Implementation of Rail Ties in Russia Opens Massive Market Opportunity
NEW PROVIDENCE, N.J. – AXION International Holdings, Inc. (OTCQB:AXIH), a leader in recycled plastic and plastic composite technologies used to produce ECOTRAX® rail ties and STRUXURE® building products, announced today the Company has received its first purchase order for ECOTRAX® rail ties which will be shipped to Russia and installed in track with a major transit line later this year. The rail ties were sold to AXION's in-country distributor and business partner, TVEMA, an international group of companies based in Moscow whose subdivisions are involved in design, manufacture, and project development of rail diagnostic equipment. Over the past 18 months, AXION has been working diligently with TVEMA to create composite rail tie standards and specifications for Russia.
Russia's railway system is the country's key mode of transportation, with an operational length of over 85,000,000 kilometers, making it the second largest rail network in the world. According to an article in Railway Technology a current rail modernization plan in Russia calls for the construction of up to 20,000 kilometers of new routes, the upgrade of 13,800 kilometers of freight lines for heavy axle loads, among other improvements, at an estimated cost of $353 billion by 2030. The European Bank for Reconstruction and Development (EBRD) has invested more than $1.6 billion in 13 Russian rail projects since 2001.
"This purchase order from Russia is an encouraging development, given the size of the rail industry there, Russia is known to have some very harsh weather conditions and ECOTRAX® has a proven track record of high levels of performance in these types of elements," stated AXION President and CEO Steve Silverman. "We are very happy with our progress in securing adoption and approvals in Russia. This is a long process in any country and TVEMA has done a great job."
AXION's composite rail ties have massive potential for widespread adoption throughout Russia's rail network, many of which traverse a variety of climates where wooden alternatives are short-lived. ECOTRAX® rail ties are not porous, they do not absorb moisture, and therefore are impervious to water and rot. Offering longevity and therefore a higher ROI for customers, ECOTRAX® also provides the added environmental benefits of recycling plastic waste and reducing the harvesting of trees.
Globally, ECOTRAX® are currently in track test or undergoing purchase approval with leading passenger and freight lines in Australia, Brazil, Chile, Mexico, New Zealand, Singapore, and Europe and throughout North America
ECOTRAX® composite rail ties are made from AXION's patented, 100%-recycled plastic formulation. Because they are inert, ECOTRAX® rail ties will not rot or absorb moisture, and they are impervious to insect infestation. Setting the industry standard for composite rail ties, ECOTRAX® rail ties meet and exceed all American Railway Engineering and Maintenance-of-Way Association specifications and are continuously tested at third-party laboratories and in track. ECOTRAX® rail ties feature long life cycles and excel in the harshest conditions, making them a cost-effective choice in road crossings, switches and turnouts, open-deck bridges, and freight line track. From Australia to New York, ECOTRAX® rail ties are the tested, proven, and superior choice for railroads around the world.
About AXION International Holdings, Inc.
AXION (OTCQB: AXIH) is green technology company, transforming waste plastics into structural building materials. Using 100%-recycled consumer and industrial plastics, AXION develops, markets and sells its recycled structural composite products through its ECOTRAX® composite rail tie and STRUXURE® building material lines. From the railroading industry to the military to global engineering firms, AXION delivers tested, proven and superior green solutions to infrastructure needs around the world.
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