Volga Shipping Company
15A Markin square, Nizhny Novgorod, Russia, 603001
Tel.: +7 (831) 431?3001

Operating Results of the Volga Shipping Company in 2016: export transportation dominance

Volga Shipping Company
15A Markin square, Nizhny Novgorod, Russia, 603001
Tel.: +7 (831) 431?3001
25.01.2017
River Transportation of Dry Cargoes

Vessels of the Volga Shipping Company (part of UCL Holding) delivered 5.2 mln tons of cargos in 2016, by 7% less than the previous year. The cargo turnover made 5.3 billion tkm, equal to the last year level.

Operating results were significantly influenced by the change of cargo traffic, caused by unfavorable economic conditions. Apart from that, depth control introduction on the Volga (river reach Gorodets — Nizhny Novgorod) and on the Don (Kochetov hydraulic unit) had a major impact on the fleet operation. As consequence, the company vessels were underloaded, that caused transportation volume and income losses.

Despite operating results decrease, in the reporting period the company managed to ensure stability of financial performance due to effective vessels operation on the Lower Volga and in the Azov-Don basin. The vessels were at work upon transportation of highly rated export cargoes.

Correlation of export and inland transportation in the total amount of cargo made 67% and 34% (during 2015 navigation — 58% and 42% accordingly). Export cargoes volume increased by 7% up to 3.5 mln tons. Inland cargo transportations decreased by 26% down to 1.7 mln tons.

In the reporting period the company managed to keep the range of main cargoes, including crops, sulphur, metals and construction materials. Crops made almost one third of the total transportation volume in 2016 navigation. The company vessels delivered 1.57 mln tons of grain, by 21.5% less than last year. The amount of export metal transported by the company increased by 2.6 times and made 0.9 mln tons. Sulfur transportation amounted to 1 mln tons, by 14,5% more than the last year volume.

Crushed stone from Karelia pits was the main cargo of the Volga Shipping Company’s inland transportation in 2016. The company vessels carried 1.1 mln tons of crushed stone, equal to the last year level. Along with that, due to changes in market conditions and crisis phenomena on the construction market, inland transportation of gravel and sand and gravel mix decreased.

A peculiarity of 2016 navigation was early freeze-up on the Volgo-Baltiysky water way. In this respect the Volga Shipping pusher tugs provided more than 40 ice-routing services to accompany cargo vessels of different Russian shipping companies to their winter dockage.

The total of 73 units of cargo, towing and maintenance fleet and 58 non-self-propelled dry-cargo sections of the Volga Shipping operated during 2016 navigation.

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