VTG Rail UK Enters UK Coal Market

Over 46 million tonnes of coal were transported over the UK’s railway last year, making it still the number one commodity to be carried by rail - and with VTG Rail UK’s fleet of over 1,500 wagons making it the largest private wagon hire company in the country, it is very fitting the wagon lessor is now playing a significant part in the UK coal market.

VTG took its first steps into coal in 2009 by leasing 89 of its brand new coal hoppers to rail freight hauliers First GBRf. While the VTG Group has a large fleet of coal hoppers in mainland Europe, VTG Rail UK’s contract with First GBRf marked the company’s first entry into providing wagons for the UK electricity supply industry.

Rob Brook, Managing Director at VTG Rail UK said: “We wanted to be able to offer First GBRf the highest quality coal wagons that would allow them to deliver the best possible service to their customers. We are confident that the combination of a highly efficient design, coupled with top class British build quality, plus VTG’s skill and experience in wagon fleet management, has enabled this goal to be achieved.”

VTG Rail UK’s HYA coal hopper is designed to be capable of operating at speeds of up to 75mph and to carry payloads of more than 74 tonnes in the shortest possible length, putting it at the very forefront of coal wagon efficiency. Track friendly bogies plus minimised weight and rolling resistance mean the wagons are quieter and more energy efficient than many of the older designs that operate on the UK network.

Operationally, the HYA wagons are well liked by power stations and terminal staff, due to their easy access points, which makes loading and unloading a fast and effortless procedure.

Customer John Smith, Managing Director at First GBRf said: “The wagons are cheaper to run than other designs and provide higher payloads per wagon length – a critical factor in the coal sector and for network capacity, since it allows greater payloads per train path. We are extremely pleased with the wagons, which are helping us to secure a larger proportion of the UK coal market.”

Keen to build on the success of its first coal contract, VTG has already secured its first follow on order from another customer, and has others in the pipeline.

As well as working with freight operating companies (FOCs), VTG Rail UK is also interested in working with the power generators themselves to give them more control and choice over their coal haulage agreements.

As power operators have no coal wagons of their own, they have, on the whole, relied on FOCs to provide wagons for the movement of coal to their power stations, and to find companies which have the most appropriate wagons to meet their transport needs. The alternative of power generating companies purchasing the necessary vehicles themselves would be a large and potentially unwise investment. Instead VTG is suggesting a far less risky option, which would offer the power generators more choice but remove the need to devote capital and resources to “non-core” activities.

Rob Brook explains: “We can work with the power generators to enable them to hire the most appropriate coal hoppers for their flows. By hiring rather than purchasing coal vehicles outright they would be able to reap all of the benefits of having their own fleet and the freedom and security it brings, without the cost and maintenance implications that ownership entails.”

In addition to helping open up the coal haulage market for end users, VTG is also keeping a close eye on coal market developments to ensure it is developing the right vehicles for any changes to the types of fuels used for energy provision.

With power generators facing stricter emission targets from the government, meaning many may be forced to close, VTG is aware that the industry could change dramatically over the next few years and is already looking into the ways this will affect the types of wagons needed in the future.

VTG’s success in coal is no surprise considering the company’s great track record in other markets. Working with freight operating companies such as DB Schenker, Freightliner and DRS as well as directly with companies such as Lafarge Cement, Total and Corus, VTG’s expertise includes cement, aggregates, steel and petro-chemical transportation.

“We are an ambitious, focused company,” said VTG’s Rob Brook, “and we are determined to bring new thinking and smarter ways of working to the rail freight wagon market.”

Given the company’s record, Brook’s VTG is more than likely to succeed.

Ends

About VTG:
VTG Rail UK, a subsidiary of VTG Aktiengesellschaft (SCN: VTG999), is one of Europe’s leading wagon hire and rail logistics companies. The company has the largest private wagon fleet in Europe. Globally the fleet consists of about 50,000 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 wagons, 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.

Press contact:
Vicky Leek Communications Manager
Telephone: 01444 221000
E-Mail: vicky@woodhousecommunications.co.uk
Website: www.vtg-rail.co.uk