The supervisory board of the Estonian rail cargo operator EVR Cargo approved the plan of expanding its freight car rental business in Russia. The company is planning to move forward with the plans once the Estonian government has agreed to it.
EVR Cargo plans to rent out container platforms to major international customers who service the cargo carriage between China and Europe. The company also intends to rent out open wagons for carrying bulk goods on the growing Russian domestic market. With this scope, EVR Cargo entered into a contract worth 17.8 million euros to buy 300 container platforms and 200 open wagons, which is the first part of a plan to invest 35 million euros in wagons. With the new freight cars, EVR Cargo’s rolling stock will consist of 66 locomotives and 3,022 cars.
Following a change in the ratio of demand and supply on the freight car rental market, which considerably increased rental prices, the company’s revenue from the renting out of freight cars grew by 39% to 1.5 million euros in 2016.
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