Russian Railways investment budget in 2015 amounts to 414.1 billion rubles.
More than a half of the investments in 2015 are planned to target implementation of the projects based on the instructions from the Government of the Russian Federation and the President of the Russian Federation realization of which is carried with the help of the Government support.
In 2015 are scheduled initiated projects on BAM and Transsib modernization, Mezhdurechensk – Tayshet regiin complex reconstruction, Moscow transport hub development.
Active works will be carried out on development and renovation of the railway infrastructure near the Azov-Black Sea basin, building of the Prokhorovka-Zhuravka-Chertkovo-Bataisk railway line (new railway line on Zhuravka-Millerovo).
In 2015 works on carrying capacity progress will continue: Mga-Gatchina-Weimarn-Ivangorod road section reconstruction; Tobolsk-Surgut-Korotchaevo road section development; construction and reconstruction of engineering structures; second track construction; classification yards development.
Alongside with the head projects there will be also improvement of transportation process security: renovation of automatic services and telemechanics; electrification and electricity supply system; renovation of locomotive fascilities main funds. In order to boost transport accessability continue works on the passenger fascilities main funds (long-distance and suburban) and other projects dealing with scientific and constructive works, social development projects with contributions to other companies' authorized capital.
The pace of Russian economic development requires an appropriate improvement and development of the country’s railway infrastructure since rail is Russia’s main transport system.
The investment programme at Russian Railways is designed to deal with the following main tasks:
- eliminating bottlenecks on the rail network’s main routes, taking into account the future volume of traffic, by constructing additional main track, developing railway stations, modernising automation and communications systems and carrying out other work
- renewing rolling stock
- ensuring the operational reliability and security of the transportation process by reducing the depreciation of fixed assets, increasing the reliability of equipment, devices and machinery and ensuring that they meet modern standards
- imparting to the railway infrastructure new performance and operational characteristics by increasing its ability to handle heavy freight trains and passenger trains travelling at faster speeds or with new dimensions
The Investment Budget at Russian Railways in 2014 amounts to 393.1 billion roubles.
In 2014, Russian Railways will continue large-scale infrastructure development. Above all, the Company's plans focus on the implementation of capital projects which have a significant influence on the development of the country's economy.
In the first instance, this involves the realisation of projects to implement instructions and orders from the President of the Russian Federation and the Government of the Russian Federation.
As a result of decisions made by the Government of the Russian Federation, state support in 2014 will be used to finance the modernisation of railway infrastructure (the Baikal-Amur Main Line and the Trans-Siberian Railway), a comprehensive reconstruction of the section between Mezhdurechensk - Taishet, the reconstruction of the section between M. Gorky - Kotelnikovo - Tikhoretskaya - Krymskaya, with a bypass around the Krasnodar Hub, as well as the development of the railway infrastructure of the Moscow Transport Hub.
Implementing the project to develop the railway infrastructure of Eastern Russia (Baikal-Amur Main Line and the Trans-Siberian) will not only enable the largest Russian companies to haul a further 55 million tons of freight annually, but will also contribute to the development of industrial enterprises in the region, create jobs and generate the necessary economic conditions for the effective and sustainable development of Siberia and the Far East.
Work on the comprehensive reconstruction of the section between Mezhdurechensk – Taishet is aimed at providing freight rail transport for clients of the Company' services and developing freight flows over the long-term, primarily from the Kyzyl – Kuragino line (Elegest coal field) in the amount of 12 million tons per annum to the ports of the Far East.
The measures to develop the railway infrastructure of the Moscow transport hub are aimed at increasing the through capacity and processing ability of the railway infrastructure as passenger traffic increases on the sections of the Moscow railway hub.
The aim of the investment project "Comprehensive Reconstruction of M. Gorky - Kotelnikovo - Tikhoretskaya - Krymskaya with the construction of a bypass around the Krasnodar Hub" is to reconstruct the railway infrastructure for the delivery of freight to the ports of the Azov- Black Sea Transport Hub (Novorossiysk, Tuapse, Kavkaz, Temruk and the new seaport of Taman), as well as to optimise operations at the Krasnodar hub and bypassing it by switching freight traffic to the section Timashevskaya - Krymskaya.
The total investment in projects required in order to implement instructions issued by the Government of the Russian Federation in 2014 is planned to reach 100.2 billion roubles, which is a quarter of the Company's total investment budget.
45.3 billion roubles in 2014 will be spent on projects related to safety and security. It is planned to spend the main part of the investment funds on updating automation and remote control devices, equipment and electric power and communications devices, as well as on the implementation of a two-way automatic blocking system.
