The newsletter of VTG Rai l UK Ltd

www.vtg-rail.co.uk VTG Rail UK Ltd Sir Stanley Clarke House, 7 Ridgeway, Quinton Business Park, Birmingham, B32 1AFTel: 0121 421 9180, Fax: 0121 421 9192

ISSUE17

•SUMMER

2011

The new wagon has been designed for VTGby Lloyd’s Register Rail as either a twin ortriple set of 40ft deck length wagons to allowas many platforms as possible to be carriedin a typical 80 SLU (512 metres) train length.

Rob Brook, MD, VTG Rail UK, said: “Webelieve that by using a mixture of twin andtriple wagon sets we can achieve a total of37 x 40ft boxes on a train, whereas a trainof Megafrets with a 51ft deck length, canonly achieve 26 boxes.”

VTG named the container wagonsEcofret to emphasise their greencredentials. Rail has a muchlower carbon footprint thanroad and the wagons max-imise the number of boxes

that can be carried making them even moreenvironmentally friendly.

Brook said: ”The wagons avoid theneed for empty spaces whichare so often seen ontrains made up of60ft decklength

containerflats carrying

a single 40ft box.These empty spaces

are wasteful and createconsiderable turbulence when

running at 75mph, which increasesdrag and fuel consumption.”The middle wagon can carry one 40ft box,

or one or two 20ft boxes. If a single 20ftbox is carried it would be weight limited to23 tonnes, while the maximum payload forthe centre wagon is 62 tonnes, or 2 x 31tonne 20ft boxes.

The Ecofret wagons have a standard deckheight of 980 mm above rail and are aimedat deep sea traffic from major ports, such asFelixstowe and Southampton, where gaugerestrictions are not, or will no longer be, abarrier to carrying 9ft 6in high boxes.

A prototype of the Ecofret has been com-pleted at VTG’s Graaff facility in Germany andsuccessfully underwent TSI noise testing atthe end of May. The wagon is now in testingin the UK and is expected to be approved foroperational service later this year.

Ecofret – a new kind ofcontainer wagon

VTG has unveiled its latest innovation– the Ecofret – a new kind of container wagondesigned to maximise a containertrain’s payload.

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OnLine issue 17 | summer 2011

VTG grows its biomassbusinessIn April VTG Rail UK increased its presencein the biomass market when it signed afurther long term agreement with GB Rail-freight for the supply of an additional fleetof 21 HYA hoppers to support the freighthaulier’s biomass delivery contract.

The wagons will supplement the existingGBRf fleet of 25 wagons which transportpelletised biomass from Port of Tyne toDrax Power Station near Selby, NorthYorkshire.

The wagons are being built to the same

proven specification used on the initial fleetof wagons introduced by VTG last year, andwill incorporate all of the upgraded featureswhich have been developed during the firstsix months of operation, particularly takinginto account the lessons learnt during thesevere winter period.

Delivery of donor wagons for conversionto W.H. Davis, Shirebrook where the workwill be carried out, commenced in April andthe project is scheduled for completionbetween July and August 2011.

Compared with its fossil fuel counterparts,such as coal and gas, biomass producesconsiderably less carbon dioxide andsulphur dioxide. Therefore, burning biomassenables Drax to meet its targets for reduc-ing its emissions of carbon dioxide, whichwill be further helped by the introduction ofa second rake of wagons.

March 2011 saw the return to service of thefirst cement wagons in their brand newgreen and yellow livery a key deliverable ofVTG’s purchase and lease back agreementwith Tarmac Buxton Lime and Cement (TBLC).

Now in the third year of the 15-yearagreement VTG owns the fleet of 20aggregate hopper wagons and 30 pressuredischarge cement tanks, which it leases toTBLC.

Crucially to the contract VTG’s dedicatedFleet Operations team manages the wagonson a day to day basis, ensuring that all par-ties, including maintainers, customers andhauliers, are liaising as required to achievetargeted availability, whilst keeping thewagons safe and in good order. As well asroutine maintenance VTG manages anyrepairs that might become necessary andorganises other ‘fleet specific’ activities asrequired.

In addition to carrying out the re-liveryingof both fleets, VTG has carried out a numberof other pre-agreed activities covered bythe same purchase and lease back agree-ment. These included the replacement offailing internal reinforcement plates in thehoppers to ensuring that the structuralintegrity and lifespan are assured.

Ian Shaw, Sales and Marketing Director,VTG Rail UK, said: “The agreement with TBLCis a good example of the long term con-tracts we offer, and how we are able to

tailor a package that securely fulfils thecustomer’s rail wagon supply requirements,whilst also providing the independence toallow them to take advantage of today’scompetitive rail haulage market.”

