Russian Railways (RZD) is planning to create a new subsidiary to handle long-distance passenger transportation.

The new company, Federal Passenger Company, will be created with an equity capital of $4.6bn (RUB136.8bn) on the basis of assets owned by RZD subsidiary Federal Passenger Directorate.

RZD has developed two draft development and investment programmes for the new company – the baseline scenario and an ambitious scenario.

Nearly RUB257.4bn will be invested under the first scenario and RUB442.5bn under the second, from 2010 to 2020.

Nearly 1,540 carriages are planned to be bought over the next three years and 4,080 carriages in 2013–2020 under the first scenario.

Nearly 1,698 carriages are planned to be bought in the first three years and 6,864 carriages by 2020 under the second scenario.

RZD is also planning to buy 200 RIC-sized carriages from 2011 to 2014.

The plan will now be proposed to the Board for approval.