UWC and Uralkali agreed on the supply of a large lot of hopper cars for mineral fertilizers

Research and production corporation “United Wagon Company” (“RPC UWC”) and Uralkali, the world’s largest producer of potash fertilizers, signed an agreement for the supply of 400 hopper cars for mineral fertilizers.

Under the agreement RPC UWC will supply Uralkali with hopper cars of increased axle load manufactured in Tikhvin Freight Car Building Plant (TVSZ, is part of RPC UWC). The hopper cars will be used for the transportation of mineral fertilizers. The shipment of the first batch is scheduled in the current year.

Today the segment of mineral cars is mostly demanded in the market due to a significant increase in traffic, especially in export directions. Market experts predict the growth in demand for this type of rolling stock in 2016-2017 amid the commissioning of new production capacities of the production of fertilizers, as well as due to the write-off of a part of commercially usable fleet.

Mineral cars of model 19-9870 produced in TVSZ are distinguished by the improved commercial and operational indicators. The application of a bogie with axle load of 25 tf and an optimal volume of a car’s body (101 m3) provide for enhanced, up to 76.5 t, loading (up to +6 t of freight compared to analogues), and these advantages contribute to efficient transportation of a wide range of mineral fertilizers. The application of a special two-component coating ensures reliable protection of a car’s body from aggressive influence of freight.

It is to be recalled that Uralkali has already been using 80 leased hopper cars of TVSZ production. Subsequent to the results of their operational use, the company made the decision on purchase of new generation freight cars.

Irina Yamilova, Head of the Department for Railroad Transport at Uralkali, noted: “The Company constantly works on enhancing of efficiency level of the use of both leased rolling stock of the largest operators of Russia, and its own. New cars comply with our production requirements and they will provide for a more efficient implementation of our logistical capabilities”.

Alexander Lukyanenko, Deputy CEO for Sales and Development at RPC “United Wagon Company”, pointed out that: “The business model of our company provides multiple distribution channels for cars in the market. Operational leasing has, up to a certain time, been a key direction. The transaction with Uralkali shows an increase in a solvent demand for the purchase of mineral cars, giving the new owner of cars an opportunity to enjoy all the benefits of the cars’ operational use”.