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Nov 12, 2018

Russian government reviews Russian Railways’ 2019-2021 investment programme and financial plan

On 8 November 2018, the Government of the Russian Federation discussed "On Projects of the Investment Programme and Financial Plan of OJSC Russian Railways for 2019 and for the 2020 and 2021 Planning Period."

The Company’s investment programme takes into account the measures under the Main Infrastructure Development Plan, which has been approved by the Government of the Russian Federation. It also includes the projects stipulated by Russian presidential decrees issued in May 2018.

The Company’s 2019 financial plan is based on an updated forecast for Russia’s socio-economic development. The growth of freight loading on the railway network next year is expected to be up by 1.5% compared to the forecast level of 2018.

The Russian Railways’ 2019-2021 investment programme envisages total funds of about 2.3 trillion roubles, including over 680 billion roubles in 2019, over 820 billion roubles in 2020 and 745 billion roubles in 2021.

It is planned to complete a number of investment projects during this period, especially the first stage in modernising the railway infrastructure of the Baikal-Amur and Trans-Siberian Main Lines, the integrated development of the Mezhdurechensk-Taishet section and the development and renovation of the railway infrastructure on the approaches to the ports of the Azov-Black Sea basin, as well as the reconstruction of the Morozovskaya-Volgodonskaya stretch.

The main set of measures for the development of the Central Transport Hub and approaches to the ports of the North-Western Basin and the construction of a bypass around the Saratov Hub, as well as measures to increase the throughput and carrying capacity of the infrastructure to increase the transit container flow, will be carried out.

Work is also planned on the implementation of Stage II of the modernisation of Baikal-Amur and Trans-Siberian Main Lines, the development of the Perm-Solikamsk route, and the construction of a bypass around the Perm Railway Hub.

In the next three years, the implementation of measures aimed at ensuring the sustainability of the transportation process will continue. It is planned to reconstruct 17,000 kilometres of railway track, while a significant amount of investment will be directed to upgrading the companies involved in the track complex, power supply devices and the corporate information programme, as well as to update the automation and remote control devices.

In addition, the Company will continue to implement projects to improve the transport access for the country’s population, including measures to develop the infrastructure of the suburban passenger complex, as well as to reconstruct station complexes for long-distance traffic.

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