UWC Operational Results For 3Q And 9M 2016
In 3Q 2016 a total of 4.1 thousand railcars were produced, 58% above the output for the same period in 2015. The 9-month production was also up 29% to 10.9 thousand units. The growth was due to a larger demand and enhancing production capacities of the Holding's entities in 2016.
In 3Q seven Holding’s new railcar models and modifications with 25 tf axle load were certified, including mineral hopper with a body space enlarged to 120 m3, 92.7 m3 ammonia tank car, 86.7 m3 LPG tank car, a container flat car and universal flat car with a load length of 40 ft, and 2 modifications of the timber flat car with a load length of 40 ft. As a result, RPC UWC expanded its product range to include a total of 31 railcar models at the quarter end.
From January to September 2016, 85% of railcars made by RPC UWC were sold directly to third parties. In the reporting quarter, the Holding signed contracts for the supply of grain hoppers to United Grain Company, a major Russian grain exporter, and chemical tank cars to Khimprom, a large chemical producer. The Holding continued supplying its railcars under the existing contracts with VM-Trans, a railroad operating company, BUSINESS ALLIANCE, a leasing company and Metafrax, Russia’s largest methanol manufacturer.
As at the end of the period, the size of the fleet owned or controlled by UWC was 28.8 thousand railcars, a 6% growth compared to the start of 2016.
Growing cargo base in 2016 spurred a demand for gondolas. In 3Q, the average size of the fleet operated by Vostok1520, a transport company, grew 45% year-over-year to 16.6 thousand railcars, the increase being twofold over the 9-month period. The operating company's efforts to optimise its logistics and raise the number of block train shipments resulted in a faster growth of loading rates: In 3Q a total of 5.5 million t of freight was carried, 58% above the last year’s figure. Freight turnover over the 9-month period grew by 128% to 16.6 million t. Longer average shipment distances and faster railcar turnaround resulted in a 70% increase of freight turnover that hit 23.9 billion tkm in 3Q, the increase of the same being 153% to 72.8 billion tkm over the 9 months of 2016.
As shown by statistics over the 9-month period, the number of current uncoupling repairs for TVZS’s new-generation gondolas was 10 times below the network average. The Holding has an expanded service centre network operating at railcar repair shops all over the CIS to render timely and high-quality maintenance to its railcars. In 3Q, RPC UW opened a new service centre in Omsk. As the total number of the service centres reached 55, the Holding achieved its network expansion target set for 2016.
