Russian Railways @16: Board Chair,Oleg Belozerov Lists Milestones

A festive network conference call was held at the central office of Russian Railways to mark the Company’s Day. The participants were addressed by the General Director – Chairman of the Board Oleg Belozerov. The Hooter publishes the text of his speech.

I greet the leaders in the field studios at the festive selector dedicated to the Company Day. 

For 16 years, Russian Railways has been operating as an open joint stock company. 
Here today, we have the presidential aide is Igor Evgenievich Levitin; Deputy Minister of Transport, Vladimir Tokarev;the head of the Federal Agency for Railway Transport ,Vladimir Yuryevich Chepets ;and the first president of Russian Railways Gennady Matveyevich Fadeev.

On behalf of the entire team of the company,I pass huge words of gratitude, because we constantly feel your support and we are working very well. 

Dear colleagues! 

Each “corporate” year that the Russian Railways company and the holding as a whole go through in their history writes new wonderful pages in our common chronicle. The sixteenth year of work was no exception. I am sure I will not be mistaken if I say that the key event of the year is the adoption of the Long-Term Development Program of Russian Railways until 2025, which was approved by the Government of the Russian Federation. This is a system document of a fundamentally new level and quality. Everything in it is balanced, digitized and formulated very specifically.

DPR is a company development program, and the result of its implementation will become one of the leading drivers for the development of the entire economy of the country, stimulating the demand for innovative products of enterprises in the real sector of the economy and promoting the development of import substitution. DPR allows our colleagues (these are two dozen industries) and clients to be confident in creating the conditions for implementing their own development programs for the long term.

During the year, we repeatedly discussed various aspects of the content of the program and the mechanisms for its implementation. I will not return to these questions today. I emphasize the main thing: despite the changing situation, we believe that all the parameters that are in it should be preserved. This is primarily the construction of infrastructure, the purchase of locomotives. And the DPR will be provided during the period of its implementation with all the necessary resources – production, financial and, most importantly, human.

Human resources are the most important asset of Russian railways. The final board of 2018 identified the tasks of retaining and developing personnel, creating the necessary conditions for the disclosure and use of the potential and competencies of each employee as having the highest priority. We are deliberately following this decision. In this work for us does not exist and trifles cannot exist. Everything is equally important here – the level of wages, working and resting conditions, education, career growth, medical care, housing conditions. All these issues are widely reflected in the current Collective Agreement, which is strictly implemented by both parties. The new concluded Industry Agreement on Railway Transport Organizations for 2020–2022 and the draft Collective Agreement contain a wide range of targeted innovations, which confirm the status of Russian Railways as a socially responsible employer. According to VTsIOM, in 2019 JSC Russian Railways entered the top three most desirable employment places for Russians. We will consistently take the necessary measures to improve our leadership position.

This year, for the first time, the company uses a new model for wage indexation. Already in March, we compensated for the over-planned price increase last year. The date of the second indexation was postponed from October to July. And, moreover, they found the opportunity for a third indexation of wages from October 1.
The company reacts extremely carefully and responds to the requests and wishes of employees, primarily of a linear level. This year, we made appropriate decisions regarding distance learning and retraining programs, work uniforms, service wagons, and flexible working hours. The deadline for updating the means of small-scale mechanization. The work here is planned to be the most ambitious, all the necessary resources for its solution have been allocated, and it will certainly be completed on schedule. Our reaction on such issues will continue to be the most prompt.

I cannot but touch upon the issue of youth policy. Today, the company has formed a coherent system for the development and use of the competencies of young specialists. A variety of formats for such work are supported – from self-nomination to competitions of professional competencies and skills. The most striking example of this policy is the New Link contest. This year’s results fully confirm the status of the competition – a competition of innovative engineering ideas. It is enough to get acquainted with the topics and content of the prize-winning works: this is “Changing the technology for ensuring the thermal regime in the Baikal Tunnel” and “The Online Monitoring System for the Status of the Wireless Telecommunication Network”.

And the winner – the team of the Kuibyshev Railway – proposed a solution to one of the most urgent tasks for the company: increasing the local speed as a result of changing the mode of conducting “crossed trains”. 
We agreed that all significant proposals will be brought to practical implementation. 

In addition, I consider it necessary to dwell on the issue of social and personnel policy in relation to the Eastern training ground. 

Colleagues! The vector for solving these issues, set during the preparation for the 45th anniversary of the start of the modern construction of the BAM, will not only be preserved, but also multiplied by a factor. Once again, I want to congratulate all BAM veterans, builders and maintenance workers, today’s highway workers on their 45th birthday and express gratitude for your work and dedication to the railway.

Oriental training ground – a training ground for the implementation and widespread use of the most modern technologies and technical solutions. Specialists of the highest competencies, provided by the most modern working and living conditions, are capable of ensuring their effective use. A separate targeted social and personnel program until 2025, synchronized with the Long-Term Development Program, is aimed at this. 

