The development of the Customs Union and of the Common Economic Space (CES) between Russia, Kazakhstan and Belarus have determined the three countries to form the common transport and logistics operator, an initiative considered as attractiveness growth factor of Eurasia’s transit potential and a stimulus for railway companies to accelerate the introduction of a single approach in the freight transport system.
A t the end of June, the railway companies in Russia, Belarus and Kazakhstan signed the agreement on the set-up of the common transport and logistics company (Integrated Transport & Logistics Company-ITLC) that will provide container transport services in the Common Economic Space. “The main objective in creating the common company for transport and logistics in CES is to develop the transport corridor from Asia to Europe via Kazakhstan, Russia and Belarus. The extension of container transport will have a positive impact over the three countries”, declared Salman Babayev, RZD Vice-President for Commercial Activity of RZD.
At present, ITLC is one of the real projects in the business sector of CES and the only one to consolidate the infrastructure activity. The set-up of the company will facilitate the formation of an infrastructure platform to implement other large projects which have a positive impact over the economy of the space, while investments in the new company will serve the transport investments of the member states of the Customs Union and of the neighbouring countries.
As initially estimated, ITLC is set-up as a joint-stock company and, after the government gives its approval, social capital contributions will be made either as shares or equity in the rolling stock companies and terminals (TransContainer, Kedentransservice, Kaztransservice etc.), including transport and logistics operators (such as RZD Logistics). Moreover, container transport wagons, and the properties of freight terminals necessary for railway activities could also be involved: Zabaykalsk (Russia), Dostyk and Altynkol (Kazahstan) and Brest-Severny (Belarus).
The properties transferred as payment for shares in ITLC will be paid according to the market price as established by an independent evaluator. The national railway companies in the three countries will receive additional revenues from using the infrastructure and dividends from their activity within ITLC. The shareholders will manage the company based on parity and ITLC will receive full support for its charging and customs policies. It will also stimulate the implementation of universal standards in the transport and logistics services, the transport technology and the payment systems within the Common Economic Space. All these characteristics will help increase the attractiveness of the services provided by freight operators and will consolidate RZD’s position within ITCL”, declared Vadim Morozov, Russian Railways First Vice President.
As regards the Russian side, “the authorized transferred capital is estimated at USD 980 Million”, said RZD President Vladimir Yakunin. The project is encouraged by the members of the Russian Government who said that they support the idea of the 50% transfer (+2) shares from the capital of TransContainer, to the common company. Belarus and Kazakhstan will supply part of the frontier terminals and the remainder will be completed by cash.
According to the business plan, the estimated freight volume of ITLC will exceed 4 million TEUs up to 2020, and additional incomes for national companies for the use of infrastructure will amount to USD 1.6 Billion. Moreover, the contribution to the GDP of the CES countries will amount to USD 11.3 Billion (up to 2020) by around 5 Billion from Russia, 5.3 Billion by Kazakhstan and 1 Billion by Belarus.
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