OnLineIssue 13

Spring 2009

The newsletter of VTG Rail UK Ltd

To keep you informed and on track

www.vtg-rail.co.uk

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

In January, staff at VTG’s head-quarters found themselves onthe receiving end of phone callsfrom the USA, as news of thecompany’s pioneering study intothe effects of bio fuel reachedAmerican soil.Interest in VTG’s research proj-

ect started back in December,when the wagon leaser issued apress release outlining the studyand its results to media in the UK.With bio fuel – following new

European legislation and the con-tinuing focus on environmentalissues – such a hot topic rightnow, interest in the story quicklygrew, with reporters and maga-zines in the States and beyondwanting to cover the story.VTG started work on the study

back in 2007, after new EU

Directives were launched requir-ing members to increase theconcentration of bio additivesin fuel to 15% by 2020.Realising that this would mean

many of its customers wouldhave to carry this new type offuel, VTG wanted to ensure thatit could transport it safely, withno adverse effects to its wagons.So VTG launched a 12-month

study in conjunction with liningmanufacturers, looking at theeffects of bio fuel on railwaywagon components and liningmaterials.The study focused on petro-

leum products with 5% bioadditive, the level of additivecurrently allowed in bio fuels. Totest whether the bio fuels wouldreact with the linings VTG carried

out immersion tests with 5% biodiesel and 5% bio ethanol over a12 month period.The research not only looked

at the effects of the fatty acidmethyl ester additive (FAME) inbio diesel but also the effects ofbio ethanol, which is the additivein petrol but not currently carriedin wagons, to ensure VTG’s railwagon fleet is able to carry alltypes of bio fuel safely.Following ongoing internal

inspections of the wagons,no softening or swelling wasdetected and the results showedthat the additive did not have anyaffect on the lining other thansome minor discolouration, whichdoes not affect performance.This led to VTG concluding that

at the current concentration of

5%, bio additives have noadverse effects on its vehicles.Paul Lugg, Tank Fleet Manager

VTG, commenting on the resultssaid: “Following the results ofthe study VTG has approvedthe use of bio fuels in its tankvehicles but at the momentrecommends that the bio addi-tive concentration should notexceed the 5% limit.”So while the tests show that

wagons can carry bio fuel meet-ing today’s requirements of 5%,VTG are looking beyond thisand conducting further tests toensure that its wagon fleet cancope with higher concentrationsto meet the new EU Directiverequiring member states to in-crease the concentration of bioadditives in fuel to 15% by 2020.

In December last year, VTG launched the results of its 12-month study on the effects of bio fuel onrailway wagon interiors. With the study believed to be the first of its kind to be conducted, the storyreceived considerable attention from the press in the UK, Europe, Asia and America.

VTG bio fuelstudy makes

waves aroundthe world

VTG bio fuelstudy makes

waves aroundthe world

OnLine issue 13 - spring 2009

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VTG helps First GBRf sourcecoal wagons closer to homewith a new contract for 89British built HYA hoppers

VTG Rail UK has taken its firststeps in the coal market follow-

ing a new contract to supplycoal wagons to freight operatorsFirst GBRf.Under the terms of the new deal

VTG will provide First GBRf with89 brand new HYA wagons,which will be constructed inBritain by wagon-builders WH

Davis, at their workshop at Shire-brook, in Nottinghamshire.VTG is working with Interna-

tional Rail Services (IRS) on thedesign of the wagons, which willmirror First GBRf’s existing fleetof HYAs, built in Romania in2006.

In January VTG signed a new15-year agreement with TarmacBuxton Lime and Cement (TBLC)for the purchase and lease backof its key fleet of 50 wagons.Under the new arrangement

VTG has taken over ownershipof 20 aggregate hoppers and30 pressure discharge cementtanks and then leased themback exclusively to the cementand lime producer for the dura-tion of the contract.As the new owners of the

wagons, VTG has taken onresponsibility for maintenance,repair and all other aspects oftheir upkeep, relieving TBLC ofthe ever increasing and expen-sive process of complying withthe stringent safety and regula-tory requirements placed on theowners of freight rolling stock.By choosing to do a deal of this

nature with VTG, an independentwagon leaser, rather than enter

into a arrangement with a freightoperating company, TBLC hasgained the freedom not only tonegotiate the best haulage dealsin an ever more competitivemarketplace, but also the abilityto readily switch haulier, shouldperformance demand it.The contract was officially

signed by TBLC’s BuildingProducts Director, Clive Jamesand commenced on 1 January2009.Ian Shaw, VTG’s Bulk Fleet

