Portec Rail is a leader in the North American heavy‐haul rail freight markets for friction management with its Total Friction ManagementTM program and Salient Systems' Class I dominance in Wheel Impact Load Detector (WILD) systems. The company is focused on matching this expertise to the Chinese market, which provides tremendous growth opportunity for Portec Rail.
The Friction Management product group has increased its market presence through a significant increase in Chinese market sales in 2009 from the prior year for the train‐mounted Kelsan LCFTM Solid‐Stick lubrication products and HPFTM Solid ‐Stick tread friction modifier while new orders were also received for friction management wayside application systems that included both gage face lubrication and the KELTRACK® top of rail friction control product.
Portec Rail's Salient Systems entered the Chinese market by receiving orders from Shenhua Energy Company Limited for new WILD systems that include optional Weigh‐In‐Motion (WIM) and Hunting Truck Detection (HTD) capabilities, as well as orders for the Rail Stress Monitor (RSM) product. These systems are to be installed on a coal-carrying heavy‐haul rail line.
Jarosinski, President and Chief Executive Officer, stated, "These orders for a
variety of our products reflect the success of our efforts to enter the
expanding Chinese rail infrastructure system. Our dedicated employees, along
with our sales agents in China, have worked diligently to understand this unique
customer base of our Chinese business partners. We have focused our efforts on
participating in key industry forums and in‐country trade shows and
in the publication of research papers and promotion of customer visits to North
America. All of these activities have resulted in significant progress towards
making Portec Rail Products a meaningful brand name in the Chinese rail system
marketplace, which we hope will continue to grow in stature as our products and
services become more widely used."
Jarosinski continued, "The Chinese rail service market offers significant growth potential in both heavy‐haul freight and passenger service. It has been recently announced that the Chinese will be spending a new record of $120.6 billion in rail expansion efforts this year. It also has been reported that the period from 2010 to 2012 will be a key period for the rail modernization effort in China according to the Ministry of Railways. Rail transportation investment includes major capacity expansions for some of the country's existing coal railways as well as the planned construction of several new coal railways by companies such as Shenhua Energy Company Limited. In addition, major expansion is also set for high-speed passenger rail service lines. Our growth in China's rail industry should position us well as China continues to expand and modernize its railways. We are focused and dedicated to increasing the use of both our friction management and wayside data collection systems in China and other key international markets."