VR to invest in Russian raw wood wagons

National railway operator VR Group is seeking growth from new business by investing in Russian raw wood wagons and establishing a subsidiary in Russia.

The wagons will be used for the wood import traffic of Finnish forestry companies, said a VR press release on Thursday, adding that the first wagons expected to start operation at the end of 2019.

“We are establishing a Russian subsidiary for the procurement and operation of wagons in Russia. The investment provides excellent support for our strategy, as we are actively seeking growth in new areas and strengthening our competitiveness. We also want to serve our key customers even better,” said Rolf Jansson, VR Group’s President and CEO.

VR Group will initiate the establishment of the company and the wagon procurement process. The plan is to acquire 300 wagons over the next two years.

The company will rent the wagons to VR Transpoint’s key customers in Finland, operate them in Russia and manage their maintenance agreements.

The subsidiary will also have operative responsibility for planning and managing the use of the wagons in Russia. The company will be wholly owned by VR Group. The goal is to start operation during this year.

“The company’s operations will start with wood import traffic for the Metsä Group. This is an entirely new operating model and solution for our logistics customers. We develop solutions together with our customers and want to be the best possible partner for them,” said Senior Vice President Martti Koskinen from VR Transpoint.