Sales Manager said: “We aredelighted to have been awardedthis new contract with TBLC,which will give them long termpeace of mind on wagon avail-ability and operability. Our leaseback deals are completelyseamless, meaning wagons canstay in service throughout thetransaction allowing TBLCto continue its business uninter-rupted, while we take care of all

of the legal and maintenancerequirements of wagon owner-ship.”Following on from the provision

of 48 new aluminium wagons toLafarge, and an additional fleet

to Castle Cement, the new dealis particularly significant for VTG,as it means that three out of theUK’s four cement manufacturersnow use the company for thesupply of wagons.

New 15 year deal cemented

VTG enters the coal marketThe wagons have proved

popular with power station andterminal staff and they providehigher payloads per wagonlength than previous models.Rob Brook, Managing Director

at VTG Rail UK said: “We aredelighted to be joining forceswith First GBRf to help themincrease their coal fleet as weexpand our presence within theUK coal market. Working withwagon-builders WH Davis, weare pleased to be offering coalhoppers that are at the forefrontof wagon efficiency, helping FirstGBRf to continue its impressivedelivery rates within the coalsector.”The wagons are due for deliv-

ery at the beginning of April,helping First GBRf strengthenits position in coal services.John Smith, Managing Director

at First GBRf commented:“Having commenced my careerconstructing carriages at York itis extremely encouraging to seethe manufacture of our new wag-ons being sub contracted to aBritish firm. We are looking for-ward to working with VTG as wecontinue to increase our pres-ence in the coal market.”

VTG sponsored footballteam are cup finalchampions!It’s been a good few weeks forthe girls at Coventry City FootballClub, not only have they becomethe proud possessors of thefirst ever Pink Breast CancerCampaign football kit, they havealso, following a spectacularperformance by all, added newsilverware to their trophy cabinetby winning The Open Cup.Previously playing in blue

socks, shorts and shirts thenew kit was a big change forthe team, who play at Wolston

Leisure Centre and came cour-tesy of VTG Rail UK, who haveagreed to sponsor the squad.The idea to play in such a

vibrant colour came from thegirls themselves and the BreastCancer Campaign readily agreedto their emblem being includedon the strip.The club are the first football

club of any standard in the coun-try to be allowed this privilege(it comes in recognition of theirefforts to support the campaign)and it makes Coventry City Girlsthe official football ambassadorsof the Breast Cancer Campaign.And it is clearly a role the

girls take very seriously, if cupmatches are anything to go by.That’s because the team playedtheir socks off and successfullyretained The Open Cup after atough encounter against localrivals Coundon Court at the endof March. The game showed allthe characteristics of a typicalcup final and, with both sidestrying to play different styles offootball, it proved to be a wellfought affair.Coundon took the lead after

just 20 minutes, however,to their credit, City bouncedstraight back into the equationwhen Sam Pattinson netted onlythree minutes later.From this point, City began to

stamp their authority on the gameand after 30 minutes Sarah Gileslatched on to an effort from 20yards to give City the lead at 2–1.

Coming out for the secondhalf, Coundon equalised as theybroke down the left hand side.Determined not to let the silver-ware slip away, City brokealmost immediately and SamPattinson met the ball with herhead to score the winning goal.Celebrating in the crowd was

VTG’s very own ManagingDirector Rob Brook, who said:“At VTG Rail UK we firmly believein supporting the local commu-nity and we try whereverpossible to give something back,be it through charitable dona-tions or opportunities like this,which help young people stayactive through sports. We aredelighted that Coventry City Girlshave retained The Open Cup andhope the new kit helps them tocontinue to play well for the restof the season!”

OnLine issue 13 - spring 2009

3

Coventry City Girls 3–2 Coundon Court Ladies

VTG Rail UK’s pioneeringcement wagons celebratedtheir first birthday in April,following 12 months ofmoving material for HansonCement from Clitheroe toGlasgow.

