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Feb 15, 2019

Russian Railways will increase energy consumption by 14% by 2024 due to growing traffic volumes

Oleg Belozerov, Chief Executive Officer and Chairman of the Board of Russian Railways, has addressed the session "The Fuel and Energy Complex: Creating Conditions for Investments - The Key to Maintaining the Competitiveness of the Russian Economy," which has taken place at the Russian Investment Forum in Sochi.

"Our Company is energy efficient, and we are applying all the new technological developments. But the volume of traffic is growing, and according to our calculations, by 2024 the consumption of resources of Russian Railways will increase by 14%," said Belozerov.

According to the Chief Executive Officer and Chairman, about half the loading volume and 60% of the freight turnover at OJSC Russian Railways now arise from transporting goods from the fuel and energy complex. The Company therefore plans to engage actively with this sector.

"We are seeing an increase in coal export volumes in all directions, and this is a key element. We are now moving to the second stage of upgrading the Baikal-Amur Main Line and the Trans-Siberian Railway and developing the approaches to the ports of South and North-West Russia. It is also planned to modernise the infrastructure on the Murmansk routes in order to diversify the volume of supplies" stressed Oleg Belozerov.

The Chief Executive Officer and Chairman noted that the Holding’s Long-Term Development Programme up to 2025 provides for investments of almost 9 trillion roubles. It was developed jointly, including with the Russian Federation’s Ministry of Energy, and takes into account the increasing volumes of energy exports.

"Russian Railways is the largest consumer of energy resources and accounts for 8% of the diesel fuel and nearly 5% of the electricity used in Russia. At the same time, we are the most energy-efficient railway company in the world! We are therefore very grateful to our fuel and energy complex and our network companies for giving us the opportunity to transport freight using the cleanest forms of energy," said Oleg Belozerov.

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