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      Internal transportation crisis

      English version
      —
      News
      —
      Company’s News
      —Internal transportation crisis
      04.07.2022

      The share of JSC "Astyk Trans" (hereinafter- the Company) in domestic transportation is 75-80%. It should be noted that the last time the Company raised tariffs for  use of wagons in internal transportation was in 2020. In addition, the regulatory period for loading and unloading was increased. At the same time, some of customers who have not signed supplementary agreements are still calculated based on 1 day for loading and unloading, while for 5 months of 2022, the average actual turnover in internal transportation was 21.77 days. At the same time, the standard turnover (for which an invoice is issued for payment) for the same period amounted to 13.67 days, which is 37% lower than the actual one, i.e. at least 37% of income was not received only due to an increase in turnover. Unfortunately, statistics show that it is not necessary to expect an improvement in the turnover of wagons in the near future.

      Despite the significant growth of the fleet of other owners of the Republic of Kazakhstan, which has increased by 30% over the past 2.5 years and the CIS fleet freely plying in the Republic of Kazakhstan, they transport in the Republic of Kazakhstan poorly. At the same time, the Company's competitors, due to more profitable export shipments, have the opportunity to buy a new fleet, which does not require significant repair costs in the first years. Nevertheless, the growth of investment costs does not allow internal transportation for other freight forwarders at lower tariffs.

      Due to the strengthening of the sanctions policy, spare parts mainly imported from the Russian Federation are increasing in price (due to restrictions on the import of components to the Russian Federation), in addition, the Russian ruble has been constantly growing since December 2021, the growth has already amounted to more than 45%. These factors have a significant impact on the cost of maintenance and repair of wagons.

      Taking account that internal transportation accounts for a significant share in the Company's transportation, their unprofitability leads to the fact that the Company risks not to implement the investment program, which in the future will not only prevent the purchase of a new fleet, but also repair the existing one in time. This will lead to a reduction in the working fleet suitable for transportation in the future.

      At the same time, it should be noted that in the 1st quarter of 2022, according to the Bureau of National Statistics, 747 thousand tons of flour were produced, 467.8 thousand tons were exported, i.e. 62%. That is, in fact, more than 60% of the flour produced is exported.

      Therefore, JSC "Astyk Trans", consciously assuming social obligations to ensure the domestic transportation of grain cargo, for 2 years held the increase in tariffs for internal transportation of grain cargo, despite the fact that inflation in 2021 amounted to 8.4%, and for 5 months of 2022 already 14%!  

      To date, the preservation of this policy threatens to ensure the safety and continuity of transportation, in addition, it does not ensure the proper development of rolling stock for  transportation of grain cargo and requires adjustments in accordance with inflationary processes.

       

      Source, JSC “Astyk Trans” 

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      info@astyktrans.com
      Astana c., Saryarka ave, bld 6 «Arman» business center, 5-6 floors
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