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 2013 investment programme at Russian Railways involves:
- investment projects requiring high amounts of capital;
- 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);
- unconditional government participation as one of the sources for funding capital projects to develop railway infrastructure.
Russian Railways has allocated a total of 439.5 billion roubles to its investment budget in 2013.
In order to increase transparency in spending its investment funds, Russian Railways has presented the allocation of money in the 2013 investment budget as separate independent sections, based on the priority of their implementation in the context of key tasks:
- projects related to implementing instructions from the Government of the Russian Federation - 50.0 billion roubles;
- security - 52.3 bn;
- the removal of infrastructure constraints and bottlenecks - 157.4 billion roubles;
- improving the Russian population's accessibility to transport - 48.5 billion roubles;
- renewing rolling stock - 112.6 billion roubles;
- other projects - 18.6 billion roubles.
In order to execute the instructions of the Government of the Russian Federation regarding the development of the railway infrastructure necessary for the 2014 Winter Olympic Games in Sochi and the XXVII World Summer Universiade in 2013, it is planned to implement the following projects:
- development of the railway infrastructure to provide transport services during the XXVII World Summer Universiade 2013;
- construction of a combined (road and rail) link between Adler - Alpika Service Mountain Resort;
- strengthening the infrastructure of the Tuapse-Adler railway line;
- development of the railway infrastructure to meet the need for transportation services during the preparation and holding of the 2014 Winter Olympic Games in Sochi.
In order to ensure security in 2013, Russian Railways will finance the following key measures:
- 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.
Removing infrastructure constraints and bottlenecks includes major projects such as:
- the complete 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;
- the complete reconstruction of the stretch between Gorky - Kotelnikovo - Tikhoretskaya - Krimskaya with a by-pass around the Krasnodar hub;
- the development of the stretch between Tobolsk - Surgut;
- the complete reconstruction of the stretch beween Karymskaya - Zabaikalsk (electrification of the stretch between Borzya - Zabaikalsk, development of Zabaikalsk station) and other stretches.
The following projects are planned as part of the section to improve the Russian population's accessibility to transportation:
- replacement of fixed assets in the passenger services division (both commuter and long-range) in order to reconstruct passenger facilities, platforms and stations.
- the development of the railway infrastructure of the Moscow transport hub.
The funding for developing the infrastructure of the Moscow transport hub will come from the federal budget and the Company's own funds.
The Moscow railway hub is the largest in the railway network of Russian Railways and consists of a radial-ring structure fanning out in 10 directions and the Large and Small Circular Belt Railway Lines.
As part of its investment budget, Russian Railways will continue to implement a number of projects in 2013 to develop the railway infrastructure of the Moscow transport hub, such as:
- reconstruction of the Small Ring on Moscow Railways (railway infrastructure);
- faster train services on the routes between Moscow-Novoperedelkino, Moscow-Odintsovo and Moscow-Usovo;
- construction of additional main tracks between Moscow-Kryukov, Domodedovo (Aviatsionnaya)-Domodedovo Airport, as well as on the northern section of the Large Moscow Circular Belt Ring (81 km post - Dmitrov - Iksha - Povarovo).
It should be noted that in 2013 it is planned to launch high-speed electric trains between Moscow-Novoperedelkino.
Overall, implementing the full range of measures on these projects will ensure that by 2020 the system will have the capacity to handle up to 1 billion passengers a year and provide access to the Moscow aviation hub airports as required by the projected increase in passenger traffic. In addition, projects will be implemented to provide faster trains between Moscow and its satellite towns, which will significantly reduce the congestion in suburban railway services, reduce travel time and create a comfortable environment for passengers.
In 2013, Russian Railways plans to spend 112.6 billion roubles on renewing rolling stock. Most of these funds - 84.7 billion roubles - will go on purchasing 770 traction vehicles to renew and upgrade the locomotive fleet.
In addition to traction vehicles, in 2013 the Company will spend 26.8 billion roubles on renewing motorised train units. The purchase of suburban rolling stock by Russian Railways as part of its investment programme is necessary in order to maintain the fleet's technical condition at the level required to ensure that passengers on suburban routes are provided with the appropriate quality of service.
In 2013, 18.6 billion roubles have been allocated to the implementation of other projects which will focus on:
- 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.
In 2011, the total funds allocated to the Company’s investment budget amount to 396.3 billion roubles, 26% more than in 2010 (317.4 billion).
