COMPANY STRATEGY

In 2017, FPC updated its Development Strategy until 2030. At the end of the year, the Strategy’s draft was approved by FPC’s Board of Directors and submitted for approval to Russian Railways.

MISSION

To ensure the highest level of safety, comfort, and convenience in long-distance rail passenger services in Russia.

VISION

FPC is Russia’s leader in passenger mobility, being a highly efficient, financially sound, and customer-focused company that strives to enhance value while ensuring sustainable development in passenger mobility across travel classes and regions of Russia as it transitions to franchise contracts for regular railway passenger services.

A socially responsible business

Sustainably developing mobility across travel classes and regions of Russia including operating less technically profitable routes through franchise contracts for regular rail passenger services

Customer-oriented

Leader in service quality in long- distance land transportation providing high-quality value proposition and a comfortable long- distance travel experience, including transit connections with other modes of transport and multimodal transportation

Highly efficient and financially sound

Maximising financial results and ensuring self-sufficiency in operations

Russia’s leader in passenger mobility
  • A national carrier providing traditional and high-speed long-distance rail passenger services both in Russia and abroad
  • The leader by passenger traffic in long-distance transportation in Russia
  • The leader in long-distance ticket aggregation services offering single multimodal tickets connecting rail passenger services across Russia’s regions with bus and air transportation services at complementary destinations, as well as providing the most convenient range of multimodal route options covering the most popular, key long-distance destinations

STRATEGIC GOALS OF THE COMPANY

According to JSC FPC’s draft 2030 development strategy, the Company’s main focus will be on significantly increasing the average train speeds, developing comprehensive combined transport operations (such as multimodal transportation), increasing passenger traffic on the busiest routes in Russia, and improving the competitiveness of our existing services. The Company will also continue to act as a public carrier, which means servicing single or socially significant routes. At the end of 2017, the Draft Strategy was approved by FPC’s Board of Directors and submitted to Russian Railways for approval.

The Strategy’s key targets address changes in the transportation market, the competitive situation, customer demands, and development trends in the passenger transportation regulatory environment. JSC FPC’s Strategy assumes the Company’s current role is retained in the long-term strategic development programme of RZD Holding.

Russia’s leader in passenger mobility:

A highly efficient, financially sound, and customer-focused company that strives to enhance value while ensuring sustainable development in passenger mobility across travel classes and regions of Russia as it transitions to franchise contracts for regular railway passenger services.

Rail carrier

  • Reliance on subsidies
  • Insufficient customer focus
  • Ageing railcar fleet
  • Complex value proposition
  • Network optimisation potential
  • Limited multimodal offering
2017 2025 2030
LDP
Passenger km travelled billion
87 104 108
Number of passengers carried million passengers
95 114 119
Average speed Growth in average speed is mostly from key routes (e.g., the average speed on the Centre –South route is to increase from 68 to 99 km/h by 2025). km/h
57 61 65
Capacity utilisation %
69 69 69
Net profit  RUB billion
8 24 27
Market share %
28 32 33

A list of performance indicators has been set out for the Company until 2020.

FPC performance indicators
INDICATORS 2018–2020 indicators are target indicators approved by JSC FPC Board of Directors. 2018 2019 2020
Investment volume net of VAT, RUB billion 44.9 52.9 43.4
Revenue, RUB billion 217.4 226.3 242.0
EBITDA margin (incl. subsidies), RUB billion 21.8 27.7 33.4
Subsidies, RUB billion 8.5 8.5 8.5
Traffic safety, incidents per thousand train km 8.80 8.69 8.51
Labour productivity growth rate, % 105.0 105.0 105.0
Passenger km travelled, billion 87.7 88.2 89.9
Net profit, RUB billion 2.2 4.8 8.3