Uralvagonzavod Found Large Order for Crude Oil Railcar Tanks

02.09.2009 — News

THE SVERDLOVSK OBLAST.

OAO NPK Uralvagonzavod (Open Joint Stock Company Science and Production Corporation Ural Railway Car Plant) has established a joint venture with JSC Transneft. Vostokneftetrans (Rus. abbr. for "East Crude Oil Transportation") will transport crude oil by railcar tanks after the start up of the first train of the Eastern Siberia - Pacific Ocean pipeline (VSTO).

Transneft owns 51% and Uralvagonzavod - 49% of the joint venture registered in Nakhodka, Primorsky Krai. The Urals company will hand over a large batch of railcar tanks as a payment into the registered share capital of Vostokneftetrans.

The press service of Uralvagonzavod informed RusBusinessNews that within the next 10 to 12 months up to 5,400 tanks will be made for the joint venture. The plant's management is negotiating with several state owned banks regarding the funding of this project.

It is planned that starting in 2010 Vostokneftetrans will be transporting around 15 million tons of crude annually.