In this instance having VTG as the fleetowner has allowed TBLC to concentrate onits core business activities, knowing thatthe cost of any attention to the wagons isalready covered.

New livery for tarmac wagons

Mabanaft contract startsVTG Rail UK has reached an agreement to supply 25 tank wagons to DB Schenker on anew traffic flow for Mabanaft, the trading arm of a leading independent petroleumcompany Marquard & Bahls AG.

Mabanaft recently contracted DB Schenker to transport petroleum products from SimonStorage Ltd at Immingham to its storage and distribution terminal in Cardiff. Paul Lugg,VTG UK’s Tank Fleet Sales Manager, said: “This new petroleum products traffic started attwo trains per week but we anticipate that this may increase due to demand. It iscurrently utilising one train set of 25 wagons to haul a range of distillates, including derv,kerosene and gas oil for motor vehicle fuel and heating.”

Although perhaps not a common household name, Mabanaft Ltd is one of the premierindependent fuel wholesalers in the United Kingdom and owns a portfolio of independ-ently operated, strategically situated, sea-fed fuel terminals in the UK, including Thames,Tees, Avonmouth and Ross in addition to those involved in this traffic. Now in their fifthdecade in the UK they have established a strong reputation as a key supplier to inde-pendent distributors, retailers, hauliers, marine-bunker providers, supermarkets, and thecommercial/industrial sectors.

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OnLine issue 17 | summer 2011

In January VTG AG (WKN:VTG999) deliveredthe first batch of its newly developed com-pressed gas tank wagon to Evonik. The new“Volume112” wagon is the result of collabo-ration between VTG and the manufacturingplant Graaff, and represents an importantdevelopment in wagon design.

Dr. Heiko Fischer, CEO, VTG AG, said: “Withthe development of the Volume112 we arebenefitting from the advantages of ourinnovation platform Graaff. The input andbringing together of both VTG’s and Graaff’stechnical expertise has, through coopera-tion, led to a product with high value forthe customer.”

The new wagon is the same length (18mover buffers) as the previous design butnow provides the benefit of a much highervolume of 112 cubic metres. Previously thistype of wagon normally had a capacity of110 cubic metres. It was possible toincrease the volume by lengthening the

tank within the legally permitted limits andwithout lengthening the underframe. Thisnot only means that the cargo weight can

VTG achieves new“Volume”

In December 2010, VTG AG (WKN:VTG999) announced that it had increasedits shareholding in TMF S.A, the Frenchrail logistics company, from 75 per centto 100 per cent.

This followed the news in July that VTGhad successfully taken over 75 per centof the shares in TMF held by the com-pany Ermewa. With the purchase of theremaining 25 per cent of shares, VTG hasnow taken over TMF in its entirety.

In 2009, TMF achieved sales of EUR 59million and employed 25 staff, mainlybased in France. The company is alsorepresented in Belgium, the Netherlandsand Germany through three small sub-sidiaries.

In 2009, TMF also transported somethree million tonnes of grain, making itone of the two major French providers inthe market.

• Increased revenue and EBITDA comparedto the previous year

• Extended wagon fleet with new acquisi-tions

• High growth in the Logistics Division• Positive outlook for 2011• Proposing 10 per cent dividend increase to

EUR 0.33 per shareIn April VTG AG announced its figures for thefinancial year 2010. Compared to the previ-ous year, Group revenues rose by 8.2 percent to EUR 629.4 million.

Operating profit (EBITDA) rose by 3.4 percent to EUR 154.4 million, achieving thehigher end of previous forecast.

“As an integral component of the valuechain in many European industries, andafter completing 2009 without beingaffected by the crisis, VTG was again highlysuccessful in 2010. On our growth path, wesucceeded in positively positioning and fur-ther developing our business lines in themarket,” concludes Dr. Heiko Fischer, Chair-

VTG increasesTMF shares to100 per cent

VTG reports increased profits andcontinues its growth path for 2011

News from the group

be better utilised, in the case of many com-pressed gases, but also increases the costeffectiveness of this option.

man of the Board of VTG Aktiengesellschaft.In particular VTG was able to achieve

growth especially in its logistics business.“With our new acquisitions of rail freight

cars and wagons for agricultural products,we succeeded in taking a big step towardsthe diversification of our fleet. We are nowpositioned for our future and it allows us tooffer our customers a broader product port-folio,” adds Fischer.

