3 (11) September-November 2007

Predictable victory

Oy Karelian Trains Ltd, operator of the high-speed line St. Petersburg – Helsinki, which is to open in 2009, announced that the winner of the tender on trains supply is Alstom company. The French producer presented its famous Pendolino train, which has been successfully used in Finland for a long time. According to the scale of works completed and the activeness of the sides, the project will be launched on time. Only the most pleasant «problem» remains, i.e. choosing the name for the train.

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Customs Procedures at the Railway: New Technologies for Freight Owners

Before 2007, OAO RZD chose several customs brokers annually to hold customs operations.
This year changes have been made, and now the company works with only one broker – OOO Customs-Broker Centre (CBC), who won the tender. Vsevolod Titov, Deputy Head of the Customs-Broker Activity Department of OAO RZD, Major-General of Customs Service, told a correspondent of
The RZD-Partner International about the reasons for such a decision and the changes that will take place in the services for cargo owners and companies-operators.

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Chinese Rolling Stock Heads for the CIS

Chinese rolling stock seems to be more and more attractive for OAO RZD, АО Kazakhstan Temir Zholy and Belarus railway. The major reason for that is the monopoly set by several enterprises on the market of rail car engineering which results in high prices, low quality and rolling stock deficit.

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Buyers Do not Dream

«There are only several manufactures in the CIS who actively contribute to rail car engineering business, -- Vladimir Yakunin, OAO RZD President emphasizes. – Taking advantage of their monopolistic position, they manufacture low quality production and try to supply it on high prices». As an example he quoted such Russian enterprise as Uralvagonzavod: when a carrier expresses its decision to enhance the car park, prices for the factory production jump up, though the quality remains the same. «We have two ways-out: the first one is to audit pricing at Uralvagonzavod with the help of the Federal Antimonopoly Service and the second is to purchase cars in China which are half as expensive and twice as good quality», - Vladimir Yakunin believes.
In particular, at the 46th session of the Union on Railway Transport of the CIS and Baltic countries held in May 2007, the participants made a decision to certify Chinese rail cars in Russia. The certification will be performed by the register of the Federal Agency of RF Railway Transport (Roszheldor). «Under conditions of submitting all the required documents and providing adequate conditions for Chinese cars to function on the Russian railways the procedure won’t take long», Igor Romashev, the Head of Roszheldor, commented. There are about ten manufacturers in China who specialize in rail cars production. It has not been announced yet whose production is to be certified in Russia.
Belarus railway (BR) also announced its plan to purchase 2 thousand rail cars in China. «Nowadays we have to purchase Russian costly production, thus, a Russian gondola car costs about USD 50 thousand, whereas a Chinese unit is only USD 20 thousand, - First Deputy of BR Vladimir Laptinsky stated. - At the same time the Russian unit speed totals 110 km/h and the Chinese one - 160 km/h». BR representatives also add that rolling stock purchase from Chinese manufacturers will be tender-based and possible under condition that the cars are certified by the Register of Certification for the federal railway transport of the RF. Railcars of BR are used on the CIS and Baltic railways, that is why they are to correspond to the unified normative-technical standards set by clause 1 of «Agreement of joint use of cargo rail cars and containers of the states-participants of the CIS, Azerbaijan Republic, Georgia Republic, Latvian Republic, Lithuanian Republic and Estonian Republic» effective from 22.01.1993 and signed by the governments of the states.
Last year the Ukrainian carrier Ukrzaliznitsya declared its plan to purchase Chinese rolling stock, explaining such decision by the high prices set by national car-manufacturers. However, according to Deputy CEO on Marketing of OAO Dneprovagonmash (Ukrainian car producer) Andrey Polyakov, when the economic calculations were completed, it appeared that the transport component in the Chinese car can be so high that this idea would better be forgotten, at least for that moment. The optimal way out was discovered through development of gondola cars manufacturing at car engineering plants belonging to Ukrzaliznitsya». «The situation looks different for OAO RZD, - A.Polyakov commented. – In this case the transport component will be minimal since prices set for Chinese cars seem attractive compared to those of the CIS».
The problem of rolling stock park renewal is crucial for Kazakhstan Republic as well. Thus, the national company of Kazakhstan АО Kazakhstan Temir Zholy has already concluded the contract for manufacture and deliver of 152 passenger rail cars produced by Tanshan plant. «This decision was based on the fact that Tanshan state plant uses state and sector standards corresponding to international norms. We also were satisfied with the offered prices, - the First Vice-President of the enterprise Kazhmurat Nagmanov reported. - Now, due to an insignificant period of Chinese cars exploitation, it is quite hard to characterize any peculiarities of technical employment and repair of these cars». In Kazhmurat Nagmanov’s words, in respect of cargo rail cars, Kazakh experts started to research the Chinese manufacturers market. It is quite obvious that potential buyers pass from words to the implementation of their plans.
Forwarding companies functioning on Kazakhstan market consider the initiative of the Union of the Railway Transport of the CIS and Baltic countries on Chinese rail cars certification quite reasonable. «For the last 10-15 years rolling stock has not been renewed in the CIS and its operation life came to the end, - MEK Transsystem CEO Larisa Smirnova says. – Economical development and respective need in cargo transportation enhanced demand for rail cars. However, the productive capacities of the Russian and Ukrainian car engineering plants stayed at the same level. In our opinion, in the near future the tendency of high demand on rail cars will be only developing. In this situation the arrival of a new cars manufacturer who is able to keep 1520 mm gauge standard is not only welcome but obligatory. This will allow to balance the market and reduce the rail car price which has jumped threefold in the last five years».

We will destroy this monopoly

The situation on the Russian market when the only monopolistic enterprise makes OAO RZD purchase its major volume of gondola cars from Uralvagonzavod, which takes over 62% of the Russian and CIS market, is very favourable for the factory, though extremely unfavourable for OAO RZD. The current situation resulted in the fact that the factory started to manufacture production of low quality which does not meet the sector standards. In February 2007, the sector witnessed a scandal when over 14 thousand gondola cars of 12-132-03 model produced by Uralvagonzavod in 2004-2005 were taken out of operation to undergo unplanned technical control. This urgent step was taken due to the number of derailments that occurred in 2006-2007. Problems with cars resulted from breaking the technological norms during their manufacturing at the factory. Moreover, in 2006 low quality cars were transferred to current repair 16.5 thousand times.
«Nobody was ready for such situation, - Vadim Morozov, OAO RZD Vice-President stated, - all this damaged our sector functioning significantly. Cast details which are to be in use for 32 years haven’t functioned even for year and a half!» As a result to save its current park, OAO RZD accumulated all the available resources. Wagon depots worked day-and-night inspecting 315 gondola cars per day. Consequently, during this period the repair work of other car types belonging both to OAO RZD and to private operators was stopped. In the course of inspection OAO RZD experts discovered defects in each tenth car.
It is obvious the time has come to think over a diversification of purchasing policy. In accordance with the investment programme of OAO RZD, in the next few years it is planned to acquire about 10 thousand gondola cars per year. If Uralvagonzavod remains the monopolist, the February crisis is likely to repeat. In the words of Valentin Gapanovich, OAO RZD Vice-President, the situation makes the corporation seek alternative suppliers of rolling stock. After the arrival of several car engineering manufacturers, their production will become cheaper and buyers will have the opportunity to choose at last. «If our manufacturers are not ready to listen to what we have been trying to tell them for many years, we will destroy this monopoly ourselves», - Vladimir Yakunin, OAO RZD President, stated demonstrating the corporation plans to certify Chinese rolling stock.

