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Target business model

An updated target business model was adopted as part of the Group’s Development Strategy
up to 2030. This business model includes the following business units:

Transportation and logistics business unit Infrastructure business unit Passenger transportation and service business unit International engineering and transport construction business unit Social service business unit

The Group has established an international transport and logistics company business model by developing businesses in unregulated segments. These include rolling stock operations, terminal and stock development, provision of logistics services, logistics outsourcing and international transportation. It will also continue to systematically improve and enhance the attractiveness of its base rail transportation service.

Work on the efficient expansion and availability of our transportation network is already underway within this business unit. Also underway is the optimisation of infrastructure costs,
and the identification of opportunities to create of new transportation and logistics products
(by increasing train speeds, improving the reliability of infrastructure services, and increasing freight capabilities). The development of rail infrastructure is part of the the foundation for national economic growth, and our goal is to meet the growing demand for transport.

The objectives of this business unit include the development of new products and services at attractive prices and ensuring the competitiveness of rail transport against its main rivals – aviation and motor transport.

In the long-distance transport sector, the Company is committed to providing an affordable alternative to other forms of passenger transport to all regions of Russia while maintaining
its share of the transport market thanks to growth of short trips and public contracts.

High-speed train operation is being developed in order to increase population mobility between locations.

In the suburban transportation segment, the Company is committed to developing a fast
and affordable alternative to private car and public bus transport in large urban areas.

This business unit implements turn-key projects in international engineering and transport construction and as a result, gains access to new markets.

Separating this out as a business unit highlights the importance of staff as a key asset, instrumental in ensuring the achievement of long-term development targets. It also indicates that the Company views its positive social policies as a significant competitive advantage.

Russian railways among the leading global rail systems

Railway operational length

thousand km Russian Railways owns the world’s third longest railway network
Length of electrified rails

thousand km In terms of electrified rails Russian Railways is the world’s second longest
Share in total passenger turnover of the Russian Federation
One of the world leaders in the passenger transport segment
Share of railways in freight turnover (excluding pipelines)
One of the world leaders in freight turnover (turnover 2,196.2 billion tonne-kilometres in Russian Railways infrastructure)
Number of Russian Railways employees
thousand people One of the largest commercial employers in Russia

Freight turnover,
bn of tonne-kilometres

Passenger turnover,
bn. pas.km

Locomotive fleet,
thousands of units

Passenger car fleet,
thousands of units

Operational length,
thousands of kilometres

Length of electrified rails,
thousands of kilometres