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New Technology to Transport Perishables

Refservice Joint Stock Company, a subsidiary of Russian Railways, intends to introduce a technology (new to the Russian market) for the transportation of perishables in special, large-capacity refrigerator containers. Refservice’s General Director, Nikolai Averkov, tells Deliver journal about Russia’s experience in the use of such containers

Nikolai Konstantinovich [Averkov], what tonnage of perishables is currently carried in refrigerator containers?
As of January 1, 2009, the volume of perishables carried in refrigerator containers stood at 558,000 tons, or 21,000 refrigerator containers. In the total volume of perishables transported by rail, 96.6% had domestic destinations as of January 1, 2009. Fish and other sea products, both perishable and non-perishable, are carried mainly to and from the Russian Far East, Moscow and St. Petersburg.

How big is the demand from freight owners for refrigerated container transport?
The growing demand for this type of transport is evident in the figures for 2005, 2006 and 2007 relating to volumes of refrigerated container transportation of perishables. The volume was 7,000 TEUs in 2005, 10,000 TEUs in 2006, 12,000 in 2007, and 21,000 in 2008. Thus, within these four years the amount of perishables transported in refrigerator containers trebled.

How is refrigerated container freight changing the transportation cost ratio in the price of the freight? At what rate will Refservice charge freight owners for refrigerated container transportation?
The tariffs for railage of perishables are stated in Schedule of Prices No. 10-01, and the shop price of the goods is determined by the market. Given that a refrigerator container and a universal one are of the same size, the transportation cost for the refrigerator container will be practically twice as much. Say, the price of fish (pollack) costs 90 rubles per kg in a Moscow shop. The transportation cost ratio in this price, given railage in refrigerator containers carried on flatcars, will be 6.7%; in a refrigerated section, 5.9%; in a refrigerator container on a flatcar not coupled with a wagon having a diesel-driven power generator, 3.8%, and in a universal container, 3.2%.
Unfortunately, the provisions of Schedule of Prices No. 10-01 do not favour companies engaged in refrigerated container transportation on flatcars coupled with a wagon having a diesel-driven power generator. In a way, Schedule of Prices No. 10-01 discriminates against the railage of refrigerator containers and favours universal container transportation.
Moreover, the level of charges is far more attractive for the transportation of largecapacity refrigerator containers on flatcars not coupled with a wagon having a diesel power generator; that is, the flatcars have autonomous diesel generators installed on them. For this reason, Refservice Company is actively developing transport of large-capacity refrigerator containers on flatcars with autonomous diesel generators.

«The level of charges is far more attractive for the transportation of large-capacity refrigerator containers on flatcars, the flatcars have autonomous diesel generators installed on them. For this reason, Refservice Company is actively developing transport of large-capacity refrigerator containers on flatcars with autonomous diesel generators»

Table Showing How Transportation Charges per Ton of Fish Carried via the Vladivostok-Moscow Route (9,184 km) Depend on Rolling Stock Type

Pen ton
Rolling stock loaded emrty total
40-foot containers on a string of 12 flatcars coupled with a wagon having a diesel-driven power generator 3 446 2 593 6 039
Five-wagon section in refrigerated rolling stock 3 129 2 156 5 284
40-foot refrigerator containers on flatcars not coupled with a wagon having a diesel-driven power generator 1 969 1 482 3 451
40-foot universal containers 1 734 1 224

What technology is Refservice Company developing in order to expand its business of transporting large-capacity refrigerator containers on flatcars with autonomous diesel generators?
In 2008, Refservice, jointly with the firm «Russian Container Yard», developed a technology to utilize autonomous diesel-driven power-generating units designed to supply electricity for refrigerator containers while in rail shipment. A power-generating unit consists of a diesel generator, its transport device, and a satellite-aided monitoring gadget.
The diesel generator is fixed to its transport device placed on a flatcar. After that, with the help of a connecting cable, the autonomous diesel generator is linked to the refrigeration unit of the refrigerator container. Then the monitoring gadget, which is fixed on the refrigeration unit, is activated. The monitoring gadget watches the container’s refrigeration unit as long as the container is in shipment, and also checks out the fuel expenditure of the diesel generator.
The next few months will see massive transportation of large-capacity refrigerator containers on such flatcars of Refservice Company.

