UTLC ERA will purchase 200 container railcars for the partial formation of its own fleet

According to the results of 2018, the United Transport and Logistics Company – Eurasian Railway Alliance (UTLC ERA) forecasts the traffic volume in In order to provide the transit traffic growth, the company will purchase at least 200 container railcars from the Osipovichsky plant of mechanical engineering (Belarus) in the first half of 2019.


JSC “United Transport and Logistics Company – Eurasian Railway Alliance” (JSC “UTLC ERA”) signed an agreement with CJSC “Osipovichsky plant of mechanical engineering” (CJSC “OPME”) for the supply of 200 units of 80-foot container railcars till the end of April, 2019. The total value of the contract, approved by the UTLC ERA Board of Directors at the end of December 2018, is more than 650 million roubles without VAT and will be funded from the company's own funds.

The agreement on the purchasing of 80-foot container railcars from CJSC “OPME” was concluded in accordance with the UTLC ERA strategy, which allows to form its own fleet of railcars to provide the transit traffic growth, to optimize the costs and reduce its dependence on substantial rates growth of rented wagons. UTLC ERA is considering the possibility of further railcar fleet increasing under its management. At the end of December 2018, the number of railcars was more than 4,000 units. This is the second largest fleet of container railcars in operation throughout the entire 1520 mm gauge railway.

“To ensure the planned traffic volumes for the next year, we need about a thousand more railcars. In order to build up the fleet, we intend to use all the possible options like renting, financial leasing as well as purchase. At the end of 2019, we plan to increase the number of cars under management to 5 thousand units. 85-90% of the fleet will consist of long-base 80-foot railcars,”- Alexey Grom, the President of UTLC ERA, noted.

13-9570 model of railcars manufactured by CJSC “OPME” is destined for the transportation of large-capacity containers. When choosing a supplier, UTLC ERA considered several Russian and foreign manufacturers. Price conditions and delivery terms proposed by CJSC “OPME” were admitted to be optimal. The equality of the cooperation conditions with Russian and Belarusian counterparties was ensured by the fact that the supply contract with the Belarusian manufacturer applies a zero VAT rate, fixed by the provisions of the Treaty on the Eurasian Economic Union (EAEU) in May 29, 2014. In accordance with them, when goods are exported by the taxpayer of the EAEU Member State to another EAEU Member State, a zero VAT rate is applied.