary consideration. It has been true, however, that investment which had been planned to increase capacity, and hence per- formance, also has served to decrease operating costs. A comparison of the relative effectiveness of new construc- tion with an increase in the capacity of existing railroads in terms of annual increases of freight traffic (expressed in ton-kilometers per ruble of new capital investment) indicates that investment savings have accrued from the increases in capacity but also points up the decreas- ing practicability of pursuing this policy with such single-mindedness in the future. During 1946-50, each ruble of capital investment in re- construction of the existing network resulted in five to six times greater traffic increases than each ruble invested in the construction of new railroad lines. The ratio of investment in existing network to construction of new lines during 1951-55 was 1 to 3, and in the plan for 1959-65 it is expected that this ratio will change to 1 to 1. One result of Soviet railroad investment policy discussed above has been to limit construction of new lines to areas of the highest priority. During 1917-58 the length of the network increased only 75 percent, while freight traffic increased nearly 20 times. Since 1950 the length of the network has increased 5 percent and freight traffic 116 percent. Average freight density per kilometer of line was 10.6 million thin in 19585 about three times greater than in * Because of the noncomparability of Soviet data, it has not been possible to determine exact percentages for the latter years. ** Although transport investment figures for the US and the USSR are not entirely comparable, the significance of the comparison offered is not altered. See Table 31, footnote a, p. 83, below. *** Appendix A, p. 83, below. -47- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T the US. The resultant concentration of traffic on the relatively re- stricted network has brought about strains and imbalances in the rail- road system that are costly to the national economy and that tend to be hidden by impressive operating indexes. Because of the lack of direct connections, circuitous routing is frequent. Another result of Soviet railroad investment policy is that adequate transport in depth often is not available to areas which have recently been brought under development. Comments on the investment program for railroad transport under the Seven Year Plan have emphasized that funds for the construc- tion of new lines are not adequate. T.S. Khachaturov, a prominent transport economist, has stated that an annual average of 3,000 km of new lines should be constructed through 1975 if the railroads are to be able efficiently to support general economic development. /12/ The plan calls for the construction of about 9,000 km of new lines during 1959-65. This plan implies a slower rate of construction than was planned for the 1946-50 and 1951-55 Plans, which were considerably un- derfulfilled. A capital-output ratio series for Soviet railroads pre- viously constructed. by a US economist indicated that the ratio declined to about 2.4 in 1939, rose to a high of 3.7 in 1947, and declined again to about 2.9 in 1952. 22/ The sharp postwar decline was the result of extremely high rates of growth that in the early years represented re- covery of lost traffic with but limited capital investment. The de- cline is confirmed by more recent analysis, which in addition indicates that the ratio has leveled off during the last few years and that at some point in the next few years it will begin to move slowly upward. The validity of the recent direction of the ratio is supported by sev- eral observations of decreasing capital efficiency that have recently become apparent* (see Table 32**). . The marginal value of Continued investment in the existing network as opposed to network expansion has been noted. As Soviet railroads approach maturity and achieve a lower labor-capital ratio, a leveling off or a rise of the capital-output ratio should be experi- enced. * The calculation of a capital-output ratio for railroad transport in the USSR is difficult because assets are figured at book value rather than at current prices and have to be adjusted accordingly. The ratios presented here were constructed largely on the basis of - estimates of value that have been made by Soviet economists. . An in- dustry-wide inventory is now underway that should allow more accurate analysis of capital-output ratios in the near future. ** Appendix A, p. 84, below. -48- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T A comparison of incremental output and new investment for the two 7-year periods 1952-58 and 1959-65 serves as further corrobo- ration of the analysis of declining capital efficiency. It was found that during the earlier period, for each additional billion traffic- kilometers performed, 98 million rubles were invested, and it is ex- pected that during the Seven Year Plan 192 million rubles will need to be spent to generate each additional billion traffic-kilometers. .2. Motor .Transport The available financial data for motor vehicle transport have not been sufficient to enable a satisfactory estimate of.capital investment to be made. It is possible, however, by taking into con- sideration the low-level of highway construction and inventory in- creases, to state that investment in motor vehicle transport has, been kept to a minimum. The low volume of highway construction has been. especially significant, Data in the Seven Year Plan do indicate, however, that in- vestment in motor vehicle transport probably will increase faster than that in other modes of transport except petroleum pipelines. Plans for highway construction and inventory expansion suggest that invest- ments during 1959-65 are to increase by nearly 200 percent in compari- son with the previous 7-year period. The corresponding percentages for railroad and inland water transport are 88 and 30, respectively. Even if expected increases occur, Soviet investment in motor vehicle transport during the entire 7-year period is not likely to approach US investment for any single year of the period. 3. Inland Water Transport Capital investment in inland water transport has been mod- est and insufficient throughout the postwar period. Partly as a re- sult of inadequate investment, traffic plans have not always been ful- filled, operating costs have not been lowered as planned, and modern- ization of the fleet has taken place very slowly. Three billion rubles were allocated for investment in in- land water transport during the Fourth Five Year Plan. Of this amount, it is estimated that less than 2 billion rubles actually were spent. Investments began to increase during 1951-55 and averaged about 1.7 bil- lion rubles per year between 1950 and 1958. 21/ Data in the Seven Year Plan indicate that average annual investments are to increase to about 2.2 billion rubles, or 30 percent more than the average during the pre- vious 7-year period. .51/ By-comparison, railroad investments,are.to increase by nearly 88 percent.' At the same time, inland water freight traffic is scheduled to increase by more. than 60 percent, whereas rail- road freight traffic is to increase by 4o to 45 percent. -49 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Planned investment may not be entirely adequate. It is probable that the traffic plan will be fulfilled but that planned de- creases in operating costS and increases in labor productivity will be difficult to achieve without greater investment in modernization of plant and network. Pipelines Investment in petroleum pipelines has been low until very recently, as the figures for network expansion indicate. On the basis of construction completions and costs, it is estimated that about 2 bil- liOn rubles were spent for pipeline construction during 1951-55.