Long-haul passenger transportation

Long-haul passenger turnover via Russian Railways infrastructure declined 9% to 96.3 bln passenger km in 2014, while the number of passengers transported decreased 6.9% to 103.1 mln

Long-haul passenger turnover via Russian Railways infrastructure in 2014 totalled 96.3 bln pass. km A decrease of 9% compared with 2013

The following companies provide long-haul transportation services via Russian Railways infrastructure:

The changes in passenger turnover resulted from a reduction in unprofitable trains and an increase in regulated transportation tariffs combined with a decrease in government subsidies.

A decline in indicators was seen across the board in long-haul transportation segments with the exception of high-speed traffic, which demonstrated growth of 3.9% in passenger turnover and 2.5% in passenger transportation.

Number of long-haul passenger trains via Russian Railways infrastructure, mln

Long-haul passenger turnover via Russian Railways infrastructure, bln pass. km

Federal Passenger Company transported 98.7 bln passengers in 2014, a 9.1% decrease from 2013, including 91.3 bln passengers via its own trains (down 7.3% compared with 2013):

The main reasons for the decline in passenger turnover and transportation by Federal Passenger Company in 2014 were:

Dynamics of railway passenger traffic with non-CIS, CIS and Baltic countries (as % vs. previous year)
Route 2011 2012 2013 2014
CIS, including 96 102 96 55
Ukraine 95 101 100 38
Baltic countries 95 99 106 79
non-CIS 118 107 108 79
TOTAL 97 102 96 56

Given these factors and the decline they caused in operating performance, Federal Passenger Company’s income from core activities totalled RUB 185.6 bln in 2014 (or RUB 18.1 bln below the plan). Income from passenger transportation amounted to RUB 164.2 bln. For other sales, the target was RUB 21.5 bln and the shortfall amounted to RUB 0.1 bln, which is 0.7% below the approved budget level.

EBITDA, the primary indicator that reflects the effectiveness of the Company’s performance, totalled RUB 16.9 bln in 2014 (below the target of RUB 20.8 bln). The Company also posted a loss of RUB 0.4 bln in 2014 instead of planned net profit of RUB 0.7 bln.

In order to ensure the financial sustainability of the Company’s operations, an anti-crisis programme was prepared in 2014 along with projects in core operations with an effect of RUB 14.6 bln. The programme’s implementation cost for the year was RUB 15.3 bln, which is 4.3% above the established plan.

Structure of passenger transportation in domestic traffic

Structure of passenger transportation in domestic traffic
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