I believe that the current year is a turning point for the engineering corps of Russian railways. A decision was made to establish an engineering center. The center should become a generator of innovative solutions in the shortest possible time. 

The second one. Non-trivial, but most important production tasks are solved – unmanned driving, interval driving, virtual coupling of locomotives.

And one more element. The high organizational and technological potential of Russian Railways has made our company a national leader in developing solutions in the field of quantum communications. The ambitious task was set – to bring the Russian Federation to the leaders in this high-tech area.

Assessing production results, I want to dwell on security issues as a priority. Last year, the company reached its highest level in terms of the main indicator – the level of traffic safety – 0.98. We based this figure on the formation of planned targets for the current year. And today I am pleased to note that the company provides a current safety indicator of 0.86. Moreover, it is necessary, as we agreed, to improve in the long run.

On the issue of transport security, the current year in a certain sense can be considered the final one. Firstly, the culture of transport safety has firmly entered our production process. This was made possible largely due to well-coordinated work with the Federal Agency for Railway Transport. Now I want to thank the head of Roszheldor Vladimir Yuryevich Chepts and all the employees of the agency for the constructive interaction.

In this area, we have done difficult work to adjust the legislative framework. Legislative changes can significantly reduce the cost part, while the quality will not suffer, but only improve. Accordingly, we do not increase the financial burden on passengers and shippers. We expect that in the near future the formation of regulatory legal acts, primarily the Government of the Russian Federation, will be completed. And here I want to thank the Minister of Transport, Evgeny Ivanovich Dietrich and Vladimir Alexandrovich Tokarev for their active work, for their support on this very difficult, but very important issue for us. Positive results were achieved thanks to the focused work on new services and rolling stock updates, as well as effective interaction with the subjects of the Federation.

The passenger complex shows steady dynamics in almost all indicators: passenger turnover grew by 3%, departure of passengers – by 4%.

At a high level, the summer transportation campaign was completed. I want to thank all the participants for this. We have once again demonstrated our highest competencies in ensuring large-scale government events. Organization of transportation and the level of service received the highest marks from the organizers, guests and participants of the World Universiade in Krasnoyarsk. 

This year, we confidently switched to the replication of multimodality technology. In the short term, I think, on the horizon of two to three years, it should take its rightful place on the entire railway network.

The passenger today is extremely attentive to the set, content and level of services, speed, comfort of movement along the chosen route. You must always remember that services that are new today will already be familiar tomorrow. And we need to move forward. 

The current year for the segment of freight transportation and logistics posed new challenges in terms of stability of the cargo base and directions of cargo flows. 

I cannot but note the work of the network in preserving and expanding the high-profitable cargo segment, and this is one of the key factors ensuring the financial stability of the company. 

The service of transportation of freight trains according to an agreed schedule is gradually becoming extremely effective and in demand.

The attitude to the issue of reliability of delivery has been fundamentally changed. And here I want to put an exclamation mark. He moved from the plane of claims work to the plane of strict observance of contractual obligations. The current target of 99% today implies the transition of a psychological barrier, which, of course, will be completed this year. The position is unequivocal: everything is accurate and on time. 

Briefly about container shipping. The segment is developing at an accelerated pace, especially in terms of transit traffic. These shipments are economically highly efficient for Russian railways. And this year we should come very close, and ideally exceed the barrier of 5 million containers per year. Although even such large numbers throughout the country sound very modest.

Despite all the macroeconomic fluctuations, the company has maintained high financial stability over the past few years. The current year was no exception. All key financial and economic indicators are stably implemented. 

This is the result of consistent work to improve internal processes in accordance with the program of measures to improve operational efficiency and optimize costs. 

This year, we have ensured an improvement in the structure of transportation costs, kept its growth at half the rate of inflation. Labor productivity growth will be provided at the level of 5%.

Thanks to these results, we successfully operate in capital markets. I recall that two leading world agencies this year increased the rating of Russian Railways by one more step. Well, we are at the highest possible level. 

We have also placed eight-year green bonds, a unique mechanism, thanks to our energy efficiency and work in this direction. 

In the international direction, integration processes are gradually expanding, aimed at building supply chains in transit communication.

The company’s presence in foreign markets is expanding. Today, the competencies of Russian Railways are replicated in the implementation of activities in Serbia, Iran, India, Kyrgyzstan and many other countries. We plan that this year we will complete the design of relations aimed at restoring and modernizing the railway infrastructure of the Republic of Cuba. 

Dear colleagues! 

Everything that has been accomplished and achieved at the company this year is, of course, the merit of each of you. Your professionalism and competencies are the foundation for the successful solution of all the tasks before us. 

Thank you for your work! 

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