Chinese Rolling Stock: Pro and Contra

Quite possibly OAO Ruzkhimmash and OAO Altaivagon can become OAO RZD suppliers. It is not excluded that under support of OAO RZD, by the end of 2007, in Russia three new car engineering plants will be launched. By 2008 they will be able to reach the acceptable for the company production volumes worth 20-30 thousand gondola cars per year, since they are launched on the basis of the presently acting enterprises. Thus, the first project is OAO RZD and Cheboksary Promtractor JSC joint venture - Promtractor-wagon JSC. Last year Promtractor-wagon concluded a contract with the Japanese company Nippon Sharyo on designing the technology for new-generation gondola cars manufacturing. By the end of the year the enterprise will produce the first models developed within OAO RZD project on the basis of Japanese technologies. After reaching the planned capacities by 2010, the joint-venture will produce the annual volume of 7 thousand units. Moreover, negotiations between OAO RZD and Mordovia Car Engineering Company are under way in respect of reaching the annual production volume of 9 thousand units per year.
Transport experts take Chinese cars arrival as a positive tendency, though they stress the fact that the idea’s success will depend on the time when the rolling stock reaches the market in reality. «Russian industry manufactures about 50 thousand units per year,– Yuri Saakyan, CEO of the Russian Institute of Natural Monopolies Problems, says.– According to our calculations, following such rates we are to satisfy the market by 2015. That is why Chinese production can be interesting only from the financial point of view». The expert says that the competitiveness of the Chinese machinery is provided by the state support when budget investments, including those for new technology development, are out of the prime-cost of production.
«The most interesting fact is that Chinese machinery delivery to Russia is a modified form of re-export, - Alexander Bityutsky, Director of Engineering Center of the RF Rail Cars Engineers Union, stated. – In the past we gave them design. At the end of the 1980s Altaisky and Kremenchugsky plants closely cooperated with China. Enterprises did their best to supply China with rail cars. That is why what they offer us now is what was developed in our design offices not long ago. The matter is they were developed for another market and are not suitable for us in terms of consumer characteristics».
Now, let’s turn to what car engineering plants think in this respect. The problem is to arise, if ОАО RZD takes the announced step. «We will compete with Chinese manufacturers and improve our production quality, - Boris Mineyev, the Head of PR Department of Uralvagonzavod, says. – Of course, China has more favourable technological opportunities and we are short of financial resources required to enhance productive capacities of the enterprise». Dneprovagonmash factory shares the opinion that Chinese production and Chinese dumping price will make the national car manufacturers develop a new strategy and tactics both for production and pricing. «All over the world a reasonable protectionist policy for national manufacture support is carried out. This is typical of many international markets and does not contradict market laws, - A.Polyakov comments – It would be much more logical to invest into the national production and develop domestic competition rather than enhance the neighbor’s prosperity». He also added that domestic competition on the post-Soviet arena is not an illusion any longer, but everyday reality. Thus, for example, Ukrainian and Russian producers compete, as well as those who work within one domestic market.
A.Polyakov mentioned that, when contacting some African railway businessmen, Dneprovagonmash experts received not very positive remarks about Chinese production quality. First of all, this had to do with cast and rolled-metal quality.
«The USSR purchased and used Polish and Finnish cargo rail cars, - I.Chiganashkina, Technical Director of OAO DVTG, claims. Czechoslovakia and Poland delivered components for cargo cars (bearings, wheels etc). Their efforts to reach the Russian market again were observed not long ago. However, the Ministry of Railways and Communication and OAO RZD conservatism, as well as lobbying their specific interests by the national manufacturers prevented not only cargo cars but their components as well from certification». In her opinion, such policy blocks the opportunity to attract competitive production to the Russian market, which results in deficit of productive capacities. «I feel disappointed about the fact that the RF rail cars manufacturers are not interested in new competitors’ arrival and they will only be preventing certification of foreign cars. Nowadays the car engineering specialist can be interested in certification of only import components (cast, wheels axels etc)», I.Chiganashkina asserts.
Such position is quite understandable since, having no Russian business support, they risk to stay out of work. «I do not believe the question of what rail cars to purchase, Russian or Chinese, will be put so flatly, - L.Smirnova remarks. – We should not forget about the fact that Chinese production will include the cost of delivery and customs duties». Moreover, if China carries out dumping policy to enter the market, our state can introduce special protective measures».
«Speaking of the national manufacturer support, there is no reason to support lack of quality, - I.Chiganashkina believes, - I do hope the competition will push our producers to improve quality and reduce the prime-cost». «In fact the procedure of certification of the ultimate product and the term of the latter’s delivery to the domestic market is adequate to the terms of our own capacities development», - Andrey Gorlenko, Deputy CEO on Development of Independent Transport Company, states. In his words, considering the scale of the domestic market and the state development prospects, the key priority is to be given to the Russian car engineering sector development, as well as setting the stable cooperation between car manufacturers and their sub-suppliers in the CIS.
Generally speaking, the majority of operators in Russia and the CIS are looking forward to Chinese production certification. «Last year the prices for car engineering plants production have grown by 40%, whereas the profitability of gondola cars transportation, even considering the rise of the car component that occurred early in 2007, has increased by only 15-18%, - Valery Shpakov, CEO of Novaya Perevozochnaya Company, noticed. In such conditions it is unprofitable to purchase new gondola cars. That is why alternative manufacturers’ arrival can become the solution. The national factories give us no choice».
DVTG is also ready to purchase foreign rolling stock. «I wish everybody who offers quality and competitive production to the market players would be able to do this facing no problems – I.Chiganashkina said. – Also, I wish Chinese cars arrival in the period of crucial deficit would not be the only phenomenon of this sort. The market is formed when everybody is able to join».
«We think that independently of the country-producer rail cars are able to and must work within 1520 area under conditions of their certification in accordance with norms set for the state-participants of the Union on Railway Transport of the CIS and Baltic countries», - L.Smirnova agreed and added that her company will consider purchase of Chinese rolling stock and components if the proportion price-quality is reasonable. «It would be nice if Chinese cars are constructed in the Russian or Ukrainian designs, which will make it easier to repair the rolling stock in future, - L.Smirnova remarked. – In this case the only problem which may arise while using the units is the quality of cars themselves, as well as the moulded pieces of their boogies».
It is quite hard to predict how realistic this wish is, though it makes sense. It is not excluded that, having decided to save money, buyers will have more troubles instead. Thus, I.Chiganashkina expressed the idea that the major problems may concern guarantee obligations of the Chinese plants. «When an unplanned cut of rail car occurs, ОАО RZD specialists often can not locate the problem precisely and long distance, as well as the language barrier, may lead to their inability to work out an operative and efficient solution, - she added. - In the future we hope service centers will be organized and qualified staff hired, but this will happen only when we have to sort out the initial problems of this sort. All these details are to be thought over in a systemic way and in the focus of problems typical of the national rolling stock».
Dneprovagonmash experts pointed out one more problem to consider, i.e. Chinese production adaptation to the operation condition of the CIS railways. «It is impossible to judge how efficient, reliable and safe this rolling stock will be without trial-runs on the polygons or in real conditions. However, considering our experience of using Chinese machinery, I would say a certain amount of problem concerning quality will have to arise», - A.Polyakov warned. He also emphasized another significant fact that rolling stock purchase in China may bring the sector into a long-term dependence on Chinese components manufacturer.

Not Only About Rail Cars

It has to be mentioned that China seems attractive to Russia and the CIS not only in respect of cargo rail cars. There is another significant problem that has to do with the castings required to provide for demands of car repair complexes. In V.Gapanovich’s opinion, this problem is of systemic nature due to an incorrect repair policy carried out in the past, which resulted in the accumulation of 120 thousand of overdue moulded pieces.
According to experts of the Central Direction of Cargo Cars Repair, in the next two-three years the company has no opportunity to satisfy demand in castings of the Russian enterprises. That is the reason why car repair complex will be trying to fill up the deficit with the help of its own resources and consider the plan to purchase moulded pieces from private car repair enterprises.
In this respect Roszheldorsnab has initiated negotiations with the Russian dealer of Siminvest Kremechugsky factory on supply of chassis and beams for ОАО RZD. However, V.Gapanovich claims that an opportunity to conclude a contract with Chinese companies is also considered.
Many Russian operators believe that the launch of components production in China is a highly perspective business. However, opposite opinions can also be found. Thus, Sevastian Kozitsyn, an expert of BrokerCreditService Group of Companies, asserts that problems of Uralvagonzavod are of a temporary sort due to the fact that the Ural enterprise has been investing heavily into systems of production quality control and foundry modernization. «Speaking of components supplies it would be strategically correct to sell this sort of production to China rather than supply it, - the expert believes. – Despite the fact that Ukraine in inferior to China in castings cost due to expensive energy carriers and working force, it would be more logical to launch the manufacturing on the current capacities there and develop it in Russia rather than transfer it to China».

Psychological attack or real business interests?

Frankly speaking, some experts admit a possibility that all this simply has to do with concentrated information pressure on the Russian and Ukrainian manufacturers to make them reduce cost, carry out a more reasonable pricing policy and improve production quality. In particular, Uralvagonzavod top-management has managed to persuade ОАО RZD that they reached a significant quality improvement. By 2010 the company will need 30 – 34 thousand rail car units annually, and by 2015 the intensity of the park renewal will reduce to 27 thousand per year.
Uralvagonzavod feels confident that it can satisfy ОАО RZD prospective orders. Moreover, in the near future the factory plans to supply railways with the new generation car with the life cycle of 32 years.
«We have no doubts the enterprise will solve the problem of low-quality and keep the leading position in cargo rail cars production, though in conditions of tough competition, - Vadim Morozov, OAO RZD Vice-President, summed up. - We are discussing the cost of gondola cars. RUR 1.45 mln per unit is very expensive in every respect. Our common task is to make suppliers reduce cost. If the price stays outrageous, ОАО RZD and any consumer will take a path to another factory».
Alternatively this path can bring to another country. Of course, these are only ideas and to implement them many problems are to be solved. However, there is a lot to think over, since there is no smoke without fire…

By Viktoria Merkusheva

our reference

Major gondola car producers in Russia are Uralvagonzavod JSC and OAO Altaivagon. However, Russian railways have closer relations with the Ural manufacturer. The corporation concluded several long-term contracts with the factory on development, production and supplies of different types of cargo rail cars. Several years ago, when the market started to grow intensively, OAO RZD required new gondola cars with better technical parameters, i.e. operation characteristics, longer operation periods etc. The company announced a tender which resulted in the fact that among Russian rail cars manufacturers there was only one enterprise capable to produce cars with the technical characteristics corresponding to the transportation process and in necessary volumes. This enterprise happened to be Uralvagonzavod. The model 12-132-03 was offered for consideration, since it was positioned as the unit with improved running capabilities between planned repairs procedures. If the pervious version showed the result of 210 thousand kilometers, the new model was constructed for a 500 thousand kilometers run without repair. Moreover, the lifecycle of the car was prolonged and stretched to 24 years, not 22 as before.
According to the general scheme of railway transport development, from 2004 the corporation has been purchasing rail cars from Uralvagonzavod. In 2004 and 2005, some 14 thousand units were purchased, in 2006 – 8 thousand, in 2007 – about 17 thousand units.
Having concluded the contract, the factory has significantly increased the production volume. Thus, in 2002 the enterprise produced 7178 units, and for 4 years the volume has grown by 100%. In 2006 the factory produced 15124 units. For the sake of comparison, the second largest rail cars manufacture OAO Altaivagon produced 7145 rail cars last year.

