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PASSENGER TRANSPORTATION the Primary Objective of Russian Railways Is to Provide All Russian Regions with Affordable Passenger Transportation

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PASSENGER TRANSPORTATION the Primary Objective of Russian Railways Is to Provide All Russian Regions with Affordable Passenger Transportation About the Company Vision ahead Strategic report 52/53 PASSENGER TRANSPORTATION The primary objective of Russian Railways is to provide all Russian regions with affordable passenger transportation. Along with suburban transportation comprising multimodal routes, the Company is developing long-haul passenger transportation, including high- speed and ultra high-speed transportation between the metropolitan areas. The Company’s priorities include continuous improvement of customer experience, development of new products and services, digitalisation, and creation of a comfortable transport environment affordable to all categories of passengers. IN 2018: PASSENGERS PASSENGER TURNOVER IN HIGH-SPEED AND ULTRA TRANSPORTED HIGH-SPEED TRANSPORTATION SEGMENTS 1,157.2 7.3 m bn PKM +3,5% +19,9% LONG-HAUL TICKETS SOLD ONLINE > 50 % Russian Railways Performance overview Sustainable development Corporate governance Appendices Annual Report 2018 About the Company Vision ahead Strategic report 54/55 Passenger transportation Russian Railways carries out long-haul and suburban transportation in 77 and 661 regions of Russia, respectively. Key focus areas of Long-Term Development Programme In line with the Long-Term Development for the development of multimodal comprehensive development of a bus Programme until 2025, Russian Railways transport. transportation service within the intends to fully maintain the volume Group; of socially significant transportation The key initiatives for the development › defining economic incentives for (including through implementing initiatives of the suburban passenger upgrading the rolling stock and in the Far East). transportation include: infrastructure facilities; › integrating suburban transport into › introducing suburban transportation The key initiatives for the development the urban transport environment of the standards for accessibility, quality and of the long-haul passenger city areas; safety of passenger transportation; transportation include: › ensuring the long-term mutual › enhancing the Moscow Transport Hub; › building an efficient route network and obligations of all participants of › reducing the interval between passenger train schedule; suburban transit systems under the trains on certain routes, including the › developing high-speed rail regional tariff and budgetary policies of Moscow Central Circle. transportation with Lastochka and the Russian Federation; Strizh trains as well as trains with › adopting regulatory decisions aimed at Key initiatives for the railway station double-decker railcars; securing equal opportunities for the development include: › providing customers with high-quality development of the suburban passenger › creation of multifunctional intermodal product offerings; transportation vs other transport and transport interchange hubs › digitalising customer services and modes; integrated with the modern urban business processes; › launching multimodal transportation environment and infrastructure; › offering innovative products in trains; (with the possibility of building › efficient use of railway station areas › improving the customer experience; integrated route network for several (including synergies and cooperation › introducing the world’s best practices transport modes) along with the with bus stations). Key achievements in 2018 › In 2018, passenger transportation almost 319,000 fans travelling free of at 107 railway stations in Russia. volumes reached a ten-year high of charge. › Russian Railways developed and launched 1.157 billion people (up 3.5% y-o-y). › For the third year running, the Company RZD passengers – a single customer › The Urban Commuter Train project offered, at its own expense, special mobile app. encompassed 11 metropolitan areas: prices on tickets for children aged › Russian Railways also offered a family- Moscow, Krasnoyarsk, Ufa, Rostov- between 10 and 17. friendly version of the RZD Bonus on-Don, Tambov, Voronezh, Volgograd, › Help desks for passengers with reduced programme (bonus points for all family Kaliningrad, Kazan, Yaroslavl and mobility were set up at 133 railway members). Yekaterinburg. stations. › Overall, high-speed and ultra high-speed › During the 2018 FIFA World Cup › The number of participants of the RZD trains (FPC, Sapsan, Allegro) transported Russia™, 734 additional trains were Bonus loyalty programme increased to 4 ca. 15.6 million people (up 26% y-o-y). scheduled to transport fans and client million people. › 110 multimodal routes with combined groups, with 383,900 tickets sold and › Free unlimited Wi-Fi access is available train & bus service were launched. 