ArcelorMittal Kryvyi Rih plans to increase its rolling stock by one and a half times
ArcelorMittal Kryvyi Rih is considering the possibility of putting into circulation 1,200 new wagons in 2021-2022. At the same time, the company's own wagon fleet will increase by one and a half times, which will allow faster delivery of products to customers, and the plant will provide the plant with raw materials in a timely manner.
Bikram Virdy, Deputy General Director for Procurement, ArcelorMittal Kryvyi Rih:
- We are prompted by several factors to decide on a large purchase of new cars. We are currently increasing the export shipments of our products. At the same time, we are not completely satisfied with the technical condition of the carriage base in Ukraine. The renewed wagon fleet will ensure safe and efficient transportation of our products to Ukrainian ports. We will be able to plan our logistics regardless of the situation on the rail transport market and the availability of wagons. This will help reduce the cost of shipping outbound and inbound shipments. In addition, own wagons are cheaper - an approximate payback period is 3-4 years.
According to our estimates, initiatives to write off gondola cars that exceed the standard service life, submitted to the government, could lead to a shortage in the market and a large jump in transportation prices. Also, some manifestation of the shortage of wagons can traditionally be expected in the summer-autumn period due to the revival of the construction cargo market. Therefore, we would like to count on our own modern wagons and be more flexible in terms of working with Ukrzaliznytsya and freight operators.
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The rolling stock "ArcelorMittal Kryvyi Rih" is intended for the export of metal products and iron ore raw materials, as well as for the supply of raw materials to the enterprise. The main logistic directions are the transportation of sinter ore and metal products, as well as return raw materials - limestone, coal, coke, coke breeze. In addition to gondola cars, the company also uses dump cars, platforms, tanks, pellet carriers, coke and cement carriers in cargo transportation.