Irkutsk
Ulan-Ude

Blagoveshchensk
Chita
Yakutsk

Birobidzhan
Vladivostok
Khabarovsk

Magadan
Yuzhno-Sakhalinsk

Anadyr
Petropavlovsk-
Kamchatsky
Moscow

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Trucking is akin to art

Director General of DVTG TEO Viktor Merzlov - about the company's advantages in the freight market and plans for the development of services

The transport company DVTG TEO (Far Eastern Transport Group - Transport Forwarding Services) has been operating in the freight market since 2010. The company provides its customers with reliable logistics, security and efficiency of the services provided for the delivery of goods by rail throughout Russia and abroad. On the eve of its nine-year anniversary, the enterprise developed an investment plan and received the status of a resident of TOSED Khabarovsk, which will allow it to reach a new level. Viktor Merzlov, Director General of DVTG TEO, spoke about the company's advantages in the freight transportation market and plans for the development of East Russia services.

Trucking is akin to art
Photo: DVTG TEO

- Viktor Vladimirovich, what activities does the enterprise carry out and what resources does it currently possess?

- The main activity of DVTG TEO is the organization of rail transportation, the provision of transport services on the Russian Railways network. Our company provides railway rolling stock to cargo owners, freight forwarders, manufacturers of goods that need to transport their goods by rail. To do this, we have everything we need: a qualified staff of specialists with many years of experience in the field of cargo transportation, our own rolling stock, complete information support. Currently, our rolling stock fleet consists of 570 units. These are fitting platforms of various models and carrying capacities, as well as gondola cars, which the company owns on the rights of ownership and lease.

- For the transport of any goods they are intended?

- Fitting platforms are used to transport containers into which you can load anything: a variety of raw materials, equipment, spare parts, textiles and other goods. The shipper fills the container, seals it and transfers it to our fitting platform, which, as part of the train, delivers it to its destination. Often, containers are reloaded from ships arriving at the ports of the Far East, from where they travel to the western part of Russia, to the CIS countries, etc. Gondola cars transport bulk cargo, construction materials, timber, scrap metal, etc.


- By the standards of the market, “DVTG TEO” is a small company. Difficult to compete with major carriers?  

- Large transport companies specialize mainly in mass, so-called route transport. For example, you can download the whole composition from coal mines, steel mills. We, on the basis of a small fleet of wagons, cooperate with any shipper, undertake carload shipments of small enterprises. In fact, we can give one car to any station. This allows us to build the logistics of transportation in this way, when the cost of moving cars in the empty state becomes minimal.

We cooperate with major railway freight forwarders to transport goods by routes. For example, today some of our fitting platforms operate in more than 10 accelerated container trains that carry imported cargo from the ports of the Far East to Moscow, St. Petersburg and back. Delivery time ranges from seven to ten days, which favorably affects the economy, both cargo owners and operators of rolling stock by reducing the turnover of the car. All this allows the company "DVTG TEO" firmly hold the position of a stable and reliable partner.

In the market of transport services we are now in trend, because we provide high-quality and efficient services. Many of the cargo owners and forwarders have known about DVTG TEO and the specialists working in it for a long time and are turning to us. The company has several advantages. First of all, it is an individual approach to each client, a flexible system of discounts, almost round-the-clock work, high-quality rolling stock with high payload, reliability and dedication in working with our partners. We provide all customers with information about the route of cargo, about providing empty wagons in real time, often negotiating with employees of Russian Railways stations on behalf of our partners, resolving any issues related to cargo transportation.

- Who are your customers and how many regular customers at the moment?

- Customers are different. There are large companies that consistently provide a large amount of traffic, and small businesses with small batches. We try to work with everyone. Now we have a minimum of 300 valid contracts, and actually signed for all time - around 600-700.

- What is the art of transportation?     

