Information published on 12 April 2016 in the UIC electronic newsletter "UIC eNews" Nr 493.

Kazakhstan: Heads of national railway networks in Russia, Belarus and Kazakhstan agree on updating JTLC development model

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A trilateral meeting was held on 29 March in Moscow between the President of JSC Russian Railways Oleg Belozerov, President of JSC NC Kazakhstan Temir Zholy (KTZ) Askar Mamin and Head of Belarusian Railways Vladimir Morozov to discuss joint work within the framework of JSC Joint Transportation and Logistics Company (JTLC).
The parties reviewed JTLC’s 2015 results, its interim operational results since the beginning of 2016 and its future prospects.

The heads of the three companies agreed on the key principles of JTLC’s operational model, including implementing work within the boundaries of the railways in Russia, Kazakhstan and Belarus and its possible extension.

The basic route of JTLC’s container service is Dostyk/Altynkol – Brest and in the opposite direction. Additional routes are being approved by the parties as the project progresses.

The parties agreed on the need for a unified approach to the formation of tariff policy for subsidiaries and affiliated companies, as well as for third-party members of the Eurasian transport market.

JTLC’s updated operating model also allows for the possibility of attracting rolling stock operators and logistics companies based on market conditions in order to optimise the cost of services and improve their quality.

“The JTLC project is an integration platform for us. It is this model that gives us the possibility to implement the initial plans for equal participation in the company. In 2015, JTLC’s volume amounted to about 80,000 Twenty Foot Equivalents Units (TEUs), 83% more than in 2014. This year we have even more ambitious plans. We want to increase transportation compared to 2015 in the framework of the JTLC project. In view of the current situation, we believe that this area should be a priority for us,” said the President of Russian Railways.

Oleg Belozerov informed the meeting that the Russian government had made an announcement about JTLC, giving Russian Railways instructions to continue work on implementing the JTLC project and update its development strategy.

“The new model will promote the growth of container traffic. It is very important for us to earn extra revenue in this difficult macroeconomic environment. This project will help to increase container shipments and has good prospects,” said the President of JSC NC Kazakhstan Temir Zholy (KTZ) Askar Mamin.

Vladimir Morozov, the head of Belarusian Railways, stressed in turn that “To date, container transportation is the only segment which is experiencing growth. JTLC is extremely important to us. It will allow our railway administrations to increase the volume of transit traffic and attract an additional freight base.”

The heads of the railway companies in the three countries agreed to cooperate on developing JTLC’s business plan for the period until 2025 and the shareholders’ agreement in respect of JSC JTLC.

On 29 March 2016, a general shareholders meeting of JSC JTLC was also held at which Alexey Grom was unanimously elected as its new president. Grom previously held the post of first vice-president at JSC JTLC. In addition, the Board of Directors and the Management Board were also newly elected.

(Source: KTZ)