Russian Railways’ investment programme for 2023 to grow by one third to RUB 1.7 trillion
A slight decrease of loading is forecast – about 1.2 percent as compared with 2022
The investment programme of Russian Railways for 2023 exceeds 1.7 trillion roubles, which is almost a third more than in 2022, RF Transport Minister Vitaly Savelyev said at the Government meeting, the transcript of which is available on the official website of the Russian Government.
Under the plan for 2023, investment will be made in the following main areas: over 40 percent of the investment programme, or 440 billion roubles, will be channeled into projects under the Comprehensive Plan for the Modernisation and Expansion of the Trunk Infrastructure. Of this amount, 250 billion roubles will be allocated for the second stage of eastern lines. The 2023 target of 173 million tonnes in shipping capacity will be met in full. In 2023, 350 billion roubles will be spent on upgrading railway infrastructure.
According to Vitaly Savelyev, this year, the Government has adopted five key decisions to balance the activities of Russian Railways and create investment sources. Mr Mishustin, you mentioned this in your opening remarks, and I will only go into a bit more detail.
First, 250 billion roubles has been allocated from the National Wealth Fund (NWF) to increase the Russian Railway’s authorised capital and thus finance the investment programme.
Second, Russian Railways’ registered capital has been increased by 18.3 billion roubles based on allocations from the NWF to be used to develop the railway infrastructure at the Central Transport Hub.
Third, insurance contributions have been delayed by three months, which has produced a combined effective deferment of up to 42 billion roubles.
Fourth, shipping rates were adjusted by 11 percent as of 1 June of this year and a decision has been taken to suspend the decreasing coefficient for coal exports until the end of this year.
Fifth, it has been decided to increase Russian Railways’ authorised capital by 217 billion roubles, based on allocations from the NWF, in order to reduce the company’s debt burden
The 2023 financial plan is based on the parameters of the socioeconomic development forecast and large-scale projects related to infrastructure development. Traffic volumes were coordinated with the Ministry of Economic Development. A slight decrease is forecasted – about 1.2 percent as compared with 2022 – in terms of freight rail transport. Maximum shipping rates will be increased by 8 percent in 2023. “Importantly, in our plans for 2023, we considered an additional 2 percent commodity surcharge on major maintenance. We also decided to keep the earlier adopted decision on export coal shipping rates, which will ensure faster growth rates, revenue over expenses, for Russian Railways. In 2023, the company will spend 2.15 trillion roubles,” said Vitaly Savelyev.
The financial plan includes a programme of projects to make the company more efficient. The effect is expected to exceed 47 billion roubles. The EBITDA is expected to reach 637 billion roubles in 2023, which is more than a 27 percent increase over this year.
Following the report of Vitaly Savelyev, Prime Minister Mikhail Mishustin asked to focus on implementing the projects that are part of creating or expanding the basic transport corridors, primarily, completing the plans for developing the eastern lines and building railway accesses to the seaports of the Sea of Azov and the Black Sea.
