Advances in Economics, Business and Management Research, volume 113 Factors of Regional Extensive Development (FRED 2019) Non-Divisional Management Structure as One of the Most Important Elements of the Reform of Railway Transport N.N. Grigoryeva Irkutsk State Transport University Irkutsk, the Russian Federation E.mail: [email protected] Abstract—At present, large-scale structural transformations was the area of the implementation of the largest programs of are being carried out in railway transport, which fundamentally state value. change the existing mechanism of its functioning and form a new ideology of the industry, the transport market and new relation- In terms of industry evolution, degree of development of ships between market participants. The features of the reform natural resources, specialization and concentration of industrial are not only changing the form of ownership, but also changing the production, the Irkutsk region is ahead of most regions of Sibe- entire management architecture of the company. ria and all regions of the Far East, and by the main indicators (labor productivity and production per capita) significantly sur- Keywords—structural transformations, railway transport, eco- passed the corresponding data for the USSR as a whole RSFSR. nomic management methods, non-divisional management structure. The key role in the industry of the region was played by the I.INTRODUCTION. fuel and energy complex using the unique hydropower re- sources of the Angara and large reserves of cheap energy coals A radical economic reform, the restructuring of the eco- of the Irkutsk basin. The electricity in the Irkutsk energy system nomic management mechanism, and the transition to economic was developed with the best technical and economic indicators management methods change both the structure of industrial in the USSR and the world. As a result, the cost of electricity in enterprises and their functioning environment. The history of the second half of the 1980s was 3-4 times lower than the aver- railways has more than 180 years. For this significant period of age one, heat energy was 2 times lower [1]. Therefore, the prof- time there have been dramatic changes in the development of itability of the production of the main energy-intensive products the railway industry. of the non-ferrous metallurgy, pulp and paper, and chemical in- The divisional structure of the railway industry management dustries was higher than the average in the Union. Powerful and was formed in the 50s of the last century. Bringing its leader- highly efficient fuel and energy, raw materials and water re- ship closer to grassroots linear enterprises, it reflected the level sources of the Angara region also provided an extremely high of engineering and technology, the state of information and concentration of industrial production. Bratsk and Ust-Ilimsk technical controlling means of that time. In conditions of rela- Hydroelectric Power Plant, Bratsk and Ust-Ilimsk Timber In- tively low transportation speeds, the prevalence of steam trac- dustry Complex, Angarsk Petrochemical Plant, Bratsk Alumi- tion and the attending infrastructure, the weak development of num Plant, chemical plants in Usolye-Sibirskiy and Sayansk, automated control systems, the railway - railway divisions - lin- Angarsk electrolysis and chemical plant, etc. were among the ear enterprises were an important and necessary element of ef- largest energy and energy-intensive industry enterprises in the fective management. country (and partly even in the world). With the beginning of market transformations in Russia in In the sectoral structure of industry in 1985, the first place the 90s, a search of new organizational forms of management was occupied by forestry, woodworking and pulp and paper was underway on railway transport. Its task was to adapt rail- (20.9% of the total production), the second place was occupied way transport to new economic conditions. This work was car- by the fuel industry as a part of the refining and coal industry ried out both at the level of the railway industry as a whole and (17.4%), electric power industry was at the third place (14.6%), at the economic level unit (the road) and its structural divisions. mechanical engineering and metalworking was at the fourth place (13.1%), non-ferrous metallurgy as a part of aluminum For the first time on the road network, the reorganization of and gold mining (10.7%) was at the fifth place [1]. the management system and the transition to a non-divisional structure were implemented on the East-Siberian Railways in By the mid-1980s the Irkutsk region had a powerful con- the 90s. This long-term and successful experience needs multi- struction sector, which made it possible to create basic indus- lateral consideration today. trial enterprises and new cities - Angarsk, Shelekhov, Bratsk, Baikalsk, Zheleznogorsk-Ilimsky, Ust-Ilimsk, and Sayansk. In II.RESULTS. 