Rail fright recovery due to higher rates and traffic. Comment from Tatiana Podtikan made for the Vedomosti

The largest railway companies have reported for the six months of 2017 to show better financial performance. This is due to recovery of the market rates on car rent (the average rate on open cars has doubled to RUB 1,300 - 1,400 per day; on stack cars it has become 1,5 times higher to RUB 1,300) and due to higher freight traffic (increased by 3.6% to 620.7 million tons during the six months of 2017), as the companies say.

Tatiana Podtikan

partner in FinExpertiza

- The upward trend in the rail fright that started at the end of 2016 has increased however the recovery is not yet completed. The key market drivers during the six months are coal (+9.9%), chemical and mineral fertilizers (+8.1%), grain and grinding products (+9.9%). Construction materials are behind - the loading are 5.5% less for the six months to 65 million tons. However the Moscow renovation programme may drive the figure. The first priority for the Russian Railways and operators is to retain the current figures.