llc «trust carriage company» kyiv, 2008 1. trust carriage company cargo railway transportation and...
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LLC «Trust Carriage Company»
Kyiv, 2008 1
Trust Carriage Companycargo railway transportation and transport services
UKRAINIAN MARKET OF ROLLING STOCK (as of the beginning of 2008)
The aggregate park of open freight wagons in Ukraine amounted to 80 934 wagons, including 16 972 privately owned wagons.
Wear rate reached 81%. Mean age of open freight wagons 19 years (normative operation period of wagon is 22 years). During 1994-2007 the total decrease in number of rolling stock amounted to 38,89 th. wagons, or almost 30% from
the initial number in 1994. The average annual decrease rate totaled to 2,8 th. wagons per year. The principal owner of the open freight wagons in Ukraine is state owned enterprise Ukrzaliznitsya, which as of the
beginning of 2008 had a park of 63,96 th. wagons, that is less on 48,45 th. wagons then it had in 1994. The mean age of Ukrzaliznitsya’s open freight wagons reached 21 years.
The number of private rolling stock as of the beginning of 2008 amounted to 16,97 th., that is on 9,56 th. wagons more, then it was in 1994. The mean age of private open freight wagons reached 11 years.
Over a period of 1994-2007 there happened changes in ownership structure of the open freight wagons . In particular, the Ukrzaliznitsya’s share dropped to 80% from 94%, and the share of a private rolling stock increased from 6% to 20%.
The total reduction in number of wagons is connected with worsening in technical state, as well as with Ukrzaliznitsya’s failure to implementе investment plans for purchasing new rolling stock.
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Trust Carriage Company cargo railway transportation and transport services
THE UKRAINIAN PARK OF OPEN FREIGHT WAGONS IN 1994 – 2008
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YEAR Park of wagons, wagons Put into operation, wagons
Out of operation, wagons
Average age, years
Total UZ Private Total UZ Private Total UZ Private Total UZ Private
1994 119 827 112 415 7 412 1 476 1 352 124 2 522 2 522 0 10 10 6
1995 116 077 108 541 7 536 2 616 1 201 1 415 3 102 3 102 0 10 10 6
1996 113 189 104 238 8 951 698 637 61 3 384 3 384 0 11 11 7
1997 109 229 100 217 9 012 486 351 135 3 995 3 995 0 11 11 7
1998 105 018 95 871 9 147 551 462 89 3 352 3 352 0 11 11 7
1999 101 293 92 057 9 236 661 471 190 3 260 3 260 0 12 12 8
2000 97 752 88 326 9 426 411 296 115 3 018 3 018 0 12 12 9
2001 94 553 85 012 9 541 313 167 146 5 519 5 519 0 13 13 10
2002 89 013 79 326 9 687 112 28 84 3 174 3 174 0 14 14 10
2003 85 895 76 124 9 771 123 11 112 2 987 2 987 0 16 17 11
2004 83 009 73 126 9 883 1 248 0 1 248 3 750 3 500 250 16 17 10
2005 80 507 69 626 10 881 1 428 0 1 428 4 949 4 087 862 17 18 10
2006 80 112 67 083 13 029 2 678 220 2 458 4 097 3 347 750 18 19 10
2007 78 693 63 956 14 737 5 144 1 961 3 183 2 903 1 955 948 19 21 11
2008 80 934 63 962 16 972 19 21 11
Total -38 893 -48 453 9 560 17 945 7 157 10 788 50 012 47 202 2 810
Trust Carriage Company cargo railway transportation and transport services
PRIVATE OPEN FREIGHT WAGONS OWNERS (as of the beginning of 2008 )
62 companies had a private open freight wagons, 8 of which manage the stake in 90% of the total number of private rolling stock.
