OREANDA-NEWS.  In January 2014, freight volume was at 96.3 mln tonnes (up 1.2% or 1.1 mln tonnes year-on-year), while freight turnover was at 166.7 bln tonne-kilometres (up 7.9% or 12.2 bln tonne-kilometres).

Coal. In January 2014, 26.9 mln tonnes of coal were transported (up 0.4% year-on-year), while freight turnover reached 70 bln tonne-kilometres (up 16.3% year-on-year). Growth in transport was mainly the result of increased freight on the West-Siberian line and the Krasnoyarsk line, both for domestic purposes and for export to the United Kingdom, Japan and China.

Coal prices were at USD 80 per tonne in January, a decrease of 7% year-on-year.

Oil and petroleum products. In January 2014, the freight transport volume of oil and petroleum products, not including liquefied petroleum gas, amounted to 20.1 mln tonnes (up 1.8%), with freight turnover at 29.9 bln tonne-kilometres (up 5.4%). Transport of crude oil was down 5.5%, while fuel oil was up 2.4%, gasoline remained steady, diesel fuel increased 1.2%, and other petroleum products increased 2.5%.

Brent crude oil prices were at USD 106 a barrel, down 8% year-on-year.

Liquefied petroleum gas. In January 2014, the freight transport volume amounted to 2.5 mln tonnes (up 5.4%), with freight turnover at 7.2 bln tonne-kilometres (up 5.4%).

The price of gas was €25 per MWh, a decrease of 3% year-on-year.

Construction materials. The total volume of construction material freight in January 2014 amounted to 10.3 mln tonnes (down 8.8%), with freight turnover at 6.9 bln tonne-kilometres (up 0.8%). There was a decrease in the transport of construction materials on all lines, with the exception of steel deliveries to major cities in the Moskovskaya, Oktyabrskaya and Sverdlovskaya railway divisions.

Ferrous metals. In January 2014, the freight transport volume of ferrous metals amounted to 5.7 mln tonnes (down 3.3%), with freight turnover at 9.3 bln tonne-kilometres (down 0.5%). Domestic and export freight volume fell 3.5% and 2.8%, respectively. In January 2014, decreased exports from the Novorossiisky, Kaliningradsky and Tuapsinsky ports were partially offset by an increase in exports from the Nakhodka and St Petersburg ports.

Steel prices were at USD 543 a tonne, a decrease of 7% year-on-year; however, there was an increase of 1% from December 2013.

Iron ore. In January 2014, the freight transport volume of iron ore amounted to 8.9 mln tonnes (up 3.8%), with freight turnover at 88 bln tonne-kilometres (down 6.5%). The largest mining companies increased their extraction of ore. Domestic and export shipments increased 2.3% and 4.5%, respectively.

Iron ore prices were at USD 123 a tonne, which was 20% lower year-on-year and represented a decrease of 9% from December 2013.

Scrap. In January 2014, the freight transport volume of scrap remained steady at 2012 levels, amounting to 0.7 mln tonnes, with freight turnover at 0.6 bln tonne-kilometres (down 0.3%).

Non-ferrous metals, ores and concentrates. In January 2014, the freight transport volume of non-ferrous metals amounted to 2 mln tonnes (down 7.1%), with freight turnover at 2.7 bln tonne-kilometres (down 10.8%).

Copper prices were at USD 7,300 a tonne, down 12% year-on-year.

Grain. In January 2014, the freight transport volume of grain crops amounted to 1 mln tonnes (up 42.9%), with freight turnover at 2.1 bln tonne-kilometres (up 8.2%), though freight turnover decreased 50% from December 2013. Grain prices have remained stable over the past six months at USD 230 a tonne; however, this represents a one-third decrease since January 2013.

Fertilizers. In January 2014, 4.4 mln tonnes (up 12.8%) of fertilizers were transported, with freight turnover at 7.2 bln tonne-kilometres (up 2.5%). The price of diammonium phosphate is at USD 455 a tonne, which is 6% lower than a year ago.

Industrial production in Ukraine in 2013
The index of industrial production in Ukraine for the period January-December 2013 amounted to 95.3% compared to the same period in 2012.

Coal. In 2013, 63.3 mln tonnes of coal were mined, which was 2.1% lower than in 2012.

Coal prices in 2013 ranged from USD 74 to USD 86 a tonne, which was about USD 10 lower than in 2012. Coking coal prices dropped by nearly 50% from USD 270 a tonne in January 2012 to USD 140 in December 2013.

Coke. Metallurgical coke production in 2013 amounted to 17.6 mln tonnes, which was 7.2% lower than in 2012.

Iron ore. Ore mining in 2013 amounted to 69.9 mln tonnes, which was 14.8% lower than in 2012.

