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RZD investments in rolling stock are expected to grow up to $2.3 bln USD in 2022

20 December 2021
Reading time ~ 3 min
Russian Railways' passenger train with EP20 electric locomotive
Russian Railways' passenger train with EP20 electric locomotive. Source: 9max,
Belov Sergey, Editor-in-Chief, ROLLINGSTOCK Agency
Reading time ~ 3 min
Litvintsova Olga, Editor of International Projects, ROLLINGSTOCK Agency

Russia: Such plans were presented by the First Deputy CEO of Russian Railways (RZD) Vadim Mikhailov, according to the PRIME news agency. Meanwhile, the company is now discussing the possibility of raising funds from the National Welfare Fund (NWF) to increase the purchases volume.

In early December, the Government of the Russian Federation approved the basic parameters of the RZD’s financial plan and investment program for 2022-2024. The government supported an unprecedented funding level: only next year, the national railway company will invest more than $13.7 bln USD (1 trln RUR, +39.4% to this year’s investment program in roubles). RZD’s Board of Directors should approve the financial plan and investment program on December 23.

At the same time, most investments will be directed towards the infrastructure development, and the share of funds allocated for the rolling stock renewal in the structure of the investment program is 17% – this is the lowest indicator for at least the last 5 years. While for 2023-2024 a significant reduction in procurement of the rolling stock has been projected up to $1.8 bln USD (131-135 bln RUR, 12% of the investment program total volume). “We are discussing the possibility of using NWF funds in addition to the program that we have now fixed for three years. In order, among other things, to consider the possibility of investments increasing and additional rolling stock and track equipment renewing”, said Mikhailov as to quote by PRIME.

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The exact volume of the rolling stock procurements is not stated yet. In 2021, the Russian Railways’ plan in this direction assumed the allocation of 141.8 bln RUR ($1.9 bln USD) and, according to Mikhailov, by the end of the year, 538 locomotives, 150 cars of the Lastochka EMUs, 86 cars of another suburban multiple units, as well as 117 units of track equipment will be purchased. It is worth noting that a similar volume of investments in roubles in 2019 allowed RZD to purchase 738 locomotives, 199 Lastochka cars and 96 cars of another suburban MU.

The procurement of locomotive-hauled passenger coaches is carried out separately by the RZD’s subsidiary – the Federal Passenger Company (FPC), which in 2019 signed a long-term contract with Tver Carriage Works (a part of Transhmashholding) for the supply of more than 3.7 thsd coaches in 2019-2025 (firm order – 2.6 thsd). Recently in an interview with the Gudok newspaper the CEO of FPC Vladimir Pyastolov has pointed out that the company has already received more than 1.3 thsd coaches, while in 2021 the delivery of 477 units was expected. In 2022, FPC plans to get other 220 units of various modifications.