SES united transport, logistics company up and running soon

MINSK, 10 October (BelTA) – The united transportation and logistics company of Belarus, Russia, and Kazakhstan should become operational soon. The news was released by President of OAO Russian Railways Vladimir Yakunin at the opening of the international railway business forum Strategic Partnership 1520: Central and Eastern Europe, BelTA has learned.

The executive said: “I am convinced that in the near future the company should become operational de jure and de facto”. Vladimir Yakunin remarked that they had faced many challenges setting up the company but the difficulties are being overcome. “Despite the difficulties involved in coupling the legislation of different countries, the principal decision in favor of setting up the United Transportation and Logistics Company has been made. Concrete actions are being taken to shape Belarus’ property contribution to this joint venture,” said the head of Russian Railways and thanked the leadership of Belarus.

Vladimir Yakunin pointed out that the Russian side was working hard to establish the company. He informed that the new company’s business model is now ready.

BelTA reported earlier that the heads of the railway administrations of Belarus, Russia, and Kazakhstan completed another step required to set up United Transportation and Logistics Company at the Saint Petersburg economic forum in June 2013. The step was made by the signing of the relevant agreement in presence of President of Russia Vladimir Putin. In line with the agreement the united railway operator is supposed to be registered on 31 December 2013 at the latest.

The participating railway administrations believe that a joint-stock company with monetary and non-monetary contributions to the authorized fund is the optimal legal organization form for United Transportation and Logistics Company.

Earlier BelTA quoted First Deputy Transport and Communications Minister of Belarus Yevgeny Rogachev as saying that Belarusian Railways intends to contribute money to the authorized fund of the United Transportation and Logistics Company. “We are not considering the reincorporation of Belarusian Railways as a joint-stock company or its structural units for this purpose and have no plans to do it in the near future,” he assured.

Belarusian Railways specialists estimate that the establishment of the United Transportation and Logistics Company will allow increasing cargo transportation by railroad. By 2020 container transportation by Belarusian Railways will rise by 4.5 times, increasing earnings from using the railway infrastructure by 4.6 times and doubling the industry’s contribution to the country’s GDP. Investments are expected in the development of the terminal and warehouse infrastructure of the Brest railroad node.