OREANDA-NEWS. July 6, 2007. JSC RailTransAuto (specialized subsidiary of JSC "Russian Railways" and "TransGroup AS" Ltd) recently had the meeting of its Board of Directors devoted to discussion of integrated logistics and delivery of vehicles by rail. During the meeting the leading directors have authorized the detailed investment program for the period of 2007 to 2019 including the explicit Company’s development plan until 2015.

Total amount of accepted investments to be realized within the period until 2015 accounts for Rbs 8.23 mlrd (i.e. USD 310.5 mln).
The primary competitive advantage in RailTransAuto activity shall be provided by implementation of state-of-the-art equipment and new technologies, IT technologies inclusive. Such developments would allow company to render the package logistics services to provide door-to-door vehicles delivery with the use of the relevant railway facilities. As expected it shall be the first experience of implementation of the appropriate technological approach in Russian practice.
Strategic purpose of the investments in question may be outlined as the development of the specialized rolling stock, high technology terminal and logistics complexes, the unique information system and highly skilled personnel.

By 2015 fleet operated by RailTransAuto will include more than five thousand of the specialized double-deck car-carrying wagons. Especially for the project in question the leading European manufacturer Fahrzeugtechnik Dessau AG (Germany) shall develop the unique new covered railcar intended for vehicles transportation. The loading length of the new railcar is planned to be 46 meters.

Besides that RailTransAuto is actively involved in construction and further development of network of specialized terminal complexes in Moscow Region (Mikhnevo terminal), Kaliningradskaya Region (Chernyakhovsk), in Far East Region (Sea port in Troitsa Bay), Ekaterinburg and Novosibirsk. The above mentioned terminals shall be furnished with state-of-the-art equipment and technological facilities, and will be included into the unified integrated IT system. All terminals shall provide the well-developed railway infrastructure including the appropriate customs control zones.
The similar large-scale investments shall be forwarded also to develop the company’s logistics business IT management system. The basic element of the company’s computerized complex management system is represented by Oracle Transportation Management (ОТМ) system and a line of the special-purpose program sub-systems in charge of providing the completely automated interaction with similar systems operated by JSC Russian Railways. Partners and clients of RailTransAuto are participating in the relevant business processes in on-line mode. The said information system includes also the adequate terminal facilities management systems, empty rolling stock management optimization systems, the appropriate GIS system etc.

Implementation of the approved program would allow central government to switch part of transit traffic volumes being delivered via foreign Sea Ports to Russian railways, and accordingly develop the national competitive company capable to successfully operate both within the frameworks of domestic and international vehicles transportation markets. In line with these development Russian Railways would substantially improve the quality and technology of its vehicles transportation business including the expansion of its technical facility base.

Board of Directors has adopted also a line of documents regulating activity of the company’s managerial bodies and internal operation rules of RailTransAuto.

About the Company. JSC RailTransAuto is the specialized subsidiary to JSC Russian Railways and TransGroup AS Ltd. in charge of the complex logistics issues and arrangement of vehicles transportation by rail ( Two shareholders: JSC Russian Railways - 51 percent, and TransGroup AS Ltd. – 49 percent).

Competitive advantages of the company in question is represented by its rolling stock that answers the applicable carmakers’ requirements, availability of the own specialized automobile terminals deployed in major transport hubs of the Russian Federation (the relevant port facilities inclusive) that are capable to provide full spectrum of services and the relevant customs support services; reducing the cargo delivery time by means of using the speed-up block-trains, and the guarantee of the cargo safety due to putting into operation of brand-new rolling stock.
The company is engaged in setting a large-scale hub terminals network all over the territory of the Russian Federation. Terminals in Mikhnevo (Moscow region), Chernyakhovsk (Kaliningrad region) and in the Sea port in Troitsa bay (Far East) are in operation since June 2007.