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Global Reach
17 Jan 2017

OPERATING RESULTS FOR THE FOURTH QUARTER AND THE FULL YEAR OF 2016

RNS Number : 3065U

Public Joint Stock Company "TransContainer" ("TransContainer" or the "Company") (LSE: TRCN) announces its preliminary operating results for the fourth quarter and the full year of 2016. The operating results reflect strong market recovery in both the fourth quarter and the full year of 2016, driven by an improved containerization, an increase in 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
transportation and improving macroeconomic environment in the second half of the year.

Market overview 

Russia's 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
market continued to demonstrate strong and resilient performance in the fourth quarter of 2016. The rail container transportation volumes in Russia were up 15.8% year-on-year to 893 thousand twenty-foot equivalent units ("TEU") following a 12.4% growth in the third quarter of 2016. Domestic transportation increased by 9.4% year-on-year, while growth in international transportation accelerated by 22.7% year-on-year, demonstrating a double-digit increase in volumes across all market segments.

For the full year of 2016, the Russian rail container market grew by 10.2% year-on-year and amounted to a record high volume of 3,261 thousand TEU.

Russian Rail Container Transportation Market for the full year of 2016 (ISO Loaded + Empty), 000' TEU

FY 2016

FY  2015

Change

000' TEU

Percent

Domestic Routes

1,678

1,498

+180

+12.0%

Export

800

741

+59

+7.9%

Import

525

503

+22

+4.4%

Transit

258

217

+41

+18.8%

All Routes

3,261

2,959

+302

+10.2%

 

Rail container transportation

In the reporting quarter, container volumes transported by the Company's flatcars and containers (including provision of own containers to the third party flatcars) surged by 13.3% year-on-year to 425 thousand TEU. The most growing segments were export and transit transportation, which grew by 22.2% and 25.4%, respectively.

Transportation of containers using TransContainer's assets in 4Q 2016 (ISO Loaded + Empty), 000' TEU

4Q 2016

4Q 2015

Change

000' TEU

Percent

Domestic Routes

230

211

+18

+8.7%

Export

98

80

+18

+22.2%

Import

73

64

+9

+13.8%

Transit

26

20

+6

+25.4%

All Routes

425

375

+50

+13.3%

 

Container volumes transported by the Company's A specialised type of rolling stock designed to carry ISO containers.
flatcar
fleet in the fourth quarter of 2016 increased by 10.9% year-on-year to 393 thousand TEU from 354 thousand TEU a year earlier. The Company's revenue-generating[2] 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 volumes in Russia amounted to 332 thousand TEU in the fourth quarter of 2016, up 18.3% year-on-year.

For the full year of 2016, container volumes transported by the Company's A specialised type of rolling stock designed to carry ISO containers.
flatcar
and container fleet grew by 8.9% year-on-year to 1,543 thousand TEU, mainly as a result of an increase in domestic, export and Import-bound container traffic, as indicated in the respective waybill.
import transportation
. 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
volumes were down 13.6% year-on-year due to a reduced number of auto vehicles produced in Uzbekistan and Kazakhstan in the first half of the reporting year.

Transportation of containers using TransContainer's assets in 2016 (ISO Loaded + Empty). 000' TEU

FY 2016

FY 2015

Change

000' TEU

Percent

Domestic Routes

867

790

77

+9.7%

Export

360

318

43

+13.4%

Import

242

223

19

+8.3%

Transit

74

86

-12

-13.6%

All Routes

1,543

1,417

126

+8.9%

 

Container volumes transported by the Company's flatcar fleet for full year of 2016 increased by 2.6% year-on-year to 1,426 thousand TEU from 1,390 thousand TEU in 2015. The Company's revenue-generating container transportation volumes in Russia amounted to 1,193 thousand TEU for the full year of 2016, up 12.8% year-on-year, reflecting an improved For containers - transporting an empty container on a flatcar, for flatcars – a flatcar run without container(s) or any non-container cargo.
empty run
management.

Terminal handling

In the fourth quarter of 2016, 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 amounted to 333 thousand TEU, up 4.2% year-on-year. For the full year of 2016, the Company's container terminal throughput increased by 0.9% year-on-year to 1,230 thousand TEU compared to 1,219 thousand TEU for the year of 2015. This resulted from a decrease in unloading of containers, as well as a higher cargo volumes processed at shippers' handling facilities, reflecting an increase in domestic and export transportation.

Asset utilisation 

In the fourth quarter and the full year of 2016, flatcar turnover significantly improved on the back of continuing market recovery and growing fleet management efficiency, while turnover of containers remained broadly flat. Container empty runs increased insignificantly, while empty runs for flatcars for the full year of 2016 remained flat. Flatcar empty runs in the fourth quarter of 2016 increased to 9.5% from 7.6% in the corresponding quarter of 2015, due to a local cargo flow disbalance in the Far East region resulted from a strong recovery in import transportation from China.

4Q 2016

4Q 2015

FY 2016

FY 2015

Turnover of containers, days

38.0

38.4

36.4

35.4

Turnover of flatcars, days

12.6

14.0

13.7

14.9

Empty run[3] for containers, %

 

32.1%

31.4%

32.0%

31.2%

For containers - transporting an empty container on a flatcar, for flatcars – a flatcar run without container(s) or any non-container cargo.
Empty run
for flatcars, %

9.5%

7.6%

7.5%

7.4%

 

Enquiries:

 

TransContainer

Andrey Zhemchugov
Director. Capital Markets and Investor Relations

+7 495 637 9178     

+7 495 609 6062

E-mail

IR@trcont.ru

Website

www.trcont.ru

Instinctif Partners

 

Galyna Kulachek / Catherine Hems

+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. 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 of 31 December 2016, it owns a network of 45 rail-side container terminals in Russia, 19 rail-side terminals in Kazakhstan (through its joint venture company KedenTransService) and operates one terminal in Slovakia. Company's sales network comprises about 120 sales offices across Russia as well as presence in 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 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.

 


[2] 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 third-party flatcars

[3] 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 run in kilometres divided by an average total run in kilometres

This information is provided by RNSThe company news service from the London Stock Exchange 

END

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