The Russian Government has analysed Russian Railways’ (RZD) investment programme and financial plan for 2016. RZD investment plans will reach RUB 432 bn (EUR 6.2 bn) next year, of which over 50% will be allocated to implementing public projects by the state. The company will increase the volume of investments by 10%, while its share in the total local investment will reach 3%.
In 2016 RZD plans to purchase 495 locomotives, to renovate nearly 2000 Km of lines and to complete the design of the Moscow – Nizhny Novgorod transport hub.
According to the draft financial plan, RZD’s freight income will rise by 11% compared to 2015, with an indexation of tariffs by 9%. The freight turnover is planned to reach about 3 trillion ton-kilometers, the highest level in the history of the New Russia since 1992.
RZD’s cost of transportation will increase by 5%, which is one third less than the forecast-ed average inflation rate of 7.4%. This will be achieved through the optimization of procurement, mainly due to the infrastructure life cycle cost reduction, innovation and energy efficiency.
In 2016, the company plans to transport 1.29 bn passengers, which is 1% more compared to 2015. This number will be reached by launching operations on the Moscow Small railway Ring.