Belarusian Railways to contribute money to SES universal transport, logistics company

Belarusian Railways will contribute money at the first stage of the creation of the United Transportation and Logistics Company of Belarus, Russia, and Kazakhstan. The information was released by Belarusian Railways Head Vladimir Morozov at the expo Transport and Logistics in Minsk on 8 October, BelTA has learned.

“Initially we are going to make a monetary contribution. Later on we will consider various options to contribute non-monetary assets,” said Vladimir Morozov. The executive remarked that the size of the monetary contribution is of no principal importance. “I cannot completely disclose the operation of the company as a commercial organization yet,” he admitted.

Founding documents are being prepared. “Taking into account the harmonization of the legislation of the three countries we plan to set up the united company in Q1 2013 at the latest,” said the Belarusian Railways Head. He specified that the national legislations have minor differences. According to the source, the sides will discuss the possibility of setting up the company in December 2013.

The executive underlined that Belarusian Railways is a full-fledged party to the agreement on setting up the untied transport and logistics company among the three railway administrations. He pointed out that United Transportation and Logistics Company will be created to organize operations along the European Union-China route for the sake of providing services by one and the same operator.

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.

The idea to set up United Transportation and Logistics Company is supposed to be discussed at the international railway business forum Strategic Partnership 1520: Central and Eastern Europe on 10 October.

Source: BELTA