Innovation‑driven development and digital transformation

Innovations

The Group’s Comprehensive Innovative Development Programme (the CIDP) lays the groundwork for implementing the Company’s strategic priorities. It outlines 11 groups of key projects, proposes organisational improvements to innovation management, and establishes partnership mechanisms based on open innovation.

Russian Railways won the GenerationS Innovation Award in the Innovation Company of the Year category

In 2024, Russian Railways won the annual nationwide GenerationS Innovation Award in the Innovation Company of the Year category – the most prestigious of the five main categories with the highest competition levels.

Independent experts evaluated innovation work in large companies: existing corporate innovation tools, their effectiveness, and innovation culture development levels.

The GenerationS corporate accelerator has held this award since 2023, with support from the Ministry of Economic Development, Ministry of Industry and Trade, and Ministry of Science and Higher Education of Russia.

Key innovation-driven development projects in 2024

• development of the EMKA2 catenary and battery-powered electric shunter (performance tests underway);
• developing alternative fuel locomotives (modernising and modifying TEM18DM series shunting locomotives and 2TE116U mainline diesel locomotives to convert to natural gas and diesel traction);
• implementation and development of intelligent and automated customer service systems for freight transportation, including Autoagent, Electronic Claim Settlement, RZD Market, and Carbon Footprint;
• replication of virtual coupling — a wireless inter carriage link technology, single-person freight train driving technology, high-performance specialised rolling stock for infrastructure repair and maintenance, innovative loading and unloading equipment, interactive control units for a comprehensive automation system to control the marshalling process (with expanded functionality), acoustic monitoring points, and car oscillation detection systems;
• conducting research and development on articulated joint bars prototypes, universal mobile laboratory with virtual calibrator for metrological maintenance of rolling stock measuring systems, quantum communication equipment;
• introduction of innovative solutions to reduce environmental impact and save fuel and energy resources, including digital energy-saving heating systems, ceramic heating panels, removable thermal insulation, energy-saving films, and digital thermostats for heating systems.

2024 performance

• We organised reviews of over 900 innovative solutions from suppliers through our comprehensive open innovation support system by Russian Railways’ end customers. We initially implemented 150 unique innovative projects (+5.6% compared to 2023) and replicated 103 projects (+63.4% compared to 2023).
• We continued creating regional innovation platforms across the railway network. In 2024, we opened platforms in the North Caucasus, Northern, and Privolzskaya Railways (bringing our total to 13 regional innovation platforms by year-end).
• We secured RUB 73.9 m in external financing for Russian Railways’ innovation activities in 2024, including through:
  • five joint grant competitions with Russian regions for technology solution suppliers, resulting in 14 developers receiving RUB 37.0 m in grants for designing or adapting innovative solutions for Russian Railways’ end customers;
  • five AI-focused hackathons conducted within the October, Gorky, South Urals, Far Eastern, and Kaliningrad Railways, where Russian Railways participated as a case provider.
• For selecting and implementing innovative projects by Russian Railways’ end customers, we conducted the following across 14 railways in 2024:
  • over 25 innovation tours, resulting in 30+ innovative projects accepted for implementation;
  • over 35 pitch sessions, resulting in 35+ innovative projects accepted for implementation.
• Our annual Russian Railways Innovation Day featured 459 events in 2024, attended by over 1,800 external innovation environment representatives (more than 30% higher compared to 2023).
• Project activity results were considerably better than last year:
  • over 340 innovative projects selected for implementation (more than double the previous year);
  • 80 innovative projects approved for scaling up (compared to 4 projects in 2023).
• Through our Innovation Support Programme, we implemented 37 unique innovative projects (+22 compared to 2023) worth RUB 165.4 m (+RUB 49.1 million from the previous year) with RUB 62.6 m in economic benefits.

Legal protection of innovations

Protecting intellectual property and intellectual property designations is a strategic priority for Russian Railways. The Company’s extensive intellectual property portfolio makes it a leader among state-owned enterprises.