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working in Ukraine
Corporation "Interregional Industry Union" 10 336 10 336 LLC "Lemtrans" 60,90%LLC «Trust Carriage Company» 1 888 1 888 CJSC "Ukrenergotrans" 11,12%LLC "Industrine vagonu company" 962 962 CJSC "Ukrenergotrans" 5,67%CJSC "Illyich-Steel" 300 300 LLC "Ukrmetallurgtrans" 1,77%LLC "Skif Shipping" 582 3,43%"Zaporizhstal Integrated Iron & Steel Works" JSC 550 550 JSC "Zaporizhstal" 3,24%LLC "Eximtrans" 403 403 LLC "Eximtrans" 2,37%
100 CJSC "Ukrenergotrans"307 LLC "Ukrmetallurgtrans"
"Darniczkij vagonoremontnyj zavod", GP 300 3 CJSC "Ukrenergotrans" 1,77%LLC "Transsystem" 10 10 LLC "Transsystem" 0,06%"Nexus-ICC" 41 41 LLC "Ukrmetallurgtrans" 0,24%JSC "Ukrtransleasing" 200 200 LLC "Lemtrans" 1,18%LLC "Ukrtransprom" 183 183 LLC "Ukrmetallurgtrans" 1,08%OJSC "Ilyich Iron and Steel Works of Mariupol“ 56 56 LLC "Ukrmetallurgtrans" 0,33%LLC "United transport holding" 30 30 CJSC "Ukrenergotrans" 0,18%Another 724 1 603 4,27%
Owner's name% from the
private park
Number, wagons
operator
LLC "Trans Group" 2,40%407
Trust Carriage Company cargo railway transportation and transport services
FORECAST FOR CARGO RAILWAY TRANSPORTATION TILL THE END OF 2010 (million tons)
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Name of load 2007 2008 2009 2010
Mineral carbon 108,48 113,29 118,79 124,59
Coke 11,11 19,6 19,9 20,2
Iron ore and manganese ore 51,57 58,2 60,5 62,9
Ferrous materials 43,2 46 47,6 49,2
Iron-and-steel scrap 6,7 8,0 8,2 8,4
Construction materials 37 39,6 42,3 45,3
Other loads 32,33 36,7 38,2 39,7
TOTAL 290,39 321,39 335,49 350,29
Increase to the previous year 20,44 10,68 4,39 4,41
Trust Carriage Company
cargo railway transportation and transport services
NEED FOR THE OPEN FREIGHT WAGONS FOR TRANSPORTION THE EXPECTED VOLUME OF LOADS UNTIL 2010
For guaranteeing the transportation of expected volume of loads the park of open freight wagonsshould be increased in Ukraine on average by 13 th. wagons per year until 2010, or by 39-40 th. wagons
in three years. This need is formed by three basic components: 1. Current deficit for open freight wagons amounted to 15 th. wagons. 2. Necessary guarantee for the additional freight traffic at the level of 33,1 mln. tons. 3. Replacement of old rolling stock.
Taking the current deficit in existing park of open freight wagons, for guaranteeing the yearly volumegain in freight traffic at the level of 10 mln. tons, it will be necessary to put additionally 2,5-3 th. newopen freight wagons yearly.
Minimally necessary quantity in the open freight wagons to transport the additional volume of loads:
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Year
Additional volume of loads, mln.
tons
Maximum possible norm,
tons/wagon
Necessary quantity of open freight wagons Minimum necessary quantity
for freight supplying, wagons
Additional quantity for freight supplying (growth of
production), wagons
Total, taking into account a deficit, growth of production and planned conclusion of wagons on the term
of service
2008 22,2 3 500 6 348 24 617 27 0742009 5,4 3 500 1 536 26 821 31 7642010 5,5 3 500 1 566 31 739 39 339
Всего 33,1 9 450
Trust Carriage Company cargo railway transportation and transport services
ABOUT THE COMPANY
Investment wagon company (further the Company), is one of the leaders of the transport market for rail transportation in Ukraine, completely open, the most up-to-date enterprise, which develops dynamically.
The Company was created on October 7, 2004 within the framework of investment project “Operation of its own rolling stock for the transportation of iron-ore raw material, metal production, products and other loads”.
Sectoral affiliation - transport agencies activity.Specialization – cargo rail transportation.The Company allows into the lease and into the use its own open freight wagons.Starting its activity from guaranteeing demand in cargo rail transportation arising
from metallurgical plants which are part of the Corporation “Industrial Union of Donbass” the Company gradually enlarged the geography of transportation and client base further.
