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VTG conducts UK study into the effects of bio fuel on wagon components and tank interiors

Birmingham, 4 December 2008. VTG Rail UK, a subsidiary of VTG Aktiengesellschaft (SCN: VTG999), one of Europe’s leading rail logistics and wagon hire companies, in partnership with lining manufacturers has carried out a study into the effects of bio fuel on railway wagons and has concluded that at the current concentration, the bio additives have no adverse effect on its vehicles.

The 12-month study investigated the effects of petroleum products with 5% bio additive, the level of additive currently allowed in bio fuels, on wagon components and lining materials. The study included an investigation into the effect of bio additives on wagon linings. VTG carried out immersion tests with 5% bio diesel and 5% bio ethanol over a six-month period. Following ongoing internal inspections of the wagons, no softening or swelling was detected and the results showed that the additive did not have any effect on the lining other than some minor discolouration, which does not affect performance.

Results from the study also showed that the bio additive in diesel does not have an adverse effect on the wagon components on VTG’s wagons at the current concentration level of 5%.

While the tests show that wagons can carry bio fuel meeting the today’s requirements of 5% VTG Rail UK are looking beyond this and conducting further tests to ensure that its wagons fleet can cope with higher concentrations to meet the new EU Directive requiring member states to increase the concentration of bio additives in fuel to 15% by 2020.

Paul Lugg, Tank Fleet Manager VTG, commenting on the results said: “Following the results of the study VTG has approved the use of bio fuels in its tank vehicles but at the moment recommends that the bio additive concentration should not exceed the 5% limit.”

The research carried out not only looked at the effects of the fatty acid methyl ester additive (FAME) in bio diesel but also the effects of bio ethanol, which is the additive in Petrol but not currently carried in wagons, to ensure VTG’s rail wagon fleet is able to carry all types of bio fuel safely.

The results form part of VTG UK’s interim report on bio fuel with further research and testing at 5% concentration scheduled for completion in January 2009.

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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