OREANDA-NEWS. May 14, 2010. In 2010, TransContainer plans to spend at least RUR 2.3 billion to purchase rolling stock, said Petr Baskakov, the company CEO.

"The company’s Investment Program 2010 will be finalised soon, on the basis of the 1st quarter results. We can already say definitely that TransContainer will continue to purchase rolling stock. Currently, we have 24,700 wagons. This year, we are planning to purchase at least 1,300 rolling stock items," he said.

The Head of the company said that he was talking mainly about long wheelbase (80-foot) flat railcars, “which must compensate the deteriorated rolling stock and optimize its structure."

Mr Baskakov explained that the amount will depend on prices and the container transport market recovery, and that tenders will be organized in order to enable purchases by the proper price/quality criteria.

He also emphasised that in 2010 the company plans to finance the upgrading and development of fixed assets entirely at its own expense, and that at the period from 2010 to 2012, the company can spend up to RUR 8.3 billion to buy wagons, depending on the market. Also, the operator is planning to spend about RUR 6,000 to develop its terminal network.

Thus, the total investment plan for the period from 2010 to 2012 is expected to be RUR 18.9 billion. "The amount may be adjusted, depending on the actual cargo flows and the general economic situation," explained Mr Baskakov and reminded that in 2009 the TransContainer capital investment amounted to about RUR 3 billion, and that the funds were allocated mainly to upgrade rolling stock and key terminals.

In February, Petr Baskakov told journalists that TransContainer may slightly increase the investment program in 2010, compared with 2009. The company spent RUR 2.1 billion last year to buy 1,000 flat wagons, he noted. Also, a source in TransContainer reported that in 2010 the company expected growth in traffic by 7% -10%.

TransContainer operates heavy containers and flat wagons for their transportation. RZD owns 85% stake in the company; 9.25% shares belongs to the European Bank for Reconstruction and Development; the investment fund Moore Capital Management LLC and GLG Emerging Markets Fund own 2.5% each; and Troika Dialog Investments Ltd has 0.75%.

It was reported that in April, RZD Board of Directors approved the IPO of 35% in Transcontainer by the end of 2010, “depending on the market conditions".