OREANDA-NEWS. In August 2013, freight transport volumes were at 107.5 mln tonnes (down 1.4%, or 1.5 mln tonnes, year-on-year), while freight turnover was at 183.6 bln tonne-kilometres (down 1.8%, or 3.4 bln tonne-kilometres, year-on-year). This marks a slower pace of decline in freight transport than in previous periods.

Coal. In August 2013, 25.2 mln tonnes of coal were transported (down 1.2% on August 2012), while freight turnover reached 67.1 bln tonne-kilometres (up 6.7% on August 2012). Domestic coal transport fell by 2 mln tonnes against August 2012. The increase in freight turnover was due to increasing export flows to Japan, China, Korea and Europe. Coal prices fell to USD 76.3 per tonne, down 17% year-on-year.

Oil. In August 2013, transport volumes of oil and petroleum products were 20.7 mln tn (down 2.8% year-on-year), while freight turnover was at 30.5 bln tonne-kilometres (down 4.7% year-on-year). Domestic oil and oil products transportation increased. Export turnover fell both year-on-year, and month-on-month. Furthermore, fuel oil exports declined. The price of Brent oil was on the same level as August 2012 — USD 114 per barrel.

Liquefied petroleum gas. In August 2013, liquefied petroleum gas transport volumes continued to increase and reached 3.0 mln tonnes (up 14.1% year-on-year), while turnover was at 6.9 bln tonne-kilometres (up 18.0% year-on-year). Gas prices fell slightly vs. July 2013 to €25.8 MW/h, however, this was an increase of 2.5% year-on-year.

Construction materials. Transportation of construction materials in August 2013 was at 16.7 mln tonnes (down 3.5% year-on-year), with turnover at 10.3 bln tonne-kilometres (down 8.5% year-on-year).

Ferrous metals. In August 2013, transport volumes of ferrous metals were at 5.8 mln tonnes (down 3.3% year-on-year), with turnover at 8.8 bln tonne-kilometres (down 15.1% year-on-year). The decline in volumes was due to a decrease in the production of metal products in the Urals and the Volga regions, as well as a decrease in exports from Magnitogorsk Iron and Steel Works to Vietnam and Turkey. Steel prices rose against July to USD 540 per tonne but were USD 20 lower than in August 2012.

Iron ore. In August 2013, transportation of iron ore was at 9.5 mln tonnes (up 2.2% year-on-year), with turnover at 8.4 bln tonne-kilometres (down 14.5% year-on-year). The fall in turnover was due to a halt in iron ore freight from Olenogorskiy GOK to Novokuznetsk, as well as a change to the freight routes for Stolenskiy GOK to China from railways to Black Sea ports. Iron ore prices rose in this quarter and reached USD 140 per tonne, 55% higher than in August 2012.

Scrap metal. Scrap metal transport volumes In August 2013 were 1.5 mln tonnes (down 16.7% year-on-year), with turnover at 1.3 bln tonne-kilometres (down 15.7% year-on-year).

Coke. In August 2013, transportation of coke freight at 0.8 mln tonnes (down 27.3% year-on-year), with turnover at 2.1 bln tonne-kilometres (down 25.5% year-on-year).

Grain. In August 2013, transportation of grain was at 1.5 mln tonnes (down 11.8% year-on-year), with turnover at 2.0 bln tonne-kilometres (down 10.0% year-on-year). The price of wheat was USD 65 lower than in August 2012, at USD 235 per tonne.

Fertilizers. In August 2013, the transportation of fertilizers was at 4.0 mln tonnes (up 5.3% year-on-year), while turnover was at 6.2 bln tonne-kilometres (down 0.4% year-on-year). The price of DAP continued to fall, reaching USD 440 per tonne, USD 120 lower than in August 2012.

Rolling stock production

In August 2013, 7,300 units of rolling stock were manufactured (a decrease of 34%, or 3,800 railcars, compared to August 2012). In August 2013, there was an excess supply of tank cars in the CIS with the lowest production rate in five years.

Gondolas. In August 2013, 3,400 gondolas were manufactured (down 55%, or 4,100 fewer gondolas, than in August 2012). Compared to July 2013, 600 more gondolas were produced (the Popasnyanskiy railcar factory resumed production after being shuttered for a year, and Azovmash and Promtraktor-Vagon increased production volumes). The production of new-generation gondolas (models 12-196-01 and 12-9761) continued to increase and reached 550 units in August. Gondola prices in August were in the range of USD 49,000 to USD 55,000.

Oil tank cars. In August, 591 oil tank cars were produced (down 60%, or 869 fewer than in August 2012). Azovmash decreased production of oil tank cars from 400–600 per month to 80, while UralVagonZavod decreased production from 600 oils tank cars per month to 450. The remaining oil tank cars were produced by Altayvagon. The share of Russian-made oil tank cars was 85%. Prices fell to within the range of USD 48,800 to USD 61,000.

Hoppers. In August 2013, 875 hoppers were produced (54%, or 306 units, more than in August 2012). However, the production of grain hoppers in August was three times lower than in July 2013, at 240 units. The production of cement wagons remained stable at 330 units. 262 mineral hoppers were produced, twice the levels of August 2012 and July 2013. Prices for cement wagons ranged between USD 47,500 and USD 56,000; for grain hoppers it was between USD 55,000 and USD 66,000, while for mineral hoppers it was between USD 48,800 and USD 54,000.

Box cars. In August 2013, 900 box cars were produced (up 73%, or 378 units from August 2012). The price for box cars ranged between USD 58,000 and USD 65,000.

Gas tank cars. 632 gas tank cars were produced (up 34%, or 162 units more than in August 2012). Prices decreased to within the range of USD 73,300 and USD 83,000 in August 2013.

Platforms. In August 2013, 414 container platforms were produced (up 52%, or 141 units more than in August 2012). 374 universal platforms were produced (twice as many as in August 2012). Prices for different types of platforms ranged between USD 46,000 and USD 62,000.

Russian railcar operating leasing market
In August of this year, tariffs for all types of specialized rolling stock continued to fall from July 2013, while tariffs for gondolas remained stable.

Daily tariffs for box cars were USD 33. Daily tariffs for universal and container platforms fell to USD 26 and USD 27 respectively. Tariffs for mineral hoppers fell to USD 26 and for tank cars they fell to USD 30—USD 36. Tariffs for new gas tank cars decreased to USD 46, while tariffs for gondolas remained stable at around USD 20—USD 21 per day.

Russia’s rolling stock fleet
The average level of idle rolling stock in August 2013 fell slightly to around 171,000 railcars. By our calculations, surplus rolling stock remained stable at 50,000–55,000 units. The average empty run ratio increased to 78%.