New Industry, New Opportunities
Modern railcar industry is in the making in Belarus
The new railcar production will be an export-oriented and import substituting project, Prime Minister of Belarus Mikhail Myasnikovich said. To give the fledgling railcar industry a competitive edge, the project will address multiple tasks, from launching railcar production to providing transportation and logistics services.
This is the underpinning of the investment policy of GRAND EXPRESS and its Belarusian partners. In other words, the investment program is meant to develop the transit potential of our country, help Belarus find its niche in the market and expand cargo transportation services.
The new industry is essential for the success of the entire domestic economy. This statement was made by Belarus President Alexander Lukashenko during his visit to Osipovichi Railcar Company this summer. This makes perfect sense. Indeed, much of Belarus’ cargo is transported by rail; therefore, there is a great need for the rolling stock, component parts and infrastructure. This requires new high-tech production facilities and specialists. To address these tasks, the Belarusian government has supported an investment program run by Russia’s GRAND EXPRESS.
Head of the GRAND EXPRESS’ office in Belarus Andrei Kushnarev said that the Russian company is running a series of investment projects in Belarus. They include construction of a plant making freight cars and tank containers in Osipovichi. These freight cars and tank containers will be operated by resident companies of Belarus. The projects also include production of new built-up steel railcar trucks with improved properties, establishment of a multipurpose transportation and logistics center in Brest Oblast, creation of a bearing production, and construction of Belarus’ first multipurpose maintenance center for tank containers compliant with European environmental requirements.
Thus, the national operator of tank containers will have its own rolling stock; the logistics capacities of Brest will be employed in full. The manufacture of rail trucks and bearings will allow increasing the localization of rolling stock production.
Specialists have calculated that each project is profitable separately and has bright prospects. The implementation of these projects as a whole will help enhance the financial sustainability of companies and generate an additional economic effect.
Andrei Kushnarev underlined that GRAND EXPRESS came to Belarus for three reasons: investments, innovations and import substitution. These principles remain unchanged in the current economic environment. The matrix of the investment strategy includes the following:
• promoting import substitution and gradually increasing localization of railcar production;
• creating modern logistics infrastructure, enhancing the transit appeal of Brest District;
• expanding the transportation of innovative bulk commodities in tank containers;
• marketing Belarus-made products (freight cars, rail trucks, bearings);
• expanding the export of products and services, thus increasing foreign currency revenues.
These goals are being fulfilled, Andrei Kushnarev said. In particular:
• mass production of tank containers for transporting chemical materials was started;
• new types and modifications of tank containers are being developed;
• an innovative transport market niche is constantly extending due to increased bulk commodity transportation in tank containers;
• more goods are transported on a regular basis, including import/ export shipments;
• considerable outward investments are raised and currency earnings are increased due to the export of services and, in the nearterm, through the sales of produced goods;