Russia’s United Wagon Company (UWC) and TMH International have signed an agreement aimed at bolstering rail freight operations in South America.
TMH is a subsidiary of rolling stock manufacturer JSC Transmashholding.
Under the terms of the agreement, the companies will cooperate in the sales and deliveries of integrated freight transport solutions to the South American nations of Argentina, Uruguay, Bolivia and Paraguay.
The scope of the cooperation includes locomotives manufactured by JSC Transmashholding, as well as rail components made by UWC.
United Wagon Company Business Development deputy CEO Maksim Kezemchenko said: “We expect South American markets to experience rapid growth driven by the expansion of mineral extraction and other mining and processing operations.
“Transportation, especially railway transportation, is a sector of industry to receive priority investment in the context of economy growth.”
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The partnership will attempt to leverage the industrial and financial infrastructure of TMH Argentina, a subsidiary of TMH International.
TMH Argentina general director Franco Comparato said: “We believe in the prosperous future of the Argentinian transportation market, as well the entire South American continent.
“Transmashholding is interested to expand the portfolio of products and solutions it can offer to the customers in South America, and we are glad to welcome UWC as our partners.”
Last year, UWC shipped almost 600 cars and 200 large casting car sets to North America, Europe, Africa and the Middle East.
The South America rail freight market is currently estimated to have 145,000 operational cars.
Demand is expected to grow by 4,500 units annually, subject to the growth of agriculture and extraction industries in the continent.