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Feb 05, 2016

Heads of Russian and Belarusian Railways discuss options for further development of Integrated Transportation and Logistics Company (ITLC)

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Heads of Russian and Belarusian Railways discuss options for further development of Integrated Transportation and Logistics Company (ITLC) (s)The President of Russian Railways Oleg Belozerov and the head of Belarusian Railways Vladimir Morozov have met to discuss the further development of the Integrated Transport and Logistics Company (ITLC).

The meeting was held in Moscow on 4 February 2016.

"Our foreign partners consider ITLC a serious player in the logistics market, a view which is evidenced by the interest of our European colleagues in the development of such a harmonised transportation mechanism," said the President of the Russian Railways

Belozerov informed his Belarusian colleagues that on the initiative of Kazakh Railways, which is also a shareholder in ITLC, in January 2016 the company's further development was discussed, including the mechanism for bringing in assets.

Oleg Belozerov also said that the Russian and Belarusian sides had completed all the arrangements for the first phase of the company's creation. The second phase includes completing the formation of the company's assets and the transition to the target model of corporate governance parity.

The sides gave a high assessment of ITLC's first practical results, both in terms of its financial and volume indicators, and expressed confidence that it would take on even more ambitious targets in 2016 and the following years.

During the meeting, the sides also noted that modern logistics companies "without assets" have a significant advantage in making operational decisions compared to companies "with assets."

In addition, by attracting transportation resources, such companies are more competitive on the market compared to traditional players. This is confirmed by the experience of the logistics company GEFCO, which is a subsidiary of Russian Railways.

The parties agreed that after adopting an agreed position, they will inform the governments of the countries, which will then take the final decisions on the ITLC's development.

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