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16 Apr 2018

OPERATING RESULTS FOR THE FIRST QUARTER OF 2018

FOR IMMEDIATE RELEASE                                                                                      

17 April 2018

OPERATING RESULTS FOR THE FIRST QUARTER OF 2018

Public Joint Stock Company "TransContainer" ("TransContainer" or the "Company") (LSE: TRCN) announces its preliminary operating results for the first quarter of 2018. The Company's positive operating results reflected the continuing growth of the Russian Transportation equipment for shipping cargo via various means of transport. Containers are durable enough for repeated use and can be stacked. Containers are divided into medium-duty (three- and five-tonne), which conform to former Soviet Union standards and are still used for shipments in Russia and the CIS, and ISO (20- and 40-foot) containers, which are used for Russian and international shipments. The universal standard unit TEU (twenty-foot equivalent unit) was introduced to measure transport flow volumes.
container
transportation market, which, in turn, was fueled by a considerable increase in international A form of payment for sea transportation of cargo, or the use of a ship for a certain period of time. Freight payment is determined by the volume of cargo delivered to the destination
or by the volume of cargo loaded onto the ship.
freight
flows, as well as continuing growth in Russian rail The use of containers for cargo transportation, supply and storage.
containerisation
.

 

Market overview 

Russia's container market continued to demonstrate strong performance in the first quarter of 2018. Тhe transportation volumes were up 12.4% year-on-year to 1,005 thousand twenty-foot equivalent units ("TEU"). This was driven by a 20.9% year-on-year growth in international transportation, demonstrating the sustainable increase across all segments. Domestic transportation, however, increased only by 2.8% year-on-year following a deceleration in Russia's manufacturing industries.

 

Russian Rail Container Transportation Market in 1Q 2018 (ISO Loaded + Empty), 000' TEU

 

1Q 2018

1Q 2017

Change

 

 

 

000' TEU

Percent

Domestic Routes

431.0

419.2

+11.8

+2.8%

Export

276.7

236.7

+40.0

+16.9%

Import

196.2

160.7

+35.5

+22.1%

Freight passing from one country to another through a third country. Whether cargo is permitted to transit a certain country and under what terms is subject to trade agreements and treaties between countries. Direct transit is when foreign goods are shipped under tariff protection, without holding at a customs warehouse; indirect transit is when goods arrive at customs warehouses and are then transported abroad.
Transit

100.8

77.2

+23.7

+30.7%

All Routes

1,004.7

893.7

+110.9

+12.4%

  

Rail container transportation

In the reporting quarter, container volumes transported by the Company's transportation assets (including provision of own containers to third party flatcars) grew by 2.7% year-on-year to 435.2 thousand TEU. In the first quarter, the Company focused on the development of new transit routes, including a route via Mongolia. As a result, transit transportation volumes outperformed the market and grew by 44.7% year-on-year. 

Container transportation by TransContainer's flatcars and containers in 1Q 2018 (ISO Loaded + Empty), 000' TEU

  

1Q 2018

1Q 2017

Change

 

 

 

000' TEU

Percent

Domestic Routes

203.7

213.7

-10.0

-4.7%

Export

119.4

112.8

+6.6

+5.9%

Import

78.5

73.9

+4.6

+6.2%

Transit

33.5

23.1

+10.3

+44.7%

All Routes

435.2

423.6

+11.6

+2.7%

Container volumes transported by the Company's A specialised type of rolling stock designed to carry ISO containers.
flatcar
fleet in the first quarter of 2018 increased by 5.1% year-on-year to 413.9 thousand TEU from 394.0 thousand TEU a year earlier, in line with an increased fleet capacity. The Company's revenue-generating1 container transportation volumes in Russia amounted to 347.8 thousand TEU, up 5.3% year-on-year.

In the first quarter of 2018, the Company’s transportation volumes lagged behind the market dynamics, as a result of lower transportation volumes of empty containers, which were up 0.7% year-on-year for TransContainer vs 8.4% year-on-year increase for the market, as well as due to a number of one-off factors.