Another important target for the Company's investment activities is the removal of infrastructure bottlenecks on the railway infrastructure. Russian Railways has allocated 123.2 billion roubles to achieve this aim in 2014.
These funds will be used to complete projects to increase the through capacity of the railway network.
In 2014, it is also planned to continue the reconstruction of the Mga - Gatchina - Vaimarn - Ivangorod section and railway approaches to ports on the southern shore of the Gulf of Finland, start high-speed passenger traffic on the stretch between St. Petersburg - Buslovskaya (Stage 2), develop the section between Tobolsk - Surgut - Korotchaevo and commence the complex reconstruction of the stretch between Trybnaya - V. Baskunchak - Aksaraiskaya.
The Company's investment will not only focus on the development of infrastructure however, but also on renovation projects whose implementation is necessary to ensure the stable and safe operation of rail transport: the reconstruction of railway lines and the construction and reconstruction of artificial facilities.
For the upgrade of the railway lines, 75.5 billion roubles have been allocated in 2014. This will enable the reconstruction of 3,950,000 km of railway track (including the purchase of Russian-made rails).
It is planned to spend 101.1 billion roubles on rolling stock in 2014. The bulk of these funds (83.3 billion roubles) will go on renewing locomotives. Investments envisaged in the draft for the investment budget will allow the purchase of 629 new locomotives in 2014.
The Company will spend 13.3 billion roubles on other projects, including measures to improve transport accessibility for the population, in particular the infrastructure of the suburban commuter and long-distance passenger business, the introduction of resource-saving technologies and the development of the social sphere etc.
The Russian Railways' 2013 investment programme can be characterised as having:
- high capital intensity of investment projects;
- strategic importance for the state and the economy;
- a high priority in executing most projects (often irrespective of estimates regarding the commercial viability of the projects);
- provided unconditional participation of the state as one of the sources of funding for railway infrastructure development projects requiring considerable capital.
Total funds envisaged for the 2013 Investment Budget of Russian Railways amounted to 467.5 billion roubles, implementation at the end of the year amounted to 467.2 billion rubles, or 99.9%
In order to increase transparency in the use of investment funds, in 2013 the Russian Railways' Investment Budget was presented as a series of independent sections showing the distribution of funds based on the priority for their implementation in the context of key challenges:
- projects related to the implementation of instructions from the Government of the Russian Federation;
- safety and security;
- removing infrastructure bottlenecks;
- improving transport access for the population;
- renewing rolling stock;
- other projects.
In 2013, the Company fulfilled all the targets set for the current year, including the implementation of projects required to fulfil instructions from the Government of the Russian Federation.
The most significant and capital intensive project is the Combined (road and rail) Link between Adler – Alpika Service Skiing Resort with the construction of a second continuous railway line between Sochi – Adler – Vesyoloe, whose implementation is being carried out in order to ensure the transportation of spectators and participants in the Olympic Games by rail and road to the mountain stadium Krasnaya Polyana and the ice palaces in the Olympic Park in the Imeretinsky Valley.
Implementation of the project began in 2008 and was mostly financed from the federal budget, with the actual cost amounting to about 272 billion roubles.
In accordance with the approved schedule, work was also carried out on other projects whose construction was undertaken out in preparation for the XXII Olympic Winter Games to be held in Sochi in 2014.
The construction of the freight yard in the Adler district of Sochi was completed, while safety and security features have been installed at the Olympic facilities belonging to the mountain cluster infrastructure.
In 2013, the project "Organising Intermodal Transport from Kazan Train Station to Kazan International Airport" was completed. This project was undertaken in order to provide transportation at the XXVII World Summer Universiade, which was held in Kazan in 2013.
In the current year, work continues on the integrated project "Development of the Moscow Transport Hub." Ultimately, implementing the whole range of measures to develop railway infrastructure projects on the Moscow transport hub should lead to 1 billion passengers a year by 2020 and ensure the accessibility of the Moscow Airport Hub in view of the projected increase in passenger traffic. Further projects will also be implemented to organise high-speed electric train services between Moscow and its satellite towns, which will significantly reduce the load on suburban railway traffic, reduce travel time and create a comfortable environment for passengers.
As part of a comprehensive plan, the project "Establishment of High-Speed Trains between Moscow – Novoperedelkino" was completed.
The financing for the development of infrastructure on the Moscow Transport Hub came from the federal budget and the Company's own funds.
The Moscow Railway Hub is the largest hub on the railway network of Russian Railways. It a hub-and-spoke structure with 10 directions and Greater and Smaller Circumferential Rings.
