OREANDA-NEWS. In March 2014, freight volume was at 104.4 mln tonnes (down 0.4% or 0.5 million tonnes year-on-year), while freight turnover was at 177.7 bln tonne-kilometres (up 5.6% or 9.4 bln tonne-kilometres).

Coal. In March 2014, 26.0 mln tonnes of coal were transported (down 2.3% year-on-year), while freight turnover amounted to 69.6 bln tonne-kilometres (up 8.3% year-on-year). Amid a broad reduction in delivery volumes, it is worth noting a rise in deliveries on the Severo-Kavkazsky line (up 43% year on year) due to shipments from Gukovo-Export (up 327% year-on-year) and Chapaevka (up 73% year-on-year). Reduced coal shipments were due to several factors. First, domestic lignite coal shipments fell (959,000 tonnes year-on-year) mainly from the Irkutsk Region, Krasnoyarsk and Primorsky Territories. Second, domestic long-flame (D-grade) coal shipments fell (397,000 tonnes) from the Irkutsk Region, Primorsky Territory and Republic of Khakassia, and bituminous coal shipments also fell (558,000 tonnes) on domestic lines, mainly from the Chelyabinsk and Kurgan Regions.

The main drivers of increased coal freight turnover in Q1 were export shipments from Belovo (shipped by Kuzbassrazrezugol, freight turnover doubled year-on-year), and new export lines — shipments by OF Listvyazhnaya via Meret (freight turnover amounted to 1.8 billion tonne-kilometres).

Coal prices in March 2014 grew year-on-year, at USD 78 per tonne — a USD 5 increase on February 2014.

Oil and petroleum products. In March 2014, transport volumes for oil and petroleum products, excluding liquefied petroleum gas, were at 20.4 mln tonnes (up 3.3%), with freight turnover at 30.8 billion tonne-kilometres (up 7.2%). Domestic transport rose 4.7% and export 2% year-on-year. Transport volumes rose thanks to gas condensate deliveries (by 367,000 tonnes) on domestic lines from Limbei and a rise in deliveries of fuels with a flash-point at 61 C (by 590,000 tonnes) on export lines from Tatyanka.

Freight turnover increased due to domestic deliveries by RN Trans (up 1.6 billion tonne-kilometres) from Novosergievsk, Sukhovsky, and Uyar, and Novatek Transservis (up 1.3 billion tonne-kilometres) from Limbei.

Brent crude prices stood at USD 108 per barrel. Oil remains the only primary resource to have a relatively stable price over the past two years.

Liquefied petroleum gas. In March 2014, transport volumes were at 2.5 mln tonnes (up 4.5%), with freight turnover at 5.9 bln tonne-kilometres (up 5.1%).

Gas prices stood at €21.4 MW/h, down 26% against March 2013.

Construction materials. In March 2014, the total volume of construction material freight was at 14.8 mln tonnes (down 6.1%), with freight turnover at 9.6 bln tonne-kilometres (up 2.0%). Delivery volumes decreased on Severo-Kavkazsky and Privolzhsky lines (34% and 17% respectively) and increased on the East-Sibirsky (41%) and Krasknoyarsky (21%) lines.

Ferrous metals. In March 2014, transportation of ferrous metals was at 6.3 mln tonnes (down 0.5%), with freight turnover at 9.5 bln tonne-kilometres (down 7.1%).

Freight turnover declined due to the fall in exports to Taiwan by Evraz ZSMK (down 498 mln tonne-kilometres) largely through the Novokuznetsk Severny station and a fall in exports to Philippines by ChMK (down 313 mln tonne-kilometres) from the station Metallurgicheskaya. Steel prices remained flat at USD 510 per tonne, down by 9.7% year-on-year.

Iron Ore. In March 2014, transportation of iron ore stood at 9.2 mln tonnes (down 4.3%) and freight turnover at 9.4 billion tonne-kilometres (up 2.0%).

The price of iron ore stood at USD 117 per tonne, down 14.9% year-on-year, and down 1.1% on February 2014.

