20 Apr 2017 07:00
FOR IMMEDIATE RELEASE 20 April 2017
OPERATING RESULTS FOR THE first QUARTER OF 2017
Public Joint Stock Company "TransContainer" ("TransContainer" or the "Company") (LSE: TRCN) announces its preliminary operating results for the first quarter of 2017. The positive operating results were mainly influenced by the continuing recovery of the Russian container transportation market amid an improving macroeconomic environment, as well as a considerable increase in international freight flows and containerisation of domestic transportation.
Market overview
Russia's container market continued to demonstrate strong performance in the first quarter of 2017, marking the fourth consecutive quarter of growth after the last market contraction phase. The rail container transportation volumes in Russia were up 22.4% year-on-year and reached a historical high 1Q-volume of 894 thousand twenty-foot equivalent units ("TEU"). Domestic transportation increased by 12.0% year-on-year, while growth in international transportation was up 33.4% year-on-year and transit volumes almost doubled.
Russian Rail Container Transportation Market in 1Q 2017 (ISO Loaded + Empty), 000' TEU
1Q 2017 | 1Q 2016 | Change | ||
000' TEU | Percent | |||
Domestic Routes | 419.2 | 374.3 | +44.9 | +12.0% |
Export | 236.7 | 192.9 | +43.7 | +22.7% |
Import | 160.7 | 119.4 | +41.3 | +34.6% |
Transit | 77.2 | 43.3 | +33.9 | +78.2% |
All Routes | 893.7 | 729.9 | +163.8 | +22.4% |
Rail container transportation
In the reporting quarter, container volumes transported by the Company's flatcars and containers (including provision of the Company's containers to the third-party flatcars) grew by 23.7% year-on-year to 424 thousand TEU. The fastest growing segments were transit and import transportation, which grew by 55.1% and 39.8%, respectively.
Transportation of containers using TransContainer's assets in 1Q 2017 (ISO Loaded + Empty), 000' TEU
1Q 2017 | 1Q 2016 | Change | ||
000' TEU | Percent | |||
Domestic Routes | 213.7 | 187.7 | +26.0 | +13.9% |
Export | 112.8 | 87.0 | +25.8 | +29.6% |
Import | 73.9 | 52.9 | +21.1 | +39.8% |
Transit | 23.1 | 14.9 | +8.2 | +55.1% |
All Routes | 423.6 | 342.5 | +81.1 | +23.7% |
Container volumes transported by the Company's flatcar fleet in the first quarter of 2017 increased by 24.2% year-on-year to 394 thousand TEU from 317 thousand TEU a year earlier. The Company's revenue-generating[1] container
transportation volumes in Russia amounted to 331 thousand TEU in the first quarter of 2017, up 26.4% year-on-year.
Terminal handling
In the first quarter of 2017, the Company's throughput in the Russian rail container terminal network amounted to 290 thousand TEU, up 8.9% year-on-year, as the key beneficiaries from the continuing market growth in the reporting period were shippers' handling facilities (+22.6%) and ports (+27.9%) servicing international transportation volumes.
Asset utilisation
In the first quarter of 2017, flatcar and container turnover significantly improved on the back of the fast market recovery and the Company's efforts to boost the fleet management efficiency.
1Q 2017 | 1Q 2016 | |
Turnover of containers, days | 41.2 | 42.5 |
Turnover of flatcars, days | 12.1 | 15.7 |
Empty run[2] for containers, % | 31.8% | 29.3% |
Empty run for flatcars, % | 8.2% | 7.7% |
Empty run ratios increased insignificantly both for flatcars and containers due to rebalancing of cargo flows towards the Far East of Russia.
Enquiries:
TransContainer | |
Andrey Zhemchugov,First Deputy CFO | +7 495 637 9178 +7 495 609 6062 |
IR@trcont.ru | |
Website | www.trcont.ru |
Instinctif Partners |
|
Galyna Kulachek/ Dinara Shikhametova | +44 (0) 20 7457 2020 |
About TransContainer
TransContainer (LSE ticker: TRCN) is the leading intermodal container transportation company in Russia with a market share of approximately 47%. It is the market leader in Russia by flatcar fleet size, container transportation by rail and rail-side container terminal throughput. As at 31 March 2017, it owned and leased 23,432 flatcars and 68,453 ISO containers. TransContainer also owns a network of rail-side container terminals, located at 43 railway stations across Russia and operates one terminal in Slovakia under a long-term lease agreement. The Company's joint venture JSC Kedentransservice ("Kedentransservice", or "KDTS") also operates 19 inland rail-side terminals in Kazakhstan. The Company's sales network comprises of 115 sales outlets in Russia, along with additional outlets across the CIS, Europe and Asia. TransContainer is listed at Moscow Exchange and LSE. Company's major shareholder with 50% +2 shares is United Transportation and Logistics Company, established by Russian Railways, Belorussian Railway and Kazakhstan Temir Zholy.
[1] Transportation of clients' containers by the Company's rolling stock and own loaded containers by its own and third-party flatcars
[2] The empty run ratio is calculated as an average empty run in kilometers divided by an average total run in kilometers