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Market Info

Investments that will eventually total RUR13.7 trillion (USD420 billion) are under way as Russian Railways (RZD) continues to implement its ‘Strategy for Railway Development up to 2030’. Endorsed by the Russian government in 2007, the programme is intended both to modernise the existing railway and to expand the network to respond to new traffic opportunities.

In all, some 20,500 route-km of new lines are to be constructed. 1,500 km of these will be for high-speed services. Also to be built are new railways to develop valuable mineral reserves in parts of Russia not currently served by the network. Further electrification is planned, with 3,500 km to be treated by 2015, and many existing lines are to be upgraded.

In the key area of traction and rolling stock, around RUR630 billion will be spent by RZD over the next 20 years to modernise and expand its fleet. The company expects to procure:

23,400 locomotives

30,000 passenger coaches

24,000 EMU cars

1 million freight wagons

Russia’s rail investment plans create major opportunities for the private sector. Around three-quarters of the strategy's financing, including funding by RZD, is expected to be provided by initiatives such as public-private partnerships. Technical cooperation partnerships between leading foreign companies and their Russian counterparts are also playing a key role in shaping future RZD procurement patterns.

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