Current Situation and Trends

In Q1 2019, the Russian rail container transportation market continues to grow at a 12% rate year-on-year. Based on the market conditions in Q1 2019, the Company currently expects the growth rate of the rail container transportation market in the reporting year to be nearly 5–10% year-on-year. TransContainer pays close attention to ongoing market trends and events.

And thus, the Company has increased the Investment Programme share in 2019 Budget to RUB 13.3 billion. The funds will be spent mainly on purchasing containers and flatcars. Considering the risk of the flatcar price growing due to higher demand of the operators and limited production capacities of Russian manufacturers, the Company is planning to further improve the existing fleet management efficiency to meet the customers’ demand.

Trends of the container transportation market justify the Company’s view that the Russian container transportation market has a significant potential of future long-term growth through higher containerisation level, Russia’s economic advance in the medium term, as well as increase of the transit transportation volume between China and European countries. In the current situation, TransContainer is going to further implement the expanded Investment Programme, advance the business operational and management performances, improve the fleet management and enhance the client experience in order to attract new customers.