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LDz Cargo will purchase new freight wagons

Wednesday, 11 February, 2009

LDz Cargo Ltd, subsidiary of SJSC Latvijas dzelzceļš (LDz), in January has concluded a contract on manufacturing and supply of 100 covered wagons and 100 platforms, and it foresees to receive the new wagons already at the end of March.

As yet there have not been enough freight wagons, especially large capacity covered wagons with double doors and platforms for heavy tonnage container transportation; therefore, LDz Cargo used the wagons belonging to its cooperation partners - other railway companies that increased the costs of the company.

Most of the wagons used in transportation belong to holding company SJSC Latvijas dzelzceļš, from which LDz Cargo rents these wagons. About 5000 rented wagons are obsolete; in year 2013 most of the wagons belonging to LDz will become technically obsolete if there will not be purchased new ones.

The maintenance of old wagons increases the costs considerably – the older are wagons, the higher are costs for exploitation. Analyzing the transport market and considering what wagons will be the most necessary in the future, LDz Cargo plans to purchase up to 1000 wagons. It is planned to purchase covered wagons, platforms, as well as grain wagons.

It is particularly favorably purchasing wagons now, because during the economic crisis prices for wagons have fallen by 20-25% in comparison with the previous prices.

The first were purchased most demanded wagons in rail transport market – covered wagons, as well as 80- and 60-feet platforms for heavy tonnage container transportation. The usage of these platforms varied – it is possible to carry containers, equipment of tractors, timber products, tubes and other similar cargos on them. These platforms are considerably longer than normal, universal platforms; therefore, there is no necessity to use covered platforms, for instance, carrying long tubes.

Capacity of the newly purchased covered wagons is at least 150 m3 with double doors on each side for easier loading and discharge.

The wagons are manufactured in wagon manufacturing factories in Ukraine, and until 31 March 2009 LDz Cargo will start to receive the ordered wagons.