18 Apr 2024 15:13

Container railway transportation to Far East fell almost half in March amid increase in coal shipments - Russian Central Bank

MOSCOW. April 18 (Interfax) - The increase in the volume of coal shipments in the Far East has affected eastbound container railway transportation, which decreased by almost half in March, a review by the Russian Central Bank on the regional economy shows.

"In March, loading on the Far Eastern Railway (a branch of Russian Railways OJSC) continued to increase, exceeding the average level for 2023. This was due to an increase in the volume of coal shipments after the rise in priority for its removal at the Eastern Polygon in February," the review says.

"In this regard, in March, container transportation from west to east decreased by almost half, delivery was delayed up to three months, and tariffs increased more than three times compared to January," the review said.

As a result, individual companies in the Far East have reported a significant decrease in inventories of finished goods, as well as raw materials and supplies and, as a result, now risk a reduction in production. There were also delays in fertilizer supplies ahead of the sowing season, the Central Bank said.

In order to increase shipment volumes, it is permitted to increase the length of container trains by 40% starting in April, the review said.