Headquarters of the Russian Railways in Moscow.
|Open joint-stock company|
|Predecessor||Ministry of Railways of the Russian Federation (1992-2004)|
|Founded||September 18, 2003|
|Headquarters||Red Gates Square,|
| Oleg Belozyorov (President)|
Arkady Dvorkovich (Chairman of the Board)
|Services||Rail transport, Cargo|
|Revenue||$38.6 billion (2017)|
|$3.47 billion (2017)|
|$2.39 billion (2017)|
|Total assets||$76.6 billion (2017)|
|Total equity||$41.3 billion (2017)|
|Owner||Russian Government (100%)|
Number of employees
Russian Railways (Russian: ОАО «Российские железные дороги» (ОАО «РЖД»), translit. OAO Rossiyskie zheleznye dorogi (OAO RZhD)) is a Russian fully state-owned vertically integrated railway company, both managing infrastructure and operating freight and passenger train services.
In microeconomics and management, vertical integration is an arrangement in which the supply chain of a company is owned by that company. Usually each member of the supply chain produces a different product or (market-specific) service, and the products combine to satisfy a common need. It is contrasted with horizontal integration, wherein a company produces several items which are related to one another. Vertical integration has also described management styles that bring large portions of the supply chain not only under a common ownership, but also into one corporation.
A railway company or railroad company is an entity that operates a railroad track or trains. Such a company can either be private or public. Some railway companies operate both the trains and the track, while particularly in European Union (EU), ownership of track and train operation is separated in different companies.
The company was established on September 18, 2003, when a decree was passed to separate the railways from the Ministry of Railways of the Russian Federation(dissolved in 2004). RZD is based in Moscow at Novaya Basmannaya str., 2. The operating units of the central part of the staff are at Kalanchevskaya str., 35.
Railways in Crimea are controlled by Crimea Railway, a separate company.
Crimea is a peninsula on the northern coast of the Black Sea in Eastern Europe that is almost completely surrounded by both the Black Sea and the smaller Sea of Azov to the northeast. It is located south of the Ukrainian region of Kherson, to which it is connected by the Isthmus of Perekop, and west of the Russian region of Kuban, from which it is separated by the Strait of Kerch though linked by the Crimean Bridge. The Arabat Spit is located to the northeast, a narrow strip of land that separates a system of lagoons named Sivash from the Sea of Azov. Across the Black Sea to its west is Romania and to its south Turkey.
The Crimea Railway is a railroad located in Crimea, providing passenger and freight services to Sevastopol and the Republic of Crimea.
After the collapse of the Soviet Union in 1991, the Russian Federation inherited 17 of the 32 regions of the former Soviet Railways (SZD).
By 1998, total freight traffic was half the 1991 figure.Government investment in the railway system was greatly curtailed, and passenger fares were no longer subsidized. Though increasingly inefficient, the Russian railway system avoided major reform into the 1990s. A Structural Reform Program, focused on restructuring the railway sector within 10 years, was ultimately approved in 2001.
In 2003, the Federal Law on Railway Transport divided the Ministry of Railways into the Federal Railway Transport Agency (FRTA) and Russian Railways (RZD).The reform also required RZD to provide access to railway infrastructure to other carriers and operators. As the law requires carriers to provide service to customers anywhere in Russia, RZD retained its dominant position.
Later in 2003, the Decree No. 585 established RZD as a joint stock company, making it a holding in charge of 63 subsidiaries, including TransContainer, RailTranAuto, Rail Passenger Directorate, Russian Troika, TransGroup, and Refservis.RZD acquired 987 companies (95% in asset value) out of the 2046 that had formed the MR system. Gennady Fadeyev, the Railways Minister, became the company's first president.
The reform saw the creation of a new market segment following the privatization of the network's rolling stock. The company divided the bulk of its wagon fleet between two new operating companies, Freight One (which was later privatised) and Freight Two (renamed Federal Freight in 2012), and private players such as GlobalTrans also entering the market.
In 2003, RZD launched a project to replace the narrow gauge on Sakhalin Railway to the broad gauge used in the rest of Russia; by 2016, 73% had been converted.The share of privately owned wagons in the freight transport increased to one-third of the total by 2005. On 18 May 2006, the company signed an agreement with Siemens for the delivery of eight high-speed trains.
On May 23, 2007, Russian Railways adopted a new corporate style which changed fundamentally the way the Company presented itself visually to the outside world. The change of corporate identity underwent several stages during the 2007–2010 period.The final version of the logo was designed by BBDO Branding.
