Investment Management

As an integral component of the Development Strategy, the Company’s Investment Policy establishes investment priorities, structure, criteria, areas, and sources.

Investment ranking

The Company’s investment projects are ranked into five categories:

  • Long-term projects
  • Replacement of retired fixed assets generating financial impact
  • Cost-effective projects
  • Replacement of retired fixed assets generating technological impact
  • Technology and social projects

Each project is ranked from 0 to 100. The higher the score, the higher priority is given to the project within the investment programme.

Investment programme structure by project category
Programme Share in the programme, % Rank

Long-term projects

Revamping of carriage washing facilities, construction and revamping of engineering networks and facilities

3 From 63 to 100

Replacement of retired fixed assets with a direct financial impact

Replacement of single-decker carriages

36 From 46 to 100

Projects with a direct financial impact

Acquisition of double-decker carriages and installation of meters for water consumption and discharge

33 From 26 to 80

Replacement of retired fixed assets with a technological impact

Upgrading rolling stock, renewing hazardous industrial facilities, acquiring company cars

25 From 18 to 45
Technology and social projects 3 From 0 to 25
Total 100

Investment structure

In the reporting period, RUB 45.3 billion (97.8 % of total investment) were allocated for passenger rolling stock replacement and upgrades.

The remaining CAPEX totalling RUB 1.0 billion, or 2.2 %, was used to support depot upgrades, IT projects, and other initiatives.

Investment programme structure, RUB billion
Indicators 2018 2019 2020 Change 2020/2019
Rolling stock acquisition 30.9 30.7 34.2 3.5
Rolling stock upgrades 11.1 11.2 11.1 –0.1
Depot upgrades 0.9 1.1 0.6 –0.5
IT projects 0.2 0.4 0.3 –0.1
Other projects 0.8 0.3 0.1 –0.2
Total 43.9 43.7 46.3 2.6

Passenger rolling stock replacement

CAPEX in 2020 – RUB 34.2 billion:

  • RUB 32.1 billion for acquisition of new passenger carriages including:
    • 358 single-decker carriages of the new, 2019 model range
    • 175 double-decker carriages
  • for the purchase of used passenger carriages – RUB 2.1 billion

The new rolling stock was purchased to upgrade the fleet and replace retired carriages.

The Company’s carriage procurement programme prioritises rolling stock acquisition to replace retired carriages and upgrade profit-making trains. A total of 473 carriages (RUB 18.2 billion) were purchased for this purpose in 2020.

For profitable, high-demand passenger destinations, the Company also purchased 175 double-decker carriages (worth RUB 16.0 billion) to introduce trains on the following routes: Moscow–Petrozavodsk, Moscow–Kazan, Moscow–Saint Petersburg, and Saint Petersburg–Murmansk.

Passenger rolling stock upgrades

CAPEX in 2020 – RUB 11.1 billion:

A large portion of the funds (RUB 10.7 billion, or 96.4 %) was used to perform overhauls with service life extension (overhaul reconditioning) and upgrades for 447 carriages.

Depot upgrades

CAPEX in 2020 – RUB 0.6 billion:

Investments in depots were primarily used to:

  • upgrade existing production facilities (RUB 0.4 billion)
  • purchase equipment to ensure uninterrupted depot operations (RUB 0.2 billion).

IT projects

RUB 0.3 billion were spent on IT projects at FPC in 2020 (development of FPC’s control and monitoring system, and supply of specialised equipment for ticket offices, as well as network, server and peripheral equipment).

Other projects

Investments in other projects totalled RUB 0.1 billion (acquisition of equipment for transport safety and security, drafting of design documents, etc.).

Sources of financing for the investment programme:

  • Equity (retained earnings) – RUB 6.6 billion
  • Borrowings (proceeds from share issue, change in working capital) – RUB 39.7 billion

Priority investment areas

Customer-focused investment

FPC spent RUB 42.7 billion in 2020 to improve its customer experience through a number of initiatives:

  • 533 new, highly efficient passenger carriages were purchased, with improved performance and passenger comfort, with the investments totalling RUB 32.1 billion and aimed at reducing transit times and enhancing both transport safety and passenger experience
  • RUB 10.7 billion were spent on passenger carriage overhaul reconditioning (447 carriages)

Besides, RUB 0.3 billion were spent on the implementation of information technology innovations.

Investment in safety

RUB 0.5 billion were used in 2020 to enhance passenger safety and improve the passenger experience.

Major investments in transport safety included:

  • RUB 0.2 billion to replace retired rolling stock
  • RUB 0.3 billion to install new frames, bolsters, and 1,520 mm gauge bogies during scheduled carriage repairs.


To maintain its existing carriage repair and maintenance facilities, FPC invested RUB 0.4 billion in rehabilitation and upgrades of its fixed assets in 2020

Company employee

Medium-term investment

The long-term agreement with TVZ for rolling stock development, design, manufacture, testing, and certification in 2019–2025 provides for the supply of 3,731 carriages for a total of RUB 237 billion.

The rolling stock acquisition programme is based on investment efficiency. FPC’s priority is to continue upgrading its profitable rolling stock, making sure the profit is enough to pay the investment off during the rolling stock service life.

The type of rolling stock for each destination is selected based on economic factors such as profitability and return on investment, as well as technical limitations such as utilising particular carriages on specific routes.

Double-decker carriages have twice the capacity of single-decker carriages and are therefore more cost-effective. Double-decker carriages are especially popular on routes with limited infrastructure as each double-decker carriage can replace two single-decker carriages, enabling FPC to halve the number of passenger trains. Also, FPC’s double-decker rolling stock meets all modern requirements for passenger comfort on-board trains.

At the same time, the operation of double-decker carriages requires retrofitted originating and turnaround stations, in particular, inspection pits and high-voltage charging points.

Unlike double-deckers, single-decker carriages can be operated throughout the entire network of Russian Railways. Single-decker procurement is planned based on the existing carriage type system – first-class sleeping, second-class sleeping, and third-class open sleeping carriages.

Modern third-class open sleeping carriages have a higher capacity to meet established passenger preferences and maintain lower fares.

Since 2019, new rolling stock, Carriage-2019, has been procured. The carriage was designed to provide for more capacity and semi-automated customer service on board.

Acquisition of locomotive-hauled passenger carriages with seats is viable for routes of up to six hours of travel time and sufficient passenger traffic. The Company determines the most efficient type of rolling stock for each destination, considering investment performance and technical limitations.

The Passenger Rolling Stock Upgrade project for 2021–2023 provides for RUB 20.1 billion of CAPEX, including RUB 10.2 billion for performing overhauls with service life extension (overhaul reconditioning) on 401 carriages.

Moreover, in 2021–2023, FPC plans to allocate RUB 2.8 billion for depot upgrades and RUB 2.3 billion for IT projects.

FPC plans to invest a total of RUB 0.3 billion into other projects in 2021–2023.

Sources of financing

Sources of financing for the investment programme in 2020 included:

  • equity (earnings retained by the Company) – RUB 6.6 billion
  • borrowings – RUB 39.6 billion (including RUB 20.0 billion in proceeds from share issue, and RUB 19.6 billion from change in working capital).