* Tho considerable emphasis being placed on development of pe- troleum pipeline transport is reflected in the planned investment of 12 billion rubles reported for 1959-65. 2.a/ * Investment for petroleum pipeline construction. is contained in in- vestment allocations to the oil and .gas industry and is not a part of transport and communications investments. -50- S-E-C-R-E-T, I Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E- C-R- E- T APPENDIX A STATISTICAL TABLES - 51 - S- E- C-R- E- T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S -E -C -R -E -T Table 1 Ton-Kilometer Performance by Inland Transport in the USSR and the US by Mode of Transport 2/ 1950, 1955-59, and 1965 Plan Carrier Billion Ton-Kilometers Percent of Total 1950 1955 1956 1957 1958 1959 1965 Plan 1950 1955 1956 1957 1958 1959 1965 Plan USSR Railroads 12/ 602.3 970.9 1,079.1 1,212.8 1,302.0 1,429.5 1,850 87.o 85.9 86.3 86.3 84.9 84.6 78.0 Motor vehicles 12/ 20.1 42.5 48.5 61.7 76.8 87.6 146 2.9 3.8 3.9 4.4 5.0 5.2 6.2 Inland water fleet y 46.2 67.7 70.5 76.4 85.5 93.6 140 6.7 6.o 5.6 5.4 5.6 5.5 5.9 Ships in coastal and intercoastal traffic 2/ 18.8 33.4 33.0 27.8 35.1 38.0 50 2.7 3.0 2.6 2.0- 2.3 2.2 2.1 Petroleum pipelines y 4.9 14.7 20.5 26.6 33.8 41.6 185 0.7 1.3 1.6 1.9 2.2 2.5 7.8 -Total 692.3 1,129.2 1,251.6 l,105.3 1,533.2 1,690.3 2,371 100.0 100.0 100.0 100.0 100.0 100.0 100.0 US Railroads 1/ 917.5 955.7 988.4 941.3 839.1 45.6 39.8 39.3 38.2 36.6 Motor vehicles 2/ 325.0 421.0 463.0 470.0 474.0 16.2 17.6 18.5 19.0 20.7 Inland water fleet 1/ 238.5 316.1 321.2 338.4 276.0 11.9 13.2 12.8 13.7 12.1 Ships in coastal and intercoastal traffic 340.2 406.8 400.6 391.8 391.8 16.9 17.0 16.0 15.9 17.1 Petroleum pipelines h 188.6 296.7 335.7 325.2 308.5 9.4 12.4 13.4 13.2 13.5 Total 2,009.8 2,396.3 2,508.9 2,466.7 2,289.4 3,100 1/ 100.0 100.0 100.0 100.0 100.0 a. Excluding air freight transport, which is not significant in terms of ton-kilometers. b.212/. The figure for inland waterways does not include traffic on the landlocked Caspian Sea, which is included in coastal shipping. c. Computed from total maritime traffic] lutilizing a Soviet statement that the share of foreign trade traffic in the total is arwl expected to increase from 67 percent in 1958 to 79 percent in 1956 and utilizing similar information for other years 2:11 50X1 d. Revenue traffic for Class I, Class II, and electric railroads and nonrevenue traffic for Class I railroads. Li]]/ This total figure has been ascertained to be the US figure most comparable with Soviet data...5.2/ f. 1/. Including the Great Lakes. g. The figure for 1950 was estimatedd ] and the figure for 1955-57 by the Interstate Commerce Commission. L1/ The figure for 1958 was estimated to have been the same as that for 1957. la. Q2/ i. Estimated on the basis of the 3-percent average annual rate of growth achieved during 1951-57. - 52- S -E -C -R -E -T Declassified in Part- Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S -E -C -R -E -T Table 2 Passenger-Kilometer Performance by Inland Transport in the USSR and the US, by Mode of Transport Li./ Selected Years, 1950-58, and 1965 Plan Billion Passenger-Kilometers Percent of Total 1965 1965 Carrier 1950 1953 1955 1957 1958 Plan 102_ 1221 1955 122L 1221_ 1221?._ Plea USSR Railroad b/ 88.0 118.3 141,4 142.4- '153.4 - 158.4 190 69.2 66.2 65.8 63.8 61.0 57.6 40.5 Automobile E./ 1.7 3.7 5.9 6.8 7.9 8.9 17.3 1.3 2.1 2.7 3.0 3.1 3.2 3.7 Intercity bus d/ 1.4 2.6 5.5 7.2 9.7 12.3 61.5 1.1 1.5 2.6 3.2 3.9 4.5 13.1 Urban 2/ 31.1 46.9 s/ 54.0 58.8 70.5 82.3 145.6 24.4 26.3 25.1 26.3 28.0 29.9 31.1 Air g/ 1.2 2.2 2.9 3.3 4.8 . 7.8 46.5 2.9 1.2 1.4 1.5 1.9 2.8 9.9 Water 13/ 3.9 4.8 5.1 4.9 5.2 5.4 7.9 3.1 . 2.7 2.4 2.2 2.1 2.0 1.7 Total 127.3 178.5 ? 214.8 992_,. 251.5 276.1 468.8 100.0 100.0 100.0 100.0 100.0 100.0 100.0 US Railroad 11 51.2 51.0 45.9 45.3 41.7 3.7 3.2 2.6 2.5 2.2 Automobile 1,168.0 1,400.0 1,569.0 1,632.0 1,704.0 85.1 86.8 88.1 88.3 89.4 Intercity bus I 71.0 83.5 87.1 88.7 78.9 5.2 5.2 4.9 4.8 - 4.1 Urban 1/ 69.0 55.6 46.1 43.8 41.6 5.0 3.4 2.6 2.4 2.2 Air al/ 12.9 22.4 31.9 36.4 40.8 1.0 1.4 1.8 2.0 Water 2/ _2.1 Total ? 1,372.1 1,612.5 846.2 1,907.0 100.0 100.0 100.0 100.0 100.0 USSR as a Percent of US Railroad - 171.9 231.4 308.1 314.3 367.9 Automobile 0.1 0.3 0.4 0.4 0.5 intercity bus 2.0 3.1 6.3 8.1 12.3 Urban 45.1 84.4 117.1 134.2 169.5 Air 9.3 9.8 9.1 9.1 11.8 Total. 9.3 11.1 12.1 12.1 13.2 a. All figures are rounded to the nearest 100 million passenger-kilometers. e. Including urban buses, streetcars, trolley buses, and subways. Figures are estimated from the number of passengers. f. This figure is for 054. h. of passengers and the estimated average length of haul. 713/ J. Estimated by the Bureau of Public Roads I B. Estimated from Department of Commerce data. 81/ 1. Estimated from Department of Commerce data. TO/ a. gv. Including revenue passenger-kilometers only. n. Annual passenger traffic on US waterways has not exceeded 1 billion passenger-kilometers. - 53 - and the maritime portion of the figures for 1965 was derived from the number Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Table 3 Passengers Carried by Inland Transport in the USSR, by Mode of Transport 21 Selected Years, 1950-58, and 1965 Plan Carrier 1950 1955 1958 1965 Plan 1950 1955 1958 1965 Plan Intercity Railroad Bus 4/ Air 2/ Water f./ Total intercity Local and Urban Railroad 2/ Bus 5/ Streetcar g/ Trolleybus g/ Subway g/ Taxi h/ Water 1/ Total local and urban Grand total Million Passengers )2/ Percent of Total Intercity Traffic 209 52 1 11 273 955 1,001 5,186 947 629 160 46 8,924 249 188 3 19 459 1,392 4,294 6,415 1,850 945 600 70 15,566 251 445 8 27 /21 1,583 7,932 8,129 2,778 1,852 1,148 87 23,509 300 2,203 49 38 2,590 76.6 19.0 o.4 4.0 100.0 54.2 34.3 41.0 60.9 0.7 1.1 4.1 3.7 100.0 100.0 11.6 85.0 1.9 1.5 100.0 I,950 22,570 7,026 4,259 2,548 2,365 119 40,837 Percent of Total Local and Urban Traffic 10.7 11.2 58.1 10.6 7.1 1.8 0.5 100.0 8.9 27.6 41.2 11.9 6.1 3.9 0.4 100.0 6.7 33.7 34.6 11.8 7.9 4.9 o.4 100.0 4.8 55.3 17.2 10.4 6.2 5.8 0.3 100.0 2,12T 16 025 ai2.1.1-2 4..3i'2i 1951-55 1956-58 1959-65 Average Annual Rates of Growth 1/ Intercity 11.0 16.8 19.8 Local and urban 11.8 14.7 8.2 Total 11.7 14.8 8.7 a. Excluding passengers carried by automobiles other than taxis. Taxis, however, account for approximately one-half of the passenger-kilometers performed by auto- mobiles. b. All figures are rounded to the nearest million passengers f. The total numbs city traffic). of maritime passengers plus 15 percent of the numbers inland water passengers (which is estimated to be the proportion of the latter in inter- h. Figures for 1950-58 are estimated from taxi-kilometers 91/ and for 1965 from total automobile travel. i. These figures represent 85 percent of the total number of inland water passengers. j. Average annual rates of growth are computed at the compound rate for the stated period, including the terminal years. -51. - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for 1-Release 2013/07/15: CIA-RDP79R01141A001900030601-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Table 4 Indexes of Performance of Inland Transport and Other Economic Indicators in the USSR and the US Selected Years, 1938-65 Economic Indicators 1938 1950 1955 1956 1957 1958 1965 USSR Index of inland freight transport (1950 = 100) 2./ Index of inland freight transport (1958 = 100) Index of industrial production (1950 = 100) .-2/ Index of industrial production (1958 = 100) Index of gross national product (GNP) (1950 = 100) d/ Index of GNP (1958 = 100) Ton-kilometers performed per 1955 US $1,000 of GNP Index of ton-kilometers performed per metric ton of basic production (1950 = 100) 2/ Ton-kilometers performed per metric ton of basic production 2/ Index of ton-kilometers Performed per metric ton of basic production (1938 . 