State Rail Companies To Establish Venture

Moscow Times
Russian, Belarussian and Kazakh state railway companies plan to sign agreements on a joint venture called United Transportation and Logistics Company with combined assets estimated at 21 billion rubles ($658 million), Salman Babayev, a vice president at Russian Railways, said at the eight Strategic Partnership 1520 business forum.
He said the deals would be signed at the St. Petersburg Economic Forum in June. The joint venture will be created on equal terms, with each company eventually acquiring a 33.3 percent stake.
Russian Railways will contribute 50 percent plus one share of Transcontainer, the country’s largest intermodal container operator, to the joint venture. This stake is currently valued at approximately 7 billion rubles.
“Multiply that number by three and you get a rough estimate of what the future partnership will be worth,” Babayev said Friday.
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