CARGO BUSINESS 3-09.indd - ZSSK Cargo

DP 8215 - 8218 (Fee for addition of a wagon of a contractual wagon
keeper) – fee reductions of up to 70%, in case of total exemption
from RIV wagon - rental rate = 0 EUR,
private siding fees with no fee increase,
other additional charges without the increase.
Next year, inflation is anticipated at 2.5% (Harmonized Index of
Consumer Prices - HICP Source: IFP of the Ministry of Finance of the
Slovak Republic) and for the following years, the inflation should be
over 3.0%. Although the expected growth of HICP for the upcoming
year is reflected in TR1, this growth does not have to be necessarily
reflected in real realization prices within the specific contracts.
Trade policy of ZSSK CARGO for 2010
It should be mentioned that at the time of already one year persisting
global economic and financial crisis, the generalization of certain
rules in trade is almost impossible and would probably be even
counterproductive. Despite this, our effort is to create such rules in
transport, tariff and ultimately in pricing area for our customers, which
would enable them to clearly and effectively define and plan their
transportation costs. It will be very important to transparently present
and explain these rules and conditions to the customers.
Even with regard to sharp decline in transportations, resulting in
insufficient utilization of capacities of regular trains, transition of
individual transportations from rail to road due to price dumping, and
also with regard to the change in transportation flows due to reduction
in commodity prices in world markets and so on, the ZSSK CARGO
price policy for 2010 shall be based on a special approach to each
customer and each contract.
With regard to the diversity of transportation and tariff conditions in
individual countries - with national as well as with private operators,
the end customer relies on services provided by the forwarders, who,
in this chain, should provide an added value in the form of provision of
all necessary matters.
Unfortunately, just at a time of crisis, the year 2009 is evidence of
that, in many cases, the forwarders are only given a position of price
negotiators, without necessary added value and with an objective
to conclude a contract only by means of low-price. This has caused
deformations of certain transport routes, with lack of basic logics.
Contractual system remains generally the same
Contractual system, under the terms of Contract on conditions of
freight transportation and Price Agreements, shall be retained,
just like the possibility to conclude a price agreement for the entire
transport journey (the so-called ZF and SA agreements). Also in
2010, we are offering our customers several alternatives of paying for
services - advance payments, credit transfers and direct collections -
each with a different length of invoice maturity. In financial year 2009,
ZSSK CARGO has offered its customers the possibility to conclude
the contracts for two or more years in order to mutually stabilize and
benefit from business contracts and that in two alternatives:
- Fixed price agreed upon for several years,
- The price agreed for each year individually.
Price policy
In the previous part, I mentioned the increase in tariff rates.
However, it does not necessarily have to be reflected in realization
prices in contracts. Each contract will be assessed by ZSSK CARGO
individually with respect to its parameters and the specific prices
for transportation will be adjusted accordingly. We will take into
account several factors. These will certainly include the stability of
transportation, prospect for the following period, used wagons for
transportation, utilization of capacities in return run, cooperation up
to now, financial and payment discipline, and so on.
Projects and news
This year, despite unfavourable situation, ZSSK CARGO has completed
a number of already existing projects and activities that shall enhance
the performance of transportation and transport processes of the
company and shall expand the portfolio of offered services. I must
mention new, eagerly anticipated wagons for transportation of 90-foot
containers and swap bodies.
Despite reduced demand for these wagons at present, we are
expecting the re-growth of interest in transportations of 40 and
45-foot containers. Also in the near future, we are expecting the
strengthening of wagon series Falns, which is of great importance
mostly for transportations of coal, slag, limestone, gravel, sand and
so forth.
We hope that this year we will be able to launch the operation of
a rotary tipper for transhipment of bulk substrates, which is a project
of a subsidiary company established by ZSSK CARGO and our logisticforwarding
partner.
We expect that by launching of this top quality equipment, we will
increase the transhipment capacity of bulk substrates in East-Slovak
Transhipment Yards by approximately 50%. It should be mentioned
that within this subsidiary, a new thawing plant of iron ores has been
in operation for almost a year. We are also nearing the reconstruction
completion of re-pumping complex in the transhipment yards in Čierna
nad Tisou, where we are expecting significant strengthening of repumping
process of chemical and oil products.
In order to strengthen the company’s activities abroad, we have
started homologation of our locomotives for Polish and Hungarian
infrastructure. In intermodal transport, apart from launching
of new wagons, we are promoting cooperation with Russian
national operator of combined transport TransContainer, who has
rented a combined transport terminal in the long term. From this
cooperation, we are expecting the opening of transportation routes
for transportation of containers to the Russian Federation. ZSSK
CARGO also prepared some interesting price instruments to promote
the transportations in direction north - south and back, as well as
a mutual global price of ZSSK CARGO/ČD Cargo in direction east -
west from the border crossings with the Ukraine to Czech/German
crossings.
Another matter of interest is support of transportations to Romania
via Čierna nad Tisou by normal gauge. We have also prepared the
instruments to support the prices for transportations of foodstuffs,
building materials and wood in domestic transport. In addition to this,
we have to mention advantageous tariffs for transportations carried
out to Slovak river ports.
2009 is a year of major changes to which we must respond and adapt
our strategies in this certainly difficult period. This unusual period
requires unconventional approaches. What is the rule today, was
unthinkable a year ago.
There have been several major mergers in Europe. These will, more
or less, have an impact on transportation market (SNCF Fret/ITL,
RCA/MÁV Cargo, DB/PCC, DB/EWS, OKDD/Czechofracht...) and it is
realistic to expect that despite a slowdown of further mergers during
the crisis, the year 2010 could be another year of significant changes.
ZSSK CARGO has an ambition to fight for its position in the market
and not only maintain it, but also further strengthen its position by
means of maximum growth in number of satisfied customers. I believe
that transportation and price terms settled for the following period will
increase confidence in our company; that our customers will remain
loyal and we together will achieve satisfactory results and higher
volumes of goods transported by rail.
Ján SIMČO
Member of the Board of Directors
and Head of Trade Division of ZSSK CARGO