Development of new attractively priced products and services and enhancement of the railway competitiveness against air and road transport are some of the Company’s priorities in this business line.
Dmitry Pegov Director for Passenger Transportation at Russian RailwaysIn 2017, Russian Railways transported over 1.1 billion passengers setting an eight-year record. The main driver behind that growth was the suburban segment with over 1 billion passengers transported.
Passenger transportation in 2017
In the long-haul segment, the Group seeks to provide all Russian regions with affordable passenger transportation alternatives. High-speed and ultra high-speed transportation developments are underway to encourage travel between major metropolitan areas. In the suburban segment, Russian Railways focuses on developing an affordable high-speed alternative to personal cars and public buses in large metropolitan areas.
For the first time in the last eight years, passenger transportation in 2017 exceeded 1.1 billion people posting a growth of 7.8 % y-o-y. Both suburban and long-haul transportation volumes were on the rise.
|Passenger turnover, bn pkm||124.5||122.9||–1.6||98.8|
|Long-haul transportation, including||93.5||91.1||–2.4||97.4|
|high-speed and ultra high-speed trains||4.6||6.1||1.5||132.6|
|Passengers transported, m||1,037.0||1,117.9||80.9||107.8|
|Long-haul transportation, including||101.4||102.2||0.8||100.8|
|high-speed and ultra high-speed trains||9.2||12.4||3.2||134.8|
Suburban passenger transportation
Suburban transportation services are provided by 25 suburban passenger companies (SPC), with Russian Railways, regional bodies of executive power, private investors and Aeroexpress among the co-founders.
Suburban passenger turnover rose by 2.8% y-o-y to 31.9 bn pkm. In 2017, 1,015.7 million passengers were transported in the suburban segment – a 8.6% increase vs 2016.
The 2017 growth was driven by a rise in certain suburban passenger categories, with students and full-price passengers adding 2.3% and 12.9%, respectively.
SPC performance in 2017
Suburban passenger companies' income from passenger transportation totalled RUB 65.4 bn, up 6% y-o-y, with 15 out of 25 carriers generating higher income as compared to 2016.
Transportation expenses amounted to RUB 72.4 bn, up 7% y-o-y. Due to the failure of Russian regional governments to fully reimburse the operators' lost income, as at 31 December 2017, suburban passenger companies had accrued payables totalling RUB 44.0 bn (including RUB 39.5 bn owed to Russian Railways). In 2017, aggregate net profit of SPCs (including Central SPC) reduced to RUB 284.6 m vs RUB 1.92 bn in 2016.
Moscow Central Circle performance in 2017
By the end of 2017, the number of passengers serviced by the Moscow Central Circle (MCC) on a daily basis saw a 1.6x increase, as the time interval between trains shrank to 5 minutes. On 14 December, a new record was set with over 430,000 people transported. In 2017, the MCC transported a total of 110.8 million passengers – a 4.1-fold increase compared to 2016 (27.16 million).
In 2018, the MCC is expected to transport 120.2 million people.
Progress on multimodal hubs in 2017
Creation of transport interchange hubs giving railway passengers an opportunity to switch to a different transport mode is the most successful approach to the integration of urban passenger systems. Such hubs are designed to ensure seamless passenger experience and efficiency of the transportation systems both in terms of technology and economics.
Pursuant to a trilateral agreement signed by the Ministry of Transport and Roads of the Nizhny Novgorod Region, Russian Railways and Volga-Vyatka SPC, works were launched in 2017 to build the Kanavinsky transport interchange hub, a facility included in the Infrastructure Programme for Hosting of the 2018 FIFA World Cup™.
Long-haul passenger transportation
In 2017, Russian Railways saw a long-haul passenger turnover of 91.1 bn pkm, or 97.4% vs 2016. A decrease in the turnover was driven by a slump in the distance travelled. The number of passengers transported stood at 102.2 million.
The following carriers are responsible for long-haul transportation: Federal Passenger Company, Grand Service Express TC, Tverskoy Express, TransClassService, Sakhalin Passenger Company, Kuzbass Suburb, Yakutian Railway, and High-Speed Transportation Directorate (branch of Russian Railways).
The share of long-haul transportation services provided by Russian Railways' subsidiaries and affiliates was as high as 94.9% of the passenger turnover. Trains made up by Federal Passenger Company accounted for 90% of total passenger turnover, with another 4.6% and 0.3% attributable to trains made up by foreign railways and other subsidiaries and affiliates of Russian Railways, respectively. Russian Railways accounts for 3.7% of passenger turnover, while the share of independent carriers stands at 1.4%.
Federal Passenger Company's performance
In 2017, Federal Passenger Company's passenger turnover totalled 87.0 bn pkm, down 2.8% y-o-y.
For the trains made up by Federal Passenger Company, passenger turnover along the route was 82.8 bn pkm, down 2.7% y-o-y (including 28.1 bn pkm, or up 8.4% y-o-y in the deregulated segment, and 54.6.bn pkm, or down 7.6% y-o-y in the regulated segment).
The reporting year saw over 95 million passengers transported by the Company. In 2017, Federal Passenger Company's income from core operations amounted to RUB 216.2 bn (up 7.5%), including RUB 193.7 bn from passenger transportation (up 7.5%).
Higher income from passenger transportation compared to the previous year is due to:
- tariff indexation by 3.9% in the regulated segment;
- VAT rate reduction from 10% to 0%.
Operating expenses and net profit for the year also went up from RUB 207.1 bn and RUB 5.3 bn in 2016 to RUB 210.0 bn and RUB 7.9 bn in 2017, respectively.
More information is available on the site.
High-speed passenger transportation
High-speed transportation services are provided by Federal Passenger Company and High-Speed Transportation Directorate (branch of Russian Railways). In 2017, high-speed and ultra high-speed passenger turnover grew by 32.6% to 6.1 bn pkm. The number of passengers transported by high-speed and ultra high-speed trains amounted to 12.4 million, or 135% against the previous year.
In 2017, double-unit Sapsan trains launched in August 2014 continued to run from Moscow to St Petersburg. On 28 June, the Sapsan train welcomed on board its 25-millionth passenger, and on 30 June, it transported a record high of 18.58 thousand passengers per day. The reporting year saw Sapsan trains carry over 5 million passengers (up 6.1% y-o-y) against a total of 9.3 million (up 5.7% y-o-y) transported along the Moscow–St Petersburg line.
As at 31 December 2017, the fleet of Federal Passenger Company featured 297 double-decker railcars. In 2017, double-decker trains transported over 3.3 million passengers (up 24% y-o-y), or 3.7% of total volumes transported by trains of Federal Passenger Company.
By December 2017, Federal Passenger Company had 27 five-car Lastochka trains in lease. In the reporting year, high-speed Lastochka trains transported over 4.8 million passengers (up 47.5% y-o-y), or 5.3% of total volumes transported by trains of Federal Passenger Company.
In 2017, the fleet of Federal Passenger Company featured 100 railcars making up high-speed Strizh trains. These trains operating on Moscow–Nizhny Novgorod and Moscow–Berlin routes transported some 1.2 million passengers (down 4.9% y-o-y).