Our main business is the provision of freight rail transportation services. We focus on the transportation of key industrial freight including metallurgical cargoes, oil products and oil, coal and various construction materials. Our railcar fleet is deployed across the entire territory of Russia and the CIS countries. In 2011 our Freight Rail Turnover reached 110.6 billion tonnes-km. Our strongest market positions are in metallurgical cargoes, oil products and oil and coal with 10.4%2, 9.9%3 and 3.6%4 of overall freight rail transportation volumes of respective cargoes in Russia.
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Since it was set up in 2004 Globaltrans has grown rapidly, quickly establishing itself as a market leader in the freight rail transportation sector. In the last five years alone, the Group has tripled the size of its fleet, becoming the one of the largest private freight rail group in Russia by the size of Owned Fleet. Over the same period, our Adjusted EBITDA has increased fivefold. We continue to expand our business pursuing a strategy of opportunistic profitable growth.
Our Total Fleet stands at 47,580 units (as of 31 December 2011), 84% of which are owned5 by the Group. The average age of the rolling stock within our Owned Fleet is 7.1 years6, making it one of the most modern fleets in the industry. We aim to keep a balanced fleet split between gondola cars, representing 56% and rail tank cars making up 43% of the Group’s Total Fleet. Universal gondola cars are used for transportation of various bulk cargoes while rail tank cars are predominantly used for transportation of oil products and oil.
One of the cornerstones of our business model is our advanced destination and traffic management systems that enable Globaltrans to maximise fleet utilisation and decrease Empty Runs. Our logistics centre is equipped to manage the dispatch and routing of rolling stock on a 24/7 basis employing advanced information systems and providing our customers with effective, reliable and flexible transportation solutions.
Our customers demand high levels of service and excellence of execution. We have a deserved reputation for delivering reliable service and effective transportation solutions. Our partners include many of Russia’s most important blue-chip companies including leading industrial groups such as Evraz, Gazpromneft, Lukoil, Mechel, Metalloinvest, MMK, Rosneft, Severstal and TNK-BP. We seek to establish long-term partnerships with our customers, based on mutual benefit and trust. We believe that our service offering differs from those of our competitors because we offer our customers a combination of superior operational capabilities coupled with one of largest and modern railcar fleets available.
1. Global depositary receipts (“GDRs”) of Globaltrans Investment PLC representing one ordinary share each are listed and traded on the Main Market of the London Stock Exchange under the ticker GLTR.
2. Metallurgical cargoes include ferrous metals, scrap metal and ores. Company estimations based on Rosstat data; calculated as a percentage of the overall volumes of metallurgical cargoes transported by rail in Russia in 2011.
3. Company estimations based on Rosstat data; calculated as a percentage of the overall volumes of oil products and oil transported by rail in Russia in 2011.
4. Coal include thermal coal and coking coal. Company estimations based on Rosstat data; calculated as a percentage of the overall volumes of coal transported by rail in Russia in 2011.
5. Including rolling stock leased under finance leases.
6. As of 31 December 2011.