United Wagon Company is to supply timber platforms to the railway operator “Locotrans”

PJSC “Research and production corporation “United Wagon Company” (“RPC UWC” or the Holding) (MOEX: UWGN), the market leader in innovative railcar building in the 1520 mm gauge area and the railway operator CJSC “Locotrans” have entered into an agreement for the supply of 150 timber platforms with payload capacity 74 t.

According to agreements, the Holding will supply to the operator company log platforms of model 13-6852 with increased payload capacity manufactured at Tikhvin Freight Car Building Plant (TVSZ, par of holding UWC). Platforms will be directed to “Locotrans” before the end of the year.

Platform of model 13-6852 is intended for the transportation of 3-13 m long lumber and is characterized by the payload capacity 74 t and loading volume 122 m3. Unused dimensional volume of the car is significantly reduced during transportation of packaged freight and a possible damage to the freight during loading-unloading operations is avoided due to side posts. The posts height provides for an increased volume of loading space without formation of the freight “heap”.

Platform of the model 13-6852 is equipped with innovative 25 tf axle load bogie, which ensures one of its key advantages – increased terms of between-repairs runs and, consequently, the reduction of the railcar life cycle costs by 3 times. Railcar service life is 40 years.

The segment of timber freight traffic is one of the most dynamically growing segments in the Russian railway market. The stable positive dynamics is mainly due to the low base effect: after the freight traffic fall in 2008-2012 forest industry is gradually recovering. Loading of timber freight increased by 6.9% for January-May 2015 relative to last year’s level. The potential for further growth is nearly two times. In addition, the freight car fleet used for timber transportation is considerably worn: by 2020 about a half of freight cars will reach the limit of their specified service life.

Alexey Petrov, CEO at Locotrans, gave such comments on the transaction: “Our company has 15 years of experience in the market of rolling stock operators. At the heart of this business – competent logistics solutions and good reliable freight cars. We are customer-oriented and we strive to improve the quality of services through the constant updating of the fleet. We understand that implementation of new technologies into the railway industry is a necessary and natural step of its growth. By purchasing UWC platforms we are making investments to further development of our company and we plan to obtain additional advantages on freight rail traffic market”.