Cheaper and more durable railroad ties based on new material

The company has managed to build the production line with efficiency of 4 tons per hour which is next to specially equipped laboratory for mechanical testing of first products. The problem with durability of the existing ties made from concrete lies in the stiffness of regular concrete. The vibrations and damage of those ties are occurring in about 3-5 years. Our ties are having much bigger elasticity and 3 times higher comprehensive strength while having lower price.

Economic rationale / Business Model

Financial model is based on production of first series of railroad ties in our plant with efficiency of 4 tons per hour. The major cost which is Sulphur was given by invoice based on retail price from only Worldwide existing Sulphur mine in Poland. It must be noted that once the SulRock will achieve industrial efficiency the delivery of low priced waste Sulphur from refineries will be possible. This however needs more production capacity since the Sulphur from refining of oil and gas needs to be delivered in liquid form and in large quantity. Nonetheless based on retail prices of all ingredients our plant is providing not only a significant profit and due to a Worldwide demand for railroad ties a high growth potential.

Financing details

Financing source: Private

The investments needed for the process of acquiring needed certificates for railroad ties is in the amount of 1 million Euro. Together with this the company is planning to raise capital needed for constant one year production of railroad ties. This will allow to generate quick revenues once the certification process will be finished and the company will be allowed to place the offer for railroad construction companies. The estimated cost for this process is 950 hundred Euro.

Existing or potential bottlenecks for the realisation of the project / Potential risks

The only barrier in introducing our product to the market is the necessity of conducting initial tests and building 1,5 km long test track at Polish Railway Institute which is the only authority in Poland for granting mandatory certificates and technical approval. Thus, the management is seeking for an investment and acquisition of the shares of the newly established SPV which will be subject to investor`s decision based on detailed proposition of Sulrock

Project additional information

The National Railway Programme (NRP) envisages investments of a total value of PLN 66 billion in 220 projects covering 9,000 km of tracks. The programme sets out the investment objectives and priorities and the size and sources of the necessary funding. In September 2016, the NRP was updated to systematise and clarify the programme’s objectives in order to improve the implementation and spending of its resources. Improving the attractiveness of rail passenger transport in aglo is a strategic pillar for investment in NRP’s as well as in improvement of regional traffic and rail transport freight.