Russia’s leading rail intermodal operator has reported an increase in adjusted revenue of 6.1% year-on-year in Q2 2018 and by 8.1% year-on-year for H1 2018
As at 30 June 2018, Transcontainer accounted for around 43% of Russia’s rail container transportation market. It owned or leased 25,405 flatcars and 67,909 ISO containers as of the end of the reporting period.
The Russian Railways’ affiliated company also owns a network of rail-side container terminals, located at 40 railway stations across Russia and operates one terminal in Slovakia under a long-term lease agreement and joint venture KedenTransService operates 19 inland rail-side terminals in Kazakhstan.
In the second quarter of 2018, Russia’s container market continued to demonstrate a strong growth of 11.9% year-on-year. This was mainly driven by a 19.9% year-on-year increase in international transportation, with export and transit segments demonstrating solid growth.
For the first six months of 2018, the Russian rail container market grew by 12.1% year-on-year to 2.065M TEU. In terms of segment breakdown for the six month period, domestic transportation volumes increased by 2.8% year-on-year and export transportation by 18.1% year-on-year, while import transportation volumes surged by 19.3% year-on-year and transit by 28.5% year-on-year.
Amid the favorable market environment, the Company’s revenue-generating transportation volumes increased by 7.1% year-on-year to 376,000 TEU in the second quarter and by 6.3% year-on-year to 724,000 TEU for the first six months of the reporting year. As a result, the company’s adjusted revenue increased by 6.1% year-on-year in the second quarter of 2018 and by 8.1% year-on-year for the first half of 2018. Adjusted EBITDA in Q2 2018 was up by RUB404M (+ 13.2%).
Transportation volumes by the company’s flatcar and container fleet grew by 4.8% and 3.8% in the second quarter and the first half of 2018, respectively.
In July and August, the Russian rail container market continues to demonstrate strong performance, notes Transcontainer. "The market is expected to grow approximately 13% year-on-year for the first eight months of 2018 and we anticipate the market to grow at a low double-digit rate in 2018, subject to the global economic conditions and changes in the geopolitical environment."