Will Duties Hinder Timber Transportation?

30.09.2008 (18:32)

Denis Stolypin, Head of Khabarovsk branch of Transgarant tells about changes of the structure of timber cargoes transportation concerned with prohibitive duties on round timber export.

– Mr. Stolypin, did the structure of timber cargoes change when export duties are increased?

– In my opinion, there is no considerable change in the structure of wood timber export in the Far East, they can take place after custom duties increasing – by 1 January, 2009. Probably raw wood will be exported till the end of the active timber cutting season, till the May, 2009. Timber enterprises invest big means in preparation for logging season. Nowadays, large timber exporters hold active negotiations with foreign partners on ways to work effective after duties introduction. There are no considerable changes in the transportation structure.

– Several participants of the market forecast decrease of the round timber export transportation. How can transport companies reduce possible costs, for example, from idle time of special rolling stock?

– Nowadays, some Russian enterprises build large wood working plants. Several large MDF enterprises are constructed in the Far East. Thus exporters say that they have contracts on saw-timber export and operator companies will be ready to carry out new transportation.

Transgarant uses flat wagons equipped with take-off fittings for timber cargoes transportation. If transportation volume decreases these devices may be dismantled and flat wagons may be used for other cargoes transportation, for example, building or road equipment. This market is developed and there is a lack of universal flat wagons.

Changes on the market of timber transportation don’t endanger the safety of our operator business, because we use universal flat wagons which may be used for other cargo transportation.

– Is there a lack of flat wagons?

– I think that the volume of round timber railway transportation will increase by the end of the year and it will entail lack of special flat wagon. Manufacturers will try to sell maximum volume of round timber before duties increasing.

There is lack of special flat wagons during many years, but the problem has been solved through gondola cars using. However the problem of lack of this type of rolling stock became more urgent, therefore timber exporters plan to use special flat wagons.

– Do you think the volume of railway transportation of round timber for Russian buyers decreased?

– Volume of round timber transportation for Russian consumers is lower than export via sea ports and border terminals. The distance to wood working enterprises is shorter, than the distance to ports and frontier transitions. Therefore the part of cargoes will be transported in trucks. Nevertheless introduction of new wood working capacities will demand growth of loading on these enterprises. There are no large enterprises, they are constructed and they will be put into operation in third quarter of 2009. However, flat wagons will be in demand in any case.

Interviewed by Anna Nezhinskaya 
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