TransContainer announces its preliminary operating results for the first quarter of 2019. TransContainer’s positive operating results reflect its efforts in keeping the leading position in the Russian container transportation market, which continued to grow, fueled by international trade, higher transit volumes, as well as the continuing growth in
Russian rail containerisation.
Russia’s container market continued to demonstrate strong performance in the first quarter of 2019. Тhe transportation volumes were up 15.4% year-on-year to 1,159 thousand twenty-foot equivalent units (“TEU”). This was driven by a 18.6% year-on-year growth in international transportation, showing the sustainable increase across all segments. Domestic transportation increased by 11.2% year-on-year, mainly due to continuing growth in containerisation level.
Russian Rail Container Transportation Market in 1Q 2019 (ISO Loaded + Empty), 000′ TEU
Rail container transportation
Starting from this reporting quarter, the Company considers a combination of container volumes transported by its own flatcars and those by third party flatcars, which run under the Company’s management, as the main indicator for determining the Company’s transportation volume and the Company’s market share. This indicator is therefore referred to as “the transportation volumes controlled by the Company”. In addition to the transportation by the Company’s assets (containers and/or flatcars), the new indicator includes transportation volumes of third party containers on third party flatcars, which run under the Company’s management (TransContainer acts as an agent of the flatcar owner). This change reflects the Company’s strategic objective to move towards optimising its asset structure and being a logistics company as well as a rail fleet operator.
Container transportation volumes controlled by the Company increased in the reporting quarter by 7.7% year-on-year to 492 thousand TEU, mainly due to the growth on import and transit routes, up 17.4% and 13.4%, respectively.
Container transportation controlled by TransContainer in 1Q 2019 (ISO Loaded + Empty), 000′ TEU
Container volumes transported by the Company’s flatcar fleet in the first quarter of 2019 grew by 12.7% year-on-year to 467 thousand TEU from 414 thousand TEU a year earlier, in line with an increased fleet capacity. Container volumes transported by the Company’s assets in the first quarter of 2019 increased by 10.6% year-on-year to 481 thousand TEU from 435 thousand TEU in a corresponding quarter of 2018. The Company’s revenue-generating container transportation volumes in Russia amounted to 391 thousand TEU, up 12.4% year-on-year, due to the empty run optimisation.
In the first quarter of 2019, the Company’s transportation volumes lagged behind the market dynamics, mainly as a result of lower growth rates of transportation volumes of its own empty containers, which were up 3.9% year-on-year as compared to 26.6% year-on-year increase of empty container transportation volume for the whole market.
Read the full report here.