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UTLC ERA. Who are we?
New horizons
Company Profile
Joint Stock Company UTLC ERA is the first and only integrated logistics project in the Eurasian Economic Union (EAEU). This project brings together the resources and capabilities of three countries, specifically Russia, Kazakhstan and Belarus, which helps achieve the synergy of interests and create value for the economy of each country participating in the project.
Our mission
Our mission
Ten achievements in 2022
About this Report
(Minutes No. 64 dated 25.05.2023)
(Minutes No. 22 dated 30.06.2023)
Message from the General Director
I am glad to present to you the Annual Report of UTLC ERA for 2022.
Alexey Grom
Event Calendar for 2022
January
-
Participation in the development of the new customs clearance procedures for transit via Kaliningrad Region
March
-
Participation in the international economic forum of CIS member states
-
Development and approval of the “containerization” technology to be supplied to China
-
Finalization of agreements with Chinese container fleet owners on loading of empty containers arriving from EU in Belarus and Russia “without restrictions”
In Q1, the company’s geography was expanded by:
+4
locations
+44
routes
April
-
Execution of the first contract for the company’s services to be paid in Chinese yuans
-
Participation in the exhibition and business program at TransRussia 2022
-
Dispatch of the first full-length refrigerator train from China to Russia
May
-
Meeting of CCTT China–Europe–China Task Force chaired by A. Grom, Company’s General Director
June
-
Execution of the contract for supply of 1,000 rail cars
-
Participation in St. Petersburg Economic Forum
-
Participation in the pilot dispatch of a container train via the Eastern branch of the North-South International Transport Corridor as a 2PL freight operator
-
Opening of The New Silk Road: #time, #space and #existence exhibition (with the support of UTLC ERA) in Nur-Sultan
-
Initiation of the tugay wooldland restoration project in Ili-Balkhash state natural reserve, Kazakhstan (with the support of UTLC ERA)
In Q2, the company’s geography was expanded by:
+12
locations
+60
routes
July
-
Discussion of the transportation industry and transit situation at the meeting of Prime Ministers of Russia and Kazakhstan in Yekaterinburg
-
Renewal of cars traffic from the Netherlands to China
September
-
UTLC ERA General Director ranked among Kommersant’s 250 Best Top Managers in Russia
-
Participation in TransLogistica Kazakhstan exhibition and business program
-
Presentation during the business program of The 2nd "Belt and Road" Land-Sea Intermodal Transport Corridor Cooperation Forum and China-Europe Railway Express and Multimodal Transport Summit (China)
In Q3, the company’s geography was expanded by:
+6
locations
+51
routes
October
-
Participation in Integration Business Forum and in Made in Russia Forum
-
UTLC ERA confirmed its status as one of the largest Russian companies (according to EXPERT RA) and rose to the 305th position in the rating (in 2021, the company was rated 323rd)
November
-
Participation in the business program at Transport Week 2022
-
Nomination of the joint project of UTLC ERA and a partner for the Movement Formula Award in the Best Freight Logistics Solution category (the project was included in the short list of nominees)
December
-
The geography of cargo origination/termination locations expanded due to cargoes from Vietnam, Malaysia, Indonesia and other Asian countries
-
The range of transported cargoes expanded due to supply of new goods under the environmental agenda: a full-length train of 50 and 40 feet containers loaded with electric vehicles was dispatched on the Chengdu–Malaszewicze route for the first time in the company’s service
-
Participation in the business program at TRANSTEC 2022
-
Participation in the meeting of the Transport Business Dialog of the Commonwealth of Independent States
-
Participation in the closed-door round table meeting entitled PRO//Motion. 1520 – 2022 RESULTS held by Gudok Publishing House
In Q4, the company’s geography was expanded by:
+10
locations
+78
routes
Key Performance Indicators
UTLC ERA's share in China–EU–China transit container traffic
trains
Number of container unit trains
Total export traffic growth
TEUs
Traffic volume
TEUs
Export traffic volume of potassium fertilizers (a new cargo for UTLC ERA)
fold
Total import traffic growth
Operating fleet as of the end of 2022 (average daily as of December)
billion
Value of cargoes transported in UTLC ERA’s services
km/day
Average speed
days
Time in transit
,
Cargo security
2020-2022 financial performance
Business Model
Our operating model is aimed at increasing the transit traffic volumes in the 1,520 mm track gauge area with the help of such key processes as:
-
Minimizing the costs
-
Developing a competitive quotation
-
Balancing the transit routes
-
Launching new logistics services
-
Customizing transit services for new consignor groups
-
Increasing the transportation speed
Selyutin
Mikhail
Business Development and Risk Analysis Director
The Company’s Board of Directors approved the new revision of the operating model on December 27, 2021 (Minutes No. 46). It contains the following container traffic segmentation elements:
-
Traffic geography (with the specific basic and additional routes indicated and the export and import traffic routes added)
-
Scope of transportation and logistics services provided by the company
-
Pricing procedure and tariff policy
-
Shareholder subsidiaries and affiliates cooperation procedure
-
Sales channels, interfaces with subsidiaries and affiliates.
