Page 138 - RusRPTNov21

demand in Asia and Europe, this continues to support gondolas. ● Trains
Russian Railways (RZD) released its September operating results on 1 October. During the month, cargo volumes were up 1.1% y/y to 106.4mnt, which is better than the almost flat results (+0.08%) expected by RZD.
Total cargo volumes for January-September were up 3.7% y/y to 1,956.2mnt. The cargo volumes reported for last month (+1.1% y/y) were 0.4% better than in September 2019, i.e. before COVID-19. The greatest increases were seen in coke (+22.2% y/y to 1.1mnt) and oil and oil products (+10.7% y/y to 17.6mnt). Volumes for iron and steel scrap, ferrous metals and coal were up 7.1% y/y to 1.5mnt, 5.9% y/y to 5.4mnt and 2.2% y/y to 30.8mnt, respectively. Grain (-22.6% y/y to 2.4mnt) and building materials (-11.7% y/y to 11.3mnt) saw negative trends.
Freight turnover and freight turnover taking into account empty wagon runs were up 2.4% y/y and 1.9% y/y to 217.4bn tkm and 273.5bn tkm in September, respectively. Cargo volumes came in above RZD’s expected growth of 0.08% y/y for September.
Valuation and action: We see the news as favorable for GLTR, as the company could benefit from the growth in transportation volumes for oil products, metallurgical cargo and coal, which respectively accounted for 13%, 45% and 28% of its total cargo turnover last year.
138 RUSSIA Country Report November 2021 www.intellinews.com