Mechel reports that it acquired some 150 railcars in November-December for a total of 467 million rubles ($7 million) as part of its transport fleet upgrade programme at its coal operations in Russia.

Most gondola railcars were produced by Altaivagon OJSC and RM Rail Ruzhimmash and were both bought to own and leased, Mechel said.

Currently Mechel Group’s transport operator, Mecheltrans OOO, manages approximately 11,000 train vehicle units, which help transport some 45 Mt/y of cargo.

In 2019, the company plans to acquire some 1,000 new gondola cars, it said.

Mecheltrans Management OOO’s Chief Executive Officer, Alexey Lebedev, said: “Over the past four years, some 150,000 gondola cars were scrapped in the Russian market due to expired life, which is practically a quarter of the entire fleet volume. The shortage in all-purpose vehicle transport segment is still being felt.

“As such, in order to improve the situation with transporting Mechel Group’s coal products we intend to dramatically expand our fleet. We are currently in active talks with wagonbuilders and leasing companies.”