Georgia’s state-owned enterprise Georgian Railway (GR) is to purchase 200 new freight railcars from Russia’s JSC Roslavl Railcar Repair Plant (RRRP), which is based in the Smolensk region, the Georgian State Procurement Agency has stated.
The purchase price is US$9.6 million excluding VAT. According to the agreement, the railcars must be delivered within 60 calendar days of the date of the agreement, while payment will be made in Russian rubles at the exchange rate set by the National Bank of Georgia on the day of signing the act of acceptance and transfer of the goods.
In accordance with the terms of the contract, the first major overhaul of the railcars is envisaged no earlier than after four years or 350,000 km of operation, whichever period comes first. RRRP is also responsible for fulfilling the obligations envisaged by the warranty and for reimbursing the corresponding expenses in the event of factory defects.
GR has previously tried to hold tenders for the purchase of freight railcars—in July and February this year, and before that in October and December 2023. The tenders were declared unsuccessful due to the absence of bids or the disqualification of participants. However, the Georgian government announced a large-scale modernization of the railway in April this year with investments of US$1.7 billion until 2036. The purchase of 50 new locomotives and 1,500 new railcars is planned as part of the program.
The Roslavl Railcar Repair Plant has been producing railcars since the early 1990s, including tank cars for transporting petroleum products. It has produced gondola cars since 2006, platforms for transporting large-capacity containers and universal platforms since 2012, and platforms for transporting timber and tank cars for transporting vegetable oils since 2013.
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