UWC and Kronospan sign agreement on the supply of timber flat cars

Research and production corporation “United Wagon Company” (UWC, the Group or the Company) (MOEX: UWGN), Russia’s largest manufacturer of freight cars¹, and Kronospan, a leading global manufacturer of wood-based panels, have signed an agreement on the supply of 100 new generation flat cars (60 feet) for the transportation of timber freight. The rolling stock is expected to be shipped to the purchaser in H1 2021.

The model 13-6895 flat car has a loading length of 18.85 m and allows for three timber stacks, each of six metres in length, to be loaded while staying within the “short wheelbase” tariff, which significantly reduces transportation costs per tonne of freight. The flat car has an increased load capacity of 72.5 t and a higher load volume of 158 m³. Thanks to these specifications, the Tikhvin-produced flat car can be loaded with almost 40% more of freight compared with standard rolling stock models. Furthermore, uniform cross-section side racks help significantly reduce unused space when transporting packaged freight and prevent it from being damaged during loading and unloading operations.

The car is equipped with an innovative model of bogie with an axle load of 25 t, increasing its maintenance interval up to 1 million km (or eight years), significantly reducing costs over the rolling stock’s life-cycle. For comparison, a timber flat car mounted on standard 18-100 bogies (or equivalent) is sent for its first intermediate depot repair after running 210,000 km (or three years after construction), with subsequent repairs carried out every 110–160,000 km (or three years).

Ardasher Kurbansho, General Director of Kronospan: “UWC has proven itself as a reliable partner for several years, and the Tikhvin-produced cars in our fleet have a strong performance record. We have managed to reduce the cost of both transporting freight and servicing the cars, allowing us to further expand the Kronospan freight fleet with new generation rolling stock. We believe that it is vital to continue to grow and implement innovations throughout our manufacturing, marketing and logistics processes in order to be competitive and satisfy the needs of those who buy our products.”

As a result of the latest deal and taking into account previous deliveries of 40-foot and 60-foot timber flat cars, 80-foot container flat cars, and gondola cars for transporting woodchips, the number of Tikhvin-produced cars in Kronospan’s fleet will surpass 1,000 units.

¹Data sourced from INFOLine-Analytics: https://infoline.spb.ru/news/?news=203409