In June 2020, during the ongoing outbreak of Coronavirus, BGS Rail LLC was able to conclude very successful contracts for the purchase of wagons, thereby expanding its fleet to 1 750 wagons.

334 open wagons and 80 covered wagons have recently been bought, while at the same time the company is investing into a new prospective niche – the carriage of grain goods – and signed the supply contract for acquisition of the 1901 grain wagons.

From now on, the BGS Rail wagon fleet will lease three types of wagons – open wagons, covered wagons and grain carriers.

Development during the Covid-19 – BGS Rail experience

The expansion of the fleet of wagons was planned earlier, but the most favorable conditions for the acquisition, as per BGS Rail management opinion, were created by the outbreak of Coronavirus. Within a collapse of the prices for rail transportation, prices for wagons fell drastically. The company decided to use this opportunity to purchase the railcars at a price, which is much lower the usual market offer.

“We are now buying wagons about 30-40% cheaper than before the crisis,” – stated D. Zakarauskas.

Within the acquired wagons, BGS Rail is breaking into the Top-5 companies on wagon fleet ownership in Ukraine, and, if the company will manage to implement all plans (including the purchase of grain carriers), before the end of the year, it will automatically reach Top-2 on Ukrainian market.

The next step in the development of BGS Rail – its transformation into a large logistics company. This will enable BGS Rail not only to lease the wagons, but also to transport the goods by itself, expanding the level of services and at the same time bringing the company closer to the clients.

The company CEO emphasizes that this crisis may have strengthened the company. It dictated opportunities and potential for development. Therefore, the main task of BGS Rail now, according to his words, is to keep the two-year steady pace of development and find benefits out of the situation.

Irynynska Str. 5/24, Kyiv, Ukraine, 01034 +380 44 593 65 66 rail@bgsrails.com