Also, commissioned by BBDO Branding The Agency HardCase Design created a family of corporate fonts RussianRail, consisting of 15 fonts. In the new company logo Sans-serif RussianRail Grotesque Medium was used. In 2008, the new logo of Russian Railways became a runner-up for the international design competition WOLDA '08 award.
Strategy 2030, an investment plan to expand and modernize the railway network, was approved by the Russian government in 2008.Since 2008, as part of the structural reform of rail transport, with separation of the services infrastructure of transportation activity and the emergence of a competitive environment, Russian Railways has been transformed into a vertically oriented holding company.
In 2009, the investment budget was 262.8 billion rubles (excluding VAT), of which 47.4 billion for projects related to the preparation and staging of the Olympic Games in Sochi; 58.7 billion for the renovation of the rolling stock (including supply of Sapsan [Peregrine] trains).[ citation needed ]
In 2010, Federal Passenger Company was established as a fully owned subsidiary of Russian Railways, providing long-distance passenger services both in Russia and abroad.By the end of 2013 it operated all long-distance routes, except for high-speed Sapsan lines, which are operated by RZD.
RZD issued its first dollar-denominated bond in 2010, raising $1.5 billion.On October 28, 2011, the Joint Stock Company Freight One, a subsidiary of Russian Railways, sold 75% of its shares minus two shares for 125.5 billion rubles (about 4 billion $) to Independent Transport Company owned by Vladimir Lisin. Thus, Lisin as Russia's largest operator of rolling stock acquired control of a quarter of the freight market.
As part of its reform efforts, RZD massively reduced its workforce, from 2.2 million in the 1990s to 934,000 people in 2012.In 2012 it became one of the three largest transport companies in the world.
According to a Reuters inquiry, RZD procurement activities in 2012 amounted to $22.5 billion; part of this was awarded to private contractors with no genuine operations in de facto noncompetitive tenders.Some of the company addresses listed on the tenders turned out to be private apartments, car repair shops or department stores. It was alleged that the contractors were actually shell companies, used to convey billions of dollars in tenders to close associates of Yakunin, president of RZD.
Zheldoripoteka, RZD's real estate arm, was revealed to have sold land plots located close to railway stations in major cities to the son of Russian Railways president Vladimir Yakunin.Far East Land Bridge, a company partnered with a Russian Railways subsidiary, was also linked to Yakunin's son.
On October 16, 2012, Russian Railways has completed competitive negotiations with potential buyers of the remaining 25-percent plus 1 share stake in JSC Freight One. The best binding offer was received from the Independent Transport Company LLC. The assets were sold for 50 billion rubles.
In early November 2012, Russian Railways announced the purchase of 75% of the French logistics company Gefco SA. The total value of the transaction was 800 million euros, the seller being PSA Peugeot Citroen, the parent company of Gefco.A program to modernize the Baikal-Amur Magistrale was launched in 2013, costing the equivalent of £4 billion by 2018.
In 2015, RZD International won a €1.2 billion contract to electrify the Garmsar–Inche Bourun line in Iran.
In August 2015, company president Vladimir Yakunin was dismissed,allegedly because of poor performance and mismanagement. Yakunin was replaced by Oleg Belozyorov.
RZD International began works on the reconstruction of the Serbian Vinarci – Djordjevo line in 2016.The Moscow Central Circle railway, designed and managed by Roszheldorproject, an RZD subsidiary, opened in September 2016. In July 2018, the company announced plans to phase out third-class carriages on long-distance trains by 2025.
In March 2016, RZD approved an updated version of high-speed rail development program until 2030. The 5 trillion ruble program includes the construction of Moscow–Kazan–Yekaterinburg, Moscow–Adler and Moscow–St. Petersburg high-speed lines, as well as other high-speed lines connecting regional cities.
The construction program is divided into three stages. Until 2020 Russian Railways plans to put into operation the high-speed rail sections linking Moscow–Kazan (1.2 trillion rubles), Moscow–Tula (268.6 billion rubles), Chelyabinsk–Yekaterinburg (122.6 billion rubles), Tula–Belgorod (86.8 billion rubles rubles), Yekaterinburg–Nizhny Tagil (12.9 billion rubles) and Novosibirsk–Barnaul (62.3 billion rubles). The project design of the largest container port in Ust-Luga for reception and distribution of containerized freight on China–Europe route is also part of the program.
Between 2021 and 2025 RZD plans to build Rostov–Krasnodar–Adler, Tula–Voronezh high-speed rail and the extension of Kazan-Yelabuga high-speed rail, as well as other regional high-speed rail links.
