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April 3, 2019

Q1 2019 Operating Results for Vostok1520 Transportation Company

Shipment volumes for railway operator Vostok1520 (part of First Heavy Haul Company) grew by 4.5% in the first quarter of 2019 compared with the same period in 2018, reaching 11.5 million tonnes. The company’s rolling stock now stands at 36,600 cars (representing a growth of 4%).

The company achieved a freight mileage of 44.1 billion tonne kilometres (-6.1%), with an average distance of 3,800 kilometres (-10.0%). The reduced figures are down to logistical changes: the company is systematically increasing its domestic shipments, providing coal to a socially significant market segment – the energy and utilities sector. This sector now accounts for a quarter of traffic (an increase of 5.4%).

The company shipped 11.2 million tonnes of coal and 0.3 million tonnes of metal freight products during the accounting period. Thanks to the increased payload capacity of the cars (compared with a standard fleet of the same size), there was an increase in fuel transportation of almost 0.9 million tonnes. Vostok1520’s share of the Russian coal export market remained at the same level as Q1 2018 (about 17%). The use of next-generation cars on busy export routes allows the company to fulfil a larger number of orders from shippers and is helping to facilitate an extensive modernization programme being carried out across the Russian Railways infrastructure.

The company is working continually to improve the technologies used in its transportation processes and to minimize empty mileage. In Q1 2019, the company entered into a partnership with Belarusian Railway to create direct shipping routes in the directions where only single car loads were used previously. This technological solution reduces the load on Russian Railwaysclassification yards, ensures the regular flow of cars through loading stations and improves transportation planning.

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