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RZD, Deutsche Bahn AG establish logistics joint venture

MOSCOW, June 21 (RIA Novosti) - Russian Railways and Deutsche Bahn AG signed Thursday an agreement to establish and manage a joint venture in transportation and logistics, the Russian rail monopoly said.

RZD said in a press release that the establishment of a joint logistics company will become one of the elements of a strategy to build an integrated logistic system aimed at attracting additional freight along the routes linking Western Europe, Russia, and China.

Two offices will be set up in Moscow and Berlin, which will manage the joint venture's operation in Russia and Germany. The JV's charter capital will be about $1.3 million.

RZD's subsidiary TransContainer as well as Germany's joint ventures Kombiverkehr and Polzug are also among the JV's founders.

Russian Railways said Monday it had set up a joint venture with Germany, Poland, and Belarus to streamline rail services and increase cargo traffic with Western Europe.

The company said in a statement: "The main goal in setting up the joint venture is to streamline the transportation process, improve the quality of services, and increase the volume of freight shipments along International Transport Corridor No. 2 linking Berlin, Warsaw, Minsk, Moscow, and Nizhny Novgorod."

Russian Railways' share in the joint venture, Eurasia Rail Logistics, is 40.1%, Germany's Deutsche Bahn holds 34.9%, and Poland holds 15%.

The company is expected to help coordinate differences in the four countries' customs, border, and technical regulations leading to a reduction in travel times and an increase in the volume of freight.

The countries within the transport corridor are considering extending the route to Yekaterinburg, in the Urals, and linking it to the Siberian rail network, eventually creating an alternative trade link between Europe and the Far East.

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