New logistic company of the Customs Union launches challenges in the region

 

The set up of the Customs Union is constantly triggering changes in the transport market, both regionally and internationally. Apart from the facilities created by the free exchange area including Russia, Belarus and Kazakhstan, the three countries have decided to set up a logistics company whose activities would ensure increasing transport volumes between Europe and Asia, thus helping attract freight flows on this axis.

From the beginning of 2012, Russia, Belarus and Kazakhstan have announced their intention to set up a joint railway logistic company, and, according to the latest declarations of the concerned authorities, the company will be functional by the end of the year. In May, the decision for the setup of the operator was made by the ministries and relevant instructions have already been elaborated. In September, the authorities announced that operations would be launched by December. “I believe that a decision will be made by the end of the year and the leaders of these countries would meet in December”, declared First Deputy Prime Minister Igor Shuvalov (Russia), stressing that the launch of the new company has been adopted during a meeting of the prime ministers of the three countries held in June.
So far, 50 locations have been established for the set-up of logistic centres and modern logistic centres, warehouses and access roads for the railway system in Belarus are being built.
According to the estimates of the railway industry representatives, the set up of the operator will require funds of around USD 2 Billion and each state will contribute with containers and freight terminals. As part of the new operator, RZD could ensure 50% plus one shares of its container operator, TransContainer, while Belarus and Kazakhstan will pay their participation (share) with fixed assets or cash, if necessary. It is estimated that the national Kazakh operator, KTZ, will contribute with 100% of its container operator Kaztransservis’ shares and with 33% of its logistic company, Kedentransservis (KTS). TransContainer holds the remaining KTS shares. Also, Belarus will contribute with access to Brest terminal and around 3,000 flat wagons.
As part of the project, the parties have agreed to set up a working group to deal with the set up of the operator and, a close source reports, they negotiate with Latvijas dzelzcels to persuade the Latvian company to join the project, Interfax writes. According to the source, the container operator in Latvian Railways stations and in Riga Port terminals could offer for operation all its facilities. “These assets would permit the development of a real service for freight transit on the Europe-Asia axis”, the source comments.
The initiation of the operator’s activity will allow handling 2% of the container flow between Europe and Asia. The Ministry of Transport in Belarus said that his country was interested in the project as they didn’t want to lose the volumes of freight shipped to Europe from Kazakhstan which could be shipped via Saint Petersburg.

[ by Pamela Luică ]

 


Share on:
Facebooktwitterlinkedinmail

 

RECOMMENDED EVENT: