Federal<br/>Passenger Company Annual Report

Investment Structure

The investment programme of JSC FPC in 2013 totalled RUB 27.5 billion.

The bulk of investment (RUB 24.1 billion or 88%) went on the purchase of 395 passenger cars.

Second-class sleepers (162 cars at a price of RUB 5.5 billion) account for a major part of the cars purchased (41% of the total number of rolling stock units purchased).

In preparing the car purchase program, priority was given to the purchase of new rolling stock for particular routes promising cost effective use of cars. To that end, 99 cars with central heating (at a price of RUB 4.3 billion) and 2 luxury carriages (RUB 0.1 billion) were bought for a train set on the Moscow — Samara service in 2013.

In addition, in 2013, JSC FPC bought 82 RIC cars at a cost of RUB 10.7 billion for its international passenger service.

In order to provide mass passenger service to the Black Sea coast and delivery passengers to 2014 Olympic Games venues, the Company introduced 50 double-decker coaches on the route from Moscow to Adler at a cost of 3.4 billion roubles.

In 2013, JSC FPC spent RUB 0.9 billion on a project called “Passenger Rolling Stock Upgrade”, which included:

  • Overhaul and renovation of 9 cars at a cost of RUB 0.1 billion;
  • Installation of air decontamination systems and pellet-fired boilers in cars at a cost of RUB 0.2 billion;
  • Installation of new frames and bolsters at 1,520 mm trucks at a cost of RUB 0.1 billion;
  • Modernisation work at a cost of RUB 0.5 billion.

Renovation of depot facilities cost RUB 1.9 billion, including:

  • RUB 0.6 billion was spent on ensuring compliance of the fixed assets with the new technical requirements
  • RUB 0.3 and 0.4 billion was spent on the renovation of the facilities used to serve the Talgo and RIC rolling stock respectively
  • RUB 0.6 billion (raised by Vagon-Service) was spent on the renovation of the car washing, bead-blasting and painting facilities.

RUB 0.4 billion was invested in IT. In this area, priority is given to the e-ticket system development project, with a total investment of RUB 0.1 billion, and a revenue management system, the cost of which stands at RUB 0.2 billion.

Other JSC FPC’s investments include a 0.1 billion contribution to the charter capital of JSC FPC Logistics LLC, a subsidiary dealing with unaccompanied baggage operations.

The table below illustrates the structure of the 2013 investment programme by project types and actual progress:

Project type Investment size, RUB billion Share
Projects in progress 10.891 39.6%
Replacement of retiring fixed assets, resulting in an economic impact 4.407 16.0%
Cost effective projects 4.634 16.8%
Replacement of retiring fixed assets, resulting in a technological impact 5.716 20.8%
Technological and social projects 1.877 6.8%
TOTAL 27.526

Investment programme structure, RUB billion

Rolling stock purchase 24.08
Rolling stock modernisation 0.85
Depot facilities renovation and safety 1.91
IT projects 0.42
Other 0.27
TOTAL 27.53