Mechel PAO (MOEX: MTLR, NYSE: MTL), one of the leading Russian mining and metals companies, reports acquiring some 150 railcars in November-December for a total of 467 million rubles as part of the transport fleet upgrade program.
Most gondola railcars were produced by Altaivagon OJSC and RM Rail Ruzhimmash and both bought to own and leased.
Currently Mechel Group’s transport operator Mecheltrans OOO manages approximately 11,000 train vehicle units. In 2019 the company plans to acquire some 1,000 new gondola cars.
“Over the past four years, some 150,000 gondola cars were scrapped in the Russian market due to expired life, which is practically a quarter of the entire fleet volume. The shortage in all-purpose vehicle transport segment is still being felt. As such, in order to improve the situation with transporting Mechel Group’s coal products we intend to dramatically expand our fleet. We are currently in active talks with wagonbuilders and leasing companies,” Mecheltrans Management OOO’s Chief Executive Officer Alexey Lebedev said.
Mechel is an international mining and steel company. Its products are marketed in Europe, Asia, North and South America, Africa. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.