OREANDA-NEWS. JSC Freight One, the world's largest private freight rail operator by railcar fleet and UC RUSAL (Hong Kong Stock Exchange Code: 486, Euronext Code: RUSAL/RUAL, MICEX Code: RUALR/RUALRS), one of the world's largest aluminum producers, announce that they have expanded their three-year service contract.

As of January 2015, UC RUSAL will increase the volume of aluminium and other goods shipped by Freight One from 90-120 thousand tonnes to 450-500 thousand tonnes per month. Freight One will also start to transport UC RUSAL's raw materials in addition to a range of finished products. As a result of this increased product range, Freight One will deploy a wider range of rolling stock, including gondolas and mineral hoppers, in addition to the boxcars currently in operation.

"Such a significant increase in freight volumes under our existing service contract with RUSAL is an excellent example of customer loyalty from one of the country's largest consumers of freight transportation services. We are very pleased to be announcing an expanded agreement with RUSAL, a demonstration of how Freight One is able to successfully adapt its integrated service offering to meet its clients' needs," commented Oleg Bukin, CEO of Freight One.

"The expansion of our service contract with Freight One is very much in line with our ongoing programme to cut transport and logistics costs, increase rolling stock turnover, and reduce the total level of inventory and current assets. Overall, our comprehensive programme to cut logistics costs over 2013-2014 will save the company about US\$45 mln. The contract with Freight One will bring an economic benefit to us of at least US\$4 mln next year," said Vladislav Soloviev, CEO of UC RUSAL.

On 25 April 2014, UC RUSAL and Freight One signed a three-year service contract to facilitate the export of finished goods in boxcars from all Russian aluminium smelters.