Cracks Found in New Railcars: German Report Points to Faults by Czech Company NYMWAG

The German portal Der Eisenbahner has released a report pointing out technical flaws in SGGRSS 80 and SGGMRSS 90 freight cars manufactured by the Czech company NYMWAG CS a.s., based in Nymburk. A video posted on their YouTube channel shows detailed coverage of cracks found in the welds of critical parts of these railcars, which could potentially lead to serious railway accidents. The issue affects more than a thousand railcars across Europe.

Problematic Welds and Risk of Cracks Uncovered

According to Der Eisenbahner, these technically demanding six-axle cars, used by major European companies like EUROWAGON (Poland), WASCOSA (Switzerland), Railrelease (Netherlands), and Tenutado (Slovakia), now pose a safety risk. The main concern is the quality of six welds on the cars' central joints. The report suggests that cost-cutting measures during production led to a reduction in the critical pre-heating process for the metal during welding, a step essential for long-term material strength. As a result, cracks are appearing in the welds, sometimes even on brand-new railcars.

Since the SGGRSS 80 and SGGMRSS 90 railcars are designed for heavy loads, deploying them with these technical flaws is hazardous. Over a thousand of these six-axle freight cars manufactured between 2020 and 2024, are currently used across Europe and form part of many major European transport companies' fleets.

Der Eisenbahner has tracked the current distribution of these railcars across Europe:

• EUROWAGON, Poland: 168 units
• WASCOSA, Switzerland: 50 units
• Railrelease, Netherlands: 68 units
• Tenutado, Slovakia: 80 units
• MFD Rail, Switzerland: 680 units
• GTS Rail, Italy: 60 units

 

EUROWAGON's Response

According to the German newspaper, some defects were discovered through ultrasonic testing, but staff at the Polish rail company EUROWAGON reportedly noticed cracks without any specialized tools. EUROWAGON, which owns 168 railcars produced by NYMWAG, conducted extensive inspections and found that 60% of the welds had cracks. For safety reasons, only railcars with flawless welds will be returned to service. To give a sense of the scale, EUROWAGON's inspections alone cost the Polish operator roughly EUR 474 thousand, excluding the losses from taking these railcars out of operation.

NYMWAG's Position

The Der Eisenbahner video also delves into internal documents from NYMWAG, where the company has reportedly promised to repair all defective railcars at its own expense. In a letter to EUROWAGON, a copy of which was obtained by the German newspaper, the Czech company recommends visual weld inspections as a preventative measure. This proposal, however, has faced criticism, as the German report points out that this method cannot detect cracks within the welds, which are visible only through costly ultrasonic testing.

The report suggests the issue goes beyond individual defects, indicating a broader problem stemming from an overloaded production process at NYMWAG. Rapid growth and increased production at the expense of quality are cited as contributing factors. In an interview with railmarket.com, CEO Petr Vlček previously mentioned that NYMWAG experienced rapid growth, increasing production capacity multiple times in its first years.

"We chose what we now call a 'punk style' approach because we had two options: the first was to prepare everything, set up all processes, and fine-tune every detail, which would have taken a year or two. Then, we'd gradually start production and reach out to customers. We chose the second option—to begin production as soon as possible and catch up on processes along the way," said Petr Vlček.

NYMWAG's Rapid Growth

NYMWAG entered the market in 2019 and quickly became Europe's third-largest freight car manufacturer. The German report attributes this success and rapid expansion to a business strategy prioritizing production over quality. The report also references the now-defunct company Legios, which was involved in several financial scandals under the leadership of businessman František Savov. It links Legios and NYMWAG through CEO Petr Vlček, who previously served as a board member for Legios Loco, a subsidiary of Legios.

František Savov: A Controversial Businessman

František Savov is a Czech entrepreneur known for his involvement in media and railway industries. For several years, he has faced accusations of tax evasion, with damages related to his cases reaching up to approx. EUR 25.6 million, according to Czech authorities. Since 2014, Savov has evaded Czech justice and is reportedly residing in the UK. He has been repeatedly linked to tax fraud within a group of companies, including Legios, which, under his leadership, became entangled in several financial scandals involving VAT evasion. His activities and influence in the railway sector ultimately tarnished Legios's reputation, and the company's operations eventually ended in insolvency. However, Savov currently has no proven ties to the management or ownership structure of NYMWAG.

NYMWAG's Current Ownership Structure

NYMWAG's ownership includes prominent figures, notably Slovak billionaire Oszkár Világi, who has Hungarian roots and close connections to the Hungarian government and Prime Minister Viktor Orbán. Világi's business interests cover a wide range, from the oil industry, through his company Slovnaft, to rail transport. In NYMWAG, Világi is not only an owner but also collaborates closely with key figures from the railway company Railtrans International (RTI), where his associates are active. Világi's ownership and business influence in NYMWAG are considered crucial for the company's regional expansion.

Development and Regulatory Responses

The editorial team at RAILTARGET reached out to the German newspaper Der Eisenbahner for further insights. In response, the German publication stated:

"As a prominent and professional company essential to the Czech Republic and Europe, we expect NYMWAG to act responsibly—especially considering that nearly 1,000 potentially risky freight cars are operating on European railways."

Given the seriousness of the issue, the report calls for action from national inspection authorities, including Germany's EBA, Switzerland's BAV, France's EPSF, and the Czech Drážní úřad. Communication between RAILTARGET and Der Eisenbahner confirmed that these inspection authorities have already been contacted by the German publication. Should inspections uncover further deficiencies, Der Eisenbahner suggests removing defective railcars from service.

RAILTARGET also requested an official statement from NYMWAG, but the company had not responded by the time of publication.

Source: Der Eisenbahner; RailMarket; iRozhlas