The investment priorities in 2011 are to:
- develop rail infrastructure in preparation for conducting the 2014 XXII Olympic Winter Games and XI Paralympic Winter Games in Sochi
- provide transportation services for the XXVII World Summer Universiade to be held in 2013 in Kazan, the capital of the Republic of Tatarstan, and for the summit meeting of the Asia-Pacific Economic Cooperation (APEC) scheduled for Vladivostok in 2012
- develop railway infrastructure to the approaches to Russian ports
- improve the safety and security of the transportation process
In addition, in 2011 Russian Railways is continuing to implement projects aimed at increasing the through capacity of sections of the rail network.
In order to develop approaches to the ports in Russia’s North-West region, the Company is also continuing essential work on the following projects; the "Complex reconstruction between Mga-Gatchina-Vaimar-Ivangorod and railway approaches to ports on the southern shore of the Gulf of Finland," the "Reconstruction of railway track" and the "Construction and reconstruction of permanent structures"
The main projects aimed at developing approaches to the ports of Southern Russia are the "Complex reconstruction of the Maxim Gorky-Kotelnikovo-Tikhoretskaya-Krimskaya stretch with a bypass around the Krasnodar hub," the "Complex reconstruction of Trubnaya-Verkhnya Baskunchak-Aksaraiskaya" and the "Construction of the second track, extension of station tracks, the development of railway hubs and the development of sorting yards,"
The development of the Trans-Siberian Line, the Baikal-Amur Mainline and the approaches to the ports of Russia’s Far East is part of projects "Reconstruction of the line between Komsomolsk-on-Amur - Sovetskaya Gavan with the construction of a new Kuznetsovsky Tunnel," the "Complex development of the stretch between Mezhdurechensk - Taishet on Krasnoyarsk Railways" and the "Construction of the second track, the extension of station tracks, the development of railway hubs and the development of marshalling yards”.
In order to improve accessibility of Russia’s population to transport, Russian Railways plans to implement the projects "Construction of additional main track on the route between Moscow - Kryukova," the "Development of intermodal passenger transport on the route between Vladivostok - Knevichi airport" and the "Development of railway infrastructure to provide transport services for the XXVII World Summer Universiade in 2013”.
Overall in 2011, it is scheduled to invest funds in the amount of 346.1 billion roubles. Over 186 km of second track, 170 km of station tracks and the electrification of over 190 km of track are due to be commissioned. Also planned is the upgrade of over 751 electric centralised points, the automatic blocking signal system on 170 km of track and of about 32 traction substations.
In 2011 it is planned to finish work on these major structures:
- reconstruction of the Large Novorossiysk Tunnel
- reconstruction of the Krolski Tunnel on the stretch between Abakan – Taishet
- reconstruction of the bridge for down trains across the River Zeya at the 7,817th km of the stretch between Skovorodino – Belogorsk
- reconstruction of the bridge over the Moscow River at 16th km of the 1 and 2 tracks of the line between Moscow – Kursk
- reconstruction of the bridge and one track over the River Volga at the 754th km on the stretch between Kanash – Agryz
- bridge over the river Nerl at the 202nd km between Moscow - Nizhny Novgorod
Russian Railways plans to spend 66.5 billion roubles on renewing its rolling stock. In particular, the Company expects to purchase 453 units of traction rolling stock and 526 units of motorised railcar rolling stock.
In addition, in 2011 Russian Railways will continue to improve the management of its investment activities with regard to the further development its project management approach in implementing the Company’s Investment Programme.
Russia’s financial and economic situation exerted a significant influence on the development and parameters of the 2010 Investment Budget at Russian Railways.
Initially, the 2010 Investment Budget was planned to be 270.5 billion roubles, but in the course of the year, Russian Railways decided to increase the Investment Budget as the Company refined its investment plans in terms of production indicators and the need to increase investment expenditures, for example in connection with projects related to the preparations for and hosting of the 2014 Winter Olympic Games in Sochi and improved transport safety.
The total amount of funds provided for the Company’s 2010 Investment Budget amounted to 315 billion roubles, including 70 billion roubles for the construction of the combined (road and rail) route between Adler - Krasnaya Polyana. These funds came from the federal budget and were paid into the Company’s charter capital.
The investment budget during 2010 actually amounted to 317.4 billion roubles, 0.8% above the plan. This figure includes 0.6 billion roubles which were raised from a variety of sources.
In 2010, a significant amount of the Company’s investment was targeted at projects related to the preparation and implementation of the Olympic Games.
The implementation of these Olympic projects is being carried out in accordance with a government programme for the construction of Olympic facilities and the development of Sochi as a mountain and health resort, as well as the schedule approved by the Supervisory Board of the government-owned company Olympstroy.
The targets for the 2010 Olympic projects were all implemented in full.
