BUSINESS ALLIANCE to purchase the second batch of new generation gondolas from UWC

PJSC “Research and production corporation “United Wagon Company” (“RPC UWC” or “the Holding”) (MOEX: UWGN), the market leader in innovative freight car building in the 1520 mm gauge area, and the leasing company BUSINESS ALLIANCE, JSC have entered into the second agreement for the supply of new generation universal gondolas manufactured by Tikhvin Freight Car Building Plant (TVSZ, part of RPC UWC). As a result of this transaction the freight car fleet in the ownership of BUSINESS ALLIANCE will exceed 3.8 thsd. items.

The dispatch of gondolas with unloading gates of the model 12-9853 will commence before the end of June this year. The leasing company intends to provide freight cars manufactured at TVSZ under the contracts for operational and financial leasing. It is planned that the average term of the contracts will be 5 years, and their value — more than 11.5 bln rubles. The companies concluded the first contract for the supply of new generation freight cars in April this year. Thus, due to the signing of the second contract the value of supplies will amount to 11.8 bln rubles.

TVSZ freight cars are equipped with bogies with increased axle load and their designed service life is not less than 32 years. Increased up to 92 m³ freight car body volume allows to transport freights utilizing car's full payload capacity of 75 tons. For one run this gondola  transports up to 10% more freights compared to a standard sample. The research of INFOLine Russia Rail Top has shown that the profitability of operating the innovative gondolas is nearly by 2 times higher (more than additional 500 rubles per day) compared to operation of standard rolling stock.

A considerable competitive advantage of TVSZ freight car are enhanced up to 8 years terms of between-repairs runs (by 4 times more compared to standard counterparts), that benefit made it possible to decrease by 3 times the cost of service maintenance of the freight car throughout its whole life cycle. According to “Siberian Coal Energy Company” which operates more than 6,000 of freight cars manufactured by Tikhvin Freight Car Building Plant, this rolling stock is uncoupled to the maintenance repair less often, and the time it stays in the repair facility is minimum — nearly by 4 times less (less than 2 days) compared to the indicators of the similar rolling stock of other manufacturers. In addition, extended geographical reach of RPC UWC servicing centers in the Russian Railways network and prompt delivery of spare parts considerably reduces repair time and increases the share of operating fleet.