July 16, 2015

PKP Cargo and Greenbrier to launch Polish wagon joint venture

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POLAND's largest railfreight operator PKP Cargo has signed a letter of intent with Greenbrier Europe Wagony Świndica, the Polish subsidiary of US wagon builder Greenbrier, to establish a joint venture for the production of freight wagons.

PKP Cargo will invest nearly Zlotys 11.5m to set up a production line at the Szczecin wagon repair shops, which are owned and operated by its Cargotabor subsidiary. Greenbrier will be responsible for documentation, technology, quality control and production line equipment, while PKP Cargo will provide qualified production and administrative staff.

PKP Cargo says that it carried out a detailed cost-benefit analysis of producing its own rolling stock before seeking a partner for the project. The joint venture is expected to significantly reduce the cost of new rolling stock as PKP Cargo renews its wagon fleet while also guaranteeing employment and development for the workforce at Cargotabor.

Ultimately the production line at Szczecin will have capacity to manufacture around 500 wagons a year.

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