Main achievements of Russian Railways

Implementation status of the Russian Railways Group’s Development Strategy until 2030

On 20 December 2013, the Russian Railways Board of Directors approved the Russian Railways Group’s Development Strategy until 2030, which specifies the goals and objectives, key priorities and long-term development projects of the Russian Railways Group.

In order to implement the Russian Railways Group’s Development Strategy until 2030 (hereinafter the Group’s Strategy), an Action Plan has been approved to put the Group’s Strategy into effect.

Based on the decision of the Russian Government, a long-term development programme has been prepared for Russian Railways and its subsidiaries and affiliates (S&A) until 2020 (hereinafter the LDP) as the first stage of the Group’s Strategy, which was approved by the Russian Railways Board of Directors on 1 December 2014

Key results by business units

Transportation and Logistics Business Unit
Passenger Transportation Business Unit
  • Passenger turnover totalled 128.8 bln passenger km, down 7.0% compared with 2013.
  • A total of 1,070.3 mln passengers were transported in 2014, a decrease of 0.9% compared with 2013.
  • The ‘Framework for the development of suburban passenger railway transportation’, which specifies the key principles for organising, regulating and funding the activities of suburban transportation, meets the public’s demand for high-quality suburban transportation and creates conditions for the sustainable development of this railway transportation segment, was approved by Order No. 857-r of the Russian Government dated 19 May 2014.
  • Double-decker Sapsan trains began running between Moscow and St Petersburg.
  • Lastochka (Desiro RUS) trains were put into operation on the routes: St Petersburg-Bologoye-Veliky Novgorod, Moscow-Nizhny Novgorod, Moscow-Kursk, Moscow-Smolensk, Adler-Krasnodar and Petrozavodsk-St Petersburg.
  • Trial runs were conducted of the Talgo train with EP20 electric locomotive along the Moscow-Nizhny Novgorod route.
  • Railcar carrier services were established on the St Petersburg-Astrakhan route.
  • Lastochka (Desiro RUS) electric trains carried 4.764 mln passengers during the XXII Winter Olympic Games and XI Paralympic Winter Games in Sochi.
  • A relevant long-term agreement was concluded for the first time on debt repayment within 10 years as part of the settlement of the Federal Railway Transportation Agency’s debt on payments for public railway infrastructure services for suburban passenger transportation in 2011–2014.
Railway Shipments and Infrastructure Business Unit
  • A major investment project of national importance was launched to modernise the Baikal-Amur and Trans-Siberian Mainlines.
  • Certification was completed for the Skif 2ES5 and 2ES7 new generation innovative mainline freight electric locomotives with asynchronous traction motors, and a certificate was obtained for the world’s most powerful electric freight locomotive — the 4ES5K.
  • A draft business plan was prepared in accordance with government decisions on the feasibility of developing the Moscow Aviation Hub along with a technology and price audit.
  • In accordance with an order from the Russian Government, Russian Railways prepared comprehensive studies on the investment projects ‘Development of railway infrastructure at approaches to ports of northwest Russia’ and ‘Development of railway infrastructure at approaches to ports of the Azov and Black Seas’, including an independent technology and price audit of these investment projects.
  • Provisions of the Unified Network Technological Process (UNTP) were introduced, making it possible to achieve positive dynamics in the main rolling stock usage indicators.
  • Trains weighing 8,000 and 9,000 tonnes started running regularly on the routes Kuzbass-Northwest ports and Kuzbass-Centre.

In 2014:

  • 660 locomotives were purchased;
  • a new 4ES5K mainline electric locomotive manufactured by Novocherkassk Electric Locomotive Plant was purchased for the first time to support heavy traffic on AC transmission lines;
  • 6,300 km of tracks were rehabilitated, major track repair work was completed in full, 15.6 km of additional mainlines were put into operation and 1,642 running metres of small and medium artificial structures were rebuilt. A total of 978.6 km of railway tracks were rebuilt (modernised) on 128 sections of the Eastern operating domain.
International Engineering and Transportation Construction Business Unit
  • On 25 March 2014, work began to build and electrify a second railway track from Pancevo Bridge (Belgrade) to the Pancevo Main Station (city of Pancevo) in the Republic of Serbia. Materials and track maintenance equipment were supplied in full to perform construction and installation work. The actual amount of revenue earned by the Russian Railways Group under this contract totalled RUB 1.7 bln in 2014.
  • On 18 July 2014, a new transshipment terminal was put into operation at the Rajin port (DPRK) and transit freight shipments were launched through the DPRK with trans-loading at the Rajin port.
  • Representatives of Russian Railways along with Vietnam Railways and the Vietnamese company An Vien completed developing the framework for the construction of a railway line in southern Vietnam, which has been submitted to the Vietnamese Government for consideration.
  • A study was continued on the Russian Railway Group’s involvement in the implementation of an infrastructure project in Indonesia.
  • Studies are under way on the Russian Railway Group’s participation in the comprehensive development of the railway industry in Ecuador as well as construction tenders in Brazil.
Social Unit
  • In 2014, the Company retained its status as a socially responsible employer and maintained social stability in the workforce.
  • The Company ensured an economically viable ratio between growth in productivity and an increase in wages. The average monthly salary of Russian Railways employees engaged in all types of activities increased by 5.6% in 2014 to RUB 41,126 (from RUB 38,935 in 2013). Wages were indexed at an average of 3.8% in 2014. Labour productivity in shipment operations grew 10.6%.
  • The Company has established a unique continuing education system for all categories and levels of personnel. In 2014, more than 52,000 workers in leading professions underwent training, more than 26,000 people upgraded their skill category, 14,600 people were trained in a second profession and more than 153,000 people upgraded their skills in various courses at training centres and in the workplace.
  • In 2014, the following buildings were commissioned following construction: a complex of buildings and structures at the Tynda branch of the Far East Training Centre of Professional Qualifications; a training facility at the Kulunda branch of the West Siberia Training Centre; and a building of the Northwest Corporate Education Centre in St Petersburg.
  • Russian Railways fully met its obligations under the collective bargaining agreement in 2014.
  • In 2014, the overall injury rate declined 19% compared with the previous year’s level, while fatal injuries decreased 12%
  • Occupational safety expenses (measures to improve labour conditions and occupational safety) increased by RUB 300 mln compared with 2013 and totalled RUB 16,604 mln.
  • Russian Railways spent RUB 2,543 mln on environmental activities as part of investment projects in 2014. Pollutant emissions from stationary sources decreased by 5,000 tonnes in 2014, while wastewater discharges into surface water bodies fell by 1.3 mln m3.

Investment development

The Company carried out investment activities in 2014 as part of the Investment Programme for 2014–2016, which was approved at a meeting of the Russian Railways Board of Directors on November 2013

One of the main objectives in 2014 as part of the execution of the Russian Railways investment budget was the implementation of projects to fulfil the orders of the Russian President and Russian Government, including:

In addition, Russian Railways used budget funds in 2014 to:

On 1 December 2014, the Russian Railways Board of Directors approved the Company’s Investment Programme for 2015–2017, which specifies the basic parameters of the Company’s investment activities in 2015.

Results of innovations

In 2014, the Russian Railways Board of Directors approved an updated Innovative Development Programme until 2015 and a report on its implementation in 2013. The programme’s goals are consistent with the Company’s development strategy and involve enhancing the efficiency of operations while continuously improving the quality of services as well as ensuring a high level of transportation innovativeness and safety.

As part of the implementation of the Innovative Development Programme, Russian Railways achieved the following results:

Traffic safety