First Cargo Company Finds VIP Steel Client in the Urals

13.05.2009 — News

THE CHELYABINSK OBLAST.

ОАО Magnitogorsk Metallurgical Combine has contracted transportation of its products to the Chelyabinsk branch of OAO First Cargo Company. Having developed the domestic deliveries the company initiated export steel cargo transportation.

In May section steel batches were delivered from Magnitogorsk to Vladivostok, Saint-Petersburg, and Astrakhan ports, where they were forwarded to China, Canada, and Iran by sea. By the end of this month the company is planning to transport a total of 113 thousand tons of Magnitogorsk Metallurgical Combine's products to Russian and foreign customers.

From the establishment date in April 2008, the Chelyabinsk branch of the First Cargo Company transported over 4.6 million tons of cargo, and now has 10% of the railway freight market in the Chelyabinsk Oblast. By the beginning of 2011 the share may increase to 40%.

The branch management has informed RusBusinessNews that oil products account for about 70% of the cargo turnover - the bulk of it transiting for export from the Orenburg Oblast to Kazakhstan, Uzbekistan, and other CIS countries. Ferrous metals make around 20%, these are shipped from the Chelyabinsk Oblast to engineering plants and metal works in Western Siberia, the Volga region, Belarus, and Ukraine. The rest is construction materials, machines, and food.