United Wagon Company and Transmashholding to bolster freight transportation in South America
Research and Production Corporation “United Wagon Company” (MOEX: UWGN), a leader in innovative railcar building in the territory of 1520-mm gauge, and TMH International AG, a subsidiary of the largest manufacturer of rolling stock in Russia JSC Transmashholding, have signed an agreement to cooperate in developing railway freight transportation in counties of South America.
The agreement provides for cooperation of the companies in sales and deliveries of integrated freight transport solutions that will include locomotives manufactured by JSC Transmashholding and freight cars and components manufactured by United Wagon Company to Argentina, Uruguay, Bolivia, and Paraguay.
The partnership will utilize industrial and financial infrastructure, developed by TMH Argentina, a subsidiary of TMH International AG in Argentina.
The current South American fleet volume approximates to 145000 freight cars. AAR standards dominate the region with gages 1000, 1067, 1435, 1600, and 1676 mm. The projected demand for freight cars amounts to 4500 units per year assuming expansion of railways to fit developing agriculture and extraction industries.
United Wagon Company is working to step up its presence in countries that use freight rolling stock and develop railroad transportation. In 2017, the company has shipped almost 600 cars and 200 large casting car sets to North America, Europe, Africa, and Middle East.
Maksim Kezemchenko, Deputy CEO for Business Development, United Wagon Company:
We expect South American markets to experience rapid growth driven by expansion of mineral extraction and other mining and processing operations. Transportation, especially railway transportation, is a sector of industry to receive priority investment in the context of economy growth. I am confident our partnership in the region will be highly successful, and customers will appreciate the quality and technological advantages of our products.
Franco Comparato, General Director, TMH Argentina:
We believe in the prosperous future of the Argentinian transportation market as well the entire South American continent. Transmashholding is interested to expand the portfolio of products and solutions it can offer to the customers in South America, and we are glad to welcome UWC as our partners.