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Global Reach

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Global Reach

Strategy

Strategy

Our Mission

Our mission is to provide effective support to our clients by offering prompt, reliable and comprehensive containerised cargo delivery 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.
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
 solutions.

Strategic Goals

To increase the Company's market capitalisation through the increase of scale of business and its efficiency.

Target Business Model

A vertically integrated 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.
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
 Group that provides container freight carriage and logistics services throughout Europe and Asia.

Provisions of Current Company Strategy

In view of this top-level strategic objective, in January 2013 the Board of Directors adopted the TransContainer Development Strategy 2020, based on using the advantages of the vertically integrated business model of a major national 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.
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
 A legal entity or individual entrepreneur owning wagons and containers, or possessing them on any other basis, that participates, pursuant to a contract with a carrier, in the carriage process using the aforementioned cars and containers.
A legal entity or individual entrepreneur owning wagons and containers, or possessing them on any other basis, that participates, pursuant to a contract with a carrier, in the carriage process using the aforementioned cars and containers.
operator
, which makes it possible to provide all types of 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.
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
 services in 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 to a wide range of clients throughout Russia and the CIS.

Basic strategy scenarios, up to 2020:

Rail container transportation

             Assumptions                                                                   KPI 2020

Relying on stable growth of 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.
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 in Russia and the CIS averaging 7.5%, against a background of a growing economy, consumer demand and production of high-value-added industrial products. 

The fleet of large-tonnage rail container flatcars should increase to 42,000 units.

Achievement of the KPI by purchasing 80ft flatcars, which should constitute 50 percent of the fleet.

To achieve these goals, the Company plans to devote an average of 20–30 percent of net earnings to capital investments, depending on the current market situation.

Terminal business

             Assumptions                                                                   KPI 2020

Growth of terminal handling in line with 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.
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. Elimination of bottlenecks at the key terminals.

Construction of an efficient network of high load handling capacity terminals is planned by 2016. Stabilisation of market share at 23 percent by the end of 2015, and increasing it to 25 percent by 2020.

Freight forwarding and logistics

             Assumptions                                                                   KPI 2020

Continuing development of expedited An integrated logistics service for delivering freight directly from the warehouse of the consignor (the supplier of the goods) to the warehouse of the consignee (the recipient of the goods). As a rule, it includes not only transport by rail and delivery by road, but also the handling of freight at a terminal and (if necessary) the customs clearance thereof and payment pursuant to INCOTERMS 2000. It appeared in response to freight-owners’ desire for their orders to be handled by a single entity.
An integrated logistics service for delivering freight directly from the warehouse of the consignor (the supplier of the goods) to the warehouse of the consignee (the recipient of the goods). As a rule, it includes not only transport by rail and delivery by road, but also the handling of freight at a terminal and (if necessary) the customs clearance thereof and payment pursuant to INCOTERMS 2000. It appeared in response to freight-owners’ desire for their orders to be handled by a single entity.
door-to-door
, just-in-time multimodal 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.
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
transportation and delivery.

 

Integrated high-value-added 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.
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
services should increase at leading rates, and their share in net earnings should increase to 50 percent by 2020.

To handle this task, plans are to increase the number of block trains, i.e., trains consisting exclusively of cars loaded with rail containers being transported at high speed on an approved A schedule is the basis of a smooth train journey. It unites the operations of all railway
departments on which freight and passenger deliveries depend. Schedules are used in all countries of the world in which freight trains operate and are created with the help of computers, which are used to control schedule fulfilment.
A schedule is the basis of a smooth train journey. It unites the operations of all railway
departments on which freight and passenger deliveries depend. Schedules are used in all countries of the world in which freight trains operate and are created with the help of computers, which are used to control schedule fulfilment.
schedule
(without intermediate sorting en route). The strategy envisions increasing the share of block trains in the Company’s total train 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.
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 to 40 percent..

Sales and client service system

             Assumptions                                                                   KPI 2020

The Company’s sales and client service strategy is based on realising the advantages of vertical integration and a wide geographic presence that enables the business to ensure 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.
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
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.
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
transport accessibility on the 1520 gauge railways for all client categories.

 

Expansion of internet sales and IT products, enabling clients to place orders for transport freight forwarding services, pay for these services and receive information about the movement of a rail freight 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
, among other things, online.

In the sphere of international transportation, the Company’s strategy is aimed at increasing its presence in the primary areas of origin and termination of container traffic passing along the 1520 gauge railways, as well as simplifying customs and process procedures at border crossings where the Company’s terminals are located.

Further Development and Updating of Strategy

A number of critical and acceptable risks were realised in 2015, requiring revisions to the strategy implementation plan. The persistent trend for slowing growth in the Russian economy, which continued through 2013, significantly altered macroeconomic conditions. This led not only to qualitative changes in trends on 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.
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, but also to the need to re-evaluate the main factors affecting these trends.

In place of the prerequisite for organic growth in the railway container transportation market as a direct function of economic growth, and an increase in trade and, accordingly, in 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.
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
volume in the industry, the primary factor driving trends in the 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 is becoming a competitive struggle within the container industry between alternative types of transportation, under conditions in which volume is stagnant or even shrinking.

This has impacted not only the Company’s rail transport growth rates, which deviated significantly from the trajectory on which the strategy was based, but also the market pricing environment. In contrast to other segments of the railway industry, there was not a significant surplus of Cars for carrying cargo or passengers designated for railway transportation.
Cars for carrying cargo or passengers designated for railway transportation.
rolling stock
 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. In 2013–2014, however, the sharp competition both between rail operators and with truck and seaborne haulers led to a reduction of A legal entity or individual entrepreneur owning wagons and containers, or possessing them on any other basis, that participates, pursuant to a contract with a carrier, in the carriage process using the aforementioned cars and containers.
A legal entity or individual entrepreneur owning wagons and containers, or possessing them on any other basis, that participates, pursuant to a contract with a carrier, in the carriage process using the aforementioned cars and containers.
operator
 rates not only in relative terms (below inflation rates), but also in absolute value: in 2013–2014, the trend in the average rate for operator services was roughly a decrease of 8 percent per annum.

Consequently, the Company’s economic indicators experienced a negative trend, which in turn led to an increased risk that its strategic objectives would not be achieved.

The fundamental elements of the Company’s strategy (the mission, strategic objective and business model for a vertically integrated 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
 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
 transportation network operator) remained unchanged. There has, however, been a change of focus in terms of selecting tools to implement the strategy. In place of the predominant use of extensive development tools (an increase in Cars for carrying cargo or passengers designated for railway transportation.
rolling stock
, geographic expansion, etc.), tools that ensure increased competitiveness under conditions of limited volume are now more important.

Increasing transportation volume remains a primary strategic priority, but the main focus is on freight The use of containers for cargo transportation, supply and storage.
The use of containers for cargo transportation, supply and storage.
containerisation
 and switching volume to rail transportation. The primary tools for achieving this strategic objective are increasing rate flexibility, improving client service and expanding the proactive sales system.

In addition to improving the competitiveness of the Company’s transportation services on the domestic market, an important factor in attracting 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
 traffic to the Russian railway network is the expansion of 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.
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
 haulage, which is least dependent on the domestic economy.

The Company assumes that, despite changes in the environment, the TransContainer Development Strategy 2020 will remain viable as a long-term development concept. However, the quantitative strategic benchmarks and the tools for achieving strategic objectives need to be reviewed and updated.

The Company is currently working to update its strategy, viewing efficient resource management and improving competitiveness as its top priorities. The results of this work to be submitted for review and approval by the Company’s Board of Directors in 2016 in a due course.

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