OREANDA-NEWS. On June 28, 2007 JSC RailTransAuto, a subsidiary of Russian Railways and TransGroup AS Ltd., recently held a meeting of its Board of Directors to discuss integrated logistics and vehicle delivery by rail. The meeting authorized a detailed investment program for 2007 to 2019, including the Company’s development plan until 2015, reported the press-centre of Russian Railways.

The total amount investment up to 2015 totals Rbs 8,23 billion (USD 310,5 million).

RailTransAuto enjoys competitive advantages from implementing state-of-the-art equipment and new technologies, including IT. Such developments will allow the Company to provide logistics services and door-to-door vehicles delivery using the appropriate rail facilities. This will be the first time such an approach has been used in Russia.

The strategic aim of the investment is to develop specialized rolling stock, high technology terminal and logistics complexes, a unique information system and highly skilled personnel.

By 2015, RailTransAuto’s fleet will include more than 5,000 specialized double-deck car-carrying wagons. The leading European manufacturer Fahrzeugtechnik Dessau AG in Germany will develop the unique new covered railcar intended for vehicle transportation. The loading length of the new railcar will be 46 meters.

RailTransAuto is actively involved in the construction and further development of networks of specialized terminals in the Moscow Region (Mikhnevo terminal), Kaliningrad Region (Chernyakhovsk), Russia’s Far East (sea port in Troitsa Bay), Yekaterinburg and Novosibirsk. These terminals will have state-of-the-art equipment and technological facilities and will be incorporated into the unified integrated IT system. All terminals will boast a well-developed railway infrastructure, including customs control zones.

Similar large-scale investments will be made to develop the IT management system for the Company’s logistics business. The basic element of the Company’s computerized integrated management system is represented by Oracle Transportation Management (ОТМ) system and a line of the special-purpose program sub-systems to provide completely automated interaction with similar systems operated by Russian Railways. Partners and clients of RailTransAuto are participating in the relevant business processes in on-line mode. This information system also includes adequate terminal facilities management systems, empty rolling stock management optimization systems and a GIS system.

Implementation of the approved program will allow central government to switch part of the transit traffic now being delivered via foreign ports to Russian railways and thus develop a national competitive company capable of successfully operating on the domestic and international markets for vehicle transportation. In line with these developments, Russian Railways will substantially improve the quality and technology of its vehicles transportation business and expand its technical facilities.

The Board of Directors has approved documents regulating the activity of the Company’s managerial bodies and internal operational rules.

JSC RailTransAuto is a specialized subsidiary of JSC Russian Railways and TransGroup AS Ltd. It has two shareholders, JSC Russian Railways, which holds 51% of the stock, and TransGroup AS Ltd., which holds the remaining 49%.

JSC RailTransAuto handles the complex logistics and rail transportation of vehicles and enjoys significant competitive advantages due to its own rolling stock, which answers carmakers’ requirements, its own specialized automobile terminals at Russia’s major transport hubs, including port facilities which provide a full range of services, customs support services, its reduced cargo delivery times by using faster block-trains and its guarantee of cargo safety by operating brand-new rolling stock.

The Company is now building a large-scale hub terminal network all over Russia. Terminals in Mikhnevo (Moscow region), Chernyakhovsk (Kaliningrad region) and in the sea port in Troitsa bay in Russia’s Far East have been in operation since June 2007.