Russian Railways freight revenues grow 6.9% in Jan-Sept
MOSCOW. Nov 16 (Interfax) - Russian Railways (RZD) reported revenue from freight services up 6.9% year-on-year to 744.1 billion rubles in the first nine months of 2011.
The company attributes the growth to a 3% increase in freight volume to 921.7 million tonnes, and a 3.8% increase in the revenue rate, which generated respectively 20.7 billion rubles and 27.4 billion rubles of additional revenue.
RZD said volume increased primarily thanks to the growth of industrial production in the country. Freight turnover rose by 8.3% year-on-year to 2 trillion tonne-km in the nine months.
RZD's revenues from passenger services plunged 86% to 5.2 billion rubles, as long-distance services were handed over to subsidiary OJSC Federal Passenger Company as of April 1, 2010, and regional route services were handed to suburban passenger companies as of January 1, 2011.
It was reported earlier that RZD posted net profit down 19.5% to 56.1 billion rubles in the first nine months of 2011 on revenue from core activities up 7.8% to 962.3 billion rubles.
RZD said it received 42.3 billion rubles in government funding in the first nine months of 2011, including 40 billion rubles as a contribution to charter capital for the construction of facilities for the 2014 Olympics in Sochi, 800 million rubles in subsidies for railroad safety and 1.3 billion rubles under a program to support freight shippers and passengers receiving social benefits.