The Board of Directors of Russian Railways (RZhD) has approved the conception of Cargo Company incorporation
The Board of Directors of Russian Railways (RZhD) has approved the conception of Cargo Company incorporation. According to AK&M, this information is contained in the company’s report referring to Vladimir Yakunin, RZhD President. “The idea of reforming Russian railways through establishing of a Cargo Company has been approved by the overwhelming majority of the Board’s members”, Yakunin reported. According to Alexander Zhukov, Chairman of RZhD Board of Directors, the issue of Cargo Company incorporation is to be additionally discussed at the meeting of RF Government before the end of November. Cargo Company is to be established in order to raise efficiency of operation business through similar competition conditions among other members of cargo transport market. The company will be entitled to set up independent market price for its services on providing wagons for cargo transportation. Consequent placing of the company’s shares at the stock market will enable it to ensure necessary rates for renewal of wagon fleet as well as to attract investments for infrastructure development. Cargo Company OJSC is to have the status of a rolling-stock operator, while RZhD is to preserve the status of a carrier. It is supposed, that RZhD will have the possibility to use part of wagons of Cargo Company for rendering services on cargo transportation within the limits of existing tariffs.
As Yakunin noted, in order reach maximum capitalization of the Cargo Company its authorized capital should be better formed through transfer of the whole fleet of cargo wagons to RZhD, excluding special-purpose wagons, wagons for car transportation, containers and perishable cargo. It is not reasonable to divide the fleet into small parts. Russian Railways plan to contribute into the authorized capital over 531 thou of cargo wagons (box wagons, platforms, open-top wagons, cisterns, hoppers etc). Fleet of locomotives and infrastructure objects are to belong to RZhD. Infrastructure objects like loading stations or wagon-repair stations are not to be handed over to Cargo Company.
Initially 100% of stock to be owned by RZhD. Then minority shareholding – up to 49% - to be allocated in several stages at public market of capital. At the first stage the program is to be worked out for the development of Cargo Company, including analyses of necessary investment projects aimed at renovation and modernization of fixed assets. In one year it is planned to carry out test sale of shares – the package up to 5-10% - through public auction. At the third stage to start from 2009 the rest of minority shareholding is to be sold. So, Cargo Company will stay under state control, the share of which will be at least 51% of the company’s stock. Sale of the minority shareholding of Cargo Company will enable RZhD to attract investment to the amount of about 100 billion rubles to be spent for infrastructure development.
Russian Railway OJSC was formed on October 1, 2003 on the basis of the Transport Ministry. 100% of the company owing 85.5 thou kilometers of railroad belong to the state. In 2005 revenue of RZhD according to Russian Accounting Standard amounted to 748.68 billion rubles. (in 2004 - 659.54 billion rubles), net profit - 9.75 billion rubles (8.7 billion rubles). Passenger turnover grew in 2005 by 3.8% to 118.9 billion passengers per kilometer, cargo turnover – by 3.1% to 1.85 trillion tons per kilometer.
As Yakunin noted, in order reach maximum capitalization of the Cargo Company its authorized capital should be better formed through transfer of the whole fleet of cargo wagons to RZhD, excluding special-purpose wagons, wagons for car transportation, containers and perishable cargo. It is not reasonable to divide the fleet into small parts. Russian Railways plan to contribute into the authorized capital over 531 thou of cargo wagons (box wagons, platforms, open-top wagons, cisterns, hoppers etc). Fleet of locomotives and infrastructure objects are to belong to RZhD. Infrastructure objects like loading stations or wagon-repair stations are not to be handed over to Cargo Company.
Initially 100% of stock to be owned by RZhD. Then minority shareholding – up to 49% - to be allocated in several stages at public market of capital. At the first stage the program is to be worked out for the development of Cargo Company, including analyses of necessary investment projects aimed at renovation and modernization of fixed assets. In one year it is planned to carry out test sale of shares – the package up to 5-10% - through public auction. At the third stage to start from 2009 the rest of minority shareholding is to be sold. So, Cargo Company will stay under state control, the share of which will be at least 51% of the company’s stock. Sale of the minority shareholding of Cargo Company will enable RZhD to attract investment to the amount of about 100 billion rubles to be spent for infrastructure development.
Russian Railway OJSC was formed on October 1, 2003 on the basis of the Transport Ministry. 100% of the company owing 85.5 thou kilometers of railroad belong to the state. In 2005 revenue of RZhD according to Russian Accounting Standard amounted to 748.68 billion rubles. (in 2004 - 659.54 billion rubles), net profit - 9.75 billion rubles (8.7 billion rubles). Passenger turnover grew in 2005 by 3.8% to 118.9 billion passengers per kilometer, cargo turnover – by 3.1% to 1.85 trillion tons per kilometer.
