Forced seizure has nothing to cover – Newspaper Kommersant No. 209 (7410) dated 11/11/2022

The First Freight Company of Vladimir Lisin sells about 4.5 thousand small cubic meters of boxcars. In general, covered wagons are a priority segment for the company, but small-cube vehicles are becoming less in demand, and, according to analysts, the transportation rate in them is 60% lower than in large-cubic ones. In addition, the company explains, cases of “forced withdrawal of this type of covered wagons for transportation for state needs” have become more frequent. According to analysts, the cost of the fleet due to high wear and tear will not exceed 4.5 billion rubles.

The First Freight Company (PGC) of Vladimir Lisin announced that it was leaving the subsegment of small-cube covered wagons (they carry heavy loads: cement, gypsum, sugar, cables, spare parts, etc.). The company specifies that it sells 4,562 small cubic meters (120–122 cubic meters). Management must implement this decision within a month. The company does not specify the form of sale and the cost of the transaction. “The reason for the sale was problems in planning activities in this segment of transportation and fulfilling obligations to customers against the background of more frequent cases of forced withdrawal of this type of boxcars for transportation for state needs,” Freight One reports.

For a similar reason, Freight One has already sold universal platforms (see “Kommersant” dated April 5). Then the interlocutor of “Kommersant” in the company also explained that the segment had ceased to be interesting due to the forced withdrawal of the fleet for transportation for state needs, which did not allow normal work with customers.

But Freight One has never considered universal platforms as a strategic segment. But the covered wagon segment remains key for it: the company has always stated that it focuses on gondola cars, covered wagons and container platforms.

According to Russian Railways, as of September 1, the network’s covered wagon fleet was 57.6 thousand units, and the operating fleet was 47.4 thousand units. According to Infoline-Analytics, Freight One continues to be the largest operator in the boxcar segment with 20.3 thousand units over the first nine months. IPEM Deputy General Director Vladimir Savchuk notes that Freight One manages 35% of the entire fleet.

The fleet of small cubic meters (less than 120 cubic meters) on the network is declining, while the fleet of large cubic meters (more than 150 cubic meters) is growing, says Mikhail Burmistrov, head of Infoline-Analytics. From January 2019 to September 2022, the fleet of small cubic meters cars involved in transportation has almost halved, from 12.3 thousand to 6.5 thousand units. In 2022, the use of covered wagons increased due to the reorientation of part of the cargo base from fitting platforms (due to a local shortage of containers), as well as due to a special operation in Ukraine. If in 2021, on average, about 4% of all covered wagon shipments accounted for the execution of transportations on orders of the Russian Railways Center (acts as an agent for special-purpose transportation), then in 2022 the share of such car shipments increased to about 8-9%, says Mr. Burmistrov.

According to the new IPEM monitoring of key indicators and trends in the railway industry, boxcar traffic volumes decreased by 7.3% from January to September 2022. In October, shipment volumes grew by 4.4%, which led to an increase in rental rates for small cubic meters, Vladimir Savchuk notes. At the same time, the rental rate for small cubic meters in October was 60% lower than the rate for large cubic meters.

Mr. Savchuk notes that Freight One has the oldest fleet of covered wagons: over the next five years, the company must renew 50% of the fleet and become a leader in the purchase of new covered wagons.

At the same time, since the production of new boxcars is carried out in limited quantities, we can expect an acceptable price for the buyer at Russian plants. Freight One is logical in these conditions to sell the old fleet, which should be decommissioned in the near future. The proceeds can be used to upgrade the fleet with large-cube wagons, the rental rates for which are more profitable, adds Volodymyr Savchuk.

According to Mikhail Burmistrov, the fleet of small cubic meters of boxcars sold by Freight One is subject to write-off in terms of service life during 2023–2025, so its cost does not exceed 4.5 billion rubles, with a significant share of it being the cost of scrap metal and spare parts that can be sold after cutting the wagon.

Natalya Skorlygina