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UTLC ERA: Trans Eurasian Railway Container Operator IBS Web Talk TCEA22 (C) 2021 ERA UTLC UTLC ERA: Trans Eurasian railway container operator IBS Web talk Alexey Grom General Manager 10/06/2021 UTLC ERA BASE TRANSIT ROUTES Kaliningrad up close Baltiysk KCSP Dzerzhinskaya-Novaya Chernyakhovsk Vyartsilya Mamonovo Zheleznodorozhniy Buslovskaya Kaliningrad Bruzgi Svislach Brest Dostyk Izov Altynkol 5-DAY UTLC ERA SERVICES UTLC ERA organizes regular container trains through Cargo flows to/from EU Cargo flows to/from China Belarus, Russia and Kazakhstan NEW GLOBAL LOGISTICS At the apex of the pandemic: air and sea • Air total cargo volumes down by >40%. • Air rates up >300%. • Up to 20% of sea sailings cancelled, total volumes down by 10-15%. • W-BOUND sea freight rates up >20%. • E-BOUND sea freight rates jumped twofold. Impact of the pandemic: rail • The “Modal Shift” phenomena – goods switching over to rail – is set to have a lasting effect on the industry, leading to us to a state of the “New Global Logistics” • "New Global Logistics" – is a paradigm shift which reflects the growing role of rail in trans-Eurasian trade • Previously, trans-Eurasian railway container transportation was expected to settle at around 3-4% of EU- China trade, but this figure already exceeded 5%, hence the status-quo is no more TREMENDOUS GROWTH OF TRANSEURASIAN TRANSIT Absolute 2019 2020 % Change Figures for UTLC ERA change Cargo volumes 333 021 546 902 213 881 64% transported, TEU Results of goods shifting over to rail: • Absolute growth of 214k TEU transported in 2020 over 2019, which amounts to 64% increase. • The total $ value of goods transported by UTLC ERA in 2020 exceeded $30 billion, accounting for 5.4% of trade between China and Europe. • 64 new routes (U-East: 24, U-West: 40) and 23 new locations (Europe: 20, China: 3) joined UTLC ERA services in 2020. To accommodate the rapid surge of volumes we: • Added new crossings to our base routes in order to boost capacity throughput: Gorynj / Udrytsk, Hrubieszow / Izov. • Developed multimodal solutions to further diversify cargo flows: volumes transported via Kaliningrad increased by 320% in 2020. • Developed routes via Finland to better address the Finnish/Scandinavian cargo: volumes for China-Finland services grew by 21%. • Developed the XL train technology to streamline the transportation process: number of XL trains dispatched went up by 195% in 2020. CARGO VOLUMES IN UTLC ERA SERVICES Cargo volumes 2016 – 2020, TEU Actual Strategy 546 902 384 102 333 021 280 499 175 750 100 983 +74% +60% +19% +64% 2016 2017 2018 2019 2020 UTLC ERA IN 2021, FACTS & FIGURES Cargo volume transported in 4m. 2021: 212 997 TEU; Actuals and forecast 2021, TEU 127 094 TEU – Westbound, 85 903 TEU – Eastbound >2 000 container trains dispatched year-to-date 212 997 +75% y-o-y 15-20 trains a day, with a maximum of up to 30 trains a day 630 000 (forecast 2021) 112 locations of dispatch and discharge 232 routes in services 4m 2021 ERAI: KEY INDICATOR OF EURASIAN RAIL TRANSIT Rail freight and ocean freight transit rates 2016 – 2021, $/FEU 2021, freight and ocean Rail freight2016 – transit rates $1.000 $2.000 $3.000 $4.000 $5.000 $6.000 Jul 16 Sep 16 Nov 16 Jan 17 Mrz 17 Mai 17 ERAI Jul 17 Sep 17 Nov 17 Jan 18 Mrz 18 ERAI (forecast) assessed assessed byDrewry. WCI Eurasianrail between China andthe EU. ERAI Mai 18 Jul 18 (World Container Index) – is a is composite index ocean of spot freight rateson major trade lanes Container(World Index) – Sep 18 Ersa alAlac ne)–is a composite index of the costtransit for of container shipments in the (EurasianRail Alliance Index) – Nov 18 Jan 19 Mrz 19 Mai 19 Jul 19 Sep 19 WCI Nov 19 Jan 20 Mrz 20 Mai 20 Jul 20 Sep 20 Nov 20 Jan 21 $2.698 $5.778 Mrz 21 Mai 21 Checkhere:https://index1520.com/en/ outERAI Journal, RailFreight, Hellenic Shipping News,etc. European Euractiv, outlets: Studies Research index quoted also isfrequentlyin variousmedia leading with other shipping The SCFI). indices (WCI, ERAI increasing competitiveness. and stability – transit ERAI is regularly featured in Drewry reports along reports in regularlyDrewryis featured Eurasian rail the trendmajor for reflects BOOSTING CAPACITY AT THE KZ / CN BORDER Vyartsilya Buslovskaya Kaliningrad Brest Bruzgi Svislach Dostyk Izov Dostyk TransTerminal, KZ Altynkol Total area, hectares 1500 Terminal area, hectares 150 Cargo turnover, mln. TEU/year 0,35 BOOSTING CAPACITY AT THE KZ / CN BORDER Dostyk TransTerminal project Development outlook: phase = design capacity 100 thousand TEU platform 2 multi-gauge railway lines for the length of the full train with a hangar of 205 m phase = design capacity 200 thousand TEU open platform with 2 wide and 2 narrow railway lines and 2 gantry cranes phase = design capacity 350 thousand TEU open platform with 2 gantry cranes on 6 railway lines (3 wide and 3 narrow railway lines) SERVICE DEVELOPMENT: KALININGRAD Key objectives for 2021: 1. Development of China-Europe-China multimodal transit services through the ports of the Kaliningrad region bound for the UK, Scandinavian countries, Belgium, the Netherlands and the USA. During 2021 UTLC ERA already organised transit services on the route China – UK (Immingham, Felixstowe). Scandinavia 2. Opening of new and development of existing crossings in the Kaliningrad region. This year 2 new crossings were added (Dzerzhinskaya-Novaya and Chernyakhovsk). Kaliningrad Growth in traffic via Kaliningrad: UK Germany 4m 2020 4m 2021 Change Dzerzhinskaya- Baltiysk KCSP Chernyakhovsk Northern Italy Novaya 4k TEU 31.3k TEU +680% Mamonovo Zheleznodorozhniy 2019 2020 Change 11k TEU 46.2k TEU +320% UTLC ERA crossings new UTLC ERA crossings in 2021 SERVICE DEVELOPMENT: AGRICULTURE & FOOD PRODUCTS A&F segment – driver for further growth: • In 2020 we have tested and successfully deployed brand new service focusing on delivery of agriculture & food products. • To date >1k TEUs were delivered as part of the service. • The service is carried out using electronic navigation seals (ENS) to make sure that goods arrive in pristine condition. INDEX1520.COM: AN EFFECTIVE MARKETING TOOL Index1520.com – is a unique web portal aimed at increasing attractiveness of railway container transit and fostering communication between all the actors involved. At Index1520.com you could find: Latest industry news In-depth analytics Statistics on Eurasian railway container trade Freight rate calculator and CO2 counter Available in RU EN CN https://index1520.com/en/ .
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