Modern wagons for a cutting-edge terminal

The new wagons are also part of the company’s broader strategy to enhance efficiency and sustainability at its state-of-the-art terminal in Fényeslitke, Hungary. The terminal, operational since 2022, is strategically located at the crossroads of standard and broad-gauge railways close to the Ukrainian border. This is Europe’s largest land-based intermodal facility, with a total yearly capacity of 1 million TEUs.

The terminal’s advanced infrastructure also allows for high volumes of agricultural and energy commodities, such as up to 1 million tons of grain and 2 million tons of crude oil annually. With remotely operated cranes and a real-time 3D digital twin tracking system, EWG is at the forefront of technology-driven logistics. The facility was constructed with green technology, including sustainable energy solutions like heat pump systems, aligning with EU railway and climate goals.

A modern fleet for agricultural transport

EWG has leased 120 wagons from Wascosa as part of this innovation push. These include 60 Green Freight Car® grain wagons delivered in the spring of 2024 and 60 Green Tank Car® wagons that arrived in the summer. The tank wagons have a capacity of 98 cubic meters, weighing less than 22 tons, and can transport up to 68 tons of goods. Similarly, the grain wagons hold 95 cubic meters with a tare weight of 20 tons, allowing for payloads of up to 70 tons.

The reduced weight of these wagons not only increases payload capacity but also lowers transport costs. “We are at the forefront of innovation and the spread of efficient, environmentally friendly transport,” said Roman Vinar, CEO of East-West Gate. “With Wascosa’s freight wagons, we can offer our partners more economical solutions. The feedback has been overwhelmingly positive, with some customers opting to use EWG wagons over their own due to cost-effectiveness.”

Expanding reach across Europe

EWG Rail, the group’s independent railway service provider, facilitates the movement of these wagons across Hungary and beyond. EWG Rail is licensed to operate on the entire Hungarian railway network and serves domestic and international customers. Its services include transporting hazardous and refrigerated goods, further broadening its capabilities.

The new wagons are already making an impact. Ukrainian crude vegetable oil is primarily transported to Italy using tank wagons, with transfers from Ukrainian broad-gauge wagons taking place at the Fényeslitke terminal. Hungarian and Ukrainian grain products are also transported using grain wagons, and customers benefit from the cost efficiency of the lighter fleet.

Enhancing transparency

In line with its commitment to sustainability, EWG has introduced special labels for the wagons to increase transparency about the loaded goods. These labels ensure the cargo is non-fossil-based, reflecting EWG’s dedication to environmentally friendly operations.
With its modern infrastructure, innovative wagon fleet, and focus on sustainable logistics, EWG is setting a new standard for intermodal transport in Europe.

Wascosa has signed up LTG Cargo Polska as a client for its stock of NiKRASA 3.0 cradles. The parties say the deal will enhance their cooperation and boost Baltic trade. The focus of the development is intermodal rail freight between Lithuania and Western Europe. This partnership will mainly use the transport corridor between Kaunas in Lithuania and Duisburg in Germany, taking trucks off the busy roads.

Modal shift to rail

“Germany is one of Lithuania’s largest trading partners, underscoring the importance of the Kaunas-Duisburg intermodal connection,” explained Wascosa in a formal statement. LTG Cargo Polska, which is a subsidiary of the Lithuanian rail freight company LTG Cargo, has a long-term strategy to strengthen its position as the Baltic States’ gateway to Western Europe. The company is actively engaged in expanding intermodal transport capability, not least for commercial advantage, but also to offer efficient and environmentally friendly logistics options.

As reported by our sister service, WorldCargo News, Wascosa has been marketing the NiKRASA system since signing a deal with the manufacturers earlier this year. “This innovation supports the growing demand for combined transport,” says Wascosa, the Swiss-established rail freight rolling stock company, currently celebrating its 60th anniversary year. “The cooperation also aligns with LTG Cargo’s broader sustainability strategy, which has already led to significant achievements: in 2023, intermodal shipments prevented 66,500 tonnes of CO2 emissions.”

Third generation is even more versatile

Iris Hilb, CEO of Wascosa AG, is enthusiastic about the latest agreement with LTG. “Wascosa AG is equally committed to driving innovation in rail freight logistics,” she said. “The NiKRASA solution fits perfectly into our market strategy, providing value to customers while supporting the ongoing shift towards rail transport. According to estimates by the leasing company, around 90% of Europe’s truck fleet is non-craneable. Wascosa further says that the NiKRASA system enables trailers to be loaded from road to rail in just two minutes without requiring changes to existing terminal or rail infrastructure.