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Buyers Do not Dream

«There are only several manufactures in the CIS who actively contribute to rail car engineering business, -- Vladimir Yakunin, OAO RZD President emphasizes. – Taking advantage of their monopolistic position, they manufacture low quality production and try to supply it on high prices». As an example he quoted such Russian enterprise as Uralvagonzavod: when a carrier expresses its decision to enhance the car park, prices for the factory production jump up, though the quality remains the same. «We have two ways-out: the first one is to audit pricing at Uralvagonzavod with the help of the Federal Antimonopoly Service and the second is to purchase cars in China which are half as expensive and twice as good quality», - Vladimir Yakunin believes.
In particular, at the 46th session of the Union on Railway Transport of the CIS and Baltic countries held in May 2007, the participants made a decision to certify Chinese rail cars in Russia. The certification will be performed by the register of the Federal Agency of RF Railway Transport (Roszheldor). «Under conditions of submitting all the required documents and providing adequate conditions for Chinese cars to function on the Russian railways the procedure won’t take long», Igor Romashev, the Head of Roszheldor, commented. There are about ten manufacturers in China who specialize in rail cars production. It has not been announced yet whose production is to be certified in Russia.
Belarus railway (BR) also announced its plan to purchase 2 thousand rail cars in China. «Nowadays we have to purchase Russian costly production, thus, a Russian gondola car costs about USD 50 thousand, whereas a Chinese unit is only USD 20 thousand, - First Deputy of BR Vladimir Laptinsky stated. - At the same time the Russian unit speed totals 110 km/h and the Chinese one - 160 km/h». BR representatives also add that rolling stock purchase from Chinese manufacturers will be tender-based and possible under condition that the cars are certified by the Register of Certification for the federal railway transport of the RF. Railcars of BR are used on the CIS and Baltic railways, that is why they are to correspond to the unified normative-technical standards set by clause 1 of «Agreement of joint use of cargo rail cars and containers of the states-participants of the CIS, Azerbaijan Republic, Georgia Republic, Latvian Republic, Lithuanian Republic and Estonian Republic» effective from 22.01.1993 and signed by the governments of the states.
Last year the Ukrainian carrier Ukrzaliznitsya declared its plan to purchase Chinese rolling stock, explaining such decision by the high prices set by national car-manufacturers. However, according to Deputy CEO on Marketing of OAO Dneprovagonmash (Ukrainian car producer) Andrey Polyakov, when the economic calculations were completed, it appeared that the transport component in the Chinese car can be so high that this idea would better be forgotten, at least for that moment. The optimal way out was discovered through development of gondola cars manufacturing at car engineering plants belonging to Ukrzaliznitsya». «The situation looks different for OAO RZD, - A.Polyakov commented. – In this case the transport component will be minimal since prices set for Chinese cars seem attractive compared to those of the CIS».
The problem of rolling stock park renewal is crucial for Kazakhstan Republic as well. Thus, the national company of Kazakhstan АО Kazakhstan Temir Zholy has already concluded the contract for manufacture and deliver of 152 passenger rail cars produced by Tanshan plant. «This decision was based on the fact that Tanshan state plant uses state and sector standards corresponding to international norms. We also were satisfied with the offered prices, - the First Vice-President of the enterprise Kazhmurat Nagmanov reported. - Now, due to an insignificant period of Chinese cars exploitation, it is quite hard to characterize any peculiarities of technical employment and repair of these cars». In Kazhmurat Nagmanov’s words, in respect of cargo rail cars, Kazakh experts started to research the Chinese manufacturers market. It is quite obvious that potential buyers pass from words to the implementation of their plans.
Forwarding companies functioning on Kazakhstan market consider the initiative of the Union of the Railway Transport of the CIS and Baltic countries on Chinese rail cars certification quite reasonable. «For the last 10-15 years rolling stock has not been renewed in the CIS and its operation life came to the end, - MEK Transsystem CEO Larisa Smirnova says. – Economical development and respective need in cargo transportation enhanced demand for rail cars. However, the productive capacities of the Russian and Ukrainian car engineering plants stayed at the same level. In our opinion, in the near future the tendency of high demand on rail cars will be only developing. In this situation the arrival of a new cars manufacturer who is able to keep 1520 mm gauge standard is not only welcome but obligatory. This will allow to balance the market and reduce the rail car price which has jumped threefold in the last five years».

We will destroy this monopoly

The situation on the Russian market when the only monopolistic enterprise makes OAO RZD purchase its major volume of gondola cars from Uralvagonzavod, which takes over 62% of the Russian and CIS market, is very favourable for the factory, though extremely unfavourable for OAO RZD. The current situation resulted in the fact that the factory started to manufacture production of low quality which does not meet the sector standards. In February 2007, the sector witnessed a scandal when over 14 thousand gondola cars of 12-132-03 model produced by Uralvagonzavod in 2004-2005 were taken out of operation to undergo unplanned technical control. This urgent step was taken due to the number of derailments that occurred in 2006-2007. Problems with cars resulted from breaking the technological norms during their manufacturing at the factory. Moreover, in 2006 low quality cars were transferred to current repair 16.5 thousand times.
«Nobody was ready for such situation, - Vadim Morozov, OAO RZD Vice-President stated, - all this damaged our sector functioning significantly. Cast details which are to be in use for 32 years haven’t functioned even for year and a half!» As a result to save its current park, OAO RZD accumulated all the available resources. Wagon depots worked day-and-night inspecting 315 gondola cars per day. Consequently, during this period the repair work of other car types belonging both to OAO RZD and to private operators was stopped. In the course of inspection OAO RZD experts discovered defects in each tenth car.
It is obvious the time has come to think over a diversification of purchasing policy. In accordance with the investment programme of OAO RZD, in the next few years it is planned to acquire about 10 thousand gondola cars per year. If Uralvagonzavod remains the monopolist, the February crisis is likely to repeat. In the words of Valentin Gapanovich, OAO RZD Vice-President, the situation makes the corporation seek alternative suppliers of rolling stock. After the arrival of several car engineering manufacturers, their production will become cheaper and buyers will have the opportunity to choose at last. «If our manufacturers are not ready to listen to what we have been trying to tell them for many years, we will destroy this monopoly ourselves», - Vladimir Yakunin, OAO RZD President, stated demonstrating the corporation plans to certify Chinese rolling stock.

