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Transportation as a Part of Production Cost of Mining & Steelmaking Companies

On November 13, the conference “Metallurgy and Cargo Transportation” took place in Moscow. A representative of Metal Expert Consulting has presented a report “Transportation as a Part of Production Cost of Mining & Steelmaking Companies, Prospective Changes in Trade Flow: Influence of Market Conditions upon Volumes and Geography of Shipments”.

Importance of mining and metallurgical cargoes for rail carriers cannot be overestimated, which is proved by our report presented at the conference:

Traditionally, the market players actively discuss local problems of the industry at transport conferences. However, these problems are minor against a possible reduction of trade flow.

We expect that rail carriers will suffer greater from this reduction than any other carriers!

Today, all the market participants need to take coordinated steps to minimize the impact of adverse conditions in raw materials’ and steel products’ markets.

It is the need in cooperated activities aimed to raise competitiveness of Russian products in domestic and export markets that we have tried to convey to the participants of the conference.

If the market players fail to optimize the work of transportation industry and cut transportation costs, Russian exports will inevitably decline and the railway transportation will decline even more.

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