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Press officeNewsFreight One Extended Contract with SUEK till 2021

Freight One Extended Contract with SUEK till 2021

12 february 2018

Under the terms of a new long-term contract between Freight One (Freight One) and SUEK, Freight One will carry out transportation of the products of the coal group enterprises in gondola cars in the amount of from 700 to 900 thousand tons per month.

"Long-term after-sales service contracts are one of the most effective tools for the successful development of the operator's business. Regardless of any market changes, they guarantee availability of a stable cargo base for the operator and provision to the consignor of rolling stock on mutually beneficial pay scale provision. Over the years of cooperation with SUEK, we have transported more than 50 million tons of coal and are ready to provide logistics needs of the partner in the future", said Oleg Bukin, the CEO of Freight One.

One of the key conditions of the new contract is the attraction of  the Freight One’s gondola cars with increased lift capacity of 75 tons and body space of 94 cubic meters for loading, which will allow to increase the volume of coal export with less resources, including during periods of seasonal shortage of access to the ports.

"For SUEK, as the largest shipper on the Russian Railways network, predictability and stability of the rail cars delivery is fundamentally important. The daily coal production averages 300 thousand tons, and the loading at the Company's enterprises - 3,400 cars. To solve such large-scale transport tasks, we attract the most reliable of our partners only. SUEK and Freight One have developed commercial and technological mechanisms for solving all possible crisis moments over the years of cooperation. The new contract will allow the partners to guarantee the volumes and reliability", said Denis Ilatovsky, the Deputy CEO of SUEK.

The after-sales service contract between Freight One and SUEK was signed in 2014. It provided for the coal haulage in the Freight One’s gondola cars from all the Russian manufacturing sites of SUEK in domestic and international railway communication.

For reference: JSC Siberian Coal Energy Company (SUEK) is one of the leaders of the world's coal industry and the largest coal company in Russia; it supplies coal to more than 1,500 partners in Russia, as well as to the markets of the Atlantic and Asia-Pacific regions through its own developed sales network. The company operates 3 own ports and a park of gondola cars. In 2017, the volume of SUEK coal production exceeded 107 million tons. The company operates a fleet of cars for more than 37,000, which is about 75% of the transportation demand.