In June 2014 reduction of freight transportation volume at the Russian Railways network continued decreasing to 100.6 mln tons that is by 2.8% lower than in June last year.

The main reduction driver was the transportation of construction materials (-23.4% by June 2013). Construction of facilities for the 2014 Olympic Games has already finished and for the Football World Cup in 2018 it has just started. As a result in June 2014 freight transportation in gondolas decreased by 5.6%. The situation has not improved even with the growth of coal and ferrous metals transportation volume: +2.5% and +5.6% by June last year.

It is important to note the growth of mineral fertilizers and timber transportation volume (+5.4% and +10.7% in June 2014 respectively) which continued from the beginning of the year. Transportation volume of mineral fertilizers has reached its maximum for this month over the period of last ten years. According to our estimates utilization of production capacities is now close to 100% which may limit the further growth.

Volume of timber transportation has started to restore gradually after the decrease in 2008-2013 but it is still far to the record high of 2006-2007.

Leysana Gizatullina, Marketing Analyst