OREANDA-NEWS. November 19, 2012. The Presidium of the Government of the Russian Federation considered adjusting the 2012 investment programme at Russian Railways, reported the press-centre of RZD.

"Thanks to our efficiency measures, we have been able increase our investment programme by almost 64 bn roubles. We direct any surplus funds, first and foremost, to developing infrastructure, relieving bottlenecks and reducing wear and tear on the traction vehicles," said Vladimir Yakunin, President of Russian Railways.

This year, the Company has handled the growth which has occurred in rail transportation in line with the country’s economic expansion. In the 10 months January to October 2012, loading increased by 3.2% compared to the same period last year, rising to 1.064 billion tons of freight, while passenger turnover grew by 3.8%, with long-distance traffic up by 2.6% and suburban commuter traffic by 8.3%. Productivity growth at Russian Railways exceeded 4%.

Positive results have allowed the Company to work on refining the parameters for 2012: loading is expected to increase by 3.3% compared to the 2.7% planned previously, while freight turnover should increase by 4.3%, up considerably from the forecast level of 1.2%.

Net profit will increase by 1.5 times compared to the previously approved parameters and will amount to 5.3 bn roubles.

Thanks to the measures the Company has implemented to improve internal efficiency and make its borrowing policy more effective, Russian Railways has been able to increase its investment programme in the current year by 63.8 bn roubles to 492.2 bn roubles compared to the 428.4 bn roubles previously approved for 2012. In 2011, the investment programmme was 395.4 bn roubles.

The increase in the Company’s investment budget will enable greater procurement of traction rolling stock in 2012, including an extra 175 locomotives to a total of 532 and the modernisation of a further 1,000 units, as well as the reconstruction of 4,400 km of track, 378 km of the overhead system and 357 km of automatic block signal systems.

In addition, in accordance with a Russian Government decision, the Company will receive about 32 bn roubles to purchase shares in the international logistics operator GEFCO if all the necessary approvals are received by the end of the year.