100) 2/ 1/ 100 US 100 100 100 6,351 100 1,020 119 163 166 139 7,478 116 1,182 138 181 183 151 7,585 115, 1,176 137 203 197 160 8,076 123 1,251 146 221 100 212 100 174 100 8,069 123 1,258 146 342 155 180 261 150 8,319 Index of inland freight transport (1950 = 100) a/ Index of inland freight transport (1958 = 100) ? Index of industrial production (1950 = 100) 2/ Index of GNP (1950 = 100) 1/ Index of GNP (1958 . 100) Ton-kilometers performed per 1955 us $1,000 of GNP Index of ton-kilometers performed per metric ton of basic production (1950 . 100) 2/ Ton-kilometers performed per metric ton of basic production 2/ Index of ton-kilometers performed per metric ton of basic production (1938 = 100) 2/ 1/ 100 100 100 100 6,241 100 1,456 129 119 129 124 6,021 112 1,633 145 125 134 126 6,195 113 1,647 146 123 135 128 5,973 112 1,638 146 114 100 125 125 100 5,659 115 1,678 149 149 131 171 137 2/ a. Calculated from data in Table 1, p. 52, above. b. 100/ c. 101/ ....- d. 102/ e. For tons of basic production the 24 most important ores, fuels, agricultural products, and chemicals were used. 103/ f. 104/ -55- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 ? Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Table 5 Railroad Network in the USSR 1950, 195859, and 1965 Plan Route-Kilometers as of the End of Each Year Year Total a/ Electrified Diesel Operated Double Tracked Automatic Block Centralized Traffic Control 1950 116,900 Y 3,042 y 3,43212/ 26,900 2/ 12,300 1/ 197 1/ ,1958 122,80012/ 9,500 12/ 11,100 y 33,700 2/ 22,700 !./ 2,400 1/ 1959 124,000 e 11,600 11/ 14,300 11/ 34,386 .1../ 24,200 11/ 2,900 I/ 1965 Plan 131,800II/ 30,000 ,11/ 70,000 y 41,70011/ 40,700-42,700 1/ 12,500 n2/ a. The operational network of the Ministry of Railroad Transportation only, excluding industrial spurs and sidings and the lines in "temporary" operation (recently constructed but not yet up to operational standards). b. _05/ c. During 1951-55, 4,700 km were built. The length in 1955 was 6,600 km less than the 1960 Plan, and 30 percent of the planned route of about 127,200 km was to be double tracked in the 1960 Plan. 106/ d. e. 1957. 107/ In 1956, 8..76 km were added and in 1957 514 km 108/. In 1958, 157 km more were laid than in 109/ f. 110/ g. 111/ h. 112/ i. 113/ j. 114/ k. 115/ ? 1. 116/ m. 117/ -56- S-E-C-R-E-T DeClassified in 'Part - Sanitized Copy Approved for Release 2013/07/15 : CIA-RDP79R01141A001900030601-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 ce? S -E -C -R -E -T Table 6 Estimated Inventory of Railroad Freight Cars in the USSR Selected Years; 1945-59, and.1965 Plan Year :Inventory as of the Beginning of Each. Year. Total Capacity 12/ Percent Thousand Units 2/ Index (1945 = 100) Million Metric Tons Index (19)-i-5 = 100)- Two-Axle Cars E./ Automatic Brakes 1/ Automatic Couplings 1/ --' 1945 609.1 100 15.8' 100 73.0 71.1 41.5 1952 802.8 132 26.3 166 53.0 79.1 61.5 1958 875.9 144 39.9 253? 30.0 96.3 100.0 1959 889.0 146 42.5 269 27.0 100.0 100.0 1965 Plan 969.7 159 56.2 356 14.0 100.0 100.0 a. These estimates are based on recent Soviet experience, published by a Soviet railroad expert and others, showing that the working inventory represents 75 to 85 percent of the total inventory. 118/ The working inventory was derived from daily carloadings and turnaround time The margin of error on total inventory is plus or minus 5 percent. b. The total inventory times the average-capacity per physical unit. 119/ c. 120/. Interpolations have been made where necessary. d. 121/. -57- S -E -C -R -E -T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Table 7 Estimated Inventory of Mainline Locomotives in the USSR Selected Years, 1946-65 Units Beginning of Year Total Mainline Steam 2/ Diesel12/ Electric 1946 _25,682 25,300 151 23112/ 1951 31,468 30,500 498 470 2/ 1952 32,179 31,022 574 583 1959 35,979 31,680 2,277 2,022 1965 26,343 9,149 .c11 8,752 8,442 2/ a7-7 Figures on retirements of steam loco- motives are estimated to be about 2 percent per year through 1958. Exports beginning in 1959 (principally to Communist China) are considered to be part of steam loco- motive retirements. About 75 percent of the estimate of mainline steam locomotives produced by the European Satellites (except East Germany) are estimated to have been exported to the USSR. No steam locomotives were produced or imported after 1956. b. 123/. These figures are for total production and imports. Retirements are esti- mated to be negligible. The 1959-65 increment is estimated from the average annual rate of increase necessary to attain the planned production rate for 1965. c. 124/. Total production during 1946-50 is added to the 1946 inventory. Imports and retirements are estimated to be negligible. Production data for 1956-58 are pub- lished in several Soviet newspapers and journals. d. It is assumed that the acquisition of an estimated total.of_12,845 electric and diesel electric and diesel locomotives will eliminate the need for about 22,500 steam locomotives, many of which will be good mainline units and may be exported to Com- munist China. e. The 1959-65 increment is estimated from the average annual rate of increase necessary to attain the planned production rate for 1965. The total includes esti- mated imports of AC types of locomotives known to be on order from France and West Germany for use on the Trans-Siberian Railroad. -58- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for 'Release 2013/07/15: CIA-RDP79R01141A001960030601-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S -E -C -R -E -T Table 8 Railroad Labor Force Productivity, and Earnings in the USSR and the US L.a./ 1950-58 and 1965 Plan USSR?' us b/ Productivity Adjusted (Thousand Adjusted Productivity jJ Average Productivity Average Traffic- Railroad (Thousand Annual (Thousand Annual Total Operating Kilometers Labor Force E./ Traffic- Earnings Total Traffic Earnings Employees Employees per Operating Index (Thousand Kilometers Index (Current Index Employees Kilometers Index (Current Index Year (Thousand) (Thousand) Employee) (1950 = 100) Employees) per Employee) (1950 = 100) Rubles) (1950 = 100) (Thousand) per Employee) (1950 = 100) US $) (1950 = 100) 1950 3,014 1,712 403 100 2,013 343 100 . 8,640 loo 1,221 745 100 3,785 4,182 100 1951 3,088 1,765 44o 109 2,063 376 no 9,045 105 1,276 784 105 4,352 110 1952 3,233 1,866 455 113 2,160 393 115 9,152 106 1,227 776 104 115 1953 3,326 1,901 482 120 2,222 412 120 9,128 106 1,206 775 104 4,415 4,560 117 1954 3,421 1,968 501 124 2,285 432 126 9,319 108 1,065 797 107 4,719 120 1955 3,400 1,980 562 139 2,271 490 143 9,319 108 1,058 904 121 125 1956 3,414 1,980 617 153 2,281 536 156 9,422 109 1,042 950 128 5,107 135 1957 3,439 1/ 1,995 2/ 685 2/ 170 2,297 595 173 9,530 5/ 110 986 gi 997 E/ 134 5,434 gj 144 1958 3,443 (1/ 1,997 2/ 731 2/ 181 2,300 635 185 9,735 I/ 113 841 E/ 1,043 gi 140 5,860 9/ 155 1965 Plan 3,587 1/ 2,081 LI/ 980 1/ 243 2,396 851 248 10,710 5/ 124 757 jj 1,296 1/ 174 , 7,608 I/ 201 b. All data for the USSR are for the Ministry of Transportation (MPS) and for the US for Class I railroads. 5()38:1 c. Adjusted for Comparability with the labor force in the US. Employees of the MIS believed to be engaged in functions not performed by US railroads were eliminated: 66.8 percent of total employ- ment of the MFS is believed to be comparable with the railroad labor force in the US in the matter of productivity. d. Operational employees are estimated to constitute about 58 percent of total employment of the MIS, based on the relationship in 1950-56. e. 126/ f. Present Soviet intentions 127/ indicate continued gradual wage increases and decreased hours. Earnings after 1956 are therefore estimated to increase at the 1950-56 rate. g. 128/ h. Derived from statements of planned traffic and productivity. i. Actual performance is estimated to reach the minimum of the planned range. j. Estimated on the assumption that present trends in traffic, productivity, and earnings will continue. Significant changes in government transport policy now under review could have considerable effect on the validity of these estimates, probably in the direction of increased traffic and employment rather than on productivity or average earnings. - 59 - S -E -C -R -E -T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part- Sanitized Copy Approved forRelease2013/07/15 : CIA-RDP79R01141A001900030001-6 0-J1-t.