Federal<br/>Passenger Company Annual Report

Key Areas and Objectives for JSC FPC Strategic Development in the Medium-Term

In February 2014, additional and advanced key areas and objectives for JSC FPC development in the medium-term were defined at the strategic session meeting; road maps were drawn up for the implementation of each of these, the relevant responsible individuals identified and a system to monitor the implementation of the following objectives was set up.

Reducing costs and enhancing process efficiency in the provision of rail services

  • Development and implementation of a series of measures, in cooperation with the executive authorities involved, to overhaul and update the technical maintenance and repair system for passenger rail carriages, aimed at cutting repair and maintenance costs;
  • Bringing repair and maintenance capacity in line with the new passenger services timetable, completing the passenger depot’s transition onto a two-shift working cycle and increasing the equipment load to at least 80–85%.

Improving the company’s financial stability given the lack of subsidies

  • Improving planning methods for anticipating budget revenues, by using market mechanisms and approaches to improve forecast accuracy and efficiency;
  • Eliminating excess capacity;
  • Developing a set of integrated solutions for the effective use of redundant space and manpower resources, based on concern for people, retraining requirements, education, advanced training and career enhancement and assistance in moving to new jobs and social adaptation;
  • Completing the transition to using software-based (target) approach to budgeting.

Improving JSC FPC customer focus

  • Improving the use of modern marketing tools (profitability management, loyalty scheme etc.);
  • Establishing an effective company product portfolio and service quality standards, based on the natural competitive advantages of rail transport;
  • Ensuring that the company reaches the level of the best companies in the industry in terms of sales;
  • Enhancing the range and improving the quality of additional services in trains;
  • Designing proposals and requirements for the establishment of a route network in the medium and long-term to ensure the improvement of the consumer aspects of rail travel.

Ensuring the company’s organisational development

  • Using corporate culture, business ethics and personal example to improve and refine company management style.

Improving the appeal of JSC FPC’s image on the transport services market and cooperation efficiency with the state authorities

  • Creating and maintaining a positive image for the company, based on using an objective information field in the ‘external environment’, on the benefits and advantages to the public of developing passenger rail services;
  • Building an effective communications system with internal and external target audiences;
  • Business activity at international forums with regard to inter-state transport services;
  • Assertion of JSC FPC interests with the federal authorities, regarding tariff policy, compensation for company losses from passenger services, the provision of infrastructure services and the support of draft legislation;
  • Cooperating with the regional authorities regarding domestic rail transport services;
  • Designing and developing proposals for the statutory and legal regulation of issues for the establishment of an express and high-speed integrated rail network in the Russian Federation;
  • Drafting of proposals to improve Customs Union customs legislation with regard to amending the legislative regulations and requirements affecting the operation of rail transport and services;
  • Drafting of proposals to establish and improve the statutory legal basis of the Single Economic Space, with regard to the operation of rail transport services and cooperation with the authorities of the Eurasian Economic Commission;
  • Preparation of a draft convention and appendices on direct international rail routes and communications.

Designing a new passenger service timetable to ensure maximum compliance with the demand for services

  • Improvement of the route network, based on maximising the specific ratios of costs and income for rail services;
  • Enhanced efficiency in the use of rolling stock;
  • Improving rail carriage deployment.

Improving productivity

  • Roll-out of breakthrough innovative technology in all management, production and support areas;
  • Full-scale automation of key company assets and management processes.

JSC FPC HR Development

  • Introduction of a competence-based approach and new staff appraisal tools;
  • Developing a methodology and procedure for assessing managers and expert personnel, gradually moving to the use of an integrated, automated appraisal system for company staff at all levels using the ‘360 degrees’ system;
  • Adaption of training programmes to develop the skills and competencies required for the implementation of the company’s strategy;
  • Developing a set of corrective measures to prevent staff burnout;
  • Revamping of the staff adaptation system to improve conditions for new-entrants and staff members and improving its efficiency;
  • Increasing staff loyalty and satisfaction;
  • Managing the development of the company’s young talent.