Russian Railways plays a vital role in the national economy: the country’s rail network handles 83% of freight turnover and 28% of passenger turnover across the entire transport system.
Elena Ganshina,
Associate Professor, Department of General
and Project Management,
School of Business Administration,
Financial University
under the Government of the Russian Federation
To expand its network, Russian Railways—with state support—is implementing an investment program whose budget this year stands at 713.6 billion rubles. Today, the economy needs more than cheaper transportation, but rather broader market access for the regions and new capacity in places where the existing infrastructure is overstretched. This is especially pressing against the backdrop of declining loadings in 2025.
Under these conditions, the contribution of Russian Railways should not come in the form of broad tariff cuts, but through targeted measures, including the development of new lines and junctions, prioritizing high-value-added cargo, expanding terminal infrastructure, and reducing total logistics costs.
It is also essential to integrate the rail network with inland waterways in order to create efficient multimodal corridors and lower costs on long-haul shipments of bulk and semi-finished goods.
Ultimately, the efficiency of the transport system will be determined by how developed and balanced the network itself is, as well as by its ability to move high-value-added goods.
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