In 2010, Group revenue rose by 8.2 per-cent to EUR 629.4 million. EBITDA rose by 3.4per cent compared to the previous year, toEUR 154.4 million, returning to the levelsachieved in 2008, the Company’s recordyear. Group earnings saw a slight decline byEUR 1.9 million to EUR 20.6 million as aresult of higher depreciations. As of 31December 2010, the Group employed 999staff, including 709 in Germany and 290abroad.

The full report can be viewed on the VTGwebsite www.vtg.com

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OnLine issue 17 | summer 2011

Bitumen on track

VTG’s fleet of 30 new bitumen wagons havenow been running successfully in servicebetween Lindsey Oil Refinery and Preston forthe last six months. VTG supplied its cus-tomer Total Bitumen with the first 26wagons in November 2010 and deliveredthe remaining four in January of this year.

The Rail Freight Group (RFG) and the Char-tered Institute of Logistics and Transport(CILT UK) have announced the launch of anew training course, ‘Demystifying railfreight: Become an informed user of railfreight services’.

Designed to help companies improve theirunderstanding of the benefits moving torail, the course is aimed at logisticians whomay view the sector as complex or costly,but want to investigate the possibility ofmodal shift. The CPD accredited courseseeks to expose some of the myths sur-rounding the sector.

Announcing the new collaboration, TonyBerkeley RFG chairman, said: “From talkingto many people, including some of ourmembers, we have identified a need tobetter inform transport buyers of the bene-fits of the sector. We want to help customerscut through the incredible complexity thatseems inherent to the rail freight sector, sowe thought we would launch a very interac-tive course as a start to that process. Wewant to try and help people understand thesector much better and the cost and envi-ronmental benefits that it can offer.”

As a participant in the planning of thecourse, VTG is keen that its benefits areshared with the maximum number of poten-tial railfreight customers. Ian Shaw, Sales andMarketing Director, said: “VTG was pleased toplay its part in planning the content of thecourse and we hope it will prove useful toboth new and existing railfreight users.”

The course comprises a number of oneday training seminars – the next planned forSeptember. For further information, pleasecontact Tony Berkeley (tony@rfg.org.uk /07710 431542). For further information onCILT or to book a place on the course, pleasecontact Dorothea Carvalho (dorothea.carvalho@ciltuk.org.uk / 020 73481975).

DemystifyingRail Freight

Minister endorses NSAREApprenticeship toFellowship schemeOn the 22nd June, Rob Brook MD of VTG RailUK LTD and member of the National SkillsAcademy for Rail Engineering Boardattended NSARE’s first major conference atthe IMechE where John Hayes, Minister forEducation, Skills & Lifelong Learning,endorsed the Industry’s Apprenticeship toFellowship scheme at NSARE’s first majorconference at the IMechE.

Nearly 200 industry representativesattended the conference which was chairedby Terry Morgan, Chairman of Crossrail andas well as John Hayes included speakersrepresenting Network Rail, Transport forLondon, the Rail Freight Group, the NationalRail Contractors Group, the Railway Industry

Contractors Association, the IMechE and theIET, RIA and the Young Railway Professionalsas well as NSARE.

The Apprenticeship to Fellowshipscheme, which is being led by NSARE andinvolves all the professional engineeringinstitutions with an interest in railwayengineering, will enable apprentices togain professional recognition at all levelswithin their engineering institution, andwill provide an equally valued route to thetop of the engineering profession in addi-tion to the traditional academic route. Itwill transform career opportunities forengineering apprentices joining the rail-way industry.

In addition the conference agenda includedan update regarding NSARE developmentsduring its first five months of operation andthe launch of the NSARE Limited Member-ship scheme. The Membership scheme isopen to employers and training and skillsorganisations and provides the opportunityto shape the future development of theSkills Academy through attendance andvoting at the NSARE Limited AGM. In addi-tion, Member organisations will be listedwithin the Skills Academy’s literature. It isan opportunity for organisations involved inrailway engineering to demonstrate theirsupport for NSARE which has been createdby the industry for the industry.

The wagons have far superior insulationto those they replaced and have been wellreceived by Total’s operators who com-mented that when the loaded wagonsreach the Preston discharge terminal, thetank cladding is almost as cool as whenthey are empty.

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OnLine issue 17 | summer 2011

Managing Director Rob Brook presentedthe VTG-sponsored Railfreight Excellenceof the Year award to railfreight haulierGB Railfreight at the 2010 Rail BusinessAwards.

The ceremony was held at the LondonHilton, Park Lane on 17th February, 2011and is the third year of VTG’s sponsorship ofthe category.

GBRf was presented with the award forthe way the company has continued togrow, despite difficult economic conditions.The company had renewed and expandedseveral of its long-standing customers aswell as generating significant volumes ofnew business.

