Rail Garant publications

Reduce price pressure

13/12/12
With the development of the operators’ market, the problem of repair of rolling stock has become more urgent. According to analysts’ forecasts, the volume of demand for this market segment will increase incrementally, and this will increase the attractiveness of projects aimed at the expansion of production capacities. From this point of view the development of a car-repair division in Rail Garant Group is estimated by experts to be a very promising solution.

Feel the market needs

Let us remember that the first phase of the development of Rail Garant Group’s car-repair direction was the opening of a wagon wheel workshop in 2007. Over the last five years the annual capacity of this enterprise in the field of repairing wheel sets has reached 27.3 thousand. And a symbolic key was presented again in the town of Stary Oskol (the South-Eastern Railroad). The wagon repair depot was opened on the basis of the wagon wheel workshop on November 8. As Igor Levitin, the adviser of the President of the Russian Federation, noted at the official opening, it is a significant event for the industry. “With the increasing size of the fleet of cars, and the aging rolling stock, demands for repair services are increasing, and the key factors are the quality and the price, he explained. – The appearance of new players on the market who establish new, advanced enterprises undoubtedly has a positive effect for the whole system of cargo railroad transportation, as market participants consider the serious increase in the cost of depot repair to be a very important problem.” According to Levitin, increasing competition is the best way to stabilize price level
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However, it should be noted that potential customers of these enterprises can count not only on economic logic. The advanced equipment installed in production facilities allows carrying out all the necessary operations at a lower cost without degradation of the quality. As the director of the depot Konstantin Ivanov noted, Rail Garant Group administration stated the task to organize production corresponding to the highest standards. “Naturally, the most advanced solutions were implemented. Some technologies have no analogues in the wagon repair industry, he noted. – We were able to solve all the arising problems and execute operational commissioning in a short time thanks to close cooperation with our partners.”

No problems with orders in the future

To a large extent such operational efficiency is explained by the support of the regional authorities. Evgeniy Savchenko, the Governor of the Belgorod District, did not hide his satisfaction that this subject of the Russian Federation was chosen by Rail Garant Group as a site for the development of its wagon repair complex. “We understand that this is not only new workplaces, payments to the budget and investments in regional economy, he said. – Now repair of rolling stock can be carried out on the spot, instead of looking for opportunities in other regions.” It should be noted that this district provides not less than 40% of the total traffic by the South-Eastern Railroad and, of course, the foundation of a new depot will promote the optimization of the traffic situation in this area. Anatoly Volodko, the chief of the South-Eastern Railroad, noted the high level not only of production facilities but of the qualification of workers after a small tour of the workshops. “Some employees have significant experience at work on relevant railroad enterprises, and the training of local personnel obtaining education at the wagon repair depot is worthy of great praise, he said. I am sure you will have something to attract clients.” By the way, the first client appeared after a couple hours after the opening. K.Ivanov and Sergey Kaletin, the Deputy Director General for technical development, Chief Engineer of JSC Pervaya Gruzovaya Kompaniya, signed the agreement of intent in the field of carrying out repair of rail cars. Representatives of other market participants also show interest in cooperation, so there is no doubt that it will be soon converted in orders.

See the prospects

However, it is now obvious that RG management successfully entered into the appropriate trend. Four years ago it was not so explicit. “Of course, to enter the new market is always a risk, and in spite of all the calculations and justifications, some doubts take place until the last moment, Sergey Guschin, co-owner of the company, says. The wagon wheel workshop was a successful project, and we decided to do the next step. It’s wonderful that both partners and banks providing the necessary financial resources supported us. I think that demand for this depot will be high enough.” Indeed, according to the most conservative estimates, the total market will grow at least by 15-20% annually. It is quite natural to plan the further expansion of this division. The implementation of such plans coincides with the interests of the industry.

"RZD-Partner" №22