Russian Railways forms freight services unit

Russian Railways forms freight services unit
   The Russian Railways said Monday it has formed a freight services subsidiary.
   The Second Freight Co. will serve as a universal network-wide operator with its own rolling stock. The company will provide single-wagon and full-train freight services throughout Russia. Freight forwarding and other services are also possible. The Second Freight Co.'s total market share in rail freight turnover is expected to reach around 22 percent by 2015.
   The Russian Railways said the Second Freight Co.'s authorized capital will be 46.4 billion rubles (about $1.5 billion).
   The railroad's 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 Co. and Russian Railways will take into account the market specifics of the companies' operations, the railroad said.
   'The founding of the Second Freight Co. will enable us to ensure equal tariff conditions on the market of freight wagon operations, improve the quality of services provided by developing competition in the sector, and ensure growth in the investment appeal not only of the Russian Railways holding, but of the rail sector as a whole,' said Russian Railways President Vladimir Yakunin in a statement.