The UK’s very first aluminiumbogie cement wagons havemoved more than 150,000tonnes of cement in the first 12months of a ten year deal withHanson Cement, (formerlyCastle Cement).Introduced by VTG Rail UK

the wagons marked the returnto rail transportation from theRibblesdale plant for the cementprovider, and in the twelvemonths since they enteredservice the railway wagons havealready saved the equivalent ofaround 5,000 lorry journeys.Running three times a week

from Hanson’s production unitnear Clitheroe in Lancashire, toits storage and distribution centreat the Mossend Railhead nearGlasgow, the cement trainscarry an average of 1,040tonnes compared to just 29tonnes per lorry. With every tonneof freight carried by rail produc-ing at least 80% less carbondioxide than by road this alsorepresents considerable savingsin terms of the amount of C02released into the atmosphere.Rob Brook VTG Rail UK’s Man-

aging Director said: “Hansonwanted a more environmentallyfriendly way of transportingcement to Scotland. The wagonswe provided, with their innova-tive aluminium body constructionto minimise tare weight and highperformance pressure dischargesystem, are able to carry fargreater volumes, more efficiently,than their road counterparts.We are very pleased that the

Many happy returns

wagons have made such a bigcontribution to reducing roadtraffic and look forward to thegood work continuing in theyears to come.”Hanson Cement’s Managing

Director Jon Morrish said: “As

the UK’s leading supplier ofheavy construction materials wemove over 3 million tonnes ofaggregates and cement by railevery year. We have been verypleased with the performance ofthese wagons.”

VTG’s cement wagons are saving thousands of tonnes of CO2 from being released intothe atmosphere.

In the pink

OnLine issue 13 - spring 2009

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Until recently one of the railindustry’s biggest awardceremonies had no specificcategory for freight.Thankfully that has nowchanged thanks to VTG, withthe launch of the FreightExcellence award at the 2008HSBC Rail Business Awards.

Now in its eleventh year, theHSBC sponsored Rail BusinessAwards is one of the most re-spected and well attended awardceremonies in the rail industry. Itincludes categories for a rangeof different railway disciplines,including marketing, PR, informa-tion technology, safety and

security. And while freight opera-tors could compete alongsideTOCs for the ‘Train Operator ofthe Year’ title, they didn’t have anopportunity to gain recognitionfor the services they supplyseparately from passengeroperators. In an attempt to re-address the balance the Awardsorganisers, with the help of VTG,launched a new category exclu-sively for freight organisations.Named ‘Freight Excellence of

the Year’ the new award looksfor excellence in different areasof freight business.VTG was approached by the

Awards organisers to sponsorthis newly created category backin September, and it was onlytoo pleased to step in and help.

VTG’s Managing Director RobBrook explains why: “Rail freightplays a significant part inBritain’s economy. In the past10 years it has grown by almost50%, with eight rail freight com-panies now operating in the UK.We work closely with the major-ity of these companies to supplyrailway wagons that increase ef-ficiency and improveperformance across the indus-try, so sponsoring an awardcategory which recognises andrewards success in this field wasa very good match for us.”The awards were held at Lon-

don’s Grosvenor House Hotel inMayfair on Thursday February19 and the new category at-tracted significant interest from

the freight community, with anumber of submissions fromoperators and suppliers.After much deliberation, the

judging panel selected TheMalcolm Group as the winner ofthe inaugural freight award forthe development of a trapeziumshaped curtain-sided swoopwagon body that allows largerloads to be transported withinrestrictive loading gauges.Ian Shaw, Bulk Fleet Sales

Manager at VTG Rail UK pre-sented the award to the winnersand said: “We are absolutelydelighted to be involved fromthe very beginning of what webelieve is an exceptionally impor-tant addition to the Rail BusinessAwards.”

A first for freight

Paul Lugg, Tank Fleet SalesManager at VTG, is amember of the RollingStock Standard Committee(RST SC). Here he explainshow the committee worksand the type of the issuesit tackles.