-fl-L-a. Table 9 Volume and Selected Characteristics of Motor Freight Traffic in the USSR Selected Years, 1950-59, and 1965 Plan 1950 1953 1955 1958 1959 1965 Plan Performance by all motor vehicles 2/ (billion ton-kilometers) Performance by common carrier motor vehicles 12/ (billion ton-kilometers) Common carrier performance as a percent of total Tons originated by all motor vehicles 1/ 20.1 0.93 4.6 31.4 2.52 8.o 42.5 9.26 21.8 76.8 18.39 23.9 87.6 21 24.0 146 64 (million metric tons) 1,859.2 3,002.7 3,730.0 6,474.4 7,361.3 10,500 Tons originated by common carrier motor vehicles (million metric tons) 46.4 127.4 452.1 1,145.6 1,302 N.A. Common carrier tons originated as a percent of total 2.5 4.2 12.1 17.7 17.7 Average length of haul for all motor freight/ -(kilometers) 10.8 10.4 11.4 11.9 11.9 14 Average length of haul for noncommon carrier freight (kilometers) 10.6 10.0 10.1 11.0 11.0 N.A. Average length of haul for common carrier freight g/ (kilometers) 20.0 19.8 20.5 16.1 16.1 N. A. 50X1 the figure for 1965 50X1 has been computed from the percent reported. c. .133/ - 6o- ? 1 ? ? ? Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001960030001-6 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001960030001-6 S-E-C-R-E-T Table 10 Length of the Highway Network in the USSR and the US Selected Years, 1950,59, and 1965 Flan Year USSR 2/ (Thousand Kilometers) US 12/ (Thousand Kilometers) USSR as a Percent of US Total Improved 2/ Paved1/ Total Improved 2/ Paved Total Improved Improved Paved 177.3 2,776.0 6.4 2.0 1953 194.2 30.3 3,063.0 1,101.0 6.3 2.8 1955 206.8 41.1 3,211.04 1,196.0 6. 3. 4 1956 214.5 47.1 3,264.0 1,257.0 6.6 3.7 1957 225.7 52.0 N.A, N.A. 1958 235.9 58.5 N.A. N.A. 1959 246.0 2/ 65.0 2/ N A. N.A. 1965 Plan N.A. 158.5 V N.A. N.A. . 142/ c. Totals are for surfaced roads only. In each country, there are at present more than 1 mil- lion km of nonsurfaced roads. d. Surfaced with a water-resistant binding material. e. The 1958 total plus estimated additions in 1959. f. It is estimated that there will have been constructed or reconstructed about 100,000 km of roads which fall into this category. A total of 70,000 km of all-weather roads will be con- structed in the USSR, 145 and 16,000 km of roadways will be reconstructed to higher standards in the RSFSR alone. 14 - 61 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S -E -C -R-E -T Table 11 Estimated Inventory of Motor Vehicles in the USSR 2/ Selected Years, 1950-59, and 1965 Plan Type of Vehicle Thousand Vehicles Percent of Total 1950 1955 1958 1965 1959 Plan 1950 1955 1958 1959 1965 Plan Truck12/ 1,172 2,126 2,815 3,100 4,200 90.3 82.9 81.9 81.5 77.6 Automobile 111 396 555 630 1,000 8.6 15.5 16.2 16.6 18.5 Bus 14 42 65 74 209 1.1 1.6 1.9 1.9 3.9 Total 1,297 2 564 3,435 3,80)4 5,)409 100.0 100.0 100.0 100.0 100.0 Index (1950 = 100) 100 198 265 293 417 1951-55 1956-58 1959-65 Average annual rate of growth 2/ 14.6 10.2 6.7 a. Estimates are for the end of each year and are based on official production figures, with allow- ances for net exports and retirement. Estimates include military vehicles, which accounted for about 18 percent of the total at the end of 1957. b. Including jeeps. c. Average annual rates of growth are computed at the compound rate for the stated period, including the terminal years. - 62 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for 'Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in [Dart - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001960030601-6 S-E-C-R-E-T Table 12 Mainline Petroleum Pipeline Transport in the USSR 1950-59 and 1960 and 1965 Plans 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 Original Plan 1960 Revised Plan 1965 Plan Length of Line As of the End of Each Year 2/ (Thousand Kilometers) 5.4 6.0 6.2 7.1 8.1 10.4 11.6 13.2 14.4 16.7 24.9 12/ 20.9 Eli 43.0d Traffic 2/ Million Tons Originated 15.3 18.4 23.2 29.4 39.7 51.7 65.3 80.9 94.7 111.3 126.4 12/ 126.4 2/ 170.0 121 Billion Ton-Kilometers 4.9 5.5 6.4 7.6 10.2 14.7 20.5 26.6 33.8 41.6 83.0 2/ 65.0 1/ 185.0 1/ Average Distance Pumped (Kilometers) 320 299 276 259 257 284 314 329 357 374 657 514 1,100 1/ Traffic Density (Million Ton-Kilometers per Kilometer of Line) 0.9 0.9 1.0 1.1 1.3 1.4 1.8 2.0 2.3 2.5 3.3 3.1 4.3 b. C. d. e. f. g? h. 1. 3. 150/ 151/ 152/ There is no evidence that the plan for tons originated was altered. 153/ 154/ 155 15 /. The performance plan may very well be revised downward if the original construction plan is not fulfilled. The average distance pumped will not reach the plan figure if the ton-kilometers plan is not fulfilled. -63- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15 : CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Table 13 CommOdity Composition. of Railroad Traffic in the USSR in Ton-Kilometers 1950-58 Commodity 1950 2/ 1951 12/ 1952 12/ 1953 2/ 1954 2/ 1955 2/ 1956 2/ 1957 2/ 1958 2/ Billion Ton-Kilometers Coal and coke 178.2 188 201 211.5 234.7 266.7 303.2 336.4 348.9 Wood, excluding firewood 72.2 84 94 98.5 100.1 119.9 124.1 151.9 178.4 Firewood 4.5 5 5 4.3 4.6 5.2 5.0 5.9 6.8 Petroleum : 52.0 60 68 76.9 84.5 101.6 112.4 131.2 154.0 ' Ferrous metals, including scrap 47.5 57 65 67.5 69.7 75.7 80.2 83.8 90.6 Ore 27.8 33 39 42.3 40.5 45.0 49.2 58.1 59.9 ,,.Mineral construction materials 46.7 53 64 68.2 68.4 82.1 90.0 100.0 113.9 Grain and flour 30.9 37 37 ? 45.1 53.1 55.1 80.1 95._6 80.8 -Other 142.5 160 166 183.7 201.2 219.6 234.9 249.9 268.7 Total 602.3 677.3 741.3 798.0 856.8 970.9 1,079.1 1,212.8 1 302 o Percent of Total, Coal and coke 29 28 27 27 27 27 28 27 26 Wood, excluding firewood 12 12 13 12 12 12 12 13 14 Firewood . I 1 1 - 1 1 1 - 1 Negl.- 1-- Petroleum 9 9 9 9 lo 10 lo 11 12 Ferrous metals, including scrap 8 8 9 8 8 8 7 - 7 7 Ore 5 5- 5" 5 5 5 5 5 5 Mineral construction materials 8 8 9 9 8 8 8 8 9 Grain and flour ' 5 '5 5 6 6 6 - 7 8 6 Other 23 24 22 23 23 23 22 21 20 Total 100 100 100 100 100 100 100 100 100 a. 157/ b. 15/ c. 159/ - 62+ - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001960030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001960030001-6 S7E-C-R-E-T Table 14 Commodity Composition of Railroad Traffic in the USSR in Tons Originated 1950-58 and 1965 Plan Commodity 1950 El 1951 1)/ 1952 I/ 1953 2/ 1954 2/ 1955 2/ Million Tons Originated 1956 a/ 1957 2/ 1958 9/ 1965 Plan Coal and coke 266.1 283 304 322.1 349.3 389.0 422.4 454.1 478.8 N.A. Coal,'excluding coke (457.4 d/) 552 e/ Wood, excluding firewood .72.4 77 82 82.6 84.3 . 94.1 96.0 110.6 ..121.5' 158 1./ Firewood 18.9 17 ' 17 16.2 16.0 16.4 15.3 16.7 18.1 N.A. Petroleum 43.2 48 55 , 62.3 69.9 77.6 86.5 99.0 112.5 210 e/ Ferrousi metala,-including scrap 43.3 50 57 ? 61.3- 64.6 71.8. 77.2 81.8 88.3 N.A. Ferrous metals, excluding scrap (66.8 g/) 110 e/ Ore 48.4 56 66 72.4 75,3 83.8 89.8 100.1 108.1 203 ./ IMineral construction materials 157.5 169 - 194 207.9 209.8 245.6 263.0 282.2 324.2 500 "e/ Grain and flour 38.8 43 . 44 47.5 53.2 58.o 67.8 71.9 71:5 N.A. Other 145.7 166 , 178 195.1 209.0 230.7 253.0 271.3 293,9 N.A, , .._ Total 834.3 909,2 997:0 1,067.4 1,131.14 1,267.0 1,371.0 1,487.7 1,616.9 2,372 e/ Percent of Total Coal and coke 32 31, ' 30 30 '31 31 . 31 31 30 N.A. Coal, excluding coke (28) ? 23 Wood, excluding firewood 9 8' 8 8 ? 7' 7 7 7 8 7 .Firewood . - , 2 2 2 2 1 1 ? 1 1 1 N.A. Petroleum. 5 5 6 6. 6 . 6 6 7 7 - 9 Ferrous metals, including scrap 5 6 6' - 6- 6 6 6 5 5 N.A. Ferrous metals, excluding scrap (4) 5 Ore -6 6 - 7 , - 7 ? 7 7 7 . 7 ' '9 Mineral construction materials19 19 19 19 . 