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Russia, Belarus and Kazakhstan agree to update UTLC development model

Russian Railways, Kazakhstan Railways and Belarusian Railways agreed on the key principles of United Transport & Logistics Company (UTLC) operational model.

“The UTLC 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, UTLC’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 UTLC project. In view of the current situation, we believe that this area should be a priority for us,” said Oleg Belozerov, President of Russian Railways.

The basic route of UTLC’s container service is Dostyk/Altynkol – Brest and 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.

“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 Askar Mamin, President of Kazakhstan Railways.

Vladimir Morozov, the head of Belarusian Railways, stressed in turn that: “To date, container transportation is the only segment which is experiencing growth. UTLC 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 UTLC’s business plan for the period until 2025 and the shareholders’ agreement in respect of JSC UTLC.

On 29 March 2016, a general shareholders meeting of JSC UTLC 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 UTLC. In addition, the Board of Directors and the Management Board were also newly elected.

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