First again first // Railway operators move up in the ranking

According to the results of the first quarter, Vladimir Lisin’s First Freight Company (Freight One) regained its leadership in the ranking of railway operators, which it had lost four years ago, displacing the Federal Freight Company (FGK), a member of Russian Railways, from the first position. According to experts, the reason for the loss of FGK’s positions is the reduction in operations to maintain rates at an acceptable level, and soon, as the freight market revives, the situation may change.

In the first quarter, there were changes in the hierarchy of railway operators. For the first time in four years, the leader of the rating, the Federal Freight Company (FGK, controlled by Russian Railways), yielded first place to the First Freight Company (Freight One) of Vladimir Lisin. As follows from the INFOLine Rail Russia TOP rating for the first quarter, FGK, which yielded Freight One in terms of loading back in 2018 (see Kommersant dated March 21, 2019), continues to lead in terms of the size of its fleet in ownership and management. However, if Freight One’s cargo turnover grew by 9.4% by the first quarter of 2020, it fell by 7.1% for Freight One, which threw the company down to second place in terms of this indicator.

The dynamics of revenue for 2020, which is also included in the rating for the first quarter, did not develop in favor of the subsidiary of the state holding. Traditionally, the leaders in terms of revenue are operators specializing in the transportation of oil cargo (first place was taken by Transoil).

If Freight One’s revenue fell by only 5.7% by 2019, which allowed it to rise from fourth to second place, FGK’s decline was deeper – more than 35%, and the company dropped from first to fourth place in the ranking in terms of revenue.

FGK declined to comment. “It is pleasant to note that we have become the market leader, being only number two in terms of fleet size, which speaks of the efficient use of our assets,” says Freight One CEO Sergei Karataev. “Last year we paid a lot of attention to customer relations, including through the development of digital products that improve the quality of interaction with customers, as well as the accuracy and timeliness of supplying the fleet for them. This allowed us to increase the market share in gondola cars and boxcars, as well as to increase the efficiency and profitability of our operating model. ”

Operators of wagons in 2020 got rid of non-core fleet

A Kommersant source in the market notes that it is not entirely correct to compare FGK and Freight One. Cargoes for the needs of related companies, primarily NLMK (about 41% of Freight One’s loading), account for a significant share in the structure of freights transported by Freight One. And due to the large volume of long-term contracts (about 68%) Freight One is less prone to price fluctuations in the market, he explains. While FGK has a small share of long-term contracts in its portfolio. As the general director of FGK Viktor Voronovich said in June in an interview with “Gudk”, the company “every month the plan differs from the previous one in geography by 30 percent.”

One of the important factors that led to the decline in indicators and cargo turnover was the decision of FGK to set aside more than 25 thousand gondola cars in order to prevent a critical reduction in rates and reduce repair costs, says Mikhail Burmistrov, head of Infoline-Analytics.

In the second half of June, the company removed more than 6 thousand gondola cars from the sludge due to an increase in demand due to growing traffic, the expert notes, and in the third quarter the share of the used fleet may continue to increase, although this will not have time to affect the results of the first half of the year. While FGK, according to Mikhail Burmistrov, focuses not on the volume of traffic and cargo turnover, but on ensuring the profitability of the fleet and increasing rates for customers in the context of improving market conditions.

Natalia Skorlygina

Top-20 largest railway operators in the Russian Federation in the first quarter of 2021

Place in general By the number of wagons Revenue for 2020
Q1 2021 1st quarter 2020 for transportation by cargo turnover owned in management
Freight One one 2 one one 2 2 2
FGK 2 one 2 2 one one four
“Neftetransservice” 3 four four five 6 3 3
Globaltrans four 3 five 6 3 6 6
Transoil five five 7 7 7 eight one
GC RTK 6 6 eight nine four five five
“Modum-Trans” 7 eight 6 3 nine four eight
NTK * eight 3 four eleven 7
“Transcontainer” nine nine 13 10 eight nine nine
Atlant 10 12 12 12 four 12 12
Gazpromtrans eleven 10 eleven fourteen fifteen 10 7
“Coal-Trans” ** 12 10 eight 13 eleven
“Novotrans” 13 eleven nine eleven 12 13 fifteen
RailGo fourteen 13 fifteen nineteen 10 fourteen 10
LUKOIL-Trans fifteen fifteen nineteen twenty fifteen
Eurosib SPb sixteen nineteen 21 sixteen sixteen 17 17
NHTK 17 17 24 25 21 sixteen eleven
THC eighteen sixteen 22 21 nineteen eighteen 13
“Apatite” nineteen 23 eighteen eighteen eighteen 21
Mechel-trans twenty twenty sixteen fifteen 26 twenty nineteen

*NTK was established by SUEK and Eurochem at the end of 2020. SUEK ranked seventh in the first quarter of 2020.

**Ugol-Trans left UMMC in 2020 (14th place in the first quarter of 2020).

Source: INFOLine Rail Russia TOP.

Leave a Reply

Your email address will not be published. Required fields are marked *