Back in 1995 when Railtrack wasfirst established it was chargedwith creating standards for thesafe and efficient running of therailway. In order to achieve thisvarious safety standard commit-tees were established fordifferent areas of the industry,including the Rolling StockSubject Committee, as it wasthen known, (it became theRolling Stock Standard Commit-tee in 2006). The function ofthese committees was to initiallyoversee the drafting and subse-

quently review and amend Rail-way Group Standards.The RST SC is made up of 18

senior railway engineers fromacross the industry. The commit-tee meets every month and itsmain duties include approvingchanges to Railway GroupStandards (RGS), includingnew standards, together withassociated Codes of Practice,Guidance Notes or industryadopted standards. The experi-ence and broad knowledge baseof the board members ensuresthat decisions made by the com-mittee are pragmatic and are inthe best interests of the industryas a whole.In addition, the committee also

considers, and where appropri-ate approves, derogations andtemporary non-compliancesagainst the requirements man-dated by the standards. As wellas making decisions about dero-

gations for new railway vehicles,the committee also reviewssafety significant accidents andincidents involving railway vehi-cles already, providing futurerecommendations and advice.As the influence of Europeanstandards now significantlyaffects UK rolling stock require-ments, the committee also takesan active interest in the develop-ment of all applicable Europeanstandards and legislation.Paul is a Chartered Engineer

and has been a member of thecommittee for the past sevenyears. He has found his 32years of experience of the rail-freight industry invaluable inassisting the committee in its de-liberations. He has also gained acomprehensive understanding ofissues affecting the passengerrailway and how a structuredapproach to resolving conflictswith standards can overcome

the difficulties, without incurringlong delays to rolling stockproduction and without compro-mising safety.The introduction of the

Interoperability Regulations andthe Technical Specifications forInteroperability which supportthem, is likely to create prob-lems as there is currently noequivalent process for quicklyresolving conflicting standardsrequirements. Long delays andconsiderable extra costs may beincurred in future if the processof seeking derogations throughthe Department for Transportthen the European Rail Authorityand finally the European Com-mission has to be adhered to. Ithas to be hoped that a fast trackresolution of these difficulties,similar to the Standards Commit-tee process, can be introducedif severe disruption to the UK railindustry is to be avoided.

Industry issues:

Getting safety on track

Freight given the

opportunity to shine at

industry awards thanks

to VTG

Freight given the

opportunity to shine at

industry awards thanks

to VTG

OnLine issue 13 - spring 2009

5

Although severe rail accidentsare rare within the EU, they dounfortunately occur. The maincauses are typically either humanerror or equipment failure, withthe majority being equipmentrelated.Within the equipment related

figures, a significant proportionhave been linked to failed train

wheels and axles and, as the railnetworks become busier andtrain speeds increase, this num-ber is expected to continue togrow. Minimising wheelsetfailures also helps to reducemaintenance costs, and is aconsideration for both trainand light rail vehicle operators.Understanding this, in October

2008 The SafeRail Group, withthe help of part funding by theEU under the 7th Frameworkprogramme, took the historicstep of establishing a workinggroup to focus specifically onfinding solutions to this issue.The initiative has brought

together different Europeanorganisations with expertise andexperience in all areas of wheel-set technology, and includes AlfaProducts & Technologies, EMEF

SA, Envirocoustics A.B.E.E., Feld-man Enterprises LTD, Instituto deSoldadura e Qualidade, SociétéNationale des Chemins de ferFrançais (SNCF), Technical Soft-ware Consultants Ltd, TWI Ltd,the University of Birmingham,Vlaamse VervoersmaatschappijDe Lijn and VTG Rail UK Ltd.Working together over a three-

year period, the group is seekingto minimise wheelset failures intwo separate ways.The first is implementing a

novel on-line inspection systemthat would look for faults onvehicles whilst running in serv-ice. The system will be placedat pre-chosen strategic points onthe rail network and will monitorfaults in the wheels and axles ofpassing trains. It will look at arange of defects including flatsin the wheels, defective wheelsetbearings, significant cracks andwheel profile abnormalities.Using a special identification

system, each wheelset will begiven a unique code. If a faultis identified on a wheelset, thesystem will automatically alertthe signalling engineers who willthen decide what action to takefor that particular train, i.e.advise maintenance, reducespeed or stop it completely.The second part of the project

