ArcelorMittal Kryvyi Rih to Increase Railway Wagons Fleet
ArcelorMittal Kryvyi Rih is considering possibility to put into operation 1 200 new railway wagons in 2021-2022. Thus, the company's own wagon fleet will increase by one and a half that will allow faster delivery of products to the customers as well as supply of the plant with raw materials timely. ArcelorMittal Kryvyi Rih Chief Procurement Officer Mr Bikram Virdy said “Several factors are pushing us to the decision to make a large purchase of new railway wagons. Now we are increasing export shipments of our products. At the same time, we are not quite satisfied with the technical condition of wagon base in Ukraine. Renewed wagon fleet will ensure safe and efficient transportation of our products to the Ukrainian ports. We will be able to plan our logistics regardless of the situation on rail transport market and the availability of wagons. This will help to reduce cost linked with inbound and outbound transportations. Besides, own wagons are cheaper, the approximate payback period is 3-4 years. According to our estimates, the initiatives of decommissioning of the wagons with exceed standard operation time, submitted to the government could lead to the shortage on the market and to significant transportation price boom. Also, definite shortage of wagons can traditionally be expected in summer-autumn period due to the revival of construction cargo market. Therefore, we would like to count on our own modern wagons and to be more flexible in terms of working with Ukrzaliznytsya and freight operators.”
Rolling stock of ArcelorMittal Kryvyi Rih is intended for transportation of steel products and iron ore raw materials as well as for delivery of raw materials to the plant. The main logistic directions are transportation of sinter ore and metal products, as well as raw materials, which are limestone, coal, coke, coke breeze backward. Apart from open wagons, the company also uses dump cars, flat wagons, cisterns, pellets hopper cars, coke hopper cars, cement cars.