To what extent will the use of refrigerator containers broaden Refservice Company’s capabilities?
The volume of refrigerated container freight, as I said, has been growing every year. That’s primarily because the container can be used in more flexible delivery schemes, and thus it has been gaining on the refrigerated wagon. While the tariff for carriage in a refrigerated wagon and in a refrigerated container may be the same, the container is more advantageous, as it can be used for smaller shipments, does not require repackaging of the goods, allows the goods to be transported under a single seal, and it is easier to handle.
It is often more convenient for clients to send food supplies in small consignments. Refrigerated container freight, however, cannot entirely replace classic transportation of perishables in refrigerated wagons. Rail carriers have to take into account the big market players’
plans to build huge cold-storage terminals capable of warehousing hundreds of thousands of tons of goods. These terminals will be located at key transportation points of the country. Refrigerator containers will be needed for short hauls, while large consignments will be transported to these terminals in refrigerated sections.

«To promote refrigerator-container railage on Russia’s national railway grid, Refservice and TransContainer have jointly suggested to the parent company (Russian Railways) that a separate company be established»

To what extent has Refservice’s need for refrigerator containers been met, and how many such containers can it afford to buy?
Russian Railways has confirmed that it may use autonomous diesel generators on Russia’s railway grid. Accordingly, it has signed a contract with private company «Russian Container Yard» for the acquisition of 60 such generators in 2009.

Will Refservice set up joint ventures to carry out projects to use refrigerator containers?
One of the basic tasks in restructuring the railways is to promote innovation and create new products. One such product in Russia and other CIS countries is the service to transport perishables in refrigerator containers. In view of the fast growth of this mode of transportation elsewhere in the world, because Russian private operators have been stepping up work in this direction over the last four years, and since Russia’s fleet of refrigerated wagons
has become obsolete, transportation of perishables in refrigerator containers by means of unmanned operations appears to be a promising business.
To promote refrigerator-container railage on Russia’s national railway grid, Refservice and TransContainer have jointly suggested to the parent company (Russian Railways) that a separate company be established, with Refservice and TransContainer as the founders.
As part of its charter capital, the new company will get the machinery needed for starting transportation (couplers, wagons with diesel power generators, and flatcars) from the founders. TransContainer owns a network of terminals and a fleet of flatcars, and it could put together strings of platforms to carry refrigerator containers, guarantee logistics support for the new company, and transfer to it a fine-tuned technology for container transportation. For its part, Refservice could offer the new company new strings of flatcars, a client base and the technology for handling perishables. The synergy emerging from this cooperation would help the new company master the rail container transport business, creating the prerequisites for its fast growth.
Interview by Leonid Grigoryev

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Гость, 07.08.2010 13:29:30 QUOTEИмя
The tariffs for railage of perishables are stated in Schedule of Prices No. 10-01, and the shop price of the goods is determined by the market. Given that a refrigerator container and a universal one are of the same size, the transportation cost for the refrigerator container will be practically twice as much. Say, the price of fish (pollack) costs 90 rubles per kg in a Moscow shop. The transportation cost ratio in this price, given railage in refrigerator containers carried on flatcars, will be 6.7%; in a refrigerated section, 5.9%; in a refrigerator container on a flatcar not coupled with a wagon having a diesel-driven power generator, 3.8%, and in a universal container, 3.2%.
Unfortunately, the provisions of Schedule of Prices No. 10-01 do not favour companies engaged in refrigerated container transportation on flatcars coupled with a wagon having a diesel-driven power generator. In a way, Schedule of Prices No. 10-01 discriminates against the railage of refrigerator containers and favours universal container transportation.
Moreover, the level of charges is far more attractive for the transportation of largecapacity refrigerator containers on flatcars not coupled with a wagon having a diesel power generator; that is, the flatcars have autonomous diesel generators installed on them. For this reason, Refservice Company is actively developing transport of large-capacity refrigerator containers on flatcars with autonomous diesel generators.
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