During the 2026-2030 third phase of the program, Russian Railways will build Moscow–Saint Petersburg high-speed rail section; the railway line will be extended from Yelabuga to Yekaterinburg, and from Voronezh to Rostov-on-Don.
In March 2015, at a meeting of the Russian Academy of Science, Vladimir Yakunin presented an ambitious new transport route called the Trans-Eurasian Belt Development (TEPR) which would go "through Russia with a mega road and high-speed rail network to link Asia with Europe' and "with the opportunity to go to Chukotka and Bering Strait and then to the American continent"to Alaska, "making overland trips from Britain to the US (via the Channel Tunnel) a possibility."
The Russian Federation is the founder and sole shareholder of JSC Russian Railways. On behalf of its shareholders the powers are exercised by the Government of the Russian Federation.It approves the President of the Company, forms the Board of Directors annually and approves the annual reports.
An IPO for the company was considered in 2012,but it was pushed back to after 2020.
The Chairman of the Board of Directors of JSC Russian Railways is Oleg Belozerov. Before him, the position was occupied by Kirill Androsov from September 2011 till June 2015. , and previously by Alexander Zhukov – from July 20, 2004 to September 2011 and Viktor Khristenko – from October 16, 2003 – July 20, 2004.
Gennady Fadeev was President of JSC Russian Railways from 23 September 2003 – 14 June 2005. He was succeeded by Vladimir Yakunin – from 14 June 2005 to 20 August 2015. Oleg Belozyorov has been president of the company since 20 August 2015.
As of December 2013, Russian Railways has controlling interests in the following companies:
The main activities of Russian Railways involve freight and passenger traffic. In Russia, railways carry 42% of the total cargo traffic, and about 33% of passenger traffic.Some passenger categories, such as pensioners, members of parliament, and holders of Soviet and Russian state decorations, receive free or subsidized tickets.
In 2013 railways carried nearly 90% of Russia's freight, excluding pipelines.In 2014, railway infrastructure and locomotive services accounted for 74% of the company's total revenue.
The cost of freight tariff is determined by the Federal Tariff Service at net cost or higher.[ citation needed ]
Russian Railways has a near-monopoly on long-distance train travel, with its subsidiary, Federal Passenger Company, accounting for 90% of total passenger turnover in 2017.Passenger transportation accounted for 10.6% of the company's revenue in 2017. The long-distance passenger fleet includes 19,386 rail cars as of 2017, with an average age of 19.1 years. Over 60% of long-distance passengers travel in third-class sleeping carriages.
The long-distance rail passenger business is under increasing competition from airlines, due to their aggressive domestic pricing policies and generally shorter travel times for routes under 1,000km.International rail passenger traffic dropped from 19.4 million passengers in 2013 to 6.8 million in 2017.
In 2005–2010, JSC Russian Railways has launched a program to introduce new high-speed trains.The first train launched, Sapsan (peregrine falcon), connects St. Petersburg, Moscow and Nizhny Novgorod and is operated with trains manufactured by the German company Siemens.
The second train, Allegro, has run from December 2010 from St. Petersburg to Helsinki (Finland) via the city of Vyborg and is owned and operated together with the Finnish VR Group.
Peregrine Falcon was the most successful passenger train of JSC Russian Railways with occupancy rate of 84.5% (according to RZD in 2010) and profitability of 30% (although capital costs were not included in its calculation).
Passenger tariffs (except for travelling in the stateroom, sleeping and VIP-cars) are approved by the State, represented by the Federal Tariff Service with social orientation of its traffic operations below cost. Passenger fare is divided into two components: «ticket» (which includes the cost of transport infrastructure, locomotive traction and the Station component) and «reserved seat» (service of transport company, which is the owner of the car). Since 2003, the flexible schedule tariffs (FST) to travel on long-distance trains is used:
FST is calculated in such a way as to stimulate passengers to undertake a trip on the date with the lowest index. In 2010 and 2011, the average weighted index for calendar periods was 0.97 and the average volume of passenger traffic — 1.00. According to the JSC Russian Railways statement, the passenger transportation — except for some highly profitable directions — is unprofitable. These losses are partly compensated from the budget, and for the most part — with the help of cross-subsidies by income from freight.
Since 2009, the company is not a direct carrier of suburban passengers. Suburban transport is now operated by passenger companies founded by the executive agencies of the Russian Federation, Russian Railways and private investors.As of 2016, there are 25 suburban passenger companies (SPC), and Russian Railways owns a majority stake in 19 of them.
