The EBRD is considering extending a secured loan to JSC Olzha, a private operator of freight wagons in Kazakhstan. Proceeds of the loan will be used for acquisition of new freight railcars and one shunting locomotive.
Rail transportation sector remains dominated by the state-owned railway company. The key objective of the transaction is to support a private ownership and operations in line with the larger railway reform plan. By supporting Olzha in the acquisition of additional railcars, the Project will contribute towards increasing the share of wagons owned and operated by private companies in Kazakhstan.
New wagons will be leased to medium-sized companies and used for transportation of different types of commodities such as LPG, gasoline, coal etc. These companies generally require not more than 100-150 wagons and maintaining their own fleet is often not commercially justified. By supporting the acquisition of additional wagons the Project would indirectly support small and medium-sized companies whose business involve transportation of commodities and thereby improve trade interactions with their customers.
Part of the loan will be used to purchase a locomotive which is required for haulage of Olzha’s growing fleet of wagons and to strengthen competitive position of the company as a provider of rail freight forwarding services.
The company’s activities include: lease of railcars, transportation and sales of liquefied petroleum gas (LPG) and oil products (mainly diesel and gasoline). The company operates about 1,500 wagons, mostly LPG and oil tanks.
Mr Arman Beissekov,
Deputy CEO on Economy and Finance