People as the Foundation
clear history

Operating Performance

In 2022, UTLC ERA operated and developed the container transit traffic in Kazakhstan, Russia and Belarus.
UTLC ERA service profile (TEU)

Share of provinces in 2022




Deputy Director of Account Settlement Control and Production Analysis Department, Commercial Directorate

UTLC ERA’s Traffic Volume and Balance Details
In 2022, the traffic volumes declined in both directions.

Mean Speed and Train Marshalling

In 2022, the mean speed of transit trains in the 1,520 mm track gauge system was 816 km per day. The total travel time as of the end of 2022 was 6.69 days (2.99 days in “KTZ-Freight transportation” LLP system, 2.82 days in JSCo "RZD" system and 0.88 days in Belarusian Railway system.
km per day
The mean speed of transit trains in the 1,520 mm track gauge system
Transit Train Mean Speed Variation in UTLC ERA’s Service
in 2020 to 2022
The rail car travel duration is mainly affected by the container unit train time in transit. Over the past three years, the train travel time has been increasing.
Train delays due to gusts of wind were recorded in the first and fourth quarters of each year. The situation was aggravated by the container unit train transfer limitations imposed by China due to COVID-19 prevention measures. As the issue of container unit train transfer in the Europe–China direction was being addressed, our company also faced a number of infrastructure limitations.
Variation of Container Unit Train Time in Transit in UTLC ERA’s Service
in 2019 to 2022
In 2022, the average daily number of trains in transit was 14 trains. The growth in the average train load up to the average annual value of 117 TEUs can be viewed as a technological driver that enables to optimize the costs and to attract larger cargo volumes.
Fleet Formation:

The key to traffic volume growth is the availability of the necessary rolling stock capacities for large containers. In 2019 to 2022, we significantly expanded our fleet to meet the growing demand.



Head of Account Settlement Management Section, Commercial Directorate


rail carsfleet managed by UTLC ERA
as of the end of 2022

It is crucial to avoid any deficit or surplus, which can be achieved by regularly assessing the current needs.

We review multiple indicators, including:
  • Predicted traffic volume
  • Rail car turnaround
  • Lack of China–Europe and Europe–China cargo flow balance
  • Share of integrated XL-trains
  • Traffic volume in optimization directions
Taking into account the growing traffic volume, we have been using an efficient method to optimize fleet utilization since 2017, namely the long container train marshalling technology (XL-trains), which becomes increasingly relevant every year. The company regularly conducts a comprehensive rail car review to identify the weak links in the traffic process and to take appropriate action.
per month
Estimated fleet optimization due to XL-trains
Up to 2019, the company acquired its fitting platform fleet mainly by engaging the rolling stock on a trip-to-trip basis. The transfer to the rental and financial leasing approach was caused by the significant traffic volume growth and the resulting need to promptly expand the fleet (by 1.5 times in the first half of 2020). Other drivers include a strong market deficit of fitting platforms in late 2018 to early 2019, the risk of main contractors withdrawing their fleet from the trip-to-trip involvement process and the significant platform rate growth.
The leased fleet operation experience in 2019 to 2022 has demonstrated that rental and financial leasing are cost effective options.

XL-train Quantity Profile, trains

The company has eventually established the most convenient rail car fleet structure based on the engagement types. By late 2022, the percentage of rented and leased platforms was 62%, which helped utilize the traffic resources with the minimum risks and in the most efficient way while ensuring the maximum flexibility. The rented and leased fleet is the guaranteed fleet to support the rolling stock traffic volumes. Should the volumes change, the company resorts to “spot” engagement/return of the fleet under the fleet engagement contract on a trip-by-trip basis.
obtained via leasing in the first half of 2022

Moreover, the rail car ownership on a rental and leasing basis enables:

To monitor the timely fleet maintenance
To perform traffic operations
that require the availability of the OKPO code in the rail car fleet automatic data bank
To make prompt decisions
regarding the rolling stock utilization without the rail car owner’s consent
Structure of Average Daily Operating Fleet (%)
The average daily rate for rail car engagement including the operating costs reduced by 8% during 2022 as compared to 2021.
In 2023, it is planned to acquire 200 additional platforms on the financial leasing basis. The required quantity of fitting platforms may also be rented from the market or engaged on a trip-by-trip basis.
Customer Portfolio

A number of factors drove the active growth of UTLC ERA’s customer portfolio in 2022. They include the high reliability, service quality and customer support levels.


