OREANDA-NEWS. September 09, 2010. The Russian Railways board of directors took the important decision to create the Second Freight Company, a subsidiary joint stock company engaged in freight transport, reported the press-centre of Russian Railways.

"The Second Freight Company should become a universal operator of its own rolling stock, engaged in all types of deliveries throughout the Russian rail network. Around 180,000 carriages will be transferred to the company from the Russian Railways fleet in a stage-by-stage process", Russian Railways President Vladimir Yakunin said.

The Russian Railways president said that in line with the preliminary investment plan, the company will purchase over 76,000 new carriages and modernize more than 61,000 carriages by the year 2015, at a cost of more than 140 billion rubles (around 3.5 billion dollars).

"This will bring down the average age of the Second Freight Company’s carriage fleet from 22 to 15 years by the end of 2015", Vladimir Yakunin said.

Work is currently underway to finalize the necessary legal procedures for establishing the company and launching its economic activities.
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The formation of a competitive sector in rail freight services through the creation of operators using their own rolling stock is part of the Programme for Structural Reform of Rail Transport and the target model of the rail freight services market.

The company’s founder is Russian Railways (owning 100% minus one share), and the non-profit organization Zheldorreform holds one share in the authorized capital. The total number of carriages operated by the Second Freight Company will be 180,142 (including 23,728 carriages leased by Russian Railways on the basis of a subleasing agreement).

The creation of the Second Freight Company will not alter the consumer structure of rail freight services. The largest clients will continue to be industrial and raw materials companies – coal, metals, and oil holdings, construction companies, and mineral fertilizer producers. Cooperation between the Second Freight Company and Russian Railways will take into account the market specifics of the companies’ operations, and will prioritize a high level of responsibility in servicing clients. The Second Freight Company’s total market share in rail freight turnover is expected to reach around 22% by 2015. Any decision on selling shares in the Second Freight Company will be taken on the basis of a decision by federal authorities on the means and forms of a private investor’s participation in the company’s capital.