The NiKRASA system for trailer handling was developed by TX Logistics, a subsidiary of Mercitalia Group. The third and more flexible iteration of the system was released just over two years ago, At the time, Wascosa entered into a marketing deal, which ultimately saw the Swiss leasing company purchase 150 units. The agreement allows non-craneable semi-trailers to be loaded onto rail wagons quickly and easily. LTG claims to be the only rail carrier with the necessary licenses to operate in both Poland and the Baltics.

“The NiKRASA platform enables the handling of non-craneable semi-trailers, which currently make up around 90 per cent of European truck fleets. They can be loaded from road to rail in just two minutes”, the two companies explain in a press release.

“Changes to the existing standards in the terminals, on the wagon and on the railway are not necessary for this. In addition to classic semi-trailers, silos and trailers with fixed body, mega-trailers and trailers without a body and container chassis can also be put on the rail.” The companies also clarify that if the NiKRASA loading frame stays empty in the wagon, swap bodies and containers can still be loaded as usual.

Cooperation beyond NiKRASA

The signed agreement also provides for cooperation more generally between TX Logistik and Wascosa. “In the current tense market situation, this partnership is a sign that we are looking to the future,” comments Ugo Dibennardo, CEO of TX Logistik. “In addition to wagon rental and the marketing of NiKRASA, we also want to work closely together on transport solutions and innovative developments and drive these forward together and with other partners.”

Port of Strasbourg and Lauterbourg terminal

The port of Strasbourg claims to be the second largest river port in France and the first freight hub in Alsace, moving over 7 million tonnnes every year. The terminal in Lauterbourg, 64 kilometres north of Strasbourg, was put into operation in 2021. It stretches over 6 hectares and can count on two tracks suitable for 400-metre-long trains. In 2024, the terminal will be equipped with a new gantry crane with a lifting capacity of 200 tonnes, which will boost services for heavy goods, and a Ro-Ro ramp.

Also read:

• France cuts hundreds of millions from transport and infrastructure plan
• French ​​30km rail freight line to reopen after major renovation work
• Private investment reactivates French domestic rail freight service

When it comes to the delivery process, 31 new wagons every month will be delivered to Ferest Rail over a period of ten months. When all the wagons will be delivered, the company will count on over 1,000 wagons dedicated to the transport of cereals. These wagons, as Ghliardi pointed out, are lighter (thanks to a higher use of aluminum rather than iron in the building process) and shorter than usual. This means that companies using the service can transport heavier cargo and that more goods will fit on the trains.

Ferest Rail: Italian leader in transporting cereals

Ferest Rail is mostly active in the transportation of agro-food goods. As Ghilardi pointed out, it is the first Italian company for rail transportation of cereals. Most of their business happens with eastern European countries, with connections in Serbia, Hungary, Slovakia, and Ukraine among others. However, Ferest Rail also looks to western Europe, with connections in France.

The grain is transported from those countries in northern Italy, more specifically in Lombardy, Emilia-Romagna, and Piedmont. These services, as Ghilardi highlighted, do not require last-mile deliveries on the road since the customers are all connected to the rail network. Ferest Rail transport all kinds of cereals: from the lower-quality grain used for feeding livestock to the higher-quality one used for baking.

Also read:

• InRail brings carbon black to Hungary by rail
• Wascosa settles in Italy to launch new Modular Freight Wagon System

With the Modular Freight Wagon System, therefore, there will be no need for specialised wagons that transport seasonal products and are kept on the side for most of the year. According to Wascosa, this will lead to an increase in transportation efficiency as well as reduced logistics costs.

The fifth Wascosa facility in Europe

As the company claimed, Wascosa entered the Italian market with a modern fleet looking to boost rail freight transport. The average age of the rolling stock is less than ten years. This will be the fifth Wascosa site in Europe, after the ones in Luzern in Switzerland, Hamburg in Germany, Hull in England, and Madrid in Spain. The branch will be managed by Peter Balzer, CEO of Wascosa, Stephan Kellman, the company’s finance director, and Fabrizio Parisi.

Also read:

• The International Maglev Board shares its views on maglev freight trains
• TX Logistics reveals the new NiKRASA 3.0 system

Customers pressing for more rail

At an industry event last week, organised by Wascosa to celebrate the Swiss leasing agent’s substantive entry into the UK market, Maggie Simpson told an assembly of UK business interests that there was huge excitement about rail freight at the moment. “Businesses across the country are looking to put more of their freight on rail, driven by environmental factors and a desire to be more sustainable”, she said. “The challenges of Covid, Brexit, and global disruption also drive companies to rail freight as they look to different supply routes and seek more resilient solutions.”

