Mechel Signs Agreement With Russian Railways Transportation Service
April 07 2015 - 9:30AM
Mechel OAO (MICEX:MTLR) (NYSE:MTL)
, one of
the leading Russian mining and metals companies, reports signing a
new agreement with Russian Railways OAO's Center of Corporate
Transportation Services, including organization of cargo train
traffic by reserved routes with fixed arrival and departure
times.
The agreement is valid from April 1, 2015 till December 31,
2015. Russian Railways OAO will offer Mechel Group's railway
operator its services on cargo train traffic on approved schedules
on the following routes:
- from Yakutugol Holding Company OAO (part of Mechel Group) to
Trade Port Posiet OAO (part of Mechel Group, located on the coast
of the Sea of Japan);
- from Yakutugol Holding Company OAO to Port Vanino OAO (located
on the coast of the Tartar Strait);
- from Southern Kuzbass Coal Company OAO (part of Mechel Group)
to Trade Port Posiet OAO;
- from Southern Kuzbass Coal Company OAO to Port Vanino OAO.
According to the prior agreement, which was valid since November
1, 2013 until March 31, 2015, Mecheltrans dispatched some 1,800
cargo trains on fixed schedules. The overall transit time went down
by nearly 20% as compared to cargo delivery time norms. The company
was also able to transport requisite amounts of coal by a fewer
number of wagons, redirecting a part of its wagon park to other
production needs.
As Elga Coal Complex continues to develop, the company plans to
extend the practice of traffic control using fixed schedules. Cargo
trains are planned to be formed at Ulak station which is linked by
a direct railway to the Elga deposit.
"In 2014, Mechel's cargo amounted to 12% of all cargo shipped by
Russian Railways using fixed schedules. Mechel is one of Russian
Railways' major clients provided such a service. Today cargo train
traffic control on fixed schedules is a key indicator of the
quality of railways operation. This technology enables us to
efficiently distribute the load on Russian Railways OAO's
infrastructure, streamline the work of our locomotive teams,
optimize exploitation costs. This is especially important when
making sure that the load on the Baikal-Amur Mainline's eastern
part is distributed evenly, and for the development of the entire
Eastern Railway operating domain," Deputy General Director of the
Center of Corporate Transportation Services (Russian Railways OAO's
subsidiary) Sergei Kolesnikov said.
"We have a lot of positive experience in working with Russian
Railways' subsidiaries in routing our shipments and train traffic
using pre-approved schedules. In addition to improving our wagon
park's use and decreasing turnover time of our wagons, our delivery
of export cargo is guaranteed now to reach sea ports exactly on
schedule, which enables us to plan our further logistics more
precisely — such as vessel presentation, freight and preparation of
port facilities. Together with Russian Railways, we constantly work
at various ways to improve traffic management," Mecheltrans
Management Company's Chief Executive Officer Alexey Lebedev
commented.
Mechel is an international mining and steel company which
employs over 70,000 people. Its products are marketed in Europe,
Asia, North and South America, Africa. Mechel unites producers of
coal, iron ore concentrate, steel, rolled products, ferroalloys,
heat and electric power. All of its enterprises work in a single
production chain, from raw materials to high value-added
products.
Some of the information in this press release may contain
projections or other forward-looking statements regarding future
events or the future financial performance of Mechel, as defined in
the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995. We wish to caution you that these
statements are only predictions and that actual events or results
may differ materially. We do not intend to update these statements.
We refer you to the documents Mechel files from time to time with
the U.S. Securities and Exchange Commission, including our Form
20-F. These documents contain and identify important factors,
including those contained in the section captioned "Risk Factors"
and "Cautionary Note Regarding Forward-Looking Statements" in our
Form 20-F, that could cause the actual results to differ materially
from those contained in our projections or forward-looking
statements, including, among others, the achievement of anticipated
levels of profitability, growth, cost and synergy of our recent
acquisitions, the impact of competitive pricing, the ability to
obtain necessary regulatory approvals and licenses, the impact of
developments in the Russian economic, political and legal
environment, volatility in stock markets or in the price of our
shares or ADRs, financial risk management and the impact of general
business and global economic conditions.
CONTACT: Mechel OAO
Ekaterina Videman
Tel: + 7 495 221 88 88
ekaterina.videman@mechel.com
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