Chinese Rolling Stock: Pro and Contra

Quite possibly OAO Ruzkhimmash and OAO Altaivagon can become OAO RZD suppliers. It is not excluded that under support of OAO RZD, by the end of 2007, in Russia three new car engineering plants will be launched. By 2008 they will be able to reach the acceptable for the company production volumes worth 20-30 thousand gondola cars per year, since they are launched on the basis of the presently acting enterprises. Thus, the first project is OAO RZD and Cheboksary Promtractor JSC joint venture - Promtractor-wagon JSC. Last year Promtractor-wagon concluded a contract with the Japanese company Nippon Sharyo on designing the technology for new-generation gondola cars manufacturing. By the end of the year the enterprise will produce the first models developed within OAO RZD project on the basis of Japanese technologies. After reaching the planned capacities by 2010, the joint-venture will produce the annual volume of 7 thousand units. Moreover, negotiations between OAO RZD and Mordovia Car Engineering Company are under way in respect of reaching the annual production volume of 9 thousand units per year.
Transport experts take Chinese cars arrival as a positive tendency, though they stress the fact that the idea’s success will depend on the time when the rolling stock reaches the market in reality. «Russian industry manufactures about 50 thousand units per year,– Yuri Saakyan, CEO of the Russian Institute of Natural Monopolies Problems, says.– According to our calculations, following such rates we are to satisfy the market by 2015. That is why Chinese production can be interesting only from the financial point of view». The expert says that the competitiveness of the Chinese machinery is provided by the state support when budget investments, including those for new technology development, are out of the prime-cost of production.
«The most interesting fact is that Chinese machinery delivery to Russia is a modified form of re-export, - Alexander Bityutsky, Director of Engineering Center of the RF Rail Cars Engineers Union, stated. – In the past we gave them design. At the end of the 1980s Altaisky and Kremenchugsky plants closely cooperated with China. Enterprises did their best to supply China with rail cars. That is why what they offer us now is what was developed in our design offices not long ago. The matter is they were developed for another market and are not suitable for us in terms of consumer characteristics».
Now, let’s turn to what car engineering plants think in this respect. The problem is to arise, if ОАО RZD takes the announced step. «We will compete with Chinese manufacturers and improve our production quality, - Boris Mineyev, the Head of PR Department of Uralvagonzavod, says. – Of course, China has more favourable technological opportunities and we are short of financial resources required to enhance productive capacities of the enterprise». Dneprovagonmash factory shares the opinion that Chinese production and Chinese dumping price will make the national car manufacturers develop a new strategy and tactics both for production and pricing. «All over the world a reasonable protectionist policy for national manufacture support is carried out. This is typical of many international markets and does not contradict market laws, - A.Polyakov comments – It would be much more logical to invest into the national production and develop domestic competition rather than enhance the neighbor’s prosperity». He also added that domestic competition on the post-Soviet arena is not an illusion any longer, but everyday reality. Thus, for example, Ukrainian and Russian producers compete, as well as those who work within one domestic market.
A.Polyakov mentioned that, when contacting some African railway businessmen, Dneprovagonmash experts received not very positive remarks about Chinese production quality. First of all, this had to do with cast and rolled-metal quality.
«The USSR purchased and used Polish and Finnish cargo rail cars, - I.Chiganashkina, Technical Director of OAO DVTG, claims. Czechoslovakia and Poland delivered components for cargo cars (bearings, wheels etc). Their efforts to reach the Russian market again were observed not long ago. However, the Ministry of Railways and Communication and OAO RZD conservatism, as well as lobbying their specific interests by the national manufacturers prevented not only cargo cars but their components as well from certification». In her opinion, such policy blocks the opportunity to attract competitive production to the Russian market, which results in deficit of productive capacities. «I feel disappointed about the fact that the RF rail cars manufacturers are not interested in new competitors’ arrival and they will only be preventing certification of foreign cars. Nowadays the car engineering specialist can be interested in certification of only import components (cast, wheels axels etc)», I.Chiganashkina asserts.
Such position is quite understandable since, having no Russian business support, they risk to stay out of work. «I do not believe the question of what rail cars to purchase, Russian or Chinese, will be put so flatly, - L.Smirnova remarks. – We should not forget about the fact that Chinese production will include the cost of delivery and customs duties». Moreover, if China carries out dumping policy to enter the market, our state can introduce special protective measures».
«Speaking of the national manufacturer support, there is no reason to support lack of quality, - I.Chiganashkina believes, - I do hope the competition will push our producers to improve quality and reduce the prime-cost». «In fact the procedure of certification of the ultimate product and the term of the latter’s delivery to the domestic market is adequate to the terms of our own capacities development», - Andrey Gorlenko, Deputy CEO on Development of Independent Transport Company, states. In his words, considering the scale of the domestic market and the state development prospects, the key priority is to be given to the Russian car engineering sector development, as well as setting the stable cooperation between car manufacturers and their sub-suppliers in the CIS.
Generally speaking, the majority of operators in Russia and the CIS are looking forward to Chinese production certification. «Last year the prices for car engineering plants production have grown by 40%, whereas the profitability of gondola cars transportation, even considering the rise of the car component that occurred early in 2007, has increased by only 15-18%, - Valery Shpakov, CEO of Novaya Perevozochnaya Company, noticed. In such conditions it is unprofitable to purchase new gondola cars. That is why alternative manufacturers’ arrival can become the solution. The national factories give us no choice».
DVTG is also ready to purchase foreign rolling stock. «I wish everybody who offers quality and competitive production to the market players would be able to do this facing no problems – I.Chiganashkina said. – Also, I wish Chinese cars arrival in the period of crucial deficit would not be the only phenomenon of this sort. The market is formed when everybody is able to join».
«We think that independently of the country-producer rail cars are able to and must work within 1520 area under conditions of their certification in accordance with norms set for the state-participants of the Union on Railway Transport of the CIS and Baltic countries», - L.Smirnova agreed and added that her company will consider purchase of Chinese rolling stock and components if the proportion price-quality is reasonable. «It would be nice if Chinese cars are constructed in the Russian or Ukrainian designs, which will make it easier to repair the rolling stock in future, - L.Smirnova remarked. – In this case the only problem which may arise while using the units is the quality of cars themselves, as well as the moulded pieces of their boogies».
It is quite hard to predict how realistic this wish is, though it makes sense. It is not excluded that, having decided to save money, buyers will have more troubles instead. Thus, I.Chiganashkina expressed the idea that the major problems may concern guarantee obligations of the Chinese plants. «When an unplanned cut of rail car occurs, ОАО RZD specialists often can not locate the problem precisely and long distance, as well as the language barrier, may lead to their inability to work out an operative and efficient solution, - she added. - In the future we hope service centers will be organized and qualified staff hired, but this will happen only when we have to sort out the initial problems of this sort. All these details are to be thought over in a systemic way and in the focus of problems typical of the national rolling stock».
Dneprovagonmash experts pointed out one more problem to consider, i.e. Chinese production adaptation to the operation condition of the CIS railways. «It is impossible to judge how efficient, reliable and safe this rolling stock will be without trial-runs on the polygons or in real conditions. However, considering our experience of using Chinese machinery, I would say a certain amount of problem concerning quality will have to arise», - A.Polyakov warned. He also emphasized another significant fact that rolling stock purchase in China may bring the sector into a long-term dependence on Chinese components manufacturer.

Not Only About Rail Cars

It has to be mentioned that China seems attractive to Russia and the CIS not only in respect of cargo rail cars. There is another significant problem that has to do with the castings required to provide for demands of car repair complexes. In V.Gapanovich’s opinion, this problem is of systemic nature due to an incorrect repair policy carried out in the past, which resulted in the accumulation of 120 thousand of overdue moulded pieces.
According to experts of the Central Direction of Cargo Cars Repair, in the next two-three years the company has no opportunity to satisfy demand in castings of the Russian enterprises. That is the reason why car repair complex will be trying to fill up the deficit with the help of its own resources and consider the plan to purchase moulded pieces from private car repair enterprises.
In this respect Roszheldorsnab has initiated negotiations with the Russian dealer of Siminvest Kremechugsky factory on supply of chassis and beams for ОАО RZD. However, V.Gapanovich claims that an opportunity to conclude a contract with Chinese companies is also considered.
Many Russian operators believe that the launch of components production in China is a highly perspective business. However, opposite opinions can also be found. Thus, Sevastian Kozitsyn, an expert of BrokerCreditService Group of Companies, asserts that problems of Uralvagonzavod are of a temporary sort due to the fact that the Ural enterprise has been investing heavily into systems of production quality control and foundry modernization. «Speaking of components supplies it would be strategically correct to sell this sort of production to China rather than supply it, - the expert believes. – Despite the fact that Ukraine in inferior to China in castings cost due to expensive energy carriers and working force, it would be more logical to launch the manufacturing on the current capacities there and develop it in Russia rather than transfer it to China».

Psychological attack or real business interests?

Frankly speaking, some experts admit a possibility that all this simply has to do with concentrated information pressure on the Russian and Ukrainian manufacturers to make them reduce cost, carry out a more reasonable pricing policy and improve production quality. In particular, Uralvagonzavod top-management has managed to persuade ОАО RZD that they reached a significant quality improvement. By 2010 the company will need 30 – 34 thousand rail car units annually, and by 2015 the intensity of the park renewal will reduce to 27 thousand per year.
Uralvagonzavod feels confident that it can satisfy ОАО RZD prospective orders. Moreover, in the near future the factory plans to supply railways with the new generation car with the life cycle of 32 years.
«We have no doubts the enterprise will solve the problem of low-quality and keep the leading position in cargo rail cars production, though in conditions of tough competition, - Vadim Morozov, OAO RZD Vice-President, summed up. - We are discussing the cost of gondola cars. RUR 1.45 mln per unit is very expensive in every respect. Our common task is to make suppliers reduce cost. If the price stays outrageous, ОАО RZD and any consumer will take a path to another factory».
Alternatively this path can bring to another country. Of course, these are only ideas and to implement them many problems are to be solved. However, there is a lot to think over, since there is no smoke without fire…

By Viktoria Merkusheva

our reference

Major gondola car producers in Russia are Uralvagonzavod JSC and OAO Altaivagon. However, Russian railways have closer relations with the Ural manufacturer. The corporation concluded several long-term contracts with the factory on development, production and supplies of different types of cargo rail cars. Several years ago, when the market started to grow intensively, OAO RZD required new gondola cars with better technical parameters, i.e. operation characteristics, longer operation periods etc. The company announced a tender which resulted in the fact that among Russian rail cars manufacturers there was only one enterprise capable to produce cars with the technical characteristics corresponding to the transportation process and in necessary volumes. This enterprise happened to be Uralvagonzavod. The model 12-132-03 was offered for consideration, since it was positioned as the unit with improved running capabilities between planned repairs procedures. If the pervious version showed the result of 210 thousand kilometers, the new model was constructed for a 500 thousand kilometers run without repair. Moreover, the lifecycle of the car was prolonged and stretched to 24 years, not 22 as before.
According to the general scheme of railway transport development, from 2004 the corporation has been purchasing rail cars from Uralvagonzavod. In 2004 and 2005, some 14 thousand units were purchased, in 2006 – 8 thousand, in 2007 – about 17 thousand units.
Having concluded the contract, the factory has significantly increased the production volume. Thus, in 2002 the enterprise produced 7178 units, and for 4 years the volume has grown by 100%. In 2006 the factory produced 15124 units. For the sake of comparison, the second largest rail cars manufacture OAO Altaivagon produced 7145 rail cars last year.