UTLC ERA provides for full utilization of the available throughput capacities and the best traffic parameters due to its technological and price advantage. Our company offers its services based on an open tariff policy applicable to all our customers, thereby ensuring a non-discriminatory approach and transparent service for any potential user.
UTLC ERA has solidified its position as an integrator of the transit transportation and logistics service components. This has enabled our smooth transition to such new segments as export and import against the general decline in such transit in 2022.
The new market realities have caused exporters to increasingly focus on our Eastern customers and consignees, to whom we offered our available rail car fleet (the so-called “broken transit”, when containers arrive from Europe to be loaded in Belarus or Russia and then dispatched to China).
Examples of routes:
-
Arrangements to ensure traffic of various cargo classes from central and eastern regions of Russia (Tobolsk, Formachyovo, Kyshtym Stations, etc.).
Operating geography
Today, company is transporting on 660 routes between more than 230 locations in Europe, China and the EAEU.
Total number of routes at the end of 2022
+233for 2022:
+223U-West,10U-East
Total number of locations as of the end of 2022
+32for 2022
Incremental Growth by Quarter in 2022
| Locations | Routes | |
|---|---|---|
| Q1 | 4 | 44 |
| Q2 | 12 | 60 |
| Q3 | 6 | 51 |
| Q4 | 10 | 78 |
| TOTAL | 32 | 233 |
Anti-Corruption Activities
UTLC ERA has absolutely zero tolerance to any types and forms of corruption.
-
This policy applies not only to the company’s employees, but also to its contractors that have business and informal relations with our company.
-
The company’s current day-to-day business operations comply with the new revision of UTLC ERA’s Anti-Corruption Policy approved by the Board of Directors on January 25, 2021.
Klimochkin
Alexandr
Security Director
The objectives of the Anti-Corruption Policy are as follows:
-
To clarify UTLC ERA management’s position to personnel regarding zero tolerance to any types and forms of corruption
-
To advise the company's managers and employees on the requirements of the Russian laws and the documents adopted by the shareholders regarding anti-corruption activities and liability for corruption offenses
-
To summarize and clarify the anti-corruption actions taken by UTLC ERA
-
To shape the anti-corruption mindset among the company’s managers and employees
-
To minimize the corruption risks associated with the company's operation.
Our managers and personnel are obliged to manage their work in strict compliance with the principles and goals specified in the Anti-Corruption Policy. In case of incidents with any signs of corruption (e.g. failure to fulfill the job duties or abuse of authority by employees and contractors), everyone shall report them to the operating anti-corruption hot line.
Security Philosophy
To avoid any damage to property, the company takes timely actions to prevent crimes and offenses along UTLC ERA’s railway routes by cooperating with the local law enforcement authorities.
In 2021, the company conducted an integrated audit to search for any IT infrastructure vulnerabilities. In 2022, we took a number of critical actions to build the information security system and to close out IB-risks:
-
We developed UTLC ERA’s Information Security Policy
-
We implemented the DLP system
-
We enhanced the information security efforts under the Checkpoint program
-
We adopted the system to monitor password compliance
-
We introduced the risk management system
All adopted programs are developed by local companies. The action plan and the established information security system comply with the requirements of the Federal Service for Technical and Export Control and the Federal Security Service.
Contractor Review System
In order to efficiently monitor the contractor operations and mitigate the economic risks, UTLC ERA has adopted the integrated contractor review system. This system includes an initial review of a contractor using publicly available and special data bases before awarding the contract and a periodic review in case of long-term contractual relations.
In both cases, a set of the contractor’s key business indicators is subject to review along with the judicial and administrative practices. The company carries out repeated reviews before extending contracts or entering into supplementary agreements.
Approved in 2022 using the contractor review system
legal entities
individual entrepreneurs
individuals
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Strategic Report
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