Russian Railways RZD Long-Distance Travel

Russian Railways RZD Long-Distance Travel

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 1,000 km. 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, Sapsan, commenced service in December 2009 and connects Saint Petersburg, Moscow and Nizhny Novgorod and is operated with trains manufactured by the German company Siemens.

The second train, Allegro, has run from Saint Petersburg to Helsinki via Vyborg since December 2010 and is owned and operated together with the Finnish VR Group.

Sapsan 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).

Russian Railways RZD Fares on Long Distance Trains

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:

in the period of keen demand the rate is above the annual average by 5–20% (earlier it was up to +45%)
approximately the third part of the year the base rate is active
during the periods of low passenger's traffic the rate is lower by 5–20%. On certain days of the year (from 1 to 3 days, at different times on such days as 31.12, 01.01 and dates around 9 May) the index of 45–50% is valid when tickets are twice cheaper.

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.

Russian Railways RZD Suburban Passenger Companies

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.

Russian Railways RZD Sponsorship

Since its establishment in 2003, Russian Railways sponsoring FC Lokomotiv Moscow in the Russian Premier League.

Since February 2016 Russian Railways is the sponsor of Rodina Kirov, a bandy team in the Russian Bandy Super League.

Russian Railways RZD Assets

Russian Railways RZD Infrastructure

As of 31 December 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.

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 Russia:
  • October Railway – 10,378 km (managed from Saint Petersburg)
  • Kaliningrad Railways – 963 km (managed from Kaliningrad)
  • Moscow Railway – 8,800 km (managed from Moscow)
  • Gorky Railway – 5,297 km (managed from Nizhny Novgorod)
  • Northern Railway – 5,961 km (managed from Yaroslavl)
  • North Caucasus Railways – 6,311 km (managed from Rostov-on-Don)
  • South-Eastern Railway – 4,189 km (managed from Voronezh)
  • Privolzhsk Railway – 4,237 km (managed from Saratov)
  • Kuybyshev Railway – 4,752 km (managed from Samara)
  • Sverdlovsk Railway – 7,154 km (managed from Yekaterinburg)
  • South Urals Railways – 4,807 km (managed from Chelyabinsk)
  • West Siberian Railway – 5,558 km (managed from Novosibirsk)
  • Krasnoyarsk Railways – 3,158 km (managed from Krasnoyarsk)
  • East Siberian Railway – 3,876 km (managed from Irkutsk)
  • Zabaikal Railway – 3,336 km (managed from Chita)
  • Far Eastern Railway – 5,991 km (managed from Khabarovsk)
RZD Abkhazia:
  • Abkhazian Railway: 10-year lease starting from 2009.
RZD Armenia
  • South Caucasus Railway: 30-year concession starting 2008.
RZD also manages a 50% share in Ulaanbaatar Railways on behalf of the Russian government.

Russian Railways JSCo RZhD Overview

Russian Railways Reporting Mark: RZD, RZhD
Russian Railways Locale: Russia
Russian Railways Dates of Operation: 2004–present
Russian Railways Headquarters: Moscow
Russian Railways Native Name: ОАО «РЖД»
Russian Railways Company Type: Open joint-stock company
Russian Railways Industry: Railways
Russian Railways Predecessor: Ministry of Railways of the Russian Federation (1992–2004)
Russian Railways Founded: 18 September 2003
Russian Railways Headquarters: Red Gates Square, Moscow, Russia
Russian Railways Coordinates: 55°46′N 37°39′E
Russian Railways Area Served: Russia
Russian Railways Key People: Oleg Belozyorov (CEO)
Andrey Belousov (Chairman)
Russian Railways Services: Rail Transport, Cargo
Russian Railways Revenue: $38.6 billion (2017)
Russian Railways Operating Income: $3.47 billion (2017)
Russian Railways Net Income: $2.39 billion (2017)
Russian Railways Total Assets: $76.6 billion (2017)
Russian Railways Total Equity: $41.3 billion (2017)
Russian Railways Owner: Russian Government (100%)
Russian Railways Number of Employees: 740,315 (2017)
Russian Railways Track Gauge:
1,520 mm (4 ft 11+27⁄32 in)
1,435 mm (4 ft 8+1⁄2 in) (from Kaliningrad to Russian-Polish border)
Russian Railways Electrification: 3 kV DC, 25 kV AC Main
Russian Railways Length: 85,500 km (53,100 mi)

 
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