There has been sustained growth across many sectors, including intermodal, construction, consumer goods, bulk products, and domestic waste handling, says the Rail Freight Group. There is also evidence that existing customers are pressing to put more of the goods on rail. First-time customers are looking for rail solutions, adding their commercial weight to the argument for opening up new routes.

Many opportunities not yet invented

Simpson says there are several opportunities on the horizon for rail freight operators. She emphasises port traffic, which is still dominated by road operators in many cases, as a primary target. She also cited domestic retail, express freight and parcels as growing sectors.

“There are so many opportunities in new infrastructure and in businesses that haven’t even been invented yet, such as Giga factories for batteries and moving bulk hydrogen by train”, said Simpson. “Freight operators, customers, ports and terminals are already investing heavily, but they need the partners to share the risk and support them on that journey.”

More, more, more – drivers, terminals, equipment

Maggie Simpson is confident that the rail freight industry can rise to meet the challenge, but not alone. “To meet this demand and delight new customers, the rail freight industry has to grow sustainably”, she said. “We need more locomotives, more drivers, more terminals, more handling equipment, add perhaps most importantly more wagons”, she added, with a nod to the entry of Wascosa into the UK market – who are currently delivering a Greenbrier-built fleet of infrastructure rolling stock to Network Rail.

“Rail freight also has to modernise how it works – with more innovation, lower carbon products and greater digitisation”, said Simpson. The last comment pre-empting the government announcement of the green light for just such a project on the East Coast Main Line between London, Leeds and Edinburgh. “There is a greater role than ever for the private sector in rail freight. I am really excited about the prospects ahead.”

Maximum use of assets

If the royalty of the railways were to announce a regal pack between themselves, then doing so at a station named for an empress, and in the lea of her palace, could not have been a more appropriate venue. Wascosa, who occupy the throne in terms of continental freight leasing, have concluded an alliance with the young prince of operators in the United Kingdom, GB Railfreight, to provide and maintain a modern fleet of modular wagons to Network Rail, the loyal servants of the British infrastructure. The ceremony marked the beginning of delivery of a fleet of 570 units to modernise the NR fleet and cement Wascosa’s presence in the UK.

Hauled in by “Wascosa”, a newly named class 66 locomotive of GB Railfreight, resplendent in a livery representing the lessor and the lessee, came a royal family rake of Wascosa ‘flex freight system’ modular wagons. Fitted out for the occasion, the wagons arrived in a variety of the combinations that all parties believe will help make maximum use of the assets with minimal downtime. The demonstration here was for the benefit of infrastructure support functions, but both Wascosa and GB Railfreight were eager to acknowledge the potential for commercial customers, and the adaptability of the rolling stock for conventional loads, carrying everything from boxes to bulks.

Three years to secure deal

“The UK market is interesting for us because we see a lot of renewal activities in the market”, said Peter Balzer, the chief executive of Wascosa. “The market is specialised, you have to know more than in other markets. We want to bring the new innovative solutions we have to the UK. “We are totally convinced that we have good solutions for the UK market and what is promising for me was that when we spoke five years ago with many potential customers they all asked us to come to the UK and increase competition and bring your innovations to the UK.”

For John Smith, the managing director of GB Railfreight – the superstructure and maintenance partner in the venture – the deal and the rollout of the wagons represents the culmination of talks that have taken him from London to Lucerne and back. “We met Wascosa about three years ago they were interested in getting to the UK market, to finance equipment here”, he said. “We were very interested in getting a new lessor to finance some of our equipment. We worked on a number of opportunities. We were buying new equipment and leasing it from various lessors, but in the end it crystallised into this deal with Network Rail, where Wascosa financed the wagons and we financed the equipment that goes into maintaining it.”

Market is growing like ‘topsy’

Network Rail will be the immediate beneficiary of the deal. The infrastructure agency gains a modern and highly-adaptable fleet, and the backing of an ambitious UK-based operator with plenty of experience in the field. “We are looking to expand into other areas”, said John Smith. “We are obviously generating cash and obviously profitable, so we can invest in equipment which is no bad thing if people like Network Rail need new equipment, but we are looking to expand the boundaries of what we do. We are operating Network Rail’s test track at Melton Mowbray for instance. Hopefully the British rail freight market will grow, but there was a time when we were slightly worried about that. That is no longer the case, and the market is growing like ‘topsy’ at the moment, but prior to that we were looking at the business to diversify and see where we could grow.”

