In 2016, Russian Railways group’s revenues increased by 7.1% year-on-year, and amounted RUB 2 trillion (USD 37.5 billion)
Cargo and infrastructure access revenues grew by 5,2% to RUB 1 324 billion (USD 23 billion) which was mainly driven by the tariff indexation for cargo rail transport at 9% and cargo volumes increase of 1,6%. Herewith a change in a cargo structure in favor of low-profit types of cargo and provision of discounts on certain routes had a restraining impact on the freight traffic revenues of the RZD Group. Passenger revenues increased by 13,4 % to RUB 219 billion (USD 3.8 billion) due to increase of passenger turnover in amount of 3,4% compared to the previous year, tariff indexation in the deregulated segment and reduction of VAT rate to 10%.
Revenues in logistic segment increased by 14,4% to RUB 352 billion (USD 6.2 billion) due to higher revenues of GEFCO international sales and due to devaluation of ruble in 2016 on average comparing to 2015. A share of logistics’ revenues amounted to 16,5 % of the consolidated sales in 2016.
The Group’s operating costs (excluding loss on impairment of property, plant and equipment) increased by 3,7% year-on-year over the reporting period to RUB 1 953 billion (USD 34.3 billion). Major drivers of costs’ growth were increase in expenses on electricity given the tariff indexation in that segment, higher staff costs and increase in purchased freight forwarding and logistics services
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