Attracted for integrated services year to date


New customers under direct contracts



Deputy Head of Customer Service Section, Commercial Directorate


China–Russia Traffic Development

In 2022, the cargo traffic volumes on the China–Russia route in UTLC ERA’s services demonstrated an upward trend.
The need for alternative logistics chains and payment mechanisms, e.g. settlements in Chinese yuans, increased the demand for traffic operations in this direction among the company’s customers.
contracts in yuans
Concluded in 2022
trains and 3,082 TEUs
Traffic volumes under these contracts
A total of 26 various destination stations operated by JSCo "RZD" were engaged in 2022, which is twice as many as previously. The greatest contributors to the traffic volume growth were the stations of the Moscow Railway Hub. The volumes reached 130,564 TEUs in 2022, and 42 UTLC ERA’s customers used the service in this direction.

Growth of the total traffic volume from China to Russia by 2021

Case Study

Refrigerator Traffic

UTLC ERA in cooperation with one of the partners launched a service to dispatch full-length refrigerator trains from China to Russia via the Kazakhstan–China border.
Dispatched under the special temperature conditions
Transportation of quick-frozen products (tuna, cod, butterfish, pollack, seafood cocktail, etc.) and frozen fruit and vegetables (mango, apricot, peach, strawberry, black currant, etc.) is subject to the specific requirements. Such cargoes require the application of the direct transfer technology to minimize the time spent at the border crossing points, as well as prompt decisions should any refrigerator equipment fail en route. For instance, these decisions may be related to access of repair crews for inspection in order to perform minor repairs or to energize the equipment.
In this regard, the well-managed joint efforts with one of the partners should be highlighted, which helped minimize the time spent by the cargo at the border crossing points. As a result, we performed well in terms of total time in transit, which is essential for perishable cargoes. The average time in transit for refrigerator traffic was 15 days, with the minimum time reaching 10 days on the Wendeng–Dostyk–Selyatino route.

Paperless Traffic:
Innovative Development

We are an integration company in the 1,520 mm track gauge area, which is actively engaged in developing and introducing digital technologies on its routes. Acknowledging that the digital technologies will give the greatest competitive edge to logistics companies in 2023 to 2024, UTLC ERA continues to look for the best solution
digital traffic support in the 1,520 mm track gauge area.
establishing a conveyor digital infrastructure with the trusted information environment for various traffic process participants.
generation of electronic transit declarations based on electronic shipping documents; interfaces with EAEU customs services; transfer of electronic shipping documents to other traffic stakeholders.
Expected outcome
the project will help achieve full digitalization of both the traffic process and the state control at the external borders in the EAEU.
Digital Freight Forwarder
Implementation of this project may potentially demonstrate to the partners in Europe and China that the Eurasian digital infrastructure is ready to shift to state-of-the-art technologies and make the Eurasian rail corridors more attractive.
We believe this approach is the most reasonable in the current political and economic situation
Main Digital Development Areas



Head of Information System Support Section


Internal Business Process Automation

In 2022, the company kept developing its internal information computing system functionalities, including the following:

  • Development and commercial launch of the calculation and accounting functionalities in the rate system for the company’s customers

  • Development and pilot launch of the functionalities to reconcile mutual accounts with co-contractors

  • Optimization of the en-route rail car uncoupling recording mechanism to enable accurate calculation of the consumed services for transit container unit train tariff payments

  • Automation of the company’s business unit processes, upgrade and optimization of various system algorithms, including generation of certificates, integration with related systems, generation of traffic requests and invoices, etc

Corporate Website

We are ready to launch the updated corporate website with a new fully functional personal account for UTLC ERA’s customers, which includes the traffic cost calculation, traffic request submission and recording, traffic tracking and monitoring, and mutual settlements.



The company cooperates with carriers to address the utilization of e-waybills and electronic shipping documents for container traffic on UTLC ERA’s routes. The Electronic Shipping Documentation and Data Conveyor Project is currently pending approval. It is intended for digital support of traffic operations in the 1,520 track gauge area and information interfaces with the LOGINK national digital platform in China.