There is ambition too from Wascosa, as befits a family run company gearing up for its own diamond jubilee in 2024. Yet, he remains crystal clear that there is plenty still to understand. “We want to grow but not at any price”, says Peter Balzer, who is as sprightly as his 58-year old company. “We want to improve [the size of the company] and there are lovely new car types which we know we can transfer to the UK market and develop the European market. We are willing to learn to understand and also to transfer the good things on both sides.”

As might be expected in matters concerning the Swiss, financial details of the deal were not discussed, nor was the bill for hiring Victoria Station. All images: Shan Liu at Almond Bank Communications.

No time to lose

Peter Balzer, Managing Director of Wascosa commented: “As the fourth largest lessor of freight wagons, Wascosa will continue its vigorous investment strategy to develop an even broader wagon portfolio which now includes virtually all relevant wagon types.

“We are convinced that the critical size of a wagon lessor is shifting ever upwards. Qualitative and quantitative growth is therefore essential, together with the ability to successfully complete our transformation into a digitalised railway world. There is no time to lose here.”

Modular wagon designs for the future

Network Rail will however see a new fleet of modern modular wagons taking on the extensive roll of track maintenance and network development. “For Wascosa, this achievement is recognition of our determination to develop efficient and innovative solutions for wagon users”, said a very happy Wascosa chairman and owner, Philipp Müller. He is pleased now that his company in embedded with Network Rail supply chain operations.“We are delighted to have been selected to serve Network Rail’s wagon needs and look forward to working closely with Network Rail’s SCO team and our partners to deliver a first class service over the coming years”, he added.

Part of the order consists of traditional designs, including the company’s “Falcon” box wagons and JNA Big Box wagons for bulk ballast loads. Of more interest, Wascosa will be leasing their ‘flex-freight’ modular designs to Network Rail. It was only last month that the company celebrated commissioning of the 500th example of the award-winning rolling stock. Their statement says the wagons are suitable for the carriage of track panels, sleepers, switches, rails and loose materials, made possible by a range of superstructures which can be mounted on a fleet of 60-foot container flats. “This ground-breaking solution for Network Rail confirms Wascosa as the leading provider of freight wagon systems in Europe and positions the company perfectly for future growth in the UK”, they say.

Manufacturing capacity decline in UK

This is not the first major UK rolling stock contract to go abroad this year. In August, Transport for London, which operates metro services in and around the UK capital, started to take delivery of a substantial order for over seventy wagons provided by Chinese state-owned manufacturers CRRC. Volume freight manufacturing is no longer possible in the UK, with the large works in places like Birmingham, Swindon and Doncaster all having ceased production. Notable exceptions include WH Davis, in the heart of England, which owns the last independent manufacturer in the country and undertakes bespoke work.

Network Rail was criticised only last week for sending other work abroad, in a case where, unlike volume rolling stock manufacture, industrial capacity still exists in the UK. Trades unions rallied around the case of a specialist foundry near Edinburgh, which is now in jeopardy as a result of losing long-standing infrastructure work. Present day UK manufacturing tends to be centred on the assembly of passenger multiple units, but there are growing concerns within the industry that supply chain capability is being eroded.

Optimism for supply chain

However, the partners in the Network Rail deal are upbeat about their parts in the future of the industry. Speaking last month to RailFreight.com, Irmhild Saabel, who is head of business development at Wascosa, said that a decade after the first of their flex freight system rolled out onto the tracks, modular freight wagons are today firmly established in the market. “In the future, they will account for a substantial share of new purchases made to replace old rolling stock. This will be the case for standard freight wagons, but also for specialist freight wagons”, she said.

John Smith, the managing director of GB Railfreight, is optimistic that the deal, and his company’s part in it, will in fact be beneficial to the UK rail industry. “Being able to bring the industry together to offer an efficient flexible wagon solution to Network Rail is crucial to be able to deal with supply chain demands for the future”, he said. “Equally as important is modernisation of infrastructure wagons that will last for many years. GB Railfreight are delighted to have partnered with Wascosa to be able to offer innovative superstructures and efficient wagon maintenance to Network Rail that achieves both modernisation and future wagon supply chain demands.”

In our main picture above, John Smith, GB Railfreight, and Philipp Müller, Wascosa, shake hands on the deal. Meanwhile, as redevelopment continues, in places like Birmingham, Swindon and Doncaster, rail connections are vital to the future economy of the UK. New tracks for new purposes will undoubtedly be required and, in future, those tracks may well be delivered on the backs of modular wagons leased from Wascosa.