PJSC ArcelorMittal Kriviy Rih concluded the contract through financial leasing for the supply of 211 open wagons. The contract for 239 wagons more will be the next step. Earlier this year the company has received 50 new wagons. Hence, this year the company is to purchase and operate 500 wagons to transport its products and deliver raw materials.
As a result, AMKR own fleet will increase to 1000 wagons (can be operated in Ukrzaliznytsia’s network) that will enable the company to perform 10-15% of its transportation with own assets irrespective of the situation on railway transportation market and availability of wagons. Lack of wagons in the railway network of Ukraine, estimated at some 10 thousand wagons, makes PJSC ArcelorMittal Kriviy Rih increase its own rolling stock. The company can reduce its costs linked with inbound and outbound transportations, as well as explore new directions for transportation of rolled products and iron ore concentrate for export.
All new wagons for the company will be manufactured at PJSC Dneprovagonmash, one of the partners in signed financial leasing contract.
Apart from the purchase of new wagons, PJSC ArcelorMittal Kriviy Rih concludes long-term contracts with leading private operators for provision of rolling stock. One of them was signed in Q1 with Lemtrans company for the use of 500 wagons. This contract stipulates provision of shipper with wagons for delivery of fluxes, coal and coke as well as for transportation of iron ore raw materials and finished rolled products of PJSC ArcelorMittal Kriviy Rih.
Andrey Moroz, Head of External Logistics Department, PJSC ArcelorMittal Kriviy Rih: “This year we have started an active expansion of our transport fleet and purchase of new wagons for cargoes transportation. It’s not a secret that there is a deficit of open wagons on Ukrainian market. The company needs to fill the misbalance in provision of wagons for transportation of 5 million tons of our products and 2.5-3 million tons of concentrate per year. Involvement of additional fleet of wagons is planned both under the terms of leasing as well as conclusion of long-term contracts with logistics companies. It is also worth noting that Ukrainian railways are lacking not only wagons but also locomotives. Our company along with other big shippers in Ukraine proposes on a regular basis to introduce private locomotive traction in order to ensure own transportations in Ukrzaliznytsia’s networks”. (AMKR/Ukrainian metal)