Significant capital investments were undertaken to upgrade and modernise locomotives, rolling stock, track facilities, safety and security and information systems, as well as to improve the cost-effective use of energy and resources.
It is worth noting that in these circumstances, Russian Railways made an important step in developing and improving its investment management by switching to the project principle in drawing up the Company’s Investment Programme, a move which ensures the selection and implementation of the most efficient investment projects.
The Company’s process of reviewing and analysing potential investment projects provides for, among other things, an assessment of the investment risks involved (macroeconomic, sectoral and financial, etc.), as well as for the development of a range of integrated measures to prevent or reduce such risks.
The introduction of a project management system at Russian Railways is aimed at improving the effectiveness of projects by developing reliable information about the project’s implementation and presenting it in a timely manner to the Company management and other members of the investment process. This approach facilitates the development of timely and effective management decisions to eliminate (or reduce) the negative factors associated with project risk.
To improve the efficiency of limited investment resources, Russian Railways also maximised the use of assets under construction. In addition, when implementing the 2010 Investment Budget, projects were given priority which were aimed primarily at the completion of pre-existing construction projects. The Company focused its main attention on meeting targets whose completion was planned in one year, observing planning and financial discipline in completing the investment budget, observing cost factors and ensuring the timeliness and regular, rhythmical commissioning of objects.
The implementation of the Company’s 2010 Investment Budget saw the commissioning of 2.49 kilometres of new lines, 116 km of second track and 96.5 km of station tracks. In addition, 8.5 km of track were electrified and 792 electric centralised points installed and 106.4 km of track fitted with an automatic block signal system.
In addition, a number of large facilities were completed and commissioned, such as the:
- reconstruction of railway bridges over the Obvodny channel in St. Petersburg
- reconstruction of the bridge flyover over the River Oka at the 107th km and of two tracks between Moscow - Ozherely at Moscow Railways
- reconstruction of the bridge the Chuna River at the 124th km on the line between Taishet - Lena and numerous others
- Small Novorossiysk Tunnel (new double track)
In general, the implementation of the 2010 Investment Budget at Russian Railways made it possible to increase both the through capacity and the carrying capacity of lines and routes on the railway network which were previously constrained by various bottlenecks, as well as improving traffic safety and carrying out routine operating performance – and all this with the limited investment resources available.
Breakdown of Russian Railways Capital Investments (Million Roubles Excluding VAT)
|Total, including:||265 580.9
||480 066.9||439 459.3|
|Projects related to the implementation of instructions from
the Government of the Russian Federation
||89 198.4||72 586.3||73 442.8||50 042.5|
|The development of railway infrastructure to provide transportation services
at the XXVII World Summer Universiade in 2013
|4 005.9||7 460.2||1 347.4|
|The combined (road and rail) link Adler-Alpika-Service Mountain Resort with
the construction of a continuous second railway track
|40 000.1||73 112.1||55 054.8||57 978.6||42 840.7|
|Development of infrastructure in preparing and conducting
the Winter Olympic Games in Sochi in 2014
|7 793.2||15 438.1||8 747.4||6 544.0||5 854.4|
|Russian Railways’ own projects:||217 787.1||228 188.5||322 819.6||406 624.1||389 416.8|
|Ensuring rail transport safety||35 067.4||53 016.4||75 612.3||66 881.1||52 345.2|
|Removing infrastructure constraints
and bottlenecks in the Russian regions
|91 899.2||99 634.7||141 839.8||178 102.7||157 390.7|
|Improving the Russian population’s access to transport, including:||9 571.9
||19 918.6||36 275.0||48 482.0|
|The development of the Moscow transport hub||190.5||1 381.8||3 991.6||14 516.2||31 354.7|
|Modernising the infrastructure of suburban passenger transport||5 084.0||3 966.9||8 208.4||10 975.5||7 800.0|
|Introducing an automated passenger control and accounting system||355.5||413.3||451.4||507.5||300.0|
|Reconstructing long-distance railway stations||3 312.1||3 468.8||6 165.5||10 276.0||6 647.1|
|Renewing rolling stock, including:||66 904.6||50 335.5||66 441.8||75 520.2||112 583.5|
|Traction rolling stock||26 398.9||34 878.5||50 843.1||61 944.3||84 672.1|
|Freight rolling stock||4 189.3||91.0||231.5||236.3||300.0|
|Passenger and freight rolling stock (purchase of leased property)||87.4||3 212.3||635.1||800.7|
|Motorised train units||9 871.2||10 962.5||11 674.8||12 704.5||26 810.7|
|Other Projects||14 344.0||15 967.0||19 007.1||49 805.5||18 615.4|