expanding capabilities in growing markets Greenbrier

expanding capabilitieS in growing marketS

New market opportunities for Greenbrier-AstraRail are opening up with the recent expansion of its parent company into Turkey

In2018 Greenbrier Europe, the leading designer and manufacturer of freight wagons for the European market, significantly extended its reach across the continent with the acquisition of a majority interest in the Turkish railcar builder Rayvag. The Turkish company now operates as an integral part of Greenbrier Europe, together with Poland’s WagonySwidnica and Romania’s AstraRail,

Rayvag is based in Adana, Turkey. As well as manufacturing railcars Rayvag also provides maintenance services for railcars and manufactures bogies and spare parts for railcars in the region.

Greenbrier-AstraRail, the US company’s European operation, was itself established in 2017 when Greenbrier’s European business in Świdnica, Poland, and AstraRail’s manufacturing operations in Arad, Romania, were brought together to form an end-to-end freight railcar manufacturing, engineering and repair business to serve customers across Europe and in the nations of the GCC (Gulf Cooperation Council).

Headquartered in in Lake Oswego, Oregon, USA, Greenbrier is a leading international supplier of equipment and services to global freight transportation markets. Greenbrier designs, builds, and markets freight railcars and marine barges in North America, as well as freight railcars and rail castings in Brazil.

Rewriting railway history

AstraRail’s history goes back to 1891 when the Austrian industrialist Johann Weitzer founded the Johann Weitzer Maschinen-, Waggonbau und Eisengießerei Aktiengesellschaft. From 1903 onwards, the Arad-based company rewrote railway history with the Weitzer-De Dion-Bouton motor coach. This petrol-electric powered railcar was the first in a series of fuel-driven railcars in Europe.

AstraRail’s Arad factory formerly concentrated on manufacturing freight wagons and passenger carriages as well as engines. During the course of more than 120 years, over 250,000 wagons

were produced, which makes up 25 percent of the company’s entire production.

In 2012, the AstraRail properties were acquired by Thomas Manns and together with Mr. Bernd Böse, who ran the operative business of AstraRail, he built the multi-plant business into a highly profitable operation with three manufacturing, engineering and repair factories in Arad, Severin and Caracal, Romania. Today, Arad is home to AstraRail’s headquarters where bogies and freight wagons are produced on a covered area of 150,000 square metres. As Chairman of the Supervisory Board of Greenbrier-AstraRail, Thomas Manns now leads the new company’s commercial operations.

At the time of the merger, Chairman and CEO of Greenbrier Bill Furman said, “Greenbrier is committed to pursuing strategic opportunities for growth afforded by shifts in global demand for railcars. Greenbrier-AstraRail extends our core competency in freight railcar building, aftermarket services and engineering for all railroad gauges, with a network spanning from North and South America to all of Western Europe, the GCC and Eurasia.

“AstraRail 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 AstraRail’s manufacturing and design capabilities and strong management team will be a benefit to our shared European railcar customers by creating a more efficient and responsive manufacturer that offers a broad range of products.”

eastern expansion

Greenbrier’s expansion into Turkey through the acquisition of Rayvag is a logical extension of its European growth plans. It broadens the company’s presence in the region where it is already working with Saudi Railway Company (SAR) on key rail projects and is planning to partner with other Gulf Cooperation Countries on railway supply needs.

Rayvag was founded in 2007 by Asim Suzen who retains a 32 per cent equity interest in the business. Suzen continues to serve Rayvag as its Managing Director.

“Rayvag is committed to growth but could not achieve scale without this investment by Greenbrier,” Suzen said. “GreenbrierAstraRail’s expertise in designing freight wagons that meet European rail standards, as well its world-class manufacturing systems and

procurement practices, position Rayvag to respond to the rapidly advancing demands of Turkey’s freight rail industry.”

The freight transport sector in Turkey is growing quickly and the Turkish government is committed to modernising the existing rail system. Beginning in 2014, the state-owned Turkish Railways opened the rail network to use by private operators. Since then, freight movement on the railroad is on the rise. With rail freight volumes expected to see an increase of 65 million tonnes by 2023, the Turkish government plans to expand rail lines, proposing to invest more than USD$23.5 billion towards rail infrastructure projects through 2023. The Turkish rail industry also is migrating to European rail standards for its infrastructure as intercontinental rail traffic grows.

This allows Greenbrier Europe to acquire new railcar customers while also allowing it to serve existing customers which operate on the nearly 5,500-mile / 8,850 km Turkish rail system. Despite strong rail penetration across the country, currently only 5 per cent of Turkey’s freight traffic moves by rail, compared to an average 17 per cent of freight transported by rail in Europe. The expanse of the Turkish rail system and Turkey’s strategic location between Europe and Asia makes it a prime location for freight rail growth.

“Greenbrier views Turkey and the Mediterranean region as a key corridor within the global freight railway system. We look forward to growing our presence in the Turkish rail market and the opportunity to be a part of the industry’s growth within the region.” said Greenbrier CEO Bill Furman. n