Brunswick rail leasing

Form of incorporationLtd
Address115054, Russia, Moscow, Paveletskaya sq.2/2, 12th floor
Phone+7 (495) 783-06-34
Company web-site
Publish date2010-09-06


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Information Brunswick rail leasing

At the end of the last year, the rapid growth of the world and Russian economy turned into a sharp drop in production volumes in all the major industries. The decline in production in Russia has, in particular, resulted in lower railroad transportation volumes of almost all commodity groups – the key indicator characterizing the state of affairs in our industry. The scope of economic developments and their pace are so great that leading analysts have not yet arrived at a common opinion as to how long the recession will last and when we will see the economy growth again. According to the most realistic forecasts, Q1 and Q2 2009 will be especially difficult in Russia while signs of improving situation may be expected from Q3. The beginning of a new phase of Russia’s economy growth is unlikely to be expected earlier than in the middle of 2010. However the growth in railroad transportation in Russia may start much earlier. The reason is that many Russian companies are very competitive in the world market in terms of production costs. As less efficient foreign commodity producers go under, and Russian companies adapt to new economic realities, they should be able to increase their production volumes faster than their competitors. Due to lower price levels the growth in value may not be that noticeable, but transportation volumes will grow considerably in line with production volumes. In spite of its economic cataclysms, 2008 was a very successful year for Brunswick Rail allowing us not only to considerably increase the railcar fleet but also to accumulate substantial financial reserves. We pay special attention to meeting our obligations to customers under our long-term contracts and to lenders for the loans made available to us. The financial position of our company is strong and we look into the future with cautious optimism. The company strategy remains the same – investments in rolling stock to provide Russian companies with convenient access to freight railcars – a key element in the country’s transportation infrastructure.

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