JSC TransContainer Operating Results
OPERATING RESULTS FOR THE SECOND QUARTER AND THE SIX MONTHS OF 2013
Open Joint Stock Company TransContainer (TransContainer or the Company) (LSE: TRCN) announces its preliminary operating results for the second quarter and the first six months of 2013. The operating results were affected by an increasingly competitive environment and a persisting weak economic climate. As a result of these circumstances the Company is taking steps aimed at addressing the market challenges and customers requirements as well as improving its competitive positions.
Rail Container Transportation Volumes
The Companys rail container transportation volumes in Russia for the second quarter of 2013 decreased by 3.0% to 359 thousand twenty-foot equivalent units (TEU) compared to 370 thousand TEU for the same period of 2012. This was mainly due to a 7.9% drop in domestic transportation volumes, partly compensated by growth in imports by 7.6%. A decrease in the Companys domestic transportation was primarily driven by the tightening competition on domestic routes and partial employment of the Companys rolling stock in Kazakhstan and Central Asia by its subsidiary KedenTransService. The Companys rail container transportation volumes in Russia for the second quarter of 2013 increased by 4,8% from 342 thousand TEU in the first quarter of 2013.
Transportation of containers by TransContainer’s fleet in 2Q 2013 (ISO Loaded + Empty), 000 TEU
|2Q 2013||2Q 2012||Change|
Rail container transportation volumes carried out by KedenTransService, the Companys subsidiary in Kazakhstan, amounted to 62 thousand TEU in Q2 2013, which represents a 12.5-fold increase on the second quarter of 2012 as a result of a substantial increase in the flatcar fleet under operation.
The Companys rail container transportation volumes for the first six months 2013 amounted to 701 thousand TEU from 717 thousand TEU for the first six month of 2012, down 2.2% year on year. This decrease was mainly driven by a 9.2% drop in domestic transportation volumes, partly compensated by a 19.9% growth in imports. A decrease in the Companys domestic transportation was primarily driven by the tightening competition on domestic routes and partial employment of the Companys rolling stock in Kazakhstan and Central Asia by its subsidiary KedenTransService.
Transportation of containers by TransContainer’s fleet in 1H 2013 (ISO Loaded + Empty), 000 TEU
|1Hm 2013||1H 2012||Change|
The Companys revenue-generating container transportation volumes in Russia decreased by 3.5% in the second quarter of 2013 to 274 thousand TEU from 284 thousand TEU in the second quarter of 2012. For the first six month of 2013 revenue-generating container transportation volumes were down 2.0% to 533 thousand TEU compared to 544 thousand TEU for the same period of 2012.
TransContainers estimated share of Russias rail container transportation for the first six month of 2013 decreased to 47.7% compared to 50.1% for the same period of 2012.
Throughput of the Companys rail container terminal network in Russia in the second quarter of 2013 decreased by 8.4% to 324 thousand TEU compared to 353 thousand TEU for the same period of 2012. This decline was mainly due to the 79.8% drop in handling of medium-duty containers (MDC) as a result of the continuing phasing out of the MDC fleet. MDC handling volumes in the second quarter of 2013 were 6.4 thousand TEU compared to 31 thousand TEU in 2Q 2012.
For the first six month of 2013, throughput of the Companys rail container terminal network in Russia amounted to 621 thousand TEU, a decrease of 9.6% year on year. MDC handling volumes dropped 74.2% YoY for the same period.
Preliminary figures indicate that container handling on rail side terminals by the Companys subsidiary in Kazakhstan KedenTransService amounted to 33 thousand containers in the second quarter of 2013, a 2.6% growth over the second quarter of 2012. For the first six months of 2013 container handling by KedenTransService grew 20.0% compared to the corresponding period of 2012 as per preliminary data.
In the second quarter of 2013, the flatcar and container empty runs improved considerably due to management efforts aimed at the optimisation of the fleet utilization amid a challenging operating environment.
Growth in the container and flatcar turnover reflects the weak market environment in the first half of 2013.
|2Q 2013||2Q 2012||1H 2013||1H 2012|
|Turnover of containers, days||25.0||22.4||25.5||22.8|
|Turnover of flatcars, days||13.3||12.9||13.7||13.3|
|Empty run for containers, %||30.8%||35.6%||30.0%||37.5%|
|Empty run for flatcars, %||6.7%||7.7%||6.4%||7.9%|
 transportation of clients containers and own loaded containers
2 the Empty run ratio is calculated as an average empty run in kilometers divided by an average total run in kilometers