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Russian railway companies struggle with volume drop due to sanctions
The Russian container market fell 15.8% year-on-year, import volume fell 12%, to 2.1 million TEU, while export volume plummeted 25%, to 1.5 million TEU due to sanctions.
TransContainer Russian multimodal transport (Image: Koleje Rosyjskie)
The business shift to the east appears to have helped Russian multimodal carrier TransContainer mitigate the decline in Russian rail freight volumes this year.
Full-year 2022 figures from Delo Group's subsidiary show a 5.1% increase in output to 1.8 million TEUs, due to a sudden increase in imports (up 9.5%, to 400,000 TEUs) and exports. imports (up 11.3%, to 700,000) – more than enough to cover the 200,000 teu shortfall in shipping operations.
Data analyst for Odessa-based cargo consultant Informall Daniil Melnychenko told The Loadstar: “TransContainer’s intermodal traffic is heading mainly to and from Asia. Largely, the markets appear to be China, Japan, and Korea.
“It is also likely that it increased its volumes of total loaded container traffic on account of ocean containers that were moving from Far East ports to Central Russia by rail.”
It appears that the carrier managed to increase its share of the total shipping container traffic on Russia's rail network to 1.7% over a 12-month period, to 37.7% from 36% before the war. Russo-Ukrainian War.
It is also important to note that the Port of Vostochnaya, in which Delo Group holds a 61.5% stake, has increased transshipment output by 20.1%, to 624,000 TEU, Mr. Melnychenko said.
“Also, important to mention is that TransContainer, in cooperation with another Delo Group subsidiary, Ruscon, launched a liner service from the Black Sea port of Novorossyisk to India, where rail transport to/from the port is used as well,” he added.
However, he noted that, due to the "logistical, geopolitical, and macroeconomic changes" created by the war, the share of last-mile rail deliveries from Novorossyisk was much lower than that of ports. Far East, making it a "small contributor" to the overall performance.
The Russian container market has fallen by 15.8% year-on-year. Results from Fesco show that import volume fell 12%, to 2.1 million TEU, while export volume plummeted 25%, to 1.5 million TEU, due to sanctions, causing Russian shippers to scramble to find alternative markets for their goods.
Unlike its rival, Russia's largest multimodal carrier, Russian Railways, is struggling after being embargoed from key global supply chains by sanctions, with output falling 10% since the Russo-Ukrainian war.
Source: Phaata.com (According to The Loadstar)
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