Ruscon Increases Business in Russian Market

Intermodal operator Ruscon reported it has increased its market share in Russia, maintaining a strong position in a country which has seen imports fall by 20 percent in the last 12 months. In the first quarter of 2015, Ruscon handled 32,250 laden containers compared to 28,497 in the same period last year. 

 

Vladimir Bychkov, CEO of GCS, Ruscon’s parent company, said that handling a higher than average volume of import goods also benefits its ability to handle export business.

 

“Imports have fallen but export demand has grown since the devaluation of the rouble and the fall in oil prices. So there is a shortage of empty containers for exports. Our strong position in the import market means we are able to access empty containers more easily and so build our market share” Bychkov said.

 

Ruscon noted it performed particularly well in handling containers arriving at Russian Pacific ports, despite overall volumes at Vladivostok and Vostochniy falling by 20 percent.

 

“We almost tripled our volumes on the Pacific route as a result of launching our own weekly, fixed day blocks train between Moscow and Vostochniy in the second half of 2014,” Bychkov said.

 

The majority of Ruscon’s business is handled through the Black Sea Port of Novorossiysk. Total container volumes through the port fell by 14.5 percent, but Ruscon increased its business to 22,989 containers compared with 20,403 in Q1 2014. 

 

The Port of St Petersburg saw the greatest decline overall in the quarter, falling 28.6 percent, largely as a result of collapsed oil prices as well as economic sanctions imposed by the European Union and the United States. In spite of this, Ruscon managed to increase its business slightly, handling 7,635 containers compared with 7,526 in Q1 2014.

 

The total number of containers handled by Ruscon in Q1 2015 – 32,350 – was an increase of 13 percent compared with the previous year.

 

Bychkov attributes Ruscon’s success to a balanced structure of customers, with nearly equal proportions of export and imports, as well as to strong relationships with the major customers and carriers.

 

“We offer cost-efficient and reliable services in the key gateways of Russia, as well as holding a strong position in the main segments of both Russian imports (retail, foods, electronics, automotive) and exports (wood and paper, agribulks and chemicals).”