Production capacity surplus for carriages is about 60%

28 october 2015 | "Kompaniya"

The crisis has affected all industries, however transport engineering - manufacturing of rolling stock for railways, metro and tram networks - is in an exceptional position, as it depends largely on Government customers. At the end of last year RUB 60 billion has been allocated for the purchase of new locomotives for 'Russian Railways', but the money was transferred to railways with huge delays, and at the beginning of the year there were reports on a falling load of machine-building enterprises.

Mikhail Nizov
Mikhail Nizov
Department for Sectors of Economy

'The demand for carriages depends on trends in the transport market, which is affected by the country's economy. If the economy is in depression, and traffic volumes are reducing, the demand for freight carriages inevitably falls. With the capacity of carriage works about 90 thousand units per year maximum production was just over 70 thousand freight mainline carriages in 2012, when operators actively changed the cargo fleet. Then, with the saturation of the market of carriages and due to imperfection of tariff regulation mechanisms a backlog in infrastructure development emerged,' Mikhail Nizov, the expert of the Analytical Center, commented on the situation to the magazine 'Kompaniya.'

The expert believes that the reduction in the profitability of traffic led to a reduction in demand for cars up to 20-27% annually. 'At the present time, the production capacity surplus for carriages is about 60%. Some positive trends can be seen in the demand for gondola carriages and tripper carriages used for delivery of infrastructure and other projects financed from the state budget funds,' said the expert. According to him, the demand for metro carriages and trams, whose share in the total volume of production is negligible, is less exposed to risks, since it is formed mainly by municipal administrations in order to develop the most efficient and environmentally friendly urban public transport for residents of their region.