July 17, 2019

2019 operating results for Vostok1520 transportation company

Railway operator Vostok1520 (part of First Heavy Haul Company) retained its leading positions for efficient fleet operation at the end of the first half of 2019. Car performance reached 14,400 tkm per car per day, which is more than twice as high as the average car on the Russian Railways network.

Performance is one of the most important indicators of an operator’s efficiency. The high performance has been achieved through the improved technical and economic characteristics of the cars themselves, high rates of fail-safe performances and high control technology standards, which are based on a number of factors – volumes, timing, and infrastructural capacity for different routes across the network. Thanks to the high performance, rolling stock turnover is improved, and a smooth supply of cars for loading and unloading is ensured, leading to a significant net reduction in the load on the transport infrastructure.

Vostok1520 shipped 19.9 million tonnes of freight over the period, with a turnover of 81.7 billion tonne-kilometres. These figures are 14.9% and 18.1% lower than for the same period last year respectively. The average daily operational fleet size was 31,400, whereas at the end of H1 2018 the fleet numbered 37,000 gondola cars. The decline is due to the expiration of a number of operational leasing contracts. 

Over the reporting period Vostok1520 transported 19.4 million tonnes of coal, of which 1.8 million additional tonnes were shipped thanks to the increased payload capacity of the fleet (it would have been impossible to transport this volume using standard cars). It is worth mentioning that the company is working hard to expand its domestic freight operations – its share has increased by 3% compared with the same period last year, to 21.2%. The operator increased its coal shipments both to energy suppliers such as Sibeco (Novosibirsk), Teploresurs (Anzherskaya railway station),Krasnoyarskaya TETS-1 (Krasnoyarsk), TGK-2 (Severodvinsk) and Ryazan Power Station, as well as metallurgical and chemical enterprises including Ural Steel, EVRAZ ZSMK, and Siberian Chemical Combine.

Vostok1520 is actively expanding the network of ports receiving its goods. 56% of export volumes transported by the operator are accounted for by high-tech coal terminals with rotary car dumpers: Vostochny Port, Rosterminalugol, and Daltransugol. The company is developing its partnerships with non-specialised terminals, including Port of Vysotsky, Port of Murmansk, MRC, Maly Port, Nakhodka Marine Trade Port, Terminal Astafieva, Attis Enterprise, Vostochny-Ural Terminal, Vostochnaya Stevedoring Company, Port of Vyborg, Port of Tuapse and Port of Novorossiysk, as well as land border crossings at Dzerzhinskaya-Novaya, Kamyshovaya and Zabaikalsk railway stations. Vostok1520 also began shipments to new terminals at the Port of Riga (Krievu Sala station) and Port Vera in the Far East during the reporting period.

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