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Trust Carriage Company cargo railway transportation and transport services
ABOUT THE COMPANY (continuation)
The Company is a part of holding structure named “United Transport Holding”, which is shareholder and the founder for the following enterprises: LLC “Trust Carriage Company” (the stake is 90,9961 % of authorized capital); “Ukrenergotrans” (88,5 % of shares); “Dneprodzerzhinskiy river port” (69 % of shares).
The Company is the owner of open freight wagons.The main activity for “Ukrenergotrans” is to provide transport services and it
operateswith more than 3 139 open freight wagons.
“Dneprodzerzhinskiy river port” renders the services for trans-shipment of loads.
Within the holding structure the functions are distributed as follows: “United Transport Holding” fulfills strategic functions and functions for corporate
administration.
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Trust Carriage Company cargo railway transportation and transport services
ABOUT THE COMPANY (continuation)
The Company fulfills the following functions: attracts a loan capital to finance the wagon program, supervises the rolling stock repairs, manages the cash inflows, obtained as operating return from rolling stock maintenance, conducts operational work with credit institutions on fulfillment its commitments.
“Ukrenergotrans” fulfills the functions on effective use of rolling stock, conducts the rolling stock repairs.
Staff: 13 employees.Director: Rudakov Aleksandr.Chief accountant: Kolenkov Anatoliy.
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Trust Carriage Company cargo railway transportation and transport services
MAIN SERVICES
Based on years of work experience with Ukrzaliznitsya and other market participants in cargo railway transportation, cooperating with transport services operator Ukrenergotrans, the Company offers to its clients a number of high-quality services that meet the demand for cargo railway transportation: Transportation of loads in new rolling stock which is technically and commercially
suitable, technologically effective, that substantially decreases the customer expenditures for cargo handling, excludes the stage of preliminary preparation of rolling stock and decreases the transport losses while transporting friable loads;
Complex transport maintenance provides complete and due delivery of raw materials and finished products, creates the possibility for enterprise to make a stock control;
Supervisory control for wagons and loads forwarding allows to increase the quality of planning system;
Route dispatches make it possible to decrease significantly time losses in loads delivery.
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Trust Carriage Company cargo railway transportation and transport services
COMPETITIVE ADVANTAGES The main competitive advantages of the Company are:
Long term experience and competence of management and specialists, one of the best in transport sector;
Large park of new, commercially suitable and technologically effective open freight wagons, which grows dynamically;
Perfect business - processes and technology; Well established operational relations with Ukrzaliznitsya and railroad administrations
of CIS countries and Baltic states; Market knowledge makes it possible not only to maintain a leading position for our
Company, but also expand the transport business, increasing market share for transport services, and meeting the demands of our customers in high quality services for cargo rail transportation.
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Trust Carriage Company cargo railway transportation and transport services
COMPANY IN FIGURES
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Indicator name 2005 2006 2007 Forecast for2008
Volume of Transportation, mln. Tons
4 858 6 066 9 085
Balance-sheet in th. grn (on December 31)
292 727,20 311 661.30 690 372.70 810 000,00
Income, th. grn 163 450,30 68 224.30 107 425.20 160 570.56
Net income, th. grn -4 057,70 3 546.60 19 039.10 47 982.90
Rolling stock, wagons (on December 31)
1 434 1 650 1 888 3 004
Company’s stake in the total volume of all owners of the private rolling stock
11,2% 12,2% 16%
Trust Carriage Company cargo railway transportation and transport services
COMPANY IN FIGURES (continuation) Dynamics of Balance-sheet of COMPANY