Engineering studentAlex Cotton has beenworking in VTG Rail’sengineering departmentsince January this year.

Alex, who is on a sixmonth placement,joined VTG through theYear in Industry scheme

(YINI). The YINI provides high quality paidplacements for degree students either intheir gap year, or during their course. Alex,20, is currently in his third year of a Mastersin Mechanical Engineering at the University ofSheffield. As part of his course Alex spentthree months at the end of last year in Lyonat a French engineering university.

Alex said: “I’m very grateful for the oppor-tunity to work for a company as successfulas VTG!”

During his time with the company, Alexhas worked on a wide range of projects,and in particular taken responsibility fordealing with the introduction to service ofthe company’s new fleet of bitumen tankwagons. Alex has also been heavilyinvolved with the restructuring of VTG’smaintenance documentation as part ofProject Chrysalis.

Outside of work Alex enjoys playingcricket, golf and football and followsChelsea FC.

New ROGS Regulations impactWagon Keepers and ECMs

VTG presents GB Railfreight with topfreight prize

This summer an amendment to the Railwayand Other Guided Systems (ROGS) regula-tions will be introduced by Order ofParliament, as the first stage of imple-menting the EU Directive bringing aboutEntities in Charge of Maintenance (ECM).

This initial regulation will require WagonKeepers to register an ECM in the NationalVehicle Register (NVR) and it will also cre-ate two criminal offences in section 18A.

The first will be the offence of operatinga wagon on the UK railway network with-out a registered ECM in the NVR and willapply to Keepers and Railway Undertak-ings. The second offence will apply if theregistered ECM does not ensure that avehicle it is responsible for has beenmaintained in a safe condition and is safeto run on the network. The new offenceswill come under section of the Health andSafety at Work etc Act 1974 which carries amaximum penalty of 12 month imprison-ment, plus a fine of up to £20,000). Adefence of due diligence is also being

created in ROGS, which helps to mitigateany concerns that a duty to ensure vehiclesare safe to run on the network is (a) tooonerous, and (b) does not take into accountthe possibility that the duty holder hastaken all reasonable steps or due diligenceto avoid committing the offence.

All this may sound rather frightening, asUK Keepers have until now been protectedby the Private Wagon Registration Agree-ment (PWRA), thereby sharing responsibilityfor how maintenance is done with NetworkRail. This arrangement will continue underdue diligence, until ECMs are certified asrequired in of ROGS starting in 2012 whenthe ECM will become fully responsible. ThePrivate Wagon Federation (PWF) of whichVTG is a member is still very active in dis-cussions with the Office of Rail Regulation(ORR) about how this requirement will beintoduced and how ECMs will become certi-fied. Amongst other things, it is still unclearwhat level of technical expertise will berequired inside an ECM, and what expertise

can be ‘bought in’ without taking away fromthe ECM the responsibility for the safemaintenance of the wagons in its charge.

VTG has declared its intention to act asboth Keeper and ECM for all of the wagonsin its fleet, utilising its strong in-house Engi-neering and Fleet Management resources.

For private wagon owners without thislevel of in-house capability, VTG can offerassistance in the form of either a ‘sale andleaseback’ agreement or, should it bedesired to retain ownership of the fleet,a bespoke wagon management package.

Both offerings provide the customer thesecurity of knowing that its key rail trans-port assets are being safely managed withavailability maximised, whilst giving themthe freedom to negotiate the best deal intoday’s competitive rail freight haulagemarket.

To discuss what VTG can do to assist withyour rail wagon requirements or simply tofind out more about the changes in theindustry, please contact us.

Work experience

One contract of particular note, was GBRf’sagreement to deliver biomass regularly toone of Britain’s biggest power stations,which puts the freight haulier at the fore-front of environmental development withthe rail freight industry.

Rob said: “For many 2010 was a difficultyear though despite the difficulties, GBRfmanaged to operate more trains and makea bigger financial contribution than everbefore. “It achieved this by consolidationand by its ability to bring innovation to theindustry and its constant attention to per-formance improvement making it apleasure to present the company with theaward for Railfreight Excellence of the Year.”

OnLine issue 17 | summer 2011

www.vtg-rail.co.ukOnLine is the copyright of VTG Rail UK Ltd. Produced by Woodhouse Communications. Telephone 01444 221000. Design: Woodhouse Creative.6

Ian Shaw, VTG Rail UK’s Sales and MarketingDirector, celebrated ten years of service inMarch having joined CAIB UK (part of Bram-bles’ European rail division) in 2001 fromAlstom Transport. To mark the occasion Ianwas presented with a ten year serviceaward.

