The Company

At a Glance

1. 100% government-owned rail monopoly with full state backing & guarantee

2. Ambitious strategy of reform, modernisation & investment up to 2010 and beyond

•  Phase I of the Reform Programme (2002-3) successfully completed
•  Phase II of the Reform Programme (2003-5) on track: elimination of cross-subsidies
•  Phase III (2006-2010): possible privatisation of Russian Railways and/or some of its subsidiaries
•  Massive Investment Programme:
  • Renewal, modernisation & purchase of track & rolling stock, including high-speed trains
•  Increased competitiveness and productivity
•  Opening up rail transport to increased competition from private operators
•  Financial and operational openness and transparency
•  Expansion of East-West & North-South Eurasian transport corridors to:
  •  integrate Russia into the global economy
  •  increase revenues
  • reduce shipment costs across Eurasia and cut transit times by 15-17 days compared to sea route

3. Strategic player in the Russian economy

• Accounts for over 3.6% of Russia’s GDP, handles around 80% of all transportation in Russia
• Handles 40% of all freight in Russia by turnover and over 41% of passenger rail transport
• Handles about 83% of all freight in Russia (excluding oil by pipeline)
• 1.3 billion passengers, 1.3 billion tons of freight annually

4. One of the biggest railway companies in the world

• 85,500 km of track (second only to the USA) covering Russia’s 11 time zones
• 1.2 million employees, 987 enterprises and 165 subsidiaries
• Research institutes and & support organisations guarantee the company’s operations and viability

5. Excellent financial position

• Authorized capital of RUR 1.535 trillion (over USD 50 billion) with strong cash flows and low debt ratio
• Russia’s 4th largest company by revenue - RUR 652.8 billion (over USD 22.6 billion) in 2004
• One of Russia’s most profitable companies - net income of USD 2.7 billion in 2004
• Investment Grade Bonds and highest international credit ratings of any Russian company
• First Russian company to be classed as investment grade by all three international rating agencies
• Strong growth going forward on the back of continued economic growth in Russia

6. Productivity internationally competitive

• 10.1 employees per kilometre of track compared to Japan at 8.9, China at 26.6 and India at 24.9
• Excellent labour relations: never had a strike

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