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i-maritime news letter

Titagarh Wagons' French arm on rails with 3-m order - 2012-01-09


An order worth €3 million has put Titagarh Wagons AFR (TWAFR), the French subsidiary of Titagarh Wagons Ltd (TWL), firmly back on rails.

Mr Umesh Chowdhary, Vice-Chairman and Managing Director of TWL, told Business Line that TWAFR has bagged an order for 400 oil tank wagons from SNCF, the French national railways.

Ermewa, the rolling stock leasing arm of SNCF, will lease out these tank wagons to Total of Germany.

This order also confirmed a close cooperation between TWAFR and the SNCF. “More importantly, it will help TWAFR re-establish its reputation across the continent,” he said.

The unit, one of the oldest in Europe, went into liquidation before TWL bought it over from a French court in 2010.

Mr Chowdhary said that this would engage TWAFR's productive capacity to the full through 2012 and create out sourcing opportunity from India.

“Our mandate is to supply the wagons within 12-18 months from now,” he added.

After resumption of production in the third quarter, TWAFR could despatch 18 wagons during the year to March 31, 2011.

Mr Chowdhary indicated that more orders were in the pipeline, but declined to detail at this stage.

Mr Chowdhary said some 10-15 per cent of the sub supplies would be outsourced through TWL. A number of components, such as, front chasis, hopper, bogie frame and castings have been identified for outsourcing from TWL for TWAFR.

“Initially, the value of these components would be around €5,000 per wagon. However, in a few months and with the addition of a number of castings, the value of outsourcing may reach up to €10,000 per wagon”, Mr Chowdhary said.

AFR, going forward, may produce around 100 wagons a month at its full capacity.

TWL has already cleared the stringent quality audit conducted by an European agency to produce these components including bogie frames.

These bogie frames are made out of special steel. TWL has worked closely with Bhilai Steel Plant of SAIL to develop this special grade of steel for the first time in the country.

TWL will buy “weldable” fine grain pressure vessel plates from BSP for fabricating high-speed light-weight tank wagons for AFR.

The steel with micro alloying was produced with stringent control of sulphur, BSP sources said.

Source: Hindu Business Line