Message from the Chairman of the Board of Directors
Dear shareholders, partners and colleagues,
JSC FPC ended 2023 with solid financial performance and strong operating results. As a national long‑distance railway carrier, the Company made an effective use of the situation unfolding in the domestic freight and passenger market, turning challenges into new opportunities.
Improvement in the macroeconomic situation is one of the contributors to FPC’s operations: according to Rosstat, Russia’s GDP increased by 3.6% last year. The growth of household disposable income exceeded the forecast values, which had a positive impact on transport mobility of people. Growing interest in domestic travel is now another factor propelling the Company’s growth.
In order to meet the growing demand for rail service, FPC used available technical resources and personnel, while placing a strong focus ion passenger comfort.
The Company allocated RUB 48.9 billion (93.5% of the investment programme) for the acquisition and upgrade of the rolling stock fleet. FPC added 104 double‑deck and 427 single‑deck carriages to its fleet, which meet high comfort and safety requirements.
The use of modern rolling stock and improvement of service quality had a positive impact on the transport process, including in the tourist segment. The Company increased the number of bistro carriages with the new catering concept: there were 47 of them in 2023. Along with an electronic ticket for a tourist train, passengers now have the option to book not only a vacation package but also individual tours. The list of tourist destinations was expanded, and the Travellers’ Club became fully operational as part of the loyalty programme.
It is worth noting that in the reporting period, investments aimed at developing information technologies almost doubled and reached RUB 1.3 billion.
The Company’s work was highly appreciated by the expert community. Thus, the Analytical Credit Rating Agency affirmed FPC’s rating at AA+(RU) with a stable outlook. For the first time, the Russian Institute of Directors assigned JSC FPC a National Corporate Governance Rating of 6++, Good Corporate Governance Practice. These achievements will surely provide the Company with additional motivation for further successful development.
In 2023, FPC joined the Anti‑Corruption Charter of Russian Business and according to the rating results, received the highest grade AA+, which is assigned to organisations with the highest possible level of anti‑corruption.
The FPC’s awards portfolio has also expanded. The Company won the XIV Annual Award “Quality of Service and Consumer Rights” for a new catering concept. The Digital Leaders Award 2023 is given in recognition of the Company’s accomplishments related to digital transformation. The Red Arrow premium‑service train received the prestigious national customer confidence award “Brand No. 1 in Russia”.
I am positive that the achievements will serve as an incentive to enhance FPC’s standing within the passenger service market. The Company will continue to introduce innovative services and technologies, expand the range of train services and ensure stable railway connections between the regions of our country.