on track for growth Greenbrier-Astra Rail

oN TRACK FoR GRoWTh

Greenbrier-Astra Rail is a global supplier of specialist equipment and services to the global rail freight transportation markets. The company is a world leader in the design and manufacture of freight railcars. Philip Yorke looks at the many positive outcomes of the merger of Greenbrier Companies Inc and Astra Rail in 2017 and explores Greenbrier-Astra Rail’s strategy for future growth.

IN June 2017, The Greenbrier Companies Inc, and Astra Rail Management GmbH merged and began operating under its new company name, Greenbrier-Astra Rail. The enlarged company offers high-end freight railcar manufacturing, innovative engineering, repairs and refurbishments and premier sales and customer services. Greenbrier-Astra Rail also undertakes a diverse range of projects located outside the European theatre in regions such as those of the Gulf Cooperation Council nations (GCC) and Eurasia.

unrivalled expertise

The strategic union of these two world-class companies means that customers will receive unrivalled expertise in manufacturing and repair operations on the European continent. It is acknowledged that the railcar fleet in Western Europe is growing old with an average age of more than 25 years. This replacement demand, combined with anticipated growth in Europe and the opportunities afforded by its nearby emerging markets, positions Greenbrier-Astra Rail positively for future growth. Chairman and CEO of Greenbrier, Bill Furman said, “The merger between Greenbrier and Astra Rail extends our core competency in freight railcar building, aftermarket services and engineering for all railroad gauges, with a network spanning the globe from North and South America to Western Europe, the GCC and Eurasia. This will be a significant and positive step in our strategy for diversification, and Astra Rail is a great partner. They bring new products to us as we do to them, and our present businesses are not directly competitive”.

Combining the Greenbrier Europe operations with that of Astra Rail’s proven manufacturing and design capabilities and strong management team, will be of great benefit to its shared European railcar customers. It will create a more efficient and responsive manufacturing base that offers a broad range of rail related products. The combined enterprise brings increased scale in Europe and will also bring enhanced capabilities to serve new global markets in places where there is increasing demand.

extended european platform

Greenbrier-Astra Rail is led by a highly professional team with decades of experience in railcar markets throughout Eastern and Western Europe, as well as in emerging markets around the world. Daily operations are led by a management board including CEO and President Bernd Bose, until recently the CEO of Astra Rail, and CFO Bogdan Lesnianski, previously head of the Wagony Swindnica operations of Greenbrier.

Coupled with its on-going investments in Saudi Arabia, Brazil and Mexico, Greenbrier has grown its international footprint and created a comprehensive global network. Today the company is capable of sup-

porting many markets from its global facilities, including its expanded platform in Europe. Greenbrier-Astra Rail currently employs more than 4,000 people and operates six state-of-the-art manufacturing facilities throughout Europe.

Rising rail freight volumes

Freight volumes are rising worldwide thanks to the need to reduce greenhouse gases, which have been exacerbated by the increasing reliance on road transport. This is particularly true in Turkey where volumes are set to rise by over 65 million tons in the next five years alone. The Turkish government is planning to invest more than 23.5 billion US dollars towards its rail infrastructure projects through to 2023.

BVV Group

BVV Group is one of the world’s leading manufacturers of quality wheels and wheelsets for all types of rolling stock railway vehicles.

The wheels manufactured in BVV special grades are high thermal and optimised for noise-reduction and continuous mechanical load.

The BVV freight carriage wheel for example, which is highly resistant to thermal loads, is an exceptionally long-lasting wheel that meets the high thermal requirements of freight carriages with composite pads.

BVV is continuously working on improving the performance of our freight wheels and wheelsets through various projects. A recent example of this is BVV´s successful participation in the 5 l- demonstration project with SBB Cargo. The project marks another step towards an innovative and competitive freight train and is a pioneering achievement in europe. The objectives involved achieving a significant reduction in noise emissions by at least 5-10 db in comparison to the low-noise tread-brake freight wagons currently being used.

From standard products to highly innovative solutions such as weight or noise reduction for all kind of applications in freight transportation - BVV stands for high flexibility and on-time deliveries.

The Turkish rail industry is also migrating to European rail standards for its infrastructure as intercontinental rail traffic grows. Today Greenbrier-Astra Rail is the leading designer and manufacturer of freight wagons, all of which are built to strict European standards.

Following the merger, Thomas Manns, Chairman of the supervisory board of Greenbrier-Astra Rail said, “This transaction is transformational. Our combined operation is better positioned to pursue the growth opportunities offered by the freight car markets in Europe and globally”.

Bill Furman, Chairman and CEO of Greenbrier-Astra Rail added, “Greenbrier views Turkey and the Mediterranean region as a key corridor within the global freight railway system. Expansion into Turkey is a logical extension of our market-leading Greenbrier Europe operation. Turkey broadens Greenbriers presence in the region where we are successfully working with the Saudi Railway Company (SAR) on key rail projects and are planning to partner with other Gulf Cooperation Countries on railway supply needs in those nations. We look forward to growing our presence in the Turkish rail market and the opportunity to be part of the industry’s growth within the region”.

Greenbrier’s investment in Turkey clearly demonstrates its on-going commitment to enter promising international railcar markets. In turn this drive will produce greater shareholder returns as Greenbrier grows its leadership position on all four continents in the expanding worldwide freight railcar industry. Today one of Greenbrier’s most important strategic goals is to continuously enhance the quality of its products and services.

Therefore the company aims to satisfy and exceed the highest expectations of its international customers on a long-term basis and to maintain its position as one of the world’s foremost manufacturers of modern railcars and wagons. It is also worth noting that the company’s rail management systems have been certified in accordance with ISO 9001:2008, EN 14025, EN ISO 3834-2 and EN15085. This is also a field where Greenbrier works closely with TYUV (German Technical Inspectorate) and is also fully certified under the Deutch Bahn’s HPQ and VPI quality standards. n

For further details of Greenbrier-Astra Rail’s latest innovative products and services visit: www.greenbrier-europe.com