Uzbekistan, Tashkent, Aug. 3 / Trend D. Azizov /
Uzbek President Islam Karimov approved the feasibility study for the development of rolling stock repair facilities, organizing car-building and reconstruction of the foundry Casting and Mechanical Plant (a subsidiary of the Uzbek railroad company), a source in the leadership of the Uzbekistan Railways told Trend on Friday.
According to the feasibility study approved by the president, until 2014 it's provided for to reconstruct the foundry for the organization of production of steel, cast iron and nonferrous castings with capacity of 25,000 tons annually. In addition, it's planned to increase the volume of construction and repair of freight cars and to establish manufacture of large-capacity containers.
Total project cost is $120.18 million. Project funding is provided at own expense of Uzbekistan Railways in the amount of $71.38 million dollars and credit of the Fund for Reconstruction and Development of Uzbekistan in the amount of $48.8 million.
According to the source, the Uzbek railroad company has signed a contract with the Estonian Skinest Rail for the supply of equipment, performance of works on reconstruction of the foundry worth $54.3 million.
The project will be completed in late 2013.
A subsidiary of Casting and Mechanical Plant was founded in 2003 based on the Irgidromash plant.
The company specializes in the construction of box cars and gondolas, major repairs, restoration with the extension of the life of freight cars, the manufacture of components and spare parts for rolling stock and track structure.
Casting and Mechanical Plant in 2009 received a certificate and a permit to build a batch of cars in the Register of certification of the Federal Agency for Railway Transport of Russia, which makes it possible to gain access to orders, not only in the promising market of Russia, but also Belarus and Kazakhstan, where the document is valid.
In Uzbekistan, the total length of railways is 4,200 kilometers. About 60 percent of turnover in the country and almost 80 percent of total export and import cargo fall to the railroad of Uzbekistan.