OREANDA-NEWS. July 30, 2010. The Executive Management of Russian Railways approved a set of documents on the creation of a freight services subsidiary – the Second Freight Company, reported the press-centre of RZD.

The formation of a competitive sector in rail freight services through the creation of operators using their own rolling stock is included in the Programme for Structural Reform of Rail Transport and the target model of the rail freight services market.

The Second Freight Company is being created as a universal network-wide operator with its own rolling stock. The company will provide both single-wagon and full-train freight services throughout Russia. Freight forwarding and other services are also possible. The Second Freight Company’s total market share in rail freight turnover is expected to reach around 22% by 2015.

The Second Freight Company’s authorized capital will be 46.4 billion rubles (around USD1.5 billion).

The creation of the Second Freight Company will alter the consumer structure of rail freight services. The largest clients will continue to be industrial and raw materials companies – coal, metals and oil holdings, construction companies, and mineral fertilizer producers. Cooperation between the Second Freight Company and Russian Railways will take into account the market specifics of the companies’ operations, and will prioritize a high level of responsibility in servicing clients.

As Russian Railways President Vladimir Yakunin said at the Executive Management meeting, "The founding of the Second Freight Company will enable us to ensure equal tariff conditions on the market of freight wagon operations, improve the quality of services provided by developing competition in the sector, and ensure growth in the investment appeal not only of the Russian Railways holding, but of the rail sector as a whole."

After revisions, the set of documents will be considered by the Russian Railways board of directors.