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Chinese rolling stock seems to be more and more attractive for OAO RZD, АО Kazakhstan Temir Zholy and Belarus railway. The major reason for that is the monopoly set by several enterprises on the market of rail car engineering which results in high prices, low quality and rolling stock deficit. [~PREVIEW_TEXT] =>

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Buyers Do not Dream

«There are only several manufactures in the CIS who actively contribute to rail car engineering business, -- Vladimir Yakunin, OAO RZD President emphasizes. – Taking advantage of their monopolistic position, they manufacture low quality production and try to supply it on high prices». As an example he quoted such Russian enterprise as Uralvagonzavod: when a carrier expresses its decision to enhance the car park, prices for the factory production jump up, though the quality remains the same. «We have two ways-out: the first one is to audit pricing at Uralvagonzavod with the help of the Federal Antimonopoly Service and the second is to purchase cars in China which are half as expensive and twice as good quality», - Vladimir Yakunin believes.
In particular, at the 46th session of the Union on Railway Transport of the CIS and Baltic countries held in May 2007, the participants made a decision to certify Chinese rail cars in Russia. The certification will be performed by the register of the Federal Agency of RF Railway Transport (Roszheldor). «Under conditions of submitting all the required documents and providing adequate conditions for Chinese cars to function on the Russian railways the procedure won’t take long», Igor Romashev, the Head of Roszheldor, commented. There are about ten manufacturers in China who specialize in rail cars production. It has not been announced yet whose production is to be certified in Russia.
Belarus railway (BR) also announced its plan to purchase 2 thousand rail cars in China. «Nowadays we have to purchase Russian costly production, thus, a Russian gondola car costs about USD 50 thousand, whereas a Chinese unit is only USD 20 thousand, - First Deputy of BR Vladimir Laptinsky stated. - At the same time the Russian unit speed totals 110 km/h and the Chinese one - 160 km/h». BR representatives also add that rolling stock purchase from Chinese manufacturers will be tender-based and possible under condition that the cars are certified by the Register of Certification for the federal railway transport of the RF. Railcars of BR are used on the CIS and Baltic railways, that is why they are to correspond to the unified normative-technical standards set by clause 1 of «Agreement of joint use of cargo rail cars and containers of the states-participants of the CIS, Azerbaijan Republic, Georgia Republic, Latvian Republic, Lithuanian Republic and Estonian Republic» effective from 22.01.1993 and signed by the governments of the states.
Last year the Ukrainian carrier Ukrzaliznitsya declared its plan to purchase Chinese rolling stock, explaining such decision by the high prices set by national car-manufacturers. However, according to Deputy CEO on Marketing of OAO Dneprovagonmash (Ukrainian car producer) Andrey Polyakov, when the economic calculations were completed, it appeared that the transport component in the Chinese car can be so high that this idea would better be forgotten, at least for that moment. The optimal way out was discovered through development of gondola cars manufacturing at car engineering plants belonging to Ukrzaliznitsya». «The situation looks different for OAO RZD, - A.Polyakov commented. – In this case the transport component will be minimal since prices set for Chinese cars seem attractive compared to those of the CIS».
The problem of rolling stock park renewal is crucial for Kazakhstan Republic as well. Thus, the national company of Kazakhstan АО Kazakhstan Temir Zholy has already concluded the contract for manufacture and deliver of 152 passenger rail cars produced by Tanshan plant. «This decision was based on the fact that Tanshan state plant uses state and sector standards corresponding to international norms. We also were satisfied with the offered prices, - the First Vice-President of the enterprise Kazhmurat Nagmanov reported. - Now, due to an insignificant period of Chinese cars exploitation, it is quite hard to characterize any peculiarities of technical employment and repair of these cars». In Kazhmurat Nagmanov’s words, in respect of cargo rail cars, Kazakh experts started to research the Chinese manufacturers market. It is quite obvious that potential buyers pass from words to the implementation of their plans.
Forwarding companies functioning on Kazakhstan market consider the initiative of the Union of the Railway Transport of the CIS and Baltic countries on Chinese rail cars certification quite reasonable. «For the last 10-15 years rolling stock has not been renewed in the CIS and its operation life came to the end, - MEK Transsystem CEO Larisa Smirnova says. – Economical development and respective need in cargo transportation enhanced demand for rail cars. However, the productive capacities of the Russian and Ukrainian car engineering plants stayed at the same level. In our opinion, in the near future the tendency of high demand on rail cars will be only developing. In this situation the arrival of a new cars manufacturer who is able to keep 1520 mm gauge standard is not only welcome but obligatory. This will allow to balance the market and reduce the rail car price which has jumped threefold in the last five years».

We will destroy this monopoly

The situation on the Russian market when the only monopolistic enterprise makes OAO RZD purchase its major volume of gondola cars from Uralvagonzavod, which takes over 62% of the Russian and CIS market, is very favourable for the factory, though extremely unfavourable for OAO RZD. The current situation resulted in the fact that the factory started to manufacture production of low quality which does not meet the sector standards. In February 2007, the sector witnessed a scandal when over 14 thousand gondola cars of 12-132-03 model produced by Uralvagonzavod in 2004-2005 were taken out of operation to undergo unplanned technical control. This urgent step was taken due to the number of derailments that occurred in 2006-2007. Problems with cars resulted from breaking the technological norms during their manufacturing at the factory. Moreover, in 2006 low quality cars were transferred to current repair 16.5 thousand times.
«Nobody was ready for such situation, - Vadim Morozov, OAO RZD Vice-President stated, - all this damaged our sector functioning significantly. Cast details which are to be in use for 32 years haven’t functioned even for year and a half!» As a result to save its current park, OAO RZD accumulated all the available resources. Wagon depots worked day-and-night inspecting 315 gondola cars per day. Consequently, during this period the repair work of other car types belonging both to OAO RZD and to private operators was stopped. In the course of inspection OAO RZD experts discovered defects in each tenth car.
It is obvious the time has come to think over a diversification of purchasing policy. In accordance with the investment programme of OAO RZD, in the next few years it is planned to acquire about 10 thousand gondola cars per year. If Uralvagonzavod remains the monopolist, the February crisis is likely to repeat. In the words of Valentin Gapanovich, OAO RZD Vice-President, the situation makes the corporation seek alternative suppliers of rolling stock. After the arrival of several car engineering manufacturers, their production will become cheaper and buyers will have the opportunity to choose at last. «If our manufacturers are not ready to listen to what we have been trying to tell them for many years, we will destroy this monopoly ourselves», - Vladimir Yakunin, OAO RZD President, stated demonstrating the corporation plans to certify Chinese rolling stock.

Chinese Rolling Stock: Pro and Contra

Quite possibly OAO Ruzkhimmash and OAO Altaivagon can become OAO RZD suppliers. It is not excluded that under support of OAO RZD, by the end of 2007, in Russia three new car engineering plants will be launched. By 2008 they will be able to reach the acceptable for the company production volumes worth 20-30 thousand gondola cars per year, since they are launched on the basis of the presently acting enterprises. Thus, the first project is OAO RZD and Cheboksary Promtractor JSC joint venture - Promtractor-wagon JSC. Last year Promtractor-wagon concluded a contract with the Japanese company Nippon Sharyo on designing the technology for new-generation gondola cars manufacturing. By the end of the year the enterprise will produce the first models developed within OAO RZD project on the basis of Japanese technologies. After reaching the planned capacities by 2010, the joint-venture will produce the annual volume of 7 thousand units. Moreover, negotiations between OAO RZD and Mordovia Car Engineering Company are under way in respect of reaching the annual production volume of 9 thousand units per year.
Transport experts take Chinese cars arrival as a positive tendency, though they stress the fact that the idea’s success will depend on the time when the rolling stock reaches the market in reality. «Russian industry manufactures about 50 thousand units per year,– Yuri Saakyan, CEO of the Russian Institute of Natural Monopolies Problems, says.– According to our calculations, following such rates we are to satisfy the market by 2015. That is why Chinese production can be interesting only from the financial point of view». The expert says that the competitiveness of the Chinese machinery is provided by the state support when budget investments, including those for new technology development, are out of the prime-cost of production.
«The most interesting fact is that Chinese machinery delivery to Russia is a modified form of re-export, - Alexander Bityutsky, Director of Engineering Center of the RF Rail Cars Engineers Union, stated. – In the past we gave them design. At the end of the 1980s Altaisky and Kremenchugsky plants closely cooperated with China. Enterprises did their best to supply China with rail cars. That is why what they offer us now is what was developed in our design offices not long ago. The matter is they were developed for another market and are not suitable for us in terms of consumer characteristics».
Now, let’s turn to what car engineering plants think in this respect. The problem is to arise, if ОАО RZD takes the announced step. «We will compete with Chinese manufacturers and improve our production quality, - Boris Mineyev, the Head of PR Department of Uralvagonzavod, says. – Of course, China has more favourable technological opportunities and we are short of financial resources required to enhance productive capacities of the enterprise». Dneprovagonmash factory shares the opinion that Chinese production and Chinese dumping price will make the national car manufacturers develop a new strategy and tactics both for production and pricing. «All over the world a reasonable protectionist policy for national manufacture support is carried out. This is typical of many international markets and does not contradict market laws, - A.Polyakov comments – It would be much more logical to invest into the national production and develop domestic competition rather than enhance the neighbor’s prosperity». He also added that domestic competition on the post-Soviet arena is not an illusion any longer, but everyday reality. Thus, for example, Ukrainian and Russian producers compete, as well as those who work within one domestic market.
A.Polyakov mentioned that, when contacting some African railway businessmen, Dneprovagonmash experts received not very positive remarks about Chinese production quality. First of all, this had to do with cast and rolled-metal quality.
«The USSR purchased and used Polish and Finnish cargo rail cars, - I.Chiganashkina, Technical Director of OAO DVTG, claims. Czechoslovakia and Poland delivered components for cargo cars (bearings, wheels etc). Their efforts to reach the Russian market again were observed not long ago. However, the Ministry of Railways and Communication and OAO RZD conservatism, as well as lobbying their specific interests by the national manufacturers prevented not only cargo cars but their components as well from certification». In her opinion, such policy blocks the opportunity to attract competitive production to the Russian market, which results in deficit of productive capacities. «I feel disappointed about the fact that the RF rail cars manufacturers are not interested in new competitors’ arrival and they will only be preventing certification of foreign cars. Nowadays the car engineering specialist can be interested in certification of only import components (cast, wheels axels etc)», I.Chiganashkina asserts.
Such position is quite understandable since, having no Russian business support, they risk to stay out of work. «I do not believe the question of what rail cars to purchase, Russian or Chinese, will be put so flatly, - L.Smirnova remarks. – We should not forget about the fact that Chinese production will include the cost of delivery and customs duties». Moreover, if China carries out dumping policy to enter the market, our state can introduce special protective measures».
«Speaking of the national manufacturer support, there is no reason to support lack of quality, - I.Chiganashkina believes, - I do hope the competition will push our producers to improve quality and reduce the prime-cost». «In fact the procedure of certification of the ultimate product and the term of the latter’s delivery to the domestic market is adequate to the terms of our own capacities development», - Andrey Gorlenko, Deputy CEO on Development of Independent Transport Company, states. In his words, considering the scale of the domestic market and the state development prospects, the key priority is to be given to the Russian car engineering sector development, as well as setting the stable cooperation between car manufacturers and their sub-suppliers in the CIS.
Generally speaking, the majority of operators in Russia and the CIS are looking forward to Chinese production certification. «Last year the prices for car engineering plants production have grown by 40%, whereas the profitability of gondola cars transportation, even considering the rise of the car component that occurred early in 2007, has increased by only 15-18%, - Valery Shpakov, CEO of Novaya Perevozochnaya Company, noticed. In such conditions it is unprofitable to purchase new gondola cars. That is why alternative manufacturers’ arrival can become the solution. The national factories give us no choice».
DVTG is also ready to purchase foreign rolling stock. «I wish everybody who offers quality and competitive production to the market players would be able to do this facing no problems – I.Chiganashkina said. – Also, I wish Chinese cars arrival in the period of crucial deficit would not be the only phenomenon of this sort. The market is formed when everybody is able to join».
«We think that independently of the country-producer rail cars are able to and must work within 1520 area under conditions of their certification in accordance with norms set for the state-participants of the Union on Railway Transport of the CIS and Baltic countries», - L.Smirnova agreed and added that her company will consider purchase of Chinese rolling stock and components if the proportion price-quality is reasonable. «It would be nice if Chinese cars are constructed in the Russian or Ukrainian designs, which will make it easier to repair the rolling stock in future, - L.Smirnova remarked. – In this case the only problem which may arise while using the units is the quality of cars themselves, as well as the moulded pieces of their boogies».
It is quite hard to predict how realistic this wish is, though it makes sense. It is not excluded that, having decided to save money, buyers will have more troubles instead. Thus, I.Chiganashkina expressed the idea that the major problems may concern guarantee obligations of the Chinese plants. «When an unplanned cut of rail car occurs, ОАО RZD specialists often can not locate the problem precisely and long distance, as well as the language barrier, may lead to their inability to work out an operative and efficient solution, - she added. - In the future we hope service centers will be organized and qualified staff hired, but this will happen only when we have to sort out the initial problems of this sort. All these details are to be thought over in a systemic way and in the focus of problems typical of the national rolling stock».
Dneprovagonmash experts pointed out one more problem to consider, i.e. Chinese production adaptation to the operation condition of the CIS railways. «It is impossible to judge how efficient, reliable and safe this rolling stock will be without trial-runs on the polygons or in real conditions. However, considering our experience of using Chinese machinery, I would say a certain amount of problem concerning quality will have to arise», - A.Polyakov warned. He also emphasized another significant fact that rolling stock purchase in China may bring the sector into a long-term dependence on Chinese components manufacturer.