In 2013, as part of its investment budget, Russian Railways launched projects to develop railway infrastructure in Eastern Russia. The Government of the Russian Federation made a decision to provide more than 260 billion roubles in public financing for the development and modernisation of the railway infrastructure of Eastern Russia up to 2018.
In order to ensure safety in 2013, the following key measures were implemented:
- fire safety (electric interlocking positions, stations);
- reconstruction and construction for technical and communal purposes;
- upgrading facilities belonging to the terminal and warehouse complex;
- ensuring the security of vital functions;
- ensuring the technological stability of the production process.
The section on removing infrastructure bottlenecks includes projects to increase through capacity on access routes to Russia's major ports and develop the infrastructure of the other directions (construction of additional main lines, extending station receiving and departure tracks, development of railway hubs). In 2013, within the framework of the above projects, implementation of a set of technical and technological measures continued in order to ensure the passage of the forecast freight flows through railway sections and stations. The bulk of the investment allocated to address this problem was assigned to the following projects:
- complex reconstruction of the stretch between Mga - Gatchina - Vaimarn - Ivangorod and the rail access routes to ports on the southern shore of the Gulf of Finland;
- the development of high-speed passenger traffic between St. Petersburg - Buslovskaya;
- comprehensive reconstruction of the section between Trybnaya – V. Baskunchak – Aksaraiskaya;
- the development of the stretch between Tobolsk - Surgut;
- the complex reconstruction of the stretch beween Karymskaya - Zabaikalsk (electrification of the stretch between Borzya - Zabaikalsk, development of Zabaikalsk station) and other stretches;
- Reconstruction of the section between Komsomolsk-on-Amur - Sovetskaya Gavan, with the construction of a new Kuznetsovsky tunnel etc.
As part of the project "Construction and Reconstruction of Artificial Structures", the following facilities have been commissioned: a tunnel at the 1436th kilometre on the section between Agryz – Druzhinino Gorky, a bridge over the Nitsa Sverdlovsk river, the Obluchinsky tunnel (Phase 1) on the stretch between Obluchye – Izvestkovaya on Far Eastern Railways, as well as 33 small and medium-sized man-made structures and facilities and 15 objects filled in with roadbed.
To reduce non-production injuries, 6 reconstructed pedestrian bridges were commissioned at Kurovskaya, Shatura, Uyar, Zabaikalsk and Pervaya Rechka stations and the 64th kilometre on the section between Kholmsk – Severnyi on Moscow, Krasnoyarsk. Transbaikal and Far Eastern Railways.
In order to improve transport accessibility for the population of the country, projects were implemented aimed at the renewal of fixed assets in the (commuter and long-distance) passenger business aimed at reconstructing passenger facilities, platforms and stations.
Within the framework of the project "Reconstruction of the Long-Distance Railway Station Complex" the reconstruction of Leningrad, Paveletsky, Yaroslavl, Belarusian, Riga and Savelovsky stations in Moscow was completed.
In the section on renewing rolling stock, a major part of the funds in 2013 were allocated to updating traction rolling stock, which allowed the Company to purchase 804 locomotive units.
Besides traction rolling stock, 450 motor car units were also purchased in 2013. The purchase of suburban rolling stock by Russian Railways is part of its investment programme and is needed to maintain the fleet's technical condition at the level required to provide quality services for passengers on suburban routes.
In the section on other projects in 2013, funds were directed to:
- the introduction of technologies to save resources and energy,
- contributing funds to the share capital of the joint stock companies;
- acquiring shares in other third-party organisations;
- social development projects.
The initial investment budget for 2012 at Russian Railways was approved by the Board of Directors on 29.11.2011 and at 428.4 billion roubles was the largest in the Company’s history. However, due to a combination of measures to reduce costs and increase the Company’s efficiency in 2012, the investment budget was increased by 12.4% to 53.2 billion roubles. In addition in December 2012, the investment budget of the Company has been optimized for the amount of 10.7 billion rubles.
As a result, the total investment budget at Russian Railways in 2012 amounted to 481.6 billion roubles.
