United Wagon Company and TMH International AG, a subsidiary of Transmashholding, signed a cooperation agreement for the development of rail freight transport in counties of South America.
Under the agreement, both companies will cooperate in sales and deliveries of integrated freight transport solutions that will include locomotives manufactured by Transmashholding and freight cars and components manufactured by United Wagon Company to Argentina, Uruguay, Bolivia, and Paraguay.
The partnership will utilize industrial and financial infrastructure, developed by TMH Argentina, a subsidiary of TMH International AG in Argentina.
“We believe in the prosperous future of the Argentinian transport market as well the entire South American continent. Transmashholding is interested to expand the portfolio of products and solutions it can offer to the customers in South America, and we are glad to welcome UWC as our partners,” Franco Comparato, General Director of TMH Argentina said.
TMH Argentina is already involved in South America’s rail projects. This year, the company secured a USD 29.7 million contract for the maintenance of the Chinese-built trains, operated by Argentinean Trains and used on San Martin railway network. The company will repair 24 SDD7 diesel locomotives and 160 wagons at Retiro and Mechita workshops (situated in Bragado, province of Buenos Aires), where the company is carrying out a modernisation project. TMH Argentina took over the Mechita depot and is currently investing USD 3 million for the modernisation of the depot, under a 3-year contract agreement with Trenes Argentinos Infraestructura. Last year, Transmashholding announced an investment plan worth EUR 170 million in the Argentinian economy, aimed at modernising and reconstructing railway depots for servicing, modernisation and production of modern locomotives and railway cars for passenger and freight traffic.
The current rolling stock fleet in South American is estimated at 145000 freight cars, and the projected demand for freight cars amounts to 4500 units per year assuming expansion of railways to fit developing agriculture and extraction industries.
“We expect South American markets to experience rapid growth driven by expansion of mineral extraction and other mining and processing operations. Transport, especially railway transport, is a sector of industry to receive priority investment in the context of economy growth. I am confident our partnership in the region will be highly successful, and customers will appreciate the quality and technological advantages of our products,” said Maksim Kezemchenko, Deputy CEO for Business Development at UWC.
United Wagon Company is working to step up its presence in countries that use freight rolling stock and develop railway transport. In 2017, the company has shipped almost 600 cars and 200 large casting car sets to North America, Europe, Africa, and Middle East.
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