The Brest division of Belarusian Railways and the Russian company PAO TransContainer will set up a joint venture to provide transportation and logistics services in the sphere of container transportation.
The joint venture will become part of United Transport and Logistics Company (UTLC). The new joint venture will become the key infrastructure service platform of United Transport and Logistics Company. According to UTLC President Piotr Baskakov, the project is in the final readiness stage. The work on the property assessment report and the business plan has been finished. The foundation agreement and the charter are being finished. “We plan to set up the joint venture by the end of the year. In accordance with our business plan the investments will be recouped within nine years,” said the UTLC CEO.
The joint venture is meant to increase container transportation by rail along the second international transport corridor and the China-Europe transit route. The total volume of investments is estimated at USD 6.6 million. The Belarusian side will make a non-monetary contribution in the form of terminal assets at the railroad station Brest North. The Russian side will contribute USD1 million that will be spent on buying new equipment, renewing the cargo-loading mechanisms, and building a new IT system. The Belarusian and Russian sides will account for 86% and 14% of the investment resources respectively.
Belarusian Railways expects the volume of container transportation via Belarusian railroads to increase by 350% by 2020.
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