28 Dec 2012 12:42

RusAl to start operating railcars in 2013

MOSCOW. Dec 28 (Interfax) - United Company RusAl will purchase around 300 railcars in 2013-2014 from OJSC Ruzavsky Chemical Machine-Building Plant (RKhM, an asset of OJSC Russia Transport Machine-Building Corporation), the metallurgical company said on Friday.

The buyer will be RusAl subsidiary LLC Rusaltrans. The agreement for the railcars was signed on Thursday. Around 100 railcars will be delivered in 2013 and around 200 in 2014 worth up to 12.7 million and 15.2 million, respectively.

In addition, Rusaltrans will have the right to other over 300 railcars in 2015 with a discount of 63,560 rubles per railcar.

A RusAl spokesperson told Interfax that this concerns the development and purchase of combination railcars for transport of aluminum from smelters to ports, as well as transport of alumina from ports to smelters. "Therefore, the company might be able to avoid paying for dry runs in the transport of aluminum and alumina in other types of railcars. The acquisition will help RusAl optimize logistics, reduce the load on railway infrastructure decrease the time for processing freight, increase the speed of deliveries, and, as a result, reduce production costs," he said.

RusAl currently does not own railcars, he said.

RusAl said in a statement that Ruzavsky Chemical Machine-Building Plant will receive 40% of the amount for the development and production of the railcars 15 days after the agreement comes into force. The enterprise will get 45% no later than 10 days before the start of preliminary and certification tests on the railcars. The remaining funds will be received in 10 days after three months of operations with planned shipments.

RusAl's subsidiary is being developed as part of the company's strategy for transport, RusAl told Interfax. However, it is "too soon to comment on any substantial changes." "300 railcars this is only 10% of the company's requirements for railcar transport. It would be premature to comment on long-term plans to expand the fleet," a company representative said.