Russia, Belarus and Kazakhstan agree on updating UTLC development model

On March 29, the heads of Russian Railways, Kazakhstan Temir Zholy and Belarusian Railways agreed on the key principles of United Transport & Logistics Company (UTLC) operational model, including implementing work within the boundaries of the railways in Russia, Kazakhstan and Belarus and its possible extension. In addition, the parties agreed on the need for a unified approach to the formation of tariff policy for subsidiaries and affiliated companies, as well as for third-party members of the Eurasian transport market.
UTLC’s updated operating model allows for the possibility of attracting rolling stock operators and logistics companies based on market conditions in order to optimise the cost of services and improve their quality.
“The new model will promote the growth of container traffic. It is very important for us to earn extra revenue in this difficult macroeconomic environment. This project will help to increase container shipments and has good prospects,” said the President of Kazakhstan Temir Zholy Askar Mamin.
The basic route of UTLC’s container service is Dostyk/Altynkol – Brest and the opposite direction. Additional routes are being approved by the parties as the project progresses. “The UTLC project is an integration platform for us. It is this model that gives us the possibility to implement the initial plans for equal participation in the company. In 2015, UTLC’s volume amounted to about 80,000 TEUs, 83% more than in 2014. This year we have even more ambitious plans. We want to increase transportation compared to 2015 in the framework of the UTLC project. In view of the current situation, we believe that this area should be a priority for us,” President of Russian Railways Oleg Belozerov said.
“To date, container transportation is the only segment which is experiencing growth. UTLC extremely important to us. It will allow our railway administrations to increase the volume of transit traffic and attract an additional freight base,” Vladimir Morozov, the head of Belarusian Railways explained.