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AssetsLiabilities and Equity
Fixed Assets 228 054
-3 786
257 228
53 569
431 312
222 151
428 827
230 352 EquityVAT assets 43 170
268 32037 121
244 09663 465
255 02857 363
241 763 Long term loans
Accounts receivable for services 1 929
28 080
5 085
0
7 241
158 065
5 019
158 065 Short term loansAnother Accounts receivable 13 727
113
8 535
13 836
188 116
54 869
184 263
45 847 Another Accounts payable
Other Assets 5 847
1
3 692
160
238
260
746
191 Other Liabilities
Total Assets Liabilities and Equity
31.12.2005 31.12.2006 31.12.2007 31.03.2008
292 727 311 661 690 373 676 218
Trust Carriage Company
cargo railway transportation and transport services
COMPANY IN FIGURES (continuation)
Loan Portfolio (on April 1, 2008)
Total, th. USD - 79 106,08including:Bank “Forum” - 31 300,00Bank PIB - 12 365,94Bank “Dongorbank” - 9 084,51Bank “OTP Bank” - 10 373,89Bank “Ukrsotsbank” - 9 561,75Company “Bondline ltd” - 5 560,00AS “Trasta Komercbanka” - 848,45“Laska leasing” ltd - 11,53
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Trust Carriage Company cargo railway transportation and transport services
ROLLING STOCKThe Company constantly increases the park of its own rolling stock
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Trust Carriage Company cargo railway transportation and transport services
ROLLING STOCK (continuation)
Park structure by the year of production
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Trust Carriage Company
cargo railway transportation and transport services
PLAN FOR DEVELOPMENT
The Company plans to expand its presence in those market segments, where a new, improved technically, commercially and technologically suitable rolling stock is required and the number of which at present is highly insufficient.
In the short term, the Company will continue to invest in the purchase of rolling stock and plans to increase its number from 1 903 to 6 000 wagons by 2017. To realize this goal the Company intends to absorb investments of 244 020 th. U.S. dollars, of which: own funds:
contributions to the statutory fund 17 813,5 th. USD reinvestment of working capital 140 799,5 th. USD
borrowed funds totaling 85 407,0 th. USD
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Trust Carriage Company
cargo railway transportation and transport services RATING AND REWARDS
In 2007 based on the information from the State Statistical Committee of Ukraine, the Company won the National Business Rating among top Ukrainian enterprises in category “The leader in the economy” in industry sector “Lease of machines and equipment” (code KVED 71).
The management is rewarded with the Order “For high professional level”, information about the Company was placed in exclusive section “The leaders in the economy” in international catalog published by Trade and Industry House of Ukraine.
National Business Rating
1- The sales volume, 2 - Net income, 3- Labor productivity, 4 – Wages
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Company name Rating Number of points 1 2 3 4
Corporation “Mezhregionalny promishlenniy soyuz” 1 18 1 1 14 2
“Investment wagon company” ltd 2 28 6 10 6 6
“Peri Ukraina” ltd 3 42 2 2 22 16
“Doka Ukraina Т.О.В.” ltd 4 44 5 5 23 11
Foreign company “Krono-Osmoloda” 5 80 38 25 7 10
“Ukrspetsbud” ltd 6 97 20 20 40 17
CLIENTS AND PARTNERSClients: Alchevsk metallurgical plant (Ukraine); Аrcelor Mital Kriviy Rig (Ukraine); Dnepropetrovsk metallurgical plant named after Dzerzhinskogo (Ukraine); Alchevsk coke chemical plant (Ukraine); Treis (Ukraine); MTK (Ukraine); Resurs Komplekt (Ukraine). Manufactures of rolling stock: Kryukovskiy wagonbuilding plant (Ukraine); Stakhanovskiy wagonbuilding plant (Ukraine); Uralvagonzavod (Russia); Dniprovagonmash (Ukraine).Banks: PIB (Ukraine); Ukrsotsbank (Ukraine); OTP Bank (Ukraine); Dongorbank (Ukraine); Trasta Komercbanka (Lithuania).
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Trust Carriage Company cargo railway transportation and transport services
Trust Carriage Company cargo railway transportation and transport services
CONTACT DETAILS
Complete designation:LLC «Trust Carriage Company»
Juridical address:01033, Ukraine, Kiev, Vladimirskaya str., 69
Actual address:03056, Ukraine, Kiev, Borshagovskaya str., 97-B
Telephone/fax:+38 (044) 496 – 91 – 46
E-mail address:[email protected]
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