Maintaining Our Achievements



Director of Financial and Economic Department


Financial Overview

Despite the significant aggravation of the geopolitical and macroeconomic situation in 2022, which resulted in an overall decline in economic activity and cargo traffic volumes, along with the continuing epidemiological restrictions in China early in the year, UTLC ERA succeeded in maintaining its volumes on the principal routes at the levels achieved in 2021.

This was possible due to the expansion of the additional route list, keeping the rates for our customers at the 2021 level on the basic routes and other actions taken by the company to attract cargo flows and reduce the net traffic costs. This improved the company’s cost efficiency as of the end of 2022.

The accelerated traffic volume recovery following a decline in the second quarter of 2022 enabled a budget adjustment at the end of the first half of 2022 to reflect the improvement of all main production and financial performance indicators as compared to the budget adjustment at the end of the first quarter of 2022. UTLC ERA’s adjusted budget targets were exceeded by 6.0% in terms of gross profit and by 15.5% in terms of net profit.

Financial Performance Profile, 2020 to 2022, million rubles


Out company’s gross revenue for 2022 was 55,577 million rubles, which is 9,274 million rubles or 14% less than last year. The revenue for 2022 is exclusively made up of transportation and freight forwarding service revenue mainly nominated in US dollars.

The revenue reduction is primarily caused by the reduction of the average annual US dollar exchange rate in 2022 by 7% as compared to 2021 (68.58 rubles in 2022, 73.66 rubles in 2021), because the revenue is nominated in US dollars; another reason is volume re-allocation by increasing the percentage of low-cost traffic.

UTLC ERA’s Revenue, 2020 to 2022 (million rubles)

Cost of sales

UTLC ERA’s cost of sales as of the end of 2022 was 47,765 million rubles, which is 9,125 million rubles or 16% lower than the cost of sales in the previous year. The cost of sales for 2022 is exclusively made up of transportation and freight forwarding service management costs.

The reduction in the cost of sales is primarily caused by the cost optimization actions and the reduction in the exchange rate of the principal cost currencies as compared to 2021.

UTLC ERA’s Cost of Sales, 2020 to 2022 (million rubles)


Cost of Sales Structure in 2022 (%)

The fees paid to infrastructure owners in 2022 included in the cost of services amounted to 81% or 38,459 million rubles. The total infrastructure fees actually paid in 2022 reduced by 15.5% as compared to the actual total amount in 2021, which is comparable with the total net cost reduction due to the cost optimization actions and the reduction in the exchange rate of the principal cost currencies as compared to 2021.

Miscellaneous significant costs, which make up 10% of the net cost, are the costs for the managed rail fitting platform fleet, including the operation and amortization of the right of use asset (platforms allocated on the financial leasing basis). Starting from mid-2019, the company expanded the fleet under its management by adding rented and leased platforms. As of the end of 2022, the rented fleet made up 33%, while the leased fleet made up 31% of the company’s total operating fleet.

Due to the increasing portion of the fleet acquired on the financial and operating leasing basis, as well as the adoption of Federal Accounting Standard 25/2018 – Rental Accounting starting from 01.01.2022, the company succeeded in additionally optimizing its fitting platform fleet acquisition costs in its net cost structure in 2022.

Gross profit

million rubles

UTLC ERA’s gross profit in 2022, which is 2% less than in 2021.

The gross profit as of the end of 2022 amounted to 7,812 million rubles, which is 149 million rubles or 2% less than in the similar period of the previous year. However, the gross profit cost efficiency grew in 2022 as a result of the proactive net cost reduction due to net cost optimization, decreasing average annual US dollar exchange rate and the adoption of Federal Accounting Standard 25/2018.

UTLC ERA’s Gross Profit for 2020 to 2022 (million rubles, including cost efficiency), million rubles

Management costs

UTLC ERA’s management costs for 2022 amounted to 1,351 million rubles, which is 16% more than in 2021.

Management Cost Structure in 2022

Profit on Sales



Deputy Chief Accountant — Department Director


million rubles

UTLC ERA’s profit on sales in 2022, which is 5% less than in 2021.