Not Only About Rail Cars

It has to be mentioned that China seems attractive to Russia and the CIS not only in respect of cargo rail cars. There is another significant problem that has to do with the castings required to provide for demands of car repair complexes. In V.Gapanovich’s opinion, this problem is of systemic nature due to an incorrect repair policy carried out in the past, which resulted in the accumulation of 120 thousand of overdue moulded pieces.
According to experts of the Central Direction of Cargo Cars Repair, in the next two-three years the company has no opportunity to satisfy demand in castings of the Russian enterprises. That is the reason why car repair complex will be trying to fill up the deficit with the help of its own resources and consider the plan to purchase moulded pieces from private car repair enterprises.
In this respect Roszheldorsnab has initiated negotiations with the Russian dealer of Siminvest Kremechugsky factory on supply of chassis and beams for ОАО RZD. However, V.Gapanovich claims that an opportunity to conclude a contract with Chinese companies is also considered.
Many Russian operators believe that the launch of components production in China is a highly perspective business. However, opposite opinions can also be found. Thus, Sevastian Kozitsyn, an expert of BrokerCreditService Group of Companies, asserts that problems of Uralvagonzavod are of a temporary sort due to the fact that the Ural enterprise has been investing heavily into systems of production quality control and foundry modernization. «Speaking of components supplies it would be strategically correct to sell this sort of production to China rather than supply it, - the expert believes. – Despite the fact that Ukraine in inferior to China in castings cost due to expensive energy carriers and working force, it would be more logical to launch the manufacturing on the current capacities there and develop it in Russia rather than transfer it to China».

Psychological attack or real business interests?

Frankly speaking, some experts admit a possibility that all this simply has to do with concentrated information pressure on the Russian and Ukrainian manufacturers to make them reduce cost, carry out a more reasonable pricing policy and improve production quality. In particular, Uralvagonzavod top-management has managed to persuade ОАО RZD that they reached a significant quality improvement. By 2010 the company will need 30 – 34 thousand rail car units annually, and by 2015 the intensity of the park renewal will reduce to 27 thousand per year.
Uralvagonzavod feels confident that it can satisfy ОАО RZD prospective orders. Moreover, in the near future the factory plans to supply railways with the new generation car with the life cycle of 32 years.
«We have no doubts the enterprise will solve the problem of low-quality and keep the leading position in cargo rail cars production, though in conditions of tough competition, - Vadim Morozov, OAO RZD Vice-President, summed up. - We are discussing the cost of gondola cars. RUR 1.45 mln per unit is very expensive in every respect. Our common task is to make suppliers reduce cost. If the price stays outrageous, ОАО RZD and any consumer will take a path to another factory».
Alternatively this path can bring to another country. Of course, these are only ideas and to implement them many problems are to be solved. However, there is a lot to think over, since there is no smoke without fire…

By Viktoria Merkusheva

our reference

Major gondola car producers in Russia are Uralvagonzavod JSC and OAO Altaivagon. However, Russian railways have closer relations with the Ural manufacturer. The corporation concluded several long-term contracts with the factory on development, production and supplies of different types of cargo rail cars. Several years ago, when the market started to grow intensively, OAO RZD required new gondola cars with better technical parameters, i.e. operation characteristics, longer operation periods etc. The company announced a tender which resulted in the fact that among Russian rail cars manufacturers there was only one enterprise capable to produce cars with the technical characteristics corresponding to the transportation process and in necessary volumes. This enterprise happened to be Uralvagonzavod. The model 12-132-03 was offered for consideration, since it was positioned as the unit with improved running capabilities between planned repairs procedures. If the pervious version showed the result of 210 thousand kilometers, the new model was constructed for a 500 thousand kilometers run without repair. Moreover, the lifecycle of the car was prolonged and stretched to 24 years, not 22 as before.
According to the general scheme of railway transport development, from 2004 the corporation has been purchasing rail cars from Uralvagonzavod. In 2004 and 2005, some 14 thousand units were purchased, in 2006 – 8 thousand, in 2007 – about 17 thousand units.
Having concluded the contract, the factory has significantly increased the production volume. Thus, in 2002 the enterprise produced 7178 units, and for 4 years the volume has grown by 100%. In 2006 the factory produced 15124 units. For the sake of comparison, the second largest rail cars manufacture OAO Altaivagon produced 7145 rail cars last year.

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Buyers Do not Dream

«There are only several manufactures in the CIS who actively contribute to rail car engineering business, -- Vladimir Yakunin, OAO RZD President emphasizes. – Taking advantage of their monopolistic position, they manufacture low quality production and try to supply it on high prices». As an example he quoted such Russian enterprise as Uralvagonzavod: when a carrier expresses its decision to enhance the car park, prices for the factory production jump up, though the quality remains the same. «We have two ways-out: the first one is to audit pricing at Uralvagonzavod with the help of the Federal Antimonopoly Service and the second is to purchase cars in China which are half as expensive and twice as good quality», - Vladimir Yakunin believes.
In particular, at the 46th session of the Union on Railway Transport of the CIS and Baltic countries held in May 2007, the participants made a decision to certify Chinese rail cars in Russia. The certification will be performed by the register of the Federal Agency of RF Railway Transport (Roszheldor). «Under conditions of submitting all the required documents and providing adequate conditions for Chinese cars to function on the Russian railways the procedure won’t take long», Igor Romashev, the Head of Roszheldor, commented. There are about ten manufacturers in China who specialize in rail cars production. It has not been announced yet whose production is to be certified in Russia.
Belarus railway (BR) also announced its plan to purchase 2 thousand rail cars in China. «Nowadays we have to purchase Russian costly production, thus, a Russian gondola car costs about USD 50 thousand, whereas a Chinese unit is only USD 20 thousand, - First Deputy of BR Vladimir Laptinsky stated. - At the same time the Russian unit speed totals 110 km/h and the Chinese one - 160 km/h». BR representatives also add that rolling stock purchase from Chinese manufacturers will be tender-based and possible under condition that the cars are certified by the Register of Certification for the federal railway transport of the RF. Railcars of BR are used on the CIS and Baltic railways, that is why they are to correspond to the unified normative-technical standards set by clause 1 of «Agreement of joint use of cargo rail cars and containers of the states-participants of the CIS, Azerbaijan Republic, Georgia Republic, Latvian Republic, Lithuanian Republic and Estonian Republic» effective from 22.01.1993 and signed by the governments of the states.
Last year the Ukrainian carrier Ukrzaliznitsya declared its plan to purchase Chinese rolling stock, explaining such decision by the high prices set by national car-manufacturers. However, according to Deputy CEO on Marketing of OAO Dneprovagonmash (Ukrainian car producer) Andrey Polyakov, when the economic calculations were completed, it appeared that the transport component in the Chinese car can be so high that this idea would better be forgotten, at least for that moment. The optimal way out was discovered through development of gondola cars manufacturing at car engineering plants belonging to Ukrzaliznitsya». «The situation looks different for OAO RZD, - A.Polyakov commented. – In this case the transport component will be minimal since prices set for Chinese cars seem attractive compared to those of the CIS».
The problem of rolling stock park renewal is crucial for Kazakhstan Republic as well. Thus, the national company of Kazakhstan АО Kazakhstan Temir Zholy has already concluded the contract for manufacture and deliver of 152 passenger rail cars produced by Tanshan plant. «This decision was based on the fact that Tanshan state plant uses state and sector standards corresponding to international norms. We also were satisfied with the offered prices, - the First Vice-President of the enterprise Kazhmurat Nagmanov reported. - Now, due to an insignificant period of Chinese cars exploitation, it is quite hard to characterize any peculiarities of technical employment and repair of these cars». In Kazhmurat Nagmanov’s words, in respect of cargo rail cars, Kazakh experts started to research the Chinese manufacturers market. It is quite obvious that potential buyers pass from words to the implementation of their plans.
Forwarding companies functioning on Kazakhstan market consider the initiative of the Union of the Railway Transport of the CIS and Baltic countries on Chinese rail cars certification quite reasonable. «For the last 10-15 years rolling stock has not been renewed in the CIS and its operation life came to the end, - MEK Transsystem CEO Larisa Smirnova says. – Economical development and respective need in cargo transportation enhanced demand for rail cars. However, the productive capacities of the Russian and Ukrainian car engineering plants stayed at the same level. In our opinion, in the near future the tendency of high demand on rail cars will be only developing. In this situation the arrival of a new cars manufacturer who is able to keep 1520 mm gauge standard is not only welcome but obligatory. This will allow to balance the market and reduce the rail car price which has jumped threefold in the last five years».

