Michael Korjakin: Profitableness of transportations is gradually restoring
Operative data of transport companies specifies in forward growth of transportations volumes. After tank proprietors also operators gradually reach the level of pre-crisis indicators who have bet on a diversification of park of rolling stock. Among them Transgarant, entering into a railway division of FESCO Transportation Group. Michael Korjakin has told to Transport magazine about companyТs performance indicators for three quarters of current year and some tendencies of transportation market.
- The company shows considerable growth of transportation volumes and freight rail turnover. What are the principal causes? And is there any positive dynamics on such indicator as decrease in empty run?
- Within 2010 Transgarant managed to restore volumes of transportations, and to approach them to level of pre-crisis 2008. We connect it, undoubtedly, with revival of the Russian economy, with gradual restoration of manufacture and trade. And, of course, with our own activity Ц we pursue an open-door policy for our clients constantly to learn what new services we can offer them. It helps to find new points of contact.
Transgarant traditionally transports a considerable quantity of cargoes of I tariff class Ц for today their share in the general transportation volume makes 83 %. At raw cargoes for 9 months of this year in comparison with the similar period 2009 we observe good dynamics: iron ore raw materials Ц growth by 18.5%, rubble Ц by 88%, coal Ц by 62%, lime Ц by 66%.
I am often asked how Transgarant has made coal transportations attractive to the client? The company is engaged in coal deliveries for a long time, having proved to the market that transportations not only expensive cargoes can be profitable. The main thing is the logistics and meeting the client requirements. Now volume of coal transportations is 1 million tons a month, itТs 47 % of our total transportations. We transport coal both for home consumption and export. By the way, during the crisis we focused on coal transportations, redirecting the rolling stock from Siberia to the Far East. And as we always are guided by long-term mutual relations with our partners in the near future we will continue to execute long-term contracts with such clients as SUEK, Mechel, Vostsibugol.
Profitability of transportations is gradually restoring, however it has not reached pre-crisis stands yet. Empty run ratio now makes 37% (decrease by 10% in comparison with 2009). Restoration of profitability is helped by our primary strategy directed to diversification of rolling stock. In general we have considerable quantity of specialized cars Ц about half of total fleet in management (for today it is an order of 15.8 thousand units). By the way, for this reason the empty run ratio isn't the basic stand of our efficiency. ItТs always above at specialized park than at universal. The profitableness of every car is more important for us, and for the client the variety of cars means a number of competitive advantages. For example, we transport crushed stone by specialized ore-pellet cars, the number of which is the biggest at railway network and amounts to more than 3 thousand units. The specialized fleet allows considerably reduce the congestion of railway stations at the expense of faster unloading of ore-pellet cars (at 10 times against gondola cars unloading).
- What double growth of container transportations for 9 months of current year is caused? What forecast do you have till the end of the year and on prospect? How big is the role of the parent structures?
Except raw cargoes Transgarant shows good dynamics at container transportations. Here we realize the strategy of development of FESCO Transportation Group, where Transgarant enters as the base company of a railway division Ц and within the last two years became a large enough container operator. We have offered the client the new service, having presented containers, fitting flat cars and shipping within the limits of one group Ц FESCO Ц and these efforts should bring visible results. So, for 9 months of this year (in comparison with 2009) container transportations have grown 2 times Ц to 80 thousand TEU.
Container transportation volumes managed to be kept even in 2009 despite the general falling in this segment, when Transgarant was timely reoriented from import container stream to the retail in-Russian.
This year we have continued service development of the accelerated container trains and within the limits of FESCO have renewed the through container message between Finland and the countries JUVA. It has already sent two container trains now from port Hamina with cargoes of the Finnish pulp and paper industry. It is the big joint project together with logistical company Nurminen Logistics cooperation with Transgarant has begun two years ago. Then the annual contract on mass cargoes transportation from Finland to Russia and the CIS countries has been concluded. More difficult project in which some companies of group are involved then was born. Transgarant gives a rolling stock (fitting flat cars). FESCO Integrated Transport - the forwarding agent of service - has incurred responsibility for safety of containers, further own ships FESCO on linear service of group provide delivery of cargo from port Vostochnyi to JUVA.
I want to note the big role of JSCo Russian Railways which promotes development of the accelerated container trains service, giving the allocated thread of the schedule. I think that interaction FESCO with the Russian Railways will allow bring the appreciable contribution to a solution of a disbalance problem of container streams. For today through service FESCO from Finland to JUVA by Trans-Siberian Railway is one of few projects in practice solving this serious problem.
- The forecast of volumes on a year, on what group of cargoes does the basic calculation becomes?
Directions I have told about Ц transportation of raw cargoes and transportation of containers Ц are the cores for our further strategy as their development has already allowed us to achieve quite good results Ц volume of companies transportations for 9 months of this year Ц 18 million tons, a freight rail turnover Ц 26 billion t-km. Growth accordingly on 35% and 44% in comparison with the same period of last year. And we transport these volumes much smaller quantity of a rolling stock, than, say, in 2008. By results of 2010 it is roughly possible to name following figures: volume of transportations Ц 24 million tons, a freight rail turnover Ц 35 billion t-km.
The source: Transport