Rail Garant News

Price reductions have practically reached their limit

01/04/13
Ilya Dudinsky, General Director of Rail Garant Group, gave an interview to magazine 'Kommersant'

– Why is there a surplus in wagons on the market? Has the shipping reduction been one of the key factors?

– Currently there is a surplus of low-sided cars and tanker wagons, which was caused by an increase in network traffic of more than 12% in 2012. But the decline in the cargo base, which now ranges at around 3-4%, is not in and of itself the main reason for the surplus. The main factor is the increase in the amount of rolling stock on the network in conjunction with the limited capabilities of the infrastructure. Many new cars are being built, but there is no economic incentive to write off the old ones. There is a surplus of about 70,000-90,000 low-sided cars today. This gives rise to a paradoxical situation where old cars are becoming more and more popular on the market. As a result they clog the network, since loads are sent to the stations in excessive numbers.

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