1 Excluding Central SPC. Russian Railways Performance overview Sustainable development Corporate governance Appendices « We place strong emphasis on the development of passenger transportation, and we are not afraid of introducing new business models of services. Wi-Fi in trains and at train stations, mobile apps, new methods of payment, e-tickets, multimedia portals in trains, and reward programmes are all a reality today» Dmitry Pegov Deputy CEO of Russian Railways Passenger transportation in 2018 In 2018, passenger transportation volumes Railway passenger turnover, bn pkm Passengers transported by rail, m people reached a ten-year high of 1.157 billion people (up 3.5% y-o-y), with both suburban and long-haul routes contributing to the growth. 33.1 96.3 1,046.9 110.3 2018 129.4 2018 1,157.2 Long-haul passenger turnover stood at 96.3 bn pkm, or 105.7% vs 2017, while 31.9 91.1 1,015.7 102.2 suburban passenger turnover rose by 3.9% 2017 123.0 2017 1,117.9 y-o-y to 33.1 bn pkm. Over the year, 1,046.9 million passengers were transported 31 93.5 935.6 101.4 in the suburban segment – a 3.1% increase 2016 124.5 2016 1,037 vs 2017, with full-price passengers, students, and holders of regional travel 30.9 89.5 922.5 97.9 2015 2015 benefits adding 0.7%, 0.8% and 32.6% y-o-y, 120.4 1,020.4 respectively. 32.6 96.3 967.2 103.1 2014 128.9 2014 1,070.3 The number of suburban passengers also increased due to the development Suburban transportation Suburban transportation of the Moscow Central Circle and amounted Long-haul transportation Long-haul transportation to 129.6 million passengers (up 17% y-o-y). Russian Railways’ passenger transportation highlights Items 2017 2018 Y-o-y change In absolute terms % Passenger turnover, bn pkm 122.9 129.4 6.4 5.2 Suburban transportation, bn pkm 31.9 33.1 1.2 3.9 Long-haul transportation, bn pkm 91.0 96.3 5.2 5.7 Including high-speed and ultra high-speed trains 6.1 7.3 1.2 19.9 Passengers transported, m people 1,117.9 1,157.2 39.3 3.5 Suburban transportation, m people 1,015.7 1,046.9 31.2 3.1 Long-haul transportation, m people 102.2 110.3 8.1 7.9 Including high-speed and ultra high-speed trains 12.4 15.6 3.2 25.8 Annual Report 2018 About the Company Vision ahead Strategic report 56/57 Rolling stock renewal rolling stock to replace the railcar fleet; Rolling stock renewal is one › purchasing Lastochka cars for of the suburban segment’s priorities. suburban and long-haul Daily In line with its approved investment Express1 transportation between programme for 2018, Russian Railways the largest cities. This will help purchased 180 Lastochka cars (35 trains). boost passenger traffic, create a brand new type of service with To enhance customer experience, the reduced travel time, and introduce WINTER Company seeks to renew the rolling innovative comfortable coach cars; UNIVERSIADE stock by: › conducting overhauls of electric › purchasing the Federal Passenger trains. IN KRASNOYARSK Company’s long-haul passenger In the run-up to the XXIX Winter Suburban passenger transportation Universiade in Krasnoyarsk, Russian Railways invested RUB Suburban transportation services RUB 28.5 bn, up 6% y-o-y, with 19 out 3.7 bn in building and upgrading are provided by 24 suburban of 24 carriers generating higher income 28 infrastructure facilities. passenger companies (SPCs), with compared to 2017. The main facility, the Krasnoyarsk Russian Railways, regional executive railway station, fully meets authorities, private investors and Transportation expenses rose by 4% y-o-y barrier-free design and safety Aeroexpress among the co-founders. to RUB 37.4 bn. requirements, with automated passenger information, Smart Russian Railways holds more than 50% In 2018, SPCs (Russian Railways’ Railway Station and electronic in the charter capital of 19 suburban subsidiaries and affiliates) reduced queue systems put in place. passenger companies. In January their prior debt under agreements with 2018, the Company changed its Russian Railways by RUB 0.9 bn, with 20 In March 2019, the Company used holding in Central SPC by selling companies reaching the break-even level2. 23 pairs of long-haul trains and the stake through a public bidding 58 daily intracity suburban trains, process. Moscow Central Circle including 21 routes to sports performance in 2018 venues, to transport sports Thanks to the government support delegations and fans. of suburban transportation by way In 2018, the MCC serviced 129.6 million of reimbursed infrastructure costs passengers (up 17% y-o-y), with total and a discount factor of 0.01, passenger traffic since its launch in 2016 passengers can buy tickets at a socially exceeding 267.6 million. This is driven The development of the MCC continues. affordable price. In 2018, most regions by the opening of new Moscow metro The Company has done simulation modelling opted not to increase rail fares. stations and a large influx of tourists and using five-, four- and three-minute intervals fans seen in Moscow during the 2018 between trains. A four-minute interval Federal support of the suburban FIFA World Cup Russia™. Early autumn between Lastochka electric trains will segment made it possible to stabilise saw the commissioning of residential increase the MCC’s throughput capacity transportation volumes and even property located in close proximity in the range from 592,000 to as much expand local transportation to the MCC, which brought about more as 806,000 passengers per day (215 services.
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