UTLC becomes UTLC Eurasian Railway Alliance
The United Transport and Logistics Company JSC (UTLC) has re-organised and operates under the new name of UTLC Eurasian Railway Alliance JSC was founded (UTLC ERA JSC) per 2 April.
UTLC is a joint company comprising of national railway companies SC Russian Railways, the National Union Belarusian Railway and Kazakhstan Temir Zholy. It was formed with the aim to increase the attractiveness of the Eurasian transit corridor for carriers in China, South Asia and Europe. As an operator, the company is responsible for regular container trains between China and Europe.
Financial parity restored
The aim of the organization was to achieve financial parity of the three companies, which all hold a 33,3 per cent share. However, due to heavy investments in the transcontainer business by Russian Railways, financial parity was disturbed and this company absorbed almost all the shares, UTLC explained.
The company will continue its work on the basis of an ‘assets light’ business model. This was uniterally decided last year, and all partners are happy with this solution, UTLC explained. The company will continue wit hits core business: operating and developing cargo transit within the territory of countries on the railway network between Europe and Asia.