Cost optimisation

The programme factors in Russian Railways’ benchmarking against global peers in key lines of business, best Russian and international practices, state of technology, management practices, and optimisation opportunities broken down by:

• improvements in labour productivity;
• improvements in quality standards for utilising the rolling stock;
• introduction of resource-saving technologies;
• improvements in procurement procedures and supplier management with a view to curbing price growth;
• decrease in specific consumption of electricity and fuel for train traction;
• operating domain technologies;
• asset optimisation, including through disposal of non-core assets;
• review of existing regulations and standards in the light of the cutting-edge materials, equipment, transportation and track repair technologies;
• technological improvements and innovations, including better maintenance standards as part of the railway line classification, differentiation of freight and passenger railway lines, new equipment and techniques, advanced transportation technologies, higher efficiency of low intensity railway sections, etc.

The programme is focused on ensuring continuous and comprehensive improvement of operational efficiency and cost optimisation across all of its key business processes.

Key effects of Russian Railways’ efficiency improvement initiatives in 2018