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The volume of bulk-oil and chemical goods transportation is growing persistently, the demand for their transportation is increasing accordingly. However, are operators ready to service additional goods traffics? The interview with Alexander Fokin, Director General of Spectransgarant LLC, tackles this issue.

Structured transportation

- Alexander, Spectransgarant is a member of Rail Garant Group. What is the Company’s rank in the common structure of the Holding?

- STG is one of the main companies of Rail Garant Group that is a large Russian operator consolidating railroad assets. I would like to define more precisely that the consolidation implies the reservation of specialization for the companies, which allows structuring Group’s transportation segments clearly. So, STG is engaged in the transportation of bulk chemical goods, liquefied hydrocarbon gases and petrochemicals in tank containers and tank cars.

- What trends in rail transportation of bulk-oil goods would you like to notice today?

Since the beginning of the year 2010, the increase of bulk-oil goods transportation volume is observed in the market. However, a considerable part of that is due to pipelines. In addition, there is one more feature consisting in raising standards for rolling stock used for petrochemicals transportation. Concerning participants of the bulk-oil transportation market, we do not see here any global changes. The distribution of transportation volume between operators is not changes significantly.

- How do you assess the niche STG occupies today in the rail transportation market?

- Currently, STG’s operational rolling stock exceeds 4,000 rolling stock units (1,980 tank cars, 1,292 tank containers and 921 container platforms). Until the end of the year, the tank container rolling stock will grow by at least 500 units, which will entail the increase of the container platform rolling stock intended for tank container rail transportation. Our main activities were and are, as before, the transportation of bulk goods in tank containers. We would like to remind that STG is one of the first Russian companies that started transporting liquefied hydrocarbon gases (LHG). Now, it remains a leader in the transportation of LHG in tank containers. Today, our main task is to maintain and increase our leadership. Concerning the transportation of bulk chemical goods (it is relative young transportation activities for us), we are planning to come to the fore in the liquid chemicals transportation market.

- Is there shortage in rolling stock required to transport oil and petrochemicals? Do you not plan to replenish your rolling stock this year?

- Yes, shortages in rolling stock are typical again in the oil and petrochemical transportation market, which is conditioned by the retirement of inventory rolling stock cars. According to our forecast, shortages will increase until the end of the year due to the seasonal decrease of petrochemical traffic by river and water transport, and then the main lead will be borne by railways. The launch of refinery and petroleum chemical plant complexes will also entail rolling stock shortages. So that until the end of the year 2010, STG plans to increase rolling stock up to 2,892 tank cars. Plans are not limited to that: purchasing tank cars will continue also next year. Today, the Company uses new higher capacity tank cars (85 m3, manufactured in 2010) to transport petrochemicals, which, undoubtedly, is a STG’s competitive advantage in the market: customers do prefer high capacity rolling stock.

- What additional services does the Company render?

- Besides the main services on the transportation of petrochemicals, liquefied gases and leasing operational rolling stock, STG renders a range of auxiliary services claimed for by customers. Among them, one can single out the approval of additional normative documents, technical inspection of tank containers, supply of spare parts, consulting on technical issues, organization of scheduled and depot repairs.

We are ready for innovations

- STG carries out transportation across Russia, CIS countries and abroad by rail, motor, sea and river transport. Please tell us, when is it preferably to choose tank cars, and when is it preferably to choose tank containers?

- The main advantage of tank containers is that they maintain the goods quality during all the transportation period. The use of them is especially important with the multimodal transportation due to an opportunity to move tank containers from one mode of transport to another without the transshipment of product.

- We would like to know about stop and safety valves installed on tank containers. Why did you decide in favor of the Fort Vale product?

- Having significant experience of the tank container operation for the LHG and petrochemicals transportation, we have faced a range of problems, which enforced us to tackle this issue. Today, no one Russian plant manufactures stop and safety valves for tank containers for the transportation of bulk petrochemicals, though it is very important. There are similar valves fabricated by domestic manufacturers and intended to transport LHG by tank container fleet. However, it leaves something to be desired regarding reliability and repairability. So we have paid our attention to Fort Vale company that is an acknowledged world manufacturer of stop and safety valves. At the same time, the price for product fabricated by this company taking into account delivery costs for shipment in Russia were not higher than Russian’s analog prices. STG carried out the first delivery of Fort Vale valves in 2008. The experience was successful, and delivery scope increased in 2009-2010. Valves were delivered to manufacturers of gas tank containers. At the same time, STG became the largest consumer of Fort Vale valves, which was noticed by Kevin Singh, sales manager of Fort Vale Ltd, during his visit in Russia.

- How is flexible pricing important in the transport service market and customized approach?

-Qualitative service supposes rendering various services. From time to time, we receive requests for the transportation of goods to a region, where our Company have not delivered goods yet. In these cases, the bargain financial results are not always understandable, and the Company is compelled to risk when building up new logistical plans. However, we are ready for innovations. Therefore, we are searching for such solutions, which are suitable for both parties. A customer receives the required services, and we expand our market presence. Therein lays the STG’s pricing flexibility and customized approach.

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