Establishment of United Transportation and Logistics Company
RNS Number : 5413H
21 June 2013
Establishment of United Transportation and The process of organising a chain of delivery, and managing that chain in the broadest sense. This chain may encompass both deliveries of raw materials needed for production and management of material resources at an enterprise, delivery to warehouses and distribution centres, sorting, handling, and final distribution at the points of consumption. In the context of transportation services, the main service is that of delivering cargo across a delivery route.
JSC TransContainer ("TransContainer" or the "Company") notes the announcement of JSC Russian Railways ("Russian Railways"), the majority shareholder of TransContainer, on 20 June 2013 that Russian Railways has entered into a framework agreement with JSC Kazakhstan Temir Zholy ("Kazakhstan Railways") and state entity Belarusian Railway ("Belarusian Railway") setting out basic principles of the proposed United Transportation and Logistics Company ("UTLC").
Russian Railways plans to contribute its equity stakes of 50%+2 shares in TransContainer and of 100% shares in JSC RZD Logistics to UTLC. Kazakhstan and Belarusian Railway are to contribute to UTLC their cross-border Transportation equipment for shipping cargo via various means of transport. Containers are durable enough for repeated use and can be stacked. Containers are divided into medium-duty (three- and five-tonne), which conform to former Soviet Union standards and are still used for shipments in Russia and the CIS, and ISO (20- and 40-foot) containers, which are used for Russian and international shipments. The universal standard unit TEU (twenty-foot equivalent unit) was introduced to measure transport flow volumes.
container terminals at Dostyk, Altynkol and Brest stations, as well as A specialised type of rolling stock designed to carry ISO containers.
flatcar fleets and shares in their relevant subsidiaries, respectively. UTLC is expected to be registered as a Russian legal entity, subject to completion of all the necessary legal procedures and receipt of corporate and government approvals. The shareholding structure of UTLC is expected to be determined by the market value of assets contributed by each of Russian Railways, Kazakhstan Railways and Belarusian Railway.
TransContainer believes that the establishment of UTLC will help to unlock land Freight passing from one country to another through a third country. Whether cargo is permitted to transit a certain country and under what terms is subject to trade agreements and treaties between countries. Direct transit is when foreign goods are shipped under tariff protection, without holding at a customs warehouse; indirect transit is when goods arrive at customs warehouses and are then transported abroad.
transit potential and will have a positive impact on rail container transportation volumes and asset utilisation.
Despite the anticipated change at the level of the majority shareholder, TransContainer expects to continue to be listed on the London and Moscow Stock Exchanges and to follow the corporate governance principles applicable to internationally listed public companies.
The Company will keep the market informed about any further developments.
21 June 2013
Andrey Zhemchugov, Director,
+7 495 637 9178
+7 495 609 6062
Tony Friend / Alexandra Roper
+44 (0) 20 7457 2020
TransContainer (LSE ticker: TRCN) is the leading intermodal Transportation equipment for shipping cargo via various means of transport. Containers are durable enough for repeated use and can be stacked. Containers are divided into medium-duty (three- and five-tonne), which conform to former Soviet Union standards and are still used for shipments in Russia and the CIS, and ISO (20- and 40-foot) containers, which are used for Russian and international shipments. The universal standard unit TEU (twenty-foot equivalent unit) was introduced to measure transport flow volumes.
container transportation company in Russia. It is the market leader in Russia by A specialised type of rolling stock designed to carry ISO containers.
flatcar fleet size, container transportation by rail and rail-side A place equipped for the trans-shipment and storage of containers. A container terminal
typically includes one or more container yards. Rail-based container terminals are equipped with spur tracks for loading and unloading containers to/from railroad platforms (cars).
container terminal throughput with a market share in these categories as of 31 December 2012 of approximately 59 percent, 50 percent and 26 percent, respectively. It operates more than 25,000 flatcars, approximately 61,000 containers and owns a network of 46 rail-side container terminals in Russia, 18 rail-side terminals in Kazakhstan through its subsidiary KedenTransService and operates one terminal in Slovakia. Company's sales network comprises approximately 140 sales outlets across Russia as well as presence in the CIS, Europe and Asia. TransContainer is listed at Moscow Exchange and LSE. Company's major shareholder is JSC Russian Railways with 50%+2 shares.
This information is provided by RNS
The company news service from the London Stock Exchange