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The Russian Government, State Duma and Federation Council, as well as experts at the Organisation for Economic Cooperation and Development (OECD) and the European Conference of Ministers of Transport, have given positive assessments of the efficiency and effectiveness of the structural reform so far.

Since beginning operations, Russian Railways has consistently achieved systemic increases in the efficiency and quality of Russia’s rail transport in accordance with the objectives of structural reform and is meeting in full the growing demand for rail services.

  1. Russia’s Rail Sector
  2. Rail Freight Turnover
  3. Access to train services
  4. Labour productivity
  5. Reducing transportation costs
  6. Profit from the sale of stakes in subsidiaries and associated companies

Russia’s Rail Sector

Russia’s
   Rail Sector
Passenger Turnover Capacity Utilisation Freight Turnover

Rail Freight Turnover

Rail Freight Turnover

The proportion of rail freight in the country’s transport system during this period increased by 3 percentage points as the reform programme was implemented and led to increased operational stability and availability of rail transport.

Ongoing structural changes are increasing the flexibility of Russia’s transport system and the mobility of the population. In fact, the average annual increases in fares have kept pace with rising income since reforms began with the single exception of 2009, which was heavily affected by the global economic and financial crisis.

Access to train services

Access to train services

Safety, security and the quality of services provided by rail have improved significantly. The number of violations of transport safety in freight and passenger trains has been reduced by 23%, while average freight delivery is now more than 22% quicker than previously.

Quality indicators on the use of rolling stock have also improved. Between 2003 and 2009:

  • average daily productivity of freight cars rose 34% from 9,352 ton-km to 12,533 ton-km net;
  • average daily productivity of freight locomotives increased by 14.1% from 1,565 thousand ton-km to 1,786 thousand ton-km gross.

The internal efficiency of Russia’s railways has also increased significantly. Optimising consignments allowed us to handle increasing shipment volumes and increase labour productivity by more than 1.5 times - twice that of the economy (1.24 times).

Labour productivity

Labour productivity
Russian Railways Russia (average)

We have reduced the unit cost of fuel and energy for traction by 3.4% and achieved the highest level of efficiency of the transportation process in the history of Russia’s railways. This has led to a reduction of some 16% in transportation costs in real terms.

Reducing transportation costs

Reducing transportation
   costs

The structural reform agenda will ensure the dynamic development of competition in many areas of the rail business, especially the development of the following markets:

  • operating freight cars (an increase of 3.25 times);
  • repair of rolling stock;
  • products for the rail sector;
  • building and designing infrastructure;
  • long-distance and suburban passenger services.

In order to promote competition in rail transport, we have split-off Russian Railways’ enterprises as subsidiaries and associated companies and since the beginning of reform have set up 68 subsidiaries and affiliates.

We have also begun to attract investment to the sector by selling shares in these subsidiaries. The funds raised will finance infrastructure projects.

Profit from the sale of stakes in subsidiaries and associated companies

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rub
Profit from the sale of stakes
   in subsidiaries and associated companies
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