 

Terminal handling

In the first quarter of 2018, the Company's throughput in the Russian rail A place equipped for the trans-shipment and storage of containers. A container terminal
typically includes one or more container yards. Rail-based container terminals are equipped with spur tracks for loading and unloading containers to/from railroad platforms (cars).
container terminal
network decreased by 2.8% year-on-year to 281.7 thousand TEU, compared to 289.6 thousand TEU for the same period of 2017. This decrease resulted from a closure of two TransContainer's terminals in Moscow, in line with the Moscow government's intention to reduce number of freight terminals located in the central part of the city.

 

Asset utilisation 

In the first quarter of 2018, container For containers - transporting an empty container on a flatcar, for flatcars – a flatcar run without container(s) or any non-container cargo.
empty run
ratio improved from 22.6% to 20.7% due to the continuing optimisation of fleet management and pursuing flexible tariff policy. Flatcars empty run ratio remained essentially flat at 3.6% compared to 3.7% a year earlier.

Flatcar turnover has also remained stable at 12.4 days in the reporting quarter compared to 12.1 days in the corresponding period of 2017. The turnover of containers improved significantly from 41.2 days to 37.2 days on the back of strong customers’ demand and improved container fleet management in the Company’s terminals and its partners’ handling facilities.

 

1Q 2018

1Q 2017

Turnover of containers, days

37.2

41.2

Turnover of flatcars, days

12.4

12.1

 

 

 

Empty run2 for containers, %

20.7%

22.6%

Empty run3 for flatcars, %

3.7%

3.6%

 

Enquiries:

 

TransContainer

 

Andrey Zhemchugov,
First Deputy CFO

+7 495 637 9178     

+7 495 609 6062

 

E-mail

IR@trcont.ru

 

Website

www.trcont.com

 

 Instinctif Partners

 

Galyna Kulachek / Dinara Shikhametova

+44 (0) 20 7457 2020

 

About TransContainer

TransContainer (LSE ticker: TRCN) is the leading intermodal Transportation equipment for shipping cargo via various means of transport. Containers are durable enough for repeated use and can be stacked. Containers are divided into medium-duty (three- and five-tonne), which conform to former Soviet Union standards and are still used for shipments in Russia and the CIS, and ISO (20- and 40-foot) containers, which are used for Russian and international shipments. The universal standard unit TEU (twenty-foot equivalent unit) was introduced to measure transport flow volumes.
container
transportation company in Russia with a market share of approximately 46% for the year of 2017. It is the market leader in Russia by A specialised type of rolling stock designed to carry ISO containers.
flatcar
fleet size, container transportation by rail and rail-side A place equipped for the trans-shipment and storage of containers. A container terminal
typically includes one or more container yards. Rail-based container terminals are equipped with spur tracks for loading and unloading containers to/from railroad platforms (cars).
container terminal
throughput. As at 31 December 2017, it owned and leased 25,251 flatcars and 69,595 ISO containers. TransContainer also owns a network of rail-side container terminals, located at 42 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 104 sales outlets in Russia, along with additional outlets across the CIS, Europe and Asia. TransContainer is listed at Moscow Exchange and LSE. The Company's major shareholder with 50% +2 shares is United Transportation and The process of organising a chain of delivery, and managing that chain in the broadest sense. This chain may encompass both deliveries of raw materials needed for production and management of material resources at an enterprise, delivery to warehouses and distribution centres, sorting, handling, and final distribution at the points of consumption. In the context of transportation services, the main service is that of delivering cargo across a delivery route.
Logistics
Company, established by Russian Railways, Belorussian Railway and Kazakhstan Temir Zholy. 

 

                                                                          

 

[1] Transportation of clients' containers by the Company's Cars for carrying cargo or passengers designated for railway transportation.
rolling stock
and own loaded containers by its own and fourth-party flatcars

[2] The For containers - transporting an empty container on a flatcar, for flatcars – a flatcar run without container(s) or any non-container cargo.
empty run
ratio is calculated as an average empty container*kilometers divided by an average total container*kilometers

[3] The empty run ratio is calculated as an average empty flatcar*kilometers divided by an average total flatcar*kilometers



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