19 19_ 19 19 20 21 Grain and flour 5 5 4 4 5 5 5 5 4 N.A. Other . ., 17 . 18 18 18 18 18 18 18 18 N.A. Total 100 100 100 100 100 100 100 100 100 b. 161/ d. Derived by subtracting coke shipments of 21.4-million metric tons 163/ .from the total for coal and coke e. 165/ f. 30 percent above the level of 1958. 166/ g. 167/ - 65 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Table 15 Average Length of Haul per Metric Ton of Railroad Freight in the USSR, by Principal Commodity 1950-58 Kilometers Commodity 1950 2/ 1951 b/ 1952 b/ 1953 2/ 1954 b/ 1955 a/ 1956 a/ 1957 a/ 1958 a/ Coal and coke 670 665 661 657 672 686 718 741 729 Wood4 excluding firewood 998 1,084 1,148 1,193 1,187 1,274 1,293 1,373 1,469 Firewood 241 263 273 266 290 314 329 352 374 Petroleum 1,205 1,253 1,231 1,235 1,210 1,309 1,298 1,326 1,369 Ferrous metals, including scrap1,095 1;138 1,147 1;101 1,078 1,055 1,039 1,025 1,026 Ore ,574 587 588 585 538 537 548 580 554 Mineral construction materials 296 314 329 328 326 334 342 354 352 Grain and flour 795 _873 -829 949 997 950 1,182 1,329 1,129 Other 978 964 933 942 963 952 928 921 914 All freight 722 745 744 748 757 766 787 815 805 a. 168/ b. -1741W -66- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for 'Release 201'3/07/15' : CIA-RDP79R01141A001960030601-6 Declassified in Part - Sanitized Copy Approved for Release 2013%07/15 CIA-RDP79R01141A001900030061-6 Table 16 Railroad Freight Traffic in the USSR, by Economic Region 2/ 1940, 1950, and 1955 Tons Originated Tons Terminated Economic Region 1940 1950 1955 1940 1950 1955 Million Metric Tons Percent of Total Million Metric Tons Percent of Total Million Metric Tons Percent of Total Million Metric Tons Percent of Total Million Metric Tons Percent of Total Million Metric Tons Percent of Total Ia North 11.2 1.9 24.9 3.0 39.4 3.1 7.2 1.2 12.6 1.5 21.4 1.7 Ib Northwest 33.1 5.6 29.8 3.6 43.5 3.4 45.1 7.7 38.7 4.6 59.8 4.7 ha Baltic 17.4 2.1 20.7 1.6 17.4 2.1 39.0 3.1 lib Belorussia 15.0 2.5 17.7 2.1 18.6 1.5 20.0 3.4 17.1 2.1 27.8 2.2 III South 201.1 33.9 231.1 27.7 351.6 27.8 167.4 28.4 203.5 24.4 318.0 25.0 IV Southeast 37.9 6.4 49.9 6.0 70.5 5.6 26.9 4.6 38.8 4.6 53.0 4.2 V Transcaucasus 14.3 2.4 17.2 2.1 29.2 2.3 16.0 2.7 21.8 2.6 33.7 2.6 VI Volga 20.8 3.5 30.5 3.7 57.2 4.5 21.9 3.7 38.9 4.7 57.7 4.5 VII Central 95.8 16.2 131.7 15.8 180.6 14:3 132.3 22.5 171.6 20.6 242.1 19.0 Total for the western regions 429.2 72;4 550.1 65.9 811.4 64.1 436.8 74.2 560.4 67.2 852.4 66.9 VIII Urals 56.0 9.4 114.9 13.8 185.2 14.6 57.3 9.7 124.2 14.9 184.5 14.5 IX West Siberia 39.5 6.7 65.3 7.8 103.4 8.2 27.6 4.7 50.5 6.1 80.8 6.3 Xa Kazakhstan 15.5 2.6 35.2 . 4.2 58.0 4.6 12.2 2.1 28.0 3.4 50.3 3.9 Xb Central Asia 12.9 2.2 17.7 2.1 25.8 - 2.0 13.8 2.3 20,9 2.5 31.3 2.5 XI East Siberia 18.0 3,0 28.3 3.4 49.6 3.9 15.5 2.6 23.8 2.9 38.9 3.1 XII Far East 21.6 3.6 23.0: 2.8 32.3 2.6 25.5 4.3 26.3 3.2 35.9 2.8 Total for the eastern regions, 163.5 27.6 284.4 34.1 454.3 35.9 151.9 25.8 273.8 32.8 421.6 33.1 Total 592.7 100.0 834.5 100.0 1,265.6 100.0 588.7 100.0 834.1 100.0 1,2714.0 100.0 a. 170/. Totals in this table differ slightly from those given in Table 17, p. 68, below, Because of rounding, components may not add to the totals sho..50X1 bUX1 - 67 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Table 17 Tons Originated by Inland Transport in the .USSR, by Mode of Transport. Selected Years, 1950-59, and 1965 Plan Carrier Million Metric Tons Percent of Increase 50X1 50X1 bUA"I ow\ i 50X1 1950 1955 1956 1957 1958 1959 1965 Plan 1950-58 1958-65 , Railroad ./' . . Motor vehicle 1/ Inland water fleet c/. Ships in coastal and .. intercoastal traffic d/ Petroleum pipeline Total Railroad Motor vehicle Inland water fleet Ships in coastal and intercoastal traffic d/ Petroleum pipeline Total 834.3 1,859.2 91.8 25.0 15.3 2,825.6 1,267.0 1,371.0 1,487.7 1,616.9 1,763.8 2,372 93.8 3,730.0 4,200.9 5,216.4 6,474.4 7,361.3 10,500 248.2 139.5 147.1 159.2 178.3 192.2 268 94.2 42.9 45.9 48:4 49.4 49.7 69 97.6 51.7 65.3 80.9 94.7 111.3 170 519.0 5,231.1 5,830.2 6,992.6 8,11.13.7 9,478.3 13,379 197.8 46.7 62.2 50.3 39.7 79.5 59.0 Percent of Total 29-5 65.9 3.2 0.9. 0.5 100.0 24.2 23.5 21.3 19.2 18.6 17.7 71.3 72.1 74.5 77.0 77.7 78.5 . 2.7 2.5 2.3 2.1 2.0 2.0 .0.8 0.8 0.7. 0.6 0.5 0.5 1.0 1.1 1.2 1.1 1.2 1.3 100.0 100.0 100.0 100.0 100.0 100.0 a. Figures for 1965 from Table 14; p.-65,'above of C. The figure for 1965 was planned to be about 50 percent above the revel of 1958. 177/ d. Estimated. the 1965 Plan figure is 70.5 percent above the level 1958. 179/ The amount of coastal and intercoastal traffic in relationship to total maritime traffic was estimated - 68 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15 CIA-RDP79R01141A001905030001-6 1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Table 18 Distribution of Total River Cargoes in the USSR, by River Basin 1955 River Basin a/ Tons Originated (Million Metric Tons) ? Percent of Total Cargoes, by Type Percent of Total Basin Cargo USSR b/ Total 139.1 .2/ 100.0 100.0 Petroleum 14.4 100.0 10.4 Dry cargo 68.5 100.0 49.2 Rafted timber 56.2 100.0 4o.4 Central Basin d/ Total 82.8 59.5 100.0 Petroleum 13.0 90.3 15.7 Dry cargo 41.1 60.0 49.6 Rafted timber . 28.7 .51.1 34.7 Northwestern Basin d/ Total 14.2 10.2 100.0 , Petroleum Negl. Negl. Negl. Dry cargo 7.5 10.9 52.8 Rafted timber 6.7 11.9 47.2 Northern Basin d/ Total '17.1 12.3 100.0 Petroleum 0.1 0.7 0.6 Dry cargo 4.1 6.0 24.0 Rafted timber 12.9 23.0 75.4 Eastern Basin d/ Total 18.0 100.0 Petroleum .25.0 1.3 9.0 5.2 Dry cargo 15.8 , 23.1 63.2 Rafted timber 7.9 14.0 31.6 a. Major waterways located in individual basins are as follows: (1) Central Basin: the Volga, Kama, Belaya, Moscow, and Oka Rivers and the Moscow-Volga and Volga-Don Canals. (2) Northwestern Basin: the Neva, Svir', and Sheksna Rivers and the Ladoga, Mariinskiy, and Stalin Canals. (3) Northern Basin: :the Severnaya Dvina, Pechora, Sukhona, and Vychegda Rivers. (4) Eastern Basin: the Ob', Irtysh, Yenisey, Angara, Lena, and Mur Rivers. b. 181/ c. This figure differs from that given in Table 17, p. 68; above This figure is being retained because of the breakdown 17 .type of cargo. d. Percentages were derived from a table and were applied to official totals. ? - 69 - S-E-C-R-E-T 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S- E- C-R-E-T Table 19 Performance of River Transport in the USSR Selected Years, 1945-58, and 1965 Plan 1945 21* 1950 21 1955 2/ 1958 b/ 1965 Plan c/ Petroleum Billion ton-kilometers 6.3 12.0 14.3 15.3 23.0 Million metric tons - 5.5 11.9 14.4 16.2 24.5 Average length of haul (kilometers) 1,145.5 1,008.4 993.1 944.4 938.8 Percent of total cargo 15.0 13.0 10.4 9.1 9.2 Timber in rafts Billion ton-kilometers 5.1 17.2 23.9 30.0 30.0 Million metric tons 15.9 42.4 56.2 68.4 78.5 Average length of haul (kilometers) 320.8 405.7 425.3 438.6 382.2 Percent of total cargo 43.4 46.3 40.4 38.4 29.3 Dry cargo Billion ton- kilometers 7.2 16.7 29.2 40.2 87.0 Million metric tons 15.2 37.2 68.5 93.7 164.5 Average length of haul (kilometers) 473.7 448.9 426.3 429.0 528.9 Percent of total cargo 41.5 40.7 49.2 52.6 61.5 Total freight performance Billion ton-kilometers 18.6 45.9 67.4 85.5 d/ 140.0 e/ Million metric tons 36.6 91.5 139.1 178.3 TV 267.5 e/ Average length of haul (kilometers) 508.2 501.6 484.5 479.5 523.4 Percent of total cargo 100.0 100.0 100.0 100.0 100.0 Footnotes for Table 19 follow on p. 71. - 70- S- E- C-R- E- T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001906030061-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15 : CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Table 19 Performance of River Transport in the USSR Selected Years, 1945-58, and 1965 Plan (Continued) 1945 2/ Total passenger performance 1950 2/ 1955 2/ 195812/ 1965 Plan Si Billion passenger-kilometers 2.3 2.7 3.6 4.o 1/ 5.5 Million passengers 38.5 53.6 82.4 102.2 d/ 140 Average length of trip (kilometers) 59.7 50.4 43.7 39.1 