The national railway companies of Russia, Kazakhstan and Belarus have signed an agreement on a joint venture called United Transport and Logistics Company (UTLC) for the transport of containerised cargo within the Common Economic Space, including transit between Europe and Asia.

UTLC is currently one of the few real business projects to facilitate integration within the Common Economic Space and consolidate rail sector infrastructure. The creation of UTLC will form the platform for the implementation of other large-scale economic projects within the Common Economic Space. Investments in UTLC will ensure transport needs are met within countries in the Customs Union and neighbouring countries at current levels.

The document was signed during the International Economic Forum in St. Petersburg, in the presence of the heads of Russia, Kazakhstan and Belarus. The agreement was signed by President of RZD Vladimir Yakunin, President of NC Kazakhstan Temir Zholy (KTZ) Askar Mamin, and CEO of Belarusian Railways (BZD) Vladimir Morozov.

To ensure the growth of domestic and international transportation, including transit, the joint transport and logistics company will invest in rolling stock, containers, terminals and IT-infrastructure. The amount of these investments will reach $6.2 billion by 2020. The company’s equity and loans and will be used for capital expenditures. The shareholders will not use their own resources.

(Source: RZD)