1985, the volume of capital investments in Priangarye was 2.2% By the mid-1980s, the Irkutsk region became one of the of the similar value of the RSFSR, the volume of construction most important industrial regions in the East of the country. It and installation work was 2.3% [2]. Copyright © 2020 The Authors. Published by Atlantis Press SARL. This is an open access article distributed under the CC BY-NC 4.0 license (http://creativecommons.org/licenses/by-nc/4.0/) 281 Advances in Economics, Business and Management Research, volume 113 Large construction organizations as Bratskgesstroy,, An- goods. By this time, the reserves obtained after the radical re- garsk management of construction, Vostsibstroy, Irkutskprom- construction of the railways with their transition to electric trac- stroy, etc. worked in the region. So, the activities of tion had been almost completely exhausted. The task of increas- Bratskgesstroy, which built production facilities from Smo- ing the carrying capacity of the Trans-Siberian Railway was lensk in the West to Neryungri and Khabarovsk in the East, had partially solved by switching to driving heavy trains, routing no analogues in scale not only in the country, but also, perhaps, traffic and implementing other organizational and technical in the world. measures [6]. The orientation of the region to industrial production was In the late 80s, a new course of development was outlined accompanied by intensive development of transport. The vast- in the country. The leadership of the country officially an- ness of the territory of the Irkutsk region, its remoteness from nounced the transition to the so-called restructuring in 1985, but the main economic centers of the country and the world, the the first real changes in the economy began only in 1987–1988, uneven settlement and development, the presence of a powerful when they began to encourage self-employment, create cooper- industry with a great need for transportation of mass raw and ative societies, introduce self-financing at enterprises, and par- grocery goods stipulated an increased role of transport and tially decentralize foreign trade. In subsequent years, dollar was communications , which, taken together, occupied second place released into free circulation in the country with its exchange at (after industry) in 1985 in the value of fixed assets and the num- the commercial rate (1989), non-state commercial banks ap- ber of people employed in the regional economic sector [3]. peared with an arbitrary setting of the refinancing rate, or inter- est from loans (1990), contractual prices for many types of There were major mainlines of all-union significance pass- products began to be established (1991). ing through the territory of the Angara region — transit Trans- Siberian (Transsib) and Baikal-Amur (BAM) railways, the In the Irkutsk region, sustained economic growth was still Moscow Automobile Route, inland waterways, main airlines, maintained. The greatest for the entire Soviet period, the vol- and oil pipelines. umes of production of industrial and agricultural products, in- vestment in fixed assets, transportation of goods, etc. were The East Siberian Railway, East Siberian and Lena River achieved in 1989. In late 1991, the Soviet Union collapsed. Shipping Companies, whose activities extended beyond the re- gion, were among the major transport associations. With the transition to market conditions of management in the 90s in all major branches of material production in Prian- The vast majority of transport work accrued to the Trans- garie there was a decline, which intensified due to the beginning Siberian Railway, which mastered a huge flow of transit and its of price increase and disorganization of state planning and eco- own cargo and passengers. The freight traffic density in the sec- nomic management. Thus, in the industry of the region with re- tion from Cheremkhovo to Shelekhov was several times higher spect to the most successful 1989, the decline in production in than the average network and one of the highest in the country 1990 was 3.5%, and in 1991, already 7.8%. and the world [4]. During the 90s, an unprecedented decline in industrial pro- During this period the main indicators of the activities of the duction in the Irkutsk region continued: its volume in 1994 de- East-Siberian railway in 1988-1990 are reflected in table 1 [5]. creased by 41%, compared with 1990. But in the whole country this decline was even sharper - by 49%. The construction com- TABLE I. DYNAMICS OF THE PERFORMANCE INDICATORS OF THE plex of the Angara region suffered the greatest damage: over EAST-SIBERIAN RAILWAY IN 1988-1990 the same period, the volume of investments in fixed assets de- creased by 66%, the commissioning of residential buildings de- I n d i c . U n i t o f 1 9 8 8 1 9 8 9 1 9 9 0 creased by 60%. Slightly less than in industry, there was a de- n a m e m e a s u r . cline in production indicators (transportation of goods and pas- Cargo dispatch bln.