UWC manufactured 5,000 railcars in the third quarter

United Wagon Company manufactured 5,000 railcars in the third quarter, a 15 percent increase compared to the same period last year. The 9-month production grew by three percent to 14,000 railcars. UWC is to build up its production volumes in the fourth quarter keeping with the intended annual production level of 19-20,000 railcars.

The key driver for the growth was increasing production of specialised rolling stock, said the company. The production of hopper cars soared by 88 percent in the third quarter, and by 118% over the first nine months year-on-year, to 1.3 thousand units and 3.5 thousand units, respectively.

A total 98 percent of newly produced railcars were sold under direct contracts to third parties since the start of 2018. The largest supplies were made to GTLK (gondola, hopper cars and flat cars), Rusagrotrans (hopper cars), Uralkali (hopper cars), Logistics1520 (hopper cars), and NPO Azot (tank cars). These companies have acquired a total of 11.2 thousand railcars from the company since the year’s start.

The Holding’s own leasing entities acquired 40 newly built flat cars equipped with 25- tf bogies to be subsequently leased to UNICON 1520. A total of 298 railcars made by UWC were acquired into the Company’s fleet since the start of the year.

In line with a leaseback transaction entered into in the third quarter, the company sold 5.6 thousand railcars from its own fleet to Gazprombank Leasing. Prior to the year end, another 6.1 thousand railcars will be sold to the company.

As a result of the above changes, UWC’s own fleet and fleet under financial lease totalled 12 thousand railcars, a nine percent decrease compared with the 2017 end.

In the reporting period, UNICON 1520’s tank-container fleet grew by 21 percent over the quarter and by 72 percent compared to 2017 end, reaching 1.1 thousand units, the flat car fleet under management grew by 16 percent and 115 percent, respectively, to 557 units, while the tank car fleet remained unchanged compared to the previous quarter’s figure of 78 units, and the number of tank cars doubled compared to the 2017 end.

For more information visit: www.uniwagon.com

30th October 2018