News

06.04.2018

UTLC JSC reorganization will allow managing the project on principles of parity

The extraordinary meeting of shareholders of United Transport and Logistics Company JSC took place on December 12, 2017, where the resolution on the company reorganization was adopted unilaterally.In consequence of United

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Transport and Logistics Company JSC reorganization that took place on April 2, 2018, UTLC Eurasian Railway Alliance JSC was founded (UTLC ERA JSC). The company will conduct the main activity of UTLC regarding operating and development of cargo transit within the territory of countries – participants of the project.

The company will continue its work on the basis of a business model “assets light” on principles of holding companies parity: Russian Railways OJSC, Belarus Railway SE, and NC Kazakhstan Temir Zholy JSC (each holds 33.33% of shares). The share capital of UTLC ERA JSC is fully formed; all shareholders are vested with their shares.

This measure will allow increasing all shareholders involvement in project development and create conditions for its more dynamic development.

"The goal on parity achievement in the share capital of UTLC ERA JSC is gained. Currently, UTLC is the project of equal members with united goals and tasks. This approach to business organization is particularly important for integration projects implementation, where the final result depends on the partnership level and cooperation efficiency", Alexey Grom, the president, comments the reorganization results.