CD Cargo to buy used locomotives
CD Cargo will prefer locomotives with the longest remaining service life, readiness for ETCS and other European specifications and regulations.
The largest domestic rail freight carrier CD Cargo wants to expand its fleet with additional locomotives for operations abroad. The reason for this is the market situation for the lease of interoperable locomotives and manufacturers’ long delivery times.
The carrier has already announced a market survey which really has the parameters of a tender. It is looking for electric locomotives with a capacity of at least 5 MW and a 1999 or above year of production. CD Cargo will prefer locomotives with the longest remaining service life, readiness for ETCS and other European specifications and regulations. They must be approved for operation either in the Czech Republic or one of the neighboring countries or Hungary, Romania, Croatia, the Netherlands or Belgium. It is thus clear which territories CD Cargo is targeting.
CD Cargo does not specify the number of locomotives it plans to buy. Per tender documentation, the evaluation will be weighted 70% on price and 30% on technical parameters.
Tomas Toth, Chairman of the Board of Directors of CD Cargo, explains the demand by the current market situation. Manufacturers of new locomotives are facing a shortage of production components and materials. This situation is now intensified by the Russian aggression in Ukraine. “All this significantly affects the delivery times of new locomotives. The situation on the rental/lease market for interoperable locomotives is also affected,” Tóth added. For locomotive lessors, the situation is now similar, with prices rising significantly. “The high demand pressure and limited supply means that more locomotives will only be available on the market in the second half or end of this year,” Toth added.
Finding alternatives to new locomotives
The competition is an alternative to buying new machines, he said. The machines are to be eligible for operation in countries where CD Cargo is already doing business.
“We will prefer locomotives with the longest remaining service life, readiness for ETCS and other European specifications and regulations. The technical condition of the locomotives will also be assessed. In terms of types, this can include Vectrons, Tauruses or Eurosprinters from Siemens or second generation Traxx locomotives such as AC3, MS2 etc. from Bombardier/Alstom. We will assess each locomotive separately and this is by no means a list of possible types,” Toth added.
He said the company wants to keep the number of interoperable locomotive series to a minimum. “I am convinced that running only one series of interoperable locomotives is not sustainable for a carrier of our size; on the other hand, the portfolio of these locomotive series must not be too fragmented. The competition will show us the current market alternatives to new locomotives. Based on the offers, we will carefully assess whether we will go down this route,” Toth explained.