In 2020, the total volume of railway transportation of Lemtrans amounted to 64.53 MT of cargoes of various types. Coal and iron ore raw materials made up the bulk of the cargo transported in 2020. The largest growth by the end of the year was in transportation of iron ore. In particular, the volume of iron ore transportation made 24.65 MT, and coal made 24.39 MT. By the end of 2019, the transportation of these types of cargo made 16.52 MT and 23.44 MT, respectively. The volume of loading of ferrous metals was increased by 13.7%: 8.29 MT (7.29 MT in 2019), coke was increased by 17,9% – 2.62 MT (2.23 MT in 2019). The volume of flux transportation amounted to 3.07 MT (2.33 MT in 2019).
“Sustainability and profitability of transportation require systemic work to improve the carriage technology and reduce downtime of cars in car depots during repairs,” says Volodymyr Mezentsev, the CEO of Lemtrans. “Companies in pursuit of customers must not act in prejudice to the traffic safety or set the tariff that does not cover expenses for maintaining and upgrading the rolling stock.”
Lemtrans transferred UAH 889.1 million to the budgets of all levels over 12 months of 2020. More than UAH 832.43 million were transferred to the state budget, including UAH 609.53 million of VAT. UAH 56.66 million were paid to the local budgets. Single social security tax made UAH 50.07 million.
Compared to 2019, the Company increased tax deductions to the state and local budgets by 21.7%.
PERFORMANCE OF INFRASTRUCTURE ASSETS
The Company has traditionally shown the positive dynamics of its car repair sector. Thus, the volume of scheduled and current types of freight cars repair at car repair sites of Lemtrans amounted to 7,674 units over 12 months of 2020, which is 21% more than during the equivalent period of last year. It was made possible with competent production work planning, advanced equipment and high qualifications of the staff. In 2020, the Company’s investment projects were focused on upgrade of our production sites.
The total capital investment amounted to UAH 264 million in 2020. The Company continued to implement its investment programme aimed at further improving efficiency and increasing the productivity of its car repair facilities. One of the Company’s key areas of innovation development is digitalisation. The priorities are equipping the rolling stock with GPS navigation as well as the project for automation of rolling stock repair records.
Lemtrans is the major private operator of railway rolling stock in Ukraine. The Company’s core activities are the arrangement of carriage by its own rolling stock, provision of freight forwarding services, information support to movement of cargoes, as well as repairs of rolling stock. 100% of the authorised capital of Lemtrans is held by SCM.