Russian Railways (RZD) is wrapping up 2024 with a net profit that is 90 per cent lower than it was expected. RZD’s financial leftovers amount to 15 billion rubles (142,4 million euros), whereas it was hoping for 122 billion (1,16 billion euros).
RZD has had a rough year, with staff and locomotive shortages and a subsequent decline in loading for every single month of 2024. The preliminary financial results speak for themselves, with the company only achieving a tenth of the annual profit it was projected to reach, according to Russian media.
Now, the company is having to amend its investment programme and financial plan for the coming year. A soon-to-be-held meeting is supposed to tackle the question of RZD’s finances in 2025.
Loading losses
Preliminary figures indicate that Russian Railways has lost four per cent in loading compared to 2023, which is 6,5 per cent lower than projections. It was hoping to load 1265,4 million tonnes, but managed 1189,9 million tonnes.
When compared to the plan for 2024, the company mostly lost out in construction material loading (-32 million tonnes), coal (-28 million tonnes), ores (-14,9 million tonnes), ferrous metals (-6,3 million tonnes) and petroleum products (-4,4 million tonnes).
Besides a staff and locomotive shortage, Russian media cite a price conflict with the Black Sea port of Taman and a shift to road construction as underlying factors for the lacking results.
Two major incidents in short successes
In line with the mounting problems on the Russian railways, two major incidents struck the country’s network over the past four days. Two freight trains collided over the weekend as a result of an axle fracture in the Zabaykalsky region in eastern Russia, derailing 42 wagons.
Earlier in the week, a passenger train collided with a freight train in the Murmansk region, killing one woman and wounding 22. According to Russian media, a malfunction in the freight train caused the incident.