OREANDA-NEWS.  In July 2013 freight volumes were at 106.7 million tonnes (down 2.2% or 2.4 mln tonnes less compared to July 2012) and freight turnover was at 180.7 billion tonne-kilometres (down 2.4% or 4.4 bln tonne-kilometers less). The rate of the fall in freight volumes decreased.

Coal. In July 2013 24.6 million tonnes of coal were transported (up 2.1% on July 2012), freight turnover amounted to 62.6 billion tonne-kilometres (up 0.5% on July 2012). There was an increase in the export of coal to China from Neryungri, Chelutai and Linyevo, as well as a more than two-fold increase in the volume of export freight from Meret to Korea. There was a slight decline in domestic freight. Coal prices grew by 3.6% to USD 76.7 per tonne on June 2013, but this was a fall of 20% on prices in July 2012.

Oil. In July 2013 the volume of oil freight was at 21.2 million tonnes (down 1.4%) and freight turnover was at 31.8 billion tonne-kilometres (down 3.8%). Domestic freight volumes remained stable. The decline in the export of oil from Skovorodino to China should be noted. The price of Brent oil increased by 2.9% on July 2012, to USD 108.

Liquefied petroleum gas. In the first half of 2013 freight volumes reached 3.0 million tonnes (up 15.4%), with a freight turnover of 7.2 billion tonne-kilometres (up 26.6%). Domestic LPG freight grew by 50%, and the significant increase affected suppliers such as the Kstovo gas plant and gas plants in Khanty-Mansi Autonomous Area. Export to Europe increased somewhat. Gas prices over the previous four months remained stable at € 26-27/ MWh, but this was an increase of 9.5% on July 2012.

Construction materials. In July 2013 the total volume of construction freight reached 17.3 million tonnes (down 4.4%), with freight turnover at 10.5 billion tonne-kilometres (down 7.7%). This decrease was due to the end of construction work in Kazan and Sochi for the Universiade and Olympic Games.

Ferrous metals. In July 2013 the volume of ferrous metal freight was 5.8 million tonnes (down 3.3% on July 2012), with a freight turnover of 9.2 billion tonne-kilometres (down 15.2% on July 2012). This fall was linked to the decrease in exports from Magnitogorsk Iron and Steel Works (by almost 1 billion tonne-kilometres). Steel prices grew in comparison with June 2013 to USD 518 / tonne, but this was almost USD 40 lower than in July 2012.

Iron ore. In the first half of 2013 the volume of iron ore freight reached 9.4 million tonnes (down 1.1% on July 2012), with a freight turnover of 10.1 billion tonne-kilometres (down 6.5% on July 2012).This decrease was driven by the fall in volumes from Stoilensky, Kostomusksha and Korshunikha-Angarskaya. Ore prices grew over the previous two months and reached the level of USD 130 / tonne, 11% higher than in July 2012.

Scrap metal. The volume of scrap ferrous metal freight in the first half of 2013 was at 1.6 million tonnes (down 5.9% on the first half of 2012), with a freight turnover of 1.3 billion tonne-kilometres (down 12.6% on July 2012).

Coke. In July 2013 the volume of coke freight was at 1.0 million tonnes (down 9.1% on July 2012), with a freight turnover of 2.3 billion tonne-kilometres (down 14.7% on July 2012).

Grain. In July 2013 the volume of grain freight was at 0.9 million tonnes (down 30.8% on July 2012), with a freight turnover of 1.7 billion tonne-kilometres (down 26.4% on July 2012). An increase in volumes was put on hold by the late harvest in 2013.

Fertilizers. In July 2013 the volume of fertilizer freight was at 3.8 million tonnes (no change on July 2012), with a freight turnover of 6.1 billion tonne-kilometres (down 5.3% on July 2012). This fall was due to the decline in exports of nitrogen phosphate and potash fertilizer to China.

Production of rolling stock for the ‘1520 space’
 In July 2013, 7,500 units of rolling stock were manufactured (down 32.8%, or 3,700 railcars fewer than in July 2012). Railcar production levelled off at 7,000 to 7,500 units per month. Since such a level of production only uses 60% of production capacity, the prices for all types of railcars continued to fall in July.

Gondolas. In July 2013, 2,800 gondolas were manufactured (down 65%, or 5,100 units fewer than in July 2012). It should be noted that since July 2013 the manufacture of new generation gondolas has increased (models 12-196-01 and 12-9671) to 400 units (in the previous periods no more than 100-200 units per month were manufactured). In July 2013 gondola prices were within the range of USD 48,500 to USD 55,000.

Oil tank cars. In July 2013, 985 oil tank cars were manufactured (down 31%, or 443 units fewer than in July 2012). Prices for these railcars fell to within the range of USD 49,500 to USD 62,000.

Hoppers. In July 2013, 1,300 hoppers were manufactured (2.5x growth or 750 units more than in July 2012). This increase was due to the growth in sales of cement wagons and grain hoppers. Prices for cement wagons were within the range of USD 48,000 to USD 60,000 and grain hoppers were between USD 53,500 and USD 64,500, with mineral hoppers between USD 49,300 and USD 63,000.

Box cars. In July 2013, 1,100 box wagons were built (twice as many, or 546 more than in July 2012). Box wagon prices were within the range of USD 60,500 to USD 68,500.

Gas tank cars. 322 gas tank cars were built (down 6%, or 21 tanks fewer than in July 2012). It should be noted that Russian gas tank car manufacturers are gradually taking over from their Ukrainian counterparts. Prices for these railcars fell and were within the range of USD 75,000 to USD 84,000 in July 2013.

Platforms. In July 2013, 257 container platforms were built (the same number as in 2012) and 413 universal platforms were manufactured (up 124% against the first half of 2012). Prices for the various types of platforms were within the range of USD 48,000 to USD 62,000.

Russian railcar operating leasing market
 In July of this year tariffs on all types of special rolling stock continued to fall against June 2013, with tariffs on gondolas remaining stable.

The daily tariff for box cars fell to USD 33. The daily tariff for universal and container platforms fell to USD 27.50 and USD 30 correspondingly. Tariffs fell to USD 27 for mineral hoppers and to USD 31-USD 37 for oil tank cars. Tariffs for new gas tank cars fell to USD 47. The tariff for gondolas remained at its previous level, around USD 20 to USD 21 per day despite the growth in revenue from operating gondolas.

Russia’s rolling stock fleet
 The average level of idle rolling stock in July 2013 fell to a level of around 175,000 railcars, with surplus rolling stock falling from 100,000 railcars at the start of the year to 50,000 cars in July 2013. The empty run ratio continued to fall to 74% on average.