involves developing an inspec-tion system for new andin-service wheelsets based onUltrasonic Phased Arrays andAlternating Current FieldMeasurement (ACFM). The groupaims to develop an innovativesystem, that has higher resolu-tion and speed of inspection, toidentify surface breaking faults.Currently Ultrasonic PhasedArrays and other techiniques inuse have problems in findingsmall surface defects. The incor-poration of ACFM probes willallow the accurate and fast in-spection of wheelsets for anysurface breaking faults.Now in operation for a period

of six months, the SafeRail con-sortium met in Portugal for anupdate on the group’s progress.From the outset it was decidedthat the first few months wouldbe dedicated to deciding thetype of defects to be detectedand systems that fall within thescope of the project. The groupare looking forward to the nextsix months, which will be dedi-cated to producing workingprototypes which will be testedboth in the laboratory and ontrack. A progress update willfollow in the next edition ofOnLine.

Setting new safety standardsA large proportion of accidents on the railways are due tofailed train wheels and axles. VTG Rail UK, in collaborationwith 10 other organisations across Europe, is working on apioneering project, called SafeRail, to develop newmethodologies and techniquesfor the inspection ofwheelsets tominimiseaccidents, andimprove safety standards.

Despite the beginning ofthe downturn of the globaleconomy, recently releasedfigures show the VTG Groupcontinued to performstrongly during 2008.

Financially, times have beentough for businesses over thelast 12 months. With figuresofficially confirming the UK hadentered recession in the finalthree months of 2008, turnoverat businesses was at bestexpected to plateau.However, the latest figures from

VTG for the financial year 2008showed Group revenue actuallyincreased by 12.4 per cent com-pared to the previous year, risingby EUR 67.4 million, to EUR608.7 million, exceeding theforecast figures of between

EUR 585 and EUR 595 million.Operating profit also surpassed

expectations, achieving EUR156.4 million compared to theforecast of between EUR 152million and EUR 156 million.Commenting on the results

VTG’s Chief Executive Officer, Dr.Heiko Fischer said: “Our growthwas even stronger in 2008 thananticipated. These good resultsand a solid business model area very good basis for furthergrowth in what is overall a diffi-cult economic environment.”One of the key reasons VTG

has continued to record goodoperating figures is the role VTGplays in the rail freight transportof products for meeting thebasic supply requirements of in-dustry, which forms part of theindustrial infrastructure. This ele-ment of VTG’s largest division,

Wagon Hire, sets the companyapart from many other compa-nies in the logistics sector in thatthe latter are more susceptibleto the economic climate.

All divisions showingvery good growthIn all three divisions, VTGreported similar rises in sales.The company increased sales inits largest division, Wagon Hire,by 13 per cent in the financialyear 2008, to EUR 294.1million.As at 31st December 2008,

the level of capacity utilizationachieved for the wagon fleet washigh, at 91.1 per cent, with adrop of just 2.8 per cent on theprevious year’s figures, which isprimarily due to the return of railfreight cars, which were used fortransporting automotive parts.

2008 sales higher than anticipatedIn the Rail Logistics Division

sales increased by 15.5 percent compared to the previousyear, to total of EUR 177.7million. In the third division,Tank Container Logistics, salesincreased by 7.6 per cent toEUR 136.8 million.

VTG continues on itspath of growthIn the financial year 2008,VTG continued to pursue itsdisciplined strategy of interna-tional growth and consolidationof its leading market position inEurope. This strategy includednot only the successful entry intothe North American market andentry into the joint venture withCosco Logistics in China, butalso the takeover of the Germanwagon manufacturer Graaff.

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

VTG’s high flying MD

VTG Rail UK’s Managing DirectorRob Brook turned 50 in Septem-ber 2008 and as a birthday‘treat’ the VTG UK team decidedto give him a half hour trial aero-batic flight – to find out just howmuch of an action man he reallywas!Unable to stall the fateful day

any longer he arrived at Welles-bourne Airfield, just outsideStratford on Avon, on Saturday7 March. It had started as a fineand sunny day but by the timethe hour came to take to the airsome cloud had descended, butunfortunately for Rob, notenough to cancel the flight.A Robin 2160i aircraft, a

