1. Senior Vice-President for Innovation Development - Chief Engineer, JSC “Russian Railways” VALENTIN GAPANOVICH USING INTERNATIONAL STANDARDS BY RUSSIAN RAILWAYS

2. RUSSIAN RAILWAYS COLLABORATION WITH STANDARDS ORGANIZATIONS ISO/ТС 269 «Railway applications» IEC/TC 9 «Electrical equipment and systems for railways» VNIIZhT R&D Support: NIIASVNIKTI IERT Standardization System 2 Organization for Cooperation between Railways (OCBR) International Union of Railways (UIC) © Russian Railways

3. THE AMOUNT OF WORK ON STANDARDIZATION 2010-2014, PLAN FOR 2015-2016: Technical Regulations of the Customs Union (TR CU) introduced: TR CU 001/2011 On safety of railway rolling stock TR CU 001/2011 On safety of ultra high-speed railway transport TR CU 001/2011 On safety of railway transport infrastructure Technical Regulations of the Customs Union (TR CU) introduced: TR CU 001/2011 On safety of railway rolling stock TR CU 001/2011 On safety of ultra high-speed railway transport TR CU 001/2011 On safety of railway transport infrastructure The following standards approved: interstate standards – 122 national standards – 95 Russian Railways corporate standards – 71 EU-compatible 1520 mm gauge standards developed for 5 rail transport subsystems based on the national regulatory framework EU-compatible 1520 mm gauge standards developed for 5 rail transport subsystems based on the national regulatory framework Currently in the development: interstate standards– 56 national standards – 20 Russian Railways corporate standards – 38 3 © Russian Railways

4. INTERNATIONAL RAILWAY INDUSTRY STANDARD (IRIS) IN RUSSIA Russian Railways Non-profit Partnership, Association of Railway Equipment Manufacturers Management Center European Rail Industry Association 91 companies certified in Russia 8 companies certified in the CIS 125 Russian companies registered on the IRIS Portal IRIS certification bodies operating in Russia Associate member of Representative offices of foreign certification bodies: Russian Register Certification Association Russian certification body: 4 © Russian Railways

5. COLLABORATION BETWEEN THE EUROPEAN RAIL INDUSTRY ASSOCIATION (UNIFE) AND THE NONCOMERCIAL PARNERSHIP «UNION OF INDUSTRIES OF RAILWAY EQUIPMENT» (NP UIRE) Information Guide "Conformity assessment and authorisation of railway products in the Customs Union in the framework of the Eurasian Economic Community and the European Union"  Memorandum of Cooperation and License Agreement between UNIFE and NP UIRE, 2007  Recognition of Russian as an official language in the IRIS-2013 system (a single case for transport standards)  IRIS certification in Russian: 2014  Russian Railways participation in the IRIS Advisory Board  Russian Railways - UNIFE joint working group on harmonization of technical regulations in Russia and the EU 8 basic documents for cooperation between UNIFE and NP UIRE An agreement will be signed between Russian Railways and UNIFE. This will be the first agreement between UNIFE and the infrastructure owner. The guide contains information about the procedure for conformity assessment and authorisation of railway products in the Customs Union in the framework of the Eurasian Economic Community and the European Union and includes a Glossary of railway terms. The Fifth International Fair of Railway Equipment and Technologies EXPO 1520 September 2-5, 2015; Russia, Moscow, Experimental Ring of the Russian Railways Research Institute (VNIIZhT) 5 © Russian Railways

6. DEVELOPMENT STRATEGY IRIS ADDENDUM 2015 (Infrastructure becomes IRIS scope of certification), issued on the proposal of Russian Railways, effective from July 1, 2015 IRIS assessment sheet, along with the IRIS booklet, is currently available in Russian Certification of structural divisions of Russian Railways Southern High Speed Traffic Division Lastochka Electric Locomotive Service (preparing for certification: December 2015) Chelyabinsk car repair depot of the Car Repair Company No. 2 (preparing for certification: December 2015) Plan for 2015: certification of 20 railway manufacturing plants. Preparing for the certification of producers of infrastructure components in 2015-2016. 6 © Russian Railways

7. PROGRESS OF ENTERPRISES THAT INTRODUCED IRIS Examples of improved quality and reduced number of hardware failures at some enterprises 2011201220132014 Vyksa Steel Works (all-rolled wheels, failures) 43414027 IRIS introduced Chelyabinsk Electric Locomotive Repair Plant (VL10 electric locomotive, failures) 323303261184 IRIS introduced Novosibirsk Electric Locomotive Repair Plant (VL10 electric locomotive, failures) 86705849 IRIS introduced Yaroslavl Car Repair Plant (axle equipment, failures) 2627129 IRIS introduced KLUB-U mean time between failures before/after the implementation of the IRIS project: 314,480 / 455,019 hours (+44%) Advantages for certificate holders: preferences in tenders for the supply of products to Russian Railways with the prospect of long-term contracts Example of quality management using IRIS tools at the Novocherkassk Electric Locomotive Plant 2011201220132014 3ES5K electric locomotive Deviation from acceptance requirements, % 96%91%85%60% EP1M electric locomotive Failure reduction per million km 13,29,15,34,0 IRIS introduced 7 © Russian Railways

8. RESOURCE LIFE CYCLE COST DEVELOPMENTPRODUCTIONINSTALLATION OPERATION, MAINTENANCE AND REPAIR DISPOSALUPGRADE/OVERHAUL INVESTMENTOPERATING COSTS RESOURCE, RISK AND RELIABILITY MANAGEMENT AT DIFFERENT LIFE-CYCLE STAGES (RRRM) RELIABILITYAVAILABILITYMAINTAINABILITY λ - failure rate λ - failure rate of newly commissioned facilities λ upg - failure rate after facility upgrade λ - pre-failure rate X 1 - mean time to failure (for nonrepairable items) X - mean time to failure (for repairable items) f r - reserve use frequency K d – downtime ratio Т r – mean time to restore λ c – critical failure rate X c – mean time to critical failure R R A A M M S S RELIABILITY SAFETY OBJECTS AND SUBJECTS OF RAILWAY TRANSPORT MIN PLANNING RESULT ANALYSIS AND CORRECTIVE ACTIONS © Russian Railways INTEGRATED RESOURCE, RISK AND RELIABILITY MANAGEMENT AT DIFFERENT LIFE-CYCLE STAGES OF RAILWAY TRANSPORT FACILITIES (STADNDARDIZATION DOCUMENTS PACKAGE) 8

9. GOST – 2 documents Terminology GOST R – 5 documents Subject matter: – risk management – reliability and functional safety parameters Russian Railways corporate standards – 16 documents Subject matter: – risk (including professional risk) management – reliability and functional safety requirements and parameters – life cycle management cost – cyber security assessment of automated process control systems. Methodology: 78 documents Subject matter: – hardware and software risk assessment – calculation of reliability and functional safety parameters – economy and procurements – assessment of structural units Classifiers: 8 documents Subject matter: – pre-failures – procurements GOST – 2 documents Terminology GOST R – 5 documents Subject matter: – risk management – reliability and functional safety parameters Russian Railways corporate standards – 16 documents Subject matter: – risk (including professional risk) management – reliability and functional safety requirements and parameters – life cycle management cost – cyber security assessment of automated process control systems. Methodology: 78 documents Subject matter: – hardware and software risk assessment – calculation of reliability and functional safety parameters – economy and procurements – assessment of structural units Classifiers: 8 documents Subject matter: – pre-failures – procurements Total: 109 documents URRAN GUIDELINES AND REGULATIONS Scope: Making procurements taking into account the cost of life cycle Maintenance based on risk assessment Improving the reliability and safety of hardware and software in conditions of limited resources Improving the efficiency of resource allocation at different life-cycle stages 9 © Russian Railways

10. URRAN Indicators Application area Performance indicators 20132014 % (+/-) DURABILITY Longer service life of the sleepers 7%-11% The number of failures technical equipment 3480727272– 21,5% SAFETY The number of violations of traffic safety 39482348– 40% FIRE SAFETY Number of fires 11784– 28% ENVIRONMENTAL SAFETY Exacted as compensation for damage caused by violation of environmental legislation 59921659– 72% VITALITY Reducing the number to be replaced thermostrengthened rails after polishing – 25% ECONOMY The economic effect from the implementation of URRAN on 1 km of track, portion of line selected for repair 1 514 Euro RELIABILITY RESULTS OF IMPLEMENTATION URRAN STANDARDS IN RUSSIAN RAILWAYS © Russian Railways R R A A M M D D P P E E S S S S E E 10

11. © ОАО «РЖД» The United Transport and Logistics Company will guarantee the following within the terminal-to terminal section Regular departures Stable delivery time Stable planning of shipping charges Freight safety INTEGRATED TRANSPORT AND LOGISTICS SYSTEM Project of the United Transport and Logistics Company of the Common Economic Space Shared use of the rolling stock Common forwarding technology Traffic diagram optimization mechanism Single payment system Infrastructure development optimization Meeting the requirements of international clients EFFECTIVE OPERATION WILL BE ENSURED DUE TO MODERN REGULATORY FRAMEWORK 11 © Russian Railways

12. Thank you for your attention!