Russia’s leading intermodal operator saw international transit traffic handled increase by 17.8 percent last year as Asia-Europe overland transport options grew in popularity.
JSC Transcontainer, which handles more than 50 percent of the rail container market in Russia, also saw major gains in exports and imports.
Volume for the company, which owns some 60 percent of Russia’s flatcar fleet and 60,000 containers, increased by 17.8 percent to 34,000 20-equivalent units. Export traffic rose 24.4 percent to 329,000 TEUs, while container imports to Russia by rail increased 16.6 percent to 222,000 TEUs.
Because of the volume boost on international routes, JSC Transcontainer’s revenue grew by 35.2 percent year-over-year to RUR 30,876 million ($1.1 million), while profit more than quadrupled to RUR $131 million.
3PLs and intermodal players in Europe are currently exploring how best to use Russia’s huge rail network to offer customers alternatives to slow-steaming ocean freight and high-cost air cargo services from Asia to Europe.
Although volumes remain relatively low, Hupac, Russkaya Troyka, Eurasia Good Transport, Far East Land Bridge, DHL and Weiss Röhlig all launched intermodal services from China via Russia to central or Western Europe last year.
“The company’s management believes that in the longer run the Russian container transportation market retains the potential for the sustainable growth, driven by economic development, consumer demand and improving containerization ratio,” the company said in a statement.
Contact Mike King at email@example.com.