Initially, Ian joined the Central Procurementteam at EVA GmbH in Dusseldorf, secondedto the UK as Project Engineer. Previously hehad worked as Project Engineer on the newVirgin WCML Pendolino tilting trains, andbefore that at Westinghouse Brakes, bothproviding good experience for his move towhat would become VTG Rail UK.

During this period Ian project managedthe introduction of the company’s newgeneration tank wagons on track friendlybogies plus its fleet of excavator carriers forNetwork Rail. He was also involved in theintegration of CAIB UK into the VTG Group aspart of its acquisition from Brambles.

In 2003 Ian took over the non-tank side ofthe business as Bulk Fleet Manager as partof an internal reorganisation. Whilst in thisrole he concluded the sale and leaseback ofCorus’ 66 vehicle coil carrier fleet, managingits hood replacement program, followed bya deal to add a further 40 new wagons ofthe same design. He was also involved inthe sale of VTG’s former wagon maintainer,Marcroft, to an MBO team, as well as reach-ing landmark agreements to supply VTG’snew generation, aluminium bodied, pres-sure discharge wagons to Lafarge Cementand Castle Cement.

Following Rob Brook’s appointment asVTG’s new MD in 2007, and the subsequentintroduction of a new company structure,Ian moved to the new role of Sales Man-

Ten years of success

ager. In this role his major achievementsincluded finalising the sale and leasebackdeal with Tarmac which has just entered athird successful year. Ian also introduced anew aggregate hopper fleet with MendipRail and a new coal hopper fleet for GBRailfreight in 2009, followed by the firstever biomass fleet in 2010.

2011 saw a new contract with GBRf for asecond fleet of biomass wagons and, look-ing forward to the rest of the year andbeyond, Ian is optimistic about VTG’s future.He comments “Despite some uncertaintiesthat may still exist in the wider economy, Iam confident that the future for rail freightremains bright. The environmental creden-tials of rail compared to other forms oftransport remain beyond question, and VTGwill continue to play its part in driving downthe UK’s carbon emissions”.

Helen Day, a Finance and Quality Controllerfrom Westcode UK, is the fourth winner ofVTG’ s competition to see who can send in apicture of themselves reading a copy ofOnLine in the most unusual place or situation.

Helen is seen pictured with ‘The Stig’ atthe Gadget Show Live in Birmingham.

For your chance to win an iPod, VTG wouldlike to see who can capture a picture ofthemselves reading a copy of OnLine in themost unusual place or situation.

Please send your details to Caitlin Lippittat caitlin.lippitt@vtg.com. The closing datefor entries is 29th October 2011. Standardcompetition rules apply.

The VTG Challenge

“Despite some uncertainties thatmay still exist in the widereconomy, I am confident thatthe future for rail freight remainsbright...”

Ian ShawSales and MarketingDirector

If abseiling 220 feet down England’s highestwaterfall in 2010 wasn’t enough, this yearthe team at VTG took on the ‘Yorkshire ThreePeaks Mountain Challenge’ for its chosencharity Marie Curie Cancer Care.

Taking place on 2nd July 2011, the eventwas a ‘true challenge’ for any walker andinvolved summiting the three peaks in oneday. The famously demanding 26 mile hiketook in the three highest peaks in Yorkshire:Pen-y-ghent (2,277 ft), Whernside (2,415ft) and Ingleborough (2,375ft).

In the words of the organisers: “Not to beunderestimated, the ever changing terrainand weather of the ruggedly beautiful York-shire Dales will not only test your physicalstamina and capabilities, but push you toyour limits.”

In the words of some of the team mem-bers: “Twenty six miles? Aaaaargh!”

As in 2010, VTG are hoping to raise asmuch money as possible for Marie CurieCancer Care, which provides free nursing topeople with terminal cancer and other ill-nesses, and in doing so gives them themost important choice of dying at home,supported by their families.

VTG’ s team comprised of Ian Shaw,Debbie Field, Rajesh Sharma, Nigel Day,Mark Pumphrey and Maria Connolly.

If you would like to sponsor VTG for its 2011charity event, donations can still be madethrough the VTG Rail UK Limited page onJustGiving http://www.justgiving.com/VTG-Rail-UK-Limited0

Three Peaks forcharity

Abseilingfor AcornsOn 15th May Janet Sheppard, a Fleet Con-troller at VTG, abseiled down the 110ft FortDunlop Building in Birmingham in aid of thevery worthy cause of the Acorns Children’sHospice. Janet has raised £750 so far.