April 10, 2013

Kazak and Russian cargo operators to establish company for grain transport

Cargo transport operators, KazTemirTrans and RusTransCom (RusAgroTrans), will set up a joint organisation for grain transportation.

"We have finally agreed to establish the joint venture with KazTemirTrans Kazakhstan state company. The main idea is that the agrarian seasons do not coincide in Kazakhstan and in Russia. This enables us to jointly use the fleet that can be relocated to the necessary areas," said the Director General of RusAgroTrans, Konstantin Zassov.

He noted that Kazakhstan dispatchers were interested in export via Russian ports.

According to Zassov, the company will be established gradually. "First, the parties will transfer several thousand grain hoppers to the joint venture on rental conditions. Then the assets will be included into the company's charter capital," he said.

Initially, the company will involve 6,000 wagons and their number will be increased to 8,000.

This development is important for Kazakhstan as it is a landlocked country that depends on neighbouring states - especially Russia - in transporting its bumper grain harvests to ports. Lack of grain wagons and tariff agreements with Russia have long hampered Kazakhstan's grain transportation, particularly in the heat of the seasons.