16 October 2018

Operating outcomes for transport company Vostok1520 in the first nine months of 2018

Shipment volumes for railway operator Vostok1520 (part of First Heavy Haul Company) were 40% higher during the first nine months of 2018 than in the same period last year, standing at 35.7 million tonnes. The result is due in part to the growth in the size of the fleet to 36,600 units (a 23% increase), the result of sustained demand for freight cars of increased payload capacity.

The company's freight turnover grew by 40%, reaching 151.2 billion tkm. The average freight distance per shipment decreased by 4.4% to 4,000 km, caused by a partial reallocation of coal deliveries to the domestic market. The share of domestic shipments made by the company's cars grew from 4.6% (end of Q3 2017) to 19.2% at the end of Q3 2018.

Vostok1520's efficiency on the railway shipment market has been achieved through the high productivity of the company's fleet. The fleet's productivity indicator was 2.3 times higher than the average Russian Railways network operator. Coal shipments for export accounted for 18.2% of the company's shipping volume (a year-on-year increase of 4%).

Vostok1520 transported 35 million tonnes of coal over the accounting period, of which 3.2 million tonnes was due to the increased payload capacity of the fleet (compared with what can be transported by standard cars). This allows the transport infrastructure to better deal with freight volumes and increases the carrying capacity of the network, allowing it to fulfil both exports and domestic shipments.