Ore prices in 2013 ranged from USD 100 to USD 150 a tonne, while stabilizing in the second half of the year at a level of USD 130, which was USD 10-USD 20 higher than prices in 2012.

Oil and petroleum products. Oil production in 2013 amounted to 2.2 mln tonnes, which was 5.4% lower than in 2012. Oil prices in 2013 were in the range of USD 100-USD 114 a barrel, which was similar to the price range in 2012.

Diesel fuel. Production of diesel fuel was driven by the growth of retail prices for the product in 2013, amounting to 1 mln tonnes, a decrease of 29.3% compared to 2012.

Fuel oil. The volume of fuel oil produced in 2013 amounted to 0.6 mln tonnes (down 15.3%).

Gasoline. One million tonnes of gasoline were produced in 2013, a decrease of 40.6% compared to 2012.

Ferrous metals. The production of ferrous metals amounted to 33.2 mln tonnes in 2013, 0.4% higher than in 2012. Moreover, Russia's metallurgy market, which is twice the size of Ukraine's, decreased production in 2013 by 2.2% compared to 2012.

Steel prices, which were in the range of USD 510-USD 570 a tonne (down USD 20-USD 40 compared to 2012) during the first half of 2013, stabilized in the second half of the year between USD 525 and USD 540 (at 2012 levels).

Pipes. In 2013, 1.8 mln tonnes of pipes were produced, which was 17% lower than in 2012.

Cast iron. Cast iron production in 2013 amounted to 29.1 mln tonnes, which was 2% higher than in 2012.

Cement. Cement and lime production in 2013 totalled 13.6 mln tonnes, which was 3.1% lower than in 2012.

Fertilizers and chemicals. Fertilizer production in 2013 amounted to 6.2 mln tonnes, which was 22.7% lower than in 2012.

Grain. In 2013, 63 mln tonnes of grain were harvested, which exceeded 2012 levels by 16.8 mln tonnes. In the first half of 2013, the price of a tonne of wheat was at USD 340, dropping to USD 230 following the harvest in the second half of the year.

Industrial production in Kazakhstan in 2013
The index of industrial production in Kazakhstan for the period January-December 2013 amounted to 102.3% compared to the same period in 2012.

Coal. In 2013, 119.9 mln tonnes of coal were mined, which was 0.1% lower than in 2012.

Coke. Metallurgical coke production in 2013 amounted to 2.4 mln tonnes, which was 7.4% lower than in 2012.

Iron ore. Ore mining in 2013 amounted to 51.8 mln tonnes, which was 1.3% lower than in 2012.

Oil. Oil production in 2013 amounted to 69.4 mln tonnes, which was 4.5% higher than in 2012. Oil prices in 2013 were in the range of USD 100-USD 114 a barrel, which was similar to the price range in 2012.

Gas condensate. Gas condensate production in 2013 amounted to 12.3 mln tonnes, which was 3.5% lower than in 2012.

Diesel fuel. Diesel fuel production amounted to 5.1 mln tonnes in 2013, an increase of 9.1% compared to 2012.

Fuel oil. The volume of fuel oil produced in 2013 amounted to 3.7 mln tonnes, which was 5.6% lower than in 2012.

Gasoline. Gasoline production in 2013 amounted to 2.7 mln tonnes, which was 4.7% lower than in 2012.

Ferrous metals. The production of ferrous metals in 2013 totalled 3.5 mln tonnes, which was 8% lower than in 2012.

Cast iron. Cast iron production in 2013 amounted to 2.6 mln tonnes, which was 3.1% lower than in 2012.

Cement. The production of cement, limestone and gypsum in 2013 amounted to 26.1 mln tonnes, which was 20.6% higher than in 2012.

Concrete. Concrete production in 2013 totalled 14.2 mln tonnes, which was 24% higher than in 2012.

Industrial production in Belarus in 2013
The index of industrial production in Belarus in 2013 amounted to 95.2% compared to 2012. Energy production amounted to 31.2 bln kWh, which was 1.3% higher than in 2012.

Ferrous metals. Steel production in 2013 amounted to 2.4 mln tonnes, which was 16.5% lower than in 2012. The production of steel pipes amounted to 0.2 mln tonnes, which was 1.8% lower than in 2012.

Machine-building. In 2013, all machine-building and machine-tool-making plants reduced production. Some 18,700 lorries were produced, which was 28.9% lower than in 2012. Some 62,600 tractors were produced, which was 11.8% lower than in 2012. Some 2,200 passenger vehicles were produced, which was 9.5% lower than in 2012. The production of machine tools decreased by 21.4%, with 4,400 units being produced.

