The logistics component of metallurgy business was the main topic of the Metallurgy and Cargo Transportation Conference held on November 13, 2013 as part of the MetallTransLogistic - 2013 exhibition.
First Deputy CEO of New Forwarding Company, JSC, Vyacheslav Stanislavsky dedicated his speech to the analysis of the problems and prospects of the market of railway transportation of metals and metal raw materials.
According to Vyacheslav Stanislavsky, the increase in the volume of domestic railway transportation along with some reduction in exports was the specific feature of the year. "This year, the growth of production in the Russian metallurgy industry to a greater degree is observed due to the increase in the volume of domestic supply and to a lesser degree - due to exports," Vyacheslav Stanislavsky said in his speech at the conference. "The main drivers of growth in domestic demand for steel products are the construction sector (implementation of such projects as: the 2014 XXII Olympic Winter Games, the 2013 XXVII World Summer Universiade, the 2018 FIFA World Cup and other projects) as well as the automobile industry and mechanical engineering". According to the NFC First Deputy CEO, it is more profitable to sell production in Russia than to deliver it abroad, and thus the Russian market becomes a priority for metallurgical holding companies which helps increase the share of the domestic market.
Another specific feature of the market concerning the provision of railcars for the transportation of metals and raw materials is the consolidation of the assets based on the major operating companies. "Before 2012, the market of mergers and acquisitions in the rolling stock segment showed rather slow and uneven development (up to 2010, their number did not exceed two deals per year), but the last year showed the highest number of mergers and acquisitions - 19 deals", Vyacheslav Stanislavsky said.
In the course of the conference, the prospects for expanding railway, road, sea and river transportation were actively discussed. The country's leading metal trading companies discussed the role of logistics in metal trading. Top managers from Severstal, ArcelorMitall Trans, First Forwarding Company, Association of Manufacturers of Railway Equipment, Association of Russian Seaports and many others spoke at the conference.
Taking into consideration the fact that from 1.5 bln tons of annually transported goods, about 300 mln tons belong to the mining and metallurgical sector (i.e. every fifth ton), the conference was of a great interest for the management and key personnel of railway companies, railway operators, cargo owners, shippers, transport engineering companies, freight forwarders, logistics companies, professional associations, financial institutions, transport infrastructure owners, etc. The event was held with the support of NP Russian Steel, the Russian Union of Metal and Steel Suppliers, and Metal-Expo.
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