In 2008 Globaltrans significantly increased its rolling stock fleet, having added 6,203 railcars to its owned rolling stock fleet, of which 2,043 railcars were acquired from Russian and Ukrainian manufacturers and 4,152 rail tank cars together with 8 locomotives were added through the acquisition of stakes in AS Spacecom and AS Intopex Trans. To learn more on the acquisition of AS Spacecom and AS Intopex Trans, please click here.
The capital expenditure, associated with fleet addition in 2008 (excluding acquisition of stakes in AS Spacecom and AS Intopex Trans) amounted to approximately USD 143.9* million.
Following the challenging market conditions and downward trend in the prices for railcars, Globaltrans’ management temporary suspended investment program at the end of 2008 to benefit from the expected future lower prices for railcars.
Following a strategy of opportunistic growth, the Group continued to pursue opportunities to expand the business in 2009. As demand for freight rail transportation services began to stabilise from the second quarter of 2009 and freight rail turnover started to recover, the Board of Directors approved the resumption of the Group’s capital expenditure program.
In line with the commitment to maintain a balanced fleet, the Group completed the purchase of LLC BaltTransServis (BTS), the one of Russia’s leading private freight rail companies, in December 2009 acquiring a controlling stake in exchange for shares in Globaltrans, in a deal valued at USD 250 million. BTS specialises in the shipment of oil products and oil and operates a fleet of about 9,000 units of rolling stock. BTS represented an excellent strategic fit with the rest of the Group's business portfolio, providing a strong customer base and stable revenues. With its purchase, in addition to being the largest* private owner of gondola cars in Russia, the Group became the largest* private owner of rail tank cars. To learn more on the acquisition of BTS, please click here.
In 2009 the Group also took advantage of a market where prices for new railcars had dropped more than 40% from the peak levels seen in 2008. In the second half of 2009 the Group entered into agreements to purchase 6,000 new gondola cars from vendors including Russian producers, such as Uralwagonzavod, Armavirsky and Roslavlsky, and 500 new oil rail tank cars from Ruzkhimmash. Total value of these contracts amounted to approximately USD 260 million (excluding VAT), representing an attractive price per unit.
During 2009 the Group’s capital expenditure on acquisition of rolling stock**, including rolling stock leased under finance leases, amounted USD 103.9 million.
In 2009 the Group took delivery of 2,310 railcars comprising 1,885 gondola cars (including 1,775 gondola cars contracted in the second half of 2009), 55 new and 250 second hand rail tank cars and 120 flat cars.
*based on the publicly available information.
**Additions of rolling stock in 2009 as well capitalised repairs.
