40 new wagons make steel coil transportation more effective

Birmingham, 24 January 2008. VTG, the UK's largest private wagon hire company, has this week commenced delivery of 40, new coil carrier wagons to Europe's second largest steel producer Corus, increasing its fleet of this favoured wagon design to in excess of 100.

The wagons, which were delivered to Corus’ steel works in Port Talbot, South Wales, have been produced by UK manufacturer WH Davis and provide maximum protection to the steel coils, which are high-value and sensitive to contamination from the elements. Timber lining inside the wagons protects the coils from damage and the three, specially designed, telescopic hood sections keep them dry whilst maximising accessibility for loading and unloading.

Commenting on the new wagons for Corus, VTG Rail UK’s Bulk Fleet Sales Manager, Ian Shaw, said: "VTG has leased rolling stock to Corus for many years now and we are pleased to be extending the excellent trading relationship we enjoy with them. The new wagons, in common with the rest of VTG’s Coil Carrier fleet, provide significant logistical advantages by maximising payload whilst minimising train length, giving them a definite edge over older, continental designs.”

Capable of carrying payloads in excess of 70 tonnes and designed and manufactured to meet European rail freight legislation, Corus requested the new wagons following the ground breaking “purchase, modify and leaseback” contract with VTG in 2002 in which VTG updated 66 carriers for the steel manufacturer.

The contract saw VTG buying Corus’ privately owned fleet, updating the wagons in the process, thereby relieving them of the responsibility of meeting stringent legal requirements involved in the modification of rolling stock. Modifications included replacing the difficult to handle heavy steel-clad sliding hoods with new lightweight aluminium versions, making them easier for operators to open and close without the help of machinery and therefore less prone to damage.

Corus Strip Products’ Distribution Manager, Mike Nightingale commented: “Our rail operation plays an integral part in ensuring optimal flow of Corus products to our customers and distribution centres. The new wagons will support this business-critical operation and fit with our strategic objective of managing a safe, optimal and cost efficient distribution service.”

The wagons will be used to transport steel coils from Corus’ South Wales plants at Port Talbot and Llanwern to various destinations across the UK, including the West Midlands, North Wales and North East England.

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About VTG:

VTG Aktiengesellschaft is one of Europe’s leading rail logistics and wagon hire companies. The company has the largest private wagon fleet in Europe. Globally the fleet consists of about 49,300 rail freight cars with a focus on tank cars and state of the art high capacity freight cars and flat cars. In addition to the hiring of rail freight cars, the Group offers global tank container transport and comprehensive multi-modal logistics services mainly around rail transport.

With the combination of its three interrelated divisions Wagon Hire, Rail Logistics and Tank Container Logistics VTG offers its clients a high-performance platform for international transport of their freight. The Group has many years of experience and specific know-how in particular in the transport of liquid and sensitive goods. Its customers include numerous well-known companies from almost all industrial sectors such as, for example, chemicals, mineral oil, the automobile or paper industries.

In the financial year 2007 VTG generated operating revenues of EUR 541.4 million and an operating result (EBITDA) of EUR 137.0 million. Via its subsidiaries and affiliates the company, which has its head office in Hamburg, is mainly present in Europe, Asia and North America. As at 30 June 2008 VTG employed 833 employees worldwide in consolidated companies. Since June 2007 VTG AG has been listed on the official Prime Standard market of the Frankfurt Stock Exchange – since September 2008 also on the SDAX (SCN: VTG999).

Press contact:
Andrea Geeson, Communications Manager
Telephone: 01444 473588, E-Mail: andrea@woodhousecommunications.co.uk