Interfax reported that Russian Railways reported revenue from freight services up 6.9%YoY to RUB 744.1 billion 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 RUB 20.7 billion and RUB 27.4 billion of additional revenue.

RZD said volume increased primarily thanks to the growth of industrial production in the country. Freight turnover rose by 8.3%YoY to 2 trillion tonne kilometres in the nine months. RZD revenues from passenger services plunged 86% to RUB 5.2 billion 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 RUB 56.1 billion in the first nine months of 2011 on revenue from core activities up 7.8% to RUB 962.3 billion.

RZD said it received RUB 42.3 billion in government funding in the first nine months of 2011 including RUB 40 billion as a contribution to charter capital for the construction of facilities for the 2014 Olympics in Sochi, RUB 800 million in subsidies for railroad safety and RUB 1.3 billion under a program to support freight shippers and passengers receiving social benefits.

(Sourced from Interfax)