• 4,719 inventions, useful models, trademarks, software suites, and databases comprise Russian Railways’ patent portfolio.
• 365 new intellectual property items were added to the portfolio in 2024, with 18 receiving international legal protection

Digital Transformation

GRI 3-3

Our main tool for achieving key performance indicators in digitalisation and technological sovereignty is the Digital Transformation Strategy until 2025. In 2024, we updated the Strategy’s project portfolio. Currently, our portfolio through 2030 includes 64 projects.

Ensuring technological sovereignty

As part of measure to ensure technological sovereignty, Russian Railways is engaged in the Transport industry committee, the industrial competency centre for substitution of foreign industry digital products and solutions in the key Railway Transport and Logistics industries, plus competency centres for developing Russian general and applied software necessary to substitute existing foreign solutions.

We implement our digital transformation projects using Russian software and predominantly Russian radio electronic products included in the Unified Register of Russian Software and the Unified Register of Russian Radio Electronic Products.

2024 performance highlights

Russian Railways’ digital transformation proceeded across these key areas in 2024:

• Russian Railways Control and Monitoring System as our most important Company management tool, encompassing 499 indicators;
• corporate data warehouse with methodologically verified models. The warehouse is included in the Russian software register and forms part of our corporate data management system being implemented — a necessary foundation for creating predictive and forecast analytics, and AI models. Currently, 3,500 users are connected;
• AI technologies used in locomotive systems for train driver speech recognition and automated train operation. For the first time in Russia, we launched the Lastochka electric train with automated control, while testing of five shunting locomotives with 4th level automation continues;
• predictive analytics is actively used in railcar diagnostics. In 2024, we scanned 36.3 m railcars using this technology, with approximately 1 in 1,000 requiring uncoupling;
• digital services for infrastructure condition assessment. In 2024, we inspected 12,501 km of track bed and water disposal structures using unmanned aerial vehicles and underwater remotely operated vehicles. In the infrastructure development area, two particularly important projects are modules of a unified system for managing current uncoupling and planned repairs;
• Russian Railways electronic portal providing convenient and transparent interaction with passengers and corporate clients. The official portal received 264.2 m visits during 2024.

Fostering digital culture

As part of the measures to create a digital culture amongst Company employees:

• over 300 employees completed training under the Digital Transformation Leaders advanced professional training programme;
• over 200 employees completed training under the new Company Digital Transformation: Projects for Business advanced professional training programme;
• following training, 11 digital transformation projects were approved for inclusion in the Digital Transformation Strategy;
• to assess digital services use in daily and professional activities, we conduct an annual digital literacy test at Russian Railways starting from 2023;
• we developed and approved a digital competency assessment model; an inspection across all Russian Railways facilities is planned for 2025.

Digital maturity assessment at Russian Railways

In Q4 2024, we conducted a digital maturity assessment of Russian Railways for 2024. The final number of employees involved in digital transformation who underwent digital maturity assessment was 3,362 people, with a final result of 4.05 points.

Implementing AI in process flows

Russian Railways continued active development and implementation of AI technologies in its process flows throughout 2024. We focused primarily on improving infrastructure efficiency, passenger and employee safety, and analytical support for strategic decisions.

AI project implementation enabled:

• optimising operational processes and passenger flow forecasting;
• increasing safety levels at railway infrastructure facilities;
• automating monitoring of international railway projects;
• improving analytical support for strategic planning decisions.

Quantum communications

As part of quantum infrastructure development in 2024, new segments were added to the quantum network, bringing its total length to 7,012 km.

As part of R&D project implementation, we created mockups and pre‑production prototypes of 13 quantum communication products, developed prototypes of 5 products, and obtained applications for state and international registration of 78 intellectual property items.

Efforts are underway to develop the ecosystem, which includes refining regulatory frameworks, standardisation, building human capital, and promoting awareness. The ecosystem registry currently includes over 160 organisations.

We provide for training of professionals in quantum communications and related fields through 28 educational programmes at 31 universities. We created the first permanent segment of an inter‑university quantum network spanning universities in Moscow, St Petersburg, Nizhny Novgorod, and Samara.