Oil and petroleum products. Oil production in 2013 amounted to 1.7 mln tonnes, which was 0.9% lower than in 2012. The production of diesel fuel in 2013 amounted to 7.7 mln tonnes, which was 33.9% lower than in 2012. Gasoline production in 2013 amounted to 3.7 mln tonnes, which was 1.2% lower than in 2012. Fuel oil production in 2013 amounted to 6.4 mln tonnes, which was 8.8% lower than in 2012.

Cement. Cement production in 2013 totalled 5.1 mln tonnes, which was 3.1% higher than in 2012.

Mineral fertilizers. Fertilizer production in 2013 totalled 5.3 mln tonnes, which was 9.9% lower than in 2012. A major share of fertilizer production consisted of potash, which accounted for 4.2 mln tonnes (down 12.2%).

Food industry. The main categories of food products saw a decrease in production of 10%-20%, which is evidence of a decrease in demand for food imports from Belarus. Exceptions included dairy products (up 2.9%) and the production of vegetable oils (up 5.1%).

Grain. In 2013, 7.6 mln tonnes of grain were harvested in Belarus, which was 17.6% lower than in 2012.

Rolling stock production in CIS
In January 2014, factories in the CIS produced 5,500 railway cars, which was a decrease of 25% compared to both January 2013 and December 2013. Along with the reduction in production, the prices of the main types of rolling stock have continued to decline. Ukrainian manufacturers built 800 railway cars, which was one-third the number produced in January 2013. The prices of gondola cars, platforms, hoppers and oil and petrol tank cars are practically the same, in the range of USD 45,000-USD 53,000 per unit.

Gondola cars. In January 2014, more than 3,000 gondola cars were built, which was 10% lower than production in January 2013. Kazakhstan VSZ and UVZ reduced their production of gondola cars. The prices of gondola cars were in the range of USD 45,000-USD 50,000, which was USD 12,000 lower than in January 2013.

Oil and petrol tank cars. In January 2014, about 500 oil and petrol tank cars were produced (half as many as in January 2013). Ukrainian factories ceased production of tanks for petroleum products. The prices of oil and petrol tank cars were in the range of USD 50,000-USD 53,000 per unit, which was 25% lower than in January 2013.

Hoppers. In January 2014, more than 800 hoppers were built (half as many as in 2013), of which 300 units were grain hoppers, 200 were mineral hoppers, 200 were ballast hoppers and 100 were cement hoppers. Prices for grain hoppers were in the range of USD USD 50,000-USD 51,000 per unit, which was 25% lower than in January 2012. Prices for mineral hoppers were in the range of USD 49,000-USD 50,000 per unit, and prices for cement hoppers were in the range of USD 48,000-USD 50,000 per unit.

Boxcars. In January 2014, 140 boxcars were built (one quarter as many as in January 2013). Prices for boxcars were in the range of USD 61,000-USD 63,000 per unit. The Novozybkovsky VZ built the first batch of boxcars, consisting of 20 units, while the rest were built at Altaivagon.

Gas tank cars. In January 2014, 400 units of gas tank cars were built (one-third less than in January 2013). Gas tank cars were manufactured at VKM and Azovmash. In January, prices for this type of rolling stock were in the range of USD 65,000-USD 70,000 per unit.

Platforms. In January 2014, 200 container platforms were built, which was almost three times as many as were built in January 2013, and approximately 300 universal platforms were built (an increase of two-thirds over January 2013). In January 2014, prices for various types of platforms were in the range of USD 49,000-USD 53,000 per unit.

Railcar production data was provided by information service “Rolling stock market”.

Russian railcar operating leasing market
In January of this year, rates for gondola cars, in roubles, were 500-550 a day, which, in dollar terms, is USD 14-USD 16 a day. The rates for other types of rolling stock decreased compared to December 2013.

In January 2014, the daily rates for boxcars dropped to the level of USD 30. The daily rates for universal and container platforms decreased to the level of USD 25 and USD 28, respectively. The rate for mineral hoppers was USD 24 a day. The rates for grain hoppers and cement hoppers were at the level of USD 27-USD 28. The daily rates for oil and petrol tanks were in the range of USD 25-USD 28. The rates for gas tank cars fell to the level of USD 37. The rates for tanks for food products also fell, and are at the level of USD 33-USD 34 a day.

The current state of Russia's railcar fleet
As a result of an increase in the average transport distance and the lack of growth in transport volumes in January 2014, the size of the idle fleet increased to 250,000 units, which is more than 20% of the total fleet. According to our estimates, there were 120,000-130,000 surplus cars in January 2014.

The empty run ration continued to increase in January 2014, reaching 85%. This growth was driven mainly by a decrease in the number of boxcar, gondola, and platform shipments.

Age structure of Ukraine's fleet
The average age of Ukraine’s fleet of railcars is approximately 21 years. The age structure of the different types of rolling stock varies considerably. Over the last 20 years, the domestic market has been supplied with only gondola cars and oil and petrol tank cars, while the remaining cars have been exported to Russia.

