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Global Reach
15 Oct 2015

Operating results for the third quarter and the first nine months of 2015

RNS Number : 2697C

Public Joint Stock Company "TransContainer" ("TransContainer" or the "Company") (LSE: TRCN) announces its preliminary operating results for the third quarter and the first nine months of 2015. The operating results were impacted by challenging conditions in the rail 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. This reflects the continuing decline in Russian industrial production and consumer demand. In the reporting period, TransContainer's market share continued to expand year on year despite the decline in the Russian rail container transportation market volumes. This increase was achieved by pursuing the Company's flexible pricing policy and improving the quality of its services.

Rail container transportation

In the third quarter of 2015, the Russian container transportation market continued to decline at the same rate as in the previous quarter. During the reporting period, the market shrunk by 10.8% year on year compared to an 11.0% decline in the second quarter of 2015. This decrease was mainly due to an 18.9% year on year drop in international transportation, while domestic transportation only decreased by 2.0% year on year.

The Company's rail container transportation volumes in Russia for the third quarter of 2015 decreased by 8.7% to 343 thousand twenty-foot equivalent units ("TEU"), compared to the corresponding period of 2014. The Company outperformed the market, increasing its market share to 46.5% from 45.4% in the third quarter of 2014.

TransContainer's transportation volumes in the third quarter of 2015 were driven by a 6.2% growth in import transportations amid a 21.6% decline in overall Russian container transportation imports. This was mainly a result of management's efforts to improve the business in the Asia-Pacific countries, including China and the Republic of Korea, in order to maintain the right balance in the supply of the Company's own containers between import, domestic and export transportations.

The Company's domestic and export volumes dynamics were in line with the corresponding figures of the Russian container transportation market.

The decline 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
volumes resulted from lower transit transportation volumes between the Far East and Central Asia. This, in turn, was heavily affected by a drop in the transportation of car components.

Transportation of containers by TransContainer's fleet in 3Q 2015 (ISO Loaded + Empty), 000' TEU


3Q 2015

3Q 2014

Change




000' TEU

Percent

Domestic Routes

197.6

205.0

-7.4

-3.6%

Export

68.1

87.8

-19.7

-22.4%

Import

60.4

56.8

+3.5

+6.2%

Transit

17.3

26.6

-9.2

-34.8%

All Routes

343.4

376.2

-32.8

-8.7%

 

The Company's rail container transportation volumes for the first nine months of 2015 amounted to 1,035 thousand TEU, compared to 1,093 thousand TEU in the corresponding period of 2014; this is a reduction of 5.3% year on year, while the total rail container transportation market in Russia fell by 8.9% year on year during the same period. The decrease in the Company's rail container transportation volumes was mainly driven by a 13.2% decline in international transportation, which was partly offset by a 2.2% growth in domestic volumes caused by the strong demand for the Company's container fleet. In the nine months of 2015, TransContainer's market share grew to 47.3% from 45.5% in the first nine months of 2014.

Transportation of containers by TransContainer's fleet in 9M 2015 (ISO Loaded + Empty), 000' TEU


9M 2015

9M 2014

Change




000' TEU

Percent

Domestic Routes

574.2

561.9

+12.2

+2.2%

Export

237.0

281.0

-43.9

-15.6%

Import

158.3

162.2

-3.8

-2.4%

Transit

65.9

88.0

-22.1

-25.1%

All Routes

1,035.5

1,093.1

-57.6

-5.3%

 

The Company's revenue-generating container transportation1 volumes in Russia amounted to 254 thousand TEU in the third quarter of 2015, down 13.0% compared to the third quarter of 2014. For the first nine months of 2015, revenue-generating container transportation volumes decreased by 9.2% year on year to 771 thousand TEU. The difference in the dynamics of revenue-generating volumes and total transportation volumes is primarily a result of transportation using the Company's containers having an increased share of total transportation via the Company's Cars for carrying cargo or passengers designated for railway transportation.
rolling stock
.

Terminal handling

In the third quarter of 2015, throughput of the Company's 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 in Russia decreased by 11.2% to 319 thousand TEU, compared to 359 thousand TEU in the third quarter of 2014.

For the first nine months of 2015, throughput of the Company's rail container terminal network in Russia amounted to 900 thousand TEU, down 8.5% year on year, which was in line with overall market trends.

Asset utilisation

There was a slight increase in both A specialised type of rolling stock designed to carry ISO containers.
flatcar
and container empty runs in Russia in the third quarter and the first nine months, mainly due to the misbalance of container flows in the Russian market that has been present since 2014.

The improvement in container turnover primarily reflects strong customer demand for the Company's containers amid the shortage of sea shipping line's containers in the Russian market. Growth in flatcar turnover resulted primarily from an increase in the average distances travelled by the Company's flatcars.


3Q 2015

3Q 2014

9M 2015

9M 2014

Turnover of containers, days

31.7

35.1

34.4

38.0

Turnover of flatcars, days

15.1

14.2

15.2

14.1






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

 

33.8%

29.2%

30.5%

29.1%

Empty run for flatcars, %

7.6%

7.4%

7.3%

6.8%

 

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 / Jenny Payne

+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 30 June 2015, it operated 26,477 flatcars and 64,064 ISO containers. It owns a network of 46 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 more than 130 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.

 


[1] Transportation of clients' containers and own loaded containers

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

 


This information is provided by RNS

The company news service from the London Stock Exchange

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