Federal<br/>Passenger Company Annual Report

Mid-Term Investment

The Company is planning to buy 140 Talgo cars in 2014-2015 in order to launch international express service on the Moscow-Berlin and Moscow-Kiev routes.

The project has the following goals:

  • Provide comfortable service and reduce the travelling time
  • Increase passenger numbers on these routes
  • Improve ROI
  • Achieve a substantial improvement of RZD Holding’s image and brand awareness in the international market

The development of interregional passenger service with double-decker rolling stock is another investment priority. For that end, the Company is planning to purchase 79 sitting cars at a cost of RUB 5.08 billion in 2015-2016, including:

  • 65 cars (4 trains) for the Moscow — Voronezh route in 2015
  • 14 cars (1 train) for the Moscow — Veliky Novgorod route in 2016

According experts’ estimates, a total of 219 cars of this type is needed.

In 2014-2016, the Company is going to continue purchasing new rolling stock to replace retiring vehicles, giving priority to premium service trains. A total of RUB 10.8 billion (251 cars) is planned to be spent to this end, including:

  • RUB 5.2 billion (127 cars) in 2014
  • RUB 4.1 billion (92 cars) in 2015
  • RUB 1.5 billion (32 cars) in 2016

In addition, 208 cars are planned to be purchased at a total cost of RUB 10.1 billion to replace the old ones whose service life ends in 2016 when the peak of rolling stock retirement is expected. Additional calculations are required to assess the cost efficiency of the purchase and determine the routes that new cars should be used on.

Planned Structure of JSC FPC’s Investment Programme for 2014

Programme Amount, RUB billion
Rolling stock purchase 21.3
Rolling stock modernisation 0.9
Depot facilities renovation 1.6
IT projects 0.5
Other projects 0.4
Total 24.6