Loading falls better than expected – Newspaper Kommersant No. 224 (7425) of 12/02/2022

Loading on the network of Russian Railways continues to noticeably lag behind the level of 2021, however, it still shows better dynamics than forecasts. In November, for the first time since the beginning of the year, there was no decrease in coal loading. At the same time, there is a noticeable drop in metallurgical and timber cargoes, where industry representatives are now trying to enlist state support, which will reduce transport costs or facilitate exports to the Asia-Pacific countries.

Loading on the network of Russian Railways for 11 months decreased by 3.6% compared to the same period in 2021, to 1.13 billion tons. In November, it fell by 4.1% to 103.5 million tons. The rate of decline, which decreased to 3% in October, slightly increased, but all the same, the decline slowed down relative to April-September, where the average rate was minus 5.5%. Also in November, the dynamics of loading was better than the plan, which provides for a decrease of 4.6%.

For the first time since January, there is no negative dynamics in the loading of the most massive cargo – coal, which showed anti-records in the spring and summer.

For example, the decrease in coal loading in June was 11.8%. Now this figure has not changed compared to November 2021, amounting to 31.4 million tons. Nevertheless, according to the results of 11 months, coal loading is still far behind last year: a total of 323.2 million tons were loaded, which is 5.1% less than a year earlier. JSC Russian Railways explained that export transportation of coal in November increased by 0.6%, including through ports – by 12.1%. “An increase in loading to ports was noted in all directions, including to the ports of the North-West by 13.8%, the ports of the Azov-Black Sea basin – by 9.9%, the ports of the Far East – by 12.2%,” they add to JSC Russian Railways.

The leaders of decline in share terms in November were ferrous scrap (down 30.8%), timber (down 32.3%) and coke (down 36.4%). Against the backdrop of the closure of European sales markets, timber industry enterprises were faced with the need to greatly increase the range of transportation and transport their goods to the overcrowded Eastern landfill (their shipments in this direction are growing), and timber industry enterprises began to ask the government to subsidize these costs. Deputy Prime Minister Victoria Abramchenko proposed in November to give priority to sawn timber at the Eastern landfill, with quotas for individual enterprises (see “Kommersant” of December 1). JSC Russian Railways explained that priority at the Eastern range is given to special, military and high-tech cargo, as well as domestic transportation, regardless of the type of cargo. “Volumes of transportation of other goods will be determined on the basis of these rules and will depend on the volumes of presentation of goods that have a higher priority,” the monopoly added.

In volume terms, in addition to 1 million tons of timber cargo, Russian Railways lost about 1 million tons, or 16.4% of the monthly loading, of ferrous metals in November. The decline over 11 months was 3.1%. Metallurgists have previously complained that after the summer increase in tariffs, the payment for transportation, the range of which has radically changed, has become unbearable for them. However, JSC Russian Railways noted that the transportation of metal products to the east already has a significant discount – 66% (see “Kommersant” dated October 31). As reported Vedomosti With reference to the head of Russian Steel, Aleksey Sentyurin, Russian Railways may receive state subsidies for discounts for metallurgists when transporting to the east – such a system is already used for transporting grain. Kommersant’s interlocutors confirm that a dialogue on this issue is underway.

JSC Russian Railways reported to Kommersant that providing additional discounts to the tariff for the transportation of metallurgical products in the eastern direction for JSC Russian Railways is not economically feasible, but “understanding the position of metallurgists, the company supports the proposal of the Russian Steel Association to directly subsidize part of such expenses for enterprises “.

At the same time, according to the results of the month, there is an increase in grain transportation (18% more than in November 2021), but the cumulative result of transportation of this type of cargo lags behind last year by 6%. Transportation of building materials increased by 9.3% in the month and by 5.3% in January-November. Other transportation, including containerized cargo, is also growing: by 2.1% in November and by 2.2% over 11 months.

In October, Russian Railways confirmed that it expects a decrease in loading by about 5% by the end of the year. Monopoly did not provide updated forecasts.

Natalya Skorlygina