The key strategic goals of JSC FPC are defined by Strategic Management System, with a strategic management mechanism at its core.
As a national passenger rail carrier and the face of Russian Railways (hereinafter referred to as the Holding), the Company is aimed at meeting the demands of the economy and society. This means focusing on innovation-based and socially-oriented developments for competitive high-quality transportation services. In turn, this implies a high degree of JSC FPC involvement into state-level decision making.
Enabling economic growth, helping the economy become more competitive and improve the quality of people’s lives
Extended the geographic and technological reach of transportation services, boosting the regional economy and social sector development
Keep the volume of transportation services at the level required to enable economic collabouration inside and outside the country and allow all groups of people to move freely to satisfy their work and social life-related needs
Reducing the cost and increasing the speed of long-distance service, linking geographically separated regions, improving the quality of life, promoting business, enhancing the country’s territorial and regional unity and creating more favourable conditions for the fulfilment of potential economic and social opportunities in every region of Russia
Improving the quality of the domestic transport service, including such characteristics as service timelines, regularity, safety and environmental friendliness of long-distance passenger service
JSC FPC 2030 Development Strategy (approved by the Board of Directors of JSC FPC on June 28, 2012), in its evolutionary version that was chosen as the basic one, sets the following strategic goals and development indicators:
According to JSC FPC’s strategy, achieving these goals involves implementing a number of strategic goals, which, along with performance indicators, are set for the period to 2030 (approved by the Board of Directors of JSC FPC on June 28, 2012).
JSC FPC will implement these strategic projects, regardless of the economic development scenario; only the scale of the projects to be implemented and the resources required may differ.
In 2014, the actual figures for passenger traffic, revenue from transportation services, investment, carriage acquisition and EBITDA margin did not meet the target values.
The following factors, which had emerged in 2013 and which are going to continue in the medium term, had a negative impact on FPC’s efforts to implement its strategy:
The decline in demand for passenger was due to a drop in the standard of living against the backdrop of rising transportation service tariffs and Russia’s poor economic performance.
The population’s mobility, which is the key factor behind the demand for long-distance service, is linked directly to the state of the national economy and the welfare of households and businesses.
2014 saw a slowdown in the rate of Russia’s economic growth. The country’s performance at the macroeconomic level failed to reach the projections that had been used as the basis in drafting JSC FPC 2030 Development Strategy.
|Key macroeconomic indicators||2014|
|RF Ministry of Economic Development’s
||According to Rosstat’s dataActual figure for 2014|
|GDP growth rate, %||3,7||0,5|
|Real wages growth, %||2,6||1,3|