VR FleetCare, a subsidiary of VR Group, is facing the challenging market situation head on, as presented by Teemu Kesävaara, Sales Manager of Freight Wagons at VR FleetCare presented at the recent IBS conference in Helsinki.
Finland's geopolitical situation has had a significant impact on railway operations. The eastern border, extending 1,344 kilometers, has seen train traffic to the east severely restricted since 2022. Currently, only a few items such as nickel and ammonia continue to be transported across this border by train, with passenger and road traffic ceasing entirely in December 2023.
In response to these conditions, Finland issued a temporary permit in 2022 for OSJD-certified wagons to be used nationally, which will expire in 2027. This regulation has introduced between 500 and 1,000 OSJD wagons into the Finnish system, featuring a track gauge of 1,520 mm. This measure has created a leasing market that will operate until the permit's expiration.
The railway sector also faces the challenge of transitioning from OSJD wagons to European Railway Agency (ERA) wagons, which conform to a 1,524 mm track gauge. This transition is complicated by an inefficient aftermarket for wagons in Finland, which limits financial options for purchasing wagons and affects the feasibility of a leasing business post-2026.
VR FleetCare is not only managing the current fleet but is also strategizing for the future. The company envisions a shift towards multipurpose wagons that can be modified throughout their lifespan, which typically ranges between 35 to 40 years. This approach is aimed at addressing the inefficiencies in the aftermarket for special purpose wagons.
Currently, VR FleetCare has a robust portfolio of over 50,000 wagons manufactured and 9,000 under continuous maintenance. Its capabilities include the production of a wide variety of wagon types, with willingness to adapt and commit to meeting diverse market needs.
The ongoing adjustments in the Finnish wagon market reflect a broader trend of adaptation within the railway industry, influenced by both internal policy shifts and external geopolitical factors. As VR FleetCare navigates these changes, its role in the Finnish railway sector remains crucial in ensuring the continuity and efficiency of freight transportation.