- The main indicator for us is the turnover of the car. The smaller it is, the higher the load factor, therefore, the average yield per wagon of the working park will increase. All this will lead to an increase in the economic performance of the enterprise. We strive to reduce the idle time of wagons under cargo operations, reduce its turnover from loading to loading, minimize the costs of empty tariffs. The art of our transportation is in competent logistics and quick search for clients for dual operations. I mean, if the carriage was loaded at one station, he arrived at another station for unloading, by the time of his arrival we already find a new shipper and give it up for a new loading.

In addition, we try to keep the fleet of cars in working order as much as possible, taking all measures for its accelerated repair at car-repair enterprises. For example, if a car arrives for repair somewhere near Moscow, our task is to minimize the time of its stay in a non-working park. Our specialists will know in advance what the cause of the car’s malfunction is, what spare parts are needed. It often happens that at the moment in the car-repair depots there are no, for example, cast parts of carts (wheel sets, side frames, bolsters). We promptly attract suppliers of spare parts in the region, who will deliver them as soon as possible. To accomplish these tasks, the company needs professionals in their field who know everything about the system of cargo transportation by rail via the Russian Railways network. And in order to organize these processes, we need knowledge, experience and, most importantly, the responsibility of each employee at any workplace.  

- Tell us about the prospects of the company, is it planned to expand?

- Like any enterprise, we want to grow. Our transport company is independent and has full information support in all respects. We are ready and striving to further increase the client base, enter into new transportation contracts, increase the number of rolling stock units, which will lead to the creation of new jobs in the enterprise. To implement our plans, we appealed to the Far East Development Corporation and applied for membership in the Khabarovsk TASED. Having received the status of a resident in November 2018 of the year, we started to implement our investment program.

- What is the amount of investment "DVTG TEO" laid in this program and what exactly will be spent money?

- The volume of investments for the project in the planned period is planned in the amount of more than 200 million rubles. Investments will be attracted to expand the rolling stock through the acquisition of new cars. We plan to buy cars at Russian enterprises Altaivagonzavod, Uralvagonzavod, Transmash. At the end of 2019, the acquisition of the first batch of new cars in the amount of 30 units is planned, another 40 - in 2020. The number of jobs is planned to increase to 42 employees. The newly created jobs are economists, transportation specialists, accountants, and railcar specialists.


- That is, due to the fact that the company, as a resident of TOSED, will enjoy tax breaks for five years, will you be able to invest the saved money in your own development?

- Yes, having entered TOSER, we received certain preferences. Our own cash injections into the investment project will be 30%, the remaining 70% - bank loans. These are mutually beneficial conditions both for the company and for the region, because we get the opportunity to direct money to increase production, which will further increase tax deductions to the regional treasury and provide an opportunity to create new jobs.

In addition, we intend to master a new type of activity in TOSED - wood processing, we will manufacture euro pallets, and fastening material for cargo transported in railway rolling stock. At the beginning of 2020, we have planned the acquisition of wood processing machines and the establishment of product sales.

- What problems exist in the industry now, in your opinion?

- Carriers, operators, freight forwarders, and other transport companies, are tied to the economic situation in the country. The dollar exchange rate, sanctions imposed not only on Russia, but also, for example, on China, such as an increase in duties on export goods, of course, to one degree or another, affect the dynamics of freight traffic. All this makes for all sorts of restrictions, conventions, price nuances, and they - to the fact that the traffic market is sometimes forced to wait and stand idle.

Suppose, if quotas on the export of round wood are introduced, we, like other companies, limit the volume of traffic and wait for the end of the period of introduced quotas. If consignees in the ports of the Far East, or, for example, at the border crossing Art. Grodekovo cannot cope with cargo traffic in his own way for some reason, RZD is forced to abandon trains until the situation normalizes and to issue a loading limit in this direction.    

I would like to wish all participants in the transportation process, rolling stock operators, freight forwarders, as well as cargo owners, lengthy contracts, reliable partners, stability in business and the economy.

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