Scrap. In March 2014, transport of scrap stood at 1.2 mln tonnes (up 0.01%), freight turnover was 1.1 billion tonne-kilometres (up 13.5%).

Non-ferrous metals, ores and concentrates. In March 2014, freight volumes for non-ferrous metals amounted to 2.0 mln tonnes (down 0.9%), freight turnover was at 2.9 billion tonne-kilometres (down 5.0%). Copper prices were at USD 6,684 per tonne, 9.8% lower year-on-year.

Grain. In March 2014, grain transportation was at 1.3 mln tonnes (up 160%), freight turnover was at 2.6 billion tonne-kilometres (+35,9%). Grain prices in March 2014 were at USD 230 per tonne, down one third year-on-year.

Fertilizers. In March 2014, fertilizer transportation was at 4.4 million tonnes (up 7.3%), freight turnover was at 7.3 billion tonne-kilometres (up 5.3%). DAP was priced at USD 560 per tonne, 11.2% up year-on-year.

Rolling stock production in the "1520mm region"
In March 2014, CIS plants produced 6,600 units of rolling stock, which is 2.5% less than March 2013. Russian plants produced 5,200 units of rolling stock, 25% more than in March 2013. Ukrainian factories produced 600 units of rolling stock, 3.6 times less than in March 2013.

Prices for gondolas, platforms, hoppers, and oil tank cars continue to fall, ranging between USD 44,000 and USD 50,000 for a unit.

Gondolas. In March 2014, 3,100 gondolas were produced, which is 19% higher than in March 2013. Kazakhstan Railcar Production Plant and Uralvagonzavod reduced gondola production. Gondola prices were between USD 43,000 and USD 45,000.

Oil tank cars. In March 2014, about 800 oil tank cars were produced (half as many as in March 2013). Ukrainian plants suspended oil tank car production. Oil car tank prices ranged between USD 46,000 and USD 50,000 per unit.

Hoppers. In March 2014, 1,000 hoppers were built (a quarter less than in 2013). Of this number, 500 were cement wagons, 300 were mineral hoppers, 100 were grain hoppers, and 100 were ballast hoppers. Grain hopper prices ranged between USD 47,000 and USD 48,000 per unit, which is 40% lower than in March 2013. Mineral hopper prices ranged between USD 48,000 and USD 50,000 per unit, and cement wagon prices were between USD 48,000 and USD 50,000 per unit.

Box cars. In March 2014, 600 box cars were produced (20% more than in March 2013). Box car prices ranged between USD 58,000 and USD 63,000 per unit.

Gas tank cars. In March 2014, 210 gas tank cars were produced (two times less than in March 2013). Gas tank car prices ranged between USD 61,000 and USD 65,000 per unit.

Platforms. In March 2014, 400 container platforms were produced, four times more than in March 2013 and about 200 universal platforms (seven times more than in March 2013). Platform prices ranged between USD 47,000 and USD 51,000 per unit in March 2014. Information on rolling stock production is taken from the Rolling Stock Market data service.

Russian railcar operating leasing market
In March this year, gondola tariffs stood at RUB 450-500 (USD 12.5-USD 14) per day. Tariffs on other types of rolling stock were also lower than in December 2013. Daily tariffs for leasing box cars in March 2014 fell to USD 28-USD 30. Daily tariffs on universal and container platforms fell to USD 24 and USD 22, respectively. Grain hopper tariffs stood at USD 25 per day. Mineral and cement hopper tariffs stood at USD 24. Daily tariffs on oil tank cars fell to USD 24-USD 25. Gas tank car tariffs fell to USD 36.

Russia’s rolling stock fleet
Amid the increase in the average distance covered and lack of growth in volumes transported in March 2014, idle stock fell to 221,000 units, 18% of the total fleet. Brunswick Rail estimates that surplus rolling stock in March 2014 amounted to about 130,000-135,000 units.

The average empty run ratio fell from 78% in February 2014 to 75% in March 2014.