Brunswick Rail, Russia's leading private railcar operating lessor, announces today that it has purchased a fleet of over 2,000 new gondolas, bringing the Company’s total fleet to more than 20,000, the operator said Thursday.
Commenting on the milestone, Brunswick Rail CEO and managing partner Vladimir Lelekov said: “Since our inception in 2004, we have grown our fleet at a CAGR of more than 30%, and in the first three quarters of 2011 alone we have already increased the fleet size by close to 75%, giving us one of the fastest growing rail fleets in the Russian market.”
The new gondolas, which were manufactured by some of the largest Russian and Ukrainian suppliers in 2010 and 2011, further reduce the average age of Brunswick Rail’s fleet, which is already one of the youngest in Russia. The average age of Brunswick Rail’s fleet is 4.6 years, against a Russian industry average of close to 17 years, according to INFOLine estimates.
The purchase was financed by a combination of a 3-year finance lease from (OJSC) VTB Leasing, with an opportunity to extend the term to 10 years, and an additional loan provided by Raiffeisen Bank International AG and VTB Capital plc.
All the gondolas will be leased out to U-Trans, a transportation affiliate of the Zarechnaya Coal Company, under a 7-year operating lease contract, adding to Brunswick Rail’s growing portfolio of high-quality clients.
Viktor Arkhipov, head of coal trading at Zarechnaya, said: “We are pleased to have an opportunity to start working with Brunswick Rail ? a company with a strong reputation and a long track record of successfully serving many of Russia's leading companies. As a coal producer, Zarechnaya has significant cargo transportation needs, and Brunswick Rail’s model is the optimal solution for us.”
Lelekov added: “We believe that our independence as a company makes us an attractive buyer as well as an attractive lessor of railcars to Russia’s leading industrial and transportation companies. While we are delighted to have passed 20,000 railcars, we plan to continue to play an active role in the further consolidation of the Russian railway industry.”
Brunswick Rail is one of the leading Russian railcar operating lessors with a fleet of over 20,000 modern railcars. Independence, a strong strategic track record and in-depth market knowledge have allowed Brunswick Rail to earn its position as a reliable partner for many of Russia’s blue-chip industrial and transportation companies by helping them in meeting their growing transportation needs. The majority of Brunswick Rail's railcars are gondolas (68%) and mineral hoppers (18%), with box cars, universal platforms and tank cars making up the remainder (14%).
CJSC Coal company "Zarechnaya" is a leading Russian coal company, incorporating mining and other ancillary businesses. Zarechnaya includes 6 coal mines (3 operating and 3 under construction), a coal washing plant and a number of other ancillary businesses. Potential coal reserves amount to 1,986 mln tonnes, with a seam thickness of 1 – 5.3 metres. At present, the Company mines thermal and coking coal grades “G”, “D” and “Zh”. Zarechnaya exports more than 85% of production. The Company’s key customers are chemical-recovery, energy and other enterprises in more than 12 countries over the world, including Spain, the United Kingdom, the Netherlands and others.
Commenting on the milestone, Brunswick Rail CEO and managing partner Vladimir Lelekov said: “Since our inception in 2004, we have grown our fleet at a CAGR of more than 30%, and in the first three quarters of 2011 alone we have already increased the fleet size by close to 75%, giving us one of the fastest growing rail fleets in the Russian market.”
The new gondolas, which were manufactured by some of the largest Russian and Ukrainian suppliers in 2010 and 2011, further reduce the average age of Brunswick Rail’s fleet, which is already one of the youngest in Russia. The average age of Brunswick Rail’s fleet is 4.6 years, against a Russian industry average of close to 17 years, according to INFOLine estimates.
The purchase was financed by a combination of a 3-year finance lease from (OJSC) VTB Leasing, with an opportunity to extend the term to 10 years, and an additional loan provided by Raiffeisen Bank International AG and VTB Capital plc.
All the gondolas will be leased out to U-Trans, a transportation affiliate of the Zarechnaya Coal Company, under a 7-year operating lease contract, adding to Brunswick Rail’s growing portfolio of high-quality clients.
Viktor Arkhipov, head of coal trading at Zarechnaya, said: “We are pleased to have an opportunity to start working with Brunswick Rail ? a company with a strong reputation and a long track record of successfully serving many of Russia's leading companies. As a coal producer, Zarechnaya has significant cargo transportation needs, and Brunswick Rail’s model is the optimal solution for us.”
Lelekov added: “We believe that our independence as a company makes us an attractive buyer as well as an attractive lessor of railcars to Russia’s leading industrial and transportation companies. While we are delighted to have passed 20,000 railcars, we plan to continue to play an active role in the further consolidation of the Russian railway industry.”
Brunswick Rail is one of the leading Russian railcar operating lessors with a fleet of over 20,000 modern railcars. Independence, a strong strategic track record and in-depth market knowledge have allowed Brunswick Rail to earn its position as a reliable partner for many of Russia’s blue-chip industrial and transportation companies by helping them in meeting their growing transportation needs. The majority of Brunswick Rail's railcars are gondolas (68%) and mineral hoppers (18%), with box cars, universal platforms and tank cars making up the remainder (14%).
CJSC Coal company "Zarechnaya" is a leading Russian coal company, incorporating mining and other ancillary businesses. Zarechnaya includes 6 coal mines (3 operating and 3 under construction), a coal washing plant and a number of other ancillary businesses. Potential coal reserves amount to 1,986 mln tonnes, with a seam thickness of 1 – 5.3 metres. At present, the Company mines thermal and coking coal grades “G”, “D” and “Zh”. Zarechnaya exports more than 85% of production. The Company’s key customers are chemical-recovery, energy and other enterprises in more than 12 countries over the world, including Spain, the United Kingdom, the Netherlands and others.