SUPPLY CHAIN MANAGEMENT
COMPANY NEWS
2017, 7 MAR
RZD Logistics JSC increased its volume of processed cargoes in 2016 by 5%, to 56 million tons

JSC RZD Logistics, the largest multimodal logistics operator in the CIS and Baltic countries, processed more than 56 million tons[1] of cargoes in 2016, a 5% increase compared to 2015. To transport such volumes, the company used more than 89,000 vehicles of various types every month.

RZD Logistics provided complex cargo transportation services by various modes of transport in Russia and throughout the 1520 mm track gauge zone, including up to land border crossing points and to sea ports. Along with basic transportation, the services included loading/unloading, scheduled delivery, inbound/outbound logistics of enterprises, approach lines maintenance, shunting, spotting/picking of carriages, preparation and repairs of carriages, transloading and agency services at ports, delivery of oversized and bulky cargos within Russia and abroad, and other services. Mainly coal, metals, and ore were processed, as well as goods transported in containers.

In 2016, the number of clients, who have entrusted the intraplant transport servicing of their enterprises to RZD Logistics (industrial logistics outsourcing service), increased to 41, which is 2.5 times greater than previously. In total, as of the end of the year, the logistics operator had the use of more than 250 km of nonpublic use tracks and managed more than 100 units of shunting locomotives, field engines, and handling equipment. The number of carriages processed exceeded 11,000 per month.

The volume of container traffic organized by RZD Logistics during the reporting period increased by 20%, to 95,000 TEUs. Out of these, Russian domestic service accounted for approximately 12,000 TEUs, transit shipments on the route Europe – China – Europe accounted for more than 73,000 TEUs, imports from China to Russia (together with the subsidiary Far East Land Bridge) accounted for more than 5,000 TEUs, and exports from Russia to China also accounted for more than 5,000 TEUs.

The busiest Russian domestic route was Saint Petersburg – Yekaterinburg, with a delivery time of three days. In the area of container shipping, the preferred routes of RZD Logistics clients were Zabaykalsk – Brest – Zabaykalsk, Suzhou – Warsaw, Bayuchan – Warsaw, Chansha – Duisburg, and Shenyan – Duisburg, with a delivery time from 11 to 15 days depending on the final destination.

The RZD Express service for transportation of small and LCL cargoes also exhibited significant growth; its traffic volume amounted to 233,000 tons, and the number of processed orders exceeded 27,000, which is 1.5 times greater than in 2015. Both large retail companies and small and medium enterprises used this service.

In addition, during the reporting period, the company started working with international post delivery and launched main-line service from China to Germany through Kazakhstan, Russia, and Belarus. The delivery time is 14 days.

"In 2016, we focused on deeper immersion in the transportation infrastructure of our clients. We optimized the system of supply chain management for them and improved our logistics services. Today, we're seeing the results of our efforts: the growth of key indicators and our client base. More and more industrial enterprises are entrusting their transportation security to us," said Vyacheslav Valentik, CEO of RZD Logistics JSC, regarding the company's performance.


[1] This figure does not include transportation for the needs of the RZD holding.