The company was created by the privatization of the property of the federal railway transport carried out in accordance with the legislation of the Russian Federation in 2003. In the process of privatization a single economic entity was created by withdrawing the property from the federal organizations of railway transport and its entry in the share capital of JSC "Russian Railways". The sole company’s shareholder is the Russian Federation. On behalf of the Russian Federation the authorities of the shareholder are implemented by the Government of the Russian Federation.JSC "Russian Railways" is one of the largest transportation companies in the world and is one of the largest enterprises in Russia.
Russian Railways provides a full range of services in areas such as freight transportation, provision of locomotive traction and infrastructure; repair of rolling stock; passenger transportation in the long-haul and suburban traffic; container shipping, logistics, engineering services; research and development activities; as well as other activities.
The company carries out projects for the construction of railways and the development of infrastructure in Serbia, Mongolia, North Korea, Indonesia, Austria and Slovakia, fully complying with its obligations under the concession management of the railway system in Armenia. The company has interest in the implementation of joint infrastructure projects in Vietnam, Ecuador, Brazil, Oman, Ethiopia, Iran, India and several other countries. In addition Russian Railways ensures effective development of rail and intermodal freight transportation in the Euro-Asian communication, including projects done in cooperation with partners in Kazakhstan, Belarus, Finland, Slovakia, Germany and China. Scientific and technical cooperation with leading companies in the field of transport engineering from Germany, France, Spain and other countries are actively developed - localization of modern rolling stock is done in Russia. Priority area is to strengthen cooperation with the railway administrations and companies of "Space 1520" - the main partners of Russian Railways for freight and passenger traffic.
The mission of Holding "Russian Railways" is the effective development of competitive transportation business on domestic and international markets, the core of such development being effective operations as the national rail carrier of freight and passengers, and the owner of the railway infrastructure of common use.
The target for the Russian Railways is to become the largest in the country and in the top three of pan-Eurasian transportation and logistics vertically integrated holding company, the rising cost of which will be achieved by improving internal efficiency, the entrance to the high-margin market segments of freight and passenger traffic, the development of new services, geographic diversification.
In order to combine expertise in the organization of the transportation process in the field of logistics activities, including the organization of cargo traffic, a range of services for cargo handling (terminal-handling activities, related services) and work with clients, a transport and logistics business unit, which includes specialized subsidiaries and affiliates, subsidiaries and business units, was created in the Holding "Russian Railways".
- Natural monopoly, which owns the world's third-longest rail network (more than 85,5 thousand km on December 31, 2018) and related infrastructure in Russia.
- Dominant position in freight transportation segments, as the world’s leader in terms of efficiency of freight transportation.
- Owns and operates nearly all of the locomotives in Russia, consisting of about 14 306 units as at December 31, 2017.
- The Company together with its subsidiaries is the largest Russian owner, operator and lessor of freight rolling stock of more than 164 thousands units as at December 31, 2017.
- One of Russia's largest companies in terms of assets: in accordance with the IFRS Statements of the company their value was estimated at about RUB 4.5 trillion (about USD 77.6 billion) as at December 31, 2017.
- One of the largest single contributors to Russian GDP, according to preliminary estimates was about 1.4% of the GDP in 2017; revenues for all activities in 2017 amounted to RUB 2,251.7 billion (in accordance with the IFRS Statements).
- The largest commercial employer in Russia with about ca. 735 thousand employees in Holding as of the end of 2018.
- A responsible corporate citizen with ca. RUB 23 billion investment into social development projects in 2017.
The Russian Context
- Because of the country’s huge territory and vast natural resources, a highly developed railway system is vital to Russia - rail is the key transportation mode in Russia with over 87% of the total volume (excluding the pipeline).
- Many of Russia’s natural resources are in remote, harsh and sparsely populated regions of Siberia and the Russian Far East that have underdeveloped road infrastructure and are far removed from the main population centres in European Russia.
- Railways connect 80 of Russia’s 85 regions and provide services to most major cities, having a direct impact on growth, industrial development and regional integration.
- Much of the population relies on the railways because of the limited road networks, huge distances and the remoteness from large parts of the country.