39.3 a. 183/. Data for total ton-kilometers and metric tons originated in this table differ slightly from those shown in Tables 1 and 17 (pp. 52 and 68, respectively, above) because of a difference in coverage. These data were published before the Ministry of the River Fleet, RSFSR, took over some transport organizations not included in common carrier river trans- port before 1957. The later data are not used here, because a breakdown is not available. b. 184/. for all figures except total freight and passenger traffic (for which see footnote d). Indi- vidual breakdowns are based on percentage increases above the level of 1955 and have been adjusted to figures for total freight traffic (see footnote d), which are absolutes. c. 185/.? for all figures except freight traffic (for which see footnote e). Individual breakdowns are based on percentage increases above the level of 1958 on which absolute figures have not been published, except as in footnote e. The figures have been adjusted to correspond with increases scheduled for total freight traffic (see foot- note e). d. 186/ e. 1447/ - 71 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Table 20 Average Freight Car Performance of Railroads in the USSR 2/ 1950-58 and 1965 Flan Year Average Freight Car Trip Average Turnaround Time (Days) Average Kilometers Per Day Kilometers Percent Empty Loaded Empty Total 1950 801 296 1,097 27.0 7.49 146.4 1951 826 308 1,134 27.2 7.13 159.0 1952 818 317 1,135 27.9 6.87 165.2 1953 825 316 1,141 27.7 6.64 171.8 1954 838 320 1,158 27.6 6.68 173.3 1955 844 328 1,172 28.0 6.23 188.2 1956 868 338 1,206 28.0 6.31 191.2 1957 896 366 1,262 29.0 6.12 206.4 1958 893 369 1,262 29.2 5.83 216.6 1965 Plan 5.33 a. 188/ - 72- S-E-C-R-E-T _ Declassified in Part - Sanitized Copy Approved for Release 2013/07/15 CIA-RDP79R01141A001906030061-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Table 21 Average Freight Train Performance of Railroads in the USSR a/ 1950-58 and 1965 Plan Year Gross Ton-Kilometers per Freight Train-Hour Average Weight (Metric Tons) Average Speed (Kilometers per Hour) Excluding Stops Including Stops Gross Net 1950 28,740 1,430 815 33.8 20.1 1951 32,520 1,14.78 839 34.5 22.0 1952 35,1440 1,521 859 34.9 23.3 1953 37,110 1,579 894 35.0 23.5 1954 38,010 1,660 936 35.2 22.9 1955 43,420 1,758 1,002 37.1 24.7 1956 11.5,14.10 1,831 1,052 37.6 24.8- 1957 48,130 1,880 1,100 37.8 25.6 1958 52,220 1,963 N.A. N.A. 26.6 1965 Plan 1+00 2,400 N.A. N.A. 31.0 a. 189/ - 73 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Table 22 Profits, Revenues, and Costs of Railroad Operations in the USSR 1940, 1950-58, and 1959 and 1965 Plans (1) (2) (3) (4). (5) (6) (7) (8) Gross Operating Gross Operating Total Profit- Operating Profit Revenue Operating Revenue Operating Cost Operating Cost Total (Million, per Traffic-Kilometer 12/ (Million per Traffic-Kilometer c/ (Million per Traffic-Kilometer Traffic-Kilometers d/ Year Current Rubles) Operating Ratio 5/ (Current Kopecks) Current Rubles) (Current Kopecks)- Current Rubles) (Current Kopecks) (Billion) - 1940 5,147 e/ 72.5 1.002 18,692 f/ 3.644 13,545 g/ 2.642 11/ 513.0 1950 6,342 i/ 85.2 1951 8,708 i/ 81.3 1952 7,678 i/ 83.8 1953 9,496 i/ 81.2 1954 11,918 it 78.2 1955 14,374 I/ 75.2 1956 14,346 I/ 75.9 1957 16,813 T./ 74.1 1958 19,121 I./ 71.9 1959 Plan 21,919 i/ 69.4 1965 Plan 41,963 i/ 56.2 0.935 42,711 1/ 1.124 46,625 .,1/ 0.906 47,316 LI/ 1.035 50,423 .1/ 1.209 54,761 A/ 1.292 58,065 A/ 1.174 59,603 f/ 1.231 64,849?! 1.309 68,030 // 1.435 71,730 r/ 2.057 95,819 t/ 6.187 6.010 5.575 5.503 5.554 5.220 4.879 4.747 4.658 4.697 36,369 A/ 37,917 j/ 39,638 40,927 A/ 42,843 ra 43,691 1/ 45,257 m/ 48,036 E/ 4E3,909 E/ 49,811 m/ 4.697 h/ 53,856 m/ 5.252 II/ 4.886 h/ 4.669 1-1/ 4.468 12/ 4.345 1;/ 3.928 E/ 3.705 n/ 3.516 o/ 3.349 3.262 s/ 690:3 775.8 848.7 916.3 985.9 1,112.3 1,221.5 1,366.2 1,460.4 1,527.0 2.640 v/ 2,040 a. Column (6) divided by Column (4). b. Column (7) subtracted from Column (5). c. Column (4) divided by Column (8) unless otherwise indicated. d. See Tables 1 and 2, pi). 52 and 53, respectively, above, except for 1940, 1951, 1952, and 1954] e. 191/ f. Column (1) plus Column (6). g. Column (1) divided by profitability] h. Column (6) divided by Column (8). The figure for 1940 also is given as 2.616 and the figure for 1955 as 3.932. 193/ Derived figures, which are not sufficiently different to affect the time series, have been used to maintain internal consistency. i. Column (6) subtracted from Column (4). i. 194/ k. 195/ 1. Column (6) multiplied by profitability m. Column (7) multiplied by Column (8). n' 152/ o. 1.9-8/. A figure of 3.480, which_is for the first 9 months of operations only, has erroneously been carried in the more official sources. 192/ p. This figure is 83.5 percent of total profits 83.5 percent is estimated to be the portion of total profits derived fro. operations. On the basis of pre- vious established relationships between total profits and operating profits. q. 201/ r. 202/. An increase of 3.7 billion rubles is planned. a. 203/. A decrease of 2.6 percent is planned. t. Column (5) multiplied by Column (8). u. In order to obtain estimates of profits and revenues, unit revenue for 1965 is assumed to be the sage as for 1959. v. 204/. carries out. the figure to three places beyond the decimal point (2.612), which does not seem warranted considering the ranges given in other related control data7-- -74- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15 CIA-RDP79R01141A001906-030061-6 _ _ Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001960030001-6 S-E-C-R-E-T Table 23 Average Revenue Rates for Selected Commodities as a Percent of Unit Costs of Railroad Freight Traffic in the USSR Selected Years, 1949-56 Percent Commodity 1949 2/ 1950 2/ 1952 2/ 1955 ID/ 1956 2/ Coal 105 96 91 99 115 Coke 95 92 82 LA. 88 Iron ore 94 91 92 98 103 Earth, sand, and clay 94 76 82 N.A. 88 Mineral fertilizer 105 92 65 N.A. 65 Ferrous metals 94 96 95 N.A. 120 Grain 117 123 110 N.A. 111 Cotton 92 119 124 105 120 Sugar 300 263 230 218 243 Shoes 286 N.A. N.A. 230 N.A. Textiles 385 N.A. N.A. 257 N.A. a. b. c. 206/ 207/ 208/ -75- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C--R-E-T. Table 24 Profits, Revenues, and Costs of Railroad Passenger Operations in the USSR a/ 1940, 1950-58, and 1965 Plan Year (i) 'Gross Operating Profit 12/ (Million Current Rubles) (2) Operating Ratio 2/ (3) Operating Profit per Passenger- Kilometer d/ (Current Kopecks) (4) Gross Operating Revenue 2/ Current Rubles) (5) Operating Revenue per Passenger- Kilometer 1/ (Current Kopecks) (6) (7) Total Operating Cost Operating Cost .5/ -per Passenger- ' (Million Kilometer h/ Current Rubles) (Current Kopecks) (8) Total Passenger- Kilometers 1/ (Billion) 1940 1950 1951 1952 1953 1954 1955 1956 1957 1958 1965 Plan 2,674 3,174 3,365 3,749 3,576 3,086 3,801 3,749 4,467 5,216 9,895 52.0 69.1 68.8 67.4 70.5 74.8 71.0 71.6 69.3 67.4 53.7 2.729 3.60710,265 3.416 3.491 3.023 2.390 2.688 2.633 2.912 3.293 5.208 5 ,570 a 12,264 13,104 1.341F2 15,976 21,386 5.684 11.665 10.933 10.704 10.258 9.500 9.267 9.286 9.480 10.086 11.256 2,896 7,091 7,4o4 7,747 8,559 9,178 9,303 9,474 10,075 10,760 11,491 2.955 8.058 7.517 7.213 7.235 7.109 6.579 6.653 6.568 6.793 6.048 98.0 88.0 98.5 107.4 118.3 129.1 ltt:14 153.4 158.4 190 a. Revenues and costs of baggage and mail service are included in revenues and costs of passenger service, but there is no allowance for these items in total passenger-kilometers. The resulting inflation is not sufficient to alter the time series. b. Column (6) subtracted from Column (4). c. Column (6) divided by Column (4), - d. Column (1) divided by Column (8). e. Column (1) plus Column (6). f. Column (4) divided by Column (8). g. Column (7) multiplied by Column (8). h. Column (6) divided by Column (8). i. See Table 2, p. 53, above, except for 1940, 1951, 1952, and 1954 - 76 - S-E-C-R-E-T ?Declrfie. inrt*Pa - Sanitized Copy Approved for Release 2013/07/1 : CIA-RDP79R01141A0019000300 assd 0176 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Table 25 Profits, Revenues, And Costs of Railroad Freight Operations in the USSR 1940, 1950-58, and 1965 Plan Year (1) Gross Operating Profit a/ (Million Current Rubles) (2) Operating Ratio b (3) Operating Profit per Ton-Kilometer c/ (Current Kopecks)? (4) Gross Operating Revenue d/ (Million Current Rubles) (5) Operating Revenue per Ton-Kilometer e/ (Current Kopecks)? (6) Total Operating Cost f/ (Million ? Current Rubles) (7) Operating Cost per Ton-Kilometer c/ (Current Kopecks)? (8) Total Ton-Kilometers 5/ (Billion) 1940 2,473 81.2 0.596 13,122 3.162 10,649 2.566 415.0 1950 3,168 90.2 0.526 32,446 5.387 29,278 4.861 602.3 1951 5,344 85.1 0.789 35,856 5.294 30,512 4.5o5 677.3 1952 3,929 89.0 0.530 35,820 4.832 31,891 4.302 741.3 1953 5,921 84.5 0.742 38,288 4.798 32,367 4.056 798.0 1954 8,833 79.2 1.031 42,497 4.960 33,664 3.929 856.8 1955 10,573 76.5 1.089 44,962 4.631 34,389 3.542 970.9 1956 10,597 77.2 0.982 46,380 4.298 35,783 3.316 1,079.1 1957 12,346 75.5 1.018 50,307 4.148 h/ 37,961 3.130 i/ 1,212.8 1958 13,905 73.3 1.068 52,054 3.998 .]/ 38,149 2.930 k/ 1,302.0 1965 Plan 31,598 57.3 1.708 73,963 3.998 1/ 42,365 2.290 mi 1,850 a.ColumactedfromColumn4). b. Column (6) divided by Column (4). c. Column divided by Column (8). d. Column 5 multiplied by Column (8). e. Source 210/ unless otherwise indicated. f. Column 7 multiplied by Column (8). g. See Table 1, p. 52, above, except for 1940, 1951, 1952, and 19511. h. 212/ ' i. Source 213/ j. Estimated decrease k. Estimated decrease 1. In order to obtain m. Estimated decrease of 0.15 kopeck based on the actual decrease per traffic kilometer. of 0.2 kopeck based on the actual decrease per traffic kilometer. estimates of profits and revenues, the unit revenue for 1965 is assumed to be the same as for 1959. of 0.64 kopeck based on the planned decrease per traffic kilometer. -77- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S- E- C-R-E-T Table 26 Profits and Budget Transactions of the Ministry of Railroad Transportation of the USSR 1950-59 and 1965 Plan Million Current Rubles Year (1) (2) Profits (3) (4) Payments , to the State Budget Gross Operating 2/ Other b/ Total 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1965 Plan 6,342 8,708 7,678 9,496 11,918 14,374 14,346 16,813 19,121 21,562 41,494 1,277 c/ 1,533 c/ 1,882 -a/ 1,069 Cl 1,047 'a/ 2,305 Cl 1,442 Z./ 3,387 IV 3,779 h/ 3,938 h/ 7,322 m/ 7,619 d/ 10,241 d/ 9,560 7,17 10,565 d/ 12,965 'a/ 16,679-d/ 15,788 .J.../ 20,200 ay 22,900 ay 25,5001/ 48,816 a/ . N.A. 6,365 f/ 6,276 7/ 10,841 7/10,478 12,285 7/ 15,722 7/ 15,4002V 17,200 .1/ 19,000 ..j/ N.A. N.A. (5) (6) Budget Transactions Appropriations from the State Budget Net Surplus or Deficit N.A. -6,200 e/ 6,924 f/ -2,559 7/ 8,428 7/ -2,152 0 7/ +363 7y 10,191 7/ +2,o94 0 9,384 7/ +6,338 T/ 8,500 78./ +6,900 / +9,000 1/ ';',,:gg IV/ +9,800 i/ N.A. - +12,2001/ N.A. +22,000 n/ a. See Table 22, p. 74, above. b. Other profits refer to profits resulting from enterprises such as stations and maintenance organizations. C. 214/ d. Column (1) plus Column (2). e. 215/ f. TZ/. g. h. Column (1) subtracted from Column (3). i. 219/ j. 220/. The figure for 1958 is a plan figure. k. Column (6) subtracted from Column (4). 1. 221/ m. Based on a continuation of the present relationship n. I Ithere will be a net surplus yields a figure of 22 billion for 1965. of the Ministry of Railroad Transportation that are not directly engaged in transport, between Columns (1) and (3). of 121 billion rubles during 1959-65. A straight-line increase resulting in this total - 78 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Table 27 Profits, Revenues, and Costs of Inland Water Transport Qperations in the USSR a/ 1950-59 and 1963 Plan (1) (2) (3) (4) (5) (6) (7) (8) ? Year Gross Operating Profit or Deficit (Million Current Rubles) Operating Ratio b/ Gross Operating Revenue (Million Current Rubles) Operating Revenue per Traffic-Kilometer (Current Kopecks) Total Operating Cost Cl (Million Current Rubles) Operating Cost per Traffic-Kilometer (Current Kopecks) Operating Cost per Traffic-Kilometer as a Percent of Railroad Operating Cost, per Traffic-Kilometer d/ Total Traffic-Kilometers (Billion) 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1965 Plan -63 f/ Deficit _j/ Deficit Deficit 1/ +5 f/ +143 7/ N.A. +136 0/ +114 N.A. N.A. 103.2 99.7 94.8 2/ N.A. 95.1 1,944 g/ N.A. N.A. N.A. 2,59i/ 2,742i/ N.A. 2,7)491/ N.A. N.A. N.A. 4.o h/ N.A. N.A. N.A. 3.87 m/ 3.86 Ei N.A. 3.44 m/ N.A. N.A. N.A. 2,007 2,160 2,213 2,451 2,544 2,599 2,513 2,613 2,619 2,970 3,507 4.13 1/ 3.97 I/ 3.64 k/ 3.94 V 3.861/ 3.66 71 3.)l1/ 3.28 1/ 3.15 I/ 3.04 E/ 2.41 s/ 78.6 81.3 78.0 88.2 88.8 93.2 92.0 93.3 94.1 93.2 91.3 48.6 54.4 60.8 62.2 65.9 71.0 73.7 79.9 89,5 97.7 145.5 e/ - a. Including common carriers only. b. Column (5) divided by Column (3). c. Column (6) multiplied by Column (8). d. Column (6) divided by Column (7) in Table 22, p. 74, above'. f. Column (3) minus Column (5). g. Column (4) multiplied by Column (8). h. 225/ j. The magnitude of the deficits for these years is unknown. k. Column (7) multiplied by Column (7) in Table 22, 1. Column (1) plus Column (5). m. Column (3) divided by Column (8). n. 227/ o. p. 229/. Cost in 1958 decreased by 14 percent from 1955. The figure for 1957 is interpolated. q. 230/. Estimated from data for the first 9 months of operations. r. 231/. Plan figure. s. 232/. Plan figure. -79- S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 ? Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E=C-R-ET Table 28 Estimated State Budget and Nonbudget Allocations for Transport and Communications in the USSR a/ 1950-51, 1956-57, 1952-55 Plan, and 1958-59 Plan Year , State Budget Allocations Nonbudget Allocations Total Allocations Billion Current Rubles Percent of Total Allocated to the National Economy Billion Current Rubles Percent of Total Allocated to the National Economy Billion Current Rubles Percent of Total Allocated to the National Economy ,1950 1551 1952 Plan'. 1953 Plan 1954 Plan .1955 Plan 1956 1957 1958 Plan 1959 Plan 15.7 b/ 11.9 c/ 14.3 .zy 17.4 TV 21.5 -01./ 19.5 21.6b/ 18.8 13/ 14.4 IT,/ 20.8 7/ 9-9 6.7 8.0 9.6 10.1 8.4 8.8 7-3 5.6 6.7 17.5 c/ 20.2 -/ 19.7 -/ 20.0 c/ 17.3 -C/ 17.5 c/ 18.8 N.A. 17.8 e/ 27.2 7/ 43.o 23.3 22.7 20.4 15.6 14.6 17.1 N.A. 11.4 15.5 33.2 32.1 34.0 37.4 38.8 37.0 4o.4 N.A. 32.2 48.o 16.7 12.1 12.8 13.4 12.0 10.5 11.4 N.A. 7.8 9-9 a. Communications have generally taken from 3 to 5 percent of the total allocated to transport and -communications; b. 233/ c. d. 235/ -2-7/ e. f. 237/ - 8o- S-E-C-R-E-T Dediassified in Part- Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001960030601-6 S- E- C- R-E-T Table 29 Estimated Capital Investment In the National Economy, Transport and Communications, and Railroad Transport in. the USSR, by Plan Period a/ ? First Five Year Plan b/ (1928-32)- Second Five Year Plan b/ (1933-37)- Third Five Year Plan b/ (193842)- Fourth Five Year Plan b (1946-50)- Fifth Five Year Plan b/ (1951-55) 1956-57 I.)/ 1952-58 2/ Seven Year Plan Cl (1959Z5) Capital investment in the national economy (Billion Current Rubles) Capital investment in the transport and communications Sector (Billion Current Rubles) Percent invested in the transport and 'communications sector Capital investment in railroad transport. (Billion Current Rubles) Percent of total investment invested in pailroad transport Percent of transport and communications investment invested in railroad transport 64.9 d/ 12.1 d/ 18.6 d/ 8.2 e/ 12.7g/ . 