Stakhaniv Wagon enters Turkmen market

Stakhaniv Wagon (SVGZ UK) won a tender to supply 250 dump cars to the Turkmen Ministry of Railway Transport over the next several months, Interfax reported yesterday. The first 80 units are to be delivered by end-2011. The order is the Turkmen ministry’s first freight railcar purchase in 20 years. Roman Dmytrenko: The new Turkmen order represents only 6% of Stakhaniv’s annual sales, but signals two positives: (1) Stakhaniv Wagon’s competitiveness on the CIS railcar market and (2) Turkmenistan’s launch of rolling stock modernization. We estimate Turkmenistan’s freight railcar fleet at 12,800 units, of which ~90% require replacement. We think Turkmenistan could order 1,500-2,000 more freight railcars in 2012, which should ease competition for orders between Russian and Ukrainian producers in 2012.