Eurosibtrans

completed

Through provision of railway rolling stock, Eurosib-Ivest CJSC and its subsidiaries Eurosib SPb - Transportation Systems CJSC and ERVK CJSC (collectively, Eurosibtrans or the group), based in Saint Petersburg, offers transportation and logistics services to shippers of coal, steel, fertilizers, paper, lumber and other products within Russia and the former Soviet Union. With extensive rail transport operations throughout Western Russia, some of the company’s more significant activities include: transport of lumber and chip products from the Murmansk and Petrozavodsk areas to Finland; coal from the Kuzbass area to steel mills in the west; ore moving from the west to foundries and mills in the middle of the country; and fertilizers to Finland and ports at Murmansk and St. Petersburg. The IFC loan would finance investment in railway freight wagons – specifically 600 railway flat wagons equipped for transporting timber logs, and 400 open top hopper wagons designed to carry wood chips. The loan will also refinance the company’s short-term debt used for the acquisition of other railcars. As a railway operator and freight forwarder, Eurosibtrans necessarily interfaces with other participants under the current structure of the Russian railway industry sector. The rail infrastructure on which the company’s rolling stock depends is provided, managed and maintained by the government-owned national railway (RZhD), which also owns owns and controls large fleets of rolling stock. Another governmental entity – the Transport Ministry – is the railway industry safety regulator. Eurosibtrans, as well as other railway operators, provide transport services to consignees (i.e., producers and/or shippers) of cargoes. Under the current Russian rules governing transportation of cargoes, all of these participants – RZhD, the Transport Ministry, the cargo consignees (or shippers), the railway operators, and others – have various and distinct roles and responsibilities associated with the movement of cargoes. Operators such as Eurosibtrans provide wagon and wagon management services and deal directly with shippers. RZhD and others who provide locomotive services have liability associated with damage to cargo it is transporting for railway operators.