UWC and Promkhimtrans have signed an agreement on supply up to 1,000 innovative freight cars

United Wagon Company, LLC (UWC) and railway operator Promkhimtrans, LLC have agreed on supply up to 1,000 innovative freight cars under the financial leasing terms for a period of 10 years. The agreement was signed in the course of the 19th Moscow International Transport & Logistics Exhibition and Conference “TransRussia 2014”.

Under the agreement UWC will deliver hopper-cars and gondolas with advanced operating features, produced by Tikhving Freight Car Building Plant (managed by UWC) to Promkhimtrans. The first rolling stock batch will be delivered until to the end of April.
Due to innovative cars operation the market members will decrease maintenance costs and increase business efficiency. For freight owners the increased capacity of such rolling stock ensures saving on rate, for operators – reduction of car fleet for transportation process and reduction of rolling stock repair expenses, for infrastructure owner – cost reduction for track maintenance and increase of shunting operations.

Commenting on the agreement Alexander Lukyanenko, Deputy CEO for Sales & Supply at UWC, said: “Promkhimtrans takes an active part in adaptation of our car design to rolling stock customers’ requirements and specificity of loading and unloading works. Such cooperation allows us to remain up-to-date with market realities. We plan continue our collaboration in future”.

Denis Venerskiy, CEO at Promkhimtrans, LLC, added: “Under conditions of car fleet surplus on almost all types of rolling stock we are ready to invest heavily in innovative cars. At the moment such car provides our customers with variety of advantages reducing shipping cost and load/unload time. For cargo owners and for operators the benefit of innovative cars operation will be increased in future. In our opinion solution of existing problems in transport sector is closely related to encourage changing over to innovative rolling stock through adoption of technical regulations, updating ratification system, changing scheduled repair system and others. Operators changing over innovative cars will get significant competitive advantages in the mid-term and we intend to be among the first”.

The Parties noted that they have an optimistic view of railway transportation and Russian car building market. In future the companies which are mobile, flexible, willing and able to meet customers’ requirements will be success.