OREANDA-NEWS. In November 2013, freight transport volumes were at 103.5 mln, down on November 2012 by 2.7% or 2.9 mln tonnes, while freight turnover was at 170.0 bln tonne-kilometres (up 0.3% or 0.6 bln tonne-kilometres year-on-year).

Coal. In November 2013, 27.7 mln tonnes of coal were transported, approximately the same levels as in November 2012, while freight turnover reached 68.7 bln tonne-kilometres (up 4.0% against November 2012). Domestic and export coal transport was stable against November 2012, while total freight turnover grew by 3.2% due to an increase of 8.8% in domestic turnover and a rise of 3.2% in export freight turnover. Meanwhile, the price of coal fell by 1.7% to USD 84.0 per tonne against October 2013.

Oil. In November 2013, transportation of oil and products was at 21.3 mln tonnes (down 5.3%), while freight turnover was at 34.0 bln tonne-kilometres (down 4.1%). Export transport fell by 12.5%, while domestic transportation increased by 3.2%. The price of Brent oil rose by 0.8% to 109.7 per barrel against October 2013.

Liquefied petroleum gas. In November 2013, transport volumes were at 3.1 mln tonnes (up 3.0%), with freight turnover at 7.2 bln tonne-kilometres (up 11.7%). In Europe, gas prices rose by 7.2% to €28.2 MW/h against October 2013.

Construction materials. In November 2013, the total volume of construction material freight was at 14.9 mln tonnes (down 5.1%), with freight turnover at 8.1 bln tonne-kilometres (down 2.6%).

Ferrous metals. In November 2013, transportation of ferrous metals was at 5.6 mln tonnes (down 3.4%), with freight turnover at 9.1 bln tonne-kilometres (up 2.0%). This decline was due to the reduction in shipments to the domestic market from Severstal, NLMK and ChMK. Meanwhile, the growth in freight turnover was due to higher exports of output produced by ZSMK, HTMK and NLMK.

Steel prices remained flat at USD 525 per tonne.

Iron ore. In November 2013, transportation of iron ore was at 9.0 mln tonnes (down 4.3%), with freight turnover at 9.0 bln tonne-kilometres (down 13.7%). Transport volumes fell due to more than twofold reduction in iron ore exports to China. The price of iron ore rose 3.4% to USD 136.4 per tonne against October 2013, 11% higher than in November 2012.

Grain. In November 2013, transportation of grain was at 1.8 mln tonnes, coinciding with the indicators for November 2012, with freight turnover at 3.4 bln tonne-kilometres (up 20.1%). Freight turnover grew due to a twofold increase in grain exports. Grain crops in 2013 were higher than in 2012 by 28%. The price of wheat fell to USD 229 per tonne.

Fertilizers. In November 2013, transportation of fertilizers was at 4.0 mln tonnes (up 8.1%), with freight turnover at 6.7 bln tonne-kilometres (up 14.0%). This growth is due both to an increase of 3.5% in the volume of domestic freight turnover and to the growth of 15% in export routes. The price of DAP fell by USD 35 to USD 455 per tonne compared to October 2013.

Rolling stock production in "1520 space"
During November, the large Ukrainian manufactures of all types of rolling stock had their certification suspended. In November, 7,300 units of rolling stock were produced (down 20.9%, or 2,100 railcars fewer than in November 2012). In November, production grew compared to October 2013 due to a higher number of manufactured gondolas and oil tank cars, with fewer units of other types of rolling stock produced. Railcars produced by Russian plants came up to 80% of the total output in the CIS (in Q1 this number was within 65%). The Ukrainian railcar building market fell almost fivefold in monetary terms; the price of railcars dropped almost by half, while output volumes fell three times as much.

Gondolas. In November 2013, 3,400 gondolas were produced (down 27%, or 1,300 units fewer that in November 2012). At the same time November 2013 marked an increase in production of gondolas (+600 gondolas) compared to October 2013. The key manufacturers of gondolas increased production by 100 units each. The price of gondolas in November was around USD 50,000.

Oil tank cars. In November, 847 oil tank cars were produced (down 49%, or 770 fewer units that in November 2012). However, in the past two months there has been a growing trend toward higher production of oil tank cars. Azovmash and Altaivagon increased production by 50 units each from October to November. Oil tank car prices were in the range of USD 55,000 to USD 57,000.

Gas tank cars. 805 gas tank cars were built (up 62%, or 350 units more than in November 2012.). The prices of this type of rolling stock were in the range of USD 68,000 to USD 78,000. However, manufacturing fell compared to the previous month. Against the background of this reduction VKM reinforced its leadership in the production of gas tank cars, taking up over 50% of CIS production in the segment. The reason for lowered production may have been a reduction in Gazprom’s investment program and a downward change in the industrial production index and energy generation.

Hoppers. In November 2013, 856 hoppers were produced (down 35%, or 461 fewer units than in November 2012). 323 grain hoppers, 373 mineral hoppers and 160 cement wagons were produced. The Tikhvin Freight Car Building Plant (TVSZ) increased production of mineral hoppers on innovative bogies from 50 units in September — October 2013 to 220 units in November. Prices for cement wagons were in the range of USD 47,700 to USD 56,000, for grain hoppers between USD 52,600 and USD 61,000, for mineral hoppers between USD 49,900 and- USD 54,000.

Box cars. In November, 347 box cars were produced (down to 59% or 395 units fewer that in November 2013). ). The prices for box cars increased and ranged between USD 62,000 and USD 65,000.

Platforms. In November, 510 container platforms were produced (up 44% against November 2012) and 305 universal platforms were produced (three times as many units as in November 2012). Prices for all types of platforms ranged between USD 48,700 and USD 58,000.

Russian railcar operating leasing market
In November of this year tariffs on all types of rolling stock stabilized against the indicators for October 2013. Only tariffs for gondolas, box cars and container platforms slightly recovered against the indicators of October 2013.

Tariffs for gondolas remained at the level of RUB 580- 630 (USD 18-USD 19) per day. Daily tariffs for box cars rose to USD 34. Daily tariffs for universal and container platforms remained at USD 27 and USD 30 respectively. Daily tariffs for leasing mineral hoppers were USD 26 during the past 6 month. Tariffs for oil tank cars fell to USD 26-USD 30. Tariffs for new gas tank cars were around USD 42. Tariffs for food-carrying tankers were USD 34-USD 35.

Russia’s rolling stock fleet
The average level of idle rolling stock in November 2013 increased by 20,000 units and was around 190,000 units. By our calculations, surplus rolling stock remained at 65,000-70,000 units.. The average empty run ratio fell to 78.3%. In November 2013, TVSZ started own production of heavy railcar castings, with the total production of casting down to 11,000 rail car sets, which is 1,000 railcar sets fewer than a month earlier. It should be noted that 15,500 railcar sets were produced per month on average in 2012.