The profit on sales reduced due to the reduced gross profit and the increased management costs.

UTLC ERA’s Profit on Sales for 2020 to 2022, including cost efficiency (million rubles)


million rubles

UTLC ERA’s EBITDA for 2022, which is 761 million rubles or 11% less as compared to the previous year

EBITDA is calculated on the basis of Financial Statement Form 2 according to the Russian Accounting Standards as profit before amortization, interest and exchange rate difference as part of the miscellaneous revenue and costs.

EBITDA, including cost efficiency (million rubles)

Net Profit

million rubles

UTLC ERA’s net profit for 2022, which is 160.6 million rubles or 3% more than in 2021.

Net Profit, including cost efficiency (million rubles)

IFRS Financial Statements

UTLC ERA’s IFRS Financial Statements include the company’s performance indicators as of December 31, 2022.


million rubles


UTLC ERA’s revenue as of the end of 2022 reduced by 15% or 9,470 million rubles as compared to 2021 and amounted to 55,375 million rubles.

Gross profit

million rubles


The company’s gross profit was equal to 7,682 million rubles, which is 11% or 970 million rubles less than in 2021.

Operating profit

million rubles


The operating profit was 6,327 million rubles, which is 6% or 407 million rubles less than in 2021.

Net profit

million rubles


The net profit reached 4,761 million rubles, which is 4% or 208 million rubles less as compared to the previous year.

Net debt

million rubles


The net debt was equal to 2,742 million rubles, which is 12% or 390 million rubles less than in 2021. The net debt reduction is related to the increase in cash and cash equivalents.

Caring for Business Climate

We make efforts to shape the favorable regulatory environment to promote the high service quality.



Deputy Head of Administration


In 2022, the company’s representatives actively participated in the operation of working bodies and task forces under the Ministry of Transport, the Ministry of Finance, the Federal Customs Service and other federal executive bodies of the Russian Federation, the Eurasian Economic Commission, as well as the platforms provided by business associations such as the Russian Union of Industrialists and Entrepreneurs, the Russian Chamber of Commerce and Industry, the Eurasian Union of Rail Freight Traffic Participants, the Digital Transport and Logistics Association, the National Freight Forwarders Association of the Republic of Kazakhstan, the Coordinating Council on Trans-Eurasian Transportation, the Organization for Cooperation between Railways.

This helped pursue and promote UTLC ERA’s interests in multiple critical areas in 2022:

  • Amend the Resolution adopted by the Board of Directors of the Bank of Russia dated 25.03.2022 regarding establishment of the total amount of individual transactions for residents and non-residents (limitation of advance payments to 30%) to the extent related to exclusion of transportation and logistics services provided to manage and carry out rail transportation operations

  • Incorporate the company’s position in the development of the draft recommendation by the Eurasian Economic Commission Board On Mixed Traffic Management in the Eurasian Economic Union and Proposals to Improve the Container Traffic Laws of the Eurasian Economic Union

  • Enable the multiple use of a foreign container (during the temporary import period) for domestic traffic within Russia. Federal Law No. 92-FZ dated 15.04.2022 On Amendments to Certain Legal Acts of the Russian Federation was adopted

  • Propose to amend Article 145 of the EAEU Customs Code in order to simplify the readdressing procedure for goods transported by rail under the customs transit procedure. The Russian Ministry of Finance is currently making efforts to duly approve this initiative

  • Reduce the number of inspections made by customs authorities at the rail border crossing points. The corresponding resolution of the Russian Federal Customs Service is incorporated in the customs risk management system

  • To draw the attention of the Russian customs authorities to the need to eliminate the formalist approach to the withdrawal and seizure of goods. This matter was discussed at the meeting of the Standing Committee of the Expert Advisory Board for Customs Policy Implementation under the Russian Federal Customs Service

  • Incorporate the company’s position in the development of amendments to the EAEU Customs Code regarding the simplified transfer of foreign containers across the EAEU customs border. The Eurasian Economic Commission is currently developing the draft minutes to introduce the corresponding amendments into Appendix No. 1 to the Treaty on the Customs Code of the Eurasian Economic Union (dated 11.04.2017)

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