In 2024, the volume of freight transported by Russian Railways (RZD) fell to its lowest level in 15 years. According to data released by Russian Railways, only 1.18 billion tonnes of cargo were transported this year, down 4.1% from 2023. This is the worst result since 2009, when the country was emerging from the financial crisis.
According to Reuters, along with the drop in cargo traffic, Russia has seen a drop in industrial production, although some sectors, such as the defence industry, have seen growth. However, freight is lagging far behind production.
The main problems in the railway transport sector:
- Lack of labour and locomotives. According to sources in the railway industry, some employees have left to serve in the army, which has led to a shortage of locomotive crews.
- Lack of investment. As a result of economic problems and high interest rates, Russian Railways cuts investments by 40%.
- Sanctions and infrastructure problems. Western sanctions have affected the availability of spare parts for vehicles and complicated logistics. Thus, some strategic routes, such as the Baikal-Amur Mainline and the Trans-Siberian Railway, did not meet their planned traffic volumes.
- Military operations. The war in Ukraine and the redirection of trade flows to the east are putting additional pressure on infrastructure.
The Russian coal industry is also experiencing difficulties due to sanctions, particularly on exports to the EU and the US. More than 80% of Russian coal now goes to Asia, but even there, supplies are declining.
Overall, the economic situation in Russia is deteriorating due to military aggression and international sanctions, which is having a major impact on key sectors of the economy, including rail transport and the coal industry.