The main priorities of the 2012 investment programme are as follows:
- implementing government programmes to prepare railway infrastructure for the APEC summit in Vladivostok in 2012, the Summer Universiade in 2013 and the 2014 Winter Olympic Games in Sochi - about 73.2 billion roubles
- ensuring transport security and safety - about 67.9 billion roubles
- implementing projects to remove infrastructure constraints and bottlenecks - about 178.5 billion roubles
In order to put the right railway infrastructure in place for the APEC summit, Universiade and the Olympic Games, the following projects were conducted:
- combined rail and road link between Adler - Alpika Service mountain resort
- intermodal passenger transport between Kazan railway station and Kazan International Airport
- intermodal passenger transport between Vladivostok and Vladivostok Airport
In order to ensure transportation safety and security, the Company carried out the following activities:
- the improvement of traffic safety and security
- the upgrading of companies and enterprises involved in the track complex and permanent way complex
- environmental safety
- fire safety (electric switching points, stations)
- a programme of corporate informatisation (automated transportation process)
Projects associated with the removal of infrastructure constraints include increasing the capacity on approaches to Russia’s major ports and improving the public’s access to transport.
In 2012, the Company will therefore continue to implement major investment projects such as:
- the complete reconstruction of the stretch between Mga - Gatchina - Veimarn - Ivangorod and of railway approaches to the ports on the southern shore of the Gulf of Finland
- the reconstruction the stretch between Komsomolsk-on-Amur - Sovetskaya Gavan with the construction of a new Kuznetsovsky tunnel
- the comprehensive reconstruction of the stretch between Maxim Gorky - Kotelnikovo - Tikhoretskaya - Krimskay with a bypass around the Krasnodar hub
- the development of the Moscow transport hub the construction of an additional main line between Moscow - Kryukovo
Russian Railways sent 75.7 billion roubles on rolling stock in 2012 and, in particular, bought about 532 locomotives and 475 car units.
In 2012, 10,400 km of track was undergo various kinds of repair - the same amount as in 2011.
In addition, the Company was reconstructed more than 370 km of the contact system and upgraded more than 762 electric switching points.
Structure of Russian Railways Capital Investments (Million Rubles, excluding VAT)
|Total, including:||480 066.9||467 220.1||396 831.1||414 128.6|
|Projects related to the implementation
of instructions from
the Government of the Russian Federation
|96 758.3||95 941.1||68 780.9||198 741.6|
|Intermodal passenger transport between Vladivostok - Knevichi Airport organisation||1 460.0|
|Development of railway infrastructure to serve the transport needs of the XXVII World Summer Universiade 2013||7 460.2||1 827.9|
|Combined (Road and Rail) Link between Adler - Alpika Service Ski Resort with the construction of a continuous second railway line between Sochi - Adler - Vesyoloe||57 978.6||38 800.8||800.0|
|Infrastructure development in preparation for the Olympic Games||6 544.0||5 417.1|
|Comprehensive reconstruction of the section between M. Gorky - Kotelnikovo - Tikhoretskaya -Krymskaya with a bypass around the Krasnodar Hub*||6 451.4||1 518.7||3 838.9||9 933.2|
|Integrated development of the section between Mezhdurechensk -Tayshet at Krasnoyarsk Railways*||2 199,9||1 709.0||4 830.6||9 715.1|
|Modernisation of the railway infrastructure on the Baikal-Amur and Trans-Siberian Main Lines with the development of through and carrying capacity*||4 072.8||21 913.1||124 711.1|
|Development of the Moscow Transport Hub (including construction of an additional main line between Moscow - Kryukovo**||14 516.2||42 309.4||36 864.2||42 819.4|
|Second track construction and electrification on Vyborg-Primorsk-Ermilovo railway section||148,0||285.3||534.1||4 562.8|
|Construction of Prockhorovka-Zhuravka-Chertkovo-Bataisk railway line||7 000.0|
|Russian Railways’ own projects:||383 308.6||371 279.0||328 050.2||215 387.0|
|Ensuring rail transport safety||66 858.2||56 107.6||46 744.6||45 091.6|
|Removing infrastructure constraint||169 342.8||161 435.1||139 928.2||61 295.9|
|Improving the Russian population's access to transport||21 758.9||17 217.5||12 850.5||5 609.6|
|Renewing rolling stock,including:||75 520.2||118 682.4||104 703.1||88 477.5|
|Traction rolling stock||61 944.3||92 455.6||84 112.9||65 860.6|
|Freight rolling stock||236.3||221.3||274.5||332.6|
|Passenger and freight rolling stock (purchase of leased property)||635.1||149.6|
|Motorised train units||12 704.5||25 856.0||20 315.7||22 284.3|
|Other Projects||49 828.5||17 836.5||23 823.8||14 912.4|
* - in previous years, projects were effected in the section "Removing Infrastructure Bottlenecks";
** - in previous years, projects were effected in the section "Improving the Population's Access to Transport".