Especially for the SPC a zero tariff for the use of railway infrastructure was introduced. Russian Railways receives 25 billion rubles subsidies as compensation annually from the State.Commuter traffic in the whole network increased in 2011 on 5.6% and is about 878.33 million people. Passenger turnover rail in the Russian regions ranges from 5% to 30% in total passenger traffic.
Since February 2016 Russian Railways is the sponsor of Rodina from Kirov, a team in the Russian Bandy Super League.
|Reporting mark||RZD, RZhD|
|Dates of operation||2004–present|
|Electrification||3 kV DC, 25 kV AC Main|
|Length||85,500 km (53,100 mi)|
As of December 31, 2009, the total operational length of railway is 85 281 km, including the track gauge of 1,520 mm (4 ft 11 27⁄32 in) — 84 446 km, the length of continuous welded rails 74.4 thousand km, the railway network operated by 166 975 switches, 138 tunnels and 30,727 bridges.[ citation needed ]
The length of lines equipped with automatic block (AB) and centralized control, is 62,055 km, or 72.9%. Devices of railway automation and remote control on the Russian railway network served with 203 distance signaling, centralization and blocking and with one technical center of automation and remote control.
The following Railways belong to RZD:
RZD also manages a 50% share in Ulaanbaatar Railways on behalf of the Russian government.
Traction rolling stock includes diesel locomotives, electric locomotives, electric trains, diesel trains, railcars, railway handcar, other self-propelled equipment and non-tractive rolling stock — different cars (passenger, freight) and a special rolling stock.[ citation needed ]
The main producer of passenger cars (95%) is Tver Carriage Works.[ citation needed ]
At the end of 2012, the rolling stock inventory included 20,618 locomotives, including 2,543 electric passenger locomotives, 578 diesel passenger locomotives, 7,837 electric freight locomotives, 3,556 diesel freight locomotives, 6,104 shunting locomotives.
In 2017 RZD purchased 459 locomotives, including four EP1M, 13 EP2K, 19 TEP70BS and four EP20 passenger units, as well as 84 2ES6, 10 2ES10, 51 2ES5K, 45 3ES5K, four 3ES4K, 86 2TE25KM, and five 4ES5K freight units.
In 2013, the RZD holding owned 252,900 freight cars, including 54,200 owned directly by Russian Railways, with the rest owned by company subsidiaries and affiliates, such as Federal Freight and TransContainer.
Annually JSC Russian Railways carries over 1 billion passengers and 1 billion tons of freight.
|Freight (trln tn. km).||1.85||2.31||2.4||2.27|
|To last year||+3.1 %||+5%|
|Freight (bln tn.).||1.40||1.34||1.30||1.11|
|To last year||+4%|
|Passenger turnover (trl pass. km)||118.9||174.1||176||153.6|
|To last year||+3.8 %||+1%|
|Passengers (mln pass.)||1352.8||1296||~1100|
|To last year||+2.5 %|
|Attendants (ths people)||1127||1099||1075|
In 2011, freight traffic of Russian Railways totaled about 1.4 billion tons. Passenger traffic for the year 2011 reached 992.4 million people.
|Income||749 bln rb.||877.9 bln rb.||1.016 trl rb.||1.203 trl rb.||1.126 trl rb.||1.334 trl rb.|
|Operating cost||684.7 bln rb.||821.5 bln rb.||1.089 trl rb.||1.013 bln rb.||1.135 bln rb.|
|Operating income||194.7 bln rb.||194.6 bln rb.||113.9 bln rb.||113.3 bln rb.||198.9 bln rb.|
|EBITDA||267.5 bln rb.|
|Net income||114 bln rb.||139.8 bln rb.||144.9 bln rb.||76.4 bln rb.||121.3 bln rb.||208.3 bln rb.|
The average salary on the network in October 2011 — 31 thousand rubles a month.Loading volume for the year 2012 amounted to 1 billion 274.7 million tons (+2.7% compared to 2011), the share in the total turnover of the country (except pipelines) — 85.5%. In 2012, the network carried 1 bln 56.7 million passengers (+6.4% compared to 2011). Net income from the basic activities using Russian GAAP was in 2012 almost 5.3 billion rubles, which is a decrease compared to 2011 (13.7 billion rubles) of almost 3 times.
In total, Russian Railways receives 112 billion roubles (around US$1.5 billion) annually from the government.
