Russian Railways Roll out Investments Plans

In three years, Russian Railways plans to update about 10.7 thousand km of track and one and a half thousand locomotives

Last Wednesday, during a briefing, Vadim Mikhailov, First Deputy General Director of Russian Railways, presented a brief overview of the company’s production results in 2020 and the specifics of forming the company’s investment program and financial plan in 2021. RZD’s loading for the current year is estimated at 1.6% growth over the last year’s level. Cargo turnover is planned to increase by 2.5%, and passenger turnover – by 64.7%.

Last year, Russian Railways managed to increase the speed of cargo delivery by 11%, from 395 km / day. in 2019 up to 439 km / day. in 2020. The share of freight shipments of loaded wagons delivered on time increased by 1% – from 98.4% in 2019 to 99.4% in 2020.

In general, revenues from transportation activities amounted to 1 trillion 615.3 billion rubles. (26.6% below the level of 2019).

The holding’s total funds raised amounted to RUB 464.2 billion, including 313 billion perpetual bonds.

“Taking into account the fact that such an instrument (perpetual bonds – Ed.) Was able to be implemented, we have seriously increased the volume of our investment program and even exceeded it,” stressed Vadim Mikhailov. – We finished the year with the figure of 717.3 billion rubles. – this is the highest result in the history of Russian Railways, there has never been such a large investment program. “

Due to the investment program, Russian Railways implemented projects for the construction of more than 120 infrastructure facilities, including for the Eastern landfill, and also provided great support to transport engineering, purchasing 566 locomotives, 371 units of multi-unit rolling stock, including 196 Lastochka cars, and 319 units of track equipment.

According to market participants, given the coronavirus pandemic and related measures to combat it, including sanitary and epidemiological, restriction of movement of citizens, temporary suspension of the activities of many industries, the results of the holding’s work over the past year are expected and quite satisfactory.

“The company was forced to cut transportation, so it is not surprising that its revenues have declined. I consider it important to highlight two facts in the results of the work. The first is that the decline in handling in 2020 was 2.7%, while global merchandise trade declined 6% in 2020. The second one is that, despite the difficult situation, the company was able to increase the volume of investments last year, which had a positive effect on the carrying and carrying capacity of the railway network, ”said Dmitry Baranov, leading expert of FINAM Management.

The plans and tasks of Russian Railways for the current year are synchronized with the Forecast of the socio-economic development of the Russian Federation for 2021 and for the planning period of 2022 and 2023, which was presented by the Ministry of Economic Development in September 2020, Vadim Mikhailov noted.

RZD’s loading for 2021 is estimated with an increase of 1.6% by 2020. It is planned to increase the freight turnover by 2.5%, and the passenger turnover by 64.7%.
“For passengers, the forecast is based on positive trends. The expected growth is quite serious, but we still see certain restrictions associated with the coronavirus, ”said Vadim Mikhailov.

If these indicators are met, revenues from transportation will increase by 121.1 billion rubles. to the level of 2020.

With the help of loans and borrowings, this year 269.8 billion rubles will be attracted, including 23.8 billion rubles. perpetual bonds.

The consolidated program to improve efficiency and optimize costs in 2021 provides for cost reductions in the amount of RUB 38.5 billion.
“We have formed our three-year plan with the help of the Government of the Russian Federation. The investment program will amount to 730 billion rubles. For the period 2021–2023, 2.3 trillion rubles are provided, ”he said.

The company takes an active part in the implementation of the Comprehensive Plan for the modernization and development of trunk infrastructure, including the development of the Eastern range, approaches to the ports of the Azov-Black Sea basin and the North-West, the Central Transport Hub (CTU) and the creation of high-speed highways.

This year, contributions to the authorized capital of the holding will amount to 73.2 billion rubles. 15.5 billion rubles will be allocated to projects for the development of the BAM and Transsib, and 56.1 billion rubles to the Central Technical University.

In addition, it is planned to update about 10.7 thousand km of track in three years. The traction rolling stock is planned to be renewed by 500 locomotives per year, that is, in three years – 1.5 thousand units.

“Until 2030, we will introduce innovative rolling stock, including gas-engine, gas-diesel traction, and innovative passenger. It is planned to create a multi-unit rolling stock on hydrogen fuel cells (Sakhalin Island), – explained Vadim Mikhailov. – In 2020, we created an engineering center that develops documentation for the production of innovative high-speed railway rolling stock. The result of the work of the center will be a set of design documentation required for the localization of production in Russia ”.

According to Dmitry Baranov, the implementation of the financial plan will primarily depend on the development of the situation with the coronavirus pandemic, measures to combat it, and the results of vaccination of the population.

“If the epidemiological situation develops favorably, the level and rate of the disease decline, then this may contribute to an increase in passenger traffic, which will affect the company’s revenues. Freight rail transportation in 2021 will continue to be in demand, both domestic and export and transit. The main types of goods transported on the railway network will remain the same this year. If the company offers customers special conditions for some cargo and in a number of directions, it can achieve an increase in the volume of freight traffic, exceeding the loading indicators in 2020, ”he stressed.

The total amount of macroeconomic effects from the planned activities of Russian Railways in the horizon of 2021–2023 is 5.9 trillion rubles. per year and the effect of the production of products transported by rail – 3.6 trillion rubles.

Russian Railways plans to continue selling non-core assets this year. The sale of the following companies is planned: JSC “BET” (production and sale of sleepers), JSC “PNK” (manufacturer of nonmetallic materials), JSC “TVS” (manufacturer and supplier of impregnated wood sleepers), JSC “Zheldorremmash” (repair of traction rolling stock), JSC EKZA (processing of tanks), JSC EZ Metallist-Remputmash (production of metal structures), JSC ELTEZA (production of automation and telemechanics equipment) and LLC Aeroexpress.

However, the final decision on the sale of specific subsidiaries and affiliates will be made following the receipt of relevant directives from the Government of the Russian Federation and taking into account the market conditions.

The Government of the Russian Federation has decided to maintain the tax rate on property of Russian Railways infrastructure facilities at the 2020 level – 1.6%. In 2021, in accordance with the Tax Code, the rate was supposed to increase to 2.2%.

Back in May last year, at a meeting with Russian President Vladimir Putin, Oleg Belozerov, CEO and Chairman of the Board of Russian Railways, said that while maintaining the tax rate, all funds would be directed to the implementation of the company’s investment program.(

Please follow and like us:


Leave a Reply

Your email address will not be published. Required fields are marked *

Next Post

Kenyan Railways: Demolition is for Safe Corridor for Rail Operations

Tue Feb 9 , 2021
Please follow and like us: Rail-Bus See author's posts
%d bloggers like this: