21 January 2019

End-of-2018 operating outcomes for transport company Vostok1520

The volume of shipments made by railway operator Vostok1520 (part of First Heavy Haul Company) grew by 30% in 2018 compared with the end of the previous year, now standing at 47.8 million tonnes. The result is due in part to the growth in the size of the fleet to 36,600 units (a 16% increase), the result of sustained demand for freight cars with increased payload capacity.

The company saw its freight turnover grow by 30%, reaching 200 billion tkm. The average freight distance per shipment decreased by 7%, to 4,173 km, thanks to an increase in the share of domestic shipments by traffic volume. That share reached 20%, a growth of 3% compared with the previous year, which is partly due to the provision of transport services for energy enterprises and coal deliveries toRussia's regions.

Coal accounted for 98% of the operator's total shipping volume. Coal shipments for export accounted for 18.2% of the company's shipping volume (a year-on-year increase of 3.4%). Vostok1520 transported some 47 million tonnes of coal, of which 3.7 million tonnes was due to the increased payload capacity of the fleet (compared with what can be transported by standard cars). This lessens the burden on the transport infrastructure and helps to prevent a service deficit in the fleet, especially in the sections of the network experiencing the highest loads.

Vostok1520's efficiency on the railway transport market has been achieved through the high productivity of the company fleet, which was rated as 2.3 times more efficient than the average Russian Railways network operator.