Indian Railways (IR) is India's national railway system operated by the Ministry of Railways. It manages the fourth largest railway network in the world by size, with 67,368-kilometre (41,861 mi) route.. Routes are electrified with 25 KV AC electric traction while thirty three percent of them are double or multi-tracked.
Rail transport in Russia runs on one of the biggest railroad networks in the world. Russian railways are the third longest by length and third by volume of freight hauled, after the railways of the United States and China. In overall density of operations /length of track, Russia is second only to China. Rail transport in Russia has been described as one of the economic wonders of the 19th, 20th, and 21st century.
Belorussky railway terminal is a passenger terminal at the Moscow–Passenger–Smolenskaya railway station of the Moscow Railway. Informally the whole station can be called as Moscow Belorusskaya.
The 1,520 mm broad gauge Oktyabrskaya Railway or October Railway, which forms part of RZD, is the oldest railway in Russia, located in the north-west of the country. It stretches from Moscow's Leningrad Terminal in the south to Murmansk beyond the Arctic Circle in the north. The total length of the lines is over 10,000 km. The headquarters of the railway are located in Saint Petersburg.
The Soviet Union was heavily dependent on rail transport, not least during the Russian Civil War and World War II, but also for industrialization according to the five-year plans.
Yakutian Railway is a rail operator in Republic of Yakutia in Russia.
The EP20 (ЭП20) is a type of 6 axle Bo'Bo'Bo' electric passenger locomotive being built for Russian Railways by Transmashholding's Novocherkassk Electric Locomotive Plant. The locomotive was designed by Tekhnologii Relsovogo Transporta (TRTrans), a joint venture between Transmashholding and Alstom.
In Russia, the largest country in the world, its geography of N.-S. rivers and E.-W. commerce made it very suited to develop railroads as its basic mode of transportation.
The 2TE116 is a broad gauge double diesel locomotive manufactured by Luhanskteplovoz, used extensively to haul heavy freight trains in the Soviet Union and its successor states, particularly by RŽD.
The TEP70 main line single unit diesel passenger locomotive, rated at 2,964 kW (3,975 hp), with AC/DC transmission and individual axle traction control, is a railway engine designed to haul passenger trains on the Russian gauge railway network of eastern Europe. The TEP70 is currently in service in Russia, Ukraine, Belarus, Estonia, Latvia, Lithuania, and Kazakhstan.
The 2TE70 is a Russian main line dual unit freight diesel locomotive, rated at 5,884 kW (7,891 hp). It has AC/DC transmission and individual axle traction control and is designed to haul freight trains on the Russian Federation lines RŽD with 1,520 mmRussian gauge. The 2ТE70 Freight diesel locomotive with two six-axle sections shares main parts with the TEP70 and TEP70BS passenger diesel locomotives. Each section is rated at 2,964 kW (3,975 hp) and it is designed for running freight trains of up to 6,000 t.
The 2TE25K main line two-unit diesel freight locomotive, rated at 5,000 kW (6,705 hp), with AC/DC transmission it is designed to haul freight trains on the Russian Federation lines RZD with the broad gauge.
Central Suburban Passenger Company is a Russian commuter railway company. CSPC covers over half of all suburban transportation in Russia, carrying over 500 million passengers in 2011. Businessman Iskander Makhmudov and Andrey Bokarev own CSPC.
Rail transport is an important mode of long-distance transportation in the People's Republic of China. As of 2015, the country has 121,000 km (75,186 mi) of railways, the second longest network in the world. By the end of 2018, China had 29,000 kilometres of high-speed rail (HSR), the longest HSR network in the world.
The Lastochka is a Russian commuter and intercity electric multiple unit train, based on Siemens Desiro design.
The Strizh is a Russian low-floor high speed express train.
Oleg Valentinovich Belozyorov, is a Latvian-born Russian politician and manager. He is serving as president of Russian Railways since August 20, 2015.
Vadim Nikolayevich Morozov, is a Russian politician, magazine writer, and businessman. He is a senior advisor to the President of JSC "Russian Railways", a member of the board of the company. He was formerly the first vice-president of Russian Railways from 2005 to 2015, who was responsible for the operational management of the company. He was the last railway minister in 2004, and in specialty, he was a railway engineer on the operation of the railways.
Chertkovo railway station is a railway station located in Chertkovo, Rostov oblast, Russia. It is 325 km down-line from Rostov-Glavny and is situated between Zorinovka and Sheptukhovka on the Moscow — Rostov-on-Don line. The station is located at the Ukrainian border just opposite to the Ukrainian village of Milove.
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