International Transport Expert Council 2015 Development Priorities of Urban Transport System in Moscow Agglomeration 01-02 October 2015 Deputy Mayor of Moscow in the Moscow Government and Head of the Department for Transport and Road Infrastructure Development Maxim Liksutov

Contents Current situation and key issues Approach to the new transport system strategy development Ticketing issues Non-fare revenues

Moscow is marked by a high density of population and inappropriate level of the traffic network development 2012-2014 Availability of roads, m per thousand people Availability of living space, sq.m per person Office space availability, sq.m per person Number of private cars per 1000 people Population, mln people Population density, persons per ha Moscow1 12,1 100 0.3 318 Singapore 5.5 0.6 101 Hong Kong 7.2 0.3 Tokyo 13.2 0.6 181 London 7.8 1.6 305 Berlin 3.5 1.8 320 Paris 10.4 0.9 320 Moscow lags behind global metropolitan areas in terms of supply of residential space by about a factor of two, in terms of supply of offices and roadways – by a factor of 3 to 5, while outstripping them by about a factor of 2 in terms of population density 1 Without new areas of Moscow city since 1 July 2012 Sources: information from public open sources

Moscow urban transit system is comparable to those of other megalopolises in the world… 2012-2014 Number of rolling stock units, thousands Length of bicycle tracks (incl. park zones), km Number of licensed cars, thousands Number of stations Length of lines, km Number of stations Moscow 196 327 115 150 Singapore 99 149 NA 230 Tokyo 285 310 120 Hong Kong 218 158 Paris 303 220 257 700 London 402 270 204 Berlin 146 173 166 1 068 Sources: information from public open sources

… over 15 million passengers per day use public transport Daily Ridership 2014 Annual ridership, billion/ year million 2013 2020 (estimation) 2014 Metro 6,85 2,49 2,50 2,80 Suburban Railway trains 1,86 0,67 0,68 1,32 Municipal ground transport 6,02 2,10 2,20 2,50 Taxi 0,26 0,08 0,10 0,21 Total 14,99 5,34 5,48 6,83 +140 mln. passengers +25%

Contents Current situation and key issues Approach to the new transport system strategy development Ticketing issues Non-fare revenues

IMPROVING ACCESSIBILITY The Moscow Government set an ambitious goals to improve the city transport situation 2012 2020 New transport strategy was developed based on significant input from Moscow residents and experts society Interviewing ~40 thousand Moscow residents to understand the most important issues Establishment of an expert transport council that consists of Russian and international experts to determine the key problems and develop an action plan to solve them Continuous crowd sourcing projects to fine tune transport strategy as it’s being implemented Personal Public Average travel time at the rush hour, min. INCREASING THE SPEED Total capacity of PT, million places/day Goals for 2020 INCREASING COMFORT IMPROVING ACCESSIBILITY Share of passengers using PT, percent

The new strategy is aimed at stimulating the use of public transport Main initiatives and goals by 2020 Construction of new lines with a total length of 161 km and 77 new stations Metro Railway transport Construction of additional rails with a total length of 161 km Construction of the Small Ring of the Moscow Railway and achievement of the annual ridership of 300 mln. passengers Congestion in Moscow congestion decreased by 25% according to the navigation system TomTom. Municipal ground transport 100% upgrade of the rolling stock that consists of around 12,000 rolling stock units Modernization of around 300 km of tramlines Establishment of around 300 km of dedicated lanes for public transport Establishing a complex of new ticket and tariff solutions Reducing queues at the ticket office Tariffs Legalization of a taxi market and development of clear rules for its operation; Establishment 55 thousand legal taxis network Taxi Paid parking lots in the city center Creation of park and ride facilities Establishment of 273 transfer hubs Parking lots and transfer hubs Roads Construction and reconstruction of 750 km of roads 40 Infrastructure for pedestrians and cyclists, water and air transport Development of bicycle and pedestrian zones as well as water and air transport Building up to 190 km of cycle paths and up to 17 thousand of bicycle parking lots One of the most one of the world's fastest growing bike rental system: 300 stations, 2600 bicycles, 770 thousand trips ITS deployment all over the city Creation of a unified city dispatch center for traffic control Creation of truck routes, implementing restrictions for trucks movement in various city zones, including restrictions on emission standards Traffic organization and ITS

The third meeting of the International Transport Expert Council 2015 The goal - to raise efficiency and transparency of the governments decisions by sharing and discussing them with acknowledged international experts during open meetings and workshops. 2013 Development of public transport Alan Flaush The Secretary-General of the International Union of Public Transport Since 2013 years Moscow was visited by about 30 international experts from more than 15 countries. 2014 Land Urban passenger transport «We welcome the steps that the city authorities have taken for the development of public transport. » Tickets and non-fare revenues 01 – 02 October 2015 2015 За 2 года Москву посетило 30 международных экспертов из 15 стран 30 All the ideas voiced by members of the Council, will be carefully analyzed - international experience is widely used in the implementation of the transport strategy of Moscow.

