Cost optimisation measures
In 2016, costs savings achieved through the implementation of FPC’s medium-term Stabilisation Programme, approved by the Board of Directors on 27 April 2015, totalled RUB 6.3 billion against the planned RUB 5.2 billion, a remarkable 21.2% over-achievement.
|Reduction of rolling stock maintenance and repair costs||1.4||1.8||0.4||130.6|
|Optimisation of train-kilometre performance||2.6||2.6||0.0||100.0|
|Reduction of costs for maintenance and repair of buildings, structures and equipment||0.6||0.7||0.1||126.8|
|Mothballing of fixed assets||0.1||0.6||0.5||579.6|
|Rightsizing to match performed tasks||0.6||0.6||0.05||108.7|
In addition to the Stabilisation Programme, which was taken into consideration in the cost budgeting process1, to reduce operating expenses by 10% JSC FPC’s Programme for the Reduction of Scope and Costs of Consumed Services in 2016 and the Programme of Additional Measures, were both approved by FPC’s Board of Directors on 7 October 2016 (Minutes No. 5).
The actual savings achieved under the programmes over the year totalled RUB 3.3 billion, or 105.0% of the target.
|Organisational structure optimisation||0.07||0.1||0.03||144.7|
|Working with suppliers and contractors to achieve lower cost inflation for goods and services, and reduce the scope of consumed services||3.1||3.2||0.07||103.2|
|Total for activities||3.2||3.3||0.1||105.0|