The perspective of grain transportation: the new project will bring to BGS Rail up to $4 million per year
This year Ukraine has reached a record number in harvest of food supplies – in 2020 the number reached 100 million tons, while the last year the total grain harvest was 98 million tons.
60% of the goods are transported by rail, thus such prospective market trends contributed to the decision of BGS Rail to get its own market share in this segment – which is why 489 grain wagons were purchased earlier this year.
It is a rather tough and substantial project for BGS Rail, as all 489 cars are being repaired simultaneously in 9 depots. However, to date 78 grain wagons model 19-752 have undergone the major repairs and are already being used for the transportation of grain both – in the domestic market and for export – for one of the largest BGS Rail lessees “Ukrmetallurgtrans”.
The overhaul of the total number of grain carriers will be completed by 21 September this year, after which they will be leased out under long-term contracts.
The payback of the project is envisaged at fixed rates, which will ensure the payback of the project within the next 4-5 years. As a result of these activities, the company expects revenues of $4-5 million per year.