Brunswick Rail purchases new-generation railcars

Brunswick Rail, one of the leading Russian railcar operating lessors, today announced an agreement to purchase 70 new-generation gondolas from CJSC Promtraktor-Vagon (managed by Tractor Plants Group, which is part of Machinery & Industrial Group N.V.). The railcars will be delivered to the Company during August and September 2011. The gondolas, all fitted with innovative Amsted Rail bogies, will be tested over the course of the year as part of RZhD’s “Controlled Operation” programme.

The four-axle 12-1304 gondolas feature several enhancements, including the 18-9836 Amsted Rail bogie with a Motion Control System, which allows for greater service intervals and improved performance compared to the traditional 18-100 bogie. The new gondolas have an axle load of up to 25 tonnes, an extended railcar body and a load capacity of up to 75 tonnes. The railcars are equipped with unloading hatches and are designed for the transportation of bulk (non-dust) freight.

During the year, the gondolas will be subjected to a series of rigorous examinations and tests by a commission consisting of representatives from RZhD, Brunswick Rail, Promtraktor-Vagon, Amsted Rail, VNIIZhT and other suppliers. These tests are part of RZhD’s “Controlled Operation” programme to monitor the technical characteristics and operational performance of the Russian freight transportation system. The tests are expected to demonstrate improved operational and service characteristics of these new-generation gondolas and to result in the start of commercial production of these gondolas in Russia.

Marcus Montenecourt, Amsted Rail’s Managing Director for Russia and the CIS, said: “As one of the world’s leading manufacturers of undercarriage railcar components and bogies for heavy haul freight railcars, we are delighted now to be able to introduce our world-class technology to the Russian market. There are a number of similarities between the Russian and U.S. rail freight markets, not least in terms of the significance that rail plays in these countries’ freight transportation systems. We believe the heavy haul railcar market in Russia will continue to grow, which in turn should increase the overall efficiency of the Russian freight transport system.”

Mikhail Bolotin, General Director of Tractor Plants Group and President of Machinery & Industrial Group N.V., added: “These new-generation gondolas reflect the growing sophistication of the Russian rail freight market, as companies have an increasing need to replace and upgrade their existing rolling stock. These cars, which we manufacture in our production facilities using world-class undercarriage components from Amsted Rail, are at the forefront of innovation in the Russian freight transportation system. The value for both sides from this partnership is significant.”

Brunswick Rail Deputy CEO and Director of Business Development Vladimir Khoroshilov said: “Brunswick Rail is pleased to contribute to bringing a fundamentally new type of railcar to the Russian market. The situation today is such that simply increasing the size of the fleet will not actually solve the railcar deficit problem. We believe that such technologically enhanced, new-generation cars will play a significant role in the future development of the industry. This is why we don’t only want to purchase the new cars, but also to participate in their testing, certification and full introduction to the market.”