67.8 147.6 d/ 31.8 d/ 21.5 d/ 21.4 e/ 145 g/ 67.3 145.3 d/ 29.6 d/ 20.4 d/ 20.6 e/ 14.2 z/ 69.6 338.7 d/ 48.1 d/ 14.2 d/ 35.2 e/ 10.4 E/ 73.2 654.4 d/ 66.0 d/ 10.1 ci/ 49.1 e/ 7.5 g/ 74.4 h/ 396.2 d/ 358 d/ 9.0 a/ 22.0 1/ 5.6 61.5 h/ 997.0 108.1 10.8 60.0 6.0 55.5 h/ 1,955 211.5 10.8 112.5 5.8 53.2 h/ a. Communications have generally taken from 3 to 5 percent of the total allocated to transport and communications. b. Including both centralized and noncentralized investment. c. 238/. Including centralized investment only. d. 2'RQ/ ? e. Data for 1951-55 differ from data in Table 30, p. 82, below. The reason for this difference is not evident .f. See Table 31, p. 83, below. g. 241/ h. The inconsistenCy between the percentages for 1951-57 and 1952-58 results from the latter figure not including noncentralized investment, which is relatively high for railroad transport. - 81- S- E- C-R- E- T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 anvl '50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15 : CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Table 30 Capital Inputs of Railroad Transport in the USSR 1950-59 and 1965 Plan Year (1) Total Retained Profits (Billion Current Rubles) (2) Total Appropriation from the State a/ Budget b/ (Billion Current Rubles) (3) New Financial Inputs c/ (Billion Current Rubles) (4) Depreciation Charges d/ (Billion Current Rubles) (5) Total Available Capital e/ (Billion Current Rubles) (6) (7) Estimated Capital Investment Percent of Investment (Billion in the National Current Rubles) Economy 1950 1951 1952 1953 1954 1955 1956 1957 1958 1959 1965 Plan 3.9 3.3 -o.3 0.7 1.0 o.4 3.0 3.9 N.A. N.A. 8.9 8.4 10.5 10.2 9.4 8.5 8.2 9.2 N.A. N.A. 13.8 12.8 11.7 10.2 10.9 10.4 8.9 11.2 13.1 13.3 ?j/ 26.8 5.1 5.0 6.o 6.5 6.9 7.4 8.1 8.8 9.3 N.A. 13.9 18.9 17.8 17.7 16.7 17.8 17.8 , 17.0 20.0 22.4 N.A. 40.7 12.2 f/ 11.5 11.4 _g/ 10.8 z/ 11.5 EV 11.5 _EV 10.9 0 11.1 IV 12.81/ 26..3 f/ N.A. Average 7.5 5.8 5.8 6.3 6.0 N.A. a. Column subtracted from Column (3) in Table 26, p. 76, above. b. See Table 26. c. Column (1) plus Column (2) except for 1950, which is Column (3) in Table 26 plus Column (6) in Table 26. d. See Table 32, p. 84, below. e. -Column '(3) plus Column (4). f. Estimated on the basis of the relationship between total available capital and capital investment established in footnote g. 242/. A total of 56.7 billion rubles was invested in railroad transport during 1951-55, or 64.6 percent of the total this period. Therefore, 64.6 percent of the available capital for each year was used to derive these estimates gY available below. capital for 1. j. Net surplus subtracted from total profits. See Table 26. k. 245/ - 82- S-E-C-R-E-T V M S Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 50X1 Declassified in -Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001960030001-6 S-E-C-R-E-T Table 31 Estimated Capital Investment in Transport in the USSR and the US a/ 1951-59 USSR US Year 1951 1952 1953 1954 1955 1956 1957 1958 1959 Transport Investment (Billion Current Rubles) Transport Investment as a Percent of National Investment Investment in Railroad Transport b/ (Billion Current Rubles) Railroad Investment as a Percent of Transport Investment Railroad Investment as a Percent of National Investment Transport Investment c/ (Billion Current US $) Transport Investment as a Percent of National Investment Investment in Railroad Transport d/ (Billion Current US $) Railroad Investment as a Percent of Transport Investment Railroad Investment as a Percent of National Investment 14.0 e/ 15.5 -J/ 17.7 e/ 18.0 f/ 19.0 T/ 21.5 11/ 22.5 g/ 19.8 h/ 23.3 7-1/ N.A. N.A. N.A. 11.5 11.4 13.4 12.6 9.7 i/ 10.0 i/ 11.5 11.4 10.8 11.5 11.5 10.9 11.1 12.8 14.0 82.1 73.5 61.0 63.9 60.5 50.7 54.2 72.7 67.0 Average 7.5 5.8 5.8 6.3 6.0 5.2 5.3 5.8 6.2 6.5 7.8 8.4 8.2 9.4 18.7 18.2 18.6 20.2 20.3 19.5 19.7 22.4 24.9 1.5 1.4 1.3 0.9 0.9 1.2 1.4 0.8 0.9 28.8 26.4 22.4 14.5 13.8 15.4 16.7 9.8 9.6 5.3 4.8 4.2 2.8 2.9 3.1 3.3 2.1 2.2 a. Data for the USSR include investment in communications, which have generally taken from 3 to 5 percent of investment in the transport and communica- tions sector. Data for the USSR also exclude investment in air transport and petroleum pipeline transport for all years and exclude republic investment in motor vehicle and inland water transport for 1958 and 1959. Data for the US exclude government investment in inland waterways, port facilities, ship construction, and air facility development. Data for both countries exclude farm-owned trucking. b.. See Table 30, p. 82, above. c. 246/. The US estimates consist of US business expenditures on new plant and equipment for rail and nonrail transport plus investment in highways by federal, state, and local governments. d. 247/ e. 778/ f. g. 250/ h. 251/ i. The percentages probably remained at previous levels (sea footnote a). - 83 - S- E- C-R-E- T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 S-E-C-R-E-T Estimated Fixed Assets) Table 32 Depreciation Charges, Output, and Capital-Output Ratios for Railroads in the USSR 1950-58 and 1965 Plan (1) (2) (3) (4) (5) (6) (7) . Year Book Value of Fixed Assets a/ (Billion Current Rubles) Depreciation Chargeb Traffic-Kilometers Performed per July 1955 Ruble Of Fixed Assets e/ Output 0 (Billion July 1955 Rubles) Capital-Output Ratios g/ .Billion Current Rubles b/ .Fixed Assets d/ Percent of Total, (Billion July pperating Costs 2/ 1955 Rubles) 1950 78 5.1 14.0 92.9 h/ 7.4 36.0 2.6 1951 77 5.0 13.2 96.81/ 8.o 40.5 2.4 1952 92 6.o 15.1 100.971 8.4 44.3 2.3 1953 loo 6.5 15.8 105.1 8.7 47.8 2.2 1954 106 6.9 16.2 ?I/ 109.7 it 9.0 51.5 2.1 1955 114 7.4 17.0 118.7 k/ 9.4 58.1 2.0 1956 125 8.1 17.9 130.0 7./ 9.5 63.8 2.0 1957 135 8.8 18.3 141.2 11 9.7 71.3 2.0 1958 143 9.3 19.1 149.2 71 9.8 76.2 2.0 1965 Plan 214 -13.9 25.8 223.11/ 9.2 106.5 2.1 a. Column (2) divided by an amortization rate of 6.5 percent. b. Column (6) in Table 22, P. 74, above, multiplied by Column (3). e. f. Column (8) in Table 22 divided by Column (4). Column (7) in Table 22 multiplied by Column (8) in Table 227. Revenue per traffic-kilometer for 1955 r g. Column (4) divided by Column (6). h. 257/ i. Interpolation based on an average annual j. 258/. A coefficient of utilization of 8 k. 259/ 1. Derived by applying percentage increases rate of growth of 4.2 percent between 1950 and 1954. traffic-kilometers per ruble of fixed assets at 1954. prices in Column (1). - 814- S-E-C-R-E-T Ls estimated. Declassified in Part- Sanitized Copy Approved for Release 2013/07/15 : CIA-RDP79R01141A001900030001-6 I Declassified in Part- Sanitized Copy Approved forRelease2013/07/15 : CIA-RDP79R01141A001900030001-6 S-Er-C-R-E-T APPENDIX B METHODOLOGY Official Soviet transport statistics that have been published were accepted as the basis for all estimates, aggregations, and comparisons in this report. Adjustments, as duly noted on appropriate tables, were made where necessary to effect maximum possible comparability. Where published data were not available, estimates were based on past and present trends. Detailed techniques for estimating aggregates such as performance, inventory, investment, and the labor force are given in their respec- tive sections of this report. -85- S- E- C-R- E- T Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 R Next 9 Page(s) In Document Denied Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 SO _60 70 80 90 100 110 2 140 110 180 170 *K.h t.St Onezhskla A nal-- ...hforlinskla \MARIINSE WA TEN WA Kona! ',Knosha Belozerskla Konol? Shkon', RYBINSK ESER VOIR ero.D.Inskla Konol KAMA RE. ER VOIR *KUYBYSHEV 04 ? 0\RESERVOIR ',40 Kama Don 91( '.TSIMLYANSK RESERVOIR Volao-Donskom Konol STALINGRAD RESERVOIR 08,Y0710704k17 Ker Angora 141.19?44441:1 IRKUTSK RESERVOIR IRTYSH RISER VOIR Osero Zoasan 00 110 80 USSR PRINCIPAL INLAND WATERWAYS, 1956 ,141?11?11???11?11 St?tule sfiles 400 600 800 1000 soometers Navigable river Canal Reservoir 25521 8-56 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A001900030001-6 Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A00190003000 SECRET SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/07/15: CIA-RDP79R01141A00190003000 1-6 -6