Gondolas. Ukrainian operators own 93,000 gondola cars, 44,000 of which (47% of the fleet) have had their service life extended. Another approximately 11,000 units of rolling stock (12%) will reach the end of their standard service life in the next five years. The age structure of Ukraine's and Russia's railway cars are similar, with the average age of the gondola fleet being around 18 years.

Oil and petrol tank cars. Oil and petrol tank cars have the most balanced age structure among all types of rolling stock. The service life of 7,000 tank cars (32%) has been extended. Some 4,500 tank cars (21%) will reach the end of their service life in the next five years. The average age of the fleet of oil and petrol tank cars is 27 years.

Gas tank cars. Ukraine's fleet of gas tank cars consists of 4,000 units. Fourteen per cent of this type of rolling stock is awaiting write-off in the next five years. The average age of the gas tank cars is 18 years.

Platforms. Some 900 container platforms (23%) have had their service life extended. Approximately 1,200 more container platforms (28%) are awaiting write-off in the next five years.

The fleet of universal platforms consists of 7,400 units. Some 2,200 platforms (30%) will reach the end of their service life in the next five years. The average age of the container platforms is 28 years, while that of the universal platforms is 24 years.

Boxcars. Some 200 boxcars (3%) have exceeded their service life. In the next five years, another 3,700 boxcars (41%) will reach the end of their service life. The average age of Ukraine's fleet of boxcars is 26 years.

Hoppers. Some 2,200 grain hoppers (16%), 1,400 mineral hoppers (25%) and 1,200 cement hoppers (19%) have exceeded their service life. In the next five years, another 7,400 grain hoppers (54%), 2,600 mineral hoppers (48%) and 1,400 cement hoppers (22%) will reach the end of their standard service life. The average age of the grain hoppers is 25 years, while that of mineral hoppers is 23 years and that of the cement hoppers is 22 years.

Other specialized cars. The fleet of other specialized rolling stock has an average age of 25 years. Some 3,000 cars (15%) have had their service life extended. In the next five years, a further 6,500 cars (31%) will also reach the end of their service life.

Age structure of Kazakhstan's fleet
Kazakhstan has the youngest fleet of railcars in the CIS, with an average age of approximately 13 years. While Kazakhstan has no mineral hoppers, it has a large share of oil and petrol tank cars (approximately 13%). Kazakhstan has begun upgrading its fleets of platforms and grain hoppers.

Gondolas. Kazakh operators own 51,500 gondola cars, 11,600 of which (23%) have had their service life extended. Another approximately 1,500 units (3%) will reach the end of their standard service life in the next five years. The average age of the gondola fleet is approximately 11 years.

Oil and petrol tank cars. Kazakhstan's fleet of oil and petrol tank cars consists of 28,000 units. The service life has been extended for 800 tank cars (3%). Some 1,600 tank cars (6%) will reach the end of their service life in the next five years. The average age of the fleet of oil and petrol tank cars is 11 years.

Gas tank cars. Kazakhstan's fleet of gas tank cars consists of 4,000 units. Nearly the entire fleet of gas tank cars is new. Ten units (0.2%) of this type of rolling stock will reach the end of their service life in the next five years. The average age of the gas tank cars is five years.

Platforms. The fleet of container platforms consists of 5,100 units, of which 1,400 container platforms (28%) have had their service life extended. Apprximately 500 more container platforms (10%) are awaiting write-off in the next five years.

The fleet of universal platforms consists of 3,800 units, 300 of which (8%) have had their service life extended. In the next five years, 1,400 platforms (38%) will reach the end of their service life. The average age of the container platforms is 19 years, while that of the universal platforms is 23 years.

Boxcars. The boxcar fleet consists of 11,600 units. Some 1,100 boxcars (9%) have exceeded their service life. In the next five years, another 1,700 boxcars (15%) will reach the end of their service life. The average age of the cars in Kazakhstan's boxcar fleet is 14 years.

Hoppers. The hopper fleet consists of 10,000 units, 6,800 of which are grain hoppers, while 3,200 are cement hoppers. There are no mineral hoppers in the fleet. Some 1,200 grain hoppers (18%) and 700 cement hoppers (21%) have exceeded their service life. In the next five years, a further 2,900 grain hoppers (43%) and 700 cement hoppers (22%) will exceed their standard service life. The average age of the grain hoppers is 22 years, while that of the cement hoppers is 14 years.

Other specialized cars. The fleet of other specialized rolling stock consists of 7,300 units with an average age of 19 years. Some 1,500 cars (20%) have had their service life extended. In the next five years, a further 1,000 cars (14%) will reach the end of their service life.