Under the United Transport and Logistics Company’s reorganization plan, which took place on April 2, 2018, UTLC Eurasian Railway Alliance JSC was founded (UTLC ERA JSC). The company will conduct the main activity of UTLC regarding operating and development of cargo transit within the territory of countries – participants of the project.
“The goal on parity achievement in the share capital of UTLC ERA JSC is gained. Currently, UTLC is the project of equal members with united goals and tasks. This approach to business organization is particularly important for integration projects implementation, where the final result depends on the partnership level and cooperation efficiency”, Alexey Grom, the president of UTLC said.
The company will continue its work on the basis of a business model “assets light” on principles of holding companies parity – Russian Railways, Belarus Railway, and NC Kazakhstan Temir Zholy (each holds 33.33% of shares). The share capital of UTLC ERA JSC is fully formed and all shareholders are vested with their shares.
This measure will allow increasing all shareholders involvement in project development and create conditions for its more dynamic development.
UTLC was registered on 13 November of 2014 by the railway companies of Russia, Belarus and Kazakhstan, offering rail transport services on Eurasian transit corridor, from China and South Asia to Europe.
Company’s amount of transport by container trains in 2017 increased by 75% compared to 2016 and exceeded TEU 175,000. The number of trains amounted 2,102, which makes up to 6 trains a day in both directions (U West and U East) and has reached the speed exceeding 1,000 km per day.
The company’s development strategy is very ambitious as it plans an increase by 1 million TEUs by 2025 compared to 2017 level.