Contents Current situation and key issues Approach to the new transport system strategy development Ticketing issues Non-fare revenues

Reorganization of ticket options in Moscow On January 1, 2013, free transfers from underground railway to single-rail transport system and vice versa become possible. On February 1, 2013, “unified" tickets, which can be used in both underground and ground transport (trolley-bus, bus and tram) were adopted instead of pay-per-ride tickets in the MRT system. On April 2, 2013, "90-minutes" tickets – multimodal tickets for more economy trips by underground railway and ground transport – were adopted. On April 2, 2013, "Troyka" card and "E-wallet" ticket were adopted. Troyka — new transport card Economy single trips by underground railway and ground transport with non-expiring balance 90 minute — multimodal ticket Economy trips with transfers underground railway/ ground transport – saving up to 50 % CONVENIENCE • New, more convenient types of tickets appeared: Unified, 90-minute and Troyka card with a possibility to register any ticket • Validity period of all tickets for 3 and more rides increased from 45 to 90 days • New unlimited tickets for 3 and 7 days were adopted • The Troyka card may be used for payment in suburban trains, aeroexpress trains, and as a means of payment for other city services AVAILABILITY • The Troyka card balance replenishment via broad network of replenishment points • The direct and remote replenishment network of the Troyka card was expanded • Co-brands with leading banks were adopted Unified — convenient ticket It has replaced regular underground railway tickets, now it can be used for all types of transport TAT — tram, bus, trolley bus Cheap trips by ground transport Source: The Moscow CityTransport Agency

Main achievements of the Ticket and Tariff System Reorganization The passengers' evaluation of public transport improved: since 2010, the trips with the use of 1-2-ride-tickets were reduced almost in 3 times: from 26% in 2010 down to 9% in August 2015 The number of paid trips increased by 18% - for public transport in 2011-2015 The queues to ticket offices decreased to one third - which helped to reduce the passenger trip duration Ticket sales by driver decreased 3 times - that allowed increasing the speed of ground transport and improving transport safety The Troyka card was adopted. It is one of the best “pay as you go” tickets worldwide it is used in all types of urban transport Troyka can be replenished via Internet, mobile banking, mobile applications, as well as via SMS Above 5.0 mln. cards have been issued since April 2013 40 % of underground railway trips and 45 % of ground transport trips are paid by Troyka card (the share increases continuously), including 20% of rides with the use of E-wallet ticket (August 2015) The economy of ticket blanks made 700 mln. rubles in 2014 The ticket distibution system with the Troyka card became closer and more convenient for passengers: 34 thousand of remote Troyka card balance replenishment points 4.2 thousand of direct Troyka card balance replenishment points as well as 1.1 thousand own ticket office and 1.2 thousand terminals. Source: The Moscow CityTransport Agency 11

Contents Current situation and key issues Approach to the new transport system strategy development Ticketing issues Non-fare revenues

Potential non-fare revenues will reach RUB 13 Potential non-fare revenues will reach RUB 13.6 bln in 2020 after upgrading the advertising and retail model. Before After Trade Small and large format of pavilions, sized 4 to 15 sq.m. and 15 to 40 sq.m. accordingly Common modern facades Vending machines Pavilions covering the area 4 to15 sq.m. each Substandard counterfeit products Pavilions subobscured understanding and control of end tenants for the metro Direct rental contracts without the right to sublet – QA of tenants and products Area: 12,700 sq.m. Revenue: RUB 1.8 bln in 2014 Area: 14,600 sq.m. Revenue: RUB 3.1 bln Before After Advertisement Boards along the escalators Self-adhesive ads in trains and lobbies No advertisements in the underpassages Keeping the same advertising locations Adding modern ad formats on the walls of underpasses Revenue: RUB 2.3 bln annually Revenue: RUB 10.5 bln annually* *Price calculation from 2013 to 2020 **OPT - outdoor payment terminal.