In Q3 2020, timber cargo transportation by railway in Russia increased by 4%

According to data from TransLes analytical center, the market demonstrates a tendency to restore the volumes based on the results of 9 months in 2020, despite the fact that some segments are still affected by quarantine restrictions. Long-term market trends that established even before the pandemic — growing domestic traffic and consistent reduction of roundwood export supplies — remain unchanged, which creates a sustainable platform for further operation of this segments in the market of railway transportation of timber cargo.

The volume of transported timber cargo (including container transport) reduced only by 1% YoY in January — September 2020 due to positive trends in Q3, when shipping grew by 4% YoY, reaching 12.6 million tons. Over 9 months of 2020, unprocessed wood and sawn timber accounted for the majority of shipped timber cargo in the Russian Railways network; it constitutes 88% of the transported volume. Particleboard, fiberboard and plywood account for 7%; chips and wood pellets, for 5%.

Domestic traffic demonstrated growth in several segments in January — September 2020.  For instance, the volume of transported unprocessed wood grew by 6% YoY, reaching 14 million tons. Pulplogs accounted for the greatest volume of 6 million tons; their shipping increased by 7% YoY, which is explained by the comparable growth in Russian pulp and paper products output. Sawlogs supplies grew by 10% YoY, reaching 4 million tons. The transported volume of veneer logs and raw material for production of particleboard and MDF increased by 1% YoY, reaching 3.8 million tons.

The effect of state measures stimulating production of high value added goods contributes to consistent reduction in roundwood export shipments since the end of 2000s. Export transportation of unprocessed wood reduced by 6% YoY in January — September 2020, down to 21.3 million tons, within this trend and under the conditions of this year’s quarantine restrictions. It is expected that planned and already implemented formats of state assistance — subsidies, support of tapping into foreign markets, etc. — will contribute to increasing the volumes of exported high value added timber products. For instance, over 9 months of 2020, export traffic of pulp and paper products grew by 12% YoY, reaching 4.3 million tons; of plywood and veneer, by 8% YoY, reaching 0.9 million tons. Export traffic of sawn timber that used to demonstrate long-term growth trend, was adjusted by 8%, lowering to 11.7 million tons, which is also non-typical and caused by the pandemic.