2-seater with side-by-side config-uration, was prepared and readyto go and a worryingly eagerpilot called Mike stood in atten-dance. Mike was an ex-RAF pilotand instructor with huge flyingexperience, which went someway to allay Rob’s fears.Some basic preliminary paper-

work was completed – includingthe presentation of Rob’s authen-ticated Certificate of Madnessand the usual complete waiverof liability on behalf of everybodyexcept Rob. Eventually he gotstrapped into the aircraft, whichinvolved lots of buckles andstraps – a bit like a straight-jacket – which was probably just

as well because it stopped Robfrom running away.Take-off was pleasantly unevent-

ful, the aircraft climbed to about3,000ft and headed west to findsome less densely populatedareas to annoy some sheep andcows with the screaming aeroengine.Rob told Mike that he had done

some aerobatics 35 years agowhen he was an air cadet (mis-take of the day number 1!).Delighted by this news Mikestarted to put the aircraftthrough its paces, starting firstwith simple tight turns thenmoving to aileron rolls, followedclosely by some loop the loops.Shaken but not stirred, Rob wasasked if he wanted a ‘go’ andduly obliged, taking the controlsfor what he considered to beone of the finest aileron rollsever performed by a novice!Notching things up a bit the

next manoeuvre was more com-plex – Mike explained that youcould combine the aileron rolland the loop the loop to createwhat the Spitfire pilots did ontheir successful return to base –the victory roll. This was a fan-tastic manoeuvre to experiencethat left Rob thrilled, but did little

to settle his ever-increasing sen-sation of ‘feeling a bit icky’. Atthis point Mike asked Rob if hewanted to fly inverted and Robsaid ‘well ok then’ (mistake ofthe day number 2!). Mike thenproceeded to put the aircraftupside down and stay there forwhat seemed like 10 minutesbut was probably only 10seconds, and then righted theaircraft and said with a grin anda glint in his eye ‘do you want ago’. It was at this point that Robdid not succumb to a third mis-take of the day and just asked tobe taken home to his mummy! In-verted flight does to your insideswhat a kitchen liquidiser does tosoft fruit – it is not pleasant!A quick circle over Rob’s house

in Stratford as the aircraft madeits way back to the airfield fin-ished off an exhilarating andunforgettable experience that, fora whole host of reasons, is un-likely to ever be repeated again.

Once again VTG Rail UK choseto send Christmas greetings totheir customers with e-cards, us-ing the money saved to donateto four local charities. TheBritish Alzheimer’s Society,Acorn’s Children’s Hospice inBirmingham, the WarwickshireAir Ambulance and The MytonHospice in Warwick eachreceived a cheque for £100.

OnLine issue 13 - spring 2009

6

Bouncing back

Debbie Field only joined theVTG team in December 2008,but thanks to a freak accidentduring a skiing holiday in Janu-ary she has already made alasting impression.That’s because after less than

five weeks into the job Debbie,who is normally never ill, had tohave six weeks off work afterbreaking her back whilst on atrip to Val d’Isere. She spenteight days in hospital, had towear a body brace and was un-able to return to work until themiddle of February.“It was bad enough that I

broke my back, but for it tohappen when I had only been ina new job for four weeks reallywas bad timing,” she said. “Iwas worried about what peoplemight think, but luckily everyone

at VTG has been wonderful, thoughit’s fair to say my skiing days arewell and truly over!”Debbie is now back at work and

raring to go. She says: “My role atVTG has been newly created andI’m really excited about the chal-lenges that lay ahead as the roleexpands.”Debbie’s previous jobs include

working at a recruitment agency, astint at Ginsters Ltd as Finance &Administration Secretary and threeyears at The HIVE, which providesinformation to members of thearmed forces and their families.The family, husband Dave who is

in the Royal Navy, and son Alex, 8,have recently relocated fromPlymouth, where they had livedfor 16 years, to Bromsgrove inWorcestershire. Following themove Debbie was ready for a new

Profile: Debbie Field

Position: Sales & Marketing Administrator

Swappingcards for cashthis Christmas

challenge, which is one of thethings that attracted her to therole at VTG.One of the new things that

Debbie is picking up is railwayspeak. “I’m starting to under-stand all the differentterminology and acronyms thatare used in the industry and Iknow what a bogie is now!” shesays laughing.