We will destroy this monopoly

The situation on the Russian market when the only monopolistic enterprise makes OAO RZD purchase its major volume of gondola cars from Uralvagonzavod, which takes over 62% of the Russian and CIS market, is very favourable for the factory, though extremely unfavourable for OAO RZD. The current situation resulted in the fact that the factory started to manufacture production of low quality which does not meet the sector standards. In February 2007, the sector witnessed a scandal when over 14 thousand gondola cars of 12-132-03 model produced by Uralvagonzavod in 2004-2005 were taken out of operation to undergo unplanned technical control. This urgent step was taken due to the number of derailments that occurred in 2006-2007. Problems with cars resulted from breaking the technological norms during their manufacturing at the factory. Moreover, in 2006 low quality cars were transferred to current repair 16.5 thousand times.
«Nobody was ready for such situation, - Vadim Morozov, OAO RZD Vice-President stated, - all this damaged our sector functioning significantly. Cast details which are to be in use for 32 years haven’t functioned even for year and a half!» As a result to save its current park, OAO RZD accumulated all the available resources. Wagon depots worked day-and-night inspecting 315 gondola cars per day. Consequently, during this period the repair work of other car types belonging both to OAO RZD and to private operators was stopped. In the course of inspection OAO RZD experts discovered defects in each tenth car.
It is obvious the time has come to think over a diversification of purchasing policy. In accordance with the investment programme of OAO RZD, in the next few years it is planned to acquire about 10 thousand gondola cars per year. If Uralvagonzavod remains the monopolist, the February crisis is likely to repeat. In the words of Valentin Gapanovich, OAO RZD Vice-President, the situation makes the corporation seek alternative suppliers of rolling stock. After the arrival of several car engineering manufacturers, their production will become cheaper and buyers will have the opportunity to choose at last. «If our manufacturers are not ready to listen to what we have been trying to tell them for many years, we will destroy this monopoly ourselves», - Vladimir Yakunin, OAO RZD President, stated demonstrating the corporation plans to certify Chinese rolling stock.

Chinese Rolling Stock: Pro and Contra

Quite possibly OAO Ruzkhimmash and OAO Altaivagon can become OAO RZD suppliers. It is not excluded that under support of OAO RZD, by the end of 2007, in Russia three new car engineering plants will be launched. By 2008 they will be able to reach the acceptable for the company production volumes worth 20-30 thousand gondola cars per year, since they are launched on the basis of the presently acting enterprises. Thus, the first project is OAO RZD and Cheboksary Promtractor JSC joint venture - Promtractor-wagon JSC. Last year Promtractor-wagon concluded a contract with the Japanese company Nippon Sharyo on designing the technology for new-generation gondola cars manufacturing. By the end of the year the enterprise will produce the first models developed within OAO RZD project on the basis of Japanese technologies. After reaching the planned capacities by 2010, the joint-venture will produce the annual volume of 7 thousand units. Moreover, negotiations between OAO RZD and Mordovia Car Engineering Company are under way in respect of reaching the annual production volume of 9 thousand units per year.
Transport experts take Chinese cars arrival as a positive tendency, though they stress the fact that the idea’s success will depend on the time when the rolling stock reaches the market in reality. «Russian industry manufactures about 50 thousand units per year,– Yuri Saakyan, CEO of the Russian Institute of Natural Monopolies Problems, says.– According to our calculations, following such rates we are to satisfy the market by 2015. That is why Chinese production can be interesting only from the financial point of view». The expert says that the competitiveness of the Chinese machinery is provided by the state support when budget investments, including those for new technology development, are out of the prime-cost of production.
«The most interesting fact is that Chinese machinery delivery to Russia is a modified form of re-export, - Alexander Bityutsky, Director of Engineering Center of the RF Rail Cars Engineers Union, stated. – In the past we gave them design. At the end of the 1980s Altaisky and Kremenchugsky plants closely cooperated with China. Enterprises did their best to supply China with rail cars. That is why what they offer us now is what was developed in our design offices not long ago. The matter is they were developed for another market and are not suitable for us in terms of consumer characteristics».
Now, let’s turn to what car engineering plants think in this respect. The problem is to arise, if ОАО RZD takes the announced step. «We will compete with Chinese manufacturers and improve our production quality, - Boris Mineyev, the Head of PR Department of Uralvagonzavod, says. – Of course, China has more favourable technological opportunities and we are short of financial resources required to enhance productive capacities of the enterprise». Dneprovagonmash factory shares the opinion that Chinese production and Chinese dumping price will make the national car manufacturers develop a new strategy and tactics both for production and pricing. «All over the world a reasonable protectionist policy for national manufacture support is carried out. This is typical of many international markets and does not contradict market laws, - A.Polyakov comments – It would be much more logical to invest into the national production and develop domestic competition rather than enhance the neighbor’s prosperity». He also added that domestic competition on the post-Soviet arena is not an illusion any longer, but everyday reality. Thus, for example, Ukrainian and Russian producers compete, as well as those who work within one domestic market.
A.Polyakov mentioned that, when contacting some African railway businessmen, Dneprovagonmash experts received not very positive remarks about Chinese production quality. First of all, this had to do with cast and rolled-metal quality.
«The USSR purchased and used Polish and Finnish cargo rail cars, - I.Chiganashkina, Technical Director of OAO DVTG, claims. Czechoslovakia and Poland delivered components for cargo cars (bearings, wheels etc). Their efforts to reach the Russian market again were observed not long ago. However, the Ministry of Railways and Communication and OAO RZD conservatism, as well as lobbying their specific interests by the national manufacturers prevented not only cargo cars but their components as well from certification». In her opinion, such policy blocks the opportunity to attract competitive production to the Russian market, which results in deficit of productive capacities. «I feel disappointed about the fact that the RF rail cars manufacturers are not interested in new competitors’ arrival and they will only be preventing certification of foreign cars. Nowadays the car engineering specialist can be interested in certification of only import components (cast, wheels axels etc)», I.Chiganashkina asserts.
Such position is quite understandable since, having no Russian business support, they risk to stay out of work. «I do not believe the question of what rail cars to purchase, Russian or Chinese, will be put so flatly, - L.Smirnova remarks. – We should not forget about the fact that Chinese production will include the cost of delivery and customs duties». Moreover, if China carries out dumping policy to enter the market, our state can introduce special protective measures».
«Speaking of the national manufacturer support, there is no reason to support lack of quality, - I.Chiganashkina believes, - I do hope the competition will push our producers to improve quality and reduce the prime-cost». «In fact the procedure of certification of the ultimate product and the term of the latter’s delivery to the domestic market is adequate to the terms of our own capacities development», - Andrey Gorlenko, Deputy CEO on Development of Independent Transport Company, states. In his words, considering the scale of the domestic market and the state development prospects, the key priority is to be given to the Russian car engineering sector development, as well as setting the stable cooperation between car manufacturers and their sub-suppliers in the CIS.
Generally speaking, the majority of operators in Russia and the CIS are looking forward to Chinese production certification. «Last year the prices for car engineering plants production have grown by 40%, whereas the profitability of gondola cars transportation, even considering the rise of the car component that occurred early in 2007, has increased by only 15-18%, - Valery Shpakov, CEO of Novaya Perevozochnaya Company, noticed. In such conditions it is unprofitable to purchase new gondola cars. That is why alternative manufacturers’ arrival can become the solution. The national factories give us no choice».
DVTG is also ready to purchase foreign rolling stock. «I wish everybody who offers quality and competitive production to the market players would be able to do this facing no problems – I.Chiganashkina said. – Also, I wish Chinese cars arrival in the period of crucial deficit would not be the only phenomenon of this sort. The market is formed when everybody is able to join».
«We think that independently of the country-producer rail cars are able to and must work within 1520 area under conditions of their certification in accordance with norms set for the state-participants of the Union on Railway Transport of the CIS and Baltic countries», - L.Smirnova agreed and added that her company will consider purchase of Chinese rolling stock and components if the proportion price-quality is reasonable. «It would be nice if Chinese cars are constructed in the Russian or Ukrainian designs, which will make it easier to repair the rolling stock in future, - L.Smirnova remarked. – In this case the only problem which may arise while using the units is the quality of cars themselves, as well as the moulded pieces of their boogies».
It is quite hard to predict how realistic this wish is, though it makes sense. It is not excluded that, having decided to save money, buyers will have more troubles instead. Thus, I.Chiganashkina expressed the idea that the major problems may concern guarantee obligations of the Chinese plants. «When an unplanned cut of rail car occurs, ОАО RZD specialists often can not locate the problem precisely and long distance, as well as the language barrier, may lead to their inability to work out an operative and efficient solution, - she added. - In the future we hope service centers will be organized and qualified staff hired, but this will happen only when we have to sort out the initial problems of this sort. All these details are to be thought over in a systemic way and in the focus of problems typical of the national rolling stock».
Dneprovagonmash experts pointed out one more problem to consider, i.e. Chinese production adaptation to the operation condition of the CIS railways. «It is impossible to judge how efficient, reliable and safe this rolling stock will be without trial-runs on the polygons or in real conditions. However, considering our experience of using Chinese machinery, I would say a certain amount of problem concerning quality will have to arise», - A.Polyakov warned. He also emphasized another significant fact that rolling stock purchase in China may bring the sector into a long-term dependence on Chinese components manufacturer.

