OREANDA-NEWS. On January 10, 2007 the European Bank for Reconstruction and Development has agreed to acquire a minority equity stake in TransContainer, Russia’s biggest operator of rail containers responsible for handling over half of the country’s container traffic, reported the press-centre of EBRD.

The ?134 million investment represents pre-privatisation support and marks the beginning of a long-term strategic partnership between the Bank and TransContainer’s parent, the Russian Railway company RZD. The stake will give the EBRD two seats on TransContainer’s board of directors.

By taking an equity stake in this company, the Bank is making a long-term commitment to Russian railway reform, said the EBRD’s Business Group Director for Infrastructure, Thomas Maier. Our aim is to work together in TransContainer’s shareholder structure in such a way as to enhance its profile in the international capital markets and thus facilitate the raising of the funds needed to finance the sector’s huge investment needs, Mr. Maier added.

TransContainer, a joint stock company until now fully-owned by RZD, was spun off as an independent entity in 2006 as part of a structural reform aimed at developing a competitive market to replace the monopoly RZD previously held over all rail infrastructure and operations. The progress achieved in railway reform in Russia was highlighted in the EBRD’s Transition Report published last month.

The EBRD’s entry, along with that of a group of international financial investors, will increase market awareness of TransContainer’s financial performance and operations. This is also expected to have the broader impact on the sector by supporting privatisation and paving the way for further commercialisation.

The Bank is also committed to working closely with the Company on ways of fine-tuning its structure, corporate governance, disclosure and decision-making to meet best international practices and improve the ability of Transcontainer to respond to market opportunities.