Not Only About Rail Cars

It has to be mentioned that China seems attractive to Russia and the CIS not only in respect of cargo rail cars. There is another significant problem that has to do with the castings required to provide for demands of car repair complexes. In V.Gapanovich’s opinion, this problem is of systemic nature due to an incorrect repair policy carried out in the past, which resulted in the accumulation of 120 thousand of overdue moulded pieces.
According to experts of the Central Direction of Cargo Cars Repair, in the next two-three years the company has no opportunity to satisfy demand in castings of the Russian enterprises. That is the reason why car repair complex will be trying to fill up the deficit with the help of its own resources and consider the plan to purchase moulded pieces from private car repair enterprises.
In this respect Roszheldorsnab has initiated negotiations with the Russian dealer of Siminvest Kremechugsky factory on supply of chassis and beams for ОАО RZD. However, V.Gapanovich claims that an opportunity to conclude a contract with Chinese companies is also considered.
Many Russian operators believe that the launch of components production in China is a highly perspective business. However, opposite opinions can also be found. Thus, Sevastian Kozitsyn, an expert of BrokerCreditService Group of Companies, asserts that problems of Uralvagonzavod are of a temporary sort due to the fact that the Ural enterprise has been investing heavily into systems of production quality control and foundry modernization. «Speaking of components supplies it would be strategically correct to sell this sort of production to China rather than supply it, - the expert believes. – Despite the fact that Ukraine in inferior to China in castings cost due to expensive energy carriers and working force, it would be more logical to launch the manufacturing on the current capacities there and develop it in Russia rather than transfer it to China».

Psychological attack or real business interests?

Frankly speaking, some experts admit a possibility that all this simply has to do with concentrated information pressure on the Russian and Ukrainian manufacturers to make them reduce cost, carry out a more reasonable pricing policy and improve production quality. In particular, Uralvagonzavod top-management has managed to persuade ОАО RZD that they reached a significant quality improvement. By 2010 the company will need 30 – 34 thousand rail car units annually, and by 2015 the intensity of the park renewal will reduce to 27 thousand per year.
Uralvagonzavod feels confident that it can satisfy ОАО RZD prospective orders. Moreover, in the near future the factory plans to supply railways with the new generation car with the life cycle of 32 years.
«We have no doubts the enterprise will solve the problem of low-quality and keep the leading position in cargo rail cars production, though in conditions of tough competition, - Vadim Morozov, OAO RZD Vice-President, summed up. - We are discussing the cost of gondola cars. RUR 1.45 mln per unit is very expensive in every respect. Our common task is to make suppliers reduce cost. If the price stays outrageous, ОАО RZD and any consumer will take a path to another factory».
Alternatively this path can bring to another country. Of course, these are only ideas and to implement them many problems are to be solved. However, there is a lot to think over, since there is no smoke without fire…

By Viktoria Merkusheva

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Major gondola car producers in Russia are Uralvagonzavod JSC and OAO Altaivagon. However, Russian railways have closer relations with the Ural manufacturer. The corporation concluded several long-term contracts with the factory on development, production and supplies of different types of cargo rail cars. Several years ago, when the market started to grow intensively, OAO RZD required new gondola cars with better technical parameters, i.e. operation characteristics, longer operation periods etc. The company announced a tender which resulted in the fact that among Russian rail cars manufacturers there was only one enterprise capable to produce cars with the technical characteristics corresponding to the transportation process and in necessary volumes. This enterprise happened to be Uralvagonzavod. The model 12-132-03 was offered for consideration, since it was positioned as the unit with improved running capabilities between planned repairs procedures. If the pervious version showed the result of 210 thousand kilometers, the new model was constructed for a 500 thousand kilometers run without repair. Moreover, the lifecycle of the car was prolonged and stretched to 24 years, not 22 as before.
According to the general scheme of railway transport development, from 2004 the corporation has been purchasing rail cars from Uralvagonzavod. In 2004 and 2005, some 14 thousand units were purchased, in 2006 – 8 thousand, in 2007 – about 17 thousand units.
Having concluded the contract, the factory has significantly increased the production volume. Thus, in 2002 the enterprise produced 7178 units, and for 4 years the volume has grown by 100%. In 2006 the factory produced 15124 units. For the sake of comparison, the second largest rail cars manufacture OAO Altaivagon produced 7145 rail cars last year.

[DETAIL_TEXT_TYPE] => html [~DETAIL_TEXT_TYPE] => html [PREVIEW_TEXT] =>

Chinese rolling stock seems to be more and more attractive for OAO RZD, АО Kazakhstan Temir Zholy and Belarus railway. The major reason for that is the monopoly set by several enterprises on the market of rail car engineering which results in high prices, low quality and rolling stock deficit. [~PREVIEW_TEXT] =>

Kaido Simmermann: Our interests – Russia, Europe and China

In January 2007 the Ministry of Economic Affairs and Communications of Estonia paid USD 180 mln for 66% AS Eesti Raudtee shares (The Estonian Railways) to Baltic Rail Services OU (BRS) (see The RZD-Partner International №2, 2007). Later a new business-plan
was developed for the company. Kaido Simmermann, Chairman of the Board, comments on further functioning of AS Eesti Raudtee on the market.

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Container Train: Transportation from Finland to Moscow

A scheduled block train will start transporting freight regularly between Finland and Moscow. Delivery of containers, which takes only a day and a half from Helsinki to the heart of Moscow, is the outcome of an affort by many specialists, including railmen of the two states.

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New Brand of OAO RZD Reflects Its Ambitions Better

Last spring OAO Russian Railways presented its new logotype. The railmen of the world still hardly know the new brand; however, it will more fully reflect the Russian carrier’s transformation into an international holding transport company, which sets ambitious targets.

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Focus on Domestic Market

During six months of 2007 the transportation volume of OAO RZD exceeded 658 mln tons (+3.8% year-on-year). The planned volume was increased by 1.4%. Analyzing the company’s results for several recent years, the tendency of stable growth is obvious. It can be stated OAO RZD has been enhancing the cargo base. The cargo turnover grew by 8%, which is the record result compared to other modes of transport.

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panorama. company

KarakudukMunai, part of the LUKOIL Overseas group in Kazakhstan, put into operation a railway oil-loading rack with a tank farm. The capacity of the loading rack is 1 million tons of oil per year. The total cost of the facility is over USD 15 million. The general contractor was CaspyMunaiKurylys, a Kazakhstan company.

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NOT only Finland

There is a boom of ro-ro terminals construction in Russia. Only last year four projects were launched on the shore of the Baltic Sea. The local stevedoring companies argue that if all the terminals are built, the Finnish ports, via which 75% of imported vehicles are transported to Russia, will lose the car flow.

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Russian Sea Giant

At the end of June, the RF President Vladimir Putin signed a decree on the merge of two Russian shipping companies, OAO Sovcomflot and OAO Novorossiysk Sea Shipping Company (Novoship). The Government of the state was charged to complete all the necessary procedures for the merger by March 2008. This deal will be one of the largest corporate contracts of 2007 in the world tanker sector. Thus, there will soon appear a player on the international market that will become one of top five largest tanker transporters.

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3 (11) September-November 2007

Выпуск 3 (11) September-November 2007

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One-Stop Principle

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To Provide a Whole Supply Chain Management

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Buyers Do not Dream

We will destroy this monopoly

Chinese Rolling Stock: Pro and Contra

Not Only About Rail Cars

Psychological attack or real business interests?

our reference

Buyers Do not Dream

We will destroy this monopoly

Chinese Rolling Stock: Pro and Contra

Not Only About Rail Cars

Psychological attack or real business interests?

our reference

Buyers Do not Dream

We will destroy this monopoly

Chinese Rolling Stock: Pro and Contra

Not Only About Rail Cars

Psychological attack or real business interests?

our reference

Buyers Do not Dream

We will destroy this monopoly

Chinese Rolling Stock: Pro and Contra

Not Only About Rail Cars

Psychological attack or real business interests?

our reference

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To Get Money is Easy

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Container Turnover

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